Connect with us

News

1 TRILLION REASONS WHY E-COMMERCE PROVIDERS SHOULD LOVE CHINESE NEW YEAR

CHINESE NEW YEAR

In 2019, retailers in China took in a staggering 1 trillion yuan ($148.3 billion) during the Chinese New Year [1]. The advertising press describes what happens during the holiday as a “spending frenzy” [2]. According to one recent report, this year middle-class Chinese in tier-one cities such as Beijing or Shanghai are budgeting 10,000 yuan (roughly $1480) for spending on gifts and entertainment [3].

And there’s every sign that — like so much else in China — big chunks of the festivities for the lunar new year are going digital. One of the biggest Chinese New Year traditions is the giving of Hongbao, a red envelope containing auspicious money, wishing prosperity and good fortune to the recipient.

In 2019, 823 million Chinese used digital payment services to send Hongbao to friends and relatives, up from 688 million the year before [4]. Competing payment services have even been offering discounts and promotions to users who use their digital Hongbaos [5]. Last year, Alipay alone reported that 450 million Chinese and Southeast Asian consumers had used its “five blessings” Hongbao promotion, up 40% on the year before [6].

“Online payments are huge in China,” explains Kelvin Phua, Global Head of Payment Networks at PPRO. “It’s no surprise at all to see the Chinese, who love innovation, taking to the idea of digital red envelopes. For merchants and payment providers, the trick is to make sure their service and their stores are ready to meet Chinese users’ needs during this busy period.”

CHINESE NEW YEAR

But digital Hongbao isn’t the only sign of Chinese New Year going digital. Chinese New Year is also the biggest mass migration event on the planet. Locals and migrant workers travel across China — and Asia — to get back to their families in time for the celebration, making an estimated 3 billion trips during the festive period [3]. In 2019, there was a 19% increase in the number of New Year online flight bookings [7], giving a massive boost for online travel booking companies.

Once they’re finally together for the holidays, the Chinese want to sit down to a festive reunion feast. And even this is increasingly a digital affair. In 2018, the Chinese e-commerce platform Alibaba reported a 218% increase in the number of online orders for “reunion dinners”. The Lunar New Year is also a bumper time for Chinese retail e-commerce. During the 2018 festive period, for instance, Chinese marketplace JD.com saw its online sales increase by 43% [8].

These gains are not only seen on Chinese e-commerce merchants and payment platforms. In 2018, UK e-commerce sites similarly saw orders from Chinese customers increase by 38% year-on-year during this festive period [9].

“Chinese New Year is one of the globe’s biggest online shopping event,” says Kelvin Phua. “The impact is felt across categories and, increasingly, outside China too. This represents a huge opportunity for online merchants across the world. To take advantage of this opportunity, they need to make sure that the shopping experience is as enjoyable and reassuring as possible for the Chinese consumers. That means, among other things, giving them payment methods, they know and trust.”

 

News

ERSTE BANK HUNGARY IMPROVES AND SECURES THE REMOTE BANKING EXPERIENCE WITH ONESPAN MOBILE SECURITY

ONESPAN

Leading Hungarian bank deploys OneSpan’s Mobile Security Suite to one million customers to make mobile banking convenient while fighting fraud and meeting PSD2 requirements

 

OneSpan™ (NASDAQ: OSPN), the global leader in securing remote banking transactions, today announced that Erste Bank Hungary, a subsidiary of Erste Group Bank AG, one of the leading banks in Central and Eastern Europe, has integrated OneSpan’s Mobile Security Suite into its banking app MobilBank. Erste Bank Hungary selected Mobile Security Suite to enable and protect online and mobile transactions and to comply with PSD2 requirements for authentication and dynamic linking.

The European Payment Council has stated that social engineering attacks continue to increase and remain instrumental in fraud schemes, often in combination with malware.[1] Erste Bank Hungary chose to implement OneSpan’s Mobile Security Suite to protect against potential social engineering and malware attacks directed at its customers. OneSpan’s technology enables banks to integrate application shielding, biometric authentication and transaction signing.

Erste Bank Hungary added Mobile Security Suite’s Cronto visual transaction signing to replace the bank’s SMS authentication with push authentication for login and transaction signing. This new process improves security and eliminates significant costs related to SMS delivery. OneSpan’s Cronto technology also helps fight social engineering attacks like phishing, while enhancing the customer experience by  enabling transaction signing using a color QR code.

“OneSpan’s proven technology will help us maintain our leading position in the market without compromising on security or the customer experience,” said Erste Bank Head of Digital Services, Akos Andras Molnar. “As part of this roll-out, our customers can also make online purchases using push notification with any retailer connecting to Erste Bank via the 3-D Secure protocol.”

“Criminal hackers continue to target banking customers as social engineering remains a preferred technique,” said OneSpan CEO, Scott Clements. “In their search for security solutions, banks need to consider cost, convenience and regulatory compliance. OneSpan’s technologies address these concerns so that banks can focus on providing a secure and convenient customer experience.”

Continue Reading

News

HOW WILL LENDERS TREAT THE FINANCIAL SYMPTOMS OF COVID19?

FINANCIAL

COULD the coronavirus pandemic spark a financial crisis similar to that which was seen in 2008? Tim Kirby, Group Commercial Director of the global fintech Monevo, a personal lending marketplace and platform, discusses how Covid-19 could play out for lenders.

The 2008 financial crisis, explains Kirby, was about credit over-exposure. While strains are apparent in the money markets today, it is not 2008, when risky mortgage investments in the US banking sector and into the UK caused everything to collapse.

Kirby said: “The financial crash was self-inflicted for many reasons, including poor income verification, poor credit quality assessment and poor employment verification (self-certification). It was asset-backed predominantly as it was led by sub-prime mortgage lending.

“My thoughts are that once the virus is contained, the economy will most likely turn back on within a few months, however recovery to current levels will be somewhat longer.”

Kirby predicts that it is very possible this downturn will be shorter than the 2008 financial crisis based on a number of factors.

He said: “The financial crash was either at a house purchase level or encouraging debt consolidation through re-mortgaging that placed unsecured debt into secured debt over a longer term. The consumer then ramped up unsecured debt again with the same poor assessment applied and eventually ran out of headroom.

“This was propped up by the capital markets and warehouse funding lines being supported through securitisation models that rated the loans held in the bonds as AAA.”

Kirby adds that the coronavirus outbreak is more micro and consumer-led than the recession was.

“There is still a great deal of uncertainty, but consumers are certainly going to experience affordability difficulties in the short-term, perhaps three to six months,” Kirby explains. “Lenders are already tightening their criteria and that could lead to more tactical initiatives being introduced.”

Kirby points to the potential introduction of black-listing certain occupation types most affected, and reducing opening balances to applicants that they are most prepared to lend to.

He said: “At Monevo, we have been speaking to lenders who are predicting a 50% slow down, with some pausing to assess short-term strategies, as clearly there are aspects of credit / risk scorecards that aren’t working at the moment.”

Kirby also adds that access to capital markets will be a challenge in the short term: “Lenders who don’t lend off balance sheet may become constrained and you would have to question the Peer-to-Peer lender impact as the returns and appetite of investors could be under threat.”

“Additionally, those lenders nervous about funding certain cohorts of consumers, now have those very same consumers currently in their loan books.

“So, for lenders, focussing on forbearance and other support activity to protect these consumers in the short term of 3-6 months, will be a priority.

Kirby takes the view that it is important lenders relieve some repayment pressure from consumers in the short term, so they can rehabilitate when the new normal arrives.

“Lender feedback in the last week is that they haven’t seen a massive increase in defaults, it’s very early days though. Anecdotal feedback from lenders that are strong and well-funded is that they expect strong growth when the market returns, and that those who are optimised and agile will see an upswing.

“What I am hearing, is that consumers will remedially seek liquidity through debt, as the world normalises to address the short-term pain being experienced at present.”

Kirby adds that lenders who look at credit risk closely when the upturn comes in three to six months could see dramatic growth, albeit from a reduced base.

He added: “From Monevo’s perspective, day trading is difficult to predict and lenders are re-assessing short-term strategies.  We are using the time at present to apply additional focus on our internal tech pipeline in driving the product development roadmap forward to continue to deliver great solutions for our partners.

“We want to ensure when normality returns and the upswing in both demand and supply inevitably happens, that we are supporting our origination partners and the lenders on our panel as effectively as possible.”

 

Continue Reading

Magazine

Partner Events

Trending

Banking2 days ago

FOUR WAYS OPEN BANKING AND AI WILL REVOLUTIONISE ACCOUNTANCY

Ed Molyneux, CEO and co-founder of cloud accounting software company, FreeAgent   It’s been just over two years since the...

FINANCIAL SERVICES FINANCIAL SERVICES
Finance2 days ago

HOW FINANCIAL SERVICES CAN GET TO GRIPS WITH RISING SUPPLY CHAIN RISK

By Alex Saric, smart procurement expert, Ivalua   UK businesses have never been more dependent on their suppliers to help...

MARKET DATA MARKET DATA
Wealth Management3 days ago

TWO TO TANGO? MARKET DATA AND OPINIONS IN INVESTMENT MANAGEMENT

Sebastien Lleo is Associate Professor of Finance and Head of the MSc in Risk and Financial Technologies at NEOMA Business...

EARLY RETIREMENT EARLY RETIREMENT
Wealth Management4 days ago

AN ULTIMATE GUIDE TO TURNING YOUR EARLY RETIREMENT DREAM INTO A REALITY

Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement planning firm based in Goodyear, AZ.  ...

FINANCIAL SERVICES FINANCIAL SERVICES
Technology4 days ago

WHAT EVOLUTIONARY AI MEANS FOR FINANCIAL SERVICES

by Babak Hodjat, VP of Evolutionary AI at Cognizant   Many banks and other financial services institutions (FIs) are beginning...

ANALYTICS ANALYTICS
Business4 days ago

HARNESSING ANALYTICS IN THE FIGHT AGAINST FRAUD

By Anna Lykourina, EMEA Fraud Analytics Expert at SAS   In the past, the fight against fraud has been a...

ONESPAN ONESPAN
News4 days ago

ERSTE BANK HUNGARY IMPROVES AND SECURES THE REMOTE BANKING EXPERIENCE WITH ONESPAN MOBILE SECURITY

Leading Hungarian bank deploys OneSpan’s Mobile Security Suite to one million customers to make mobile banking convenient while fighting fraud...

FINANCIAL FINANCIAL
News4 days ago

HOW WILL LENDERS TREAT THE FINANCIAL SYMPTOMS OF COVID19?

COULD the coronavirus pandemic spark a financial crisis similar to that which was seen in 2008? Tim Kirby, Group Commercial...

PAYMENTS PAYMENTS
Finance5 days ago

ISO 20022 – THE BEDROCK FOR PAYMENTS TRANSFORMATION

Lauren Jones, Global Payments Ambassador, Icon Solutions   The financial services industry has seen ISO 20022 grow firmly over the...

STRUCTURED DATA STRUCTURED DATA
Business5 days ago

2020 VISION: TRANSFORMING THE LEGAL DOCUMENTATION LANDSCAPE THROUGH STRUCTURED DATA

Jason Pugh, Managing Director, D2 Legal Technology   The derivatives industry has been transformed by the proactive engagement of its...

LANDLORDS LANDLORDS
Wealth Management5 days ago

WHY LANDLORDS SHOULD MAKE THE MOVE TO THE ALTERNATIVE PROPERTY INVESTMENT SECTOR IN 2020

Reece Mennie, CEO of leading UK investment introducing firm, Hunter Jones    The new decade is expected to bring with...

Loss Loss
News5 days ago

PROTECTING YOURSELF AGAINST LOSS OF FUTURE INCOME IN A RECESSION

By Gerard Visser, Financial Planning Consultant at Alexander Forbes Financial Planning Consultants.   With low GDP growth, credit ratings downgrades and the COVID-19 pandemic,...

MOBEY FORUM MOBEY FORUM
News5 days ago

MOBEY FORUM TO ADDRESS DATA PRIVACY AND INNOVATION IN THE AGE OF AI WITH NEW EXPERT GROUP

Mobey Forum, the global industry association empowering banks and financial institutions (FIs) to shape the future of digital financial services, today announces...

SMALL BUSINESS SMALL BUSINESS
Business1 week ago

HOW TO MANAGE YOUR SMALL BUSINESS’S FINANCES

There are a lot of fantastic business ideas that end up failing during the early years. Why? A lack of...

CFO CFO
Top Stories1 week ago

THE EVOLUTION OF THE TECH CFO

Gavin Fallon,General Manager, UK, Nordics & South Africa Board International   Chief Financial Officers (CFOs) have traditionally been seen as...

FRAUD FRAUD
Business1 week ago

IS FRAUD PREVENTION CONVERGING WITH REGULATORY COMPLIANCE?

By Manuel Rodriguez, Fraud Solutions Manager at SAS   Several relevant reports show how the world of fraud and financial crimes is mutable...

APIs APIs
Finance1 week ago

WHY SECURE APIS ARE THE KEY TO FINANCIAL CONTROL

Stefano Vaccino, Founder of Yapily   Consumers never owned their financial data. Banks controlled everything from how much money came...

News1 week ago

GOLDBELL FINANCIAL SERVICES SELECTS MAMBU TO POWER GEN INVESTMENT PLATFORM

Goldbell Financial Services, one of Singapore’s leading business finance providers, has confirmed it will partner with Mambu, the market-leading pure...

FINANCE WORKERS FINANCE WORKERS
News1 week ago

UK FINANCE WORKERS DISPEL MYTH OVER TECH JOB LOSS FEARS

– Research shows finance workers welcome the “rise of the machines” –    The majority of UK finance workers have widely rejected the...

That’s where Netcall’s Liberty Create came in. Create is a new breed of low-code software solution, built for both business users and professional developers That’s where Netcall’s Liberty Create came in. Create is a new breed of low-code software solution, built for both business users and professional developers
Banking1 week ago

LOW-CODE TECHNOLOGY BOOSTS THE GROWTH OF SPECIALIST BANK

Hampshire Trust Bank (HTB) is a digitally-focussed specialist bank staffed by experts that enable UK businesses to realise their ambitions. Primary...

Trending