Financial Services

Dear cardholder, we forgive you

It is the stuff of dreams, and a great way to make your customers love you. Two years ago, US credit card business Chase made the decision to exit the Canadian market. To complete this, it has “forgiven” the debts of all its Canadian customers.

Chase has forgiven credit card debts of all its remaining Canadian customers

In a statement to the New York Times, Chase confirmed that the move was not a fluke or computer glitch. Instead, forgiving debts made it easier for the bank to … [Read more...] about Dear cardholder, we forgive you

Fintech startup offers automatic switching to best rates – to guard against ‘loyalty penalty’

The practice of penalising customers for being loyal is coming under major attack in the UK, where utilities, mobile phone companies and insurance firms have been particularly culpable. Financial services are not without fault either and last month a ‘super complaint’ was lodged by Citizens Advice to the Competition and Markets Authority which estimated savings customers had lost out on more than £800 million since September 2018.

The CMA claims that as with other sectors, … [Read more...] about Fintech startup offers automatic switching to best rates – to guard against ‘loyalty penalty’

PSD2 enabling new loyalty offerings

The pressure is on to find a loyalty proposition for payment cards that is better than the existing models and PSD2 is helping.

One company hoovering up retailers is startup Joko which has as investors Partech, Axeleo Capital, Lafayette Plug and Play, plus some financial services angels and which has just raised 1.6 million euros in a funding round. What it says it will do is develop a “simple and universal loyalty program integrated into credit or debit cards.”

The … [Read more...]

Understanding the implications of Facebook’s participation in Libra

Facebook is just one of the 28 founding players backing the Libra digital currency system. Other parties involved include Visa, Mastercard and Paypal plus others such as Uber and Vodafone.

Libra blockchain digital currency has 28 founding members and by its launch in 2020 will have as many as 200 participating players.

Libra is a permissioned blockchain digital currency. It is an open system, which means that any consumer, developer, or business can use the Libra network, build … [Read more...] about Understanding the implications of Facebook’s participation in Libra

Fines for firms exploiting customer loyalty

Retiring prime minister of the UK, Theresa May intends to reform the current practice for customers to be penalised for their customer loyalty, as is currently the practice by utilities, telcos, insurance and financial service firms particularly.

UK regulators will be given new powers to stop loyalty penalties which are estimated to be costing households billions of pounds.

A consultation is to be held on giving the Competition and Markets Authority (CMA) the ability to … [Read more...] about Fines for firms exploiting customer loyalty

Plaid enters UK selling bank data to fintechs

Financial services have always lagged behind other sectors (particularly retail and airlines) in their ability to access and use customer data.

So a recent announcement that US-based fintech Plaid is entering the the UK market to offer to fintechs access to the consumer-account data held by established banks and other big players is likely to raise some eyebrows.

Plaid has built up a very comfortable business in the US selling software to customers who tend to be … [Read more...] about Plaid enters UK selling bank data to fintechs

Banks turning to fintech for customer solutions

Banks partnering for the experience

Strengthening online security revealed to be a priority for almost two-thirds of banks

More than three-quarters (84%) of banks are considering new fintech partnerships in 2019 in a bid to improve customer experience and a real-time response.

Kyle Ferguson, CEO Fraedom

The research, commissioned by fintech provider Fraedom, also found that other factors inspiring banks to partner with fintechs are better cash … [Read more...] about Banks turning to fintech for customer solutions

Transferable points offer has power to disrupt

There has been little fuss around the latest loyalty move from JP Morgan/Chase but if it becomes more widespread, it has the potential to disrupt the marketplace.

Chase has launched a transfer bonus for its credit card rewards customers, offering a 30% bonus when they transfer Chase Ultimate Rewards points to the British Airways Executive Club frequent flyer programme.

Transferable points is a concept that has been gathering steam over the past year or so and it seems … [Read more...] about Transferable points offer has power to disrupt

Yandex offers 10% cash back by cross selling services

Two Russian banks first partners

Yandex, which describes itself as a technology company that builds intelligent products and services powered by machine learning, has partnered with two of Russia’s leading banks on a payment card with a powerful reward offering.

Alfa-Bank and Tinkoff Bank will be the first to partner with Yandex, and Yandex Taxi will be the first service to be offered with a 10% cash back reward. There are 15 Yandex services, and these will be offered at … [Read more...] about Yandex offers 10% cash back by cross selling services

Unisys launches personalised rewards platform

Taking advantage of open banking rules

Software company Unisys, which works with 450 of the world’s banks, has chosen two relatively minor UK building societies to launch a new version of its banking platform, using new Open Banking rules offering personalised offers and insight.

Open banking rules make it a requirement for financial institutions to share data with other organisations and for banking customers to easily access third party applications and services. Using … [Read more...] about Unisys launches personalised rewards platform