Unveiling Confirmation of Payee- Revolutionising Payments: The CoP Advantage for PSPs
This guide provides a strategic roadmap for financial institutions aiming to enhance payment security through Confirmation of Payee (CoP) implementation. Highlighting its pivotal role in combatting APP fraud, the guide outlines key steps: building a business case, engaging crucial bank teams, and deciding on a build versus buy strategy. It advocates an API-first approach for seamless integration, emphasizes data integrity through cleansing, and underscores the importance of clear communication channels and proactive customer education.
Transforming Reimbursement Policies for Authorised Push Payment Scams: Current Landscape and Future Strategies
The landscape of reimbursement policies for authorised push payment (APP) scams is undergoing a transformative shift following recent legislative changes in the UK. The Financial Services and Markets Bill, granted Royal Assent in June 2023, empowers the Payment Systems Regulator (PSR) to implement an innovative 50:50 cost-sharing model between banks involved in sending and receiving funds for APP scams. This article reviews the current Contingent Reimbursement Model (CRM) Code, outlines upcoming changes, and provides strategic guidance for banks preparing for this shift.
Unveiling Confirmation of Payee- Decoding CoP Models: A Comparative Analysis of Direct and Aggregator Models
The blog discusses the critical role of Confirmation of Payee (CoP) in ensuring payment security and explores two integration models, Direct and Aggregator. The Direct Model involves meticulous onboarding and maintenance, requiring multiple contracts and connections. Despite its current complexity, Direct Model is evolving towards a more streamlined process, allowing PSPs to connect directly with others. In contrast, Aggregator Model, introduced for scalability and speed, simplifies the CoP ecosystem by allowing Technical Service Providers (TSPs) to join and streamline the connections. However, it operates exclusively on the new Pay.UK directory, posing challenges for PSPs relying on the existing OBIE directory.
Unveiling Confirmation of Payee- Inside CoP Modules: Exploring the Responder and Requester Module
The article delves into the Confirmation of Payee (CoP) system, a security feature preventing misdirected payments and fraud. It introduces the foundational concept of CoP and emphasizes its role in enhancing financial system trust. Focusing on the Requester Module, it outlines its functions, integration versatility, and user experience benefits. The module initiates CoP requests, handles various transaction types, and facilitates efficient responses, aiding in fraud prevention. The Responder Module is then explored, highlighting its role in managing inbound CoP requests, meticulous data matching, customization, response generation, and collaboration with TechnoXander for informed decision-making.
Reporting APP Scams Types- Strategies and Procedures
In the unfortunate event of an authorised push payment (APP) scam, swift action is imperative. This article offers guidance on reporting APP scams, emphasising immediate contact with the respective bank for intervention. Strategies and procedures for victims are outlined, urging prompt reporting, even if the bank is not a Contingent Reimbursement Model (CRM) Code signatory. For banks adapting to the changing reimbursement landscape, the article provides strategic guidance, including bolstering data analysis, optimising data utilisation, focusing on transaction intent, investing in customer education, and establishing a comprehensive feedback loop.
What is APP Fraud? And what are the types of APP Fraud?
Authorised Push Payment (APP) fraud, a pervasive financial threat in the UK, has inflicted a staggering £240 million in losses during the first half of the current year. This sophisticated scam involves manipulating individuals and businesses into making voluntary payments under false pretences. In this comprehensive blog, we explore the intricacies of APP fraud, detailing various types such as impersonation scams, purchase scams, romance scams, investment scams, loan fee scams, and bank transfer scams. Recent data from UK Finance highlights online channels as the source for 77% of APP fraud cases, while cold calling contributes significantly to losses.
Unveiling Confirmation of Payee- Navigating Changes in Confirmation of Payee: A Strategic Overview
In the evolving financial technology landscape, significant changes are occurring in Confirmation of Payee (CoP) services, shifting from the Open Banking system to a new directory by Pay.UK. This transition, aimed at enhancing CoP and overlay services, poses challenges and strategic considerations. Pay.UK's decision to create a new directory simplifies the complex three-agreement structure for Payment Service Providers (PSPs), streamlining contracts to Pay.UK only. The new Pay.UK directory, operational in Spring 2024, mandates PSPs to transition from the Open Banking Directory by a specified date. Financial Organisations are advised to assess business benefits, potential risks, and change management strategies.
Navigating the Evolving Landscape : The Data Protection and Digital Information Bill 2023-24
The Data Protection and Digital Information Bill 2023-24 represents a transformative shift in the evolving legislative landscape governing data protection. Introduced in the House of Commons, the bill aims to create a comprehensive and adaptive regulatory framework for the digital era. It builds on the 2022-23 session's Data Protection and Digital Information (No. 2) Bill, receiving Royal Assent in June 2023. As organisations prepare for the paradigm shift, proactive strategies and compliance measures become crucial. The bill signifies a forward-looking approach, fostering transparency, protecting individual rights, and fortifying digital landscapes for a resilient and secure future.
Unravelling SD20 : Insights for Faster Payments
Specific Direction 20 (SD20), introduced by the Payment Systems Regulator (PSR) in December 2023, outlines a reimbursement mandate for victims of Authorised Push Payment (APP) scams in the Faster Payments Scheme. This directive, effective from October 7, 2024, necessitates full reimbursement from all Payment Service Providers (PSPs). While SD20 aligns with the broader goal of combating financial fraud, challenges arise, particularly for Electronic Money Institutions (EMIs) and smaller PSPs. Proactive risk mitigation, robust fraud prevention measures, and strategic planning are imperative for industry players to navigate the regulatory landscape, fortify resilience, and ensure compliance with SD20.
Empowering Futures: CFIT Open Finance Coalition’s Vision for Financial Transformation
The Centre for Finance, Innovation, and Technology's (CFIT) Open Finance Coalition envisions a transformative financial landscape beyond Open Banking. The initiative aims to empower individuals and SMEs by providing a holistic view of financial ecosystems. Anticipating a 1.5% GDP surge in the UK by 2030, Open Finance is positioned as an economic growth catalyst with an estimated annual benefit of £27.8 billion through personal data sharing. For SMEs, the focus is on overcoming credit access challenges and improving cash flow management. The coalition identifies over 30 datasets crucial for financial transformation, emphasising the data revolution's significance.