Sunday, 22 April 2018

POST Open but asymmetric warfare

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In a speech on Tuesday, Karina McTeague, director of retail banking supervision at the Financial Conduct Authority (FCA), said that while banks must be aware of their legal obligations in respect of data protection and consumer protection, and help customers protect themselves from the risks of fraud, they must present balanced information to customers in relation to regulated third party services available under the PSD2 regime. "Banks and building societies should allow their customers to make use of AIS and PIS in relation to those payment accounts without penalty, including allowing their customers to share their credentials,"

From PSD2: banks must not warn customers against using regulated third parties.

 

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I can’t help but feel that the major beneficiaries of the regulators pressure to open up the banks will not be nimble fintech startups but the internet giants who already have the customer relationships.

From Open Banking Revolution | Consult Hyperion.

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This asymmetry isn’t even theoretical. Last year the UK insurer Admiral created an interesting scheme to allow people with limited credit histories access to insurance products using social media data. A social media profile is quite hard to fake if you know what you’re looking for – the strength of links to other real profiles and the depth of data mean that really faking a profile is really hard to do.

Admiral’s idea was that if people were willing to grant them access to this data they could perform a form of social identification and verification with an element of personality checking to identify people with traits conducive to good driving. You might think this invasive but if you’re a careful 18 year old then getting your insurance bill reduced by thousands of pounds might be worth giving up access for, at least temporarily.

To cut a very long story short the trial ended when Facebook blocked Admiral getting access to the data: https://www.theguardian.com/money/2016/nov/02/facebook-admiral-car-insurance-privacy-data

From On Facebook, Open APIs and User Consent | Consult Hyperion.

 

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Saturday, 21 April 2018

BBC Radio 4 - Money Box, Teenage money mules. What happens when you get found out?

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Money Box reporter Marie Keyworth spoke to 17 year old 'Holly' who was approached on social media to 'lend' her bank account to a stranger. The teenager was challenged by her bank, her account closed down and a warning flag put against her name.

From BBC Radio 4 - Money Box, Teenage money mules. What happens when you get found out?.

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“You don’t realise how much you need a bank account until you can’t get one"

AI in banking: the reality behind the hype

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As a group, banks all agree that AI is important, but their strategies for using it vary wildly. One European bank that took part in the survey told the FT it had 500-800 people working on AI; Nordea, of Sweden, generally believed to be one of the world’s most technologically advanced banks, says it has just 25.

From AI in banking: the reality behind the hype.

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Monday, 16 April 2018

Institutional Crypto Terms | FinTech Rising

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“It’s the tokenization of the asset that’s the revolution,” said Dave Birch, director of innovation, Consult Hyperion, a London-area consultancy that specializes in secure transactions. Birch interviewed corporate venture-capital manager Jonathan Larsen at Money20/20 Asia.

“Tokenization is a really massive trend,” Larsen said. “That’s a much bigger story that cryptocurrencies, initial coin offerings (ICOs), and even blockchain.”

Larsen is chief innovation officer of Ping An Group and head of the Ping An Global Voyager Fund. Ping An is a Chinese financial-services holding group based in Shenzhen.

“I have no doubt about the opportunities (of tokenization) to reduce friction across every asset class and to create fractionalization of assets where it does not exist today,” he said. Fractionalization refers to the ability to, for instance, partition the equity you own in a home and use the resulting token to sell that equity as a tradable asset.

“That means if you own a home and if you could use tokens to express the equity in your home, you could sell that equity or use it as collateral in a much easier way than our current paper-based processes,” Larsen explained. As another example, aggregate insurance risks could also be traded more easily and broadly than through the traditional reinsurance companies that cover those risks for insurers.

“We can create transparency and universal access and the ability to reduce frictional costs,” Larsen said. “Tokenization is at the core.”

“It leads to more efficient and liquid markets,” Birch said.

Asset-backed crypto-tokens The difference to understand between tokens and ICOs is that tokens are based on verifiable assets. ICOs are the sale of tokens representing an ownership stake in a firm or application—investment offerings for all practical purposes and likely to be regulated as such by U.S. securities regulators.

“ICOs are tokens minus the assets,” quipped Larsen. “Where we are going is tokens with assets and solving the problems of friction (in markets). . . . ICOs are the training wheels for the token economy.”

From Institutional Crypto Terms | FinTech Rising.

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PSD2: banks must not warn customers against using regulated third parties

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"Banks and building societies should allow their customers to make use of AIS and PIS in relation to those payment accounts without penalty, including allowing their customers to share their credentials," McTeague said. "Their customer communications should be balanced, and not seek to dissuade customers from using third party AIS or PIS providers through their communications or terms and conditions."

From PSD2: banks must not warn customers against using regulated third parties.

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Tuesday, 10 April 2018

Car thieves target middle-class areas, data reveals, as police warn drivers to invest in a steering wheel lock

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Mr Silvester also warned owners to be careful when handing their fob over to valet parking services or car washes, as keys can be cloned "in seconds", allowing thieves to take the car at a later date without any external signs of damage.

From Car thieves target middle-class areas, data reveals, as police warn drivers to invest in a steering wheel lock.

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Monday, 9 April 2018

Gov’t-Issued Digital Currencies Threaten Financial Stability, Says Swiss Central Banker

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"According to Swiss National Bank (SNB) governing board member Andréa Maechler, private-sector digital currencies are better and less risky than nationally-issued versions."

From "Gov’t-Issued Digital Currencies Threaten Financial Stability, Says Swiss Central Banker".

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