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Biometric Payment cards – Evolution in the banking methods

Since the start of the pandemic many issues have raised for the banks and financial institutions one such is the fraud of debit and credit card. Even though many national economies faltered from the virus and millions of people struggle with job losses but the fraudsters never stopped. Actually it is the opposite in fact, they may have taken the advantage of the crisis to aggressively pursue these fraudulent transactions. According to data from Experian and the National Hunter Fraud Prevention Service, fraud rates across all UK financial products rose by 33% year-on-year in April 2020. The most extreme rise was seen in fake cars and other assets finance applications saw 181 per cent rise while fraudulent payments through current accounts rose by 35%. Fidelity National Information Services found the dollar volume of fraudulent credit and debit card charges has also soared 35% year-on-year during the same period. Fidelity National Information Services found the dollar volume of fraudulent credit and debit card charges has also soared 35% year-on-year during the same period. But the uncertainty of this pandemic at the same time as this negative trajectory meant that the cardholders, banks and businesses will all be under intense pressure to find a sustainable and robust solution to end this payment fraud.

One of the solutions will be to move beyond passwords and pins. Many of the fraudulent transactions were caught by the Global banks and financial services before they hit cardholders directly which was a positive thing for the customers. But this doesn’t mean it is free of the fact that an ongoing spike in the fraud activities still persists and is a big challenge for both the consumers and banks.

A high level on trust and confidence should be instilled by the banks and card issuers amongst their customers that they are being watched and taken care of, in a proactive manner rather than just reacting to the frauds. A visible evolution from passwords and PINs, which have now become so synonymous with card and payment insecurity is very much required. And it becomes vital that the banks and payment providers should act in support of their customers and develop a secure and convenient solution that moves payments security fast forward from all these traditional ways.

And now the good news, there is already a secure way to authorize the transactions and safeguard the finances, in the form of fingerprint biometric payment cards. These cards deliver end to end encryption , which makes the user’s data and the card both secure. As it can be only used by the owner which reduces the potential for fraud and theft. It is therefore a products which strengthens the relationship and reputations at the same time. This method of authentication will not just offset the criminal challenge at hand but also protect the end users.

The challenge of fraud is met by linking the owner – physically – to their card via fingerprint authentication. End-to-end encryption further secures that card and person’s data to make an unequivocal connection between person and object. Biometric fingerprint cards also provide consumers with very high levels of privacy, as their fingerprint data is held securely on the biometric card, not in a shared database. The card owner’s fingerprint image is immediately transformed into an abstract biometric template, which is then matched and stored in the card’s secure element (SE). To conclude, the time has come to fight back and this time with innovative and extraordinary digitalized solutions and protect the consumers form frauds. And biometric fingerprint payment card is a start!  

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Banking

Goldman banker hired by the Citi bank

Citigroup has hired Luisa Leyenaar-Huntingford from Goldman Sachs. This new hire is to co-head its global infrastructure franchise. Because, it seeks to win more business from cash-rich investment firms focusing on infrastructure deals. Leyenaar-Huntingford will be based in London. Responsibility will be shared with Todd Guenther in New York.

The pair will work closely with industry teams covering healthcare, industrials, natural resources and clean energy transition (NRCET), technology and communications. Leyenaar-Huntingford helped in the establishment of the Goldman’s infrastructure franchise in her time at the Wall Street bank. They will team up with Citi’s Iberia co-head of banking, capital markets and advisory (BCMA) Jorge Ramos will continue to be a senior member of the global infrastructure franchise.

The infrastructure sector is poised for further growth, according to the memo. The memo was released by Citi’s global co-heads of the alternative assets group Anthony Diamandakis and John Eydenberg, and its EMEA head of BCMA Nacho Gutierrez-Orrantia. There was significant private investment demand across the globe to deal with environmental, energy, transportation, waste, communication, digital and other social needs.

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Banking

Banks make slow progress on UK gender pay

Major banks in Britain made a slight dent in their gender pay gaps. Several insurers went backwards. Companies in Britain with more than 250 employees have been required to publish the difference between the pay and bonuses of their male and female employees. They got a reprieve due to the pandemic, last year. The financial services sector has shown one of the largest genders pay gaps in Britain. The lack of women in senior jobs is the main reason.

Pay gap data from 21 major financial institutions showed a narrowing in their average mean gender pay gap. This is just 0.4 percentage points. Banks alone had a pay gap which narrowed by one percentage point. Ann Francke, chief executive of the Chartered Management Institute said that the UK’s financial services industry has often been singled out. It really does have to get its house in order. Goldman Sachs had the widest gender pay gap in the year to April 2020. Goldman posted a gender pay gap of 51.8%. The bank told the staffs that narrowing the gap further was a critical priority. A spokesperson for banking lobby group UK Finance said, that there is clearly more still to be done.

FTSE 100 insurers Prudential, Legal & General and M&G reported a widening in their pay gaps. Prudential’s UK gender pay gap widened to 45.2%. M&G also reported a widening in its pay gap in the most recent year to 30.5%. The M&G spokesperson said that they are determined to narrow their gender pay gap and will do this by achieving better representation of women in all roles at all levels of our organization. Legal & General’s mean gender pay gap widened to 30.8%.

The insurer said that the legal & general is tackling the underlying causes of its pay gap. This is by creating a more diverse workforce and a more inclusive culture through sustained, long-term action. Admiral had a gender pay gap last year of 12.8%. The 21 firms surveyed were Barclays, HSBC, Lloyds, NatWest, Standard Chartered, Bank of America Merrill Lynch, Goldman Sachs International, JPMorgan, Morgan Stanley, UBS, Credit Suisse, Deutsche Bank, PGMS (a Phoenix unit), abrdn, Schroder Investment Management, St James’s Place, Legal & General, Prudential, Admiral Group, Aviva and M&G.

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Banking

BOJ to lower inflation target-Japan’s finance minister

Japan’s outgoing finance minister, Taro Aso, said that he had proposed lowering the central bank’s 2% inflation target. This is when the prices took a hit from plunging oil prices. He was the finance minister for nearly nine years. The slump in oil price was among the main reasons the government could not officially declare an end to deflation. In his final news conference as finance minister, Aso said that he proposed to Governor Kuroda that, with oil prices falling this much, it would be hard to achieve 2% inflation. Hence, the target must be lowered at some point. He stated this by referring to Bank of Japan (BOJ) chief Haruhiko Kuroda.

Aso also said that the governor said he would do his best to achieve the target. This is stated by adding that policymakers must scrutinise at some point, why the BOJ’s inflation target of 2% has not been met. The remarks highlight how the government and lawmakers distanced themselves from the BOJ’s target years ago, despite central bank reassurances that achieving the target was possible by maintaining or increasing stimulus.

Aso was deeply involved in negotiations with the BOJ. After Kuroda took over as governor, he deployed a massive asset-buying program. This is for pulling Japan out of deflation. Aso supported the BOJ’s stimulus efforts. He is a member of the cabinet. And also, had raised many doubts that monetary policy alone can reflate the economy out of the doldrums. New Prime Minister Fumio Kishida is set to form a cabinet.

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