John Gidla’s Post

A new survey found that Singaporean banking customers prioritize security amid rising online fraud. One of the new technologies Singaporeans wish to see implemented in banks is the "money lock", which prevents illegal withdrawals. Survey respondents also expect banks to take full responsibility in fraud by providing full refunds, with a new goverment framework expected to address this. It was found that millenials were the most targeted, and if given a choice, consumers prefer sufficient security over convenience in banking systems. https://lnkd.in/gc_kPJNz #Banking #Finance #Singapore #FraudPrevention #BankSecurity

TodayVille (Canada), "Upcoming Introduction of Open Banking in Canada," March 31, 2024: The Canadian government is advancing towards the introduction of #openbanking, a framework designed to allow customers to securely share their financial information with fintech companies without the need to disclose their online banking credentials. Instead, banks will directly transfer the necessary data to the fintechs through a secure online connection. This approach is seen as an alternative to "screen scraping," where a third party accesses a bank account using the customer's login details, posing a significant security risk. Open banking, which has been adopted by 68 countries, aims to facilitate a safer and more innovative financial services environment. While the U.S. laid the legislative groundwork for open banking in 2010, it wasn't until a recent proposal by the Consumer Financial Protection Bureau that steps towards implementation began. Despite the optimistic view on open banking, the experience has shown that it might overstate its benefits without fully negating fraud risks, merely altering the landscape of potential security threats. Read more: https://lnkd.in/gCDK4nCd As we stand on the brink of this innovation, do you think open banking will eventually redefine financial privacy and security, or are we simply shifting the risks to new territories? #openbankingincanada #fintech #screenscraping

Account-to-account consumer bill #payments and transfers totaled $9 trillion in 2023, and continue to grow at a 7% compound annual rate, according to Nacha - the US payments association and governor of the automated clearing house network – driven by consumers’ choice for fast and convenient payment options 👌 In recognition of the tremendous, data-driven changes shaping the industry in just the last few years, Nacha updated the categories for its Preferred Partner Program. Nacha has selected Mastercard* as a Preferred Partners in all partner solutions categories since 2020. And we’re proud to share that we will continue to provide advanced, secure and trusted payment solutions as a Nacha Preferred Partner in three key areas: Risk and Fraud Prevention, as well as new categories Account Validation and Open Banking – solutions that are critical to the future of digital payments 🙌 To learn more about the benefits of being a Nacha Preferred Partner, read the full story here 👉  https://lnkd.in/dbzCgkZT #MastercardOpenBanking *Services provided by Finicity, a Mastercard Company

Fending Off Fraud in Digital Banking #DigitalBanking has become prime hunting ground for fraudsters who perpetrate schemes as diverse — and dynamic — as they are devastating. FIs seem caught in an unyielding vortex, simultaneously battling fraudsters, hemorrhaging money and risking customer trust. Next-generation technologies are taking center stage, promising to rewrite the anti-fraud playbook and flip the script on fraudsters. https://buff.ly/4dc0Kv2 #FinTech #FinServ #Banking

Recent outages at HSBC, Virgin Money, and Nationwide, affecting over 7,000 customers, highlight critical vulnerabilities in banking infrastructure, disrupting online and mobile payments and essential transactions. These failures underscore the urgent need for reliable, resilient digital systems in an increasingly cashless society. #DigitalBanking #PaymentSystems #FinancialStability #BankingInfrastructure #TechInnovation

APAC's Digital Banking Growth Sparks a Surge in Fraud Cases - Fintech News Singapore: ... banking ecosystems in the world. In 2022, 11 out of the 20 profitable digital challenger banks worldwide were based in APAC, suggesting that APAC ...

You may have breached bank T&Cs with using POLi. We are getting too far behind NZ; even our closest neighbour in Australia owing more than 80% market share in the major trading banks, has axed POLi. If you are a Kiwibank client, using internet banking your consumer protection may now be invalid based on one use of this third party payment system. TSB New Zealand and Coop Bank (seemed they can't be tagged), let's be clear with your clients on your position? We either need to do better at protect clients, or just don't let this happen... "POLi’s website does not draw attention to the fact that using its service could represent a breach of your bank’s terms and conditions. Each of the banks who provided a comment for this article warns its customers against using POLi. You could be forgiven for thinking, though, that the banks have endorsed the payment provider, with POLi proudly displaying the banks’ logos on its homepage."

Payments Infrastructure Anatomy 💡 Within the realm of a bank or fintech organization, the payments function plays a crucial role intertwined with various dependencies across different facets of the organization, intricately connected to the underlying infrastructure. 👨💻 Core Banking Core Banking forms the foundation of a financial institution, handling essential banking functions like customer data, KYC data, customer accounts, account deposits, account withdraws, account holds, account balances, transactions and its history. The payments function relies heavily on this core banking infrastructure to facilitate the movement of funds and ensure accurate recording of transactions. Imagine you're making a payment from your bank account to another person. Behind the scenes, the payments function communicates with a core banking to verify your account balance. 🔎 Risk and Limits They ensure that transactions are monitored, evaluated, and managed in accordance with the institution's risk appetite and regulatory requirements. Risk management and compliance play a critical role in payments because payments involve the transfer of money and sensitive financial information, which makes them attractive targets for fraudsters and cybercriminals. 🛡 Financial Crime Prevention As financial transactions flow through the payment infrastructure, they are closely monitored and scrutinized to detect and prevent any potential financial crimes, such as money laundering, fraud, or terrorist financing. We can break down into two subcategories: 🔹 Transaction Monitoring: FCP domain microservices employ sophisticated transaction monitoring systems that analyze payment data in real-time. These systems use advanced algorithms and pattern recognition techniques to identify suspicious activities, unusual transaction patterns, or potential red flags that could indicate illicit financial behavior. 🔹 Know Your Customer (KYC): Payments systems often integrate with KYC processes to gather essential information about customers, such as their identity, source of funds, and transaction history. 💳 Regulatory Compliance Compliance extends beyond anti-money laundering (AML) as financial institutions must adhere to various regulatory bodies to ensure the proper and compliant processing of payments. These regulatory bodies encompass a range of requirements, such as data privacy, consumer protection, sanctions screening, and financial reporting. Compliance teams work diligently to navigate and comply with the diverse regulatory landscape, ensuring that payment processes align with the specific rules and regulations set forth by each governing body. Banks can operate within the legal framework, uphold industry standards, and maintain the integrity and security of the payment ecosystem. Source: The Engineer Banker - https://bit.ly/40Flg2a #Innovation #Fintech #Banking #APIs #Microservices #FinancialServices #CoreBanking #CreditCards #Payments #KYC #AML #Compliance

Truth: In the US, the advanced protocol of Open Banking Payments lies mostly on the old architecture of ACH until real-time payments are more widely adopted. The only way companies like Trustly can make this work for tens of billions of dollars of guaranteed instant payments is by developing a unique risk engine that can flip the disadvantages of old systems into a break-through, fast-growing payment option for merchants. Advanced risk management is table stakes to the journey of #OpenBanking #Payments and here Trustly stands head and shoulders above anyone else in the US - glad they got the shout out they deserve.

Telecom regulator, banks and anti-money laundering to check millions of SIM cards and mobile bank accounts Thailand’s telecom regulator, banks and the Anti-Money Laundering Office, has teamed up to check 106 million mobile numbers and #mobilebanking accounts, to see if the mobile banking user is the same, as the name of the registered #SIMcard/mobile number. If not, the name/registration must be changed, otherwise the mobile banking service will be suspended. This is the latest charade in a line of many to do something about the #scams and #fraudcalls/SMS flooding the country. Here is what they have done so far: - Added a +697 in front of all incoming calls from outside Thailand - also genuine calls - Told consumers to report the number the scammers are using, to the operators - Demanded that companies sending SMS to consumers are using an approved sender ID - Told consumers they cannot have more than 4 mobile numbers - unless special permission - Demanded that consumers re-register their numbers again, if they have more than 4 numbers - Made an app and told people to check themselves if other numbers are registered in their name …and now, demanding that consumers use the same name registered on their SIM for their mobile banking account. But here is the big question: When will the telecom regulator, demand something gets done at the distribution source of these scams - and not from the victims of the scams? It is interesting to see how they are mobilizing the whole population (victims) and have them do the work, but falls short on demanding the few telecom operators to do something at their end. You could almost think, that it has less to do with catching scammers but more to do about surveillance. After all, it is #masssurveillance where the whole population is considered guilty until proven innocent.