Myles Stephenson

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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Foundation 92 Announces Partnership With Tandem Bank to Deliver Financial Inclusion Alex Mollart, Chief Executive Officer at Tandem Bank, said: “Tandem is focussed on helping consumers transition to a lower carbon lifestyle. But that fight against climate change is nothing is people are left behind and are unable to join it. “Sustainability stands for so much more than just carbon emissions and creating a lasting impact across society is at the core of it. Financial skills and literacy are at the heart of the modern economy and our daily lives and yet so many lack basic skills or understanding – I’m proud Tandem can bring our expertise to help plug the gap. https://lnkd.in/eA6CukFb Tom Hutton #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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This milestone is a mixed signal for me. While it highlights Monzo's potential and growth opportunities, the decade-long journey to break even and higher provisions for bad loans suggest caution. Many investors typically seek break-even points within three years, raising questions about the sustainability of the current fintech model https://lnkd.in/dTCjbFz6

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Monzo has introduced three new security controls-Known Locations, Trusted Contacts, and Secret QR codes—to protect customers from fraud. These opt-in features require customers to use at least two controls for bank transfers or savings withdrawals above a set limit, adding layers of verification based on location, trusted contacts, or QR codes. Digital financial services have brought remarkable advancements, making payments more convenient, inclusive, and efficient. However, these benefits come with challenges such as security risks, regulatory hurdles, technological barriers, and privacy concerns. The controls introduced by Monzo are straightforward solutions that traditional players can adopt to enhance consumer trust. #dfs #tech #digitaltransformation #innovation #controls #fintech

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Yesterday the Payment Systems Regulator held a session demonstrating the commitment to the first phase of #VariableRecurringPayments and future use case development. The PSR brought together a great panel including Hannah Regan Kate Fitzgerald, Phillip Mind, Jane Moore and Maria Booker to discuss the regulatory, banking, merchant and consumer perspectives of VRP. One topic that resonated with me was the poverty premium faced by consumers who can't pay regular direct debit for #energy and other #utilities. This seems deeply unfair and is something the payments industry can help facilitate change with better payment solutions. The example below illustrates how we at Trustly view hashtag #VRP providing flexibility to consumers who want to mix regular payments with one-off payments. We use an example of someone self-employed with irregular income facing accumulated energy debt. They pay a manageable weekly amount and use the same VRP mandate to pay off the full balance when they can. Furthermore, this solution will be considerably lower cost for Utility suppliers than accepting card payments. If you would like to understand more the full white paper "Open Banking: Creating Positive Energy" is available here https://lnkd.in/eV5rRUvm #fintech #openbanking #energy #payments

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Otto Benz, Payments Director, discusses the evolution of Nationwide Building Society's journey with Form3. From FPS implementation to multi-cloud and the importance of tackling fraud. He tells all👇 #paymentsplatform #cloudnative #fintech #banking #financialservices

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Broken Business Savings Market Is Costing British SMEs £9 Billion a Year in Missing Interest Richard Davies, CEO of Allica Bank, said:  “There’s no question the SME savings market is broken. “The fact the SME savings penalty has got larger since we first did our research last year – while the Bank rate has reduced slightly – is a travesty many SMEs will find hard to understand. “It’s very unfair SMEs don’t get similar rates to large companies, and our research suggests big banks won’t be improving their rates for SMEs any time soon. “It’s time for something to be done to make that change, get SMEs a better deal and release billions of pounds into the real economy.” https://lnkd.in/eqAmuVCf Chloe Fenton (née Vaidya) Georgie Burks Joe Jones James Heath Ravneet Shah Conrad Ford Mitch (Munish) Trehan Nick Baker #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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J D Wetherspoon Partners With Payit™ by NatWest Group to Deliver More Secure Payments for Consumers Mark Brant, NatWest Group Chief Payments Officer comments “This new partnership with one of the UK’s most recognisable brands is an exciting move for Payit by NatWest. It’s one that allows us to provide a company with an extensive consumer base a way to reduce the cost of taking payments. “Ensuring the latest payment technology is available to as many consumers as possible is also one of our key ambitions as a business. The added security afforded by Open Banking technology reduces the risk of sensitive information, such as card details, falling into the wrong hands.” https://lnkd.in/eAUy_mJ8 #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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In today's economic landscape, where retailers like SuperDry and Ted Baker are feeling the squeeze, it's vital for retailers to innovate to safeguard their profits. With online shopping reigning supreme, brick-and-mortar stores must evolve to thrive. Delia Pedersoli's latest piece shines a spotlight on an exciting development: Pay By Bank. This groundbreaking technology simplifies transactions, letting users authorise payments straight from their mobile banking apps with the use of a QR code —no extra downloads required! It's a win-win: consumers enjoy seamless transactions and heightened security, while merchants make significant savings by eliminating interchange and scheme fees. Plus, with real-time processing, retailers can access revenue faster and minimise fraud risks. While traditional tactics like inventory management and rent negotiations are important, embracing digital transformation opens new doors for growth. Pay By Bank is reshaping the retail experience, offering streamlined transactions and enhanced security for both consumers and businesses. Huge thanks to Finance Derivative for spotlighting our take on this game-changing payment trend! #Retailers #Payments #PaybyBank

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Finom Launches SEPA Direct Debit B2B Across Its EMI-Licensed Markets, Expanding Payment Options for European SMEs “With the launch of SEPA Direct Debit B2B, we’re empowering SMEs across Europe to efficiently manage their payment flows,” said Yakov Novikov, co-CEO and co-founder at FINOM. “This feature simplifies complex financial operations, allowing small and medium-sized businesses to automate and manage their outgoing payments to other companies and tax authorities. It’s another step in our mission to build a full-stack financial operating system that enables entrepreneurs to streamline their financial commitments and focus on growing their businesses.” https://lnkd.in/eiaDuxB4 #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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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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Monzo Bank's FY24 results are in, and they've hit a 𝐦𝐚𝐣𝐨𝐫 𝐢𝐧𝐟𝐥𝐞𝐜𝐭𝐢𝐨𝐧 𝐩𝐨𝐢𝐧𝐭. Diving deep into the numbers reveals three key drivers behind its impressive growth: 1. Customer Expansion 👤 Monzo's customer base grew from 7.4M in FY23 to 9.7M in FY24, including a doubling of business accounts from 200K to 400K. With 46% of new customers acquired through word of mouth, this organic growth highlights strong customer satisfaction and brand loyalty. 2. New Product Innovations 🆕 The launch of products such as tax-free savings ISAs has attracted 1.3M customers. Monzo Flex (a novel credit card/BNPL hybrid), and overdraft facilities offer higher interest rates and greater financial flexibility. A significant 42% rise in card spend—from £33.6B in FY23 to £47.8B in FY24—demonstrates heightened customer engagement and trust, solidifying Monzo as a preferred choice for daily transactions. 3. Enhanced Profitability and Financial Strength 📈 Monzo’s profit before tax hit £15.4M, marking its first full year of profitability. This milestone underscores effective cost management, diversified revenue streams, and scalable operations. With gross revenue surging 2.5x to £880M, Monzo’s successful monetisation strategies and strong market demand are evident. At the same time, customer deposits soared by 88% to £11.2B, reflecting growing customer confidence and reliance on Monzo as a primary banking institution. Future Growth Trajectories: Strategic Focus Areas 🎯 Monzo aims to expand its consumer base to 11M by FY25, leveraging organic growth and innovative marketing strategies. It plans to venture into mortgages and go deeper into business lending, indicating significant headroom for product diversification and revenue enhancement. Moreover, Monzo's strategic entry into Europe, with an Irish HQ, and exploration of the US market, signals an ambitious geographic expansion plan to unlock new growth avenues.  ___________________ 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐣𝐮𝐬𝐭 𝐚 𝐭𝐚𝐬𝐭𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐢𝐧𝐭𝐞𝐥 𝐲𝐨𝐮'𝐥𝐥 𝐮𝐧𝐜𝐨𝐯𝐞𝐫 𝐰𝐢𝐭𝐡 𝐚 𝐖𝐡𝐢𝐭𝐞𝐒𝐢𝐠𝐡𝐭 𝐑𝐚𝐝𝐚𝐫 𝐬𝐮𝐛𝐬𝐜𝐫𝐢𝐩𝐭𝐢𝐨𝐧. Supercharge your Fintech IQ with exclusive reports, industry trend breakdowns, and expert analysis on everything shaping the future of finance.  Become a member and steer your business course with actionable intelligence on the winning strategies of leading fintechs - because knowing what's next is the ultimate competitive advantage ➡️: https://lnkd.in/gVfE8Cwg via @WhiteSight #fintech #digitalfinance #digitalbank #profitability #payments #lending #Monzo

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Larger Loans for SMEs: Applications for Loans Over £100k Grow by Half as SME Optimism Returns Colin Goldstein, Commercial Growth Director of iwoca, said: “The UK’s SME lending market is experiencing a resurgence. We’re seeing a significant rise in loan applications, with many businesses seeking larger sums to invest in growth. This coincides with low recession fears amongst SMEs – a positive sign that could point to a stronger year ahead for our economy and the small businesses underpinning it.” https://lnkd.in/eMHgJ959 Sally Chesterton DipAF Tehmina Mirza 💜 #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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Regulations to Slow payments - Sunday musings In the interest of delivering to high expectations (err, shouldn't my payments be as fast as an email !) payments have become faster and faster. Everyone is on this, banks, fintech's, providers all promise delivery of payments in seconds if not minutes. The stated objective is we can do anything faster and quicker and dare I say cheaper. What happens though is rampant fraud where the gullible - young and old alike become victims of fraud From experience, once money moves out of your account, it takes well-meaning entities an enormous effort to recall payments. There are kill switches installed and providers like SWIFT have GPI which can potentially stop a payment. There are some victory stories of monies being recovered and the unwitting remitter made whole. But there are many who lose the money to malicious actors. God save you if this payment goes cross border. I am an advocate of slower payments ! Enough time to check and recheck payment instructions before moving money. So, happy to see this now coming in a regulation. Other countries will follow suit for sure. UK payments could be delayed up to three days to prevent fraud This draft regulation would act as an amendment to the 2017 Payment Services Regulations, which requires PSPs must execute a payment within a maximum time limit. This move comes after findings that UK bank fraud losses topped £1 billion last year. Authorised Push Payment (APP) scams take up a large part of this cost, with APP reimbursement legislation coming into effect on 7 October from the Payment Systems Regulator (PSR). The PSR recently confirmed it would be cutting the reimbursement limit of this legislation to £85,000. https://lnkd.in/gDMEtYKk Thoughts ?

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Really enjoyed discussing payments at Future Fintech with Bank of England ClearBank Swift and the Payment Systems Regulator. A key question we discussed was how to reconcile the PSR's 5 year strategy and its objective to enable A2A payments for retail transactions as a driver of competition, with the inherent payment friction that will come from the incoming APP fraud rules and rules to slow down payments. The jury was out. My view: HM Treasury and Financial Conduct Authority need to use the upcoming review of the Payment Services Regulations to protect legitimate fintech and open banking payments from being slowed down, blocked and limited - caught in the APP dragnet. This could be a development of existing 'de-risking' provisions. Reg 103 - 105. What do others think? #openbanking #payments

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Standard Chartered Launches ESG-Linked Cash Account “As companies move from ambition to execution on sustainability, banks play an important role in enabling and motivating them on this journey,” said Mahesh Kini, Global Head of Cash Management at Standard Chartered. “The launch of our ESG-linked Cash Account is another testament to our commitment to offer our clients solutions that empower them to meet both their treasury and sustainability goals.” https://lnkd.in/eU_FBrbt Rami Lawand Alvina Neo Marisa Drew Charlotte Love Christopher Ben Parvinder Singh Sameer Nemazie Mir Rashaduddin Muadh Al Balushi #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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UK digital bank Monzo Bank invests $4 million on its Irish division to push the expansion in Europe UK-based digital bank #Monzo has injected €4 million into its new Irish division, marking a significant step in its European expansion plans. This move follows CEO TS Anil's announcement earlier this year that Ireland will serve as Monzo's gateway to European markets. By establishing an EU office in Ireland, Monzo aims to extend its innovative banking services across the continent. Founded in 2015 by Tom Blomfield, Jason Bates, Paul Rippon, and Gary Dolman, Monzo has rapidly grown to serve around 10 million personal customers and over 450,000 business customers. Competing with other digital banks like Starling Bank and Revolut, Monzo has distinguished itself with user-friendly features and a focus on making money work for everyone. The bank recently reported a pretax profit of £15.4 million for the 13 months up to March, a significant turnaround from a £116 million loss the previous year. This financial upswing was fueled by a surge in revenue to £880 million and lending £1.4 billion to customers—a remarkable 84% increase. With its expansion into Ireland, Monzo is not only solidifying its presence in Europe but also setting the stage for further growth, including plans to enter the U.S. market. The bank continues to innovate with new products like Monzo for Under 16s and Monzo Pension, aiming to provide comprehensive financial solutions for a diverse customer base. The article on Crowdfund Insider in the first comment.

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Monzo Bank Launches Under 16s Account TS Anil, Chief Executive of Monzo, said: “Monzo customers with children have been asking us when they can share the magic of Monzo with their kids - and now they can! From instant notifications to organising money with Pots and setting savings goals, we’ve packed the product with some Monzo favourites, tools for children to customise their app and neon cards to choose from. This is such an important step on our mission to make money work for everyone, as we welcome a new generation that we’re excited to support from the start of their financial journey and through the many years to come.” https://lnkd.in/eqWgwMuE #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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