05 June 2015
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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Banking on a digital future
Like accessing your money online? You’re not alone, as digital banking has become a universal, irreversible trend. The massive shift to online shopping was the first clue, followed swiftly by paying bills, trading stocks and a myriad of other online activities. According to FinanceAsia, the digital revolution will best serve those who embrace change and lead with digital, especially in Asia’s fast-growing and emerging markets.
Customers still have “analogue hearts” despite a digital world
Though the digital world is taking off, bricks and mortar banks are here to stay. Westpac is happily investing in new physical branches claiming that many customers still rely on a friendly face in their interactions with their bank. The key is choice: give consumers every option and you will find they will use them all.
Banking with Millennials 101
TechCrunch notes that few industries will face a greater struggle targeting Gen Y consumers than banks, as millennials continue to break every rule. As hundreds of start-ups (mostly born from the minds of millennials) provide new ways to bank and do business, traditional banks are staying put - but how the banks respond to the changing financial desires, and life goals of millennials may determine their future.
Pinterest moves into payments
Busy pinning away and see a product you have to have? New Pinterest “buyable pins” will allow you to instantly buy it - it’s that easy. For added security, Pinterest is working with partners to make sure they never touch credit card information.
Wearables shaping our world
Payments industry players are exploring wearables as part of their future planning. As consumers engage more with devices they can attach to their bodies, the question for banks and service providers is how they leverage the shift.
Culture causing trust issues?
The issue of trust in banking has been a hot topic recently and commentators and regulators alike have come together to decide that any dodgy bank behaviour is ultimately the result of corporate culture. Internally, that’s manageable, but it’s a much bigger challenge to manage culture in deregulated spaces, which are becoming more common. See what ANZ thinks about it.
MYOB buys (another) Kiwi company
MYOB has acquired New Zealand’s own Ace Payroll Plus for a cool $14 mil, making their new payments team “the most experienced and most popular provider of payroll solutions in New Zealand”, according to MYOB SME solutions manager James Scollay. This is MYOB's third New Zealand acquisition in as many years: must be the Kiwi ingenuity that keeps them coming back.
Is he the most powerful central banker?
One of the Reserve Bank Governor Graeme Wheeler’s former top advisers claims the central banker “has more control over his territory than any counterpart in the advanced world.”
Bitcoin ready to be taken seriously
In December 2014, the value of a bitcoin had fallen more than 56% since January of the same year, beating out the Russian ruble and the Ukrainian hryvnia for the title of worst performing currency of 2014. But Xapo’s recent announcement has signalled that Wall Street is taking bitcoin seriously, which may surprise those who have followed the electronic currency's “decline”.
New rules to stop predatory practices
A new era in consumer lending will start from 6 June according to Minister Goldsmith, who is welcoming new rules that will better protect borrowers. The Credit Contracts and Consumer Finance Amendment Act’s goal is not to impose unnecessary compliance costs on lenders who are already lending responsibly, but rather provide additional protection from lenders who engage in predatory practices.