21 October 2016
Below are our top reads from the last seven days of industry news*. Every Friday we'll publish our picks from industry developments, stories and announcements right here so you can keep you up to date with what's happening in payments here and overseas.
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Consultation on retail payments begins
Commerce and Consumer Affairs Minister Paul Goldsmith released an issues paper this week on retail payment systems for public consultation. The issues paper is designed to get a better understanding of how retail payments operate in NZ with regard to innovation and efficiency. It also looks at whether costs are being fairly distributed between banks, businesses, and consumers. The consultation runs until 13 December 2016.
APIs becoming increasingly important for banks
ANZ Australia has announced its opened up its mainframe and two banking systems to approximately 20 new APIs as a way of getting around replacing its legacy systems. The bank has also signed a deal with IBM, worth AU$450 million, which covers a range of projects, including introducing common digital banking platforms across ANZ’s worldwide network. According to a survey in 2015 by Open Bank Project, 62% of respondents said corporate culture held back developments of open API projects. That number climbed to 69% in 2016 despite an increase in the percentage of banks launching API initiatives.
The future of banking could be invisible
KPMG believe that the bank of the future will be invisible. Personal assistants similar to Apple’s Siri will use data analytics, voice authentication, AI, connected devices, APIs and cloud technology to serve customers. In this vision, banking is woven into the consumers’ life, transferring and spending money throughout the day based on data. Payments and banking commentator Chris Skinner believes that banks could become a faceless supplier, similar to electricity companies, if they don’t find ways to add value in a world governed by the Internet of Things.
Chinese cross-border e-commerce presents huge opportunity for SMEs
China’s appetite for global goods continues to grow. A quarter of China’s population could be shopping on foreign websites, either directly or through third parties by 2020, which has led to a rising demand for companies that enable cross-border trade. New Zealand-based LATIPAY is one such company, connecting commerce between NZ and China, and Leigh Flounders their CEO will be explaining how they do that next month at The Point 2016.
The mobile wallet: Through the lens of Maslow’s Hierarchy of Needs
Banking Innovation has taken Maslow’s Hierarchy of Needs and adapted it for mobile wallets. With the most important need being wallet availability. That is then followed by merchant acceptance, security, and lastly value. They reckon, understanding how to move through these different needs could help providers understand what they need to do to grow mobile wallet adoption.
*These articles cover a range of topics from broad payments industry news here and overseas. They do not represent the views of Payments NZ and are not endorsements.