Issue 7
September 2024
Welcome to the MBA's News Digest!
Dear readers,
The future of banking is increasingly digital, with a strong emphasis on personalized experiences, data-driven decision-making, and a dynamic workforce.
With so much at stake, it’s more important than ever for banks to make sure digital banking solutions can keep up with customers’ evolving needs.
Best wishes,
The MBA team
Mitigating people risk for DORA compliance
4 September 2024
‘You may have the most robust digital systems, but still require someone to manage, maintain, support, and access them. People go on holiday, get sick, leave, are compromised; they are uncertain and hard to control. So, what happens when your SME disappears? What if their knowledge is lost? The system still functions in principle, but in reality, you have no way of using the capabilities or outputs due to the loss of an individual. People possess critical knowledge of the digital infrastructure and processes. Their absence means a service or system becomes inoperable or inefficient, undermining DORA compliance.’
Scam-tember: Three in Five Brits fear falling victim to fraud, as life gets busier in September
4 September 2024
‘Post-holiday busyness in September can sometimes mean our focus is shifted to multiple things, heightening the risk of missing fraudulent attempts. New data from the Take Five to Stop Fraud campaign has found that half of people (50%) say they feel busier when coming back from a holiday. A third said that being busy makes them more likely to take a chance on a cheap deal or financial offer (34%) and were also more likely to lose focus or fail to check the details of a communication they receive (46%), all of which could potentially put them at risk of fraud. Three in five people (59%) state that they are concerned about falling victim to fraud with almost a third of people (31%) reporting to have received an attempted scam over the summer, with one in eight people (12%) receiving two or more.’
Over 4 million children and young people educated by financial services industry last year
3 September 2024
‘Financial services are the biggest funder of financial education by sector, voluntarily contributing 80 per cent of total funding (£7.5 million). In 2023, the industry provided financial education lessons to over 4.1 million children and young people; focused support to over 83,000 vulnerable children; and engaged with over 25,000 schools. However, there is still a significant amount of work needed to fully achieve our goals in boosting financial literacy in the UK. The report sets out five key recommendations…’
Rethink Your Digital Experience: 7 Benefits of Embracing Digital Transformation
1 September 2024
‘With so much at stake, it’s more important than ever to make sure your digital banking solution can keep up with your customers’ evolving needs. If it can’t, making a change to your digital strategy could help. According to a study from Cornerstone Advisors, banks focusing on a digital transformation strategy have seen decreases in operational expenses, improvements in accountholder retention, and deposit and loan account opening productivity. Need more evidence? Consider the following seven benefits that come from providing a modern digital banking experience…’
The Top 5 Forces to Ignite FI Strategies
1 September 2024
‘The future of banking is increasingly digital, with a strong emphasis on personalized experiences, data-driven decision-making, and a dynamic workforce. Regional and community financial institutions that prioritize digital transformation and AI integration will be well-positioned to thrive as the industry continues to shift towards advanced technologies and customer-centricity. The potential for growth is immense for those RCFIs that recognize the importance of digital maturity and are willing to adapt to the changing market. Financial institutions are at a pivotal moment where leveraging data and technology can significantly impact their business. The future of banking lies in the integration of culture, strategy, and technology to deliver the digital sales and service platform of the future, led by a new guard of data-informed digital bankers.’
FTC warns consumers about college tuition billing scam
3 September 2024
‘Phone calls to college students and parents demanding immediate payment for tuition are scams that seek to trick victims into turning over their bank account information or making fraudulent payments, the Federal Trade Commission warned in a new consumer alert. According to the FTC, scammers pretend to be from a college’s financial aid or bursar’s office and claim that a student’s financial aid fell through and that he or she can’t start classes unless they pay the full balance immediately. Other scams may claim that victims can’t access their college transcripts unless tuition is paid. Neither claim is true as colleges will not demand immediate payment over the phone.’
MidWestOne Bank taps Temenos for digital onboarding solution
5 September 2024
‘Fitted with data collection, e-signature and workflow management tools, Temenos claims its Digital Onboarding offering enables customers to complete the account opening process in an average of two minutes. The vendor says previous takers have enjoyed “52% faster onboarding than their peers, 68% higher cross sell rate, and 24% higher ratio of customers to full-time-employees”. Serving 140,000 customers throughout Iowa, Minnesota, Wisconsin, Florida and Colorado, MidWestOne offers a broad service remit, including loans, mortgages, accounts and wealth management.’
Why is the UK slashing the maximum banks must refund to fraud victims?
4 September 2024
‘Consumer groups have attacked a regulator’s decision to slash the planned maximum amount that banks will have to refund to UK fraud victims from £415,000 to £85,000. One said it meant some people were likely to have their lives “destroyed”. The Payment Systems Regulator (PSR) confirmed on Wednesday reports from the previous evening that it was launching a consultation to reduce the threshold, which is due to come in on 7 October, despite having previously said that a maximum of £85,000 was “too low” as it would “exclude a significant number of victims”…. The regulator said it had carried out a review that found that in 2023 – out of more than 250,000 cases – there were 18 instances of people being scammed for more than £415,000, and 411 instances of being conned out of more than £85,000. “The proposed new cap will still see over 99% of claims [by volume] covered,” it said. It added that the new cap was in line with the Financial Services Compensation Scheme limit, “which is currently £85,000 and well understood by consumers”.’
Lloyds Bank uses artificial intelligence to check trade finance documents
4 September 2024
‘Trade finance transactions involve large payments, often international, that traditionally require many participants with large volumes of manual checks of documentation required. Trade financing includes the tools, techniques and instruments that facilitate trade, and protect buyers and sellers from risks. Through AI specialist Cleareye.ai, Lloyds will use optical character recognition, machine learning and natural language processing algorithms to extract critical information from paper-based and digital documents.’
FinCEN Issues In-Depth Analysis of Check Fraud Related to Mail Theft
9 September 2024
‘In its analysis of BSA reports for the FTA, FinCEN identified three primary outcomes after checks were stolen from the U.S. Mail: (a) 44 percent were altered and then deposited; (b) 26 percent were used as templates to create counterfeit checks; and (c) 20 percent were fraudulently signed and deposited. Check manipulation methodologies ranged in sophistication, and many perpetrators tried to avoid interaction with bank personnel. FinCEN also found that banks filed 88 percent of all mail theft-related check fraud reports…. Mail theft-related check fraud losses can affect personal savings, checking accounts, business accounts, and retirement savings, as well as negatively impact financial institutions who typically cover the check fraud losses. In addition to filing a Suspicious Activity Report, as applicable, when suspecting mail theft-related check fraud, financial institutions should refer their customers who may be victims to the U.S. Postal Inspection Service…’
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