EBA Day 2024: Key Highlights and Insights
EBA Day 2024, held in Lisbon, Portugal, on June 18-19, proved to be a highly engaging and valuable event. It was a productive experience filled with insightful discussions and networking opportunities and in case you missed, here are the key takeaways.
Key Themes and Discussions:
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Fraud and Instant Payments: Instant payments and the associated risks of instant fraud were major topics. The introduction of new schemes like the IXP Iberpay emphasized the need for robust fraud prevention measures.
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Regulatory Advances: The final steps in ISO migration and the need for regulatory-driven digitization were discussed, underscoring the importance of compliance in payment systems.
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Enhancing Cross-Border Payments: Efforts to improve cross-border transactions were highlighted, with a focus on the benefits of open banking and embedded finance.
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AI and Tokenization: The role of AI and tokenization in shaping the future of payments was explored, with an emphasis on using data to enhance security and efficiency.
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Request to Pay and Fintech Collaboration: The importance of collaboration between banks, fintechs, and other stakeholders was a recurring theme, particularly in combating fraud and improving the customer experience.
Key Takeaways:
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Collaboration over Competition: There was a strong emphasis on the importance of collaboration among financial institutions, social media platforms, and telecommunications companies to effectively combat fraud.
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GenAI and Fraud: While Generative AI holds promise for various financial applications, its current utility in anti-fraud efforts is limited. Criminals have been quicker to adopt tools like FraudGPT.
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Fraud Liability: Defining clear fraud liability remains complex, particularly in determining whether customers have deliberately authorized transactions.
Future of Payments: The discussions at EBA Day highlighted the necessity of creating digitally safe, real-time, data-rich payment journeys that mitigate fraud. The adoption of instant payments, particularly in regions like India, is expected to lead global advancements. Initiatives like Request to Pay and instant reporting were showcased as pivotal in linking transactions to invoices and ensuring regulatory compliance.
Global Trends: The Federal Reserve's rapid growth in instant payments partnerships, from 35 to over 800 in 11 months, was noted as a significant achievement. However, regions like Australia show slower adoption rates, highlighting varying levels of progress worldwide.
ISO 20022 and Data Utilization: The importance of standardizing ISO 20022 for reducing friction in payment processes was emphasized. The rich data available through this standard is seen as crucial for improving real-time payments and combating fraud.
Conclusion
EBA Day 2024 underscored the critical need for collaboration, innovation, and regulatory compliance in advancing the future of payments. The insights and connections gained at the event are expected to drive significant advancements in the industry.
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