The Buzz from BAI: Fraud, Mobile and Innovation in Payments
I spent a good portion of my week at the BAI Payments Connect 2013 conference which was held at the Phoenix Convention Center in Arizona. This year the agenda included tracks on Consumer Payments Insights, The Future of Payments Fraud, Payments Innovation and Check Imaging.
With nearly 750 participants, the conference provided the opportunity for the financial community attendees and their vendors to meet, share, socialize, learn and inform.
The vibe I got in the sessions and from the expo floor was that fraud and mobile continue to create the most buzz. Familiar themes of reinforcing fraud strategies like staying ahead of new, emerging threats in the online and mobile banking channels addition to old standbys like check or ATM fraud, sorting out the implications of a mobile society and related loyalty/retention, and understanding how customers want to engage with their banking institutions are all prevalent concerns requiring well-thought strategic plans in order to stay competitive. There was an under-pining sense that fraud managers must stay vigilant to combat fraud and that the lessons learned from online banking fraud have made their way into monitoring mobile banking fraud. It was also apparent that the bankers see the need to work with their customers in the fraud prevention process, think mobile alerting, but they must maintain a balance of communication without being obtrusive.
I found the session on payment hubs rather honest yet insightful. Panelists from 3 major banks gave first-hand accounts on how they have embarked on a payments hub strategy and the success and missteps in their endeavors. The common thread among the panelists was that in order to ensure a consistent client experience across business lines, the goal must be about transforming business not just integrating business. I think we’d all agree that to be innovative we need to have flexible business services that shorten time-to-market efforts. However the panelists shared insight, and agreed, that a phased approach proved better results, meaning don’t take on too much when embarking such a strategic initiative. In fact, the most honest statement I heard from one banker was that when they sat down with their internal subject matter experts, they were surprised at how few people internally could articulate the full end-to-end nature of their payment processes. Turns out, most employees only knew part of the process (normally the part they own), but very few could articulate the whole thing. This resulted in a deep-dive effort to map out all critical components from messaging systems and platforms to clearing and settlement functions to liquidity monitoring and risk management to reporting and client services.
ACI’s Mike Braatz, Senior Vice President and Product Line Manager, Payments Fraud participated in a panel on “Countering the Cyber Fraud Threat” where the layered approach to fraud prevention and detection dominated the conversation. The lively panel discussion discussed the combined merits of front-end authentication, device identification and transaction monitoring. In addition, Mike presented a session with Aite Group entitled “How Your Customers Think About Fraud”. This session laid out key research based on an ACI global survey of 5100 consumers and recommendations for best practices for FI’s for avoiding back of wallet activity for consumers experiencing fraud.
It was good to see the FI’s and vendors in deep dialogue on the expo floor. With more than 70 vendors participating, most attendees were interested in learning about the tools available today to meet the challenges of managing payments fraud and competing in the age of payments innovation and mobile.
The buzz from BAI: Fraud, Mobile and Innovation in Payments by Michael Grillo
Related Blog Posts
How to be a Payments Trailblazer – The Seven Habits of Highly Innovative Organizations
The new Culture of Innovation Index from Ovum and ACI identified segments—from banks to intermediaries to merchants to corporates—at the cutting edge (of innovation) across the payments ecosystem. But what is most notable about those segments that have reached ‘trailblazing’ status is the apparent lack of commonality between them. No one segment, nor one region fosters better innovation. In fact, what’s driving these segments/organizations to be best of breed is their own culture of excellence. The only thing they have in common is their attitude.
Customer Innovation: Erste Bank [Q&A]
The global banking sector is becoming both more strategically focused and technologically advanced, responding to rising consumer expectations while trying to defend market share against an increasing array of competitors. A great deal of emphasis is being placed on digitizing core business processes, and reassessing organizational structures and internal talent to be better prepared for the future of banking.
Regulating for Real-Time: The Role of Government in Payments Modernization
Dr. Leo Lipis and Craig Ramsey, Head of Real-Time Payments for ACI Worldwide, continue their discussion on real-time payments and the findings of the new white paper, Get More from Real-Time.
Issuing and Acquiring in a Real-Time and Open Payments Ecosystem – The Global Picture
Dr Leo Lipis and Craig Ramsey, Head of Real-Time Payments for ACI Worldwide, continue their discussion on real-time payments, stemming from the findings of the new white paper, Get More from Real-Time. See part one.
Four Questions to Drive Your Retail Banking Payments Strategy in 2019
I keep hearing that it’s “an exciting time to be in payments,” and I certainly agree that there is a lot of noise. However, when I look below the surface, I’d argue that the interesting activity is not with the payment itself, but with all the related events and steps in the value chain.
What Can the Re-Regulation of Other Industries Tell Us About Open Banking One Year On?
UK Open Banking just reached its first birthday milestone (on January 13 to be precise) and given my own commentary – including in the ACI blog – on this topic, the first anniversary of Open Banking in the UK certainly won’t pass without a debrief on the progress that’s been made and what challenges lie ahead.
Instant Payments in Italy – And Beyond: Lessons from Il Salone dei Pagamenti
ACI was invited back to Il Salone dei Pagamenti – Italy’s premier payments event organized by the Italian Banking Association (ABI) – to participate in a panel, “SEPA Inst – the Future.” As expected, the session was packed with stats and advice for a more efficient roll out of instant payments – in Italy and beyond.
To Regulate Or Not To Regulate – Is That Thy Question?
Debates are healthy, and as someone who spent a little time during my college years dabbling around the edges of the speech and debate team, I can tell you it’s something that I personally relish. A chance to really talk through the pros and cons of an argument and lay out the bare facts… and then be judged based not only on those facts, but on the presentation and power of persuasion—sign me up!
Request for Pay – What Does It Mean For Financial Institutions?
What do banks – one with $60B+ in assets, one a mid-size regional bank, and one, a small innovative credit union – have in common with payment networks and the ‘Big 4’ consulting firms? They were all part of the first ACI #PaymentsForBreakfast event in North America! The theme was real-time payments, but the focus was more specifically on Request for Pay.
Why Open Banking Might Need to Rely on a Magic Illusion of 24x7 Availability
The adage “the more things change, the more they stay the same” appears to ring true when applied to the early phases of the evolution of open banking (or open payments). Especially when you contrast it with the early days of ATM withdrawals; particularly those made in the dead of night so you could pay cash for your after-party greasy feast.