David Chan

There’s lots to like about the now published #NationalPaymentsVision for the UK… I can recognise a number of priorities and challenges The Payments Association (and others) have been talking about for some time. That in itself, is hugely encouraging. The Government is listening. A UK Government making a commitment to collaboration, and that sees the importance and opportunity of the Payments industry, is incredibly positive and something I applaud. On initial reading, some key points within the detail: The vision - “A trusted, world-leading payments ecosystem delivered on next generation technology, where consumers and businesses have a choice of payment methods to meet their needs.” ·      “Payments Vision Delivery Committee” – Senior representatives from the FCA, PSR, Bank of England, and chaired by HM Treasury. ·      Innovation, Competition and Security (3 key pillars driving all activity) ·      BoE and PSR will lead on requirements for upgrades/replacements for FPS and UK retail payments infrastructure. Approach agreed no later than end Q2 2025 ·      Reforming of PAY.UK ·      Coordination between regulators needs to improve - the government is concerned that the collective impact is hampering the sector’s capacity for innovation and growth. ·      Commitments to ‘explore’ CBDCs and a Digital Pound ·      Government support for adoption of digital identities in financial services ·      Priority initiatives in Open Banking and Fraud (Financial Crime) o  PSR commits to 12 month review of APP R after 12 months (plus recognition of role of tech and telcos) o  Regulators to examine data sharing initiatives across the financial services sector. o  Adequate consumer protection must be delivered for Open Banking payments, and the government intends to address this through introduction of a dispute resolution process o  The FCA is to be the UK’s regulator on Open Banking ·      A push to boost cross-border activity and international interoperability, but not at the expense of consumer protection or financial stability. Now is the time for #action and #delivery.  The Payments Association will play it’s role, and looking forward to working with government, regulators and the wider industry to support this vision. https://lnkd.in/e6RsUU7r

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A welcome easter egg 🥚 in today's Bank of England piece on innovation in money and payments, is confirmation that the new Government 👉 will 👈 take forward the National Payments Vision 🛣 That's another tick in the box ✅ for open banking payments, after the Government also brought back the Smart Data Bill, key for underpinning open banking standards. Now if only we could see some progress on VRP from the Payment Systems Regulator and acknowledgment of the risk APP fraud rules pose to growth in the payment sector... Read our piece on the National Payments Vision: https://lnkd.in/eTTiGwNR The Bank of England's Approach to innovation in money and payments: https://lnkd.in/eiFKmxTE #progress #growth #payments #openbanking

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Very interesting article in the Financial Times which sums the situation up perfectly. The new entrants have moved the market on with the services delivered, however despite being used for their "free" or innovative services, users still remain wedded to the incumbents. https://lnkd.in/eR3kaGXV

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Proud to see the momentum building as we work to tackle one of the most pressing challenges facing our economy today – economic crime. Our collective efforts, uniting experts from across finance, technology, and regulation, are paving the way for a safer and more resilient financial landscape in the UK. Digital verification isn't just another technological advancement; it's a transformative approach to enhancing security for both businesses and consumers. This initiative aligns with the strategic goals outlined in the Smart Data and Digital Information Bill, reinforcing our commitment to robust data protection and innovative solutions. Our focus on corporate digital IDs, rather than traditional consumer digital IDs, marks a strategic shift in how we address fraud prevention. By developing and implementing enhanced digital identities for businesses, we aim to create a more secure framework that protects against fraudsters, strengthens economic integrity, and drives growth. Looking forward to continued collaboration with our incredible partners as we move from research to actionable solutions. Learn more and join the conversation 👇

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Recent findings indicate significant concern among #UK adults about #bank scam warnings potentially shifting responsibility to customers. With the introduction of the @PaymentSystemsRegulator's #mandatoryreimbursement scheme, it's crucial for banks to reassess #customerengagement strategies. While #digitalinnovation is underway, such as the #Scam Signal tool, there's still a need for improved awareness and communication to effectively combat #APPfraud. As the industry evolves, how can #financialinstitutions better educate and protect consumers against these threats? Let's continue the conversation and collaborate towards a more secure #banking environment.

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So the #NationalPaymentsVision is now out, following the Garner review of last year, and no doubt timed (delayed?) to follow last night’s Mansion House speech. My key takeaways 1/ Govt clarifying remit of #regulators to help reduce regulatory ‘congestion’ - reduce overlap, reduce burden on small firms, focus on growth. Letter on its way to Financial Conduct Authority and Payment Systems Regulator. 2/ Pay.UK to be reformed as unable to drive growth and innovation in its current form (as today change only happens if members fund it or regulators mandate it) 3/ Back to the drawing board for the future of #FasterPayments - a more “flexible”, “agile” and “pragmatic” approach is needed than the “comprehensive overhaul” proposed after seven(!) years of work on a #NewPaymentsArchitecture 4/ A “newly established Payments Vision Delivery Committee will task the Bank of England and the PSR to examine and refresh the requirements for the UK’s retail [payment] infrastructure” which must engage stakeholders and set out an approach no later than Q2 2025. It will be chaired by HM Treasury. It will be supported by a Vision Engagement Group. 5/ More push behind #OpenBanking (FCA to be sole regulator) — long term regulatory framework via upcoming Data (Use and Access) Bill — unlocking e-commerce payments “a strategic short to medium term priority”, with FCA to determine commercial model — JROC has been slow, “government supports a swift conclusion” of Open Banking #Roadmap and then JROC to be wound down. — Government to “consider whether policy changes are needed to align incentives between data users and holders and support a sustainable funding model for #API development” — Consumer #protection to be addressed in “future framework”, in the meantime supportive of dispute resolution process 6/ On #DigitalID - can kicked down the street. A statutory footing will be established under new Data bill for digital verification services without creating a mandatory Digital ID system. 7/ On #DigitalPound (retail #CBDC) - keep exploring - no decision has been taken on whether to go ahead and implement - and would require primary legislation. Together with the BoE, the government would ensure the design would “maintain financial stability, user’s privacy, and supports financial inclusion.” 8/ On #fraud - UK has put strong consumer protections in place (#APP reimbursement), PSR to review after 12 months. Focus on “upstream prevention”, “intelligence sharing” and a “cross sectoral approach” - ie not just a FS issue, tech and telcos will be dragged in further. https://lnkd.in/epEZHR9w

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Our Chief Economist @Sebastianburnside delves into the insights from our latest Regional PMI Report to discuss economic growth trends, cost pressures and business output across all nations and regions of the UK. https://lnkd.in/e2HMr8bu

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Open banking presents a transformative shift in the financial landscape, marked by evolving infrastructure and increased accessibility. Its strengths lie in fostering competition, innovation, and personalised financial services, empowering consumers with greater control over their financial data and facilitating seamless integration of third-party services. However, the journey towards open banking is not without its challenges. User experience remains a key weakness, with concerns over data privacy, security, and the complexity of navigating multiple platforms. While open banking holds immense potential to revolutionise the financial sector, addressing these concerns and enhancing user experience will be crucial for widespread adoption and long-term success. #OpenBanking #FinancialServices #FinancialInnovation

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Since launching NatWest Boxed, we’ve seen an increasing interest in the Consumer Duty regulation and what it means for consumer brands exploring embedded finance. The FCA's guidelines, released in July 2022, have set important milestones - ensuring that firms are not only compliant but also champions of consumer welfare. In my view, the consumer duty is a catalyst for the industry to innovate and offer greater outcomes for customers. At NatWest Boxed, working together, we help consumer brands translate the Consumer Duty into meaningful, measurable benefits for their customers. If you’re wondering how this affects your business or what steps you need to take, our new guide breaks down the essentials: https://lnkd.in/e9X65-5p #consumerduty #embeddedfinance

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👉🏼 11 years since a National Payments Roadmap was mooted by the (now abolished) Payments Council 👉🏼 10 years since the launch of our world-first Payment Systems Regulator 👉🏼 9 years since the Payment Strategy Forum was established to create a strategy for UK payments 👉🏼 8 years since the New payments architecture programme was initiated to renew the interbank payment systems 🗓️Tomorrow🗓️we should have details of the UK's National Payments Vision - to 'provide clarity on the government’s ambition for UK payments' Here's what we want the vision to include: https://lnkd.in/dq8yD9Jw #payments #strategy #npv

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This is brilliant! Clear, concise and reasuring. We need more communication of how to use Open Banking powered technology, as well as the benefits for consumers and small businesses. Wouldn't it have been great if the Bank of Morning Live could also have let you control those aggregated accounts or been used to top up an NS&I account? Hopefully in a few years presenters will be able to show all financial products aggregated with automatic comparison and switching capability.

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The UK's National Payments Vision, published last week, sets out an ambitious plan to revitalise the UK payments sector. The vision sets out a plan to drive growth and innovation through simplified, more proportionate regulation, alongside modernised infrastructure and enhanced collaboration between the government, regulators, and industry. It touches on key, inter-related initiatives, including the future of our payments systems, Open Banking, digital identity, and central bank digital currencies. A crucial step at the heart of the Vision is the creation of the Payments Vision Delivery Committee (PVDC), chaired by the Director General for Financial Services and Financial Stability at HM Treasury (HMT). While challenges remain, the Vision has the potential to re-establish Britain as a global payments leader. Success will depend on sustained focus and decisive execution as the industry progresses through 2025. Our latest perspective from Deloitte's European Centre for Regulatory Strategy can be found below. Suchitra Nair Valeria Gallo Ed Moorby Tom Macdonald Hayley Thompson Deep Patel Mustafa Kanchwala Steve Bailey Isabel Agius James Staight Matt Clarke Clare Jenkinson Ciaran Fitzpatrick Sowmya Ganti Aarti G.

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This survey reveals the age group that uses cash most – and the results may surprise you. Heavy use of notes and coins by young people flies in the face of conventional wisdom that they rely on mobile phone banking apps such as Revolut, Google Pay and Apple Pay. The An Post (Irish Post Office) research found that almost almost half of 18- to 24-year-olds keep up to €40 in emergency cash. The research comes following the recent Irish National Payments Strategy unveiled by Finance Minister Jack Chambers which set out that government bodies will have to continue to accept both cash and electronic payments for goods, services or fines. Charlie Weston Irish Independent #payments #cash #NationalPaymentsStrategy https://lnkd.in/ejSwdQ59

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Interesting update from UK Finance that shows over a third of UK consumer payments are now contactless. Here are the key figures for 2023 The total number of payments made in the UK increased by five per cent to 48.1 billion  Almost four out of ten (38 per cent) of all payments made in the UK during 2023 were contactless One third of UK adults were using mobile contactless payments at least once a month The number of cash payments fell to six billion, with cash representing 12 per cent of all payments made in the UK Faster Payments overtook Direct Debit to become the third most used payment type in the UK in 2023 

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Yawn. More push back from firms via The Payments Association in the #UK now that they’re finally on the hook for fraud. TLDR: FIs need to stop whining and do better for their customers. The story to date is approximately this 1. a super complaint is referred to the regulator to say customers aren’t being fairly treated when #AuthorisedPushPayment (APP) #fraud occurs, as liability largely sits with the customer 2. the Payment Systems Regulator (PSR) asks financial institutions (FIs) “how big is this problem?” 3. the FIs respond - “not that big”, under reporting the scale of fraud, pointing to some voluntary industry guidelines 3. the #PSR replies - “if it’s not that big, you should be liable” and sets up the contingent reimbursement mechanism (#CRM) 4. FIs don’t really up their game in terms of payout ratios so the regulator works with government to change the law to make the liability shift more concrete - splitting liability 50/50 between sending and receiving FIs. 5. The Financial Ombudsman Service (FOS) receives more complaints and upholds a higher proportion in favour of consumers, also raising the maximum reimbursement limits to cover a greater proportion of claims 6. FIs moan that they haven’t had enough time to prepare so request that the deadline gets pushed out. 7. FIs start complaining that it’s not fair, not their fault, too fast, and now - too much A. “Too many complaints are being upheld by FOS” (you’ve got away with doing too little, for too long: it’s time to make your fraud systems better, and while you fix, you pay) B. “FIs shouldn’t be liable, digital platforms for not doing their part to clamp down on fraud” (FIs have the duty of care, and now the financial incentive to fix it - maybe collaborate rather than throwing shade at Meta etc?) C. “Faster Payments Scheme Limited is too fast” (it’s been around for 16 years), and so now FIs are looking to slow some payments down (ok, but use the data available and build real time decision engines) D. The latest version - “we’re small so please bring down reimbursement limits to £30k from £415k” (either allow big ticket tx and comply, or don’t - and you should be performing enhanced due diligence for a large tx or a series of transactions) Bottom line: do better FIs and stop whining. Make better use of existing capabilities like #MITS, and #innovative #startups offering best of breed fraud reduction solutions like Ask Silver and Trident AI (yes, I’m an investor) https://lnkd.in/eu8eFA4i #payments #fintech #regulation Alex Somervell Zain Hussain

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Everyone looking to launch a new payment scheme may have a look at this analysis: "Our findings show that consumers generally face a substantial adoption cost, revealing a preference for established payment methods like cash or cards and a tendency to stick to familiar habits." * Spoiler * It doesn't really provide a clear answer how to solve this adoption challenge. * Surprise * even not for the digital Euro. Why? Because there is simply no need for another, new payment solution (on basis of a digital Euro) which offers the same functionalities and attributes as cards or comparable payment solutions. A solution in need for problem. #digitalEuro #d€

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Goodbye "New Payments Architecture", hello "UK agile and flexible (retail) payments infrastructure". Lots to be excited about here but is the UK missing an opportunity to unify where possible, retail payments with wholesale payments? In so many discussions on Institutional/Corporate/Wholesale banking I lament that the Open Banking APIs on a retail account are not present on a corporate account. The paper signposts that Wholesale banking will be similarly considered through Bank of England initiatives but seems too RTGS focused. Important but not enough. I welcome the adoption of ISO20022, in many ways a "no brainer" but the finance industry has been far too slow to adopt this standard. This paper is a step in the right direction, but to fully realise its potential, the UK must bridge the gaps between retail and wholesale payments, accelerate ISO 20022 adoption, and embrace a more unified approach to payment system modernisation. https://lnkd.in/eQDi8i6e

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Help us input to the Financial Conduct Authority consultation on simplifying consumer regulation - with our 5 minute survey below 👇

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THE NEW UK PAYMENTS VISION Here is a brief summary, especially thinking about APP scams and Open Banking: VISION GOAL: A trusted, world-leading payments ecosystem delivered on next generation technology, where consumers and businesses have a choice of payment methods. The National Payments Vision also outlines THREE KEY PILLARS designed to guide future activity – innovation, competition and security. The (payment) regulatory framework must be clear, predictable and proportionate. The Prime Minister has been clear that regulation should support growth and unlock investment The UK government is establishing the Payments Vision Delivery Committee. The government has outlined its priorities for UK payments through a joint remit letter to the FCA and PSR. The key priorities highlighted in the payments remit letter are: 1) Enhancing coordination 2) Supporting the development of Open Banking and 3) Ensuring high standards of consumer protection 4) Driving an agile and flexible approach to delivering the UK’s retail payments infrastructure needs. The Bank of England, PRA, FCA and PSR will revise their existing MoU on cooperation in relation to the regulation of payment systems by Q2 2025. The Vision clarifies regulatory responsibilities for Open Banking, transitioning away from current arrangements to the FCA acting as the UK’s regulator in the future. PSR has committed to an independent post implementation review of the authorised push payment fraud reimbursement rules, after 12 months. The government considers that the effective delivery of the UK’s retail payments infrastructure now and through time requires a strong and effective payment systems operator. Establishing a sustainable ‘commercial model’ for Open Banking is critical for its development. Adequate consumer protection must be delivered for Open Banking payments, and the government intends to address this through the future framework. Fraud Prevention 1. The government agrees that more focus must be placed on fraud prevention. 2. The Online Safety Act 2023 imposes obligations on large technology platforms to prevent fraudulent content on their services or face substantial fines if they fail to do so. 3. There is also ongoing work from Ofcom with operators to prevent the misuse of telephone numbers by criminals, stem the tide of scam messages and address mobile spoofing. 4. The government is determined that the technology and telecommunications sectors must take further steps to tackle fraud. 5. The government has written to the technology and telecommunications sectors to call for demonstrable action to reduce the scale of incidents and losses from fraud taking place on their platforms and networks. The government will request updates on progress and action taken at the next Joint Fraud Taskforce in March 2025. https://lnkd.in/gDpbbbzZ

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