Your Friday fix for global fintech and payments news
This week we are proud to announce that the Payments Awards 2020 revealed our open development payment platform in their shortlist for Payments Innovation Award and our mobile payments service for the Best Mobile Payment Solution award. In other industry news, the Financial Conduct Authority has announced that pre-warning is necessary for any branch closures or ATM conversions in the UK, Tesco Bank has revealed its Open Banking initiative and Standard Chartered statistics say that 64% of global consumers are expecting to be cashless within the next decade.
Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
- FCA sets access to cash expectations
- Tesco Bank launches card payment technology for 2.6m credit card customers
- Almost half of global consumers expect a cashless world by 2030
The Financial Conduct Authority (FCA) has announced that UK banks, building societies and credit unions will need to provide an in-depth review and analysis for closing branches and/or converting ATMs to pay-to-use. The FCA is also implementing a 12-week time-frame for these changes to be communicated to customers so that the branch customers are made aware of the alternatives available to them well in advance of the closures/changes.
These changes come after growing concern in smaller communities about the removal of bank branches and free to use ATMs, which is creating ‘cash deserts’ and isolating vulnerable groups.
Sheldon Mills, Interim Executive Director, Strategy and Competition, FCA, says: "Even during the pandemic, cash remains essential to many consumers. The publication of this guidance sets out clearly our expectations on firms and will ensure that firms make it a priority that customers are treated fairly, especially those who are most vulnerable."
Tesco Bank is to become the first UK bank to implement new technology for credit card customers enabled by Mastercard’s Open Banking Connect service. This will allow mobile and online Tesco Bank credit card customers the ability to make payments directly from their current account via online channels.
Testing and the roll out of the ‘Pay by Bank’ service started last month and all mobile and online credit card customers are expected to be able to use the functionality in the coming weeks. The service is made possible due to the Open Banking legislation and Tesco Bank credit the main benefits to customers as;
- Simplicity – delivering a straightforward solution to making payments directly from credit card current accounts,
- Visibility – credit card balances are available to view before the payment is made and balances are updated instantly
- Security – making payments is safe and easy using the customers’ current login details to verify payments.
Statistics from Standard Chartered’s latest global survey of 12,000 adults revealed that COVID-19 has made respondents see online shopping in a more positive light (64%), but they are also wearier of spending at all and are more likely to be tracking their money digitally.
Pre-COVID-19, the majority of respondents said that they would have preferred to shop in person, but this has changed drastically to now almost half (48%) now preferring to shop online. Online shopping covers a range of retail purchases, from food shopping to travel. From this, 64% of respondents expect their country to go fully cashless at some point in the future, whilst 44% expect this to happen by 2030.
With spending now on the rise as lockdown lifts slowly around the globe, figures also show that people are now more likely to be tracking their spending, with over three-quarters of respondents either currently using or wanting to use budgeting tools, or tools that can cap spending.
Aalishaan Zaidi, Global Head, Client Experience, Channels & Digital Banking at Standard Chartered, said: “In a world where people are being more cautious with their spending, being able to keep track of where your money goes has never been so important. One way to do that is to keep your payments digital and our own data supports this shift with cash withdrawals from ATMs declining to half the levels they were two years ago as online payments have increased.”