Included in this issue: Starling Bank integrates with TransferWise; Payment System Operator Delivery Group Meeting; PSR second annual report; FCA enters into co-operative framework and more...


UK

Starling Bank integrates with TransferWise

UK app-only bank Starling is to use an API from TransferWise to provide customers with cheap foreign currency transfers to bank accounts in 35 currencies. Primed for launch later this month, Starling is working towards delivery of a 'Marketplace' model, which will see the bank provide access to a range of third party financial products such as mortgages and loans from innovative fintech startups, all from within the app. The deal with TransferWise promises FX transfers to third party bank accounts at Reuters' benchmark exchange rates, for an unspecified "small upfront fee". For TransferWise, the agreement is its first with a UK bank, following similar deals with Estonia's LVH Bank and Germany's N26.

City A.M, 15 March

Payment System Operator Delivery Group Meeting

The Payment Systems Regulator has published the minutes of the 7th Payment System Operator Delivery Group meeting held on 7th February 2017. Items discussed included NPSO Design Criteria, and Leadership, and Stakeholder engagement.

PSR, 13 March 2017

PSR second annual report on access to payment systems and governance of payment system operators

The Payment Systems Regulator (PSR) has published its second annual report on access to payment systems and the governance of payment system operators in the UK. A factsheet is also available, which summarises the PSR's key findings. According to the PSR report, the banking and payments industry saw some groundbreaking milestones in recent months, for instance Raphaels Bank, Metro Bank, Starling Bank, ClearBank and Monzo becoming the first new joiners to Faster Payments since it launched in 2008. It also expects the entry of three new providers of indirect access to payment systems this year, ClearBank, Raphaels Bank and BFC Bank.

Although progress has been encouraging, the PSR is pushing for a number of further improvements, including the completion of work in developing aggregator access models for financial technology vendors by the end of 2017. Operators should also be ready to progress applications for direct access to non-bank PSPs, says the PSR, in anticipation of the Bank of England amending its settlement account policy and where necessary legislative changes are to be made.

PSR, 9 March 2017

FCA enters into co-operative framework with Financial Services Agency of Japan to support FinTech companies

The FCA has published a press release announcing the exchange of letters with the Financial Services Agency of Japan (JFSA) on a co-operation framework to support innovative FinTech companies. The letters between the JFSA and the FCA will provide a regulatory referral system for Innovator Businesses from Japan and the UK seeking to enter the other’s market.

FCA, 9 March 2017

ICO publishes paper on big data, AI, machine learning and data protection with GDPR compliance element

The Information Commissioner's Office has published an updated version of its 2014 paper on big data, artificial intelligence, machine learning and data protection. The paper covers data protection implications and compliance tools.

ICO, 3 March 2017

WORLDWIDE

EPC updates white paper on mobile payments in Europe

The European Payments Council (EPC) published version 5 of its white paper on mobile payments across the Single Euro Payments Area (SEPA). It consulted on the paper in June 2016. The aim of the white paper is to contribute to the evolution of an integrated market for mobile payments across the SEPA.

EPC. 14 March 2017

High Court makes reference to ECJ for preliminary ruling regarding interpretation of PSD2 provisions

A reference for a preliminary ruling from the Court of Justice of the EU (ECJ) made by the High Court in American Express Co. v Lords Commissioners of HM Treasury (Case C-643/16) has been published in the Official Journal of the EU (OJ). The reference was made on 12 December 2016 and it relates to the interpretation of certain provisions of the PSD2.

EU, 14 March 2017

IAIS report on potential impact of FinTech

The International Association of Insurance Supervisors has published a report that highlights the potential impact of innovative financial technologies on insurance sector competitiveness, consumer choice, interconnectedness, business model viability and regulatory oversight. In its conclusions, the report states that InsurTech innovations have the potential to deliver a wide range of benefits, in particular efficiency improvements, cost reductions, improved risk assessment, superior customer experience and greater financial inclusion. However, some of the innovations could also pose negative implications to the consumer and the financial stability of insurance markets.

IAIS, 14 March 2017

JPMorgan Chase acquires MCX payments technology

JPMorgan Chase has acquired the technology behind merchant-backed mobile payment service CurrentC.

MCX, a QR code-based mobile wallet joint venture launched by big-ticket US retailers to take on Apple Pay and circumvent credit card fees. The bank says it will help expand Chase Pay, the mobile and digital wallet for Chase customers. MCX’s members were already connected to MCX payments technology, which made it seamless to connect to Chase Pay. Chase executives wanted to acquire the technology to use in lieu of building separate parallel technology to serve non-MCX members.

Banking Technology, 13 March 2017

 

 

 

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Amanda Hulme

Amanda Hulme

Partner, Head of Financial Regulation
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Fiona Ghosh

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United Kingdom

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Al Mangan

Al Mangan

Managing Associate, Competition & Regulation
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William James

William James

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