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in-depth analysis of the mobile payments market by UKFraud’s own Mobile Payment Special Interest Group

By Bill Trueman, CEO of fraud prevention group UKFraud

in-depth analysis of the mobile payments market by UKFraud’s own Mobile Payment Special Interest Group

in-depth analysis of the mobile payments market by UKFraud’s own Mobile Payment Special Interest Group

An in-depth analysis of the mobile payments market by UKFraud’s own Mobile Payment Special Interest Group (SIG) recognised the need for all financial product stakeholders to develop risk reduction strategies capable of matching the projected rapid growth of the global mobile payments sector over the next eighteen months.

There is they felt, a real need for companies operating in this area to be simplified and also to be structured and directed into a common ‘industry’ direction with strong standards, disciplines and built-in anti-risk security. There are so many parties operating in this ‘space’ so many different standards and directions that are being progressed and also so many mistakes being made.

There is no doubt that practices are developing around a growing infrastructure, where strategic advice and direction is much needed across a wide range of mobile payment sector organisations. These organisations are aiming to reduce the risk of moving their products and services to an emerging wallet architecture, but in some cases they are doing so without fully understanding the wider risks or without building their infrastructure into a ‘safe’ and ‘future-proof’ architecture. However, because of the sheer size of the market, and some of the people who have interests in the development of the market, who in the market is capable of providing truly independent ‘best-of-breed advice’ on how to proceed? This surely has to be the role of the consultant and it is an essential role at that.

The areas that are changing fast include, but are not limited to: new devices (such as phones, PDAs and tablets), software (including Apps and browsers) and most importantly to the authentication systems that are to be considered, validated and used. But the payment vehicles, data-transmission routings, encryption service providers, and risk-screening tools are all key and essential parts of the changes and challenges that face us all. There should be advice available on all of these areas of solutions as well as the overall strategy and direction. This should also extend to the fraud risks of transporting mediums such as the internet and/or mobile carriers, including NFC, Bluetooth or Wi-Fi. Overall, the service and indeed the community as a whole should come together to ensure that any money and time invested is not wasted by developing superfluous wallet based products that will not ‘fly’.

Bill Trueman

Bill Trueman

Kevin Smith, the Chair of UKFraud’s Mobile Payment SIG, has been widely reported as seeing a role for the provision of detailed guidance to mobile wallet and mobile payment organisations. This is against a backdrop of key sector bodies grappling with how the markets need European wide codes of practice. In his view, “The European Payments Council is just one leading body that is working hard and well to evolve a common understanding and nomenclature for this complex and fast changing environment. We are keen to see both their vision and the on-going fruits of their labour. However, in the meantime, the global mobile payment market and other key stakeholders have recently been influenced in a very positive and promising way by a series technological launches by market leaders such as Apple, Google and locally by mpowa.

“Those who choose to hone their products around these technologies need urgently now to ensure that there are clear technical rules and constraints, understandable principles and frameworks around what they develop. This includes the related requirements of authentication, reliability, interoperability and transferability. There is therefore clearly a role for advisors to deliver defining guidance to such organisations as how they can minimise the risks involved to both their organisations and their customers. This guidance should also point to the likelihood of emerging standards both at a European and indeed global level.”
Kevin Smith‘s view seems to hit the spot. There are already so many new technology developments in mobile payments and we still haven’t heard from many of the main traditional players yet, probably because they are still gathering their thoughts or formulating business cases. Fortunately, the recent launches by sector leaders such as Google, PayPal and Apple have had an extremely positive impact and have influenced the market greatly for the better. One should recognise both the beneficial impact of these recent developments and the positive prospect of announcements from Europe. These will help organisations to navigate the best route forward for their products and to help them reduce the risks of their own solutions within the broader mobile wallet ‘space’.

In light of the above and with a careful eye on seeking to act for the good of the community as well, both and have combined to set-up our own mobile wallet consultancy practice which will help to unravel these issues. In doing so, we are trying to help organisations to structure the industry direction and to simplify the challenges. Our primary aim is to help them to plan what to do effectively and also to try to help them avoid some of the expensive pitfalls. We are going to make a number of announcements shortly regarding the specific areas of help related to particular mobile wallet and payment device products and propositions. We will be delighted to help any organisation seeking clarity in the market as to what they need to do.

We have also submitted our requirements in the consultation with the European Payments Council (EPC) and we recognise their admirable drive to determine how the market direction should evolve. We look forward to being involved with this in due course as the initiative within the EPC is right, very laudable, but also very important too. We expect to be very busy in this area over the next few years, as this is a key area for market evolution for a long time to come, not just in the area in which the EPC is trying to set direction for, but across the globe. And the news involving other bodies joining together on global initiatives (often involving some highly respected major global payments groups such as Amex, Visa and MasterCard) is also very exciting.


For lenders: 5 reasons for losing a customer



For lenders: 5 reasons for losing a customer 1

By Matt Cockayne, Chief Commercial Officer at Yapily

Businesses of all sizes are battling the ongoing effects caused by the pandemic, and there’s no denying that the UK economy is perhaps worse than it has ever been before. As local lockdowns make their way across the country, businesses are in dire need of extra financial support.

The government-backed loan schemes have been a lifeline for many. But as the demand for financial aid continues to grow, many businesses are not receiving funds quickly enough, and lenders are bearing the brunt of this scrutiny. Indeed, there are those who suggest that lenders are fully aware of the current urgency, so should be doing more to respond to their customers’ needs.

No one could have predicted the detrimental impact Covid-19 has had on the global economy. For lenders, this has left them with no choice but to enforce stricter rules, and add more stringent criteria to manage this influx of loan applications.

While shutting up shop to new customers is an easy route for lenders to take, it’s not forward thinking, and the current market, we hope, is only temporary. As such, growing a customer base is equally as important as retaining existing accounts – especially as there are still lots of  businesses in need of support.

We are already seeing innovative lenders, who are spotting this opportunity to grow their customer base, however there are still some who are missing this possibility to expand.

Below are 5 reasons to why lenders may be losing customers, and how best to fix this:

1. Limited personalisation

Standardised loan options mean customers are limited to how they can respond to the current market and thrive in a post-covid world. But every business is different, so they need personalised options best suited to them.

Services like Open Banking allow lenders to distribute hyper-personalised solutions to their customers. By harnessing real-time transaction and account data, lenders can make much fairer and faster decisions based on a business’ actual financial position, not estimates.

2. Manual, outdated processes

Traditional lending processes take time, and in this current climate – time is money. Not only do manual, paper-based loan procedures take far too much time, they also increase the chance of inefficiencies. By relying on outdated information, lenders are not in the best position to offer businesses the optimal lending options.

Through innovation, the speed and efficiency of lending will drastically improve. Instant access to up-to-date financial information via Open Banking APIs, means lenders can speed up all mandatory approval processes and businesses can receive funds directly into their bank accounts, reducing the delay in receiving loans..

3. No sense of transparency

A lack of transparency for providing loan terms or rejecting loan applications, creates an element of doubt, which ultimately drives customers away.

Lenders need to over-communicate with their customers, explaining in detail how they have reached their solution. This process is made easier through harnessing services like Open Banking. Decisions are based solely around an individual’s financial situation, using real-information instead of generalised data sets, meaning lenders can give transparent feedback to the business in question.

4. Lack of security

Out-dated systems, and long manual processes not only cause inefficiencies, increasing the chance of human error or fraud. For example, human error led CitiGroup to mistakenly transmit $900 million earlier this year.

By harnessing Open Banking, lenders are able to access fast, and highly secure data transfers – customers get to decide who accesses their financial data, and how long they’d like it to be shared for. As processes go digital, there is a significantly lower chance of human error or loopholes opening the door to fraudsters.

5. Substandard lending decisions

Unmanageable application checks are exposing businesses to risk, and causing a holdup for loan distributions – and in these challenging times, it’s not an option for money and time to be wasted.

Open Banking means lenders can develop an accurate picture of their customers’ financial position using up-to-date information. Combined with deep-learning technology and real-time data, lenders can access spending patterns, income, debt and identity verification to build a customer profile and personalise their lending options.

It’s time for lenders to do everything they can to support businesses’ survival. By digitising their lending cycles and harnessing services like Open Banking, lenders can act fast to determine customers’ borrowing options, fairly and efficiently. Not only will this help attract new customers to grow their base, but it will assist in a speedy economic recovery, and help many more businesses as we head into a post-covid world.

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Eight Benefits of International Financing



Eight Benefits of International Financing 2

By Luigi Wewege is the Senior Vice President, and Head of Private Banking of Belize based Caye International Bank


Lending is one of the key elements of any international banking strategy. Just as you would carefully select an offshore bank to provide essential services like checking, term deposit, and savings accounts, it makes sense to learn a bit about the lending options. As you compare loan options, there are several advantages that you’ll notice about many international loan offerings.

Here are a few of the significant benefits that you’re likely to encounter.

Broader Range of Lending Options

The diverse options for international loans are one of the first things that many people notice. You’ll find all the loan types that you’re used to encountering in a domestic setting. If one of those happens to work well for you, that’s great. If not, you’ll find other approaches that are more to your liking.

Exactly how the different loan options compare to one another will vary. Some will be different in terms of how the interest rate is applied to the loan balance. In some cases, the fees that are assessed on the front end or during the life of the loan will be different. Some may require a deposit that you must leave with the lender, while others will require nothing more than paying fees.

In each case, you can compare the terms and costs, settle on the loan type that works for you, and hopefully receive an approval.

Policies and Procedures That Work for You

Another perk of considering international financing is that banking laws and procedures may differ from what you encounter at home. Since some laws vary from one country to the next, it’s possible to find a combination that happens to work in your favor. If so, you could end up saving a significant sum on various fees and charges.

Taking the time to learn about applicable banking laws and procedures is essential. Don’t assume what you know about domestic lending is also valid in a different nation. Work closely with lending officers to ensure you understand how the loans are structured and what obligations you take on if the loan is approved.

Competitive Interest Rates and Terms

One factor that you will find pleasing about international lending is that many types of loans come with interest rates that compare favorably with what you’re used to at home. The terms and conditions are also likely to provide you with more incentive to seek an international loan.

This is especially true in nations that are welcoming to expats. The goal is to encourage expats to invest in the country by taking out loans designed to meet their needs and simultaneously stimulate the economy. To do that, the loan contracts are often structured so that international clients enjoy rates and terms that they may or may not qualify for in their countries of origin.

In other words, you could find more than broader options for loan types and terms. An international lender may be willing to extend financing with terms that a domestic lender would not offer to you.

More Options for Multi-Currency Choices

Have you considered how securing a loan in a different currency could prove helpful? The currency involved could be the local one, or it could be a currency that is currently enjoying an excellent exchange rate with other currencies. By option for that approach, you could conceivably increase the purchasing power that the loan proceeds provide.

Think of what that means if you’re a business professional looking to establish a presence in a given nation. The loan could provide you with funds in local currency to pay suppliers, vendors, or even construction professionals. Even if you’re an expat who’s retiring in a given nation, funds in certain currencies provide what you need to pay necessary bills as well as help cover medical costs not included in medical insurance.

Privacy and Security

You already know that many international financial institutions provide protections that are not always available at home. That applies to loans just as it does to your time deposit or checking account. Obtaining information about the loan terms, payment history, and other essentials will be difficult for anyone who is not authorized to receive the data. It’s one more way that the lender seeks to protect your privacy.

There’s also plenty of security surrounding your personal data. It’s not just a matter of having a password that allows access. The security network of the typical offshore lender contains several measures designed to prevent data theft. That ensures you don’t have to be concerned about your information leaking to anyone who could exploit it for their purposes.

Safety from Political Unrest

Political shifts can and do impact the financial world. That’s true in any nation. You can protect yourself by opting for a country that appears to be politically stable and is unlikely to experience any major upheaval in the future.

Why does this matter? Political shifts do pave the way for possible changes to financial laws and lending. They can also lead to economic changes that may include the onset of a recession or depression. Shifts of this nature can impact all your offshore banking, including any active loans. With loans based in the right nation, you can rest assured that few if any changes will occur during the life of the loan.

Potential Tax Advantages

Depending on the type of loan you’re seeking, there may be tax advantages related to an international loan versus a domestic one. The difference could be mainly in the amount of tax you’ll owe on the loan balance itself. Even a small difference on a loan that will take years to retire could be significant.

The best way to determine what tax advantages exist is to talk with a loan officer. You’ll get a better idea of any taxes that may be assessed by the country where your loan resides. It’s also easier to determine if the banking laws allow the agencies in your country of origin to impose any tax on the international loan. Once you understand what sort of tax burden applies, it will be easier to decide if the international loan is right for you.

Easy to Manage the Loan

How will you go about managing the loan? Just as many offshore banks have full online access to other forms of banking accounts, the same is true for loans. If you have other types of accounts in place with the lender, you can manage everything using a single online account interface.

That makes it easy to check the current loan balance, make payments using funds in a checking account, and even know when the most recent payment is applied to the loan balance. Since the online interface is up and running any time of the day or night, you can manage your loan no matter where you happen to be at the time. As long as you have your login credentials, managing the loan is easy.

Take Advantage of an International Loan Today

Use offshore banking and international lending to your financial advantage. The team at Caye International Bank is ready to help you with all of your banking needs, including personal and business loans.

Contact one of our banking service professionals today and outline what you have in mind. Once you learn more about the various types of options available, one of them is sure to be perfect for your needs.

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How the UK’s tax system could change to recover from COVID-19



How the UK’s tax system could change to recover from COVID-19 3

By Finn Houlihan, Director at ATC Tax  

The economic impact of the COVID-19 pandemic on the British economy continues to be profound. In October, national debt surpassed 100% of GDP, causing Chancellor Rishi Sunak to stress the books needed to be balanced. In order to so, the Government will almost inevitably turn to tax increases as a core part of the long-term recovery effort.

And, with the Office for Budget Responsibility estimating that tax increases of £60bn are needed to restore the UK’s public finances to stability, and avoid a return to austerity, the UK’s tax policies could be set to undergo significant reform.

First up

Already it looks like the Chancellor will begin tax reformation by raising taxes for the wealthy, with a review of capital gains tax ordered in July. There are various ways capital gains tax could be reformed to raise funds. Removing or reducing the annual exemption or losses relief, currently standing at £12,300 would be the obvious way forward. However, while this would apply to a lot of people, it wouldn’t generate a significant amount of funds, although it would most likely win cross-party support.

Inheritance tax has also been discussed in being one of the first types of tax to be reformed. Last year, the Office for Tax Simplification published plans to streamline inheritance tax rules to limit the number of exemptions. While the report hasn’t been put into practice yet, the Government could return to the plans to raise funds.

Fresh approach

With the focus on increased taxes on the wealthy, the calls for a new wealth tax have grown and opinion polls indicate general public backing for one. Implementing a wealth tax would ensure those with the most assets carry the brunt of the financial load, while also raising a significant amount to shore up public finances.

However, the tax would require the creation of a huge administrative framework to deal with the declaration of assets from millions of Brits. The complexity of doing so would likely dissipate some of the public support while would take a long time, given government departments are already overwhelmed with responding to the crisis. A compromise could be found with a one-off wealth tax which would not require the same level of administration while still raise funds in the short-term.

Finn Houlihan

Finn Houlihan

Other new forms of tax have been put forward, including a new tax on goods solid online to prevent the potential collapse of the high street, which is being considered by The Treasury. This tax would involve a 2% levy on goods sold online and a mandatory charge on consumer deliveries. With the Chancellor recently deciding to abolish tax-free shopping for tourists in the UK, it’s clear retail is a main focus of the Government’s tax policy, so this could well become reality.

Another new tax policy considered by the Treasury is the “Capital Values Tax”. This would replace current business rates and be based on the value of land and the buildings on it, with the tax paid by the property owner, rather than the business leasing it.

Precedent set

Another avenue the Government could go down is what has gone before in times of crisis. During both world wars, the Treasury issued war bonds to encourage investment while reduce inflation and remove money from circulation. To aid the economic recovery effort, the Government could introduce COVID-19 bonds to have a similar effect and help businesses recover.

The recovery plan from the 2008 recession will also be on the minds of the Government, particularly as many would have been in the government setup then. However, with Prime Minister Boris Johnson effectively ruling out a return to austerity, it’s likely the Government will do everything they can to avoid the return of unpopular taxes such as the “bedroom tax” which came into effect then.

New landscape

As the COVID-19 pandemic continues to reshape Britain’s economy, so too must its tax policy change with it. Funds will need to be raised in order to reduce debt and this will inevitably involve tax increases and it’s likely the Chancellor will employ a range of methods to create the new tax regime.

Early signs indicate taxes will be raised for the wealthy more than other demographics, with capital gains tax and inheritance tax likely to be targeted. Additionally, new forms of taxes relevant to the changed landscape will likely be put in place, particularly the online sales of goods tax to reflect the digital age. The Government may even look to previous crises, including the world wars and 2008 recession, to see what was done then.

Regardless, there can’t be any doubt that we’re about to enter a new stage of the pandemic response, which focuses around how to emerge from the crisis economically, and tax rises will be one of the first things to come into play.

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