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Link: Acquired.com
Summary:
Open banking and the battle against APB (Authorized Push Payment) fraud take center stage in this comprehensive discussion. The conversation covers the intricacies of confirmation of payee, the challenges posed by fraud, and the potential impacts on open banking. Here are the key points and ideas:
- Confirmation of Payee: This verification process helps combat APB fraud by ensuring that the account name matches the bank’s records.
- Rising APB Fraud Cases: In 2022, nearly 200,000 cases of APB fraud were reported, resulting in approximately £500 million in gross losses.
- Shared Liability: Regulatory changes have introduced shared liability, with banks now sharing the cost of reimbursing victims of APB fraud.
- Friction in Open Banking Payments: Some banks may introduce additional verification steps for manual bank transfers, potentially impacting the efficiency of open banking payments.
- Advantages of Open Banking: Open banking offers advantages like instant settlement and cost efficiency compared to traditional card payments.
- Innovation Takes Time: While open banking is innovative, it may take time to match the speed of payment methods like Apple Pay.
- Recurring Payments: The introduction of recurring payments in open banking could make it competitive with other methods.
- Refunds and Payments: Merchants can provide better refund experiences through open banking, offering real-time refunds to customers.
- Collaboration for an Ecosystem: Collaboration between banks and stakeholders is crucial to creating an ecosystem with incentives for all players.
- Regulatory Measures: Regulatory tools like confirmation of payee enhance security and reduce fraud in open banking.
- Reducing Friction: To encourage adoption, open banking should focus on reducing friction and offering seamless checkout experiences.
- Cautious Approach: Banks must be cautious when adding verification steps to avoid negatively impacting open banking’s cost efficiency.
Key Statistics:
- 200,000 cases of APB fraud reported in 2022, resulting in £500 million in losses.
- Open banking payments offer a higher conversion rate compared to card payments.
Key Takeaways:
- Open banking continues to evolve, offering advantages in terms of efficiency and security.
- The battle against APB fraud requires collaborative efforts and regulatory measures like confirmation of payee.
- Innovation in open banking is ongoing, with potential for further improvement in the customer experience.
- Reducing friction in open banking payments is essential to encourage adoption.
- Banks must balance security measures with the need for seamless payment experiences.
Podcast Score:
| Category | Count |
|---|---|
| Facts | 10 |
| Ideas | 8 |
| Opinions | 5 |
| Recommendations | 7 |
| Total Score | 30 |
Marketing – Promotional Mentions: 0
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