Meaghan Johnson

"Widespread acceptance of digital euro among general public", according to the latest survey by Deutsche Bundesbank on the Digital Euro. But "there are still gaps in the general public’s knowledge about the planned new means of payment." About 2,000 people have been surveyed in April 2024. Key findings: 🤔 The majority of people surveyed (59%) have not heard of the Digital Euro before. In my opinion, this is not surprising. As The Economist would would probably phrase it, CBDC is currently still a topic for technology and policy wonks. 🤝 Widespread acceptance of Digital Euro among general public: "half of the respondents could generally imagine using a digital euro as an additional payment option". The people who had not heard of the Digital Euro before are also open to that. 🤫 People are particularly concerned about protecting their privacy. This is abundantly clear and repeated over and over in various surveys. Among all properties in question, privacy was ranked first: 76% of respondents call it "important" or "very important". 🇪🇺 Most people want the Digital Euro to be based on European infrastructure. This is a runner-up to privacy, with 72% of respondents emphasizing this property. According to Bundesbank, this means that the Digital Euro "would function independently of global political events or decisions". 👩‍🏫 There is more education needed. The study points out some "fundamental misunderstandings" even in the group of people who had already heard about the Digital Euro. For example, "15% believed that the digital euro was intended to replace cash and 12% [...] that cash would be abolished". The opposite is true, emphasized by the Single Currency Package draft legislation introduced by the European Commission (https://lnkd.in/dxFgGNim). 🔄 There are some significant overlaps with the findings of a 2021 study jointly conducted by Giesecke+Devrient and OMFIF, surveying 3,000 consumers in four countries. For example, privacy and offline capability rank high in both studies. Sources: Bundesbank (https://lnkd.in/dqRpUr9s), G+D (https://lnkd.in/dCbrDXrx) Digital euro (official page) #DigitalEuro #CBDC #RetailCBDC

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What are the three things banks need to focus on today? - Prioritise which use cases to put into production - Create an environment in which they can experiment - Ensure that they do not fall behind their competition What key factors will help banks achieve this? - Hire, maintain and foster the right AI talent Our data shows that the world’s biggest banks increased AI talent headcount by 9% over the past six months—double the rate of overall headcount growth. Within this, JPMorgan Chase & Co. Chase leads for overall volume of AI talent, with Capital One for AI talent density Thank you to Rocio Fabbro for this piece in Quartz, featuring insights from our latest Dispatch on AI talent in the banks Read the full article here: https://lnkd.in/e2dR8Q4s To find out what roles are driving this surge in banking AI talent, download an excerpt here: https://lnkd.in/e45R2CgB Want to find out more about AI x Banking? Sign up for our newsletter, delivered straight to your inbox every fortnight, here: https://lnkd.in/ebAP8avi #evident #ai #artificialintelligence #banking #finance

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🌐Benchmarking Success: Comparative Insights into Digital Banking Performance in 2024 As the digital banking landscape evolves, major players like Nubank, Revolut, Monzo Bank, and Starling Bank continue to adapt and innovate. C-Innovation's latest blog by Linda Souak dives deep into their performances, shedding light on key indicators and strategic insights. 📈 Key Performance Insights: ● Nubank astounds with a remarkable financial turnaround, posting $1,030m in profits and an impressive revenue surge to $8,028m, demonstrating effective cost management and aggressive market penetration. ● Revolut transitions from red to black, achieving profitability in 2021 with smart diversification and technological advancements, expecting to boost revenue to $1,875 million for 2023. ● Monzo's growth and market expansion have been steady, but profitability has been elusive. However, with last year's achievement of monthly profitability, there's optimism about maintaining this trend in the 2024 financial statements. Monzo aims for this year to signal a clear path to sustained profitability. ● Starling Bank showcases a sustainable growth model with a profit of $179m, supported by strong customer deposits and a focus on both retail and business sectors. 📊 Market Valuations and Customer Engagement: ● Nubank leads with a market cap of $51.8 B and a customer base of 95 million, demonstrating a high ARPU of $84.5. ● Revolut has the lowest ARPU at $30.3, potentially reflecting its previous strategy of attracting a high volume of users with low-cost services, while it holds a significant valuation of $25.7B, as last week emerged that Schroders Capital Global Innovation Trust has revalued its stake in Revolut upward by 45%, underscoring its solid market positioning and the optimism surrounding its financial trajectory ● On its side, Starling is in a phase of stabilization following the departure of its CEO in June 2023. With Raman Bhatia now at the forefront as the new CEO, the challenge lies in maintaining the strong performance figures the bank has shown, including robust growth in deposits and customer engagement, along with impressive ARPU statistics. 🔍 The Rising Trajectory of Digital Banks: Digital banks' sustained growth and effective operations showcase their financial solidity and strategic savvy. Their skill in customer retention, revenue generation, and regulatory navigation strengthens their market valuations and competitive stance. Today's trends indicate these institutions are not merely surviving; they're thriving, evolving, and innovating for today's financial consumer. 💡 Dive into the full analysis to understand how these digital banks are setting the benchmarks for success. https://lnkd.in/e_Ku9aE2 #cinnovation #financialservices #banques #banca #bankingindustry #fintechs #businessmodels #digitalbanking #banking #strategy #openbanking

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One to watch: #wero / #EPI has launched 🇩🇪 - noting that few pan-European payment projects succeed. Some of the raw ingredients are there though: ✅ Own your own infra (#iDEAL 🇳🇱 and Payconiq International 🇱🇺) ✅ Start with person-to-person (#P2P) to build a brand and trust (cf. M-PESA Africa 🇰🇪 , Swish 🇸🇪 etc.) But embedding the #wallet within existing bank apps, rather than launch a new app? That strikes me as a costly mistake: ❌ No strategic control over service evolution (cf. #PayM 🇬🇧 🪦) ❌ Your new brand is secondary, if visible at all (cf. #MasterPass 🌎 🪦 ) Which is why I like the approach taken by (and so have invested in) TABBx and their app https://TABBit.uk - an open-loop, free-to-use service for P2P payments using #OpenBanking - in line with conclusion 5 of the Future of Payments Review by Joe Garner. Bottom line: they own their brand, it works with every bank, and you don't have to sign up to the TABBit app to pay someone back (no friction to use and adoption) #fintech #payments #startup #angel #venturecapital #request2pay #R2P #Account2Account #A2A https://lnkd.in/eYs2ZpYv

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Global Digital Banking Trends Unveiled in C-Innovation's Digest - May https://lnkd.in/eYqdEbag 📈 Lending-focused business models in digital banking demonstrate sustainable growth. Lending-centric models in digital banking are thriving. Allica Bank joins profitable SME lenders in Europe like OakNorth, Aprila Bank, Starling Bank, and Redwood Bank. Their success lies in leveraging sustainable revenue streams and diversified portfolios. 💡 Investment platforms are spearheading innovation and growth into banking services. Fintech pioneers are reshaping finance with integrated, accessible services. Robinhood expands into banking, boosting financial engagement. Trade Republic's new banking license broadens services across Europe. Wealthfront integrates innovative features to become a holistic financial services provider. 🌍 Digital Banks' Continued Pursuit of the USA Market. with some, like Klarna and OakNorth, succeeding. Monzo's $610 million funding round boosts its US expansion. Klarna's US growth, driven by by Lower Costs and Increased Scale. While, OakNorth's careful US entry results in notable growth and financial health. 🤖 Digital brands are rapidly leveraging AI to enhance customer service and operational efficiency, directly impacting their balance sheets. Lunar's 84% revenue increase in 2023. Among the notable milestones was the beta launch of Lunar's AI Co-pilot. AI has been transformative for Klarna, driving substantial cost savings and enhancing customer service. In Q1 2024, Klarna cut sales and marketing spend by 11%, saving approximately $10 million annually. 🔗 Expanding Ecosystems and Technology Integration Digital banking now includes health, lifestyle, and education services. The C-Innovation podcast with 42flows.tech ' Igor Luzhanskiy highlights how banks integrate broader ecosystems and technologies, like Banking-as-a-Service (BaaS), to enhance access and create new revenue streams. These trends encapsulate the evolving landscape of the digital banking industry, highlighting how strategic foresight, services integration, and an acute focus on regulatory and market dynamics are crucial in shaping the future of banking. Stay informed with C-Innovation's newsletter! Read more https://lnkd.in/eYqdEbag #Fintech #DigitalBanking #CInnovation #FinancialServices #banques #banca #bankingindustry #businessmodels #digitalbanking #banking #strategy #openbanking #Banken #ai

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#AIFA2024 is clearly the place to be for #AIAdviceTech suppliers with over 40% of the audience, predominantly of larger adviser firms yet to decide on their suppliers & another 35% deciding if AI is the right way to go. #AdviceTech #FinTech

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🚀 Introducing Allica Bank's SME deep-dive: "Accelerating Growth: Allica Bank's Innovative Approach in SME Lending" 📈 In the ever-changing landscape of digital banking, it's vital to grasp market adaptations and strategic foresight. C-Innovation's latest report examines SME dynamics, focusing on Allica Bank's rapid growth and innovative approach. The research offers a detailed look at Allica's journey, highlighting key milestones, strategic insights, and future prospects. 🔍 Key Insights: Allica's Growth Journey ● Licensing Foundation: Allica Bank's 2019 banking license laid the groundwork for growth, ensuring security, trust, and a strong organizational structure. ● Strategic Market Entry: Allica strategically rolled out products, from business mortgages to asset finance, prioritizing human relationships, tailored expertise, and powerful technology. ● Expansion into Full-Service Banking: Allica advances its full-service banking franchise, positioning its latest offering, the Business Rewards Account, at the core of its expansion Marketing Boost and Acquisition Strategy ● Marketing Boost: In 2023, Allica increased its marketing spend to £3.3m, launching the 'Orange Hat Bank' campaign and reaching 2,000 Business Reward Account customers. ● Acquisition Strategy: Acquiring AIB Group (UK)'s SME portfolio enhances Allica's lending capacity, boosting business development and maintaining an opportunistic approach to acquisitions. Market Dynamics & Competitive Landscape ● The landscape of SME lending is witnessing a significant shift, with challenger and specialist banks surpassing the big five for the third consecutive year. ● Digital banks and specialist lenders now hold a record 59% market share, providing £11bn more lending than traditional banks. ● Allica stands out as a leading challenger bank in SME lending, particularly with popular finance types like buy-to-let and commercial mortgages. ● Allica Bank outpaces competitors in recent SME lending growth. ● OakNorth maintains UK's leadership with a total lending balance of £5.3bn as of 2023. ● Allica has shown significant growth in customer numbers and deposits, reflecting its strong market position. ● UK neobanks thriving in SME lending show strong profitability and valuations, with Allica Bank reaching its first full-year of profitability just three years after starting SME lending. UK neobanks excel in SME lending, with Allica Bank standing out as a key player. Anticipate continued innovation and growth as competition heats up, transforming the SME lending market. 🔗 Get the comprehensive report here https://lnkd.in/dvZZsTXA. #deepdivecollection #DigitalBanking #FinTech #banken #financialservices #cinnovation #banque #banca #bankingindustry #startups #businessmodels #smes #profitability #smefinance #businessbanking

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Apple Opens Payments Tech to Avoid EU Fine "...Now, consumers in Europe will be able to use alternative digital wallets to make payments, with the agreement in place for 10 years. Violating the agreement could lead the EU to fine Apple up to 10% of its yearly global revenue. “From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with the iPhone in shops,” said Margrethe Vestager, vice president in charge of competition policy for the EU. “So consumers will have a wider range of safe and innovative mobile wallets to choose from...” #regulation #eu #digitalwallet #mobilepayments #iphone #competition PYMNTS _________________________________ If you want to immediately see new content that I curate 👉🏻 Ring my bell (🔔) and follow #informationbanker or if you want to get the posts that got noticed in my weekly What’d I miss newsletter, subscribe here: "https://lnkd.in/d5_KvWwu"

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"Many people appreciate privacy when paying, and want their data protected. Current electronic means of payment are not optimal in this regard. We are designing the digital euro to be the most private electronic payment option. The ECB Blog explains." European Central Bank #digitalcurrency #digitaleuro #digitalassets #cbdc #payments #centralbankdigitalcurrency

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Apple is reportedly facing potential fines of up to $1bn daily from the European Commision if found to be non-compliant with the Digital Markets Act. The mobile app economy is a $170bn market with mobile games representing more than half of that figure. If you operate an app, one of the most important trends to follow is what we call the “changing mobile landscape” where regulators are forcing incumbent mobile OS developers (Apple and Google) to open to 3rd party distribution and payments. The EU’s Digital Markets Act (DMA) is one of the most aggressive legislations to date and has already triggered new commission structures from Apple for app developers in Europe. What happens in there will likely inspire similar moves in other markets. For example, this week Japan has passed a similar law and the US Congress is considering a similar policy in the American Innovation and Online Choice Act. These changes to the foundation of such a larger market are sure to create new opportunities and threats that reverberate throughout the digital ecosystem. The dust has yet to settle, but it is clear that there will be an intense battle for control over the next few years. #mobileapp #mobilegames #DMA

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In the latest issue of TNF Journal, I had the opportunity to write about #operationalefficiencies and the opportunities out there to accelerate this critical differentiator for asset servicing providers. Up until just a few years ago, operational efficiencies were only a “nice to have” or just a way to maintain costs. Now, clients are looking at how service providers are approaching operational efficiencies as a key product & service differentiator. We have far more access to advanced technologies than ever before, such as #AI and #DLT. This simultaneously levels the playing field amongst service providers of all sizes, while also introducing more disruptors than the industry has ever seen. How are you and your firm going to stay ahead of the pack in the race for efficiencies? Find out on page 10! https://lnkd.in/gkg5SdTC

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I generally do not comment news, but this is quite interesting. Hopefully BaFin lifting N26 growth restrictions it is a sign of the adaptation of existing regulatory framework to digital banking #digitalbanking #n26 #AML #regulatorycompliance https://lnkd.in/dT6Qkd3h

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OpenAI has announced that it’s partnering with the Financial Times to make articles from the storied newspaper accessible to its large language models. As part of the collaboration, the companies will make certain Financial Times content available to users of ChatGPT. OpenAI said the deal covers “select attributed summaries, quotes and links to FT journalism.” It didn’t specify when the content will become accessible or in which versions of ChatGPT. Besides bringing Financial Times articles to the chatbot, OpenAI will also use the content to train new AI models. The deal is part of a broader effort by the company to improve its LLMs using training datasets from third parties. This type of deal will be happening more and more as Generative AI providers deal with copyright issues and the ability to deal with restricted access #AI #generativeai Financial Times

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"Unleashing the potential of Digital Identity. How the EU DI Wallet ecosystem is redefining the European Digital Identity framework?", published now in April 2024 by Worldline. 👇 This whitepaper explores how the European Union Digital Identity Wallet ecosystem is transforming the European Digital Identity framework. It details the significant updates introduced by #eIDAS 2.0 and discusses their importance in ensuring a secure experience for European Union citizens. Link: https://lnkd.in/d_dV2bD4 #web4 #web5 #digitalera #digitaltransformation #web3 #atificialera #digitalidentity #eID

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Within the context of predicting what the 2030 European mobile payment landscape will look like, there are three possible scenarios: 1. Single European solution: The emergence of a dominant European mobile payment method likely led by the EPI, subject to decisive political backing and adequate financing. 2. Multi-country clusters: Cross-regional clusters formed through the expansion and consolidation of existing systems, supported by technical harmonization and interoperability, e.g., through industry alliances such as the European Mobile Payment Systems Association (EMPSA). 3. Continued fragmentation: Persistent fragmentation with numerous local options and bank-specific apps, with international wallets and payment schemes remaining the common solutions throughout the region. Extract: Arkwright Consulting report https://lnkd.in/eV9Pbvqg Francesco Burelli #payments #banking #instantpayments #europe

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