Chris Wood

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

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The Bank of England welcomes API Panel of Experts recommendations to enhance cross-border payments, set out in the October 2024 publication entitled 'Promoting the harmonisation of application programming interfaces to enhance cross-border payments: recommendations and toolkit.'.   Want to know more? Read the report: bis.org/cpmi/publ/d224.htm and the Banks' statement: https://lnkd.in/egXA3yF9  

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UK Government has issued a Smart Data Roadmap. https://lnkd.in/eE5b_iKV: This builds upon the UK's Open Banking initiative that has now c330 innovative apps https://lnkd.in/e6JvYvFR and Transport for London Open Data Feeds https://lnkd.in/eFGvZB-i The Roadmap is to further extend API provision of data in Banking, Finance, Energy and Road Fuels, Telecommunications, Transport, Retail and Home Buying. #govtech #Opendata

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🌟 Calling All Innovators: Open Finance Data Innovation Challenge! 🌟 Smart Data Foundry launched a unique UK Fintech innovation challenge with FinTech Scotland, which aspires to improve UK citizens' financial futures. The Challenge: As life expectancy rises, so does the need for better financial planning. We're looking for groundbreaking solutions that harness the power of Open Finance data to revolutionise how people prepare for the long haul. Whether it's savings, pensions, or investments, your ideas could be the game-changer that shapes the future of financial security. If your idea is successful, you could win up to £50,000 to bring it to life! And that's not all. With the backing of industry giants like NatWest Group PwC and Royal London, you'll have the necessary support and resources to turn your idea into a reality and make a significant impact in the fintech world. How to Get Involved: Whether you're a seasoned pro or a fresh face in the #fintech scene, we want to hear from you! Explore our industry challenges, brainstorm ideas, and let your creativity shine. Test out ideas by utilising our aizle.ai synthetic data sets. No matter where you are in your journey, your perspective could be just what we need. Take advantage of this chance to be part of something special. Together, we can make a real difference in people's lives. 👉 Apply now, and let's build a better financial future together! 👈 https://lnkd.in/emH8U6-H

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Open Banking Standard v4.0 update and release: we've closed the consultation and incorporated industry feedback - release scheduled for end of June. Discuss v4.0 implementation and migration questions at our webinar on 18 June. Request an invite >> https://lnkd.in/excN8CYg #OpenBankingStandards #fapi #OpenBanking #Fintech #Innovation 

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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

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Paythru releases guiding principles EV payment specialist Paythru has published a proposed set of guiding principles aimed at greater collaboration among the payments sector, public charge point operators, and charge point management systems. The move has been undertaken by the firm to address current problems with the charging payment process. Shaped by its own research, and conversations with the industry around what drivers want. It is also backed by the Association for Renewable Energy and Clean Technology (REA), as part of its ongoing mission to accelerate the UK’s transition to a cleaner, more sustainable energy future. Paythru proposes the following set of guiding principles for all EV charge points, with the methods addressed in the charter: - No more confusion over charging costs - Standardised and reliable payment methods - Minimise payment failures - Clarity and transparency in pre-authorisation - Simplified transaction and notification processes Read the full story on the Transport + Energy website: https://lnkd.in/er6zB4QF Paythru , Keith Brown , REA , Matthew Adams , Sara Sloman #transport #energy #electricvehicles #charging #payments

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The recent CFIT SME Finance Taskforce report underscores the pivotal role of financial organizations in driving business growth and economic resilience. As the landscape evolves, the demand for innovative, data-driven solutions that empower SMBs is more pressing than ever. At 9Spokes, we’re dedicated to equipping financial organizations with the tools they need to empower their SMB customers through informed decision-making and sustainable growth. Reach out to learn how we can help drive your team's data initiatives. #financialservices #smb #opendata #cashflow #openfinance

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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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Stability First: Exploring the Bank of England’s Approach to Payments Innovation Read the full blog: https://lnkd.in/dvuvg65d #BankOfEngland #PaymentsInnovation #FinancialStability #TechInBanking #PaymentSolutions #RegulatoryApproach #DigitalBanking #FinancialTechnology #finance #fintech #FinancialIT

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💡 New #APP Fraud Reimbursement Rules enter into force today, 7th October All in-scope Payment Service Providers #PSPs that use of Faster Payments Service #FPS and Clearing House Automated Payment System #CHAPS will need to ensure their processes are compliant with the new requirements. ➡️ The Payment Systems Regulator #PSR rules will now require Payment Service Providers #PSPs to reimburse APP Fraud victims up to £85,000; ➡️ Where more than £85,000 is lost and not reimbursed, customers can lodge a claim with the Financial Ombudsman Service #FOS, which has a compensation limit of £415,000;  ➡️ Sending and receiving PSPs will split the costs of reimbursement 50:50;  ➡️ The Pay.UK reimbursement claim management system #RCMS will enable firms to communicate and manage claims; and  ➡️ There will be a requirement to reimburse most APP Fraud victims within five business days, or 35 days If firms ‘stop the clock’ to gather additional information. All in-scope PSPs should ensure that their fraud and consumer protection policies and controls now reflect the new reimbursement requirements as to ensure compliance and effective outcomes. ✅ From providing guidance to conducting fraud assessments, Plenitude’s Fraud Practice can help your firm navigate the new requirements. Prompt action and a strategic plan are key to ensuring your fraud risk management remains resilient, minimises losses and costs, and meets regulatory requirements. For more information visit: https://lnkd.in/e_UCKYWW Learn more: https://lnkd.in/ezy-fx5A

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🚀 🌟 Embracing Digital Transformation in UK Mutual Societies: Migration to Digital Passbooks now Live...! 🌟 🚀 In the UK Mutual and Savings sector, Passbooks have long been a cornerstone for Savings Accounts, fostering trust, transparency, and security among members. However, in today's digital age, there's a need to modernise. Excited to announce our initiative with our FinTech partner, offering seamless migration to digital infrastructure and the UK's first Digital Passbook Technology! 📈 Key Benefits: - Digital Wallet - In-App, Online, In-Branch, or Agent supported Onboarding! - Superior Customer Experience (for example, Print from your Digital Wallet at home or In-Branch) - Enhanced Trust & Transparency - Quick Reference to Financial Status - Increased Security & Control Interested in Migrating your Customers from traditional passbooks to Digital ones? Book a face-to-face or virtual demo with us today ([email protected])! #DigitalPassbook #DigitalTransformation #FinTech #UKMutualSocieties #SavingsAccounts #DigitalWallet #FinancialSecurity #Innovation #Trust #Transparency Follow 👉 WAGDSi & Repost 🔂 with your network 😊 Push 🔔 for notification

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OBL Trustee Marion King commented: “The Government’s National Payments Vision is hugely welcome, and rightfully identifies the role that open banking payments play in driving innovation and competition in payments.   There are 11m active users of open banking and the ecosystem is already worth more than £4bn to the economy. We must now seize the opportunities before us to move open banking to a sustainable, commercial model." Read more > https://lnkd.in/egubFGPg #OpenBanking #DataBill #SmartData #OpenFinance #Innovation #DigitalInnovation #TechInnovation #Payments

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Zopa Bank Amasses £4 Billion in Customer Deposits "Launched in June 2020, the milestone makes Zopa one of the fastest digital banks in the UK to turn an annual profit." https://lnkd.in/enJpvDxj #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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The Competition and Markets Authority warns Monzo amid concerns over compliance failures https://lnkd.in/ewjCTrAb As fintech grows, balancing innovation with oversight will be key to long-term success. #Fintech #Monzo #Regulation #DigitalBanking

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https://lnkd.in/dFh-uJTA Monzo Bank Chooses GROW with SAP to Enhance Digital Banking Solutions Monzo, which was established in 2015, was one of the first #digitalbanks in the United Kingdom. It currently has over nine million personal customers and 450K corporate customers. Monzo chose SAP’s Business #Technology Platform (#BTP) and #GROW with SAP for #Scaleups for their extensive functionality and pre-existing #localization capacities. Monzo will receive the necessary flexibility and backend support to comply with current legal mandates and regulatory trends in the UK and other nations in the future, thanks to the support of systems integrator #NTT #DATA #BusinessSolutions for the #transformation programme. #fintechnews #technews #viralnews #techforgood #fintech Follow FinTech Publications Intent Amplify™

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ThinCats Passes £2bn Funding Milestone for UK SMEs Mike Hackett, Chief Commercial Officer at ThinCats: “This milestone reflects ThinCats’ dedicated approach to the mid-size market and support for the local finance community with whom we work in partnership to help mid-sized businesses thrive. ThinCats’ commitment to regional investment has been a critical driver of growth and we have built up experienced teams across our network of regional support offices, and they work hard to deliver flexible funding solutions for mid-sized businesses across the UK”.   https://lnkd.in/eqMUA4Jk Daisy Knight Ricardo Bougi Ravi Anand Gary Nutley Beth England Diana Portman Stuart Thompson Amany Attia #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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What's happening in payments compliance: BNPL Firms Enthusiastic As UK Government Unveils Legislation 👉 Buy now, pay later (BNPL) firms and other stakeholders have applauded the UK’s new Labour government for introducing regulation that will bring firms into the scope of supervision from the Financial Conduct Authority (FCA) 👉 The new legislation brings an end to a string of consultations and commitments that extend back to 2021 👉 Stakeholders have until November 29 to respond to the government’s consultation on the new regulatory proposals 📖 Read the full article: https://lnkd.in/e8jywJUT #paymentsnews #paymentscompliance #bnpl

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📊 Allocations of unspent Section 106 contributions in England and Wales 📊 For more insight into unspent developer contributions, read the report 👉 https://lnkd.in/e66p5HpV

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