Issue 23
January 2025
Welcome to the MBA's News Digest!
Dear readers,
Artificial intelligence, open banking, and cutting-edge technologies are driving change in Banking, in 2025.
However, how banks harness these tools to drive value, build trust and stay ahead in a hyper-competitive landscape, shape the bigger picture.
The implementation of Basel 3.1 in the UK gets delayed until 1 January 2027, while awaiting more clarity.
Australia’s Federal Government launches new scam awareness campaign, which will rope in a $100 million investment by banks.
Best wishes,
The MBA team
New Scottish moveable transactions regime to go live on 1 April
17 January 2025
‘The relevant statutory instruments were laid in the Scottish Parliament just before Christmas to bring the new rules for assignations of claims and statutory pledges over tangible moveables and intellectual property into effect on 1 April, along with the new online Register of Assignations and Register of Statutory Pledges – the beta versions of which were subject to initial external testing in December. Meanwhile, down south, a further statutory instrument extending the new assignation regime to bank accounts and other claims falling within the financial collateral regime and extending the new statutory pledge regime to shares and other financial instruments is also anticipated to be laid before the Westminster Parliament shortly. These measures are expected to be effective from 1 April as well.’
Onboarding in 2025: Strategies to deliver a standout customer experience
22 January 2025
‘To seamlessly collect correct contact data at the customer onboarding stage use an address autocomplete or lookup service. These can provide accurate address data in real-time by providing a properly formatted, correct address when the user starts to input theirs – vital when 20 per cent of addresses inputted online contain errors. They also cut the number of keystrokes required when entering an address by up to 81 per cent. This speeds up the onboarding process and diminishes the probability of the user not completing an application or purchase. The good news is that first point of contact verification can be extended to email, phone and name, so this valuable contact data can also be verified in real-time. This data supports the wider ID verification process, and ongoing accurate and fast personalised contact with customers.’
Criminals sentenced for intercepting post and defrauding victims out of over £1 million
17 January 2025
‘Qayyum would contact the victims’ bank over the phone by impersonating the legitimate account holder, which sometimes involved putting on the voice of an elderly male or female customer. Using the information from the stolen post, he was able to get the victims account details changed to his own, meaning he had control of their accounts. After these changes were made, the fraudsters would transfer money from the victims’ accounts to accounts controlled by the criminals. Larger transfers involved individuals in collusion with Qayyum attending bank branches in person, using fraudulent identity documents to impersonate victims and authorise transfers from victim bank accounts to the fraudsters.’
New awareness campaign crucial in ongoing fight against scammers
12 January 2025
‘The banking industry’s Scam-Safe Accord includes:
- a $100 million investment by banks in a new confirmation of payee system, ensuring people can confirm they are transferring money to the person they intend to
- introducing more warnings and payment delays to protect customers
- adopting further technology and controls to help prevent identity fraud, such as the use of at least one biometric check for new individual customers opening accounts
- investing in a major expansion of intelligence sharing across the sector
all banks to implement anti-scams strategies.’
The PRA announces a delay to the implementation of Basel 3.1
17 January 2025
‘Given the current uncertainty around the timing of implementation of the Basel 3.1 standards in the US, and taking into account competitiveness and growth considerations, the PRA, having consulted with HM Treasury, has decided to further delay implementation of the rules. We now expect to implement on 1 January 2027, but will continue to monitor developments. In line with the approach taken for the six-month delay in PS9/24, the transitional periods in the rules will be reduced to ensure the date of full implementation remains at 1 January 2030, as set out in the original proposals.’
Banking forward: What is top of mind for 2025?
21 January 2025
‘This year isn’t just another year for banking — it’s quite possibly the gateway to a transformative era. With a new administration settling in and a change in leadership at regulatory bodies, the landscape is shifting in ways that make crystal-ball predictions a risky game. Yet several things are clear: Artificial intelligence is taking center stage; open banking is gaining traction; and banking technologies are stretching the boundaries of innovation. But let’s be clear: Change in 2025 is not just about the technology. It’s about how banks harness these tools to drive value, build trust and stay ahead in a hyper-competitive landscape. To make sense of it all, a panel of ABA’s experts has shared their thoughts on the trends and technologies defining the year ahead. Their perspectives cut through the noise, offering clarity on the opportunities and challenges that matter most. So, let’s dive into banking innovation with a lens that’s as forward-looking as it is grounded.’
Retail sales increased 0.4% in December
16 January 2025
‘Nonstore retailers were up 0.2% from last month and 6.0% from last year, while food services and drinking places were down 0.3% from last month but up 2.4% from December 2023. Sales at building material & garden equipment & supplies dealers was down 2.0% from November 2024 and 1.8% from last year. Motor vehicle & parts dealers and sporting goods, hobby, musical instrument, & bookstores rose 0.7% and 2.6% respectively from last month. Furniture & home furnishing stores were up 8.4% from year-ago levels and clothing & clothing accessories stores were up 2.4% in the same period. Year-over-year sales were also up for miscellaneous store retailers (3.7)%, nonstore retailers (6.0%).’
Lloyds, Halifax and Bank of Scotland to share branches
9 January 2025
‘Lloyds, Halifax, and Bank of Scotland customers will be able to use services in any branch of the three brands as part of the group’s latest network shake-up. Lloyds Banking Group, which owns all three banking brands and is the UK’s biggest moneylender, said the move would give customers more choice and flexibility. It has not confirmed a date for when the changes will come into effect, but concerns have been raised by some that the move could pave the way for more branch closures in the future. A raft of High Street bank branches have been closed in recent years, as more people have shifted to accessing banking services online.’
New infographics provide advice for identifying money mules, check fraud
22 January 2025
‘The first infographic teaches consumers how to detect and avoid falling victim to a money mule scam. The second infographic provides advice for bank staff on how to spot money mules. The third infographic teaches small business owners how to protect themselves from check fraud. “These two types of fraud have been on the rise in recent years,” ABA Foundation Executive Director Lindsay Torrico said. “Raising awareness of what people should be looking for is more important now than ever.” The infographics are part of an ongoing collaboration between the U.S. Postal Inspection Service and the ABA Foundation announced in 2024.’
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