<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/banner-1251-2.webp" alt="M2P Fintech" title="" id="g4x9lr2sv" width="100%" height="479">Bridging the shortcomings of traditional banking through integrated value chains and regulatory requirements, <a class="link" href="https://m2pfintech.com/blog/neo-banking-101-all-you-need-to-know/">neobanks</a> today offers a holistic twist to banking services. User-friendly and completely digital, these banks work on referral-based acquisition and competitive pricing.With no banking license of their own, neobanks partners with traditional banks to offer their service suite. While this might be a pain point, neobanks target niche micro-segments like the Gen-Z because of their higher transaction volumes. Coupled with Data Analytics, neobanks bring forth innovative solutions to help individuals keep better track of their finances.For instance, our client Finin, India’s first neo bank, has brought on a feature where users can have a unified view of their bank accounts via their platform. It helps a user to keep better track and plan their financial journey.<h2 class="heading-node" id="27ed">Unbundled Banking</h2>Neobanks today are focusing on offering one type of product/service with complete functionalities. They operate with customized tech stack modules aimed at niche segments with user convenience as the focal point. Some of the top global neobanks are Revolut, Monzo, WeBank, Chime, etc.Paradoxically, legacy banking institutions cannot create these experiences as they face redundant processes, <a class="link" href="https://m2pfintech.com/blog/why-payments-interoperability-is-a-must-for-todays-generation/">interoperability</a>, etc. Fintech professionals realized that an obsolete technology stack was limiting the interoperability of traditional banking. This, in turn, guided the notion of Unbundled Banking, with neobanks steering the helm.Unbundled banking further narrowed that focus on customer experience, user convenience, and simplified processes. In this approach, anyone can launch banking products minus the need to go through a rigorous process of setting up a bank.<h2 class="heading-node" id="d0fd">Neobanking Revenue Model</h2>Neobanks operate on a strong cost-efficient model backed by less complex IT systems. So, their revenue model depends on the kind of products and services offered by them. Cross-selling of products/services to niche customer segments also acts as a secondary revenue stream for neobanks.They are driven by data-based decisions that depend on a decision-making model. Neobanks gather consumer data and analyze them and predict consumer behavior. These predictions help to offer customized services to their target customers. By deploying AI-driven chatbots, video chats, and data analytics, neobanks are available to customers as a cost-effective banking service right at their fingertips.Neobanks cross-sell and generate secondary revenue streams with a range of customized offerings suitable to customer’s needs. They also offer payments and accounts back-end platforms for other fintech companies to build their own interface on top of it.<img src="https://miro.medium.com/max/1400/1*ccQft1zHg2RQupLqXoK1YA.png" alt="Neobanks’s revenue model" title="" width="100%" height="306">Plug and Play solutions with 3rd party service providers with ease and data insights. With this, they can offer a range of products and services based on customer appetite and financial goals to boost up the secondary revenue lines and opportunities for cross-selling.&nbsp;Boosting lending options to customers and the SME sector will help generate revenue options.<h2 class="heading-node" id="6d68">Neobanks &amp; the less-digitally savvy users</h2>The audience that comprises this segment is often elderly and rural customers; capturing their trust is quite an uphill task for neobanks. They gain such customers with a free account and low fees and budgeting tools and cash projections based on past spending, and ‘savings pots’ for spend categorization. Offerings like High-Yield Savings Accounts and easy money movement through lower fees &amp; charges are some ways.Neobank growth can be accelerated through adaptable services and convenience in money transfer like cheaper lending rates and better rural audiences’ products. Creditors can choose borrowers and information from diverse sources and technology-based lending.&nbsp;Like how social media platforms have pulled in rural customers, neobanks also need to create awareness through their user-friendly applications.Reduced data rates &amp; smartphone prices will also encourage rural customers to use neobanking apps and gain trust.<h3 class="heading-node" id="e927">Neobanks &amp; Transparency</h3>The issue of banking transparency is closely linked to <a class="link" href="https://m2pfintech.com/blog/fintech-a-catalyst-for-financial-inclusion/">financial inclusion</a>. Neobanking transparency can be improved through dashboards, reports across products with enhanced interfaces, and easy-to-understand services such as payments, payables and receivables, and bank statements. They must explain real-time notifications, any charges, and penalties incurred by the customer too. They should send instant alerts to customers to know exactly what is going on with their account.<h3 class="heading-node" id="2fb2">Security &amp; Privacy</h3>Neobanks were the primary users of security-enhancing models. These were MCC block, single-use <a class="link" href="https://m2pfintech.com/blog/all-you-need-to-know-about-virtual-cards/">virtual cards</a>, and tokenized online transactions. They rely on security and safety when designing platforms, like data localization or 2-factor authentications (2FA) for card-based transactions.Neobanking enables third-party financial service providers (TPPs) to access customer data from banks or financial institutions. They must maintain robust online anti-fraud systems and inform customers of breaches as soon as it happens.Customer permission is required to ensure data privacy or share certain information with banks or providers. For instance, if the customer gave consent, they can share financial data like spending habits and regular payments with other banks.Providers must comply with <a class="link" href="https://m2pfintech.com/blog/gdpr-in-a-nutshell/">GDPR regulation</a> and data protection rules. They must provide transparency on how and for what the data will be used, for how long before they get a customer to sign up.<h3 class="heading-node" id="04ca">Trust</h3>Neobanks have strong drivers for securing their customers’ accounts, which are reputation management &amp; consumer perception. Developing trust can also be a challenging factor for loyal traditional banking customers.&nbsp;Fines, data breaches, and attacks can significantly damage consumer trust in non-traditional banks. Therefore, neobanks must protect consumers from mobile Trojans phishing scams and account takeover attempts. They can earn consumer trust through advanced authentication concepts such as dynamic linking, device binding for mobile apps, mobile application shielding, and transaction risk analyses.Strong privacy and data protection policies like removal of hidden fees and charges can help build consumer confidence in neobanks.<img src="https://miro.medium.com/max/1400/1*0VH_WhJDpgy4AEpgB9ivEA.png" alt="Advantages of Neobanks" title="" width="100%" height="306">Neobanks are trying to simplify the ways of transacting through digital mediums through:1. Simplified process with minimum steps to complete with minimum redirect for the transaction/payment 2. Tightly tying up and different players in the ecosystem (Retailers, Digital Service Providers, Issuer and Acquirer banks, etc.) 3. Standardization across devices and internet browsers 4. Compatibility across platform and technologies 5. Educating conventional customers on digital payment and ensuring that money is safe.<h2 class="heading-node" id="1e23">Neobanks Vs. Traditional Banks</h2>Traditional banks are focused on product-centric models, meaning high verticalization of products, no strong communities built around the brand/product, increased customer acquisition cost, and legacy technology infrastructure.But currently, traditional banks have been increasingly offering unique products and services to customers. One might wonder how neobanks will continue to differentiate themselves from conventional banking as a result.Neobanks can tackle product competition by keeping the focus on a platform-centric model. For example, high community engagement with the product, product horizontalization with best-in-class apps, open-banking APIs, and capitalize on a mobile-only approach for the low customer acquisition cost. A lower dependency on 3rd party providers and real-time data integration and management might help too. Above all, customer-centric organizational design and customer needs to drive data architecture.Neobanks create an ecosystem of services around their infrastructure, shifting the banking value from branches to their <a class="link" href="https://m2pfintech.com/blog/the-world-of-apis-how-they-power-fintech/">API</a> layer.&nbsp;They expand their user base by providing services on a 3rd party platform or offering 3rd party services on their platform.The neobanks’ value propositions &amp; CLV is based on lower costs, personalized insights, predictive intelligence, user-friendly interfaces, easy accessibility, and simplified processes.<h2 class="heading-node" id="17cf">The Global Way Forward</h2>On a global scale, neobanks are on an upward growth trajectory in Europe, followed by America. The real neobank growth is being unlocked in the APAC region, with many countries devising their virtual banking systems.Hong Kong, Taiwan, and Singapore have already implemented virtual banking licensing, with Thailand and Malaysia following suit.In India, neobanks are still nascent. Still, they are playing a leading role in helping small businesses to manage finances conveniently and comprehensively. The data below shows that the Indian neobanking market is growing fast:<ol class="list-node" id="701721vxm"><li>Average market maturity of India is 2–3+ years compared to 5–6 years+ in Europe and the US.</li><li>Number of neobanking players in India has gone up in the recent past compared to global markets.</li><li>Fund raised by Indian neobanks have gone up to $168 million</li><li>Indian neobanks are boosting up the competition through value-added services apart from standard offerings.</li><li>Indian Government supports the MSME sector through different schemes that open up Indian SME neobanks opportunities.</li></ol>Neobanks are expected to explore strategic partnerships with&nbsp;established traditional banks to grow in India. The Reserve Bank of India (RBI) has not permitted a digital license to neobanks yet. RBI has initiated the change by providing a license to small finance and payment banks, to begin with. Banking Industry experts are hopeful that RBI will also work on policies to approve banking license for digital-only or neobanks soon in the post-covid-19 era. This will keep the fate of neobanks blurry.<h2 class="heading-node" id="c577">Conclusion</h2>Fintech will continue to push neobanking as the new normal. The pandemic is just a catalyst to ignite the digital transformation. Neobanks are challenging mainstream traditional banks. They are backed up by digital backing licenses and control most of the value chain from front-end to back-end.Till then, neobanks in India will have no option but to continue partnering with the traditional banks to offer services.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Neobanking - The Rise of New-age Banking

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/banker.webp" alt="M2P Fintech" title="" id="45u491evk" width="100%" height="356">It was a much-awaited holiday season and the beginning of the new year. Without any surprise, the entire <a class="link" href="https://m2pfintech.com/">M2P</a> team was geared up and raring to go! As we started interacting with our colleagues to know more about them and their teams, here’s what we got, an impromptu interview with our Accidental Banker, Vivek.Engineer by education and Banker by profession Vivek Prashanth has deep expertise in branch banking, managing alternate payment channels, liaising with program partners, and working with card networks. With an innate flair for constant learning and as a curious person by nature, he made a pivotal shift to Fintech just to experience the best.As he treks his program management career, he realized the technological facets of modern financial organizations. He sees what it is to be in the world of API-led banking or payments and to be in a new role of program frontrunner. So, let’s see how he describes his journey with M2P and how it helped him discover his hidden expertise and celebrate his realm of interests.Before that, a small gold pick for your read! Vivek is a dedicated family man and an avid cricket fan who gets up early in the morning just to see a perfect square cut or a jet-speed Yorker.<h2 class="heading-node" id="36c6">So, what brought you to M2P?</h2>As a client, I partnered with <a class="link" href="https://m2pfintech.com/">M2P</a> for a QR payment project. During those interactions, I got to experience the work-culture prevailing at M2P and got inspired by the same. It was also a happening start-up, which offered loads of cross-functional learning opportunities and more choices than banks and other traditional roles do. And again, I was quite interested in working in a fast-paced start-up environment, and M2P was a perfect fit.<h2 class="heading-node" id="4b82">I heard that you’re the one behind every program that runs on the M2P platform. So, what’s your role at M2P, and what’re some of your key responsibilities?</h2>Here at M2P, I lead the operations from banking, card ops to finance operations. Managing BAU (Business As Usual) and providing post live support to banks and partners are some of my primary responsibilities. For instance, once a program goes live, it comes to my radar. From then on, I manage the E2E (End-to-End) lifecycle from accounting, reconciliation, and settlement to customer service.<h2 class="heading-node" id="6743">Any favorite project at M2P, and why?</h2>In fact, my first assignment happens to be my favorite project. We were building a Forex product with YBL, and I was the go-to person for new products like cross-border payments at that time. And I am happy and fortunate for the chance to lead the same!<h2 class="heading-node" id="93c5">Is there any difference between working in a bank and working at a fintech?</h2>Yes, absolutely. Firstly, you get more insights into the Fintech industry. Secondly, there are umpteen and unique learning choices that traditional positions might not or cannot offer. Banking by itself has a lot of restrictions that limit your latitude widely. Thirdly, when you are in this space, you understand how technology, business, and other back-end banking systems work. It is not only about being in a program partner role; actually, you are on the other side of the hustle, interacting with clients and business executives. Not only could you receive requirements, but also see how the product shapes up from scratch and through its lifecycle.<h2 class="heading-node" id="930f">Having said that, what’s the most exciting thing about working in the banking and payments sector?</h2>The evolution of banking and payments is something that fascinates me. New product development and different use cases in the payment sector that solve niche challenges make it even more enjoyable. By working in this domain, we could make an impact.<h2 class="heading-node" id="9379">If you want to highlight what M2P means to you, what would it be?</h2>M2P is like a must-be-cherished soundboard for me. Indeed, it has taught me flexibility, role diversity, and growth. Agility, quick turn-around, and instant product roll-out are three phrases that accurately capture the essence of M2P. Significantly, the pace at which a solution gets formulated, designed, and delivered is quite impressive.<h2 class="heading-node" id="586a">What’s your preferred working style or culture?</h2>As I said earlier, in an environment like M2P, agility and dynamics are inevitable elements. To nourish the same, I prefer not to confine myself to a fixed routine but often set or reset priorities keeping flexibility in the nearshore and schedule workdays around projects!!And usually, I don’t opt for rigid timelines. Instead, I would list the tasks at hand, approach folks to plan a timeline for the project, and motivate the team to commit to the deadline. This approach, indeed, builds accountability within the group. By pushing them to explore and pursue new projects, I allow them to learn something new and implement something incredible beyond their comfortable palette.<h2 class="heading-node" id="d2f6">What skills have you best mastered over the years?</h2>As a banker, I have been working with and managing large teams for a while. So, without a twist, team management is one of my strengths. Other competencies include developing professional rapport, effectively communicating and negotiating with cross-functional groups, engaging customers, and rendering them quality service. At M2P — I have fortunately had the full vicinity of how a back-end banking system works.<h2 class="heading-node" id="c5f5">What fascinates you about payments and the work you do?</h2>It’s an evolving industry. The business, products, and everything in the company is changing. It might be a regulatory change or a newly coming out company or a product that brings something new to the ecosystem. It is happening and fast-moving. These developments motivate me to learn more than whatever we know now, as we might get outdated in a month or two.<h2 class="heading-node" id="7028">Tell us anything about you that we don’t know?</h2>I don’t usually sugarcoat anything! Sometimes I may not sound like a soft-spoken person since I’m a reality checker. I was a zonal level runner-up for volleyball and badminton. I listen to music a lot, especially lyrical melody music.<h2 class="heading-node" id="5651">How do you keep yourself updated about payments and card transactions?</h2>I talk to people, especially in M2P. When you talk to people, you get to know about current affairs. When you talk to clients, you get to know about the industry and how it works. I do read, but maybe not that much. I get more information from people than paper.<h2 class="heading-node" id="b8ba">How do you motivate your team?</h2>Firstly, Learning is one thing that I always look for. So, I insist my team members to keep learning and rise above themselves on every possible occasion.Secondly, you have to talk to them, empathize with what they’re going through. Regarding their career and growth, you have to push them by saying, ‘You can do it!’. I will let them figure it out themselves, revert to me for any show-stopper, guide them in the right direction, and provide resources.<h2 class="heading-node" id="5138">How have influences like Bill Gates influenced you as a banker?</h2>To be frank, I got influenced by our company founders rather than thought leaders. This is because they have achieved great heights, starting from a humble background and always value family and culture.<h2 class="heading-node" id="30c9">One favorite memory after joining <a class="link" href="https://m2pfintech.com/">M2P</a>?</h2>One was the elevation in my career last year. Second is when we go out to meet clients or to a bank, people recognize me. Those moments are my cherished memories!<h2 class="heading-node" id="6fd2">Three words to describe Vivek</h2>Organized, shrewd, and bankable<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Meet our Accidental Banker

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/gametech-2.webp" alt="M2P Fintech" title="" width="100%" height="383">It’s quarantine, and Sam is busy playing Among Us with his friends. As he progressed through levels, Sam wanted to upgrade his avatar to match his friends. That’s when he came across the in-app buy button. As he had linked his cards to Google, Sam immediately purchased the avatar and continued his gaming journey.Now you might be wondering, why is gaming featured in a fintech newsletter? Well, here is our unique angle to it:GameTech is a fresh vertical that combines <a class="link" href="https://m2pfintech.com/blog/fintech-101-discover-the-3ws-of-fintech/">financial technology</a> and the gaming industry into one.With the onset of the pandemic, Gamification has integrated itself with our lives. Paradoxically, this lockdown also saw increased connections with the family through heritage games like Ludo. However, many had also turned to mobile gaming as part of their lockdown activities.While most online games offer in-app purchases that enhance a player’s gaming experience, like upgrade their avatar or unlocking bonus features that help them advance in the game. This means that thousands of gamers are now opening their <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital wallets</a> to take advantage of the slashed prices and limited offers that are often irresistible to pass up.This is why online gaming is now a part of the fintech ecosystem.According to Newzoo, the games market will account for $174.9 billion by the end of this year. This figure is a $15.6 billion increase from a forecast done in the beginning stages of COVID.On a global scale, online gaming was once dependent on <a class="link" href="https://m2pfintech.com/blog/credit-card-processing-a-definitive-guide/">credit cards</a> and ATMs for purchases. But since then, the gaming industry had rolled out a robust payment structure to streamline gamers’ transactions.India’s gaming market is projected to be $1 billion by 2021, a significant increase from $260 million in 2016. Indian gamers view it as a competing platform to bond with their friends. This mindset has run deep in India’s Tier 2 and Tier 3 cities, where the adoption of apps and in-app purchases is the highest. A result of this consumer behavior has led to revenue generated from customizable avatars and virtual coin packs arising from the apps. Revenue was also generated from ads that gamers needed to watch to receive extra features in the game.This response has prompted e-gaming businesses to change their models from download volumes to one engineered on consumer engagement and experience. With more than 400 gaming start-ups trying to make online games interactive for India’s 500 million smartphone users, the game tech industry looks at two-folding investments within a few years.Gametech in India is a market worth tapping into for its immense potential. With the current scenario, we hope to see India become a key player in online gaming in the coming years.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Gametech- A rising star in the fintech world

<html><head></head><body><img class="alignnone size-full wp-image-2580" src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-8-13.webp" alt="M2P Fintech" width="100%" height="100%">

<a href="https://m2pfintech.com/blog/pci-dss-the-payments-armour/">PCI DSS stands for Payment Card Industry Data Security Standard</a>. A collaboration between top reputed <a href="https://m2pfintech.com/blog/credit-card-processing-a-definitive-guide/">credit card</a> brands such as American Express, Discover, JCB, Mastercard, and Visa in 2004 resulted in PCI-DSS launch. Organizations who store or process, or transmit the cardholder data either as clear or in an encrypted manner should comply with PCI regulations.

A short survey showed that most people give the above description when quizzed about PCI-DSS. When we further probed them about the levels present in this compliance, we came up short. So, we came up with a quick read of the PCI-DSS compliance levels.
<h2 id="6c0f" class="rz sa ps bn ds sb sc sd fr se sf sg fv sh si sj fz sk sl sm gd sn so sp gh sq dr">PCI DSS Compliance levels</h2>
Divided into four levels, the PCI Compliance levels are based on the number of credit or debit card transactions processed by a business annually. These levels determine what needs to be done by an enterprise to remain compliant.
Level 1:
Applies to merchants who process more than six million real-world credit or debit card transactions annually. An authorized PCI Qualified Security Assessor will conduct an annual internal audit and an on-site evaluation of the organization to:
· Authenticate the assessment’s scope;
· Evaluate technical information and documentation;
· See whether the PCI-DSS standards are being met;
· Assist and guide the compliance process and
· Also, evaluate the compensating controls
On successful evaluation, the QSA will present an RoC (Report on Compliance) to the organization’s acquiring bank, thereby demonstrating its compliance.
Level 2:
Applies to merchants who process between one and six million real-world credit or debit card transactions. Security testing reports on network hosts and applications should be completed on a defined frequency. The RoC is also applicable for level 2 organizations.
Level 3:
Applies to merchants who process annually between 20,000 and one million e-commerce transactions. A yearly assessment must be done using the relevant SAQ (Self-Assessment Questionnaire)along with a quarterly PCI scan.
Level 4:
Applies to merchants who process annually fewer than 20,000 e-commerce transactions or those who process up to one million real-world transactions. They must complete a yearly assessment using the SAQ and a quarterly PCI scan.

<h2 id="7604" class="rz sa ps bn ds sb aed sd fr se aee sg fv sh aef sj fz sk aeg sm gd sn aeh sp gh sq dr">What is this Self-assessment questionnaire?</h2>
PCI-DSS lists several kinds of SAQs for every level, and it is also based on how the merchant processes card information. Given below are some of the types of SAQs applicable to levels 2–4:
SAQ A: Merchants who outsource their entire card data processing to certified third parties. The transactions also include e-commerce transactions.
SAQ A-EP: Applies to E-commerce merchants who outsource their payment processing but not the site’s administration.
SAQ B: Applies to E-commerce merchants who don’t receive cardholder data, but they have control over the process through which data is redirected to a third-party payment processor.
SAQ B-IP: It applies to merchants who don’t store cardholder data in electronic form but will use IP-connected point-of-interaction devices. These merchants may handle either card-present or card-not-present transactions.
SAQ C-VT: Applies to merchants who process cardholder data via a virtual payment terminal.
You must select the right SAQ because every level has compliance requirements based on how payment card data is processed.

<h2 class="rz sa ps bn ds sb aed sd fr se aee sg fv sh aef sj fz sk aeg sm gd sn aeh sp gh sq dr">How to become a PCI DSS compliant</h2>
The PCI DSS specifies six control objectives for an organization to achieve compliance:
1. Build and maintain a secure network
2. Protect cardholder data
3. Maintaining a vulnerability management program
4. Implementing strong access control measures
5. Regular monitoring and testing of networks
6. Maintaining an information security policy

<h2 id="2e3a" class="rz sa ps bn ds sb aed sd fr se aee sg fv sh aef sj fz sk aeg sm gd sn aeh sp gh sq dr">The penalties of non-compliance</h2>
As cardholder data is considered personal data, a PCI DSS breach can also be regarded as equal to a <a href="https://m2pfintech.com/blog/gdpr-in-a-nutshell/">GDPR</a> breach. If PCI regulations are not adhered to, organizations will face severe financial penalties or even lose their facility to accept card payments.
In short, PCI-DSS is a standard that ensures trust, business continuity, and safety of the cardholder data.
<a href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.

Follow us on&nbsp;<a href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.</body></html>

PCI DSS- A quick guide to its levels

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-2.webp" alt="M2P Fintech" title="" id="jc4mjh9mq" width="100%" height="479">Henry, an accountant, always takes the train on his way to the office. That particular day, he missed his usual cut-off time of leaving home and had to rush to the train station. He was terribly late for work and didn’t have a minute to swipe the card or scan the code to pay for his ticket. Then, Henry reaches the terminal and just places his index finger to purchase the ticket and proceeds to catch the train.<blockquote class="block-node" id="8ek6i7u3q">Sounds like a scene of a sci-fi movie, right? What if I tell you this is happening right now?</blockquote>Well, that is biometric authentication, where an individual’s unique physical traits are captured and stored by electronic devices. The captured information will be used to authenticate the individual’s identity when making a purchase.It is no secret that we often struggle to remember our passwords or PIN numbers. So, we resort to having our birthdays or our name as our password or PIN. Ironically, this also means we leave our sensitive data out in the open.With the global adaptation of <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">mobile payments</a>, the pressing need for a more secure system, as opposed to the existing authentication systems, is on the rise. Fingerprint scanning, iris recognition, and facial recognition are some of the biometric systems now in place.It does come with a slew of advantages like higher security, improved customer experience, and customer retention. But, on the flip side, the concern of personal information, especially one’s unique traits being out in the open, is a problem. Also, installing biometric systems requires a considerable investment that often retailers shy away from.<h2 class="heading-node" id="5a9a" style="text-align: justify">What does the future hold?</h2>Biometric adoption will be the future of the payment industry. And it is an innovation-driven by institutions and individuals wanting an upgrade from password/PIN input. Right from wearables to injectable chips, the idea of biometric authentication seems to have taken root.The world of payments keeps evolving with many futuristic trends in payment processing every day. <a class="link" href="https://m2pfintech.com/blog/future-of-payments-processing-matched-with-industry-needs/">Explore more.&nbsp;</a>It looks as if the future is just a step away………. Or rather a scan away.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Explore the future of payment authentication — Biometric

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-8.webp" alt="M2P Fintech" title="" width="100%" height="383">India is fast emerging as the leader of consumer <a class="link" href="https://m2pfintech.com/blog/fintech-101-discover-the-3ws-of-fintech/">fintech</a> adoption at 87% with rapidly changing demographics and consumer behavior. Coupled with the government’s initiatives and regulatory policies, India was the perfect environment for deploying the Visa Everywhere Initiative (VEI).Started in 2015, the Visa Everywhere Initiative is a global program spread over six continents. More than 6000+ start-ups have benefitted and raised around $2.5 Billion in funding. But this is not the first time VISA has been active in the Indian fintech ecosystem.The programs of<ul class="list-node" id="3eh65jn4a"><li>The VISA Developer Program</li><li>VISA Ready Program</li><li>Fintech Fast-Track Program</li></ul>were already launched to cater to the ever-growing needs of the Indian fintech ecosystem.Also, the VEI initiative was explicitly customized to address the challenges of<ul class="list-node" id="htb8zqgg0"><li>Digital issuance</li><li>Onboarding of merchants</li><li>B2B payments value chain transformation</li></ul><h2 class="heading-node" id="0b92" style="text-align: justify">The Indian Connect</h2>VEI started its roadshow in five cities across the country so that Fintechs can get acquainted with it. Right from early-stage to established Fintechs, everyone got themselves registered with the platform. This event was also held at Sambalpur, which was the “India first” idea for VEI, and it brought forth local fintech founders.Loads of engaging conversations about how <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital payments</a> were used to transform business models across countries were discussed. It was when VEI became a platform that inspired Fintech, and #InspireIndianFintechs became the slogan.This program also took on the mentorship stead and brought forth experts across VISA verticals. The experts mentored and offered technological support to the participating fintechs. Soon, the participating fintechs pitched their solutions with proof of concept. All this mentorship and demo was to be followed by a grand finale.<h2 class="heading-node" id="48fb" style="text-align: justify">The Learnings</h2>VEI’s journey through India brought a treasure trove of mutual learning. But, it also put forth the challenge of organizing the right outreach for fintechs and arming them with relevant APIs. VISA overcame this obstacle by giving them access to the VISA developer portal and its <a class="link" href="https://m2pfintech.com/blog/the-world-of-apis-how-they-power-fintech/">APIs</a>. Also, the global expertise of the mentors helped the participants leverage VISA tech and assets.<h2 class="heading-node" id="ecac" style="text-align: justify">The Success</h2>The first edition of VEI turned out to be a huge success, with so many instances increasing the adoption of digital payments. It ignited a revamp of essential services to empowering micro-businesses along with support solutions.<h2 class="heading-node" id="1adf" style="text-align: justify">The Obstacle</h2>The chronicles of VEI in India started in late 2019, but before they could get to the main event, COVID-19 had forced a nationwide lockdown. But it also brought forth solutions to tackle the post-COVID era.<h2 class="heading-node" id="1c91" style="text-align: justify">Fintech’s future</h2>The Fintech ecosystem is all set to drive a radical change on the brink of customer experience and innovation. VEI will be the bridge that will connect legacy institutions and new-age Fintech, boosting financial inclusion. The customer will be the recipient of the best of both worlds. VISA will play a vital part in India’s journey of becoming a digitized economy.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

The VISA Everywhere Initiative — A journey spanning 100 countries

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Discover-the-fintech-trends.webp" alt="M2P Fintech" title="" id="eaotenosx" width="100%" height="479"><a class="link" href="https://m2pfintech.com/blog/fintech-101-discover-the-3ws-of-fintech/">Financial Technology, or Fintech</a>, is more than just a buzzword. It drives new business models, many opportunities, and endless possibilities. So far, it has brought forth many innovations and exceptional tech advancements.This year alone, the sector has received about $30 Billion as an investment. <a class="link" href="https://m2pfintech.com/blog/fintech-a-catalyst-for-financial-inclusion/">Fintech has been creating ripples, and experts believe that below trendsetters will reshape the landscape of Fintech.</a>It might sound futuristic, but they will transform every organization into a fintech.So, let’s look at the five notable trends&nbsp;redefining the financial services and banking:<h2 class="heading-node" id="ecb5">Breathtaking Payment Innovations</h2>Till now, the breakthroughs in payments have always enhanced user experience. Right from physical cards, apps, QR, to contactless cards, innovations happen every single day. Moreover, there is a surge in e-commerce transactions as a result of the pandemic. So, <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital wallets and mobile payment platforms</a> are also seeing an uptick. Invisible, Free, and Fast Tap Payment or Contactless Card will be the most sought-after PayTech in 2020. Read more about the future of digital payments <a class="link" href="https://m2pfintech.com/blog/future-of-payments-processing-matched-with-industry-needs/">here</a>.<h2 class="heading-node" id="e243"><a class="link" href="https://m2pfintech.com/blog/central-bank-digital-currency-cbdc-101-a-primer/">Blockchain and Data Analytics</a></h2>Blockchain can mitigate credit frauds, phishing, identity thefts, and other hacks. And many salutations to the massive investments in data platforms, tools, and talent. AI, Machine Learning, and Analytics are now becoming mainstream and disrupting the financial sector.Besides, the industry is making great strides with the introduction of these technologies like<ul class="list-node" id="h8yc549ia"><li>Unveiling the know-hows of making financial chains more secure and transparent</li><li>Include advance decision making &amp; hyper-personalization to the existing solutions.</li></ul><h2 class="heading-node" id="7d92">SaaS API and Bundling &amp; Unbundling of services</h2>Fintech SaaS is a bigwig that allows bundling and unbundling of banking services. Platforms can be built with specific offerings and use an extensive collection of <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">robust APIs</a>. Customized solutions could be developed through add-ons. Mix and Match products are possible through quick and seamless Banking API integrations.<h2 class="heading-node" id="7673"><a class="link" href="https://m2pfintech.com/blog/neo-banking-the-rise-of-new-age-banking/">Neobank</a> or Digital-Only Bank</h2>Say goodbye to all the brick-and-mortar banks. Forget physical branches, bank tellers, long queues, or appointments.Imagine a digital bank platform up in the cloud that has all the banking solutions and functionalities into this single platform. Consumers can access services 24*7 via mobile, tablet, web, or other digital channels.This virtual digital-only bank would replace all the physical branches, and the infrastructure cost is nullified. Investments are only for maintenance, scalability, and security of the platform. This concept is called as <a class="link" href="https://m2pfintech.com/blog/neo-banking-101-all-you-need-to-know/">Neobanking</a>.In simple words, a traditional bank is like a chain of retail outlets, whereas a neobank is like an online retailer.Set up a neobank in just 7 steps. Curious to know how? <a class="link" href="https://m2pfintech.com/blog/7-steps-to-start-a-neo-bank-from-scratch/">Click here.&nbsp;</a><h2 class="heading-node" id="3f91">Conversational or voice interfaces and Chatbots</h2>A chatbot is a much-needed tool for better customer service and a superior banking experience. These financial chatbots resolve user queries swiftly and gather invaluable customer feedback. Also, conversational chatbots are more accurate, save time, store chat scripts for future use, and provide rich insights.They are also helpful in mapping user journeys and creating customer profiles. Further, voice interfaces could provide similar engagement, like bank tellers. They can re-create a virtual bank experience and retain customer emotions.Curious to know how fintech has boomed and what we can expect in 2023. <a class="link" href="https://m2pfintech.com/blog/8-fintech-trends-to-look-out-for-in-2023/">Read here.</a><a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Five Notable Fintech Trends of 2020

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-1-2.webp" alt="M2P Fintech" title="" id="2lkz0tdor" width="100%" height="661">Sam was tired of getting promotional emails in his inbox. He kept deleting them every day, but the next day the cycle repeated, and the inbox was full. He had no idea why he kept getting these emails, even though he doesn’t remember subscribing to them. Further, they didn’t stop even after choosing the unsubscribing option. Sounds familiar, doesn’t it?Well, we get these emails whenever we sign-up for a new online service or website. We would come across these familiar messages but never take heed of them as our primary intent would be signing up for their services. Below are some lines that are permanent fixtures when signing up online:<ul class="list-node" id="dj0oeak5a"><li>I would like to receive marketing emails on discounts, promotions, offers, and other information about the product</li><li>Do not like our emailers? Click here to unsubscribe</li><li>We may share your data with our third-party partners to bring you personalized offers</li><li>I agree to receive monthly newsletters, blogs, or the latest stories</li><li>Understand our usage of cookie data and how we partner with analytics service providers and social media</li></ul>Now, if you are wondering why they are a permanent fixture, it’s because they are mandatory by the GDPR guidelines.GDPR is the General Data Protection Regulation that came into practice to protect the individual’s privacy online. In simple terms, it is a list of data privacy rules and guidelines to safeguard customer data.It aims to provide consumers significant control over their data. At the same time, it serves as a valuable framework for organizations when processing customer data like name, address, photos, IP address, genetic or <a class="link" href="https://m2pfintech.com/blog/explore-the-future-of-payment-authentication-biometric/">biometric information</a>.<h2 class="heading-node" id="38ad" style="text-align: justify">The Beginning</h2>The European Union (EU) implemented the General Data Protection Regulation (GDPR) on 25th May 2018. The regulation attempted to limit data exploitation and to gain people’s trust in the digital economy.If a Non-EU area engages in transactions or data exchanges with an EU region, the former needs to follow GDPR. To elaborate, all the Indian companies working in IT, international e-commerce, and outsourcing also fall under GDPR since they deal with data processing. These regulations can even change the ways these companies do business with customers. Organizations should be aware of the GDPR’s laws, including the increased costs of managing and protecting customer information.For a successful implementation of data security measures, organizations must reflect the interest the customer has about his/her data in their sophisticated data collection methods.<h2 class="heading-node" id="5259" style="text-align: justify">When can a company record a customer’s information?</h2><ul class="list-node" id="4uezg67vf"><li>The customer consents to store information for as long as it is necessary</li><li>The customer can access and rectify the information at any given time</li><li>Companies store information on a commonly used format like CSV</li><li>They explain to customers how their data is processed and used, for how long, and by whom</li><li>They can delete customer information when the user thinks it is not necessary</li><li>They inform customers of data breaches within 72 hours of the breach detection</li><li>They notify customers if their data is vulnerable to a data breach</li></ul><h2 class="heading-node" id="af32" style="text-align: justify">Why the need for this regulation?</h2>Imagine knowing that all your personal information can be found with a single click. All your details can be traced, documented, and used for a third party’s gain. For instance, all the information you share online isn’t entirely safe, and the internet still hosts some confidential information.So, GDPR offers organizations a clear pathway of dealing with sensitive customer information while at the same time protecting the customer’s right to privacy.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

GDPR in a Nutshell

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-7-7.webp" alt="M2P Fintech" title="" id="dfm3kye4j" width="100%" height="479">Traditional insurance firms are yet to touch the foreign shores of technology adoption or disruption. Nevertheless, this pandemic has Insurance players considering their strategies and adopting technology to retain its customer base.So far, many insurers or insurance companies have adopted a technology-based process only on a cellular level. But, given the wave of innovation, Insurance companies are yet to arm themselves for the upcoming digital transformation. That is where InsurTech comes in to save the day.<h2 class="heading-node" id="971b" style="text-align: justify">InsurTech- Overview</h2>InsurTech is a component of <a class="link" href="https://m2pfintech.com/blog/fintech-101-discover-the-3ws-of-fintech/">Fintech</a> dedicated to delivering a complete set of <a class="link" href="https://m2pfintech.com/blog/digital-lending-open-credit-enablement-network/">digital insurance solutions</a> and services. When FinTech started, it mostly worked with banks as partners and improved user experience through online/mobile banking or <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital payments</a>.As a striking contrast, InsurTech focuses on the consumer segment than the commercial one. The reason is that digital-savvy individuals consider insurance products like any other consumer goods and are willing to try or switch new insurance policies. They are incredibly comfortable in submitting an insurance claim online or browsing for insurance policies online.<h2 class="heading-node" id="d670" style="text-align: justify">Product Strategy and Value Chain</h2>Today, most InsurTech applications cover consumer insurance product lines like Property &amp; Casualty (P&amp;C), Non-Life Insurance, and Health Insurance. And so far, P&amp;C has been a significant contributor to InsurTech’s revenue.Moreover, with extensive real-time data collection and analysis, InsurTech minimizes the number of false insurance claims considerably compared to legacy systems. It’s interesting to see that the same P&amp;C insurance product’s value proposition differs between incumbents (existing insurance providers) and new entrants (tech-based insurance companies).Currently, InsurTech is targeting the sales, pricing, and distribution areas predominantly in the overall value chain. For higher growth, it should expand across the entire value system, including new product development, and start offering more commercial or retail and life insurance services.<h2 class="heading-node" id="e14b" style="text-align: justify">Technology Triangle and Benefits</h2>Most of the tech adoption has improved the method of delivering and buying claims and paying and billing. For instance, streamlining the claim disbursement user journey is of utmost importance to InsurTech.Today, they include as many digital touchpoints as websites, apps, smart devices, wearables, and much more. Additionally, they are keen on instantly issuing claims right away when the customer faces damage. Many InsurTech has already accepted digital card payments instead of checks from customers to disburse and process claims at lightning speed.Therefore, the existing programs in InsurTech revolve around providing a better customer experience, lowering acquisition costs, minimizing risks, increasing upsell, and cross-sell.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

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