In order to become innovative, companies need the right people with the right skillset in the right teams. There should also be an infrastructure in place to remove barriers of compliancy, according to our previous blog on innovation at Dutch bank ING. The next step is the actual work; how can ideas be turned into valuable concepts and products or services with excellent user experience? In this blog Willem Schellekens, Cofounder of the ING Innovation Studio and ING’s corporate accelerator, talks about the changes in operational business and the importance of an autonomous team. Schellekens: “Hierarchy is killing for innovation.”
In the end, innovation has to be realised and ideas have to be turned into workable concepts. Schellekens states that the best way to achieve this, is to change the organisational structure from waterfall to agile. No more immense projects at the same time, to find out and the end that the customer has no interest in the developed service. The operational business has to be fast and flexible nowadays, that is what agile stands for. Schellekens: “Agile is about pulling short sprints, short goals with quick results.” This means working by the ‘build, measure, learn’ principle with constant feedback. “That is how you learn what works and what doesn’t, so you can constantly improve the product or service.” Read more
The urgency for innovation is now higher than ever before. The market and customer demands are rapidly changing and each company should adapt to this speed of change. There are several options when it comes to being innovative, such as forming strategic partnerships or setting up accelerator programs to help early stage start-ups. In this blog Willem Schellekens, Cofounder of the ING Innovation Studio and ING’s corporate accelerator, explains what it takes for companies to build up a foundation to become innovative.
One of the initiatives to accelerate innovation within Dutch bank ING is the creation of the ING Innovation Studio. That is a safe environment where start-ups and ING teams can quickly experiment with new business models. Start-ups are being mentored and accelerated from concept to product in a cycle of six months. According to Schellekens that is a completely new approach for ING to collaborate with start-ups, where ING mainly has a facilitating role. Read more
According to the latest data presented during the XI edition of Netcomm e-commerce Forum from the e-commerce B2C Netcomm Observatory of the Politecnico of Milano, the e-commerce in Italy grew double-digit: in 2016, the value of the online purchases, made by the Italians, will reach 19.3 billion euro, with a growth in 17% compared to 2015. During 2016, the 5% of the total amount of the retail sales will be made of e-commerce. An average receipt is around 75 euros. The orders are estimated around 115 million for the buying-in of products. As far as services, the average receipt is 253 euros for 45 million total orders.
A solid incentive is provided once more by Fashion (+25%), Computer and Electronics (+22%), Press (+16%) and Tourism departments (+11%). The departments of Food & Grocery, that are the quality mark of Made in Italy, go really well. Even if they are still considered as newly emerging departments as for online retails, they are registering highest growths. Food & Grocery will increase in 29% and will slightly cross the share of 530 million euros. As far as Furniture and Home Living, the departments will grow in 39%, and stroke 570 million euros.
Compare it with the deployment of a European railway system; there is a need to agree on the width of the railways and the space between the rails. Only because all individual country laid the rails according to this agreement, railways throughout Europe could be connected to a single network across each country. The same goes for the interoperability of various clearing and settlement mechanisms in Europe, now that Instant Payments will become a reality in 2017. What does it take to achieve this level of European interoperability?
Interoperability is a necessity in order to make Instant Payments work across banks and countries, as described in a previous blog on Instant Payments. It is as simple as that, but it takes time and effort to achieve interoperability between the various EU countries and the Automated Clearing Houses (ACH’s). The road to achieve this interoperability cannot be compared with the introduction of SEPA. Where SEPA was a top-down decision, introduced with a big bang in all the countries at the same time, the introduction of Instant Payments is much more bottom-up. The SEPA model has been turned upside down with Instant Payments, making it necessary to tie all the different dots together, to achieve one infrastructure. Read more
“I anticipate a strong demand for instant payment services in Euro across EU countries”, said Helmut Wacket, Head of Market Integration Division at the European Central Bank in a recent interview on the website of the European Payments Council (EPC). “If providers do not want to lose out on this business and on users from future generations, they will have to provide instant payments services.” In order to make Instant Payments possible, the EPC proposed the design of a new SCT Instant Payment scheme, called SCT Inst. How can SCT Inst stakeholders find the balance between setting targets and remaining ambitious at the same time?
In SEPA, some countries – the UK and Denmark for instance – have successfully launched domestic instant payment solutions. These operate only within the borders of individual countries or among customers of the same payment service providers (PSPs). To avoid a fragmentation of solutions the ERPB has called for a pan-European solution. The SCT Inst scheme will be based on the credit transfer payment instrument, for transactions in Euro throughout SEPA countries. “In order to make it as cost-efficient as possible for the scheme participants, it will have, where possible, the same foundations as the existing SEPA Credit Transfer scheme (use of same business rules, datasets, attributes and exception handling)”, according to the EPC. Read more
More and more often, we happen to hear people talking about a near future in which we will not use cash anymore. According to some, it could even happen within 2025. Actually, the world of digital payments is going through a period of great ferment. Technologies applied to financial transactions are becoming more and more innovative and accessible like the Identity Check App by Mastercard, that allows authorizing a payment through a simple selfie. In a recent blog we wrote about the usage of contactless payments in Europe, but what is the status in Italy? The Italian citizens that are traditionally bond to the use of cash are now showing less scepticism towards the news that are claimed as apparently ground-breaking.
The trend has grown because of the highest propensity of the end-users to use smartphones or tablets for online purchases of goods and services. In Italy, even though the number of cards per capita is among the highest of Europe, in terms of digital payments, we still have such a very long way to go. Evidence by the figures recently released by Visa Europe show that in the last 12 months – from May 1st 2015, to April 30th 2016 – 3 billion contactless transactions were made on Visa network, that means over three times towards what was registered for the same time of the previous year. But still: Italy finds itself one step back. Read more
We can buy our groceries, movie tickets and a cup of coffee with just a simple slide of our bank card or a single touch on our smartphone. But even though this ‘new’ payment systems were introduced years ago, a recent survey of Future Thinking shows a lack of trust. If ‘contactless’ wants to grow, it really needs to get the elderly on board. Read more
Even if you’re number one, you have to think like number two. Market leaders simply can’t stop and enjoy their lead, because the competition is keen to take their spot at the top. This also applies to companies in the payments industry: market leaders must continue to innovate in order to maintain the largest market share and to remain relevant. We see a distinct difference in business models emerging nowadays: companies either choose to focus on payments or they focus on the user experience. In the era of rapid digitalisation, what is the best strategy for financial companies to get and remain relevant?
Even with the growing popularity of electronic payments, mobile banking and digital wallets cash remains resilient. That is the conclusion of the recent publication of G4S, a cash management company, on cash use across 28 European countries. ‘The volume of cash in circulation has increased 11 percent up to 2015 with cash now making 60 percent of all payment transactions’, according to the report. Is cash here to stay? The answer of that question depends on who is answering it. “In five years the vast majority of the cash will be out of the system”, says the opposing side MasterCard.
Let’s zoom in on the various opinions and beliefs on the future of cash payments. To say something about the future, it is eminent to research the present state; how many transactions are made with cash and is there a trend in cash payments? Read more
The rapidly growing popularity of mobile peer-to-peer (P2P) cash transfers in recent years holds pride of place as one of the most exciting developments in m-payments & commerce. An Economist Intelligence Unit (EIU) survey of major European banks reveals that financial technology is radically alter the relationship between the users and providers of banking services, with 65% of the over 200 banking executives interviewed expecting further growth especially in retail P2P payments.
P2P payment services enable individual users to transfer small amounts of cash in real time – to split the bill for an evening out, for instance, or to pitch in for a collective gift – using “instant payment” mechanisms that make the transferred funds immediately available to the beneficiary, essentially doing away with the tedious and time-consuming procedures associated with bank drafts (which are still preferred for transactions entailing larger sums). Read more