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Legacy IT Systems Lose U.S. Lenders $407 Million Every Year, Reveals New Divido Research

Vlad Poptamas

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Photo source: spiria.com
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Divido, the multinational white label platform for point-of-purchase lending, has today released the findings of its latest research, The Global Lending Report. The report provides insights and trends into the future of the global point-of-sale lending market. Divido surveyed senior decision-makers in the banking/lending space across seven different regions, including the U.S., U.K., GermanyFranceSpainItaly and the Nordics.

Point-of-sale finance is booming

Fuelled by consumer push-back on credit cards and a desire to have more flexibility when it comes to spending, the average U.S. lender estimates point-of-purchase finance will be worth almost $407 million to their individual business over the next 12 months.

Alongside this, U.S. lenders are set to invest an average of $45 million each into their point-of-purchase IT infrastructure over the next year. Across the seven markets, investment into point-of-sale finance is a priority for lenders, with two-thirds planning to invest between $1-500 million in this space over the next 12 months.

The wounds from failed projects are still fresh

Lack of appetite for investment following previous failed legacy IT projects remains a major concern, with 54% of U.S. lenders ranking it as the biggest challenge when it comes to delivering payments technology. Alongside this, in the last 12 months, IT projects for lenders in the U.S. ran over budget on average by $11.7 million.

“Banks are in a tough place. They’re facing competition from multiple directions but can be held back by increasingly expensive legacy systems that limit product development in-house,” said Christer Holloman, CEO and co-founder, Divido. “There is another option, banks can look to use third party fintech companies to release the increasing pressure on internal legacy IT resources. By doing this, they can safely turn their attention to focus on more timely core business issues, such as defending market positioning, addressing regulatory changes and winning new deals.”

Concern around new fintech players

New entrants are a top concern for 75% of lenders. No lenders agreed that they are confident about their ability to compete with these new market entrants, with 32% highlighting the ease at which new entrants can integrate with other businesses’ IT infrastructures, as their biggest concern.

That said, global collaboration among lenders and fintechs is firmly on the rise, with two-thirds stating that would consider partnering with a third party platform provider to deliver services to consumers.

Divido’s lending platform is quick to integrate with, works in multiple markets and with multiple lenders. It is currently available in the U.S, UK, GermanyFranceSpain, Italy,  and the Nordics.

To read the full report and access the different market guides, including the U.S. one, please go to The Global Lending Report.

Methodology

The Global Lending Report is an independent research project, conducted by Coleman Parkes in April and May 2019. It surveys 700 IT decision makers at financial service providers with over 1,000 employees in the U.S., UK, Nordics, GermanyFranceSpain and Italy that offer loan and credit services. Represented in the survey are job titles such as CEO, CTO, COO, CIO and IT Director.

 

SOURCE Divido

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Fintech

Vestmark Honored with Silver Stevie® Award at 2019 American Business Awards® Gala

Vlad Poptamas

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Vestmark is proud to have received the Silver Stevie® Award in the FinTech Solution category as part of the 17th Annual American Business Awards®, in recognition of the VestmarkONE®platform’s recently launched advanced options trading and risk management module.

Mark Peabody, Senior Vice President of Product Management, accepted the award on Vestmark’s behalf at this year’s American Business Awards gala last week at the Marriott Marquis Hotel in New York City.

This options module, available on the VestmarkONE® platform, provides an innovative trading and risk management capability that enables advisors to scale options trading and more efficiently use options strategies across all types of advisory programs.  With this tool, hundreds or even thousands of accounts – across an entire book of business – can be traded at once, without impacting accounts following models, avoiding false rebalancing alerts and model drift notifications.  The module also includes several automated risk management functions to help advisors and firms balance the risk of trading options.  For more details, visit https://www.vestmark.com/solutions/vestmark-one/options-trading-and-risk-management.

Over 3,800 nominations of public, private, for-profit, and non-profit U.S. organizations of all sizes, and from a wide variety of industries, were submitted to American Business Awards® categories this year.  More than 200 professionals worldwide participated in the judging process to select this year’s Stevie Award® winners.  For a full list of 2019 Stevie Award® winners, and to obtain more information about the American Business Awards®, visit https://stevieawards.com/aba.

In selecting the VestmarkONE® platform for its award, the panel of judges lauded the platform as an “impressive product and innovative usage of technology,” and described “VestmarkONE’s New Options Module, one of the best products in its category that allows users to provide options trading across platforms.”

“I commend our teams at Vestmark for their ongoing commitment to developing and enhancing leading edge technology solutions for financial advisors and institutions,” said John Lunny, CEO of Vestmark. “This innovative options trading and risk management module in the VestmarkONE® platform makes it possible to scale the implementation of sophisticated portfolio management strategies for clients and accounts of all sizes.  We are honored that our peers recognize the impact this innovation can have on the wealth management industry.”

 

SOURCE Vestmark

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Blockchain

Wise MPay Partners With Jelurida to Launch Blockchain Financial Services Platform in Southeast Asia

Vlad Poptamas

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Jack Bai and Jelurida team members during their visit to Singapore in November 2018 with the Wise MPay ATMs (PRNewsfoto/Jelurida Swiss SA)
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Singapore-based global payments technology company, Wise MPay, are working with renowned blockchain experts, Jelurida, to launch a public-permissioned blockchain financial services (BFS) platform. With KPMG research showing 27% of Southeast Asians own a bank account while local mobile connections outnumber the population by 33%, the region is ripe for a revolution in access to digital finance. Coalculus is aiming to launch in September 2019 as JPL-compliant software that brings cutting-edge digital payment, remittance, and ATM solutions to governments, banks, and the unbanked of Southeast Asia.

Banks and financial institutions consider blockchain capable of both increasing trust in multi-party centralized ecosystems and increasing the speed, security and efficiency of many traditional banking processes. The Coalculus BFS platform is being built on the time-tested Proof-of-stake (POS) consensus algorithm, ensuring high levels of decentralization, security, scalability and efficiency. Based on a permissioned version of Jelurida’s Ardor technology, Coalculus promises lower costs, faster execution of transactions, improved transparency, auditability of operations, and other advantages that will benefit both financial institutions and unbanked individuals seeking access to digital financial services.

Wise MPay also added end-to-end KYC/AML/CFT processes to its enterprise blockchain solution, value added with internet-of-things (IOT) devices such as prepaid cards and automated teller machines (ATMs). Additionally, Coalculus provides the infrastructure for easily developing, integrating, and adopting mobile applications with built-in tools like QR code generators and standard application programming interfaces (APIs).

Mr Jack Bai, Director of Wise MPay, said, “Our vision for Coalculus is to create a globally-trusted financial transaction facilitation platform, but our initial focus is between ASEAN (Association of Southeast Asian Nations) countries, Hong Kong and Australia. Our framework is a convergence of public and permissioned blockchains developed on the simple idea that organizations should be able to quickly and easily implement new financial services and leverage the benefits of blockchain. This is our USP and this is why we chose Jelurida as our technology provider.”

“We are impressed by the professionalism of the Coalculus team. Wise MPay came to us with more than just a vision,” said Lior Yaffe, Senior Developer and Managing Director of Jelurida. “They keenly understand the different blockchain technologies on the market and have identified opportunities for maximizing the value of their BFS platform. It has been our pleasure to support the team at Wise MPay in making Coalculus a reality.”

 

SOURCE Jelurida Swiss SA

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Artificial Intelligence

Chinsay’s Intelligent Contract Platform Enables Rio Tinto & Cargill to Complete the First Fully Digitalised Iron Ore Trade

Vlad Poptamas

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Photo source: salestechstar.com
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Chinsay, the leading provider of contract digitalisation solutions in the commodity and freight markets, is announcing today the completion of the first fully digitalised iron ore trade, through a trial achieved in partnership with Rio Tinto and Cargill‘s Metals business on Chinsay’s Intelligent Contract Platform (ICP).

In using ICP, Rio Tinto and Cargill collaborated on a single platform to dramatically reduce the time it takes to create, issue and approve commodity contracts from several days to under two hours. The digitalisation of this fundamental trade process creates the opportunity to automate and deliver post-trade efficiencies by linking front-, middle- and back-office functions.

Colin Hayward, Chinsay CEO, said: “This is a technological milestone for the industry, and we are delighted Rio Tinto and Cargill Metals chose to partner with us and use our ICP as the core technology to create this advance. We are constantly collaborating with clients, market participants, tech vendors and industry consortia to extend digitalisation further along the commodity trade lifecycle.”

“The Intelligent Contract Platform is a great tool that has the potential to benefit the entire ferrous industry,” said Lee Kirk, Managing Director for Cargill’s Metals business. “This is a great example of how we can leverage advancements in technology to benefit from increased speed, transparency and efficiencies that enable us to serve our customers and suppliers better.”

ICP is state-of-the-art technology which allows companies to digitalise pre-trade processes early in the deal lifecycle, creating an agreed contract dataset that can be seamlessly integrated with other operational systems, functions and processes, enabling transparency and traceability across the supply chain.  ICP prepares clients for the use of technologies such as blockchain, ML, AI and electronic trade documentation solutions.

 

SOURCE Chinsay

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