Enter ObjectChain Collab, a research and proof-of-concept project looking at making individual, distributed ID a reality.The group has brought together financial institutions and regulators from across the globe, as well as legal professionals and representatives of the charitable sector."The major impediment to adoption is not the technology, but the breadth of the impact, and so the 'problem of adoption'.He outlined their collaboration of regulated businesses banks, insurance, legal, etc which included the close involvement of the Financial Conduct Authority and their technical architecture D.id that informs this approach.This is happening with the help of the FCA 'credentialing' us to other national regulators."The main collaboration meetings will remain London-based, coordinating the inputs to the various research workstreams, with complementary meetings occurring in each participating regulatory domain.
Financial services is widely considered to be one of the last industry areas to fully embrace the cloud, but two big deals show that this could be able to change.FleetCor, a company that offers specialised payment products and powers 1.9 billion transactions per year, has decided to move its infrastructure to the IBM Cloud.FleetCor provides payment cards for expenses in the areas of fuel and lodgings to businesses and has a market capitalisation of around $14bn, with around $1.7bn in sales expected for 2016.Banks have typically been slow to move to the cloud due to regulatory concerns and because of the complex nature of shifting away from legacy systems that have been the core of their operations for decades.To some extent the regulatory concerns have been eased by actions taken by the Financial Conduct Authority which proposed guidelines in 2015 for cloud technology to be used as long as the appropriate safeguards are in place.AWS is said to have been working closely with FS regulators in order to help support its push into the market.
Entrepreneur bank OakNorth, launched eight months ago, moves entire core systems into the public cloudA British bank has become one of the first in the UK to move its entire core infrastructure onto the cloud, and has chosen Amazon Web Services AWS as its provider.RegulationsOakNorth provides loans of between £1m – £15m to entrepreneurs and fast-growth businesses, has been working closely AWS and the regulator for six months on policies related to access to data, business continuity, as well as data protection and security provided by cloud systems.online bankingGavin Jackson, Amazon Web Services UK boss, said: We are delighted to have worked with OakNorth to adopt the AWS cloud.This demonstrates to customers that even highly regulated industries are entrusting their critical systems to AWS and are benefitting from the flexibility, agility and security of cloud computing to deliver innovative services to customers.But OakNorth s announcement is the first of its kind in the UK, and could show other banks that moving legacy infrastructure and core systems into public cloud could come with a whole host of benefits.The Financial Conduct Authority FCA proposed new guidance on cloud and other IT outsourcing last November in order to promote innovation and competition in the sector.
Money as a concept has changed a lot over the years - from mounds of salt back in Roman times 'salary' is derived from the Latin for salt through to gold, then innumerable currencies and now to today's vast digital transactions.Increasingly that's trickling down to us consumers too - from Wave and Pay in your local city bar, paperless bank statements and Oyster cards, through to rumors that Denmark is planning to go entirely digital.The best-known of these alternatives is probably Bitcoin - more details on that below - and these could really change our banking world fundamentally, if enough of us decide to trust them.The central technological achievement is that all transactions are recorded publicly, within the 'blockchain cypher' which Bitcoin is based on, which means the lack of central 'owner' isn't an issue.However, it's far from unregulated - Circle has an Financial Conduct Authority E-Money Issuer license, the first one ever issued to a consumer internet firm for cross-border payments with blockchain technology.However, Samsung's use of tech called MST Magnetic Strip Technology as well as NFC means that non-NFC-enabled readers will be able to accept transactions, which will bring many more retailers into the fold - especially when it completes its launch in the UK.
Regulations arising from the global financial crisis have sought to significantly change how UK banks operate, and in order to comply with the changing requirements they have had to restructure large sections of their business.This takes times and money and with the threat of significant fines looming over the heads of banks that fail to change, combined with challenger banks plotting a beeline for markets that traditional banks have controlled, change can't come quickly enough.Since its change of role the FCA has become a proactive legislator, meaning that it has introduced and proposed legislations that would help to promote competition, make it easier for fintechs to break into the financial services market, and change the way banks operate.Banks are faced with preparing for ring-fencing, which will force the largest UK banks to shift their retail operations into separate subsidiaries that operate independently from riskier activities such as investment banking.To tackle the problem of competition in the banking sector, the Competition and Markets Authority has recommended the creation of open application programming interfaces APIs and data sharing, in addition to creating more competition it is hoped that this will promote greater transparency for account holders.What this all points to is a large amount of work that businesses, including banks, will have to undertake in order avoid being potentially hit by a maximum fine of €20 million or 4 percent of annual global revenue.
Blomfield says the £15-20 million figure has been agreed with the regulator as a condition of having its restrictions lifted.'They're looking for breadth and depth' BI heard from two sources close to Mondo that Britain's financial watchdog- the Financial Conduct Authority FCA - has been querying Blomfield's role as CEO given his lack of banking experience and could ask him to take a less prominent role in the startup bank."The feedback we have had so far - they asked me to appoint a deputy CEO.Prior to cofounding Mondo Blomfield cofounded direct debit startup GoCardless.However, unlike its rivals, Mondo is yet to be fully licensed by the Bank of England, meaning that at the moment it is only able to issue pre-paid cards that have money loaded onto them through the app rather than debit cards.The startup revealed last week that it is having to change its name over a trademark dispute.SEE ALSO: A Lloyds exec got asked about a rumour it is going to buy startup bank MondoDON'T MISS: 'Hopefully we won't be Banky McBankface': Startup bank Mondo is letting customers change its nameNEXT UP: App-only bank Mondo raised £1 million on Crowdcube in just 96 secondsNOW WATCH: Don't walk into an interview at Goldman Sachs without doing this firstLoading video...
Starling on Wednesday announced it has received a restricted banking licence from the Financial Conduct Authority FCA and the Prudential Regulation Authority PRA , meaning it can now hold deposits and operate as a bank with certain restrictions.If everything goes to plan, the FCA and PRA will lift the restrictions and give it a full licence once the bank proves
News: Bank plans to launch in January 2017.Challenger start-up bank Starling has been granted a UK banking licence from the Prudential Regulatory Authority and the Financial Conduct Authority.The digitally-native mobile bank, which is planning to launch in January 2017, revealed that it has received a restricted banking license from the two regulators, this means that it will now be able to hold deposits and operate as a bank.It is expected that once the bank has proven itself the FCA and PRA will lift the restrictions and give it a full license.Anne Boden, CEO, Starling Bank, said: We are delighted to have the confidence and support of the regulator, to move forward and introduce a new style of banking.For the past year, our team has been focused on building our product and technology from the ground up.
MoreAn ARM and SoftBank Group branded board is displayed at a news conference in London, Britain July 18, 2016.LONDON Reuters - A Dallas hedge fund was among investors betting on a fall in the price of ARM Holdings when SoftBank Group's surprise $32 billion bid sent shares in the British chip designer surging nearly 50 percent.The set-back for such hedge funds, who position themselves to profit from swings in stock prices, comes at a difficult time for the industry as many peers have seen their performance slide and some investors have even demanded their money back.Data from Britain's regulator, the Financial Conduct Authority, shows that Maverick Capital had a substantial outstanding short position in ARM of roughly 1.2 percent of its shares when the SoftBank bid was announced on Monday.The data shows that Maverick had a short position of 0.67 percent as of Jan. 6 and increased that to 1.2 percent on May 3.Investors use short selling strategies to bet that a stock price will fall.
The recommendations approve cloud services but recommend clear policies around where data is heldThe Financial Conduct Authority FCA has issued its final guidance for financial services firms operating in the UK on the use of cloud-based services, but industry experts said the handbook fails to provide clarity in some key areas.This guidance is intended to help all firms to effectively oversee all aspects of the life-cycle of their outsourcing arrangements: from making the decision to outsource, selecting an outsource provider, and monitoring outsourced activities on an ongoing basis, through to exit, the FCA said in its guidance.In the document the regulator concludes that there is no fundamental reason why cloud services including public cloud services cannot be implemented, with appropriate consideration, in a manner that complies with our rules .While the guidelines are not binding the FCA said it expects firms to take note of and make use of them.It sets out specific requirements on outsourcing, including a recommendation that firms
View photosMoreThe logo of the new Financial Conduct Authority FCA is seen at the agency's headquarters in the Canary Wharf business district of London April 1, 2013.LONDON Reuters - Britain's markets watchdog has dropped plans for a formal market review of whether Big Data might make it harder or more expensive for some customers to buy car and home insurance, saying there was no evidence of that so far.Insurers are increasingly using technology to extract value from large sets of data on customers - which can include tracking customers' use of social media or even driving habits.So far, the industry is using the data mining techniques in a positive way, to develop new products and cut paperwork, the Financial Conduct Authority FCA said on Wednesday following feedback from the industry.But it said insurers could find ways to differentiate between customers to charge some customers more.The FCA said it would not launch a market study, as concerns about higher prices were "not yet materialising".
We asked them and they said it's all good, so we're happyThe Financial Conduct Authority has said there s no need to launch a full market study into insurers use of big data, despite concerns that insurers' could be using to charge consumers more.Following a call for inputs last year on the use of data and analytics in home and motor insurance, which returned 27 written responses, and a number of meetings with a wide selection of stakeholders, including trade bodies and consumer groups the FCA has decided not to launch a full market study.In a statement today, the FCA acknowledged that there were two areas in which the use of big data could leave consumers worse off.Firstly, it had the potential to increase the extent of risk segmentation that insurers use to maximise profits and minimise losses, so that categories of customers may find it harder to obtain affordable insurance.The FCA carried out a further review of parts of the general insurance sector which indicated that while this was not yet materialising, it would remain alert to "the potential exclusion of higher risk customers and will engage with government if concerns begin to develop because of how firms are using Big Data."
Victims are often tricked on the phonePeople who are tricked into transferring money to a fraudster deserve better protection, according to consumer group Which?.It wants financial authorities to order banks to offer people the same protection that credit card fraud victims receive."People cannot be expected to detect complex scams pressuring them to transfer money immediately or look-alike bills from their solicitor or builder."The consumer group pointed out that banks have security checks on activities where they are liable to reimburse the victim, for example on credit card fraud.is making a super-complaint to the Payment Systems Regulator and alerting the Financial Conduct Authority.
MoreA worker arrives at his office in the Canary Wharf business district in London, Britain, February 26, 2014.Reported attacks on financial institutions in Britain have risen from just 5 in 2014 to 75 so far this year, data from Britain's Financial Conduct Authority FCA show.Touboul cites the example of one large global financial institution he works with which experiences more than two billion such "events" a month, ranging from an employee receiving a malicious email to user or system-generated alerts of attacks or glitches.Machine defenses filter those down to 200,000, before a human team cuts that to 200 "real" events a month, he added.Banks are not obliged to reveal every such instance as cyber attacks fall under the FCA's provision for companies to report any event that could have a material impact, unlike in the U.S. where forced disclosure makes reporting more consistent.A report published in May by Marsh and industry lobby group TheCityUK concluded that Britain s financial sector should create a cyber forum comprising bank board members and risk officers to promote better information sharing.
Reuters – Britain s banks are not reporting the full extent of cyber attacks to regulators for fear of punishment or bad publicity, bank executives and providers of security systems say.Reported attacks on financial institutions in Britain have risen from just 5 in 2014 to 75 so far this year, data from Britain s Financial Conduct Authority FCA show.However, bankers and experts in cyber-security say many more attacks are taking place.In fact, banks are under almost constant attack, Shlomo Touboul, Chief Executive of Israeli-based cybersecurity firm Illusive Networks said.Touboul cites the example of one large global financial institution he works with which experiences more than two billion such events a month, ranging from an employee receiving a malicious email to user or system-generated alerts of attacks or glitches.Machine defenses filter those down to 200,000, before a human team cuts that to 200 real events a month, he added.Banks are not obliged to reveal every such instance as cyber attacks fall under the FCA s provision for companies to report any event that could have a material impact, unlike in the U.S. where forced disclosure makes reporting more consistent.There is a gray area…Banks are in general fulfilling their legal obligations but there is also a moral requirement to warn customers of potential losses and to share information with the industry, Ryan Rubin, UK Managing Director, Security & Privacy at consultant Protiviti, said.Banks are not alone in their reluctance to disclose every cyber attack.Of the five million fraud and 2.5 million cyber-related crimes occurring annually in the UK, only 250,000 are being reported, government data show.But while saving them from bad publicity or worried customers, failure to report more serious incidents, even when they are unsuccessful, deprives regulators of information that could help prevent further attacks, the sources said.A report published in May by Marsh and industry lobby group TheCityUK concluded that Britain s financial sector should create a cyber forum comprising bank board members and risk officers to promote better information sharing.Security experts said that while reporting all low-level attacks such as email phishing attempts would overload authorities with unnecessary information, some banks are not sharing data on more harmful intrusions because of concerns about regulatory action or damage to their brand.The most serious recent known attack was on the global SWIFT messaging network in February, but staff from five firms that provide cyber security products and advice to banks in Britain told Reuters they have seen first-hand examples of banks choosing not to report breaches, despite the FCA making public pleas for them to do so, the most recent in September.When I moved from law enforcement to banking and saw what banks knew, the amount of information at their disposal, I thought wow , I never had that before, Troels Oerting, Group Chief Information Security Officer at Barclays and former head of Europol s Cyber Crime Unit, said.Oerting, who joined Barclays in February last year, said since then banks sharing of information with authorities has improved dramatically and Barclays shares all its relevant information on attacks with regulators.Staff from five firms that provide cyber security products and advice to banks in Britain told Reuters they have seen first-hand examples of banks choosing not to report breaches.Banks are dramatically under-reporting attacks, they do what s legally required but out of embarrassment or fear of punishment they aren t giving the whole picture, one of the sources, who declined to be named because he did not want to be identified criticizing his firm s customers, said.Apart from Barclays, the other major British banks all declined to comment on their disclosures.The Bank of England declined to comment and the FCA did not respond to requests for comment.Companies that use external security systems also do not always inform them of attacks, the sources said.
It's not like the public will think any worse of youTop techies at British banks are being encouraged to share information about cyberattacks following revelations that the financial sector is under-reporting breaches to regulators.US regulations oblige banks to disclose breaches, and reporting is more consistent as a result.In the UK, only breaches that have a material impact need be revealed – something open to interpretation.Jacob Ginsberg, senior director at Echoworx, argued that the EU s General Data Protection Regulation GDPR directive, which comes into force before Brexit, will remove banks ability to keep quiet about some security problems.Articles 31 and 32 of the GDPR would bring EU regulation more in line with US banking regulation, with forced disclosures shoving these conversations out into the open, hopefully to everyone s benefit, said Ginsberg, who argues banks could benefit from increased openness and sharing about security problems.
View photosMoreA Tesco supermarket is seen, in west London on September 30, 2008. .LONDON Reuters - Tesco Bank, owned by Britain's biggest retailer Tesco, halted online transactions from all current accounts on Monday after money was stolen from 20,000 of them in the country's first such cyber heist.The bank, which manages 136,000 current accounts, said it would repay people who had lost money in the attack, which targeted 40,000 accounts in all and fuelled fears about the British financial sector's vulnerability.Tesco Bank's Chief Executive Benny Higgins told the BBC he thought "relatively small amounts" had been stolen, but the bank declined to give details of how much money in total had been taken or if it knew how the thefts had transpired.Other British banks have been targeted by hackers in recent years, but the Financial Conduct Authority FCA regulator said it was not aware of any previous incident in which customers had had money stolen.Higgins said the cost of refunding people under its regulatory obligations would be "a big number but not a huge number".
Blockchain remittance specialist Epiphyte is testing its technology in the FCA's sandbox.The FCA sandbox is working with blockchain company EpiphyteTo continue providing news and award winning journalism, we rely on advertising revenue.To continue reading, please turn off your ad blocker or whitelist us.London based blockchain remittance specialist Epiphyte will be working with the UK regulator, the Financial Conduct Authority, to test cryptocurrency.Epiphyte will be working within the FCA's sandbox, exploring ways to provide cheaper and more efficient cross-border payment services using blockchain systems such as Bitcoin.
View photosMoreA Tesco supermarket is seen, in west London on September 30, 2008. .LONDON Reuters - The theft of money from accounts at Tesco Bank is a threat to national security and undermines public trust in financial firms, Britain's interior minister Amber Rudd said on Thursday.Rudd said the government recognized financial crime such as cyber crime and money-laundering as a national security threat, which costs 24 billion pounds a year."The recent example of Tesco Bank is a stark example of what we face," Rudd told a Financial Conduct Authority FCA conference on financial crime.She was also "deeply concerned" by claims London is a major global money laundering center, she said."Money laundering still poses a real threat both to the UK's international reputation and integrity of our world leading financial center," Rudd said.
Bank security under scrutiny following Tesco Bank hack.The CEO of the UK s Financial Conduct Authority believes that a combination of big data analytics and distributed ledger technology will be important tools in the fight against financial crime.Speaking at an FCA conference on financial crime, Andrew Bailey, CEO of the FCA, said that financial crime is an area ripe for applying technologies such as big data and distributed ledger technologies.If ever there was an area that strikes me as ripe for applying technology to harness the power of Big Data alongside distributed ledger technologies to produce better outcomes, while rationalising the process and cutting costs, it is financial crime, said Bailey.This came as Bailey identified that while easier access to financial systems, markets and institutions is of great benefit to society, it also provides opportunities for criminals.Bailey said: But it can also provide more capability to identify and prevent financial crime risks.