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Strategic account planning is a systematic approach to boosting success in acquiring, retaining, and expanding crucial accounts, ultimately maximizing long-term revenue.

It entails evaluating the business requirements, objectives, and organizational structure of an account. The goal is to ensure that the delivery of your product or service aligns with and exceeds the expectations of key accounts.

In this article, we'll explore the intricacies of crafting an account plan using a purpose-built template to streamline a comprehensive analysis.

Leveraging the Power of an Account Planning Template

The cornerstone of an effective strategy resides in the meticulous design of an account planning template. Serving as a guiding framework, this tool ensures a systematic organization of information, safeguarding against the inadvertent omission of crucial details. 

While templates may differ, a comprehensive one typically includes sections exploring vital aspects like the customer's business strategy, initiatives, and organizational structure. It also encompasses elements such as product and revenue audits and competitive analysis, as noted by Prolifiq.

This structured approach provides a holistic view, equipping businesses with a strategic roadmap for cultivating and sustaining successful client relationships.

Unraveling the Layers of the Customer's Business Strategy

Before diving into the intricacies, it is crucial to establish a solid understanding of the customer's overarching business strategy. This foundational step involves comprehending their long-term goals, identifying target markets, and grasping their unique value proposition. This not only lays the groundwork for strategic alignment but also positions your offerings to resonate with their overarching vision. 

The importance of strategic alignment is emphasized by Forbes statistics, revealing that a modest 5% boost in customer retention can result in significant profit growth. This growth, ranging from 25% to 95% over time, underscores the substantial impact of aligning with a customer's business strategy on long-term financial success.

Deciphering the Key Business Initiatives

Understanding the customer's key initiatives is essential for customizing your products or services to meet their unique needs. This involves uncovering their short-term and long-term projects, as well as addressing any prevailing challenges. Such nuanced comprehension empowers you to position your offerings as tailored solutions that directly contribute to their overarching success. 

McKinsey's findings further underscore the evolving consumer landscape. Amid the COVID-19 pandemic, three-quarters of customers have transitioned to new stores, products, or buying methods, challenging the traditional notions of loyalty. 

In response, McKinsey emphasizes the increasing importance of personalization for customer retention. Research reveals that 71% of consumers now expect personalized interactions, with 76% expressing frustration when this expectation goes unmet.

Navigating the Organizational Chart and Identifying Key Players

Recognizing the paramount importance of extracting greater returns from key accounts, Gartner highlights that 70% of Chief Sales Officers (CSOs) prioritize this objective. To achieve this goal, it is imperative to possess a thorough understanding of the organizational structure. 

Effectively communicating and collaborating necessitates the identification of key decision-makers, influencers, and stakeholders within the client's organization. 

With this knowledge in hand, you can customize your communication and engagement strategies to align seamlessly with the nuanced dynamics of decision-making. This tailored approach enhances effectiveness and fosters more meaningful collaborations.

Scrutinizing Products and Revenue Streams

The provision of valuable insights and recommendations hinges upon a comprehensive audit of your customer's products and revenue streams. A deep dive into their product portfolio, pricing strategies, and diverse revenue sources is essential. 

This analytical approach not only allows for the identification of potential growth areas but also enables the pinpointing of strategic priorities. Embracing this proactive stance ensures that your company remains agile and responsive to the ever-changing landscape of business demands. 

Nevertheless, the journey of adaptation is undeniably challenging, as underscored by Forbes. They report that a staggering 85% of companies express that their organization's ability to navigate change often falls short. This underscores the ongoing struggle many businesses face in meeting the dynamic nature of the business environment.

Delving into Competitive Analysis

A comprehensive account plan goes beyond internal considerations and includes a meticulous assessment of the customer's competitive landscape. This involves identifying primary competitors, conducting a detailed analysis of their strengths and weaknesses, and critically evaluating how your products or services compare. 

The insights derived from this process provide a strategic advantage, enabling you to position your offerings effectively in the market. 

In summary, the art of structuring an account plan involves a strategic process that demands careful consideration of various facets of your customer's business. This comprehensive approach guarantees a profound understanding of the client's needs, goals, and challenges. Simultaneously, it forms the bedrock for cultivating stronger and more meaningful relationships.

Aligning strategies with the client's vision and leveraging organized account planning positions you as an indispensable partner in their success journey.

What is a signature loan and what are its benefits over other types of loans available to consumers?

A signature loan is a type of unsecured personal loan that does not require collateral. This means that you do not have to put up any assets, such as your home or car, in order to secure the loan. Signature loans are typically smaller than other types of loans, such as mortgages and auto loans, and have shorter repayment terms. Signature loans also tend to have lower interest rates than credit cards.

There are several benefits to taking out a signature loan

How does the process work? Do you need good credit or can anyone apply?

Signature loans are unsecured, which means that they do not require collateral. This makes them a good option for people with bad credit, as they may not be able to qualify for other types of loans. The application process for a signature loan is typically much simpler than that of other types of loans. You will likely just need to provide some basic information, such as your name, address, and Social Security number.

In order to get the best rate possible on a signature loan, it is important to have good credit. Lenders will use your credit score to determine whether or not you are a good candidate for a loan and what interest rate to offer you. If you have bad credit, you may still be able to qualify for a signature loan, but you will likely have to pay a higher interest rate.

How much money can you borrow and for how long?

No credit check signature loans are available in amounts from $100 to $5000. The repayment terms vary depending on the amount you borrow, but they typically range from two weeks to four months.

If you need a longer repayment period, you may want to consider a personal loan from Payday Champion. Personal loans have repayment terms of up to five years, so you can spread out the payments over a longer period of time.

What happens if you can't repay the loan on time?

If you are unable to repay your signature loan on time, you may be charged late fees. In addition, your lender may report the late payment to the credit bureaus, which could damage your credit score. If you think you will be unable to make a payment, it is important to contact your lender as soon as possible to discuss your options.

Mirek Saunders, who manages an online payday loan website, suggests that "A signature loan can be a great tool to help you consolidate debt, make a large purchase, or cover an unexpected expense. But as with any loan, it is important to understand the terms and conditions before you agree to borrow money."

The news comes after recent debacle surrounding the collapse of London Capital & Finance. The ban, set to be introduced on 1 January, will comes just as consultancies and financial managers encourage clients to place money into ISAs before the end of the tax year.

Currently, various mini-bonds have ISA status and would therefore be included in said advice, however the FCA believes many consumers may not have the expertise required to understand and therefore appropriately evaluate the risks involved in certain mini-bonds.

According to reports the ban will exclude mini-bonds that raise capital for individual companies or properties.

The intervention comes in regard of the recent administration of London Capital & Finance, whereby over 11,000 customers were left in debt and at a loss when the financial management firm collapsed after peddling 6.5% to 8% yearly returns on mini-bonds.

Subsequently, the FCA was under immediate scrutiny and was heavily criticised for not taking action when warned about the firm’s operations three years prior.

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Both the FCA and LC&F are now under investigation by a leading high court judge, Dame Elizabeth Gloster, and the SFO respectively.

Andrew Bailey, Chief Executive of the FCA said: “We remain concerned at the scope for promotion of mini-bonds to retail investors who do not have the experience to assess and manage the risks involved. This risk is heightened by the arrival of the ISA season at the end of the tax year, since it is quite common for mini-bonds to have ISA status, or to claim such even though they do not have the status.

“In view of this risk, we have decided to complement our substantial existing actions with a further measure which will involve a ban on the promotion and mass marketing of speculative mini-bonds to retail consumers. We believe this will enable us to further consumer protection consistent with our regulatory principles and the FCA Mission.”

A press release from the FCA has also stated: “The FCA ban will mean that unlisted speculative mini-bonds can only be promoted to investors that firms know are sophisticated or high net worth. Marketing material produced or approved by an authorised firm will also have to include a specific risk warning and disclose any costs or payments to third parties that are deducted from the money raised from investors.”

What does SCA mean for consumers?

According to a survey by Avira, 30% of consumers worry whilst shopping online, and 22% only use well-known e-commerce sites in fear of being a target of bad actors. That added layer of security on online payments will enable these consumers to feel more confident when processing payments over £28 online, as the authentication checks i.e. biometrics such as fingerprint or facial recognition are far more secure. Indeed, consumers will benefit in a variety of ways from the enforcement of SCA: purchasing processes will become easier, there will be more choice of financial providers (and consequently methods of payment) and there will ultimately be a reduced risk of fraud.

There will be an extra step in the payment checkout process, where customers will have to use biometric authentication or codes to approve the payment, but this should be a seamless experience and not deter consumers from shopping online. According to a recent survey, 48% of consumers have already authenticated a payment using biometrics; and 61% believe using biometrics is a much quicker and more efficient way of paying for goods or services than traditional payment methods using only passwords[1].

SCA deadline extension

In an increasingly digital age and with the high rates of cybercrime and identity fraud, financial institutions and payment providers need to apply these regulatory rules in order to provide the highest level of security for their customers. According to Action Fraud, £34.6m was stolen from innocent victims between April and September in 2018, a 24% increase on the previous six months[2]. Despite reports that more than £190,000 a day is lost in the UK by victims of cyber-crime, the Financial Conduct Authority, a financial regulatory body in the UK, has granted an 18-month long extension for the enforcement of SCA[3]. The Financial Supervision Authority (FSA), the authority for overseeing banking and payment services in Poland has also followed suit and confirmed on the 19th August that they will delay the enforcement of SCA.

According to a recent survey, 48% of consumers have already authenticated a payment using biometrics; and 61% believe using biometrics is a much quicker and more efficient way of paying for goods or services than traditional payment methods using only passwords .

The new SCA rules have faced opposition from an industry which is seen to not be ready for the new digital era; new research from Stripe reported that just half of 500 businesses surveyed expect to be already compliant[4]. The delay from the financial services community in providing a more secure payment service for their customers is disappointing and worrying considering the increasing numbers of cyber-attacks each year. The financial institutions and payment service providers who have had nearly two years to prepare since the initial announcement, have unfortunately not put the safety of their customers at the heart of their operations – and there is no excuse.

Moving forward 

New and advanced technologies in the market have the potential to reduce the challenges posed by the new SCA enforcement. Basing the online authentication process on combining the customer’s own smartphone with an open biometric approach, will allow financial institutions to offer a low friction payment experience while meeting the new regulatory requirements – as it is far more secure than passwords or codes alone.

Indeed, financial institutions and payment service providers need to integrate new technologies into their customer services and move to a passwordless society. Passwords are easily compromised; it comes as no surprise that 81% of reported data breaches last year were due to poor passwords such as 1234[5]. There are easily incorporated multi-factor authentication solutions that rely on consumers’ digital devices, and more secure forms of biometric authentication, which will eventually render passwords obsolete.

 

[1] https://info.veridiumid.com/biometric-recognition-systems

[2] https://www.bbc.co.uk/news/uk-47016671

[3] https://www.fca.org.uk/news/press-releases/fca-agrees-plan-phased-implementation-strong-customer-authentication

[4] https://stripe.com/gb/newsroom/news/sca-impact-study

[5] https://www.tracesecurity.com/blog/articles/81-of-company-data-breaches-due-to-poor-passwords

Despite this shift however, the payment card is very much still alive with six-in-ten (60%) UK consumers stating they would not give up their debit card in favour of mobile payments. In fact, a further three quarters (75%) of UK consumers are concerned about the UK becoming a cardless society, where they no longer have access to a physical debit card and can only rely on mobile payments.

Here David Orme, SVP of IDEX Biometrics ASA at IDEX Biometrics ASA, explores the realities of payments preferences in the UK and what financial institutions must do to ensure that we experience a seamless transitions towards becoming a cashless society.

Do you remember coins? When was the last time you actually carried around a pocketful of pennies to pay for something? Given the rapid growth of contactless transactions, mobile payment apps and online shopping, it was probably quite a while ago now. Advancing banking technology, means we are fast moving towards a cashless society. In the UK, cash payments fell behind card transactions for the first time in 2017, while Sweden expects to become the first country in the world to go fully cashless, thanks to a country-specific payment app.

However, despite being hailed as the solution to end our use of cash and cards, mobile payment apps haven’t reached anywhere near the expected level of public adoption in the UK. By 2018, only 13% of the UK population was using mobile payments, due to the majority of the population generally preferring the ease and familiarity of contactless cards.

This is supported by our recent research at IDEX Biometrics ASA, which reveals that six-in-ten (60%) UK consumers would not give up their debit card in favour of mobile payments. In fact, a further three quarters (75%) of UK consumers are concerned about the UK becoming a cardless society, where they no longer have access to a physical debit card and can only rely on mobile payments.

Clearly, the payment card has become a strong part of our daily routine. So much so that, almost two-in-five (37%) of UK consumers stated that as long as they have access to a debit or credit card, the thought of a cashless society wouldn’t bother them. Interestingly, this number even rose to over half (52%) of 25-34-year-olds.

Given this strong evidence that consumers are still loyal to the payment card, it seems that the banking industry is focusing on the growth of the wrong payment technology. As we move towards a cashless world, the future of payments may not be in smartphone apps after all.

A smooth transition

There is a clear generational divide when it comes to the acceptance of digital payments. While over half (53%) of 18-24-year olds believe they already live a mostly cashless life, that number plummets to only 19% of those over the age of 55. Similarly, while four-in-ten (38%) of those aged 25-34 believe cash is now obsolete, only 9% of over 55s agree.

In fact, half (50%) of those aged over 55 are continuing to use cash to buy small-ticket items. Young people, however, are so tied to their card that two-in-five (40%) of those aged 25-34 say they won’t shop anywhere that doesn’t accept cards.

One of the greatest concerns surrounding a cashless society is the potential for inequality. Consumers shouldn’t be locked out of the banking system because they are less familiar with new payment methods or have limited access to digital devices. To keep our economy fair and inclusive, our payments system must stay accessible to all. Therefore, as we approach a cashless society, the UK Government and banking sector should reconsider the cashless transition. Instead of the focus on mobile payment apps, banks and financial institutions must adopt payment card technology that is convenient, secure and reliable for consumers of all ages, particularly older generations who still rely on cash.

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Holding on to security

Consumers are also dismissing mobile payment apps thanks to rising security worries around the new technology and the potential for misuse of mobile payments. Over two-thirds (68%) of respondents still feel more secure using their bank card than a mobile phone to make a payment, while almost three-in-five (58%) fear that if they lost their mobile phone, people would be able to access their bank accounts.

In contrast, half (50%) of respondents say that having their debit card gives them a sense of security. Significantly, four-in-ten (41%) consumers would trust the use of their fingerprint to authenticate payments from their bank card more than a PIN.

Given these concerns, it is evident that payment technology needs to be more secure. It’s time for banks to adopt cards with biometric fingerprint authentication, which can’t be misused without the owner’s fingerprint, even if stolen or lost. Incorporating this advanced biometric technology into payment cards would enhance authentication for transactions and provide all consumers with a safer payment process that offers more reassurance than PINs or apps currently provide.

Futureproofing the payments industry

Although the idea of a cashless society holds many benefits, 55% of consumers actually think a cashless society will be inconvenient. Whether from lack of technology awareness or security concerns, consumers are still fearful of the day when they have to rely on mobile apps to access their money and pay for goods. Given this fear, the financial industry needs to work quickly to enhance payment cards by utilising biometric technology to secure payment authentication, before cash becomes extinct.

Payment cards that provide the convenience of contactless payments with the added security of fingerprint authentication are the key to a seamless transition into a fully cashless society. Such cards will prevent misuse and card fraud, while allowing fast, convenient, secure and direct access to our bank accounts, bringing much-needed reassurance to UK consumers.

UK consumers have made their feelings clear; they are just not willing to give up their payment cards. In a cashless society, cards will still be leading the way – we must future proof them for the next generation of payments now.

Here Sarah Jackson, Director at Equiniti Credit Services, reveals some surprising stats about millennials’ attitudes to credit and explores with Finance Monthly what it all means for lenders targeting this demographic.

According to Equiniti Credit Service’s latest UK research report ‘A three part harmony: how regulation, data and CX are evolving consumer attitudes to credit’, despite millennial borrowing increasing annually by a healthy 8%, three fifths of this age group will still only consider borrowing from a traditional, well-established lender, or one that they had dealt with before.

That’s weird

Right. Particularly when it’s clear that alternative lending is gaining traction across other age groups and showing strong overall growth of 15% in 2018. The same report revealed that some 62% of all UK consumers would consider alternative sources of credit (I.e. a non-bank, such as a retailer or car finance provider) the next time they apply for a loan. While consideration does not equal action, the figures about take-up also support the trend: over a quarter of consumers who borrowed over £1000 in the last year did, in fact, use an alternative lender over a traditional high street bank.

If both millennial borrowing and alternative lending are on the up, why is there a disconnect between the two?

So, while non-traditional lenders are not yet competing with banks in loan volumes, they have certainly established themselves within the market. Which begs a question: if both millennial borrowing and alternative lending are on the up, why is there a disconnect between the two?

Customer inexperience

The story, as usual, lies in the data. Although 70% of UK consumers are comfortable completing loan application processes digitally, this figure drops to 57% for millennials specifically. Considering this age group’s well documented digital literacy, this can only be chalked up to financial inexperience. Older generations have not only had more time to become comfortable with the credit processes involved with a loan application, but most have also had more opportunity. External factors play a big part here too. House prices are such that for many millennials, unlike previous generations, the prospect of buying a house and applying for a mortgage at a relatively young age doesn’t even feature on the radar. As such, this group has less exposure to credit processes.

Financial inexperience creates a need for more careful guidance and reassurance. This likely explains why over half (58%) of millennials would only consider borrowing from well-known or previously used lenders.

A helping hand

For lenders, this is both a problem and a huge opportunity. With many millennials now in their mid-thirties, their collective buying power is set to increase substantially over the next decade, making this an increasingly lucrative target market.

That this knowledge gap exists is a chance for the smartest non-traditional credit providers to differentiate themselves as genuine and credible sources of information and guidance for these nervy borrowers.

A great user experience (UX) will undoubtedly help, but will need to be far more than a facility for fast and convenient access to credit.

A great user experience (UX) will undoubtedly help, but will need to be far more than a facility for fast and convenient access to credit. This notion is given further weight by the same report which indicates that one in seven applicants cite clarity of the product’s documentation as the most important factor when deciding between lenders. Persuasive and confidence inspiring UX goes far beyond origination – it must resonate throughout the entire loan lifecycle.

To successfully target millennials, this means balancing investment in a slick digital user interface and the development of clear and simple documentation. Since this group values one-to-one guidance, the contact centre will be a key battleground for business. Here, engaging a specialist outsourcing partner may well be the way to go. These providers are trained and skilled in supporting the kind of dialogue that younger generations need to confidently apply for credit.

There are growing calls for a national digital ID scheme. The Bank of England’s Mark Carney is one of the latest to back such a move, reasoning it will better protect people’s finances. A new techUK white paper makes the case that digital identities are essential to unlocking the value of the digital economy. With many advantages being championed, Chris Lewis from financial security software developers, Synectics Solutions, looks at how a scheme could work to benefit financial organisations and consumers.

A national digital identity scheme has significant potential to deliver in two key areas; security and simplicity. Both of these factors are of increasing importance to consumers and businesses.

Data released last year by fraud prevention service, Cifas, showed identity fraud hit an all-time high in 2017. Levels of this type of crime have increased 125% in a decade and it’s a problem affecting consumers of all ages. It costs financial organisations billions of pounds, while proving stressful and time-consuming for consumers.

Increasing regulation to better identify and verify customers has been designed partly to tackle the growing threat of ID fraud. This has been met by a willingness among financial organisations, and an understanding by consumers, but is far from the perfect solution. Both parties appreciate the fundamental sentiment of Know Your Customer and Anti-Money Laundering regulations and checks, and likewise, both share the frustrations of how these, inadvertently, compromise customer experiences.

It is cumbersome and tiresome for consumers to have to produce various forms of identification and verification, remember several passwords and go through multiple authentication checks – which will only increase following PSD2. People want their money to be safe and to complete secure transactions, but also want applications and interactions with service providers to be simple and straightforward. A national digital ID scheme could realise this.

Potentially, such a scheme would involve two levels of ID profile for each individual. These would include a private profile that consumers manage using a combination of soft and hard verification. This profile is then cross-checked against an individual’s public profile, which is verified according to a wide-variety of data sources. For example, this may include information from credit reference agencies, banks, insurers, employers and public sector unique identifiers such as National Insurance numbers. The two levels are validated to create one unique digital ID for each person.

The digital ID would then be stored in a secure ‘wallet’ type application on a smart phone. Consumers would be able to access this via a passcode or potentially through facial recognition or fingerprint scan, depending on the type of phone. The ID could be instantly presented to a financial organisation, either in person by showing the mobile device or electronically by sharing the profile through a secure transfer mechanism. Both means of presentation would also be backed-up with other levels of customer authentication but would be less time-consuming and significantly more secure.

A self-served, singular ID of this type would mean each customer verification is based on reams and reams of data and extensive validation, which is constantly updated and accurate. This will make it increasingly difficult for fraudsters to impersonate other people and create synthetic identities. It would also make it harder for criminals to set-up mule accounts for laundering money.

Needless to say, technology will be crucial to the infrastructure and practicalities of realising these benefits. The digital IDs need to be securely stored, accessed, shared and recovered. However, equally as important as technology, is the need for collaboration.

Public and private sector organisations need to come together to share data. This will ensure IDs are kept ‘real-time’ and accurate. It means any fraudulent attempts to impersonate and manipulate IDs are quickly determined and analysed, reducing the ability for criminals to try and use an identity across different sectors and for different reasons. It will also help ‘thin-file’ individuals without a substantial credit footprint through utilising alternative data sources.

Collaboration will also ensure there’s national agreement on one type of digital ID scheme, avoiding the potential for multiple different options. This will fulfil the time-saving and simplicity benefits consumers crave, and which businesses know are important to customer satisfaction. A singular scheme will free-up the capital and resource currently invested in multiple levels of customer verification. This could be invested in other areas to tackle financial crime.

Finally, collaboration could overcome any ‘big brother’ concerns consumers have about sharing their data and it being captured in one place. Big businesses already have lots of data about customers and consumers know this. Feeding this into a central scheme managed by the data subject gives power back to consumers and promotes transparency and trust. Similarly, organisations working together to share customer data presents the opportunity to better reward and incentivise people. The “carrot on stick” approach would help drive public acceptance and adoption of the ID and has already been demonstrated recently across Scandinavia.

Society is not that far away from a national ID scheme. People are already using application processes like ‘sign-in with Facebook or Google’ and using technology to remember log-in details. To take the next step to making a national ID scheme a reality, consumers and suppliers need to be engaged early and be part of the development process.

The findings form part of a report into borrowing practices and frustrations with the consumer credit market. The research, conducted by Duologi, surveyed 1,000 UK residents and found that, on average, 34% of people think that UK businesses could be doing more to provide point-of-sale (POS) finance to their customers.

Despite many large brands already providing POS finance on purchases, more than two in five (42%) shoppers believe that retailers could do more in this respect.

Another 42% of people said that this payment model could be better utilised in the property industry for payments such as estate agent fees, conveyancing costs or added expenses for mortgage advisory services.

A further 32% of people believe that the education and training sector could do more to offer POS finance, with another quarter (24%) of people saying that the health industry should work harder to offer these options to help patients access a wider range of services and procedures like IVF.

Lastly, 32% of people stated that the travel industry’s POS finance offering could be made more accessible – not only for splitting the cost of a holiday, but also for fees like rail season tickets, which often offer a better deal when paid upfront.

The research also showed that almost a fifth of shoppers would want to borrow from as little as £100 – but that many brands only offer finance over a certain amount; therefore, limiting their ability to tap into this market.

Duologi credit director, Rob Cottingham, commented: “Currently, POS finance is used most widely in retail but consumer appetite for credit options across a wide range of sectors is evident, and many think that these industries should be doing more to offer POS finance. Given the ongoing growth of e-commerce, the ability for these retailers to provide credit both on and offline could prove crucial in the future.

“Clearly, there is consumer demand for POS credit – so for those brands that do already provide finance options but aren’t seeing results, it’s vitally important to promote it more heavily. Simple tools such as pop-up banners near till points, posters in the waiting room or a clearly-visible website header can alert potential customers to the benefits of finance solutions, providing a clear reason to purchase from that business in particular.”                                           

Backed by global investment firm, Oaktree Capital, Duologi offers merchants the chance to increase their sales, boost customer satisfaction and grow profitability through the delivery of tailored point-of-sale finance options.

(Source: Duologi)

The study, conducted by independent survey company Censuswide asked 1,000 members of the UK public about their views on the economic outlook for 2019.

A total of 44% of respondents said they expected a financial crisis worse than 2008. Additionally, over a third of those polled (41%) said they are expecting to see a housing crash happen this year.

Only 14% of the population said they had forgiven the banks after the 2008 financial crash, according to a new poll from Spearvest, the wealth management firm.

As well as this, there is a significant distrust from consumers that banks have their best interests at heart. The survey found that over half (55%) did not believe this to be true, with only 13% believing they did.

The poll also found that consumers want banks to do more for good causes with 60% believing that banks should donate and fundraise for charities more.

Wael Al-Nahedh, CEO of Spearvest comments:“With widespread concern around the performance of the housing market and the wider economy, 2019 already looks set to be a challenging year for investors. It’s also clear that the financial services industry needs to do much more to win back trust of the public, supporting good causes and demonstrating a genuine commitment to charitable giving.”

(Source: Spearvest)

As an enabler for increased competition and customer choice, open banking is transforming the banking sector for consumers, challenger banks, FinTechs and traditional players alike. The UK’s version of the second Payment Services Directive (PSD2), open banking is forcing UK banks to open their data sets via secure application programming interfaces (APIs), resulting in them re-positioning their services away from being one-stop shops for financial products, to open platforms, where consumers can embrace a more modular approach to banking by allowing third parties to access their financial data directly.

As we enter the second full year of an open banking environment, Kevin Day, CEO of HPD Software, the asset based lending and factoring software platform, discusses the opportunities and challenges that the sector is likely to face in 2019. 

Rapid and significant innovation in financial services to grow the market considerably

Open banking’s data sharing rules are aimed at developing new technologies and innovation, which have been advancing at a rapid pace, and which is expected to continue, resulting in increased competition between banking providers and FinTechs. The open API data, which includes account aggregation, improved financial management, credit scoring thin-file customers and integrated lending and accounting platforms allows companies to create bespoke products and target potential customers in a completely new way.

Through such innovation, customers will be able to quickly compare accounts, helping them to understand where to find the most suitable products. Financial management meanwhile could now be offered by an array of financial service providers, from established banks to charities, in a move that encourages customers to shift from traditional ‘under one roof’ banking services to specific, individualised services that are suitable for their personal financial situation. The potential revenue opportunity across a range of SME and retail customer propositions is estimated by PwC to be £2.3bn at the end of 2018, of which £1.8bn could be cannibalised by existing or new players in the market, with the remaining £0.5bn representing new revenue opportunities. Based on forecasts for adoption across the same markets over the next four years, PwC expects incremental revenue will total £1.3bn, where £5.9bn is ‘revenue at risk’.

A lack of homogenous technical standards may make operating processes susceptible to corruption and companies need to be clear on how they will safeguard their data against fraudulent activity.

Enhanced industry collaboration

Another considerable advantage of open banking is the enhanced industry collaboration that will result from data sharing as providers, traditional banks and FinTech companies will between them be able to offer something that the other cannot. With so many players in the financial services industry, the formation of partnerships between banks and their FinTech competitors will result in increased choice for customers, and will help both players to survive and expand their services in a rapidly evolving industry. Any new products formed through such forward-thinking partnerships will likely see the benefits at both ends of the spectrum.

Traditional customer platforms are going to change

Open banking will enable a new league of consumer profiling that will require minimum effort to find the most relevant information on products and services across the industry that are tailored to their individual needs and history. From personalised investment solutions to retail overdraft decoupling, the shift in data optimisation will become the new normal, altering the way traditional price comparison platforms operate. This movement won’t stop there: bank account and transaction data can provide an opportunity to collaborate across different sectors where retailers, utility providers and tech companies can function together on aggregated data platforms.

Access to consumer data increases responsibility around security

The opportunities created by initiatives such as open banking, which have the potential to transform the industry, of course come with responsibilities, and one of the major challenges will be around managing risks related to security. A lack of homogenous technical standards may make operating processes susceptible to corruption and companies need to be clear on how they will safeguard their data against fraudulent activity. Any major data breach is likely to negatively impact retail customer uptake – many consumers consider their financial data more personal than their medical information. With complex chains of data access, both banks and FinTechs must also consider the obstacles associated with responsibility for any security breaches, and ensure that their software is able to identify, predict and react to risks or breaches in good time.

By bringing third-party providers into the banking system, there is a considerably increased risk of scammers gaining access to customer information.

Liability becomes an issue

By bringing third-party providers into the banking system, there is a considerably increased risk of scammers gaining access to customer information and the finance provider will be liable, unless there is evidence of fraud or negligence. With both banks and FinTechs alike facing increased security threats, without proper legal clarification, it’s inevitable that finance providers will do what is necessary to push liability on third parties.

Open banking is still a relatively new initiative

A lack of awareness and education around the capabilities of open banking will be its greatest challenge in the short term. Finance providers will need to convince customers of the benefits of sharing their data in the first instance, and as yet, banks are not marketing open banking, which directly impacts the ability for it to innovate and provide new propositions.

While the corporate sector and SMEs in particular seem far more willing to embrace open banking, consumer review body Which?, has found that 92% of consumers had never even heard of the initiative. As such, banks and FinTechs need to embark on a considerable education programme for consumers to better understand the benefits of open banking and how it can help them take control of, and better manage their finances, from monitoring spending to making better savings and investment decisions.

For finance providers in the Asset Based Finance space, there are opportunities to leverage efficiencies from open banking, in particular in the area of cash processing with the potential for virtual bank accounts to streamline cash reconciliation. There are also value added services that can be offered to SMEs to assist them with other aspects of running their businesses. Finance providers will need to have an open mind and be prepared to collaborate with FinTechs and other technology providers.

Once banks have stronger propositions to offer their customers, they will become more vocal and the lack of awareness will gradually cease to be an issue. For the financial services industry and new entrants alike, it is important that all parties embark upon this education programme with the proper systems in place for proper levels of monitoring, security and scalability to ensure a success of the industry.

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According to recent research by IDEX Biometrics, more than half (53%) of cardholders would trust the use of their fingerprint to authenticate payments more than their PIN.

A further 56% of research respondents stated that they would feel more secure conducting purchases with their card, if they were authenticated with their fingerprint. It seems that payment card users are very aware of the limitations of their PIN with almost half (45%) admitting that they never change them. And a third (29%) expressing concerns that PINs cannot be relied on to keep their money secure.

This scepticism around current card security measures also extends to contactless payments with 63% questioning their security and 70% believing that they actually leave them exposed to theft and fraud when used.

It is evident, that as a nation, we are ready for the introduction of biometric fingerprint card authentication. The only area of concern users admitted to, was how their fingerprints would be stored. 45% were worried that criminals could mimic their fingerprint biometric data and a further 51% was concerned about the possibility of it being stored in a bank’s central database - leaving them exposed to identity theft or their personal information being used without their knowledge.

These findings highlight that banks need to provide reassurance that biometric fingerprint authentication can be used in a user-friendly manner. There is no need for this information to be retained centrally and that any fingerprint data is kept with the user on their own cards. Providing customers with the confidence that they can embrace fingerprint biometrics as a more secure and personal method of authentication for their payments.

“Consumers are ready for the use of biometric fingerprint methods of authentication for card payments and it is set to be a reality in 2019, but banks have a responsibility to address security concerns, particularly in relation to how and such data is held. It is ultimately up to the banks and the financial services sector to reassure consumers to drive adoption and ultimately tackle fraud head-on,” comments Dave Orme, SVP at IDEX Biometrics.

“With a resounding 53% of consumers stating they would trust the use of their fingerprint to authenticate payments more than the traditional PIN, this must be where the UK banking industry focuses its attention. Chip and PIN is now 12 years old, and has seen its course. The consumer demand for fingerprint methods of authentication is a reality, with two-thirds (66%) of UK consumers expecting their roll out to authenticate in-store card transactions by 2019,” added Orme.

(Source: IDEX Biometrics)

Despite the hype, research by IDEX Biometrics has revealed that mobile payments are almost as unpopular as cheques. In fact, the payment card is still the number one payment method when it comes to in-store purchases for UK consumers. Three quarters (75%) of respondents stated that they use cards, including contactless, most often, compared to cash (21%), mobile payments (3%), and cheques (1%).

Unfortunately, there doesn’t seem to be a glimpse of hope for mobile payments on the horizon, with 72% stating they are concerned about the possibility of no longer having access to a physical debit card and needing to rely on mobile payments only.

It seems consumers’ personal attachment to the payment card is virtually unbreakable. Nearly two-thirds (65%) of respondents stated that carrying their debit cards provides a sense of security. It’s not surprising then that 75% say they always take a debit card with them when they leave the house. 65% of those questioned said that they wouldn’t give up their debit card in favour of mobile payments and a further 78% admit to feeling more secure using their debit card in comparison to mobile payments.

A further 60% also stated they would be worried people would have access to their accounts if they lost their mobile phone, amplifying the clear consumer distrust in mobile payments and their personal attachment to payment cards.

“It is evident that the UK public won’t be ditching payment cards in favour of mobile payments in the near, or even distant, future. Banks must face this and innovate with cards, which have stayed largely the same for decades,” comments Dave Orme, IDEX Biometrics SVP.

“With a resounding 53% of consumers stating they would trust the use of their fingerprint to authenticate payments more than the traditional PIN, this must be where the UK banking industry focuses its attention. Chip and PIN is now 12 years old, and has seen its course. It is time to elevate the traditional payment card and evolve authentication methods to make contactless transactions even more convenient and secure by adding seamless fingerprint biometric authentication”, added Orme.

(Source: IDEX Biometrics)

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