Business

Digital Commerce – A new era

Entering a new era the payments industry’s transaction has changed as we separated physically due to the pandemic, digital commerce is booming. The way the consumers will transact will be the same even after the pandemic subsides as it was already underway long before the pandemic too.

The competition from telecommunications and technology industries to provide a faster solution of payment services , digital transactions being faster and continuing to disrupt other traditional payment methods can be seen in the last year.

Initiatives on focusing on payments for being a catalyst for the financial inclusion can be seen more as we recover from pandemic. Indian. Brazilian and Mexican markets are making real time investments with the goal of expansion economic inclusion and opportunity.

From streaming data for real time processing to distributing ledgers for new forms of stored value, the importance of burden reduction is seen and all this will be possible by shining light on community based approach on creating technology.

In order to make financial inclusion a reality, there must be a shift to all-digital commerce but with this there will be an increase in competition and more pressure on the traditional methods of payments. Cloud native tools will allow the new entries and help them to run in a more effortless and efficient way reducing the costs. This will act as an increasing point in both volumes and payments. Productivity has massively improved with the rapid evolution of cloud technology powered by open source technology and has reduced cost and disrupted industries.

In the next five years there is an anticipation that there will be more than half a trillion transactions will be processed over real-time networks across 30 markets. There will be a faster settlement of payments with minimum or no delay and this would attract more and more customers with more business. Beyond just moving the money immediately to and from different sources , the real time payments brings standards of messaging , access to data and better security which will make it more accessible to people.

In order to provide speed and resilience needed for an efficient payment service, cloud technology is very necessary. Acting as the foundation for modern payment modes, it automatically adjust itself to transaction volumes and based on the transactional volumes it also takes corrective action after finding issues.

In the future more companies will be adopting real-time payments , rely on data streaming technology such as an open source project which brill provide a good infrastructure on stream the data like Apache Kafka.

After facing many ups and downs with cynicism and various types of hypes now the financial sector is seeming to be improving at a great pace. The central bank is acting as a tipping point from experimenting to putting it into practical used the services they provide to their customers around the globe. And it is different than JP Morgan’s Liink network and Visa’s B2B Connect, as these run on distributed ledger technology. Due to the pandemic outbreak the central banks were forced to commission amount to the places which are hit hard.

With the cloud technology the real time is the actual reality.

Business

LexisNexis risk solutions study reveals sharp rise of financial crime compliance costs

Decision makers inside banks, investment firms, asset managers and insurance firms identify the drivers impacting financial crime compliance. LexisNexis® Risk Solutions revealed that the results of its annual True Cost of Financial Crime Compliance Study for the U.S. and Canada. The total projected cost of financial crime compliance for the region is approximately $49.9 billion. The survey illustrates the sharp increase in financial crime compliance costs.

The study projects the average annual cost of financial crime compliance for U.S. financial institutions with $10 billion. Pandemic Continues to Spur Growth. The pandemic continues to negatively impact compliance operations. Sixty eight percent of U.S. respondents report longer times required to complete due diligence. Fifty five percent of U.S. respondents report reduced productivity compared.

More U.S. financial institutions now rank real estate and hospitality as top money laundering risk segments. Crime involving digital payments, trade-based money laundering and money mule schemes are on the rise. Digital currency is a growing problem for Canadian firms. Crimes involving digital payments have the greatest impact on compliance costs. Cryptocurrency crimes have the greatest impact on compliance costs for Canadian firms. The survey results demonstrate that financial institutions are battling a broader set of issues.

Survey respondents indicate that a lack of current and extensive data tops the list of Know Your Customer (KYC). Leslie Bailey, vice president of financial crime compliance strategy for LexisNexis Risk Solutions stated that the study shows clear linkages between the pandemic, digital crime and increasing regulations. Hence, financial institutions need to prepare for expanded compliance obligations and risks from emerging financial crime. Bailey added that digital transformation is a game-changer for financial crime compliance operations.

This will require a sophisticated approach that incorporates insight into digital behaviors. This study surveyed 145 decision-makers in the U.S. and Canada. Responses were collected in June 2019, August 2020 and June 2021. Organizations such as banks, investment firms, asset management firms and insurance firms. The total annual cost of compliance across firms was calculated using survey data. The spend amount was generated by multiplying the average percent allocated to financial crime costs.

Business

COP26 delegates agree on need to deliver on $100 BLN climate finance pledge

Delegates heading to the COP26 U.N. climate summit in Glasgow. These delegates agreed that they must deliver on the $100 billion per year pledge. COP26 president Alok Sharma said that, it is to help most vulnerable nations for tackling the climate change.

After many days of meetings at the pre-COP26 climate event, which happened in Italy, Sharma said that there was a consensus to do more. Which is to keep the 1.5 degrees Celsius target within reach, adding more needed to be done collectively in terms of national climate plans.

The COP26 conference in Glasgow aims to secure more ambitious climate action. This is from nearly 200 countries, those all that have signed the 2015 Paris Agreement for limiting the global warming, well below 2.0 degrees Celsius. And to 1.5 degrees, above pre-industrial levels.

Business

City’s exposure to Evergrande is very minimal-Hong Kong finance Chief

Hong Kong’s exposure to debt-laden developer China Evergrande Group is very minimal at 0.05%. This is of banking assets, South China Morning Post reported, citing the city’s finance minister. Financial Secretary Paul Chan told the newspaper that it is very minimal and won’t cause them any systemic risks. He added that he had arrived at the conclusion after a recent audit of the local banking sector’s exposure to the company.

Chan also said that the Hong Kong’s stock market was inevitably subject to some volatility. This is amidst a recent mainland crackdown on some industries. But still he believed any setback would be temporary. With liabilities of $305 billion, Evergrande has sparked concerns its cash crunch could spread through China’s financial system. This may reverberate globally and that is a worry that has eased with the Chinese central bank’s vow, to protect homebuyers’ interests. Evergrande has missed two bond interest payments. Bondholders have said this and its offshore debt, amounting to about $20 billion, trades at distressed levels.