Latest news with #PSD3
Business Wire
5 days ago
- Business
- Business Wire
Prove Launches Unified Authentication Solution with Passive, Persistent Customer Recognition
NEW YORK--(BUSINESS WIRE)-- Prove, the leader in digital identity, today announced the launch of Unified Authentication SM, a modern authentication solution that passively and persistently recognizes customers, no matter where they appear or how often their devices or credentials change. This launch reflects a critical market shift: identity is no longer just a tool for fraud prevention or compliance – it's a core enabler of digital commerce. Businesses must seamlessly recognize and authenticate customers across mobile apps, desktops, laptops, call centers, kiosks, and third-party platforms. But as companies move away from SMS OTPs and other legacy tools, they face new challenges. While device fingerprinting, behavioral biometrics, and passkeys each add value, none single handedly solve the challenge of reliably identifying returning users throughout their lifecycle. Device fingerprints are probabilistic, biometrics can drift, and while passkeys sync for convenience, they no longer prove possession of a specific device on their own. As a result, many organizations revert to outdated methods that compromise both security and experience. Prove's Unified Authentication solution solves these challenges by harnessing the strengths of these technologies – and addressing their limitations – through a layered, orchestrated approach. At its core is the Prove Key SM, a next-generation cryptographic key that is persistently bound to a user's identity and secured directly on the device. Paired with real-time signal intelligence and advanced key management, the Prove Key delivers continuous, cross-channel authentication that endures through every lifecycle event. Key capabilities: Compliant MFA: Combines device fingerprinting, behavioral biometrics, and passkeys while addressing their limitations, delivering passive MFA with two strong factors and dynamic linking to support PSD2 and PSD3 compliance. Passive Key Management: A passive, identity-bound cryptographic credential that enables seamless reauthentication without re-enrollment, even when new keys are issued after device changes or number updates. Omnichannel Coverage: Operates across apps, browsers, desktops, kiosks, call centers, and third-party platforms to support portable 'passport-like' digital experiences. Resilient to Change: Maintains identity persistence through lifecycle events like device upgrades, SIM swaps, carrier ports, and phone number changes. Real-Time Risk Defense: Provides real-time protection against synthetic identities, stolen credentials, scams, mules, and social engineering. The result: less fraud, reduced costs, reduced abandonment, and measurable ROI through improved customer experience and long-term loyalty. 'Key-centric authentication is a valuable tool for fraud prevention,' said John Snyder, Senior Manager, Product at BetMGM. 'It's a great way to scale up fraud control without sacrificing user experience, making things easy for good users and hard for bad ones.' 'At Prove, we've always believed identity is the gateway to a new generation of digital experiences,' said Rich Rezek, Head of Platform and Solution Strategy at Prove. 'With Unified Authentication, we're bringing that vision to life – synchronizing identity and authentication in a more sophisticated way than ever before to eliminate friction, build trust, and protect every step of the customer journey, from onboarding to recovery and beyond.' Unified Authentication is now available in over 190 countries, delivering persistent recognition across onboarding, servicing, authentication, and payments – enabling businesses to engage customers securely, seamlessly, and at scale. To learn more, visit: . About Prove Prove makes identity work – verifying real people in real time without friction or guesswork. Trusted by 19 of the top 20 U.S. banks and more than 1,500 leading brands worldwide, Prove helps the biggest names in banking, fintech, crypto, gaming, commerce, insurance, and healthcare grow with confidence. Prove's identity verification and authentication solutions streamline onboarding, prevent fraud, and deliver seamless customer experiences across channels. With Prove, identity is no longer a question, it's proven. Learn more at
Business Wire
16-07-2025
- Business
- Business Wire
FICO European Fraud Map: UK Leads in 'Card Not Present' Fraud and Total Losses
LONDON--(BUSINESS WIRE)--The FICO European Fraud Map 2024 has revealed a worrying trend of rising card fraud levels and losses across the continent. The data from Euromonitor International on 18 countries shows that Card Not Present (CNP) fraud dominates card fraud losses and has increased across most countries. E-commerce fraud, e-wallet, social engineering and QR code fraud or 'quishing' are all rising as well. 'While card fraud loss figures are still lower than the 2015 peak of €1,642 million, the last few years show that fraud in Europe is steadily rising back up towards this figure.' - James Roche, FICO Share Highlights Card fraud losses across EMEA have increased from €1,493m in 2021 to €1,578m in 2024 UK card fraud increased by 4% to £572.6 million since 2023 CNP fraud accounts for around 70% of total card fraud losses in the UK – increasing by 11% year on year Hungary saw the greatest increase across Europe at 22% — card fraud losses also dramatically increased in Norway, Denmark and Hungary Portugal and the Netherlands are the only countries to see fraud levels fall 'While card fraud loss figures are still lower than the 2015 peak of €1,642 million, the last few years show that fraud in Europe is steadily rising back up towards this figure,' commented James Roche, principal fraud consultant for FICO in EMEA. 'The UK has followed a similar trajectory to the rest of Europe, aligning with what FICO has seen in terms of the dominant fraud MOs that plague both the UK and Europe, as well as the common approaches taken in the last decade via initiatives such as PSD and PSR.' Card Losses Grow in UK In 2024, UK Finance reported £572.6 million in total card fraud losses, a 3.9% increase from £551.3 million in 2023. This goes against the trend of the past few years of falling card losses and a broader trend of stabilisation in the UK payments landscape, which is a cause for concern. Card Not Present (CNP) fraud remained the leading fraud category, accounting for around 70% of total card fraud losses. This marks an increase of 11% from 2023 and puts the UK at the top of the league table for CNP fraud losses in Europe, underscoring the persistent risk associated with remote transactions. Conversely, identity (ID) fraud losses dropped significantly by 26% to £58.7M, pointing to a shift in criminal behaviour away from ID theft and towards social engineering, data compromises and scams. The growing use of fraud enhancements such as biometric and behavioural monitoring tools are also likely to have contributed to the decrease. Plus, continued investment by UK and EU financial services in full customer journey visibility and data sharing is enabling identity characteristics to be monitored from onboarding through early book and ongoing lifecycle stages of the customer journey. 'The UK has long been a leader in deploying innovative fraud technology, and clearly the challenges are still growing,' Roche said. 'With PSD3 regulations now taking effect across Europe, we see fraud prevention teams moving towards a unified approach to fraud risk assessment. Continued investment in preventative tools, such as Scam Signal, and intelligence-led fraud detection remain critical to protecting card portfolios from evolving threats.' The Picture across Europe Other highlights from the FICO European Fraud Map show the impact card fraud is having across the region: In Norway fraud losses have dramatically increased over the last few years from €14M in 2021 to €26.4M, rising 8% in 2024. Denmark demonstrated a more than twofold increase in fraud losses (€19.6M to €47.6M) since 2021, and a concerning 20% rise in 2024 alone. In Hungary, fraud losses jumped from €3.3M to €22.4M from 2021 to 2024, rising by 22% in 2024. Greece has also seen a significant increase, with a twofold increase from €13.4M to €28.4M since 2021 and 20% in 2024. Sweden's losses have risen significantly from €13.1M to €24.2M, an increase of around 85% in three years, and 19% during 2024. Despite the overall EMEA loss picture trending slowly upwards, a few countries are seeing a downward trend in their card fraud losses: France's losses are slowly but steadily decreasing and have done so consistently since their peak at €433.2M in 2018. They now sit at €409.2M, the second highest losses of the 18 countries studied but setting a good example for controlling their losses. Turkey showed significantly lower losses at €1.1M for 2024, but they too are reducing their fraud losses consistently and have done since their peak at €14M in 2010. However, 2024 saw fraud rise by 5% in Turkey. 'With PSD3 regulations due to take effect across Europe in the next couple of years, financial institutions must work harder than ever to fight new fraud patterns and improve customer service,' said Roche. 'We are seeing a number of emerging approaches that unify protection that is currently siloed, using 360-degree customer profiling to assess fraud and financial crime risk across all channels and products and throughout the entire lifecycle of the customer (onboarding through to offboarding). We at FICO believe this approach is absolutely critical, as criminals look for the weakest link in fraud defences.' FICO's fraud solutions portfolio includes the AI-powered FICO ® Falcon ® Fraud Manager, which protects more than 4 billion cards worldwide; FICO ® Omni-Channel Communications for Fraud, available on FICO® Platform; and award-winning models for scam detection, as well as the award-winning Scam Signal product developed with Jersey Telecom. About FICO FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at FICO and Falcon are registered trademarks of Fair Isaac Corporation in the United States and other countries.
Business Wire
16-06-2025
- Business
- Business Wire
Winston & Strawn Bolsters London Office with Addition of Financial Regulation Partner Yulia Makarova
LONDON--(BUSINESS WIRE)--Winston & Strawn announced today that Yulia Makarova has joined the firm's London office as a partner in the Financial Innovation & Regulation practice. Yulia's arrival marks a significant enhancement to the firm's capabilities in counselling clients navigating complex financial regulatory matters across the UK, EU, and globally. Yulia brings extensive experience advising innovative businesses operating in the distributed ledger, blockchain, and digital assets sectors, with a particular focus on the domestic and cross-border application of financial services regulation. Yulia's practice spans regulatory licensing in the UK and EU, regulatory change for emerging technologies, and engagement with regulatory sandboxes. She regularly counsels clients on MiCA, MiFID II, PSD2/PSD3, and the Electronic Money Regulations, as well as advising on UK and EU regulatory perimeter and authorisation matters. 'We are in the midst of a transformative period in the regulation of digital assets across the UK and Europe,' said Yulia. 'Winston has established itself as a leading firm in this space, and I am excited to join a team known for delivering sophisticated, forward-looking solutions to clients operating at the forefront of financial innovation.' In addition to her work in digital assets, Yulia advises a broad spectrum of financial institutions on strategic regulatory matters, including FCA authorisations and variation of permissions, regulatory approvals in M&A transactions, venture capital and private equity investments, and fund-related regulatory matters. 'As we continue to grow the London office, Yulia's deep regulatory experience is a vital addition to our client offerings in Europe and abroad. Her arrival further reinforces our commitment to providing clients with seamless cross-border regulatory support,' said Nicholas Usher, London office managing partner. 'Yulia's cutting-edge experience will create substantial value for our global client base, who are increasingly looking for cross-border, global experience,' said International Managing Partner, Peter Crowther. Winston & Strawn LLP is an international law firm with 14 offices in North America, South America, and Europe. More information about the firm is available at
Finextra
04-06-2025
- Business
- Finextra
What happens when money thinks for itself?
0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. This is an excerpt from The Future of European Fintech 2025: A Money20/20 Special Edition. The evolution of financial technology is characterised by increasing levels of simplicity, efficiency, and integration. We saw this in 2016, when Europe's second Payment Services Directive (PSD2) encouraged financial institutions to open up their data and infrastructures – paving the way for banking-as-a-service and embedded finance. Fast-forward to 2025, and preparations are already being made for PSD3 – and even deeper levels of functionality and harmonisation. But the technology's development is hardly linear, and every so often innovations land that spark a deep and wide cross-industry revolution. Few would argue that artificial intelligence (AI) lacks this potential, particularly in the world of financial services and product personalisation. So, what might the dawn of AI mean for stakeholders? What happens when money thinks for itself? Enter the stage: Embedded intelligence. Standard Chartered's Vibhor Narang, executive director of structured solutions cash management, transaction banking, Europe said in an interview with Finextra: 'AI and big data are redefining the landscape of financial services, propelling the industry toward an era of hyper-personalisation and smarter client engagement. At Standard Chartered, we see AI as the engine driving a shift from generic offerings to deeply tailored financial experiences – leveraging advanced data analytics to anticipate client needs, delivering bespoke advice, and streamlining every touchpoint.' Indeed, industry data shows that AI-powered personalisation can reduce operational costs and boost customer retention considerably, underscoring its transformative impact on both efficiency and loyalty. 'Our commitment is to harness these technologies,' Narang added, 'not just for incremental improvements, but to reimagine how we build trust and relevance with every client interaction.' This level of transformation, however, will not come without challenges. The complexity and opacity of advanced AI models – along with the volume of data involved – creates heightened concerns around privacy, explainability, and bias, Narang argued. 'We believe responsible innovation is non-negotiable: robust data governance, transparency, and ethical AI frameworks must be embedded at every stage,' he said. 'As financial institutions, our true competitive edge will be measured not just by how smart our algorithms are, but by how deeply we earn and sustain client trust in a digital world.' So, by balancing cutting-edge innovation with unwavering stewardship of data and privacy, Standard Chartered is hoping to set a robust standard for the future of personalised finance. Conor McNamara, EMEA CRO at Stripe, emphasised the need for balance of personalisation and security, stating that businesses need to manage the complexity of checkouts carefully, 'to strike the optimal balance between fraud prevention and conversion; doing it poorly introduces needless friction, and causes legitimate sales to be blocked or abandoned.' A spokesperson from NatWest was in alignment on the utility of AI for personalisation, as well as the surrounding data and ethical issues: 'AI is undoubtedly a key enabler of our ambitions and is quietly reinventing how we operate – freeing up our colleagues and helping them to provide the service our customers expect. As we increasingly use AI to support personalised interactions, such as with our AI-powered chatbot Cora, which provides everyday banking support, we are seeing real improvements in customer satisfaction and colleagues' productivity. At the same time, we are taking a considered and measured approach to make sure any AI usage is managed responsibly. 'That's why we've developed a set of ethical AI and data principles to ensure our systems are subject to human oversight, technically robust, free from unfair bias or discrimination. Privacy is a critical focus, particularly in light of [the European Union's General Data Protection Regulation (GDPR)] regulation, and our robust code of conduct ensures we evolve with new regulations while maintaining trust and transparency.' BNY Mellon's Carl Slabicki, executive platform owner, treasury services, added that for treasury clients, AI and big data can help deliver personalised cash management strategies, predictive analytics for liquidity forecasting, and customised risk management solutions. However, Slabicki stressed that achieving this requires 'careful consideration of key challenges, including data privacy and security, regulatory compliance (such as GDPR), and maintaining consumer trust through transparent and ethical AI practices.' It would seem that striking the balance between innovation and these critical factors will be essential for the widespread adoption of AI-driven treasury services across the market, in the short to mid-term. Ahmed Badr, chief operating officer, GoCardless, said that 'the combination of large language models (LLMs) and machine learning (ML) means that it's now possible to deliver personalisation at scale. ML is stronger when it comes to mining structured data for the deep insights that are needed for truly personalised offerings, and AI provides the automation and efficiency to help organisations manage a myriad of personalised offerings.' Used in the right way, these technologies can be a powerful combination, though Badr also acknowledged the need for institutions to tread carefully: 'The 'watch-out' is knowing where to draw the line when it comes to using personal or identifiable data which would rightly be viewed suspiciously by customers. Financial organisations have access to vast amounts of data which can be anonymised and used to power personalisation models, without breaching confidentiality and trust. This approach allows for highly personalised interactions with AI agents that can respond in natural language, giving customers greater control and a more intuitive, tailored experience.' McNamara highlighted the potential of agentic AI to proactively act on behalf of the user in ecommerce spaces, something that Stripe is currently developing: 'Our new AI Agent SDK and Order Intents API enable AI agents to independently perform actions like purchasing products and finalising transactions based on natural language instructions from users, with security measures comparable to traditional mobile payments. Imagine instructing a digital assistant to secure travel insurance, instantly receiving optimal policy options, directly completing the payment, and immediately receiving documentation—all without manual intervention.' The arena of payments was underlined by Magnetiq Bank's Julija Fescenko, head of marketing and communication, as a key area for the AI's use case within financial services: 'Predictive analytics and AI are poised to revolutionise the future of payments, significantly enhancing fraud detection, personalising user experiences, and improving risk scoring. This development will make solutions like Buy Now Pay Later (BNPL) more accessible and secure for both businesses and consumers. 'The integration of AI and big data will transform how financial services are tailored to individual needs,' Fescenko continued. 'Imagine hyper-personalised credit scoring, customised financial advice, and real-time product recommendations that anticipate customer needs even before they are expressed. While this level of personalisation is promising, it brings forth essential considerations around privacy. Our challenge is to design systems that embrace innovative personalisation while upholding privacy-by-design principles and ensuring full GDPR compliance.' Transparency, data minimisation, and user control will be vital in maintaining a harmonious balance between pioneering advancements and consumer trust, concluded Fescenko. Tom Moore, head of financial services at Moore Kingston Smith, underlined that smarter data will be pivotal. He pointed to three ways firms can use data more wisely: 1. For tailored product recommendations and customer experience improvements; 2. To gain a competitive advantage by analysing and predicting customer behaviour; and 3. To improve fraud detection and risk management. If firms can achieve this, Moore argued, they will be 'better able to innovate and stand out in a crowded sector.' However, he caveated that using AI can be expensive and not everyone will have the resources and talent to implement it. Perhaps an even bigger challenge is 'balancing innovation with the essential privacy and compliance requirements,' Moore continued. 'Legislation needs to be understood – balancing the risks and ethical issues that are inherent in AI's [commercial use]. It's not always cheap to build AI into a business or to provide the right resources and talent to implement it. The sheer amount of personal data that needs to be managed and then scaled will pose a big challenge.' As we have seen in the UK recently, holding a large amount of sensitive or personal information can make financial services players a prime target for cybercrimes. According to one Telegraph article, 65% of financial services firms were hit with ransomware attacks in 2024. This was up from 34% in 2021 and marked the third successive annual rise. Clearly, this is an issue that is not going away. 'So much to do with financial services, including the decisions customers make, hinges on trust,' Moore concluded. 'Boards have got to actively commit to using smart data to transform their businesses – and be transparent about how they use it.' The application of AI: Ensuring access and affordability A debate around the ethics of AI's roll-out would be incomplete without touching on the underserved and unbanked. With fintech services becoming increasingly AI-driven, what steps can be taken to ensure individuals in emerging markets also benefit from easy and affordable access? BNY's Slabicki told Finextra that 'by providing innovative solutions to our clients, we believe we can play a significant role in bridging the gap between governments and corporates, and the underbanked communities with whom they need to transact.' Slabicki highlighted BNY's alliance with MoCaFi, which aims to provide equitable financial services to unbanked and underbanked communities across the United States: 'Our alliance offers digital disbursement services, including prepaid and reloadable debit cards, accessible through a mobile app. These services provide secure and seamless access to funds, financial literacy tools, and Federal Deposit Insurance Corporation (FDIC)-insured accounts. By leveraging MoCaFi's expertise in benefit disbursement and program management, the alliance helps distribute payments efficiently, empowering individuals with limited access to traditional banking services.' Magnetiq Bank's Fescenko echoed the importance of making AI-driven fintech accessible and affordable for underserved communities: 'We envision creating inclusive algorithms that actively work to eliminate bias, while also developing mobile-first and low-data solutions specifically designed for users in emerging markets. By collaborating with local fintech companies and non-governmental organisations (NGOs), we can effectively bridge the digital divide.' Fescenko added that integrating financial literacy programmes, maintaining transparent fee structures, and offering multi-lingual support should help ensure that innovation 'uplifts rather than exacerbates inequality.' How is AI making wealth accessible? McNamara stated that Stripe has turned to stablecoin as an opportunity to expand global access to financial markets, explaining: 'Migrants use stablecoins instead of traditional financial services to avoid high fees and delays. Turkish Grand Bazaar merchants prefer them for supplier payments due to speed. In inflation-prone countries with dollar shortages, many adopt stablecoins as savings vehicles. This matters tremendously when approximately 1.3 billion people live in countries with average inflation rates exceeding 10%. Connecting a large part of the world's population to a faster and cheaper payment method directly benefits emerging markets.' In alignment with stablecoin's potential, Stripe has acquired Bridge, a platform for businesses that want to build with stablecoins, that works with fintech companies that facilitate payments in Latin America such as DolarApp and Airtm. McNamara added: 'Throughout history, improvements in how money moves have expanded economic opportunity. From coins to banknotes, from gold to fiat currency, and from paper to digital payments - each transition has made commerce more efficient and inclusive. It is from this vantage point that we see promise in stablecoins.' On the topic of inclusivity, NatWest confirmed that it is prioritising bank-wide simplification to become more efficient and effective, making it easier for its customers to do business with them: 'A key part of this is supporting more inclusive innovation. For example, we have made a minority investment in Serene, an early-stage AI platform dedicated to tackling financial vulnerability. Through real-time customer insights driven by AI and behavioural science, Serene helps identify early signs of financial distress and predicts risks to help institutions deliver personalised support at scale. This builds on our long-term commitment to improving access to affordable credit and financial resilience to vulnerable groups.' 'What I've found with clients,' Moore added, 'is that these innovations help unlock financial tools that were once out of reach for many. For example, robo advisers are making wealth management more accessible and affordable, which allows a wider audience to access high-quality financial advice without the cost. With the trend for global expansion, fintech firms can strategically target growth markets in Asia, Africa, and Latin America, where digital financial services are even more in demand. From what we've seen, the convergence of this global outreach with AI-driven affordability points towards an industry movement to better serve these underserved populations.' The question of whether AI, big data, and embedded thinking, can transform the financial services sector has been answered: it already is. Equally easy to answer is the question of how AI should be applied – and how individuals can best be protected. Putting these values into practice, however, may take some work.
Finextra
14-05-2025
- Business
- Finextra
An Open Letter to Incumbent Banks: By Igor Kostyuchenok
Dear European Incumbents, this an open letter to you from a founder of a FinTech startup. You've been watching the Neobanks like Revolut and N26 acquiring customers in your jurisdiction at a relatively high rate but you weren't worried since most of your customers stayed with you. You have the reputation, you're too big to fail and even you will the government will bail you out, right. We've seen this story multiple times with Monte dei Paschi di Siena, Banca Popolare di Vicenza and Veneto Banca in Italy and Hypo Real Estate Holding, IKB Deutsche Industriebank, WestLB, HSH Nordbank and Commerzbank in Germany. Other European countries have been there as well. You prefer to close your eyes and pretend that nothing is happening. So far in continental Europe Neobanks have been acquiring expats as their customers. Expats are experiencing problems with opening a bank account with your incumbent bank so they retreat to a Neobank that welcomes them with open arms. This was only the start though. More and more customers are toying with an idea to move their deposits to a Neobank. Neobanks have more to offer, more savings and investment products, more travel products, even a mobile plan. What does your incumbent bank have to offer? No new products have been introduced lately. You are trying to defend the status quo. You don't want to build new stuff - it's too expensive and too risky. You only want to do the absolute minimum to comply with Open Banking (PSD2, PSD3) and other initiative like FiDA. What you rather do is to lobby your way out of the innovation. You use the regulator to remove the competition rather than enter the battle for the customer. With growing deposits and larger investments Neobanks are finally becoming a real threat to you. The last hurdle - offering credits and mortgages - has almost fallen. Soon the Neobanks will offer them as well and then most customers will start leaving your safe harbor of technological stagnation. If you won't handle now, you will lose most of the customers. You still have time and financial resources. Start using them to prepare your bank for the future - it's almost here and you're in danger not to experience it. Yours sincerely, FinTech Founder
