During PAY360, the dedicated payments-focused event, its organisers, The Payments Association conducted a survey of its attendees to understand the fraud landscape and what organisations are most fearful of.

The Payments Association asked three questions to those leaving the event, about their views on fraud. The aim of the survey was to help firms in the space understand where resources should be allocated to protect their data and consumer funds.

The three biggest fraud types identified by attendees were APP fraud, identity fraud and AI-enabled fraud.

Thirty-nine per cent of respondents said that in 2024, someone being tricked into buying goods that don’t exist or send a bank transfer to a fraudster impersonating someone else, otherwise known as APP fraud, would be the biggest cause for concern. More complex and financially damaging types of APP fraud include romance scams.

Other concerns

Following this, 18 per cent identified identity fraud and 23 per cent of respondents said AI-enabled fraud as the main threats that needed resources. While both share some similarities with APP fraud, AI is increasingly being used as a force-maximiser by fraudsters, who can use Large Language Models to communicate with their targets in a broadly realistic way. Identity fraud can be used to make a scam seem more realistic by hijacking the established identity of a real person.

Tony Craddock, director general of The Payments Association, commented: “The survey results show that our focus on APP fraud as a major vector of losses for both business and the general public was correct. Around £240million was lost to APP fraud in the first six months of 2023, and this figure is likely to increase, at least in the short term as payments companies struggle to adapt to new forms of fraud.

“We expect these adaptations to include enforcing pauses on payments from time to time, to validate a transaction when the payment is out of the ordinary, so consumers will no longer be able to expect faster payments to be fast.”

Finding a solution

To turn the tide, more than half of respondents (57 per cent) said that the next game-changer in the fraud prevention space will be AI. This is already used extensively throughout anti-fraud operations, but is continually becoming more powerful and precise.

While AI can be seen as a threat, according to 57 per cent of respondents, it can also be the game changer that can protect users from fraudsters. In fact, the technology is already used extensively throughout anti-fraud operations and is continually becoming more powerful and precise.

Lastly, when asked how their company stays updated on emerging fraud trends and threats, 43 per cent said that collaboration with other financial institutions, and 21 per cent said industry reports were key. This highlights the importance of intelligence sharing and staying connected to work together as an industry.

How to optimise AI

Riccardo Tordera, head of policy and government relations for the Payments Association added: “We’re watching the development of AI in this space very closely. We have known for years that machine learning is the only thing with the sophistication and the capacity to tackle increasing volumes of fraud, but it’s not a simple case of installing an AI solution and watching it clean up fraud on your system.

“It needs careful monitoring and optimisation to be truly effective, and this can be enabled by working together to share best practices.

“We fully expect the technology to be part of upcoming, future-forward regulations like PSD3, and we’re working with the industry to better help them separate genuine solutions from the hype.”

While digital banks continue to sit at the forefront of innovation and agility in the banking world, traditional banks continue to dominate regarding the number of customers they serve. However, a shift away from legacy banks may be well underway, according to a new study by App Radar and SplitMetrics.

In a new study of Google Play Store downloads, App Radar has revealed that digital banking apps have made the biggest user gains in 2023. Tandem Bank, the green UK-based digital bank, saw new app downloads increase by 110 per cent in 2023, compared to 2022.

Revolut (46 per cent), First Direct (41 per cent), L’Appli SG (39 per cent), Santander Spain (23 per cent) and Monzo (20 per cent) followed.

Overall in 2023, Revolut increased its user base the most with 13 million accounting for 38 per cent of new banking app downloads; followed by Monzo with 1.8 million, Santander Spain with 1.7 million, Credit Agricole with 1.6 million, Lloyds Bank with 1.3 million.

In a separate study of Apple Search Ads by SplitMetrics, acquiring new users in the finance category is the most expensive out of all app categories with a Cost per Acquisition (CPA) of $8.57. This marks a 71 per cent difference in the average cost for a finance app to acquire a new install in the app store when compared to the second most expensive category, news, which has a CPA of $4.01.

Similarly, finance is heading the Apple Search Ads Cost per Tap (CPT) category with a CPT of $4.77 – a 65 per cent difference from the second most expensive category (sports) on the list.

Revolut claims the download crown as digital banks close the gap

Overall, app downloads for Android banking apps have increased by 13 per cent in 2023, when compared to 2022. UK legacy bank NatWest experienced the biggest growth with 18 per cent more downloads in 2023, while other UK legacy banks saw less: Lloyds (12 per cent), Royal Bank of Scotland (six per cent), Halifax (six per cent) and HSBC (five per cent).

The most popular apps in terms of estimated lifetime downloads (as of 31 December 2023) are Revolut with 38 million followed by Credit Agricole with 15 million, Barclays with 12 million, Santander Spain with 12 million and Intesa Sanpaolo with 11 million.

Thomas Kriebernegg, general manager at SplitMetrics Agency, commented: “This is fantastic news for the banking and finance app category. The sector is growing with 13 per cent more downloads on Android devices in 2023. Fintech and neobanks are continuing to close the gap with legacy banks, which is not surprising as it is a trend we have been seeing for the past four or so years.

“Revolut is the kingmaker of the apps when it comes to acquiring Android downloads. If they continue in this direction and get even more downloads in 2024, this may be what pivots neobanks away from legacy banks. Growth comes at a cost though, as our Apple Search Ads study has shown. With such a high CPA of $8, it could mean that it will be a very expensive challenge for neobanks as the sector tries to sustain its growth.”

Form3, the cloud-native account-to-account platform, has launched a new authorised push payment fraud (APP fraud) prevention solution, powered by Feedzai, the anti-fraud and financial crime software provider.

The new product from Form3 and Feedzai is built using fully supervised machine learning, leveraging collaborative intelligence to understand the behaviour of both the payment sender and recipient, to determine the risk of the payment being made in real-time.

Form3’s new APP Fraud solution combines its account-to-account payment processing with Feedzai’s fraud and financial crime analytics, to create a model that identifies risk in both the individual sending the money and the person receiving the money. Understanding who is receiving the money is key to preventing fraud, as APP fraud involves impersonation that manipulates the victim into sending the money.

This new solution closes the gaps in intelligence that the fraudsters utilise to be able to use faster payments to target UK consumers and businesses. The solution’s model is then able to detect 95 per cent of fraud at market-standard false positive rates.

Mike Walters, CEO of Form3, commented: “The best way to tackle the rise of APP fraud is the use of collaborative intelligence and cutting-edge technologies that allow the real-time identification of scams within the payment message.

“By bringing together Form3’s payment processing expertise, and Feedzai’s fraud and financial crime solutions, we can tackle APP fraud so that UK banks can make faster payments safer. Feedzai is the solution provider of choice for two of the top four financial institutions in the UK, so we are partnering with a market leader to combat APP fraud.”

A £500million problem

Recognising that APP fraud losses account for nearly £500million per year, Form3 developed this new solution on the back of new regulation from the Payment Systems Regulator. This sees APP fraud victims given refunds by their bank from October 2024, with reimbursement now the responsibility of both the sending and the receiving institutions.

Pedro Barata, CPO at Feedzai, also added: “There is increasing regulation in this space, and rightly so – we’ve got to do everything in our power to protect the end consumer from APP fraud. With reimbursement becoming mandatory from October this year, it’s also in the interests of all banks to collectively ensure they prevent fraud and save huge payouts.

“By combining the expertise of Feedzai and Form3, we can drastically reduce the level of vulnerability in the payment process and give our customers the real-time intelligence that they need to stop fraudsters in their tracks.”

The partnership underscores Form3’s commitment to ‘doing well by doing good’, by employing technology to tackle the pervasive issue of fraud, which has profoundly impacted countless individuals worldwide.

The service will go live in April, with a full rollout in the UK market expected in the summer of 2024 – ahead of the implementation of the new rules in October 2024.

Instant Financial, a responsible earned wage access (EWA), electronic tips, and paycard solution provider, has released its new mobile app and enhanced mobile wallet functionality, providing employees with a faster, more secure app experience, and offering more flexibility in how they receive their pay.

Understanding that over 50 per cent of Americans would likely avoid major financial pitfalls if they could instantly access a portion of their pay after every day’s work, the new Instant mobile app is narrowing this financial gap by placing financial empowerment directly into the hands of employees.

The beta version of Instant’s app debuted in October at the 2023 HR Tech Conference & Expo, where event attendees were provided a sneak preview of the app’s new capabilities and functionality.

Tal Clark, CEO of Instant Financial, commented on the launch: “Employee demands regarding how they access their wages are constantly shifting, and our new app is meeting that head-on. Whether it’s to cover unexpected expenses, avoid predatory loans, or simply to enjoy more control over their finances, Instant is continually revolutionising the way people get paid.”

Utilising earned wage access

Designed with accessibility and financial freedom in mind, Instant’s new mobile app boasts a range of new features and functionality including:

• Faster Access to Earned Wages: Employees have access to their hard-earned wages in fewer steps, with an improved user interface (UI) and key elements surfaced more prominently within the app.
• Modern Security Features: State-of-the-art security protocols, such as facial and fingerprint biometrics, multi-factor authentication, and encryption technologies protect user information and provide peace of mind.
• Flexible Payment Options: Users have the freedom to choose how and when they access their wages. Whether it’s through direct deposit, the Instant card, or a mobile wallet, the new app offers a greater degree of flexibility for all employees, ensuring convenience for all.
• Clear and Informative Design: With improvements to the user interface (UI), the app offers a user-friendly experience, empowering users to make informed choices and navigate the app confidently.
• New Technology Framework: Underpinned by a new technology infrastructure, the new Instant app is faster, more responsive and built to allow for additional features and functionality to meet the needs of employees and how they are paid.

By releasing this enhanced version of its mobile app experience, Instant is furthering its mission of delivering pay to employees, when they want, where they want, and how they want, free of fees.

Okoora, the automated business currency management solution provider, has launched an App Marketplace for its Automated Business Currency Management (ABCM) platform; aiming to provide businesses with a secure and user-friendly environment to buy additional services that enhance the core functionality of the ABCM cloud-based platform for managing currency operations.

The new Okoora app marketplace reflects a broader trend toward the democratisation of financial services. Open banking and regulatory changes have weakened the hold major banks have had on the provisioning of what were traditionally viewed as banking services.

Okoora, a Swiss-Israeli fintech startup, has been focusing on improving the experience small and medium-sized businesses have in managing their currency operations and giving them greater control through its ABCM platform. The newly launched app marketplace is available to any Okoora customer regardless of whether they are on a free plan or have a paid subscription to the ABCM platform.

Benjamin Avraham, CEO and founder of Okoora, commented: “The app marketplace represents the next step towards Okoora’s mission of democratising financial services and empowering businesses to fine-tune their currency management experience.

“As we break away from the limitations of traditional banking, our goal is to enhance the control and efficiency that small and medium-sized enterprises have in managing their currency operations.”

Currently, several apps are available on the Okoora app marketplace. These include Free Outgoing Payments, where companies can reduce costs by sending free, regular payments; an FX Expert Package, which provides a team of experts who will walk the company through the complexities of FX management; and an FX Hedging Policy, which enables users to build a custom FX hedging policy that serves their strategic objectives and business needs.

Okoora, established in 2021 by Avraham, the founder of Ofakim Group, an Israel-based financial risk management firm, currently boasts a committed team of 100 professionals across Israel, Switzerland, Germany, and India. With sights set on further European expansion, Okoora is gearing up to expand its workforce, aiming to bolster its operational capacity and provide outstanding service to its growing clientele.

Orange Middle East & Africa is joining forces with Microsoft, looking to offer Microsoft solutions to small and medium-sized enterprises (SMEs) in 17 countries across the MEA region. Orange is also partnering with Tencent Cloud, the cloud business of tech company Tencent, to improve its super-app ‘Max it’ for businesses and populations in the region.

By collaborating with Microsoft, Orange MEA aims to address the growing needs of SMEs as they undergo digital transformation. Orange’s existing distribution network in the MEA region will now provide SMEs with easy access to the likes of Microsoft 365, Copilot, Azure, and Dynamics 365 while facilitating the upskilling of Microsoft experts within each country.

Orange and Microsoft will also collaborate on training, marketing, and sales support programmes to enable SMEs to adopt and benefit from Microsoft Modern Work solutions.

Through the collaboration, Microsoft and Orange aim to support 15,000 businesses throughout 2024, with an ambition to reach one million SMEs by providing access to technology, tools and support to accelerate adoption. The goal is to promote digital inclusion and enable all economic players in the MEA region to benefit from the advantages of digital transformation.

Jérôme Hénique, CEO of Orange MEA, explained: “This collaboration with Microsoft is a significant step in our commitment to support the digital transformation of African businesses. By combining our network and Microsoft’s solutions, we can provide SMEs with the tools and guidance they need to thrive in the digital economy.”

Energising ‘innovation and digital inclusion in Africa’

Meanwhile, Orange MEA is also planning to adopt Tencent Cloud’s mobility framework and Tencent Cloud Mini Program Platform (TCMPP) solution to create an open platform for Max it to integrate a wide range of mini-apps within its super-app.

Tencent Cloud’s technological expertise will empower Orange MEA in the field of mini-apps to enrich its Max it ecosystem and improve the customer and partner experience, while strengthening its position in the African market.

Fred Sun, general manager of Europe at Tencent Cloud, commented: “This collaboration represents a unique opportunity to energise innovation and digital inclusion in Africa, facilitating the development of use cases and services tailored to local needs while promoting African entrepreneurship. Our experience in supporting Weixin/WeChat, one of the world’s original super-apps, makes us the ideal partner for Orange. We look forward to working with the African enterprises and supporting its ecosystem through Tencent Cloud’s products and solutions in the near future.”

Hénique also emphasised the important milestone this partnership represents in the development of Max it: “This partnership with Tencent Cloud is a key step in our vision to offer innovative and high-value services to our users. Enriching Max it with innovative mini-apps is essential to strengthen the value proposition of Max it, increase the penetration of our super-app among Orange and non-Orange customers, and amplify our social impact.”

Having established a foothold in South America by partnering with Ebury to launch cross-border payments for Brazilian SMEs, Nium, the real-time payments firm, has turned its sights to the MEA region as it partners with Enjaz Banking Services, the remittance division of Bank Albilad in Saudi Arabia.

Nium will work with Enjaz Banking Services to offer free international money transfer services through the Enjaz app for smart devices. Soon, all Enjaz customers will be able to access competitive exchange rates and instant transfers via Nium’s global partner network.

Nium’s expansion in the Middle East is a testament to its commitment to improving the financial infrastructure and facilitating international commerce. The company looks forward to playing a pivotal role in the growth and development of the Middle East’s financial ecosystem.

This momentum is being supported by the appointment of three regional vice presidents, Nawal Kebouri Ammor, Ashraf Omran, and Saikat Roy, who collectively bring more than 50 years of in-depth payments and banking knowledge to Nium prospects and clients in the region. Their expertise will play a crucial role in further scaling Nium’s operations in anticipation of hypergrowth.

“We have a massive opportunity in the Middle East,” said Anupam Pahuja, EVP and general manager for Asia Pacific, Middle East and Africa at Nium. “Trillions of dollars flow through the region, and we expect even more volume as real-time payments adoption accelerates. Innovation continues across the region, opening the door for businesses like Nium to capitalise.”

Pahuja continues: “We are dedicated to helping customers in this global financial centre reach more of the world with a modern, secure, and efficient way to send and receive money. We look forward to partnering with more banks and businesses for growth.”

A customer-first focus

Assad Alawneh, chairman and founder at Alawneh Exchange commented on the partnership: “The difference between Nium and the banks is that Nium is more like our business – focused on the customer. When we were choosing who to work with, we initially explored a range of fintech businesses, but Nium won based on their size, stability, and flexibility.”

Mashreq envisioned a digital customer journey that is intuitive to interact with and seamless to process. For them, partnering with industry experts was key to this endeavour. Mashreq’s partnership with Nium contributes to their vision of a seamless customer experience.

“I am proud to acknowledge the significant impact of our partnership with Nium,” said Vilas Achuthankutty, general manager at Al Rostamani International Exchange LLC. “Their state-of-the-art real-time and faster credit capabilities have substantially enhanced our customer experience. Nium’s technology, network, and services are not only competitive but also align with market leaders.

“This collaboration between ARIE and Nium continues to appreciate in value, ensuring reliable transfers and fostering enduring relationships that transcend international borders.”

Nium provides an alternative to traditional systems like SWIFT, offering businesses in the Middle East a fast and cost-effective means of handling cross-border transactions.

Nium’s real-time payments capability provides a seamless and instantaneous experience, enhancing the speed and convenience of financial transactions for businesses and consumers alike. Nium facilitates effortless cross-border payments, effectively connecting the Middle East with the rest of the world through its network spanning more than 190 countries. Nium’s user-friendly platform empowers businesses to tailor their payment solutions, ensuring they meet their specific needs and preferences with ease.

Mashreq, the financial institution for the MENA region, has launched a new mobile banking app, ‘Mashreq UAE’, in an effort to provide an enhanced digital experience for its customers.

By merging the Mashreq app with the Mashreq NEO app, the firm is now able to offer a single-login platform for customers, enabling them to view all their financial relationships across products and services, enhancing convenience and simplifying their banking experience.

Mashreq explained that the newly enhanced Mashreq NEO experience, offered via the Mashreq UAE app, was designed with the customer in mind, offering a personalised experience, such as displaying offers for credit and debit cards specific to each individual on the app dashboard.

Simplifying the app’s branding also aims to provide a consistent experience across different customer segments and variants, truly embodying the essence of intuitive customer focus.

The new app offers existing Mashreq customers 24/7 customer service via the digital chatbot: ‘Mashreq Virtual Assistant’; which offers instant support and transaction management.

Customers who are new to the bank can now also benefit from a completely digital onboarding journey, enabling them to open an account quickly and securely with just a face scan. Biometric face validation provides a secure and streamlined process, making decision-making simpler for the customers.

Hoping to boost user engagement rates

Fernando Morillo, group head of retail banking at Mashreq, explained: “Banks that are focused on enhancing their digital infrastructure are set to see a dramatic spike in engagement, thanks to a consumer base that is evolving to be more tech-savvy, seeking convenience, simplicity and personalisation.

“Because of the demonstrated success of our digital banking platforms in the UAE and other global markets, we have undertaken expansion to new markets, such as Egypt, Pakistan, and scaling up our presence in the GCC.

“The new, supercharged Mashreq NEO experience we have introduced through this launch, is yet another incredible milestone in our journey to creating truly game-changing digital experiences for our customers.”

In terms of growth and engagement, the launch of the Mashreq UAE app hopes to significantly boost user engagement rates. The bank forecasts growth in these areas, highlighting the app’s potential to transform the digital banking experience for its users.

These enhancements align with Mashreq’s vision for the app over the coming years, aiming to onboard all customers digitally, offer a comprehensive range of services, and establish itself as one of the most rewarding banking apps in the market.

Aiming to ‘exceed’ expectations of digitally-savvy customers

Radu Topliceanu, head of NEO and personal banking at Mashreq, also added: “As we embrace the future of banking, the revamped Mashreq NEO experience is more than just a technological advancement. It is a strategic pivot towards fully integrated, customer-centric digital experiences.

“The app is not only a gateway to efficient and secure banking but also a reflection of our commitment to understanding and addressing the unique financial needs of our customers.

“Our aim is to not only meet but exceed the expectations of our digitally-savvy customers, making Mashreq the go-to bank for innovative and reliable digital banking services.”