PCM Volume 5 - Issue 6: Money 20/20 Europe Special Edition

vol.5. issue 6.

June, 2019.

PCM Financial Inclusion for Europe’s SMEs: Building a circle of trust with Anders la Cour

SPECIAL EDITION

Cover Story:

JELMER ROTTEVEEL

BLANKA LIGETI

VERNA KWAN

Marketing and Business Development Manager

Production Editor and Head of Creative

Digital Marketing Executive

jelmer@teampcn.com

blanka@teampcn.com

verna@teampcn.com

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CONTENTS

4

COVER STORY: BANKING CIRCLE Financially Excluded SMEs still Failed by Banking Solutions

10

EXPERT INTERVIEW: TRUSTLY The Quest for an Optimized Checkout

12

MONEY 2020 EUROPE 2019 Attending Companies

16

THOUGHT LEADER: JUMIO How to Fight Account Takeover Fraud with BiometricBased Authentication

20

EXPERT INTERVIEW: FSS TECHNOLOGIES Exclusive Interview with Haresh Hemrajani

24

STARTUP SPOTLIGHT: EVERYPAY Empowering Banks in Digital Payments

26

THOUGHT LEADER: EWPN Diversity is Not Just the Latest Hot Topic

31

JOBS & EVENTS Check Out Our Hottest Jobs & Events From the Industry

FINANCIALLY EXCLUDED SME’S STILL FAILED BY BANKING SOLUTIONS A collaborative financial ecosystem can break down barriers to SME’s success Every company was once a start-up, an SME, a financial unknown and high-risk investment opportunity. For some, growth has taken many decades of prudent business decisions and gradual expansion. Think, for example about Johnson & Johnson, started in the 1880s, selling the first ready-to-use surgical dressings, and expanded steadily into new markets, boosted over the years by company acquisitions and partnerships as well as post-WWII demand for better surgical solutions and pharmaceutical medicines.

However, in the much faster paced markets of the last few decades, the ability to grow has gained a much greater sense of urgency. And to support that fast paced growth, investment is needed from the outset. For some enterprises, this might come from family and friends, and then from forward-thinking venture capitalists. But for others, if early cash injections cannot be secured they could well become one of the high proportion of start-ups that fail within their first four years of trading.

Whilst slow-and-steady growth can work for some companies, as it did for Johnson & Johnson, in today’s instant, connected, global market, speed is critical to get ahead, deliver innovative solutions at the right time and to remain competitive. The problem is financial solutions do not always serve SMEs well and, post-recession, banks are less able to lend to smaller, seemingly higherrisk businesses. This often leaves them unable to build or deliver their solutions and meet their potential ahead of the competition. SMEs are becoming increasingly financially excluded.

There are more than 24 million SMEs in Europe, making up more than 99% of the region’s businesses, and accounting for two thirds of employment. As such, SMEs

4 | |COVER STORYPLUS | BANKING CIRCLE 6 COMPASS

represent a significant opportunity, and their collapse would cause significant damage to the economy.

Banking Circle recently commissioned Magna Carta Communications to carry out independent research into financial inclusion for SMEs, to uncover the views and experiences of businesses, FinTechs and banks today. It also identifies the opportunities that exist for those organisations supporting the sector – banks, PSPs, FinTechs and other financial services institutions. The research confirmed that there is no one single reason why firms are excluded from financial services, therefore it’s hard to identify a one-size-fits-all solution to creating financial inclusion.

From vicious circle to virtuous circle With Europe’s SMEs covering every industry, with varying business models, distribution and ambitions, no two firms are alike. This creates a barrier to providing effective and viable financial solutions at scale – neither existing corporate banking nor retail-focused offerings are suitable, so SMEs are left out in the cold. Speaking to MagnaCarta, Ivo Gueorguiev, Chairman of Paynetics, an infrastructure payments provider to fintechs and smaller players, commented: “[SMEs are] dispersed, there’s no data available on them, and therefore it’s expensive to reach out to them. For this reason, they’re either underserved or the products they are being offered are offshoots from products developed for corporates and thus often unsuitable.”

Without access to suitable solutions, SMEs find themselves facing high prices and other barriers to entry which are stunting growth and limiting the appeal of SMEs to prospective lenders – it is a vicious circle of selfreinforcing inaccessibility.

Thankfully, digital innovation and Europe-wide regulation are putting pressure on financial services providers for greater collaboration to build bridges. This will help transform the current vicious circles into virtuous circles of provision, availability and use, creating a mutually supportive ecosystem in which SMEs can thrive.

Value of financial inclusion At policy-level, the EU recognises the importance of financial inclusion, and has brought in programmes to help deliver better access to SME finance. Financial inclusion has a positive effect on many areas of a business as well as the wider economy. For example, it enables more sustainable and efficient business growth, skills development, job creation and innovation in product and service development.

SMEs with access to suitable financial solutions are also increasing internationalisation and exports, and supporting the diversification and resilience of the wider economy. In turn this improves social integration and community cohesion. The importance, significance and impact of financial inclusion should not, therefore, be underestimated.

Improving financial access to improve financial inclusion The European Commission’s flagship report, the Survey on the Access to Finance of Enterprises (SAFE), paints a relatively rosy picture of financial access for euro-area SMEs. On average, businesses taking part in the survey ranked access to finance in the lowest position on the scale of major business challenges.

The proportion of firms claiming access to finance was their major challenge has halved since SAFE was first conducted in 2009, and SMEs’ ability to access bank lending has improved every year between 2012 and 2017.

The EIB’s Investment Survey shows that bank loans account for almost 70% of external SME funding, and approval rates for bank loans have increased steadily since 2014. There has also been a slight but notable upward trend in both the need for and availability of bank loans and credit lines. However, the European Parliament is still cautious.

Despite progress in the availability of loans, guarantees and venture capital, it says that the financial markets often fail to provide SMEs with the financing they need, and access to finance is still the second-largest problem faced by individual SMEs. According to SAFE, bank lending alone is not meeting the needs or requirements of almost half of Europe’s small businesses. While SMEs report improvements in access to finance and interest rates have fallen, charges, fees and commissions remain high, and overall SMEs report increases in collateral requirements.

ANDERS LA COUR Co-founder & CEO Co-founder and Chief Executive Officer of Banking Circle, Anders la Cour is a hands-on leader driving innovation to facilitate more inclusive, efficient and cost-effective banking, lending, payments and FX. He was also instrumental in arranging the $300 million acquisition of Banking Circle by EQT VIII and EQT Ventures in 2018.

ABOUT BANKING CIRCLE Next-generation provider of missioncritical banking infrastructure, Banking Circle, is underpinning the service proposition of Financial Tech businesses, PSPs, FX providers and banks. Banking Circle is increasing financial inclusion, helping financial institutions provide their customers with faster and cheaper banking solutions, including local and cross border payments, banking accounts and lending.

Lending alone exclusion

doesn’t

solve

financial

Much of the existing information available on SME financial inclusion has a very narrow focus on lending and credit. But, just as consumer financial inclusion doesn’t just describe an individual’s ability to take out a bank loan, SME financial inclusion is not just about lending. This narrow view ignores business-critical access to bank accounts, payment services and foreign transfers, as well as issues caused by slow merchant account opening, and the lack of support for essentials such as accounts payable.

SMEs are the very basic banking or payment services.

That hinders the SMEs’ ability to offer more attractive products to their clients, improve their efficiency, increase profitability and ultimately, reinvest in the business.”

Faster cash, not more cash During the research, a recurring issue was raised by the interviewees: speed. Speed of decisions, speed of settlement, speed of delivering funds. David Selves, entrepreneur and owner of the Selves Group of Companies, explained:

Alex Park, Director of Digital at UK challenger bank, Metro Bank, believes smaller firms are suffering due to established banks focusing primarily on retail and larger commercial customers. He commented: “SMEs are being underserved … For example, you can open a bank account in less than a day, as a consumer, but it still takes 15-20 days to open a SME account.”

“The main difference between banks in the past and now is that banks don’t know their customers or their businesses in the same way. It takes too long for them to make decisions such as for business loans. Three to five banking days for card payments is still the norm, which causes considerable issues for many small businesses who need to restock rapidly.”

Patty Zuidhoek, Director of Business Banking at the Dutch Triodos Bank, which focuses on sustainable and ethical banking, agrees: “The European Central Bank wants us all to stretch further and further in gatekeeping - in other words, to be stricter and lower risk. All these checks and balances can be discouraging, and a lot of large banks withdrew from SMEs because they want to take a standardised approach which doesn’t work in this sector.”

Michael Ault, CEO of Universal Transaction Processing agrees: “One of the most common complaints we hear from SMEs is the time it takes to get funded.

They’ve already been through an arduous process to get a merchant services account, and then it takes days to get their funds. In today’s tech-enabled world, they want faster processing within an hour of taking a transaction.”

Ivo Gueorguiev of Paynetics, says that because SMEs are notoriously hard to reach they are rarely a major part of a bank or financial institution’s strategy.

Payment products are therefore usually priced-up with the obvious cost implications: “There are very few value-added products available: usually products for

6 | COVER STORY | BANKING CIRCLE

Kent Vorland, CEO of the SmartTrade App, which has created a platform for micro-businesses and sole traders, is clear that “… small businesses – especially micro-businesses – have specific requirements. We’ve seen consumer products try to attract SMEs, but they are not agile enough and have little knowledge of small businesses. On the other hand, the big boys have

complicated functionalities, but nothing optimised for small merchants who often don’t have software knowledge and skills needed.”

Technology and ecosystem collaboration Less than half of EU states have so far established a one-stop-shop to support SMEs in accessing funds, strongly suggesting that a broad and effective ecosystem for SMEs is still a way off.

Roger Vincent, Chief Innovation Officer at Trade Ledger recognises the lack of interoperability and collaboration in the financial services sector. He believes “… this has essentially resulted in an explosion of new commercialised ‘islands of digital innovation’, created by financial service companies each vying for the custom of SMEs by holding them captive in their ‘spheres of influence’. Technology is a major catalyst for change in the financial services sector, and I would certainly say that it’s starting to have an impact on how SMEs are serviced by their banks.”

The challenge is to make sure that technology is also a catalyst that can kick-start greater collaboration. In the UK, arguably one of the most advanced markets for financial technology, two in five small businesses regularly experience technological problems when accessing accounts online. As a result, nearly half said they would move to a non-bank provider – if their banking needs could be met in new and innovative ways.

Where next?

There is a growing commitment to improving access to commercial banking, transaction services and lending for SMEs across Europe. There are plenty of ambitious, but still underserved, businesses with specific needs that could be met by an open, joined-up ecosystem. There are plenty of potential providers of innovative ‘point’ solutions.

But there remains a lack of connection between the two, apart from individual, often ad hoc series of collaborations.

The bigger picture of a connected ecosystem – a circle of trust – is often obscured by a virtual tidal wave of statistics, audits and promotions.

However, financial inclusion based on digital technologies is not an isolated process: it must take place within a broader narrative – one that connects banking solutions to technology to communications and collaboration strategies, as well as to analytics.

And even to wider society. To move forward, all ecosystem participants must continue the conversation with each other, to build collaborative models and solutions that can fit this diverse and disparate market.

If they can, it will help build a larger marketplace from which providers old and new can benefit.

Rather than relying on top-down directives from state institutions, this needs to be a circular, grass-roots movement, led by participants, who can find solutions from the bottom-up. Leading the rise of a supercorrespondent banking network, Banking Circle is helping financial institutions increase financial inclusion by providing their customers with faster, cheaper banking solutions, including banking accounts, local and cross border payments and lending, without the need to build their own infrastructure and correspondent banking partner network.

The full report, Financial Inclusion for Europe’s SMEs: Building a Circle of Trust, will be launched at Money20/20 Europe. Visit www.bankingcircle.com to download a copy, available from 3rd June 2019.

LENDING

Bank on us

Banking Circle Lending enables financial tech firms to quickly offer their customers rapid access to cash, without risk, within 24 hours – fuelling growth for both.

THE NETWORK FOR GLOBAL COMMERCE bankingcircle.com

THE QUEST FOR AN OPTIMIZED CHECKOUT In this special edition of our magazine, we have the pleasure to interview Lassi Eronen, e-Commerce Marketing Manager at Trustly, a European fintech company that provides direct payments technology to make online payments fast, simple and secure.

Can you tell us more about Trustly? What does the company do and what are your main markets?

At Trustly, we’re passionate about simplifying the way people pay and get paid online. We are a licensed payment institution and our fast online bank payments and refunds attract global merchants in segments such as e­-commerce, travel, financial services and gaming.

We currently offer our payment solutions in 29 European countries and we see the strongest traction in our home market of the Nordics.

Who do you see as your main competitors? What sets you apart from them?

Our main competitors are any payment methods that sit alongside us in the checkout, whether they are credit cards, invoice solutions or e-wallets. From the merchant’s perspective, online bank payments are often less expensive than accepting credit cards and are instant, which helps to manage cash flow.

A full-service bank payment solution like Trustly also allows e-commerce merchants to offer instant refunds.

Whereas shoppers might wait anywhere from 3 to 10 days to receive a refund from a credit card, Trustly enables automated and instant refunds. Not only does this cut down on costs associated with handling refunds, but it reduces complaints to customer support, increasing shopper satisfaction. And when shoppers receive their refunds faster, they are able to spend those funds sooner.

In fact, a recent survey we conducted shows that offering faster refunds could lead to 58% of shoppers spending more and 56% shopping more frequently. On top of that, 95% of shoppers said they would be more loyal to a 10 | EXPERT INTERVIEW | TRUSTLY

merchant that offers same-day refunds.

But while price, speed and ability to offer instant refunds give online bank payments a leg up over other payment methods, we feel it’s important to have a mix of options in the checkout in order to optimize conversion.

What does an optimized checkout look like?

Offering a mix of payment options is crucial to optimizing conversion in the checkout, although what that looks like can differ for merchants depending on the markets they cater to. For example, for a merchant serving the Nordics, it’s important to offer online banking payments because in Finland, for example, roughly 40% of shoppers prefer to pay directly from their online bank. But in the US, which is still largely dominated by credit cards, it’s important to offer that option.

Beyond offering local payment options, an optimized checkout can also be personalized for the shopper, which means using their local language and currency. And just as shoppers feel more comfortable in a brick and mortar store where the sales associate says “Welcome back,” return shoppers online appreciate a streamlined experience in which payment or shipping details are remembered. Localizing and personalizing your checkout for the markets you operate in is key to optimizing your conversion.

What trends are you noticing in the payments industry at the moment?

Across all industries, consumer expectations are rising.

Consumers expect to be able to watch anything or listen to anything they want on demand, and they expect to be

able to order something online and have it delivered to their door in just a day or two. This extends to payments, where consumers expect to be able to pay quickly and, should they need to make a return, receive their refund just as quickly. That trend is driving the need for instant and real-time payments.

Anything slower just doesn’t cut it anymore. New regulations are also driving the change in Europe currently. With PSD2, doors are opening for fintechs to offer new and innovative services that address the consumer expectations mentioned above. One of the key opportunities is combining payment with other components like personal data, which can power completely new kinds of services. Just imagine payments that are embedded to other consumer services, like messaging apps!

With PSD2 to be deployed later this year, as a Third Party Provider (TPP), what are some of the challenges you foresee? How is Trustly going to tackle these challenges?

Trustly’s existing operational model is fully PSD2 compliant and the directive endorses the benefits of our payment initiation service, allowing consumers to transmit their bank-issued credentials through Trustly. A big challenge will be integrating all the new bank APIs as they become available. However, we already use API or quasi-API solutions across multiple European banks, some of which are built exclusively for Trustly.

So we have significant practical experience in integrating these type of interfaces.

But it’s important to note that not all bank payments are equal, and PSD2 APIs will only solve a part of the puzzle. In order to create true payment experience across Europe, you will still have to be an expert in all kinds integration methods. This is where Trustly is clearly the leader and we have spent 10 years learning how to make this work.

We also play an active role in the vetting of APIs being developed by banks through our participation in the European API Evaluation Group. This gives us in-depth knowledge of the banks’ plans in regards to APIs – where different banks are in their development, as well as where national initiatives are (e.g.

STET in France, Polish API, Open Banking UK, Czech API etc).

For several of these API initiatives, we have even participated in consultations by providing feedback, putting us in a unique position to integrate new APIs quickly.

Whatʼs up next for Trustly? Are you planning to release any new products or expand into new markets?

We’ve just released our latest product, Pay Your Invoice, which simplifies and automates invoice payments. For e-commerce merchants, it decreases administrative costs while letting them maintain ownership of the customer relationship, which is a major benefit over some of the existing invoice solutions.

As for new markets, we are focused on providing the best online bank payment product in Europe and are constantly working on improving the coverage and offering there. However, many of our merchants have a global presence and in order to serve them better, we are looking at new markets to enter. Stay tuned for more news on that soon!

LASSI ERONEN E-Commerce Marketing Manager Lassi Eronen is passionate about developing businesses, learning, technology and helping people along the way. At Trustly , he works as a Business Marketing Manager for the E-Commerce and Travel verticals, helping European merchants improve their customer experience by offering direct bank payments.

ABOUT TRUSTLY Trustly is a European FinTech company that makes online banking payments fast, simple and secure. We cover 29 European countries and our payment solutions attract global merchants in e-commerce, travel, financial services and more. We are a licensed Payment Institution under the supervision of the Swedish Financial Supervisory Authority.

Attending companies

01Ventures A-2 Norge A.T. KEARNEY A&L Goodbody ABBL ABN AMRO Accel Accenture Acceo Solutions inc.

Access Bank Access-IS Activant Capital Group Addleshaw Goddard LLP Aduno Gruppe Aerospike, Inc. AEVI Al Othman Pearls Co. Alektum GmbH AlixPartners UK LLP Allen & Overy LLP Allianz Partners Almaviva Spa Alogent Corporation Alterna Savings Bank Amadeus Capital Partners Amazon American Express andrewvorster.com Antelop Solutions Apax App Annie Europe Limited Aquiline Capital Partners Aramis Arbor Ventures ARGENTA BANK Argus Merchant Service Arkea Banking Services Arma Partners LLP Arvato ASOS ASSEPRO Asto ATB Financial Attra Au10tix Audi Business Innovation GmbH Aviva Investors Axiory Services s.r.o.

Azimo B2 Kapital GmbH B4B Payments Bain & Company Baker Mckenzie Balderton Capital Baloise Banco BNI Europa Banco de Credito del Peru BANCO TOPAZIO Bancontact Payconiq Company Bank of America Merrill Lynch Bankia Banking Circle Barclays Baringa Barnes International Limited BBVA BCEE Luxembourg BearingPoint Belleron

Berenberg BGK GmbH & Co. KG BGL BNPP Bink Bird & Bird LLP BitPay BKM (Bankalararası Kart Merkezi A.S.) BlackFin C.P. BlackRock Blake, Cassels & Graydon LLP Blenheim Chalcot Blue Code International AG Blue Motor Finance BlueSnap BNP Paribas Fortis SA/NV BNP PARIBAS PF BofA Merrill Lynch Merchant Services Borderless Technology Company Limited Bottomline Technologies Brightisight BS Payone GmbH Burgopak Limited C Hoare & Co CA CIB Cal ICC (Israel Credit Cards Ltd.) Capgemini CardinalCommerce Cardlytics Cardstream Cartes Bancaires CB Cash Payment Solutions Cashfac Cashflows Europe Ltd Caxton CCgroup CCV Group BV CDC Group plc Cembra Money Bank AG Central Bank of Armenia Česká spoĐitelna, a.s.

Chargeback Help Chartwell Compliance Cinven Citi Citi Ventures Citigroup City of London Corporation CLEARBANK Cloud Elements Cloud Lending, a Q2 Co CoCoNet CCN GmbH COLLECT ARTIFICIAL INTELLIGENCE GMBH COMECO CommerzVentures Compass Plus Compensadora Electrónica S.A, ComplyTech CompoSecure ConsenSys Consult Hyperion Continuum Commerce Solutions Contis coparion Corsair Capital LLP Cosan

12 | ATTENDING COMPANIES | MONEY2020 EUROPE

CPG GmbH Credit Kudos Crédit Mutuel Credit Suisse Credit Union Central of Manitoba CRIF Croud CTC advanced GmbH Currencies Direct Cyberleads d-group Dalenys Payment Danske Bank Datatrans David Rabbi Law Firm De Nederlandsche Bank dejamobile Deloitte Deutsche Bank Deutsche Boerse Deutsche Kreditbank AG Deutscher Genossenschafts-Verlag eG DigiGamma DIMENSION SRL DIMOCO Payments Discover DLA Piper Dozens / Proj Imagine Dr. Thede Consulting DriveWealth DT One Dwolla DZ BANK EBANX Ltd (EMI) Edgar, Dunn & Company eftpos Payments Australia Ltd Egon Zehnder Eight Roads Eika ELITT Elliott Gotkine ELO SERVICOS SA EMAG IT RESEARCH eMerchantPay Emerge EMPLOYER EMS Endava Entree Capital Envestnet | Yodlee EOS Holding GmbH EPAM Epay Ltd equensWorldline Equifax Ernst & Young Ethoca Etsy EUROBANK Euroforum Deutschland GmbH Euromonitor International Euronet USA LLC European Central Bank European Women Payments Network (EWPN) Evercore Partners Everledger EveryPay EVRY EY

Attending companies

EY Innovalue Management Advisors EY LLP EZBOB Facebook FCA FDATA Featurespace Fédération bancaire française FedEx Cross Border Fern Software Fiducia & GAD IT AG FIME Financière des Paiements Electroniques Finansiell ID-teknik BID AB Fincog Finno Consult GmbH FINTECH Circle First Data FirstPartner FIS Fitek Fleetcor Fraugster Limited FRES FSS Technologies Funding Circle Future Finance G+D Currency Technology G+D Mobile Security G2 G4S Cash Solutions Galileo Processing Gartner GATE GCC Computers Ltd General Atlantic Georgia GIC Private Markets Private Limited Giesecke+Devrient Ventures GmbH Girl, Disrupted GIRMITI SOFTWARE PRIVATE LIMITED Glasthule Consulting UG Global Digital Finance Global Elite Pay Global Payments Global Technology Partners Goldman Sachs Gonggrijp Consultancy BV GoodBox Great Hill Partners Greenings International Greiðsluveitan GRUPO SURA GTAI GmbH GTP Limited Guggenheim Securities Habito Hamburger Sparkasse AG Hanseatic Bank Harding Loevner Hargreaves Lansdown Helios Investment Hellman & Friedman Here Mobility

Herr Hetz Ventures hiveonline HMS Consulting Group Hogan Lovells LLP Holvi Payment Solutions Hotmart B.V HPS HSBC Hyperwallet, a PayPal Service Ibanity iBe ICC Solutions Ltd ICD ICF Technology, Inc ICS Ictineo BaaS ID Finance Investments ID TECH IDA Ireland IDBank CJSC Idemia IDEMIA Danmark A/S IDEX Biometrics Idinvest Partners IDnow GmbH Ifintab LLC IFX Payments In-Q-Tel Index Ventures Indonusa Dwitama ING INKEF Capital InnoCells INSCALE Inside Secure INSIDE Secure B.V. InstaReM Intel Corporation Interac Corp.

Intermetro Locações Serviços POAH S International Card Services Intrepid Ventures Intrum Invest Lithuania Investec iovation IPF Digital AS ISABEL Isabel Group ISoft iwoca J.P. Morgan JCB International (Europe) jenID Solutions GmbH Joint Electronic Teller Services Limited JoomPay JP Morgan Judopay Jumio K&LGates Kabbage Inc Kakaobank Kantox Kasisto KBC Bank Kempen

Kidbrooke Advisory AB Kinnevik Kiwa Inspecta KKR & Co. L.P. Klarna Komplett Bank ASA konsentus Korn Ferry Landesbank Berlin AG Law firm ValiĐnas ir partneriai Ellex Lazard Leumi Card Level39 Leveris Ltd Levi9 LexisNexis Risk Solutions Liberis Libro Credit Union Linx Lloyds Bank Locke Lord LLP Lojas Renner S/A Lovell Minnick LoyaltyOne Luther Pendragon Lyra Network GmbH Macquarie Bank Margaris Ventures Marketflow Limited MarketforceLive Marks & Spencer plc Marqeta MASH Luxembourg S.A. Mastercard Max by Leumi Card MCI Capital McKinsey & Company Meeco Mega Charge Ltd MELLON TECHNOLOGIES Metro Bank Metro Bank PLC Microsoft MiddleGame Ventures MiFinity Ireland Limited Miramar Global Mobica Ltd Modo Modulr Moelis and Company Mollie B.V. Moneris MONEXT moneybase Moonshot-Internet Morgan Stanley Mostly AI Mourier gruppen MUFG Bank Municipality Finance MYPINPAD Naspers Nationwide Building Society Nayapay NC Advisory AB NCR Net Element Netcetera GmbH

A selection of MERCHANTS Attending companies

Netflix International B.V. Nets NFT Ventures AB NIBC Bank NOMURA Nordea Nordic Capital Nordic Makers Norwegian Tax Administration Notion Capital Managers NS8 NSW Government Nuapay Nykredit OakNorth Octopus Investments Olayan Group Oliver Wyman One Inc One4all OneSky Onespan OneTrust Oney ONPEX OP Financial Group Open Banking Opensolution OpenWrks Optal optile GmbH Optima Consultancy Oradian OSTHAVEN GmbH Otto (GmbH & Co KG) Own Solutions AC Limited Oxera Consulting LLP OZAN P3 Parallel ráðgjöf ParentPay Ltd Partners at Work Executive Search Pay2Z Ltd Pay360 by Capita Payconiq Netherlands PayKey Payly Payment Services Austr Payments & Cards Network Paymentwall Inc. PayNode / Avinode Payoneer PayPal Paypoint Paysafe Group Payvision B.V. Payworks Payzone Ireland Pedersen & Partners Per Ardua Associates Perigee Capital Partners Permira Advisers (London) Ltd PEX Ltd PiP iT Global PJT Partners Plaid Plan 3 GmbH Planet Merchant Services PLANET PAYMENT FRANCE

Plesner Law-firm Plug And Play Poalim Bank Point72 Ventures PostFinance SA PPI AG PPRO Financial Ltd PrecisionLender PrePay Solutions Prime Ventures Processing.NET Project Imagine Propel Venture Partners Providence PSG International PT Bank Central Asia, Tbk. Purple Technology s.r.o.

Q2 Qudos Bank Questrade Inc. Quontic Bank Rabobank Raiffeisen Bank Int Raiffeisen e-force Raisin Rakuten Europe Rapyd Ravelin RB RBS Remitly Resurs Bank AB Rewire.to RFi Group RISK IDENT Risk42 RJ Digital Roland Berger GmbH RS2 Software p.l.c RTP Global Rumos Consultoria Empresarial S-GE Sage UK Ltd Santander Sapient Ltd Saxo Bank Sbanken SBR Nexus Scanovate Schuberg Philis SecureKey Technologies Seedcamp Senacor Sensibill Serimag SHC GmbH & Co. KG Shopify Signicat Sila Silicon Valley Bank Silverpeak SIX Group AG Slide SoftBank Investment Advisers solarisBank Sonae Financial Serv Sparda-Mehrwert GmbH & Co. KG SpareBank 1 Østlandet

14 | ATTENDING COMPANIES | MONEY2020 EUROPE

SpareBank 1 SR-Bank Sparkassen-Finanzgruppe sparq Speedinvest Spencer Stuart Sprints Capital SR-Bank Standard Chartered Star Finanz GmbH Starling Bank Startupbootcamp State Savings Bank Luxembourg Stavební spoĐitelna České spoĐitelny STMicroelectronics Stripes Group Suade sunhill technologies gmbh sunmitech SunTec Supercharge Svx Swedbank SWIFT Swiss Bankers Prepaid Services AG Swiss National Bank Swiss Rail Swisscard AECS SwissWallet AG Switzerland Global Enterprise Sydbank A/S Symlink Corporation SYNGENIO AG TA Associates Tact Finance Oyj TagPay Talle Tatra banka TCV Telefónica Temasek Temenos TerraPay Terrapinn ME Thames Technology The Banker The Financial Ombudsman The Financial Services Club The Human Chain The LHOFT The Nederlandsche Bank The Paypers the prosperity company ag The Stars Group Thought Machine Thunes Thurgovia (France) SAS Tide Tieto TME AG Token Topicus Torch Partners TOSCAFUND Toyota Financial Services TPG Tradeplus Transact Payments

Attending companies

Tribe Payments trimplement GmbH TrueLayer Trulioo TruNarrative Trust Pay, a.s.

TrustEuAffairs Trustly Trustonic TSYS MEXICO Tully UBS UBS Switzerland AG Ucom LLC Unconventional Ventures Unicredit UniCredit S.p.A. UNIMONI LTD Universal Payment Transfer (UPT) UNIVERSUM Group Upay CJSC USSC Vacuumlabs.com Valitor Van Doorne N.V. Vanstone Electronic (Beijing) Co.Ltd. Varde Partners Various!

Velocity Capital Fintech Ventures Velocity Trade Vendorcom Verifi Inc. Vindicia Viola FinTech Viola Ventures Vipps Vitesse Vitruvian Partners Ltd Vodafone Vontobel Voogt Pijl & Partners Vostok Emerging Financ W-HA W.UP W2 Global Data Warburg Pincus WebPartners WePay Payments Ltd Western Union Whitepages Pro WIREBLOOM Wirecard Withpr Women in Payments World Economic Forum Worldline Worldpay WorldRemit XAC Automation Corp.

Xiamen PRT Technology Co., Ltd. Xpress Money Services XRL d.o.o.

YapStone YaWorks Yolt YouLend Zalando Payments GmbH Zopa

HOW TO FIGHT ACCOUNT TAKEOVER FRAUD WITH BIOMETRICBASED AUTHENTICATION Account takeover (ATO) fraud is damaging for businesses and individuals alike. And it’s on the rise, causing many enterprises to rethink authentication. Thanks to the dark web, phishing and social engineering, ATO fraud prevention is a rapidly growing challenge for online banking, payments, credit issuance, e-commerce, telecommunications and insurance.

At the same time, it’s becoming clear that commonly accepted methods for authentication, including knowledge-based authentication, SMS-based two-factor authentication and credit bureau pings, are not actually effective.

Account takeover (ATO) fraud is damaging for businesses and individuals alike. And it’s on the rise, causing many enterprises to rethink authentication. Thanks to the dark web, phishing and social engineering, ATO fraud prevention is a rapidly growing challenge for online banking, payments, credit issuance, e-commerce, telecommunications and insurance.

At the same time, it’s becoming clear that commonly accepted methods for authentication, including knowledge-based authentication, SMS-based two-factor authentication and credit bureau pings, are not actually effective.

Passwords are Inherently Weak Most people fall into one of two categories: they use one password for every account, or they use a slightly different password for every account. Both approaches

across multiple sites, cybercriminals may be able to take over your Gmail account and also access your online bank accounts. That’s why it shouldn’t be surprising that 80 to 90 percent of the people that log into a retailer’s e-commerce site are hackers using stolen data (source: Shape Security, 2018 Credential Spill Report). With this context, let’s dissect how account takeover attacks work and why modern enterprises need to rethink their authentication strategies to protect their ecosystems and mitigate fraud loss.

The Growth of ATO ATO occurs when thieves gain access to someone’s accounts, change the contact and security information and use it for some type of personal gain. In 2017, ATO cost U.S. businesses $5.1 billion, about three times as much as in 2016 and a four-year high (source: 2018 Identity Fraud Study, Javelin Research).

BREACH

DATE

RECORDS BREACH

COLLECTION 1

JANUARY 2019

1.2 BILLION

FACEBOOK

APRIL 2019

540 MILLION

MARRIOTT/STARWOOD

SEPTEMBER 2018

500 MILLION

EXACTIS

JUNE 2018

340 MILLION

FORTNITE

JANUARY 2019

200 MILLION

QUORA

DECEMBER 2018

100 MILLION

are ineffective. Only one percent of people know and care that passwords have patterns and those patterns can be tracked or broken (source: Preempt, March 2017).

Today, the average business user must keep track of nearly 200 passwords. If you use the same password 16 | THOUGHT LEADER | JUMIO

With ATO, hackers can gain access to an online banking account and send funds to their own account.

Frictionless payment systems are a blessing and a curse because they store billing information online, making it convenient for customers to make purchases. But, if a hacker discovers the login information, they can simply change the shipping address and start making online purchases.

How Fraudsters Get Your Account Credentials There are several ways cybercriminals can secure your account credentials, including:

Data Breaches: Large-scale breaches often involve usernames and passwords, which are almost immediately made available on the dark web. Let’s look at some of the largest breaches over the last year.

Phishing Attacks: Phishing attacks usually involve email, but can also be executed over the phone or via text message. The basic premise of phishing is to get you to hand over your login information. For example, a phishing email might pose as a customer support message that persuades you to click a link to a phishing site (a fake website designed to phish for information). These sites are often very realistic and prompt you to enter your login information, which is then stolen by criminals.

Phone Scams: This scam usually involves a person posing as someone else, such as a Microsoft representative who convinces you that your computer has a virus and then asks you to hand over remote access to your computer.

The criminal can then access any accounts you have credentials stored for. They may purport to be “testing” accounts and access them in plain sight, or they could use the remote access to install spyware.

How Does Account Takeover Work?

Once the account credentials are secured, fraudsters will try to attack login interfaces in an automated fashion and test them against other web services. By running a script against the login interface, attackers can test thousands of username and password combinations per second and find the working pairs. Once they find a “good” combination, they either take over the accounts right there and then or resell those verified credentials for a higher price on the dark web, as verified credentials are more valuable. For sites that only require a username and password, fraudsters can easily take over the account and change the password.

But if the account requires a username, password and a one-time code, or a biometrics verification, then the fraudster will need to access that information to take over the account which raises the degree of difficulty.

Several years ago, NIST warned that SMS-based two-factor authentication was not as secure as other authentication schemes because of man-in-the-middle attacks, phishing and credential stuffing. Since the dark web and online fraud have become more sophisticated, traditional forms of authentication can no longer reliably ensure that the person logging into their online account is the actual account owner. Physical biometrics, on the other hand, are much harder to access for the average fraudster.

Face-Based Authentication to the Rescue Face-based biometric authentication is not only far more convenient for consumers than traditional methods of online verification, but it is also much more secure. The biometric data cannot be hacked or duplicated. The data can be kept on the device, rather than on a server or in the cloud, and can remain secure even if the device is stolen.

Just as important, facial biometrics offers a simple one-step solution to the problem of remembering a vast array of PIN codes and passwords. Given our collective obsession with our smartphones, it’s not surprising that face-based biometrics are becoming the most popular method of authentication thanks in large part to Apple’s Face ID.

PHILIPP POINTNER Chief Product Officer Philipp serves as Chief Product Officer at Jumio, the leading provider of ID verification technology and services for financial services, travel, sharing economy, gaming and cryptocurrency sectors. A product visionary and leader in the global financial services and e-commerce spaces, Philipp has successfully led products for over a decade. He is a frequent speaker at conferences and meet-ups, sharing his passion for product leadership, product management, strategy and vision development.

ABOUT JUMIO Jumio helps organizations meet regulatory compliance including KYC, AML and GDPR through cutting-edge online identity verification and authentication services that quickly and accurately connect a person’s online and real-world identities. Jumio has verified more than 180 million identities issued by over 200 countries from real time web and mobile transactions.

Now, let’s assume authentication is now required for account access. Instead of relying on a username and password, the user only needs to capture a new selfie.

Because a complete face map was captured when the account was created, the user just needs to take a fresh selfie (one close up and one a little further away). A new face map is then compared to the original 3D face map captured during enrollment and a match/no match decision is made. This authentication process takes just seconds to complete. This type of authentication enables online businesses to reliably authenticate users for regular logins, high-risk transactions and for a variety of emerging use cases. And most importantly, it nullifies the risk of ATO since it does not rely on a username and password which could have easily been stolen.

How Face-Based Authentication Works

Time to Say Goodbye to the Password

There are several methods of emerging biometricbased authentication, so let me briefly explain Jumio’s approach to face-based authentication to paint a picture of how this works in practice. This new approach starts with the new user capturing their government-issued ID and a selfie when they’re creating a new online account.

The picture on the ID document is then compared to the selfie to deliver a definitive match/no match decision.

As part of the identity proofing process, a face-based authentication solution can create a 3D face map of the user, which is then stored and bound to the new customer during the initial enrollment process. 3D face-mapping contains 100 times more data points than a 2D photo, and is required to accurately recognize the correct user’s face while concurrently verifying their human liveness.

Unless banks and payments companies make a concerted effort to address account takeovers, they will continue to be victimized. Fraudsters can not only divert funds through account takeovers, but they can also access other data like personal information and card numbers to inflict even more damage on consumers and the financial institutions they trust. Because ATO fraud looks like activity by a trusted customer, detection is difficult.

This demands a fresh perspective. It means moving away from the username and password approach to user authentication. While we may be a few years away from killing the password, we’re starting to see the increased adoption of face-based authentication in the payments and financial services space. Biometric authentication not only gives your customers greater peace of mind, it’s a powerful disincentive to fraudsters who generally don’t want to share their own photo or selfie or go through a liveness check.

More advanced solutions will include liveness detection during this step. Spoofing attacks by fraudsters are on the rise to fool the selfie requirement. Spoofing attempts generally use a photo, video or a different substitute for an authorized person’s face in order to acquire someone else’s privileges or access rights. To foil these attempts, modern identity verification companies leverage certified liveness detection that captures biometric data through a smartphone’s front-facing selfie camera or a computer’s webcam.

18 | THOUGHT LEADER | JUMIO

With biometric authentication, the risks are just too high for the fraudster. Face-based authentication is a breeze for legitimate users but creates multiple hurdles for scammers who more often than not, will chaser easier targets — targets that still rely on a simple username and password form of authentication.

Business France was created to support the international development of the French economy.

It is a government agency, but it’s not about the government imposing its vision, it’s about widening companies’ perspectives especially for start-ups and innovative SMEs. As the operator at an international level of “La French tech”, a major collective effort to bolster the growth and standing of French digital start-ups, Business France fosters opportunities for French companies to meet international players that are interested in partnering with the rapidly growing French Tech industry.

www.businessfrance.fr

Contact Claire Ferté for more information FinTech-InsurTech project manager claire.ferte@businessfrance.fr + 33 (0)6 69 32 66 90

11 fintechs including Dejamobile, Toucan Toco, Younited and others will be part of the French delegation for Money20/20 Europe, meet them under the French Tech Banner.

Meet them on booth K20 to find your next partner to work with!

Specialized in blockchain solutions for the financial sector, it offers its own access platform to blockchain technology to facilitate and accelerate projects in the sector.

AntelopSolutions provides a complete set of services for mobile payments that includes a smartphone app, plus each and every server component for bank information systems.

ARIADNEXT helps fight against fraud and crime by offering an automated, real-time verification solution for ID documents and other supporting items, as well as the verification of the user’s ID.

Younited provides a white label Credit-as-a-Service platform for partners to quickly launch and easily manage their own online unsecured lending pro-gram.

Famoco provides Android B2B mobile devices, a B2B OS and a mobile device management platform to enable seamless deployments.

Ubble.ai is solving the issue of securely validating consumers identity, by combining Video Streams, Computer Vision & Deep Learning, in a state-ofthe art web-app, optimized for UX.

One of Europe’s leaders in carrier billing, W-HA has also developed its own payment platform by including a large number of additional technologies in the fields of prepaid services, electronic money and POS or on-line electronic banking solu-tion.

Mipise creates white-label cowdfunding platforms, it provides a versatile and customizable technical solution fitted with an integrated payment sys-tem.

Toucan Toco deploys simple, clear and operational data storytelling applications to the entire enterprise through data visualization.

Deja mobile helps busi-nesses and organizations to develop interactive and secure mobile services using contactless and proximity technologies (NFC, QR Code and Bluetooth Smart) in the areas of payment, retail and transport.

StreamMind is a software editor which creates and deploys next-generation digital solutions such as transactional and mes-saging software solutions

EXCLUSIVE INTERVIEW WITH HARESH HEMRAJANI FROM FSS TECHNOLOGIES Could you share with our readers a brief intro related to FSS and its payments processing service in India?

What is the companyʼs background and what are your main activities in the Indian market?

First of all, I would like to thank Payments & Cards Magazine for this Q&A session and providing us the opportunity to introduce FSS to your esteem readers. FSS delivers worldclass payments technology platform and products to our customers around the world. We cater to the entire spectrum of payment needs for banks/fintechs/processors from transaction origination to switching to reconciliation.

Our product portfolio spans issuance, omni-channel payment acceptance (ATM’s/POS/Online/Mobile), transaction switching and processing, analytics, 3D Secure and reconciliation. Collectively, we service 100+ leading financial institutions globally and our solutions directly impact an approximate 5% of the world’s population.

What are your USPʼs? How do you differentiate from your competitors in the market?

I’ve been fortunate enough to gain experience in other leading organizations, but I have never met so many talented individuals dedicated to the future of payments as I have since I joined FSS. Our USP lies in our clear, determined focus on payments and as the world evolves from generalist to specialist, FSS is the ideal partner to facilitate the digital payments transformation journey of our clients. FSS has been in the payments domain for 28 years, so our experience is deep and wide. Our clients include banks, central regulators, governments, financial intermediaries including third-party electronic payment processors, merchants and payment associations in Indian sub-continent, Europe, Middle East and Africa, Asia Pacific, Australia and North America. Our 3,000+ payments experts are able to tap into this rich pool of experience, deliver and even compete with considerable

20 | EXPERT INTERVIEW | FSS TECHNOLOGIES

agility – as we’re now seeing in Europe.

Our solutions also provide customers the flexibility to pick and choose components from any of our core product stacks – acquiring, issuing, analytics and back-office. To cite an example; with our Payments-in-a-Box solution a challenger bank in Asia was able to go live within six weeks, with services ranging from payments processing, card management, reconciliation to payment gateway for e-commerce, and biometric-enabled payments for financial inclusion. In addition, we support a wide range of business models providing enormous business flexibility to banks of all sizes: licensed, Platform as-a-service and FSS private cloud.

Operating all over the world, where do you see the biggest opportunity in Europe and how do you anticipate the different needs across countries?

We are seeing substantial interest in our solutions and services evidenced with our recent signing of five new clients in Europe over the past 12 months. This is a testament to the fundamental power of our technology, solutions and services.

Digitization, shifting consumer preferences and regulatory reforms continue to fuel Europe’s importance as an influencer in the development of payments. But as we’ve seen elsewhere, the fundamental concept of a trusted institution acting as a store of value, a source of finance and as a facilitator of transactions remains unchanged and is the same for a bank in Amsterdam as it is in Atlanta. Customer demand has, however, changed significantly and requires banks to adapt at a pace they have not encountered before. In Europe we believe there are some particular drivers which will spread beyond its borders, just as we saw with contactless and chip & pin, the success of both supported by some of the region’s most diverse markets:

1) We are living in an experience economy. Customer expectations are evolving at a faster pace and European banks are particularly raising the bar and experimenting with how AI-enabled functionality such as chatbots and predictive learning can increase customer satisfaction while increasing operational efficiencies and creating growth opportunities.

2) Accelerated API-fication of Innovation. With new entrants and regulations including PSD2 in Europe, APIs have gained renewed business relevance with a number of European banks at the forefront in this area.

3) Rise of Real-Time Transaction Rails. Europe is now a market where faster payments/instant payments infrastructure is centrally mandated and managed. In a world of immediate payments, a different set of capabilities is needed including 24x7 support for retail and business clients, supported by strengthened anti-fraud activities adjusted to real-time processing requirements. Risk and treasury functions will also need to raise their game in liquidity management to monitor, manage and fund transactions across the defined settlement time intervals during the 24x365 timeframe.

With some interesting developments going on right now around open banking, PSD2 and instant payments, how is FSS acting on those?

We recognize that the payments ecosystem will be frictionless, open, instant and with context. With several developments happening in Europe, our initial focus has been specifically at the adoption of 3DSecure 2.0 for strong customer authentication demanded by PSD2. Specifically, on PSD2, our solutions are embedded with open API’s that can be consumed by the new emerging TPP’s. In parallel, we are augmenting our API gateway to support the PSD2 services.

In Europe, payments have swiftly moved from being a functional utility to becoming a vital part of a winning customer experience where pre and post purchase activities including search, comparison, selection, payment, and rewards operate seamlessly together. We are adapting our own support and services to ensure that our clients across the region can support this increasing demand for frictionless, compliant and immediate payments in what is an unprecedented ‘open banking’ environment.

Last year FSS launched FSSPay. What are the benefits of working with FSSPay? FSSPay is a two-sided services platform connecting merchants and banks. The platform aggregates merchants on the one side and banks on the other and assumes complete responsibility for transaction processing, currency conversion for international transactions, reporting settlement and clearing. Merchants benefit, as a single connection to the platform provides connectivity to multiple domestic and international banks. This effectively converts a substantive proportion of off-us payments to on-us transactions, significantly lowering merchant discount rates. Acquirers benefit as they have a single view of the merchant, enabling them to optimally manage a large portfolio of merchants.

HARESH HEMRAJANI Regional General Manager Haresh joined FSS Technologies in November 2017 as their Regional General Manager responsible for establishing FSS’ licensing and processing services across the Europe region, defining and delivering regional strategy through the sales, delivery and operations team across multiple customers and markets. His focus has been on increasing competitiveness, improving customer experience, improving employee engagement and increasing the depth of services.

ABOUT FSS TECHNOLOGIES FSS Technologies is a leader in payments technology and transaction processing.

FSS offers an integrated portfolio of software products, hosted payment services and software solutions built over 28+ years of experience. FSS, end-toend payments products suite, powers retail delivery channels including ATM, POS, Internet and Mobile as well as critical back-end functions including cards management, reconciliation, settlement, merchant management and device monitoring. Headquartered in India, FSS services leading global banks, financial institutions, processors, central regulators and governments across North America, UK/Europe, Middle East, Africa and APAC. For more information visit www.fsstech.com.

What are some of the future developments of FSS in the coming period?

At FSS, 60/30/10 model forms the underpinning of our growth model. Essentially, this means 40% of investments at any point of time would be directed towards innovations in the mid-term and the long-term. FSS is making significant investments in artificial intelligence and machine learning to drive our next phase of growth, by adding business value to our customers across a wide range of applications including Digital Banking, Payment Analytics, Digital Security, Reconciliation, ATM Monitoring and Data Centre Operations. For example, we were early adopters of the 3DS 2.0 specification and are the few vendors certified by the Schemes for our Secure3D product. Our solution couples advanced identity centric approaches including behavioral and

22 | EXPERT INTERVIEW | FSS TECHNOLOGIES

biometric based authentication backed by analytics.

This enables service providers to authenticate customers in the background in line with customer demographic, transactional, location and risk profile.

How do you see the future of payments and how does FSS work towards those?

The future of payments will largely be open, ambient, invisible and instant. We have just touched the surface and the potential is unlimited. Open banking is already creating a platform for greater cooperation and collaboration between banks and TPP’s to help enhance the digital payments space, which is why we want to help banks better manage their investment in analytics, AI, open banking, voice commerce and chatbot commerce.

FSS have several key solutions that we will launch in Europe and globally to capture this momentum.

250+

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EVERYPAY - EMPOWERING BANKS IN DIGITAL PAYMENTS Every quarter there is a study or an article predicting that banks will be out of business in the future. Gartner pointed out that 80% of today’s financial firms will be made irrelevant by 2030.

Another study recently forecasted that 1 in 10 banks will disappear within the next five years. One of the key reasons behind these predictions is that traditional banks are not meeting the market needs, trends and expectations, and they are not able to keep up with the pace of digitalisation. That all leads to decreased customer satisfaction and loss of revenues.

Digital payments are growing each year because consumers like the freedom that it brings. We are no longer used to paying for a taxi ride but instead, we just say “thank you and bye” to the driver knowing that the taxi app takes care of the payment.

We are listening to music, watching movies, receiving flowers etc. without touching the wallet. These are just a few use cases in which digital payments make our lives convenient. We love it and our service providers want to enable us such frictionless payment processes.

As digital payments are growing so should be the acquiring revenues. However, a vast number of acquiring banks are missing out on the opportunity.

24 | STARTUP SPOTLIGHT | EVERYPAY

Their acquiring solutions are not meeting the market expectations and they are not enabling their merchants to provide the leading edge payment solutions.

Therefore they are losing their customers to third-party PSP’s together with all potential revenues from the acquiring business.

Very often the reason for not having a decent payment gateway solution is a lack of sufficient time and/or IT resources. Rise of the burden of regulations has been shifting all focus on keeping the core systems up and running. Though not focusing on improving the digital payments’ offering results in missing the opportunity of growing acquiring revenues and eventually make you become irrelevant.

Fintechs are very often blamed on taking the business from banks and posing the threat of going out of business. EveryPay is a different kind of a fintech as it empowers banks and processing centres with its fully cloud-based and world-class payment gateway platform helping them to stay relevant and take advantage of boosting the digital payments trends.

EveryPay’s fully cloud-based platform is secure and future proof offering the same features as the leading third-party PSP’s. It is continuously improving, hence requires no IT effort from banks saving them time, resources and the total cost of ownership of the payment gateway solution. The platform comes as white-label meaning that every acquirer can offer EveryPay payment gateway platform as their own solution supported by branding and helping banks to secure more merchants and increase the acquiring revenues. Amongst many features the EveryPay platform provides a sophisticated set of tools for both the acquiring and merchant side of the fraud prevention and risk mitigation.

Apart from the technical solution EveryPay also provides multilingual customer support that takes another burden from an acquirer letting them focus more on their core business.

A payment gateway is a logical piece of a solution to outsource as it is independent enough and requires minimal interaction with the other banking systems. The EveryPay platform will be integrated with the acquirers’ processing centre or solution allowing banks to keep their clearing and settlement processes.

On the other hand, the platform is flexible enough to meet and facilitate more demanding business processes.

For visualization you can find additional input of the beta version here: https://banks.every-pay.com/

LAURI TEDER CEO & CO-Founder Lauri Teder is the CEO and a co-founder of EveryPay. He has built EveryPay from the ground up - from the idea itself to the leading payment gateway partner in the Baltics. Lauri has been working at Fujitsu in senior roles and participating in many e-Estonia governmental IT projects.

ABOUT EVERYPAY EveryPay provides a fully could-based white-label payment gateway platform helping acquirers and processing centres to stay relevant in the digital payments’ scene. Our best-in-class payment solution gives acquiring service providers access to state-of-the-art and continuously improving payment gateway platform with all the relevant tools to manage the acquiring side of eCommerce.

DIVERSITY IS NOT JUST THE LATEST HOT TOPIC Miranda McLean, SVP Global Head of Marketing at Banking Circle and Executive Board Member of EWPN reveals how inclusion and diversity have the potential to change the industry for the better - if only the industry would get onboard.

Black Lives Matter. #MeToo. The gender pay gap. Mental health awareness. Inclusion and diversity are hitting the headlines around the world, and it‘s long overdue. But is it making a difference, or is everyone just jumping on the bandwagon of the latest hot topic alongside veganism and cutting down on single use plastic?

Whilst EWPN (European Women Payments Network) focuses on gender parity within payments and FinTech, we are also committed to increasing diversity and inclusion in all areas. Intersectionality, race, ethnicity, sexual orientation/identity, to name a few. Now we want to go further.

We want to get the industry talking about and understanding all areas of diversity, making real change for the sake of future generations. If this industry continues to be dominated by middle-class, middle-aged men, how can we expect to encourage the next generation into payments and finance? When it seems there are opportunities only for certain types of people to progress to the top, is this a deterrent for generation Z?

of Marketing, we have recently commissioned research that brings together insights and experiences from over 300 banking and finance professionals. The aim of the collaborative project was to reveal where the industry sits today. For example: discrimination individuals experience at work, opinions on industry efforts to enact change and whether those working in the industry have seen positive changes take place.

A new report – End of the Tunnel - looks at the findings, along with wider market insight on the issue of diversity and inclusion and what can be done to help to bring an end to the institutionalised tunnel-vision.

A snapshot Key findings from the research suggest that, despite the current focus, we have yet to see meaningful change occur.

Arguably the most revealing finding was that within an industry heavily-dominated by men, 60% of those who responded to our invitation and took part in the survey were women. This could suggest that the women we invited to take part see the importance of the issues more clearly and were, therefore, more inclined to provide feedback than the men we invited.

Women account for just 2% of financial services CEOs and less than 20% of executive board members. The Bank of England is failing to meet its gender diversity targets. Japan’s Mizuho has admitted that only 3% of its senior staff are women. And, just 10% of management jobs in the UK are held by members of the black, Asian and ethnic minority (BAME) community.

Other key findings include the 27% who feel there is a gender imbalance in their current company, and the 38.5% who felt that they have not been given the same opportunities and/or reward as others due to their gender.

Specialist recruiter Randstad recently claimed that the UK economy would be £24bn bigger if those from BAME backgrounds progressed in their careers at the same pace as their white colleagues. McKinsey and Company’s report ‘Delivering Through Diversity’ showed that companies in the top 25% for ethnic diversity were 33% more likely to achieve profit above the industry average.

The report also showed that more ethnically diverse boards were 43% more likely to outperform on profits and those in the top 25% for gender diversity were 21% more likely to achieve profit above the industry average. There is still much work to be done. And working with financial utility, Banking Circle, where I am SVP and Global Head

46% of our respondents have felt the need to falsify, hide or deliberately not disclose at least one element of their identity: 19% have hidden their age; 20% their political or social beliefs; 12% their religious beliefs and 8% their level of education. 5.5% have even had cause to hide their gender. Many respondents told us they have hidden their status as a parent or expectant parent, and some have even felt the need to hide a disability. It is, however, encouraging to see that the proportion of respondents who feel that increasing diversity would be beneficial (88% recognise potential benefits) far outweighs those who have direct experience of discrimination. But over half (59%) do not believe the industry does enough to encourage

26 | THOUGHT LEADER | EWPN

gender parity and diversity with respect to opportunity and pay.

This gives a clear indication that the wider industry is ready to get on board and work together to improve diversity, inclusion and equality. But it has some way to go and this will not be an overnight turnaround. Nor will it be an easy change, occurring naturally as the older generation retires, as some of our survey respondents hope.

A commitment to on-going research With each generation our society becomes more diverse, yet the workforce within financial services has not kept up and does not mirror the rich diversity of society. Diversity breeds creativity, innovation, wellness, employee satisfaction, lower staff turnover, better customer service, increased profits.

No organisation, individual or even government can have the necessary impact in silo. We need to stand together, work together, learn together and make changes together. If we sit back and wait for change to happen, it won’t. For that reason, the study conducted in partnership with Banking Circle is just the first of a number of research projects to be undertaken by EWPN in 2019 and beyond. Research based knowledge and the questions that such knowledge and insight deliver have the potential to drive great commercial value as well as improve social awareness. How companies relate to issues of gender and diversity has an effect on commercial; reputational and organisational dimensions.

Companies that promote and seek to have diversity in their workforce and decision-making abilities tend to innovate more and do better commercially. They also tend to attract and retain better talent. The wider EWPN research programme, therefore, seeks to support and inspire collaboration and knowledge sharing between companies in payments and FinTech; not-for profit and academia. The aim is to foster knowledge production and collaboration that will benefit the sector as a whole as well as EWPN members specifically. EWPN has experienced researchers in its network who are in engaged in these issues, but as a non-for-profit organisation it is crucial we also receive support from companies in our industry to enable us to secure the widest possible insight.

We are already partnering with the Emerging Payments Association to pool resources and data and our collaboration with Banking Circle demonstrates the value that can be delivered by working together. Any other business interested in working with EWPN should contact Stanley Skoglund (stanley@ ewpn.eu).

Getting the message out wider We believe, at EWPN, that the wider the reach for our messages, the more positive impact that can be achieved. We have, therefore, just signed an alliance with Wnet – the USbased equivalent network to EWPN. Wnet (Women’s Network in Electronic Transactions) launched in 2005 and is the premier professional organisation for women in payments and the

MIRANDA MCLEAN SVP, Global Head of Marketing at Banking Circle

Miranda McLean, SVP, Global Head of Marketing at ground-breaking financial utility, Banking Circle, has built a considerable reputation for developing and executing successful marketing strategies for a wide range of financial services businesses over more than two decades. In 2015 Miranda was appointed by payments start-up Saxo Payments (now Banking Circle) to create the brand identity and marketing strategy which has taken the cross border financial utility to a multi-million-dollar business within three years. Miranda is also on the Executive Board of the European Women Payments Network which has the primary objective of championing diversity and inclusion in the financial sector.

ABOUT EWPN European Women Payments Network (EWPN) is the first and only pan-European not-for-profit organisation for women working in the Banking, FinTech and Payments industries in Europe. EWPN provides a platform that inspires, empowers and mentors women in financial services to help them realise their full potential and position themselves for greater personal success whilst continuing to develop and contribute to their industry. EWPN is the first European wide platform specific to women working in Banking, FinTech and Payments irrespective of the level they have attained in their careers. EWPN’s primary objective is to champion diversity and inclusion (not just gender) in the financial sector.

men who advocate for them. The organisation serves over 1,500 women each year in the US, through events, information and knowledge sharing and networking opportunities.

We believe this exciting alliance will see EWPN and Wnet working together, leveraging both networks for the benefit of all our combined members.

Wnet has been running for a decade longer than EWPN, and we look forward to learning from our US colleagues.

Both networks are dedicated to improving prospects for all women in the payments industry, increasing inclusivity and diversity. Sharing our insights, knowledge and membership will make us both stronger and allow us to bring about change as quickly as possible.

We will also publish events run by both organisations on both websites, inviting members to attend and to become members of both networks.

28 | THOUGHT LEADER | EWPN

We will share knowledge and leverage expertise across both sides of the Atlantic by sharing research, blogs, white papers, content for newsletters and lists of expert speakers.

In addition to all that, Wnet members will be invited to attend EWPN local meet-ups throughout the year, and the annual conference, which is the only Pan-European Conference focused on women working in FinTech & Payments. EWPN members will also be invited to attend all Wnet events, including the annual Leadership Summit, local network events and valuable webinars.

EWPN aims to provide the platform for industry-wide conversation which brings about real change for the benefit of this and future generations working in and using the services of the financial industry.

The full report, ‘End Of The Tunnel – Seeking the light: inclusion, diversity and the end of institutionalised tunnel-vision’, is available to download for free at bankingcircle.com

Would you like to be a sponsor or have a special feature in the Payments & Cards Magazine?

Please contact Jelmer Rotteveel, Marketing & Business Development Manager at Payments & Cards Network: jelmer@teampcn.com

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Cyber Security Leaders Exchange Australia 34 | EVENTS

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