Autorenname: fiserconsulting

Will Cathcart, Facebook’s global head, has announced WhatsApp Pay. WhatsApp Pay is a payments system that is going to make it easy to make payments through WhatsApp; it will be just as easy as sending a photo or file. You just simply link your bank account to your mobile number to  use the messaging application to transfer or receive money. The messaging app has over 400 million users in India and 1.5 billion globally, which is why its first launch will take place in India. Currently, WhatsApp has been permitted to test its small-value transactions by India’s National Payments Corporation. If tests go well, the UPI standardized payments provider could potentially roll out its features to other international markets. Sources: click here and here.

Adyen has launched a new alternative service for card transactions under the Payment Service Directive (PSD2). Similar to the current process, the offering requires banks to create APIs for approved third parties in order to initiate payments on the consumer’s side. The platform’s latest service is going to launch in the UK, while there is a chance other European markets will also follow the trend. The solution works similar to current online banking methods: customers select the payment type at the checkout, after which they are redirected to their bank’s online banking environment to confirm the payment. The specific banking environment then puts forward the customer’s preferred method of authentication (i.e. Face ID, Touch ID) enabling direct authorization between the shopper and the merchant, while Adyen handles the payment flow as a recognized third party. The Open Banking offering makes Adyen the first provider to offer multiple payment options in a secure environment. Shortly after the roll-out in the UK market, other parties have shown great interest in the solution and are preparing a roll-out of the offering. Click here for the original article.

In order to prevent money laundering and terrorism financing, Dutch Financial Authorities have decided to plan a licensing scheme for crypto exchanges. This decision stems from a report that was published by the nation’s central bank, De Nederlandsche Bank (DNB), and the AFM which is the Dutch Authority for the Financial Markets. The report concludes that cryptocurrencies carry high financial crime risks and that they, therefore, need licensed solution providers. Both DNB as the AFM prefer a licensing regime over a registration system because it allows a pre-market entry assessment that informs the parties involved if they comply with the AMLD5 rules, while a registration regime only allows a limited assessment. In the report, both Dutch financial parties have also concluded that the EU regulatory framework for corporate funding should be altered to enable a blockchain-based development of small-and-medium-sized enterprises (SMEs). Apart from that, the report also mentions reconciling the national definition of security, aiming to bring new forms of corporate funding in European legislation, such as initial coin offerings (ICOs) and security token offerings (STOs). Click here for the original article.

On Monday January 14th, 2019 the Group Central Bank Governors and Heads of Superivison (GHOS) have endorsed a couple of revisions to the market risk framework and the Committee’s strategic priorities and work programme for 2019. Revisions to the market risk frameworkThe revisions apply to the design and calibration of the market risk framework. Changes include: An introduction of a simplified standardised approach for banks with small or non-complex trading portfolios; A clarification of the exposure scopes which are subject to market risk capital requirements; A revision of the treatment of foreign exchange risk in order to enhance the risk sensitivity of the standardised approach; A review of the assessment process to determine whether a bank’s internal risk management models appropriately reflect the risks of individual trading desks; and A revision of risk factor requirements for internal modeling The above revisions were concluded from the Committee’s quantitative impact analyses. The revised framework is estimated to result in a weighted average increase of about 22% in contrast to the 2016 framework (weighted average increase of approximately 40%). The updated market risk framework is set to be effective as of January 1st, 2022, which is concurrent with the implementation of the Basel III reforms (endorsed by GHOS in 2017). Revisions to the 2019 work programmeAnother endorsement by GHOS applies to the Committee’s strategic priorities and work programme for 2019. The work programme focuses around four key areas including (1) the finalization of ongoing policy reforms, (2) the evaluation of the impact of post-crisis reforms and emerging risks, (3) the promotion of strong supervision and (4) ensuring full and consistent implementation to the post-crisis reforms. The main focus lies on evaluating the post-crisis reforms and to assess new emerging vulnerabilities in the banking system. Click here to read the original article.  

On October 17th, 2018, the global provider of secure financial messaging services (SWIFT) has published a white paper on the evolution of the European payments landscape. The paper discusses how change in wholesale and retail payments across the world is on its way and that it has set a clear path for financial market infrastructure renewal in Europe, and more specifically the Eurosystem. Taken into account regulations such as PSD2, a period of radical transformations are rapidly making its way to spread across Europe. The paper also elaborates on change drivers in the payments sector on both global and European levels, as it also outlines challenges and opportunities for incumbents in terms of digitisation, technology and strict regulators. The official press release on the payments transformation in Europe can be found here.

On July 19th, 2018 the European Banking Authority (EBA) has published its final revised Guidelines which aim to further enhance institutions’ supervisory review and examination process (SREP). The Guidelines focus on stress testing which will be used in setting Pillar 2 capital guidance (P2G), as well as interest rate risk in the banking book (IRRRBB). The publication also includes: A final report on the Guidelines on the revised common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing. Revised final Guidelines on the management of interest rate risk arising from non-trading activities (IRRBB guidelines). The revised Guidelines reflect on developments in the Basel Committee on Banking Supervision (BCBS) and clarify internal and supervisory outlier tests requirements during the first phase of implementing the Basel standards. Final Guidelines on institution’s stress testing. The publication shows that the guidelines reflect industry practices and the incorporation of recovery planning. They provide detailed guidance on the way institutions should design and conduct a stress testing programme.

On 10 April 2018, 22 member states of the European Union signed a Declaration on the establishment of an European Blockchain Partnership. The Partnership will contribute to the creation of an enabling environment and should ensure that Europe continues to play a leading role in the development and roll-out of blockchain technologies. For more information click here.