Jana Mackintosh

Financial Conduct Authority Confirms Anti-Greenwashing Guidance and Proposes Extending Sustainability Framework Sacha Sadan, Director of Environmental, Social and Governance, FCA, said: “Confirming the new anti-greenwashing guidance and our proposals to extend the Sustainability Disclosure Requirements and investment labels regime are important milestones that maintain the UK’s place at the forefront of sustainable investment. Our good and poor practice anti-greenwashing examples will help firms market their products in the right way. We continue to work closely with the ASA and CMA to address greenwashing. “Consumers care about investing in products that have a positive impact on the planet and people. That’s why we want to boost the integrity of the market and ensure people can make informed decisions about how to invest their money.” https://lnkd.in/efFqsgrR #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

2

The Bank of England has today published a Dear CEO letter giving feedback from their recent thematic review of non-systemic banks and building societies' recovery plans. Two broad themes are covered, including some practical pointers in the appendix: 👉 scenarios need to be severe enough to challenge the firm's viability 👉 firms need to improve their calculation of recovery capacity This will be a topic at the forthcoming CEOs conference in June. (Don't forget that the new solvent exit analysis requirements can be combined with your recovery plan. There is no need to create yet another 100-page reg document for solvent exit. SS2/24 clearly states this and this Dear CEO is also a reminder of the synergies between recovery and solvent exit) #financialregulation #recoveryplanning #riskmanagement https://lnkd.in/e4Xkqx_x

72

1 Comment

The Commerce Commission has released its draft determination on our application for authorisation this week. We’re seeking permission to work with open banking stakeholders to make partnering simpler and more efficient, including an accreditation scheme and common terms and conditions for banks and third parties to use. The Commission has proposed approval of our application with conditions. We’re reviewing the draft determination in detail before giving our feedback as part of the process. We’re confident this type of partnering framework will make it easier for banks and third parties to work together – ultimately accelerating the growth of open banking in Aotearoa New Zealand.  Read more on our website here: https://lnkd.in/gTW7m_Q3 #OpenBanking #APICentre #PaymentsNZ #FuturePayments 

43

4 Comments

All we need now is optimism. For 18 months we’ve been encouraging the government to show its leadership of the industry that underpins society: #Payments. Today, alongside a flurry of measures that affect financial services broadly, the Rt Hon Rachel Reeves has published the first #NationalPaymentsVision for the UK at Mansion House. My first reaction is that this is exactly what we need to support #growth in the UK. Directionally clear without being too prescriptive. Honest about our strengths and failings while respectful of the need for change. Creative without being too clever. Designed to reflect an industry that has stalled in places but is primed for growth. Directed towards a motivating purpose: ‘to achieve 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.’ You will read a detailed review of the contents of the NPV from The Payments Association and our friends in the coming days. But the time for reflection is over. Our community of passionate payments people is armed with entrepreneurial ambition, fueled by global investment and enabled by extraordinary talent. The lack of direction from HM Treasury is no longer an obstacle to the achievement of great things. We even have clarity about the reform of Pay.UK; about the role of HMT, the Bank of England and the PSR in aligning regulators; about the role that tech and telecoms companies play in tackling APP fraud; about the renewed enthusiasm for Open Banking and CBDCs; and about the fundamental importance of digital identity. We even have a commitment to collaboration: ‘Enhanced collaboration between government, regulators and industry is critical to delivering the government’s growth mission and renewed partnership with the private sector is required to deliver the government’s ambitions for UK payments’. But in a world where we are bombarded by cynicism, what we need more than ever is optimism. Optimism founded on belief, empathy, confidence and commitment. Optimism to take risks and manage them. Optimism to set aside our competitive interests to collaborate for the collective good. We need optimism to reward the government for its courage in showing leadership. And optimism to ensure the new Payments Vision Delivery Committee, chaired by HM Treasury and supported by the new Vision Engagement Group, fulfills its potential. Based on this NPV, I feel optimistic. Do you? Thank you to all those who have worked so hard behind the scenes: Joe Garner Roisin Edwards Gwyneth Nurse Anna Harvey John Owen Jana Mackintosh Riccardo Tordera-Ricchi John Howells Neil Harris Noyan Nihat David Parker David Hunter Nathalie Oestmann Andres Kitter Kamran Hedjri Sendi Young Laura McCracken Mitch (Munish) Trehan Angela Yore (Fin/Tech PR) Ben Agnew Silvia Mensdorff-Pouilly Daniel Holden Nick Kerigan Robert Courtneidge Liz Oakes Mark Brant Darren Deal See https://lnkd.in/eZ2a_Q6x

165

12 Comments

The Bank of England last week published its second assessment under the Resolvability Assessment Framework (RAF). The assessment tests banks’ Resolution processes: their preparedness to “fail” in a managed and structured way. In addition to commenting on the specific preparedness of the eight major UK banks, the assessment contains useful focus areas for all banks’ Resolution Packs, including... 🔹 senior manager access to data, documentation, and MI to support resolution decision making in a stressed environment 🔹 the timely availability of valuation data 🔹 general preparedness to plan and execute multiple bespoke restructuring plans during a resolution event (a focus for the next assessment) 🔹 keeping resolution plans “live” via assurance A consistent theme across the assessment, and one to keep in mind for wider compliance, is evidencing/demonstrating that plans will work in practice, up to and including simulation testing.  

11

The Bank of England published its long waited final report 👏 documenting findings from its "System-Wide Exploratory Scenario (SWES)", an exercise designed to stress-test the UK's financial system under hypothetical market conditions. ‼️ Very insightful paper about an innovative methodology of stress-testing that emphasises interconnectedness in the market ‼️ Several takeaways on Non-Bank Financial Institutions need for liquidity buffers, stress points in repo and corporate bond markets, interconnectedness and systemic risks which lead to the amplifications of the shocks. 🔄

15

Very excited to see the next steps on this important journey by the Bank of England and Financial Conduct Authority. Transforming Data Collection is the most important first step in #digitisingreporting #data #datacollection #DDR #regulators #womeninfinance #reporting

11

As the UK seeks to maintain its global leadership in the fintech sector, the new government's commitment to innovation and to the financial services industry as an engine of economic growth will be crucial. CFIT is closely aligned with these aims and looks forward to supporting the government in achieving its goals to foster a thriving fintech ecosystem.   Continual investment in cutting-edge technologies and adaptive regulatory frameworks is essential to promote innovation and ensure security. Our latest coalition, ‘Fighting Economic Crime Through Enhanced Verification’, is set to play a pivotal role in this context. By uniting experts from finance, technology, policy, and academia, we aim to drive forward policies and practices that support economic growth while safeguarding consumer interests.   Find out more about our second coalition here: https://lnkd.in/eAxqzu_C

51

2 Comments

The Digital Markets Bill (DMCC) has just been passed by the UK Parliament! 🤩 We're delighted to hear it! The DMCC will ultimately to create a more level playing field for UK app developers and offer greater choice to consumers. At xigxag, we hope to soon be free of the constraints placed on app developers by the app store monopolies. We look forward to a future where app developers like xigxag can create the best in app experiences for UK customers - without the interference of Apple and Google. The DMCC has the potential to unleash a UK-led wave of innovation within app stores, in-app payment solutions and security and app validation tools for mobile apps, as a result of the disruption of the app store monopolies. We also welcome more choice for app developers in in-app payment solutions, which should ultimately result in the best prices for consumers when making in-app purchases. A huge thank you to the amazing people from the Coalition for App Fairness, GERADIN PARTNERS, the Department for Science, Innovation and Technology and everyone involved in drafting, improving and getting this bill passed. It's a great step forward for the UK app ecosystem. Now, it’s essential that the DMU moves quickly to act - based on the work the Competition and Markets Authority has been doing for years. Not all app developers have the luxury of time. Swift action could make all the difference for some market players.

22

3 Comments

PIB EXPLAINED The legal and technical arrangements that underpin interoperability in the payment systems (safely moving money from a store of value held at one institution to a store of value held at another organisation) involve a lot of operational detail. As managing this operational detail is not – and should not be – the natural space for payments regulators, the Payments Industry Body (PIB) uses a self-regulatory model for the operational management of interoperable payment systems. #PIB #Payments #Impact

26

The Financial Conduct Authority has set out its stall to strengthen safeguarding rules for #payments and e-money firms. Firms will need to engage with the consultation, which closes on 17 December, and then get ready for extensive changes to how they safeguard relevant funds. The first rule changes are likely to apply from Q3 2025, with more fundamental reform to follow. Read more in our latest #Tech Insight. #fintech #FCA

1

Digital bank Monzo has swung to profit for the first time, writes Frances Coppola. But its new-found profitability could prove short-lived as the end may be nigh for “narrow banks”. Full-year results just released show pre-tax profits of £15.4mn, generated largely from higher net-interest margins. Monzo, like most banks, has benefited from the Bank of England’s high interest rates. But like many of the challenger banks that grew from the ashes of the 2008 financial crisis, Monzo should be classed as a “narrow bank”. Its business model is focused largely on depository services and payments, and what little lending it does is also payments-related (credit cards and “buy-now-pay-later”). Its balance sheet is more like that of a payments processor than a traditional bank: against some £11bn of deposits, it holds £7bn of cash reserves at the BoE and £3bn of government and supranational debt. Loans make up only 15 per cent of its balance sheet. This business model amounts to an unhedged bet on BoE interest rate policy, Frances writes. Read more here https://lnkd.in/e79pQGWH #Monzo #bankingindustry #narrowbanks

17

Digital verification innovation will transform how consumers and businesses engage with the financial services sector  Centre for Finance, Innovation and Technology (CFIT) leadership bringing together a range of stakeholders in tackling economic crime will make it easier for businesses to access financial services.  The White Paper published today highlights how this industry leadership can have real positive impact. Terrific leadership by Leon Ifayemi Teresa Lam #FinTech #Innovation #FinancialServices #EconomicCrime #DigitalVerification  Charlotte Crosswell OBE Alex Marsh ★ Madush Gupta ★

17

🚨 Is the FCA fit for purpose? A shocking new report published today reveals systemic failings at the UK’s financial watchdog, calling for urgent reforms to protect consumers and rebuild trust. 💬 This affects everyone—from savers to small businesses. Let’s demand a fairer, more transparent financial system. Learn more about what needs to change and how we can create a better future together. 🌍 🔗 Read the full article here: https://bit.ly/3CM1tWK 💡 Join the conversation: What reforms do you think are most needed? Let’s make our voices heard! 👇 #FinancialTransparency #ConsumerProtection #FCAReform

7

9 Comments

📉 UK banks face mounting pressure to monitor a broader swathe of their workforce’s communications as the Financial Conduct Authority roots out non-financial misconduct. 🚫 NatWest has clamped down on off-channel comms by banning employees from using WhatsApp, Facebook Messenger and Skype on their work devices, it was revealed this week. 📊 It follows damning findings from the FCA that reports of NFM at UK banks soared by 70 per cent between 2021 and 2023. 🤖 The case for proactive monitoring and AI-driven solutions to address this challenge is growing more compelling. 🎙️ Shaun Hurst and Paul Taylor from surveillance technology provider Smarsh spoke to Lucy McNulty from the Following the Rules podcast about how banks can better track — and ultimately address — non-financial misconduct. 👀 Read an excerpt of her Q&A with them below. https://lnkd.in/ejgEFejM #NonFinancialMisconduct #Banking #BankingIndustry

9

1 Comment

Sharing some key thoughts on vulnerable customers which should be integral to an overall wellbeing strategy for banks. In today's financial landscape, UK banks face a critical challenge: effectively supporting vulnerable customers. The Financial Conduct Authority emphasizes the importance of this mission, providing comprehensive guidance to ensure fair treatment and adequate support for those in vulnerable situations. (Included the FCA Guidance Document in comments for reference). > Understanding vulnerability is key. It can stem from health issues, life events, financial resilience, or capability, and may be temporary, sporadic, or permanent. Banks must recognize this diversity to tailor their approaches effectively. > Technology plays a crucial role. AI and data analytics can help identify vulnerable customers and personalize their banking experience. However, it's essential to balance this technological approach with human empathy and judgment. > Inclusive design should be at the heart of product and service development. Banks must consider the needs of vulnerable customers throughout the entire product lifecycle, ensuring accessibility and avoiding potential harm. Offering multiple communication channels allows customers to interact in the most comfortable way for them. > Front-line staff are vital in this mission. Comprehensive training programs should equip employees with skills to recognize signs of vulnerability and respond effectively. Some banks have successfully established dedicated support centers for specific vulnerabilities. > Clear communication is crucial. Banks should review their communications to ensure they are easily understandable, avoiding jargon. Raising awareness about available support services is equally important, as many customers may not know what help is available. > Supporting vulnerable customers requires continuous evaluation and refinement. Banks should establish robust feedback mechanisms and use this information to inform improvement efforts. > While supporting vulnerable customers is fundamentally about doing the right thing, it's also a regulatory requirement. Banks must align their policies with FCA guidelines and use Management Information (MI) to monitor the effectiveness of their strategies. As the financial landscape evolves, so must approaches to supporting vulnerable customers. Banks that excel in this area will not only meet regulatory requirements but also build trust, enhance their reputation, and contribute to a more inclusive society. This ongoing journey requires commitment, innovation, and collaboration across the banking sector. #FinancialInclusion #CustomerSupport #BankingInnovation #VulnerableCustomers #regulation #UKbanking #strategy

1

1 Comment

Great to see that Centre for Finance, Innovation and Technology (CFIT) are focusing on fraud prevention by better use of Digital Verification for their next coalition. #digitalID #fraudprevention

4

There have been lots of good summaries of the UK's National Payment Vision (NPV) since it was published on here so I thought I'd share something slightly different - the NPV in numbers. Looking at how often certain phrases or words are used is a good proxy for what the overall message is trying to say. I was pleasantly surprised to see innovation come out so highly. National Payments Vision - in numbers 🇬🇧 48.1 billion transactions in the UK last year 💳 29.1 billion payments made using credit or debit card in 2023 📆 4.9 billion Faster Payments made in 2023 📶 11 million current users of Open Banking services in the UK ⏰ 1500 transactions every second 💻 65 references to innovation 👐 61 references to open banking 🕵‍♀️ 48 references to fraud 👫 48 references to consumer 🏗 46 reference to infrastructure  🏃‍♀️ 26 references to competition 🏢 24 references to businesses  🏛 13 references to a digital pound 💪 6 references to resiliency 📱 5 references to digital wallets 🌍 2 references to stablecoins 💱 2 references to RLN Also, it's equally worth reading the joint payments remit letter sent to the Financial Conduct Authority and Payment Systems Regulator from HM Treasury that was published alongside the NPV. #nationalpaymentsvision #payments #npv #innovation #openbanking #fasterpayments

96

10 Comments

The UK Government has published its Smart Data Road Map. Our key takeaways are: > Priority Smart Data Sectors: Banking, Finance (Pensions and Insurance), Energy & Road Fuels, Telecoms, Transport, Retail, Home Buying > Departments will progress the sectoral schemes - with the scheme implementation steps defined in the Roadmap the Roadmap sees all of the priority sectors progressing in 2024 > Existing funded projects are Open Property and Open Fuel - great to have something to cut our teeth on And there is much already under development that enables Smart Data to reach it's full potential: > 1st things 1st the DPD Bill is progressing through parliment - Section 3 is Smart Data provisions > Digital Identity - Section 2 of DPID Verification Services - currently 52 providers certified as compliant with the Digital ID Trust Framework including #Yoti #Onfido #iProov #Experian #GBGroup #Digidentity #OneID > Implementation Entity - Open Banking Ltd (formerly Open Banking Imp Entity) will be put on a long term footing to migrate it's support to Smart Data > DMCC Bill passing through parliment, creating the provisions for the CMA's Digital Marekets Unit which offers opportunities for many businesses by opening up market territories previously dominated by the Big Tech companies. Smart Data plays a huge role here providing all businesses with access to data as rich or richer than those used by the Big Tech. > And where is the Consumer in all of this - 2023 saw a 13% of digitally active consumers adoption of Open Banking, that's 1 in 7. An impressive user base already on the behaviour change journey of using Smart Data. Not a bad target market for any business to aim for. The Smart Data Roadmap is an phenominal step forward and much thanks needs to go to Gavin Starks and Kevin Hollinrake for co-chairing the Smart Data Council. Congratulations also to the Smart Data Team Siobhan Dennehy Agnieszka Scott Eleanor Stead Joseph Hartigan Amy Woy, PhD Dale Every Callum Ward . Special mention to John Fitzpatrick now at the FCA. And special mention to my fellow Smart Data Council members, and sub group members - too many to mention by name who all give up their time to progress this important agnenda for the UK Economy. Onwards

65

15 Comments