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BRITISH CONSUMERS RELUCTANT TO SWAP PASSWORDS FOR BIOMETRICS FOR FEAR OF IDENTITY FRAUD

Paysafe launches new global research into consumer payment trends

Over half of consumers in the UK (53 percent) are worried that the shift to biometrics to authenticate online payments will dramatically increase the amount of identity fraud, according to new research conducted by Paysafe, a leading global payments provider. The research, found that over three quarters (79 percent) of consumers still favour passwords for making payments online due to concerns about the security of new biometric options.

According to the data, two thirds (68 percent) of consumers worry about being able to pay for goods or services without being asked for a password, and only 40 percent believe that biometrics are more secure than other authentication methods.

The report, Lost in Transaction: The end of risk?, explores consumer attitudes to biometrics prior to the roll-out of Strong Customer Authentication later this year. The annual study tracks changing views on payments across the UK, US, Canada, Germany and Austria, and this year includes Bulgaria for the first time.

Those consumers who didn’t feel comfortable using biometrics identified a lack of trust as their primary reason for avoiding them. The research also revealed further fears around the use of biometrics:

  • Over a third (36 percent) stated they did not want companies having access to their personal biometric details
  • 30 percent did not know enough about biometrics to trust it
  • Over a quarter (27 percent) were concerned that their fingerprint could easily be cloned and used to commit fraud
  • 29 percent said biometrics did not seem safe

Commenting on the research, Daniel Kornitzer, Chief Business Development Officer, Paysafe Group, said: “Biometrics are a huge opportunity for the payments industry to combat the increasing risk of card not present fraud. However, it’s not surprising that there is reluctance among consumers to use biometrics as a form of payment authentication when passwords and PINs have been the central pillar of financial data security for at least 20 years. News headlines are also dominated with fraud and hacking scandals so the public are aware of the risks involved when it comes to adopting new services. To overcome this, consumer education is imperative and with SCA coming in September, consumers will need to be aware of the benefits to ensure acceptance and adoption. We’ve lived in a password-driven world for many years now and consumers aren’t fully prepared to let go of what they know.”

Despite the worries over biometric transactions, adoption continues to grow with more than half (54 percent) of British consumers having used biometrics to make a payment. Over half (62 percent) of consumers in the UK also agree that using biometrics is a much quicker and efficient way of paying for goods and services.

When asked what biometrics they had used, fingerprint technology was most commonly used biometric (42 percent) followed by one in six (17 percent) having used facial recognition and one in ten (12 percent) voice-activated technologies.

Kornitzer continued: “Consumer acceptance of biometrics is being driven largely by smartphone usage and adoption, and this will only increase. However, payment providers will need to do their bit to get consumers on board. Ultimately, SCA should lead to smoother and more secure payments – a win for businesses and consumers alike.”

To read the report in full, please visit https://www.paysafe.com/lost-in-transaction-the-end-of-risk/

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THE INVESTMENT IMPLICATIONS OF CLIMATE RISK – AN INVESTMENT MAN-AGER’S VIEW

In the final release of its three part series on climate risk, leading independent fixed income manager, Cameron Hume, looks at how attitudes to climate risk can be factored into long term investment decisions and whether those investment decisions can be used to drive the direction of travel with a global response to climate risk.

 

It is widely accepted that greenhouse gas (GHG) emissions must be decreased in order to avoid a potentially catastrophic increase in global temperature.

 

If we also accept that a global response is required to achieve a global reduction in GHGs, but that countries will act according to their own discretion, then the next piece of information we have is the recognition that companies will face different regulatory and legal regimes depending on which part of the world they operate in.

 

It is a complicated set of factors to consider and it can be tempting to put off any decision making. However, the Financial Stability Board has made it clear that action is required now.

 

The 2017 report by the Taskforce of Climate Related Financial Disclosures (TCFD), stated: “The large-scale and long-term nature of the problem makes it uniquely challenging, especially in the context of economic decision making. Accordingly, many organizations incorrectly perceive the implications of climate change to be long term and, therefore, not necessarily relevant to decisions made today.”

 

In a bid to help navigate the difficult process of taking on appropriate exposure to climate risk, the TCFD recommends the implementation of tried and tested methods that financial market participants are already familiar with. Improving disclosure is a key input to supporting better management of climate risk. The TCFD recommend considering climate risk in a framework consisting of Governance, Strategy, Risk Management and Metrics & Targets.

 

For Cameron Hume, Governance means that there is an agreed investment policy that all stakeholders are in agreement with. Strategy should therefore support development of policy and systems which incorporate informed Risk Management. Metrics & Targets must be built into portfolio measures, client reporting and disclosures to bodies such as the PRI.

 

The Cameron Hume Global Fixed Income ESG Fund, launched in 2018, follows the TCFD methodology while selecting issuers judged to manage their ESG risks better than their peers.

 

Chief Investment Officer, Guy Cameron, explains: “In Cameron Hume’s view, a key indicator of an issuer’s sustainability is the quality of its governance and risk management framework, which we know must take into account climate risk.

 

“A company that already has low emissions will be more likely to maintain low emissions in the future than a company with a stated aim of lower emissions but a bad track record of delivering on promises. Even those who reliably commit to a transition plan require access to significant funds, technology or personnel to make such a major shift in operations.

 

“Similarly, as many governments introduce legislation to reduce GHG emissions, inability to achieve the legally mandated targets may weigh on companies even as they transition.

 

“As the likelihood of governments imposing tough targets on emissions differs from country to country, we believe the best way to manage risk is to invest in the companies with the lowest current net emissions, accounting for gross emissions and mitigating factors. Such issuers will likely have the governance framework, risk management capability and strategy in place to allow them to embrace any new rules effectively.

 

“For these reasons, the Cameron Hume Global Fixed Income ESG Fund favours companies with lower net emissions currently, rather than those requiring significant changes.”

 

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AURIGA, PROVIDER OF NEXT-GEN BANKING TECHNOLOGY, OPENS ITS FIRST OFFICES IN SPAIN AND MEXICO

Specialising in omnichannel banking and cybersecurity, the Italian company continues its international expansion with two new offices in Madrid and Mexico

 

Auriga, an Italian company specialising in omnichannel banking solutions, today announced the opening of two new branches in Spain and Mexico, following its international expansion strategy. The subsidiaries, Auriga Iberia and Auriga Latin América, will manage the integration of Lookwise Device Manager (LDM), the cybersecurity solution acquired from S21sec, into Auriga’s portfolio of omnichannel banking solutions. With this milestone, the company now employs 400 professionals.

Auriga’s objective is to become a reference point for financial institutions in the Spanish and Latin American regions. The Latin American office is situated near to Guadalajara, Mexico and represents a real stepping stone towards reaching the local market. The Spanish office is a research and development hub focused on cybersecurity, with the aim of enriching Auriga’s offering and expertise to support banks in their digital transformation path.

These two new openings are in line not only with the acquisition of LDM, but also form part of Auriga’s ongoing strategic partnership programme, which is aimed at consolidating its presence on a global scale. Auriga recently announced strategic alliances with the system integrators Minsait, a company from Indra, and TRSYS.

 

They are also in line with the membership recently signed off with:

  • ATM Security Association, part of the ATMIAnetwork, aimed at bringing manufacturers and their suppliers together with the common goal of establishing vendor independent standards for security solutions within the industry.
  • ATEFI, the Latin American association of operators of electronic transfers of funds and information services aimed at promoting and ensuring the exchange of information among associates, the development and competitiveness of electronic funds transfers and information services in the Latin American financial sector.
  • ECSO(European Cyber Security Organisation), whose main goal is to develop a competitive European cybersecurity ecosystem, to support the protection of the European Digital Single Market with trusted cybersecurity solutions, and to contribute to the advancement of European digital autonomy.

 

Auriga provides omnichannel banking solutions to support its clients in the digital transformation of bank branches, a key area of focus for financial institutions.

“These openings are in line with Auriga’s ongoing investments and current local partnerships aimed at promoting our solutions in the Spanish and Latin American markets”, explains Vincenzo Fiore, CEO, Auriga. “The current pandemic has highlighted, like never before, the power of technology in helping the financial sector continue to provide excellent service to its customers while ensuring their security. As specialists in omnichannel banking, Auriga wants to assist Spanish and Latin American financial services to make this leap into the branch of the future.”

For years, the company has been one of the key technology providers in Europe for the digital transformation of bank branches. Founded in Italy, 70% of the country’s ATMs are equipped with its WinWebServer (WWS) software. This advanced omnichannel solution enables the efficient integration of various modules into banks’ systems and provides an enhanced customer experience while optimising costs.

 

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