Patrick McConnell’s Post

"Data is central to future regulation" - Today's Financial Conduct Authority speech is worth 10 minutes of your time. It's also worth comparing how the key UK sector regulators are talking about adapting their current regulatory approaches to changing #technology, consumer expectations and #digital risks. How #regulation keeps up with every faster #technology is something we're thinking carefully about. Would be interested in any regulatory initiatives as people wanted to call out as especially farsighted!

The World Bank has recently issued a study named "Project FASTT" which stands for Frictionless Affordable Safe Timely Transactions. Here are the salient background points: - The global real-time payment market is expected to grow at a compound annual growth rate of 35.5% from 2023 to 2030 - The major end-user advantages of fast payments are convenience, speed, and cost. - The clearest benefit of fast payments from an end user’s perspective is the ability to complete payments quickly, wherever and whenever necessary, providing almost immediate access to funds. - The direct savings in cost and time are usually significant.  - Domestic payment systems have upgraded low-value retail infrastructure and arrangements to enhance access and accelerate payment cycles. - As of June 2023, according to World Bank research, about 100 jurisdictions already had a live FPS. - Reforms are being introduced in some markets to facilitate and properly regulate the role of new payment services and service providers, such as for innovative payment initiation (for instance, in the European Union), and to evolve the role of payment wallets or e-money accounts in the broader ecosystem. #fasterpayments #p2p #rtp #crossborderpayments #b2bpayments #bnpl #embeddedfinance #openbanking #cbdc Bill & Melinda Gates Foundation

In this article, we delve into the need for adaptation and innovation within these payment ecosystems to cater to the ever-changing demands of today's consumers.

🚀 Breaking Barriers in Payment Tech! How does the UK redefine financial transactions in the digital era? Dive into the groundbreaking insights from the "Future of Payment Review." #InnovationAhead 🔍 Dive into a realm where innovation meets necessity, where every click, swipe, and tap reshapes the economic landscape. The UK's journey in creating a world-class payment environment demonstrates not just the power of technology but the potential of visionary thinking. 🔑 #openbanking isn't just a concept, it's a revolution in the making, promising to transform how we think about personal and retail finance. 🛒 From the convenience of #taptopay to the sophistication of digital #wallets, the UK is not just participating in the payment evolution; it’s leading it. ❗ Yet, the path to progress is lined with challenges. High costs for merchants and the need for more digital payment alternatives are just the tip of the iceberg. But where there are challenges, there are opportunities. 👏 Kudos to Joe Garner and the numerous organizations driving this remarkable exploration into the future of payments! Jas Shah, Accenture, Baringa, EY Technology Solutions, FINTECH Circle

The National Payments Vision for FinTech ⭐ We have submitted our input to HM Treasury as part of its work on developing a National Payments Vision (NPV), which is due to be published by the summer. We outline why the NPV needs to set out an ambitious agenda to help deliver the next generation of payment experiences for merchants and consumers, building on the successful innovation and competition that FinTech has helped bring about. The UK should be the world leader in digital wallet payments, with a digital payments ecosystem that supports and enables a diversity of payment methods and providers, underpinned by competition where the consumer has choice and control and can easily use different payment systems, methods and providers with ease and with confidence in an equivalent level of consumer protection. This trusted, competitive, digital, interoperable ecosystem can enable: - Improved productivity for UK merchants and businesses - Better outcomes for customers and citizens  - Increased  growth and inward investment for the UK payments industry  - Greater strategic autonomy and resilience for the UK economy and society   Our paper examines FinTech’s role in the payments landscape, how the government can implement, deliver and review the NPV’s progress, and key aims that the NPV should include to support the FinTech sector, such as: ⚙️ Account to Account payment method: The NPV should prioritise the development of a new major payment method to compete with card payments, powered by Open Banking.  📜 Regulatory support for innovation and competition: Deliver a regulatory framework that allows different digital payment methods to compete on a level playing field. 🏗️ National Payments Architecture (NPA): A recommitment to deliver NPA and its strategic objectives, with a clear roadmap and timeline for implementation, and an ambition that is cloud-native. 🌍 Interoperability: The NPV should set out a roadmap for working towards interoperable payment systems, domestically and globally. See link to the report 👉 https://lnkd.in/eAinjhYg #FinTech #InnovateFinance #DigitalPayments #FutureofPaymentsReview #NationalPaymentsVision #Paymentstrategy #UKFinTech #Payments Paul Worthington | Adam Jackson | Jago Corry

New article in the Journal of Economics and Statistics (Jahrbücher für Nationalökonomie und Statistik): Simulating the Adoption of a Retail CBDC, co-authored with Kimmo Soramäki and José Fernando Moreno Gutiérrez. Abstract: We use agent-based modelling to build a digital twin of the retail payment system on the FNA Platform, where heterogeneous consumers and merchants interact, learn, and adapt as they meet and use different monies and payment instruments. As we introduce an rCBDC, the model simulates its adoption. We calibrate this digital twin to Spain’s retail payment ecosystem. We run hypothetical scenarios that correspond to public discussions about the digital euro. Results show that introducing an rCBDC without attractive design options and stimulus results in low and slow adoption. Results suggest that the reverse waterfall functionality, a positive remuneration spread, and the distribution of government subsidies via rCBDC are effective in fostering adoption; yet, the distribution of government subsidies via rCBDC is the only one that creates incentives to reduce the use of cash. Balance limits and top-up limits are effective in restraining adoption. Results also suggest that combining design options and stimulus with limits to holding rCBDCs could aid in achieving a sweet spot of adoption. The article is available Open Access: https://lnkd.in/eDFpKK3K

🚀 Exciting News in the FinTech Industry! 🚀 Are FinTechs Ready for the New UK Consumer Duty? 🤔📈 💼 I'm thrilled to share this insightful post from Sifted, shedding light on the latest developments in the UK FinTech landscape. 🇬🇧 📰 Article Link: https://lnkd.in/egJp3F3j The UK's financial services sector is evolving, and with it comes the new Consumer Duty. 💼 As we dive into the details, this regulatory shift demands a closer look at how FinTech companies are adapting to meet the heightened expectations of consumers. 💡 🧐 The article raises pertinent questions about the readiness of FinTech firms to comply with the Consumer Duty. It explores the implications of this new regulation on the industry's operations, customer experience, and overall growth potential. 📈 #FintechHubEurope #FinTechNews #ConsumerDuty #UKFinance #RegulatoryShift #Innovation #TechInFinance #FinancialServices #CustomerExperience

🚀 How EPI, Europe’s answer to FedNow, could spark new competition https://lnkd.in/eVemGRQa 🤝 We had the privilege of sitting down with Thomas Müller from Rivero AG to discuss the potential impact of the European Payments Initiative (EPI) on the dynamic payments landscape. 🔍 Uncover key discussions: 1️⃣ Empowering Choice: Discover how EPI's instant payments scheme might revolutionize consumer options, providing more control and flexibility in the way transactions are made. 2️⃣ A Competitive Compliance Edge: Delve into the intriguing intersection of EPI and compliance. Could this innovative initiative give European businesses a competitive edge in navigating complex regulatory environments? 🔗 Click the link to gain insights that could help shape the future of payments in Europe. Don't miss out! 👉 https://lnkd.in/eVemGRQa   #EPI #EuropeanPayments #InstantPayments #FinancialInnovation #Blog

From the sandy shores of The Bahamas to the bustling markets of Jamaica and the cultural hubs of Trinidad and Tobago, innovative digital payment options have emerged, transforming the way transactions unfold in these tropical paradises. This article ventures into the heart of this transformation, exploring five remarkable digital payment providers that have become the bedrock of modern financial interactions in the Caribbean.

Change Change Change “A new Guide to Payment Regulations has been released, offering insights into the regulatory frameworks and licensing schemes for payments and e-money services across eight key Asian markets. The guide, a collaborative effort between Standard Chartered and Allen & Overy, aims to assist both corporates and fintech companies in navigating the complexities of the ever-changing payments landscape. The publication provides a concise overview of market-specific regulations and addresses common challenges that businesses may encounter, such as the applicability of licensing requirements for B2B eCommerce platforms. The financial services industry is undergoing significant changes, particularly in the payments sector. Technological advancements and the rise of fintechs are leading to frequent updates in regulations to maintain a secure financial ecosystem.”