Martyn Beauchamp

Really interesting to read about TISA's new select ID scheme. Allowing customers to select their preferred Digital ID provider, this will not only simplify the customer jounrey and reduce fraud but forge the future of Digital ID within the industry. http://spr.ly/6044ewNTj

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👀The Payment Systems Regulator Market Review of Card Scheme & Processing #Fees Interim Report – #HaveYourSay 👉#Consultation Closes 30 July 2024 https://lnkd.in/efYJJBwH My summary 👇of views sought on whether #1 All factors were considered. #2 #Visa & #Mastercard are subject to ineffective competitive constraints on the #acquiring side. #5 Acquirers have no alternatives to V & M for core processing services in the UK. #10 V & M are subject to competitive constraints on the #issuing side. #3 Consumer steering has limited constraining effect on V & M given the lack of effective alternatives. #4 #wallet operators unlikely to present effective competitive constraint on V & M. #6 #7 #8 #9 Acquirers & merchants have limited options/ negotiating power re: V & M optional services & whether competitive constraints/ alternatives to V & M exist. #11 #12 #13 Acquiring side revenue accounts for large majority of scheme & processing fees for V & M, whether fees have increased substantially over the years, whether this resulted in commensurate changes in value to customers, service quality, innovation, or transaction mix. #14 The profitability analysis of V & M UK operations when compared to the rest of Europe is sufficient. #15 #19 Notable differences exist between acquirers & issuers in information provision from V & M. Views sought on the materiality of issues experienced by acquirers (incl. ability to pass on behavioural fees to merchants, purchase of V & M optional data services). Views sought on non-price outcomes affecting issuers, acquirers, & merchants. #20 to #33 Views sought on potential remedies👇 (subject to further consultation in H2 2024): #POTENTIAL #REMEDIES #1 #Regulatory #Financial #Reporting: requiring V & M to provide the PSR with UK financial information & performance on an ongoing basis. #2 #Pricing #Methodology & #Governance: requiring V & M to take UK pricing decisions through appropriate governance structure incl. a PSR-approved pricing methodology & regular reporting to the PSR on governance of UK pricing decisions. #3 #Mandatory #Consultation & #Timely #Notification: V & M a) to consult acquirers on all fee changes before internal approval; b) to report to acquirers & the PSR on how feedback was incorporated in decision-making; c) to not implement fee changes until a specified period of time has passed. Further views sought on additional measures related to behavioural & optional fees. #4 #Complexity & #Transparency: remedies focusing on #availability, #clarity & #transparency of information, incl. standard #taxonomy (misclassification could lead to sanctions on V & M to compensate acquirers & merchants). #REMEDIES #NOT #CONSIDERED #1 #Boosting #competition: few alternatives are available in the UK. #2 #Encouraging consumer #steering: limited impact & can result in merchant costs. #3 #Price #cap: PSR may consider in future. #payments

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As the UK has a Labour Government for the first time in 14 years, the financial services sector eagerly awaits potential changes. bpesearch delves into the Labour Party’s manifesto and its impact on the financial services industry. With the financial services sector contributing 12% to the UK’s economic output in 2023, robust policies are essential. Discover more in our latest blog post. Read more; https://lnkd.in/eMRU4V2S #FinancialServices #UKEconomy #GeneralElection #LabourParty #bpesearch #EconomicPolicy #Finance

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The Payment Systems Regulator’s (PSR) interim report on card scheme and processing fees is out - covering some crucial aspects of the payment ecosystem. Thoughts below… ⬇ Highlights 💡 1. The report underscores the complexity of current scheme and processing fees, highlighting the need for greater transparency from card schemes. Decoding these fees is currently challenging for many businesses. 2. The PSR indicates that existing fees might inhibit the rise of alternative payment methods, suggesting a more competitive landscape could emerge if these barriers are addressed. The complexity of the fees might also be limiting the rise of players that compete with the schemes on additional services - as it’s unclear for acquirers which services are core and which can be procured from these alternative providers. 3. The report identifies an imbalance in bargaining power between acquirers and issuers, emphasising the need to ensure that the network's benefits are balanced between the buyer and seller sides. Proposed Remedies 🔎 1. Encouraging card schemes to engage more constructively with acquirers and merchants to enhance offerings and foster a more collaborative environment, for example by consulting before introducing new fees. 2. Increasing transparency on what services are optional vs. mandatory could allow smaller providers to compete more effectively, driving innovation by allowing specialised providers to build on the schemes’ core platform. 3. Implementing greater financial reporting for continuous PSR supervision aims to pre-emptively address potential issues and prevent them from escalating into major problems. Really looking forward to contributing to these discussions and supporting the development of sustainable solutions. We need measures that will boost competition in the long run and benefit the entire payments landscape, including new methods like Account-to-Account (A2A) payments. Teya

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There was a great feature in the FT this week on Zopa’s successful growth - https://lnkd.in/efcSCrVc - and I thought this would be a good moment to share more about my time there as a consultant recently.  What started out as a short project in January with the CSO and CEO of Zopa, I’m happy to say has turned into a 6-month stint across several areas covering vision, marketing and product-related topics, as the company readies itself for an IPO. I’ve met a great leader in Merve Arslan Ferrero and I've loved working with Clare Gambardella again from my Wolff Olins and Virgin Active days. Zopa started out in peer-to-peer lending in 2005, but relaunched as a fully-fledged digital bank in 2020, and they have been picking up momentum since then. They’ve just announced their first full year of profitability; have over 1+ million customers with a 30% customer growth rate; and a strong NPS record too. At 800 Zopians strong and +£220m revenue they are at a tipping point in their maturity, and I’ve been energised by the strategic challenges this throws up. It’s been great for me to learn about a new sector and adapt to a new organisation in a high-energy, pre-IPO moment. Fintech feels like a natural extension from proptech, given the useful role these brands play in people’s lives combined with the shared importance of data. With their new announcement of their upcoming current account launch, my focus is now shifting more to their new products, which should be a lot of fun.

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At next week's Trade Finance Investor Day, we will revisit our progress across the originate-and-distribute model with a focus on bridging SME-focused lenders with capital markets through securitisation. A total of 24 speakers have been hand-picked to demonstrate how new #technologies have been embraced - quite recently - by #G7 regulators around the world to introduce new #policies, which triggered #partnerships between industry service providers to deliver new #value propositions to extend capital markets liquidity to SMEs. It is not as complex as it seems when listening to them: Sarah Green André Casterman Nick Stainthorpe Pranay Srinivasan Oliver Howard Felicity Thompson, CFA Idriss Al Rifai Vikrant Yadav Moritz Hill James Kay-Hards Mark Abrams Jon Boran Harsha Mehta Christoph Gugelmann Billy Sebell Amparo Garcia Flores Doris Kononowicz Sarah Murrow Deepesh Patel Suresh Hegde Richard Wulff Philippe HENRY Guenther Poettler Swaroop N L N They are all here: https://lnkd.in/eTSMk_Gi Thanks to this upgraded trade eco-system, new entrants in trade and working capital finance such as SME-focused lenders and capital markets liquidity providers, benefit from advanced options to originate digitally, to enrich transactions with more data, to better mitigate risk, and to share high-yield transactions with structured credit investors. We thank our 10 partners supporting the event: Allianz Trade in UK & Ireland XDC Foundation Tradeteq Reed Smith LLP MFD Emerald Capital Group LSQ Teybridge Capital Lloyds Corporate & Institutional EBRD Trade Facilitation Programme and our leading industry associations and media: ITFA ICISA - International Credit Insurance & Surety Association Global Trade Review (GTR) Trade Finance Global (TFG) DNI Initiative TFD Initiative

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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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After Labour's landslide election win, we start this week for the first time in 14 years with a new government and the possibility of real change, which is both positive and exciting. In particular, I have been thinking about what we need from the Labour government to support and grow the UK’s fintech industry. There is so much potential that can be harnessed if the government is proactive in supporting innovation and growth in this sector. Here are just a few ideas that come to mind:   💰 Support for SMEs – The government needs to create the conditions that will allow SMEs to thrive. Labour has promised a reform of the British Business Bank to allow SMEs to access capital more easily, and to publish a roadmap of business taxation to enable businesses to better plan with confidence. Now we wait to see how these changes will work in practice to support not only the fintech industry, but all types of business.   🏦 Capital Markets – Without re-instating the UK as an attractive destination for businesses to grow and list, British and international businesses will continue to go elsewhere, and our economy will suffer. The government needs to expand on its plans to reinvigorate our capital markets to make the UK a highly attractive destination for successful fintechs to list.   👩‍🏭 Careers in Fintech – The fintech industry relies upon brilliant minds and great talent, but the path into fintech is not easy for school leavers who either can't or choose not to go to university. To really create an industry that is accessible to all and can benefit from talent from all types of background, the government needs to work with the industry to offer attractive apprenticeships and ways into fintech that supports career futures.   👨‍🏫 Financial Education – We need to start teaching financial education in our schools. Technology has fundamentally changed our relationship with money and has made it easier for many of us to manage it and get things done. That said, a huge number of people in the UK still don't understand the basics of how many mainstream financial services products actually work. As a result, people are not empowered to get the best deals, use the right products at the right time and to avoid the rising number of financial scams. It is so important that we start to teach our children how money and the products related to it work.   #LabourGovernment #fintech #education

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25 years ago the UKs banks joined forces to ensure that everyone could withdraw cash from any ATM regardless of whether it was operated by your bank or not. Before that, you often faced paying a fee if the ATM didn't belong to your bank. Something that is still the case in many countries across the world today. The network effect of this agreement was brilliant for everyone in the country and has driven huge efficiencies in the cash supply chain over the last quarter of a century. So we shouldn't underestimate the importance of this initiative. For the first time, everyone will be able to use an ATM which is not operated by their bank to PAY IN cash as well as take it out. This has the potential to keep cash deposits sustainable through leveraging the network effects of sharing. That's important to ensure cash remains a viable payment mechanism and continues to be accepted by businesses - making it easier for everyone to deposit cash into their account. https://lnkd.in/eC-Sd-Mn

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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

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**The hysteria around finance team evolution is ridiculous. 🤯** I just read an article claiming that "Finance teams have five years to adapt to changing demands" (Read it here: [South Wales Argus](https://lnkd.in/eebPEjHb)). Seriously? The *hysteria* about finance transformation is mind-blowing. And yet, there’s no question—adaptation is non-negotiable. But let's cut the fluff. Here’s the undeniable truth: Finance teams *must* innovate, or they'll disintegrate under the variety of tools making their roles obsolete. Consider Finotor: Incorporating it into your finance operations isn’t just a “nice-to-have”; it’s *essential*. This software means FINANCE can shift from being the ‘boring guys’ crunching numbers in the corner, to powerhouse decision-makers steering the future of the business. Use Cases: 1. **Enhanced Financial Analysis:** Say goodbye to manual data entry and hello to data-driven insights available at the click of a button. Imagine making strategic decisions backed up by real-time numbers rather than last quarter’s results. 2. **Streamlined Accounting Processes:** Finotor can automate mundane accounting tasks, freeing up your team to focus on activities that actually add value. Imagine reducing your team’s workload by 40%, giving them time to develop innovative financial strategies. Finance teams, you have **five years** to embed agility deeply into your DNA. The countdown is ticking. Don’t get left behind. 🔗 Interested in taking your finance department to the next level? Let's connect. Franck BRUNET ---------------------- Liked this post? Want to see more? Ring it on my profile 🔔 Connect with me 🔝 Follow me: #franckbrunet #finotor

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With an election date set and manifestos due to come out this week, I’ve been thinking about something my colleague Randeesh Sandhu recently touched on in one of his LinkedIn posts: how the next government will address the role the built environment can play in tackling climate change and generating social value.   I’ll be interested to see how existing legislative routes are continued, but also, renewed plans from both sides on how to responsibly tackle our acute housing situation. Regardless of the outcome, July’s election winner will undoubtedly enter into tough circumstances, environmentally and socially, albeit in large part due to failures from previous governments to implement meaningful action and strong policy decision-making for housing. The UK’s 2050 Net-Zero targets appear increasingly unrealistic, and a recent progress report showed that we are failing almost all our legally binding environmental targets set as part of the Environment Act in 2021. Housing shortages are at crisis point and rents are surging amidst some of the most challenging economic conditions we’ve seen for some time. Manifestos that not only present a coherent approach to addressing housing shortages, but also do so with careful consideration of the environmental and social conditions we are in, will be vital.   Bills which were in motion, such as the Renters Reform Bill, have been dropped in the pre-election ‘wash-up’, but the momentum for housing shouldn’t fall by the wayside. We are already on the back foot with MMC, which can contribute to delivering urgently needed new homes in a more equitable and environmentally friendly way. Westminster has taken notice of this and has made some attempts to hold the government to account. However, meaningful action, particularly around formulating a coherent strategy and setting achievable goals, remains sorely lacking. There is a lot of discussion in the industry about retrofitting existing buildings and how we can better use current stock to address housing malfunctions, which also has a critical role to play in countering climate change. These are both things I would like to see addressed in policy post-election.   As the severity of our housing crisis mounts, both sides will need to sure up their plans to tackle this complex problem. It’s one that requires a delicate balance between meeting the demand for new housing and achieving our industry’s, and country’s, vital sustainability goals.   UK Green Building Council (UKGBC) #UKElection #Housing #ESG

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Right now more than 120,000 households in England are homeless and living in temporary accommodation, and a household becomes homeless every three minutes.   Early intervention is key. Our groundbreaking No Fixed Address service has helped thousands of people access the financial services they need to help rebuild their lives, and in partnership with Shelter we’re helping more people and families build financial resilience and break the vicious circle of homelessness.   From local pilot projects aimed at tackling the root causes of poor financial health to creating new digital tools and in-person services, a key aim of the partnership is to help people before they reach crisis point. Indeed, our funding combined with help from our digital team has enabled over 180,000 online sessions for people looking for self-help tools over the last four months alone. If you are feeling worried about your finances or housing situation, you’re not alone. Getting help and advice early can make all the difference. Reach out to your bank, or specialist service providers like Shelter for assistance. We will not judge, and we stand ready to help. #HSBCUK #WorldHomelessDay 

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We did not see evidence of political views leading to account denial, suspension or termination - is one of the main findings of the recent update to the ‘UK Payment Accounts: Access and Closures’ report initially published by the FCA in 2023. As stated in the 2023 report, by far the most common reasons account providers gave for declining, suspending or terminating an account were because it was inactive/dormant or because there were concerns about #financialcrime. The follow-up report highlights four main findings: 📌  Basic Bank Account (BBA) customer journeys varied, leading to differences in apparent rejection rates, and firms were poor at making customers aware of BBAs. 📌  Data on account access was limited or unclear. 📌  No evidence of political beliefs or other views lawfully expressed being used as a rationale for account denial, suspension or termination. 📌  ‘Reputational risk’ is used in varying ways by different firms to deny or close accounts. Out of these four, I find the ‘reputational risk’ issue worth exploring further. It comes up frequently during FINTRAIL AML audits when we discuss firms’ risk appetite statements (or lack of them). The FCA sets clear expectations: 📍  have a clear definition of reputational risk and how it should be used in the context of account access, which is understood by relevant staff, 📍  be able to satisfy themselves that, when reputational risk is cited as a reason for an account denial or termination, the customer represented a material reputational risk to the firm’s business, 📍  consider what monitoring is required in relation to how they use reputational risk in the context of account access, and intervene appropriately if they identify that internal policies are not being applied consistently, 📍  maintain adequate records of account denial or termination decisions for reputational risk. Where firms are, on reasonable and properly considered grounds, deciding not to offer or to continue to provide a payment account to a customer, the regulator expect that firms’ communications should meet the consumer understanding requirements under the Consumer Duty, including by being clear on what their decision is, what this means for the customer and the steps the customer could take. #aml #amlcompliance #ffe

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How to pay suppliers? Use your credit card to send checks. 😁 75% (!) of organisations still use paper checks in the US. We in Europe may laugh about it, but the d€ has some similarities. The currently discussed design of the d€ means that the payer uses the (commercial bank) money in his bank account to buy d€*, send it to a company, which must immediately convert it into (commercial bank) money on its bank account. *I assume here no one is holding any d€ in its wallet, as the d€ will not bear any interest. #payment #cdbc #digital€ #d€ #checks

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📈 The UK can be the best place in the world to invest. In the King’s speech, the British Private Equity & Venture Capital Association (BVCA) will be looking out for several of our Manifesto for Growth recommendations which could feature in the new government’s plans. We're expecting to see the new government put forward welcome legislation including: A Planning Bill which reforms planning and public infrastructure, ensuring businesses who want to expand and create more #jobs, can. Rushanara A. Sharon Taylor Lord Wajid Khan A Green Energy Bill to set up GB Energy which will help coalesce funding around solutions that are key to the green transition. Sarah Jones MP A National Wealth Fund Bill designed to increase #investment in important sectors and to provide a strategic direction for investors. Rt Hon Rachel Reeves Rt Hon Darren Jones MP Spencer Livermore Tulip Siddiq HM Treasury The #privatecapital sector welcome's the new government focus on growing the economy and stands ready to play a crucial role in developing the nations and regions of the UK. As a partner for growth, #privateequity and #venturecapital can be the key to unlocking billions in additional investment for the UK. To read more of the BVCA’s recommendations, you can find our Manifesto for Growth here https://lnkd.in/e_xYz264.

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Good morning Fintech!! Some positive tones from the FCA following the publication of their International Competitiveness and Growth Objective report this week. Key takeaways: 📈 The financial and professional services industry contributed a record £110.2bn to the public purse in 2023. This is 12.3% of total UK tax receipts. 🎯The UK remains the world’s preferred regulatory regime for financial services, and London the world’s second leading financial centre, closing the gap with New York. 💥The FCA is cutting red tape and is removing or simplifying rules that overlap with Consumer Duty, which should lower costs for businesses in the sector 🚀They are supporting growth in the sector and the economy BRING IT ON!! 💪 #fintech #fca #economicgrowth

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The British Business Bank's first-ever Impact Report is a valuable measure of our success as a catalyst for UK economic growth. The report shows that, in 2023 alone, we supported more than 23,000 smaller businesses with £3.5bn of funding, which will support over 250,000 existing jobs, create around 40,000 new jobs, and generate £8.4bn of economic benefit (GVA). As we approach the Bank's 10th anniversary, it's an important moment to reflect on and examine the connection between the work we do and the economic benefits we bring to smaller businesses and the wider UK economy. You can read the full report here: https://bit.ly/4fzcIRm

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