Your Friday fix for global fintech and payments news
The beginning of this week saw us all celebrating International Women’s Day. It is great to see organisations and individuals across the world come together to support equality. In other news, we are looking at the rise of global e-commerce and fraud rates, the increase in trust of digital services, and the latest paper released by Compass Plus in conjunction with Finextra, covering the steps a business should take when choosing a new payments platform.
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.
- Online transactions soared in 2020, fraud skyrocketed too
- Survey finds out Americans generally trust digital banking
- Cut through the noise: 5 key considerations when selecting your payments platform
2020 was the year that the world shifted to digital payments. However, alongside the huge uptake in digital, came an increase in the amount of fraud.
With the huge increase in mobile and online banking, digital banking fraud incidents grew 250% in Q4 2020 when compared with Q1 2020, according to risk management platform, Feedzai. Streaming and subscription services also came along with high fraud rates, up 178% in Q4.
Senior Director of Global Data Science at Feedzai, Jaime Ferreira said: “2020 was a year of rapid growth in financial crime. Fraudsters tried to take advantage of the convergence between a fast-paced digital environment and a new wave of inexperienced consumers to perpetrate a multitude of attacks that created a significant uptick in fraud.”
A study conducted by leading IT security software company, ESET, found that almost two-thirds of US consumers (65%) claim to use at least one fintech app or platform – with 85% using banking apps or online banking platforms. [KB1] With a lack of access to physical branches during the various lockdowns across the globe, it is unsurprising that many consumers have turned to digital banking to keep an eye on their finances. 30% of the American consumers surveyed said that they are using their online banking platform more frequently over the past year, and the same was said for mobile banking.
The survey, which took into account the habits of 2,000 US consumers and 8,000 consumers from the UK, Australia, Japan, Mexico and Brazil also revealed that on the whole, 93% of respondents said that they feel secure when using online banking, with 55% of those saying that they feel ‘very secure’.
Compass Plus has teamed up with Finextra to release a new paper: Cut through the noise: 5 key considerations when selecting your payments platform.
As demand for digital transformation and innovation increases, FIs are looking for ways to evolve and differentiate themselves from others in the crowded marketplace. However, selecting the right vendor and platform can be challenging when all vendors seem to have similar offerings – FIs need to be able to cut through the through marketing vernacular to build a clear understanding of the platform’s capabilities.
The paper reads: While there is no fool-proof method for selecting the perfect technology vendor, adopting the considerations within this paper will assist financial organisations to refine their fundamental objectives and requirements and achieve deeper understanding of their business needs.
Read the full report from Compass Plus and Finextra here.