‘The growing shift to e-commerce has made online payments big business, as Vantiv’s £9bn deal to buy Worldpay this week shows. Banks are playing catch-up as the leading providers develop other services..’(FT 8.07.17) 2 leading entrepreneurs reflect on the implications of the deal and the future of their own fintech businesses!

As the shift to the digital banking grows, financial institutions are facing new challenges.
Global banking fraud is up 26% (£800m in UK) over the last year and the problem is getting worse as customers continue to move to mobile banking.

Financial institutions are forced to rethink how they approach customers security. How do
financial institutions know that their customers really are who they say they are? How do
regulators make sure that the consumers are protected against security breaches? How do
consumers have high security without trading-off the convenience? These are the driving
questions behind the biggest paradigm shift to the digital world.

The shift is happening now and it requires a new approach to digital identity. The industry has identified biometrics as the primary way of solving these issues however, to succeed, we need to first understand that security is not binary, but based on associated risk and context and, secondly, that there is no single biometric module that solves all of the issues.

Solving this problem is exactly what we are doing at AimBrain, as the leading Biometric
Identity as a Service company – offering banks a multi-module (behavioural, facial and voice) authentication package that can be implemented into any bank channel.

Andrius Sutas
CEO and Co Founder at Aimbrain

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The payments industry is benefitting from a fresh technical stack that is better able to handle the demands of clients without the legacy technology of large banks. Banks have to manage so many product lines and regulatory requirements that it is difficult for them to cope.

At Complyadvantage, we help banks manage their anti-money laundering and terrorist financing obligations by providing compliance data regarding sanctions, political exposure and negative news, in addition to behavioural transaction monitoring. By using the ComplyAdvantage stack for their AML needs, banks are able to manage their technical needs elsewhere.

As such, the Vantiv/Worldpay acquisition is evidence of banks focussing on their core competencies rather than attempting to do everything. Monoline providers of financial services, such as Zopa, Funding Circle, Stripe or other companies are taking market share and universal banks will struggle to do everything well all the time.

Charles Delingpole
Founder at Comply Advantage

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