Future of Payments, Cards, Cash and Banking - ways to reduce banking risk - keynote speaker

Future of Payments, Cards, Cash and Banking - ways to reduce banking risk - keynote speaker

Future of Payments, Cards, Cash and Banking - ways to reduce banking risk - keynote speaker

http://www.globalchange.com Conference keynote speaker on Risk management complex in banking and payments - need partnerships and collaboration. Keynote at client event for G2 Web Services. Boards of most banks are only partially aware of total risks they are exposed to. Just look at cyberattacks. Benchmarking risk really risky. Benchmarking is toxic to risk management – when risk managers benchmark their own bank against actions by competitors in the same industry, the end result can be an entire industry walking blindly over the same cliff. Manufacturing: almost all the largest memory chip manufacturers made same risk assessment, decided safe to locate most of factories in the same nation, in same flood-plain. When Thailand was hit by very heavy rain, around 70% of memory chip production was lost. Need for Agility and Speed in payments industry. Our world is changing faster than you can hold a board meeting, and risks evolve at the speed of light. Agile strategy, agile leadership, agile decision-making. Future of payments industry? Consumers are driven not just by technology, price and convenience, but also by emotion. Trust is fundamental to the payments industry: reputation, safety, security, reliability. We have seen that with the introduction of chip and pin in the US, and also in near-field technology to for “swipe” payments across Europe. Most payment systems are still far too slow. So an increasing risk in future is technology failure: websites crashing, back-end payment systems broken. Online banking still takes far too long – even though 28 million people are using it in the UK. The new Paym system is too slow – probably handle a billion payments a year by 2020. Over 100 different payment platforms in last 5 years but most not fit for purpose. Migration and urbanisation are driving payments innovation. Biggest driver of mobile payments globally is migration – people sending remittances home. A billion people will move from rural areas to cities in the next 30 years. Until recently, most mobile payments were in Africa, most of those were on the mPesa network in Kenya, trading more than a third of the nation’s GDP on mobiles. Old model, of people opening bank accounts, then starting to use credit cards and then mobile payments, has been turned upside down. 1.7 billion with no bank account will have mobile payments soon. Most of them will gain access to financial services for the first time through using a phone, usually a smartphone. So retail banking in regions like Europe and North America will be deeply affected by innovations that began in Africa and then spread to Asia. In the meantime, there is a payments revenue crisis coming in the EU. The amount of cash in circulation in the EU is still increasing every year by around 3%. e-commerce $1.5 trillion traded online each year. In the UK and some other nations it is already the case that most e-commerce sales are on mobiles.That is way location-based marketing is the next Big Thing: knowing where the customer is, where they have been, what they usually do when, who they pay for what. Rapid innovation in biometrics on mobiles – fingerprints now, iris recognition to come, together with face recognition. Face++ - a cloud-based face-recognition system that can be installed in your company or on your website in a couple of hours. Banks using retinal scanning have reduced waiting times at teller desks from 4 minutes to 1 minute for a wide range of tasks.Now when you add Mobile Payments to the Internet of Things to Big Data, and put all that in the Cloud, you land up with a mega target for every hacker in the world. Many banks are spending maybe 45% of their entire IT budgets sorting out legacy problems from banking mergers some years ago. In most banks there is not much left for customer-facing, radical IT innovation. A large bank may find it has less than $50-100 million a year to spend on call-centre upgrades, mobile interfaces for customers. Collaboration, partnerships, joint innovation, technology alliances. Compare this with the Cloud-based company SalesForce, which spends around $3 billion a year on innovation, mainly on next-generation call-centre technologies.

By Vocalcom

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