Money20/20 Europe, the world’s largest FinTech event, landed in Copenhagen in April 2016.This time round, it focused on how innovation is helping the payments industry keep up with consumer shopping and banking demands.
We asked Max Excell, GBG’s Head of Payments, what was creating the most buzz at the event.
Growth in online fraud outpaced the rate of growth in online commerce last year
This really caught our attention.
Cap Gemini and IMRG estimate that online fraud rose approximately 18% last year, while e-commerce in general grew at around 15%.
We believe this is being driven by new innovations on both sides of the fence – faster payment processes requiring little data to be shared and wider sharing of personal data on things like social media. There are robust measures businesses can take to protect themselves but retailers need to step up to the challenge of keeping up with new trends and technologies, especially in the field of payments.
Banking is coming to the unbanked
Financial inclusion was a hot topic. Innovation is opening up vast new markets. Companies such as M-Pesa are leading the way in bringing mobile payments to previously cash-dependent communities such as the one billion people who live in Sub-Saharan Africa. In fact, these global citizens are 60 times more likely to have access to a mobile payments account than their European counterparts.
Collaboration is key
Vast numbers of agile new start-ups jostle for room in the financial space, providing challenger brands to our existing banking infrastructure. Meanwhile, consumer mistrust lingers on from the financial crisis. It’s no surprise that discussions focused on how traditional organisations can collaborate with the start-ups that they once saw as a threat.
Customers come first
Most financial institutions – especially the newer disrupters – recognise that seamless processes mean putting customers at planning’s heart. Key pointers were:
- Make sure you can accommodate interactions across multiple channels. Omnichannel banking customers gave a loyalty score 16 percentage points higher than those who only use digital channels – and 22 percentage points higher than those who only interact via a traditional, physical channel such as a branch or call centre. It is vital to understand how customers interact with you, and recognise them regardless.
- If you have to do it, automate it. Customers want to self-serve, not take part in a cumbersome paper chase.
- Ensure you recognise your customer wherever they engage with you, including via social media. Customers know what technology can deliver in terms of a better experience, and their experience when making payments has to be as slick as any they have with online retailers or over social networks.