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TD Bank took a provision of $2.6 billion in the third quarter as it estimates the cost of fines from its U.S.-based money laundering compliance lapses. During the Canadian bank’s Q3 earnings call, Chief Executive Bharat Masrani gave an update on TD’s remediation program resulting from the U.S. money laundering investigations. He said the bank […]
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Whitney McDonald
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J.P. Morgan is joining French payments network Cartes Bancaires, Mike Lozanoff, managing director and global head of merchant services at J.P. Morgan, tells Bank Automation News on this episode of “The Buzz” podcast.
The bank is tapping cloud-based Renovite to build the connection to the network, Lozanoff says. The bank acquired Renovite in 2022 and is using the cloud-based solution and its team to build the tech, he says.
“We’ll be the first American bank actually part of the French banking system, where we’ll be registered and able to offer that card type directly in France,” he says.
Cartes Bancaires is “favorable to merchants” as a network as the cost of payment is low, Lozanoff says. The bank plans to have the card offering available by 2025.
Listen as Lozanoff discusses updates to JPM’s merchant acquiring business, including international efforts, e-commerce innovation and in-store offerings.
Early-bird registration is now available for the inaugural Bank Automation Summit Europe in Frankfurt, Germany, on Oct. 7-8! Discover the latest advancements in AI and automation in banking. Register here and apply to speak here.
The following is a transcript generated by AI technology that has been lightly edited but still contains errors.
Whitney McDonald 10:09:05
Music, hello and welcome to The Buzz a bank automation news podcast. This episode of The buzz is brought to you by bank automation summit Europe 2024 which takes place October 7 and eighth in Frankfurt, Germany. This event is tailored to resonate with financial services professionals focused on business optimization through technology and automation learn how to overcome implementation challenges by hearing first hand from C level executives from institutions including JP Morgan, Barclays, Starling bank and more. There’s no better place to get a read on the competition than at Bank automation summit Europe 2024 on October 7 and eighth. Register now at Bank automation summit.com my name is Whitney McDonald and I’m the editor of bank automation News. Today is August 20, 2024 joining me from JP Morgan is Mike lozenov. He is here to discuss his global efforts in the merchant acquiring business at JP Morgan, including tapping into a French network and boosting in store services. Thanks for joining us, Mike
Mike Lozanoff 10:10:01
first. Thanks Whitney, for having me on I’m excited to be here with you today. I have a little bit of unique story. Probably, in this day and age, I started my career out of college with JP Morgan, I guess it was bank one, and there were mergers along the way. And I spent, like, the first 12 years in engineering in our credit card issuing business, you know, from working second shift as a as an operator, to writing code in our card issuing business, and then moved over to our Merchant acquiring team about eight years ago, and now have run a lot of the engineering platforms for our card issuing and merchant acquiring so I got, like, a deep engineering background, but over the last five years, got the chance to run product and engineering for our enterprise business, and then recently, just was elevated to be the global head of merchant services for JP Morgan. So that remit includes leading the strategy and execution and full PNL accountability of our business here that provides merchant acquiring solutions to some of the largest global clients, and then also small businesses through our Chase branch network.
Whitney McDonald 10:11:09
Great. Well, thank you again for being here with your background in engineering and then, of course, leadership as well. You have a great kind of combination of background here that I’m sure helps you with innovation. So before we get into new technology and what you’re focused on right now. Maybe you could tell me a little bit about who you’re leading, what your team is made up of, and kind of give us a little glimpse into what your team looks like.
Mike Lozanoff 10:11:32
Sure, sure. So, you know, we have being a global merchant acquire we have a team that focuses on international markets, and I have a team there focused on on our gear up and Asia. We have teams in the US that are focused on our small business distribution and the solutions there, as well as our enterprise segment, which can be quite complex in enterprise payments, whether you’re selling directly to the largest retailers on the planet or distributing to partners and payment service providers that you know, offer their services as an intermediary. You know you have to manage those relationships, and many of them have relationships with the bank. So quite have to navigate that. Quite complex from time to time, teams focused on commercial sales. So how do we get the product and how we want to sell it? How do we want to price it? We talk to clients about it, a team very much focused on that. And then a team that gets a lot of work these days is focused on our payment networks and government relations. A lot can a lot can happen in this industry and regulation differs by by country and region. And so need to have a team there that also focuses on that. And then obviously, you know, my my comfort in engineering, I have that team as all as well focused. But of late, that’s kind of where I grew up and have a comfort zone. So I’m getting to learn a lot more of the business side, which actually has me really invigorated.
Whitney McDonald 10:12:57
Yeah, I’m sure that there is never a dull moment from the innovation to keeping up with client needs, and then the regulation piece of the puzzle, I’m sure, is just the the cherry on top, trying to bail it absolutely. Um, well, when it comes to what you’re working on, what you’re innovating, maybe you could give us a little insight into what you’re focused on right now. How’s the merchant, acquiring business evolving? What are you focused on? What are the client needs? And how do you kind of innovate around that. What’s the focus?
Mike Lozanoff 10:13:25
No, so we’ve one of the things we’ve been we’re a long standing merchant acquirer, operated under the brand, and many of our clients, you know, still use the brand payment tech. That’s what our contracts still state. And, you know, being a long term processor, you have to reinvent yourself from time to time, and we’ve been doing that now over the last few years, putting a lot of money into the platform and re skinning our offering as a commerce solution. And we have that out there where we’re really going deep into our API and digital channels. Clients need different things in today’s day and age, and how fast they need to get up and operating their. Speed of access to data and giving it to them in a form factor that is more modern has been a big investment area for us. We’re also going into it a little bit deeper into in store payments. We’ve been a strength player in E commerce and, you know, in online and online store recurring payments, but getting deeper as a bank processor in the in store, payments is a big investment for us. There’s there’s still a tremendous amount of spend in store, even though most of us, you know, may shop on our phones, but there’s plenty of things that that chat that way you buy online, pick up in store, and the solutions are quite complicated, and retailers like our brand, so they want to do business with us.
Whitney McDonald 10:14:47
Maybe we could take that idea of being a bank processor a step further. What’s the difference between being a bank processor and a payment processor? What’s the benefit there? I know that you kind of just mentioned you have the client interaction piece. Clients are familiar with the JP Morgan brand, but maybe talk through the differences there and the benefits and why that would be the path that merchant takes. Well,
Mike Lozanoff 10:15:09
I think it’s whether it’s a benefit or how you want to frame it. The thing I think is unique with us is, you know, it’s our brand, our systems, our engineers, our service all running it. We don’t outsource any of that relationship to a third party. We don’t white label someone else’s technology. It’s all us. And I think a little bit that the sales team differentiation there is, right when you have a problem, we stand behind it, and our companies been around for a long time, and will, will weather any storm. So I think one that’s a good point of just trust, right there a trusted name, a trusted brand, and we’re going to put, you know, the firm’s reputation behind anything we put in market. At times, it can also be a tough thing, because the firm reputation or brand can be used against you. So I would like to say payments is a very passionate topic. When companies have any issue, they like to leverage their firm, wide relationship against us, so that there’s always a good side and a bad side to to what you have as a being a processor,
Whitney McDonald 10:16:12
yeah, but I like what you said there about owning the whole journey. You’re not outsourcing any of it. I mean, we do a lot of coverage, and we see all the time, there’s different partnerships. There’s different someone owns this part of the journey. Someone owns this, who owns this part? And if there’s issues with the payment, it can kind of get a little bit messy. So having it all in house allows for that to all be in one place. You know, you’re, you’re responsible for the whole journey. When things are going great, or if there’s a hiccup, you can,
Mike Lozanoff 10:16:41
yeah, absolutely. And it is. It’s a complex thing. I think the the item I’ve, I’ve learned more as I speak with retailers or large clients, is, you know, they aren’t, they aren’t payments experts or transaction experts, right? They just want to run their business. So the more we can bring solutions to them that are, are more comprehensive, is something that they’re they’re listening to. And again, if you have one person or one team to call, and the thing I’ve seen is, what’s kept me at JP Morgan for so long, you know, if there is an issue, we swarm to it and we’ll fix it. And that’s the thing, I think, that’s, you know, also resonates with clients that have a long standing relationships. They know we’ll be there.
Whitney McDonald 10:17:21
Now, speaking of having the the ability to problem solve. You’ve been at JP Morgan a long time. You’ve seen the different, I don’t know, the different innovations come out. You’ve seen how the journey has evolved at JP Morgan, just from being on the different teams that you have been on. But maybe you can talk us through a little bit of some projects that you’ve been involved with as of late. What solutions are you bringing to market? What are you working on? What are you investing in to kind of meet some of that client need Sure.
Mike Lozanoff 10:17:49
Let’s see where to start. I think some of the things that are most interesting lately, we spent a lot of time just keeping up with the regulation and ongoing payment reg. But that’s not the coolest stuff. I think the newer things now are one. I’m excited about how we’ve been digitizing our business and then taking a lot of insights and data assets that we have where we can see one of the other advantages of being a major bank processor. We have a huge consumer set of data. How are all the chase customers that have credit cards or debit cards, spending their money, even if they don’t process with us, we have access to look at these kinds of things and help clients see how they may be comparing their spend against other demographic customers in that same segment. Or the example I like to use is maybe helping small businesses, where we can present them as a comparison tool that, and I think we call client Insights, where we say, let’s say you’re a barber shop and you want to open a second location. Well, where are others spending money in different geographic regions around you? And can even help you understand where you may want to open your next door. These are different things. Things that we’re using to able to use data to help give clients the ability to grow their business. The other one, I see that we’re having to really challenge ourselves about not just being part of the transaction flow, but of the client’s journey. So the more we’re getting able to spend in areas around helping them take other parts of their business, whether that’s payroll and building a payroll service that’s integrated for our small business solution, or giving them something to help them with their Let’s see your subscription client. We’re putting logic in to say we can help manage your subscription billers, that you be your clients, that you bill or your customers, and if they get declined, we will retry on your behalf and do different things to help you not lose that customer. These are things that used to be just, you know, think things that a client would have to manage, or a customer would manage, and now we’re trying to build software on behalf of them.
Whitney McDonald 10:19:57
Now, one of the things that’s interesting, of course, is the idea behind the data. And of course, you guys have a ton of data that you’re collecting. You just talked through that, but being able to tap the data and those insights, like you said, the geography or comparing spending on the consumer side or small business side, that’s something that’s key right now. Are you seeing increased demand for that from the client base right now? Are they using these solutions? Are they tapping something like consumer insights.
Mike Lozanoff 10:20:24
They are, they are, you know, they get, you know, what you always find when you present a new product or a new insight is, like, you get a little bit of, you know, click through interest in the beginning, and then you have to watch it right. What, you know, what I what I think may be next is, hey, that insight is neat, but now I have to turn that insight into an action. Maybe I can inject a loyalty program or a marketing campaign. I think continuing to pull the what’s next? How will it help the business? Is where we’ll continue to innovate, invest.
Whitney McDonald 10:20:53
I think that’s the perfect segue to the next question, which is, what are you focused on right now? I know that you mentioned this is, this is a global business. You have your teams in Europe, you have the teams in us. You have a global business. You’re keeping up with different regulation. You’re keeping up with different payments, rails and networks. What are you focused on right now? What has your attention for? What has had your attention in recent months and in coming months that you’re focused on and prioritizing?
Mike Lozanoff 10:21:22
An interesting one. Maybe I’ll jump internationally for a bit. We, we did announce being a large European processor as well, where one item we’re doing is we’re building connectivity into a French local network called carp on care. We’ll be the first American bank, actually, part of the French banking system, where we’ll be registered and be able to offer that, that card type in directly in France. And I think it’s, you know, it is, think of it as a local debit network of sorts, like we have in the US. They have that in French, and has large spend on it, as it’s very favorable to merchants, as the cost of that payment is quite low. We’re doing that with some of the newest technology that we’ve built. We acquired a company a few years ago that was a cloud switching technology that we’ve now incorporated into our full platform. The company was called renovate, and we’re doing it with that team so it’s a full cloud solution. It’s weaved into our target commerce platform, and we hope to be selling that in 2025 that’s got a quite a bit of work. We’re also taking some of the best assets we’ve got from really trying to stitch in a strong digital onboarding for small businesses. We did a lot of that, and have had that in different places across our our software stack. We’re really trying to get it all into this commerce platform. So taking all the digital assets and making sure, whether you’re small, medium or large, we have one way in to get to our services, the only one that I think is kind of a need. I mentioned this in store piece. So you know, just coming from, you know, a tech background, what I didn’t always realize, and it’s now ruined shopping for me, being part of a merchant acquiring business, because I go in and I look at the terminal and I wonder who the processor is, but that the complexity of what retailers have to deal with, with that physical in store device, their ERP systems and inventory. So the investment we’re kind of making, and you know, our we’re calling it our omni channel investment, where we’re going to start to own the software applications on these terminals that will work natively with our online online interface will help to take a lot of that friction away from clients. So, you know, that’s one I’m extremely excited about we’re probably a year into software development and some of the product development we’ve been talking about at various different conferences, but I see it really going live in 2025 and that’s going to be a new channel for us, because we’ve always distributed merchant acquiring through a lot of those retailers, and they’ll continue to be. Strategic partners of ours, but we’re also tiptoeing into it ourselves to see, you know, can we play in that market as well,
Whitney McDonald 10:24:10
to own yet another piece of that, that whole, the whole value
Mike Lozanoff 10:24:14
chain and that and that headache for clients, how can we continue to take that and see how we can bring that more and more in house?
Whitney McDonald 10:24:21
Yeah. I mean, that definitely makes sense. So you said hopes for that to go live 2025
Mike Lozanoff 10:24:27
That’s right, we’re actively talking to clients now and building a pipeline, but yeah, we’ll really start to get that brought in North America next year.
Whitney McDonald 10:24:38
You’ve been listening to the buzz a bank automation news podcast. Please follow us on LinkedIn, and as a reminder, you can rate this podcast on your platform of choice. Thank you for your time, and be sure to visit [email protected] for more automation news. You.
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Gambling activities generated more than $140 million in revenue for casinos and sportsbooks in Massachusetts last month, with $36.5 million of that haul due to the state as taxes or fees, the Gaming Commission said.
Plainridge Park Casino in Plainville, MGM Springfield and Encore Boston Harbor in Everett generated a cumulative $99.47 million in gross gaming revenue during July, almost two-thirds of it at Encore.
The state’s seven online sports betting companies and the physical sportsbooks at the casinos produced an additional $41.21 million in taxable sports wagering revenue last month.
The Plainville slots parlor is taxed at a rate of 49% of its gross gaming revenue, and the two full-scale casinos pay a 25% tax on their gross gaming revenue.
For July, that worked out to about $28.3 million for the state, the commission said Thursday. Revenues from brick-and-mortar sportsbooks are taxed at 15% while online gambling revenues are taxed at 20%. The commission said July’s sports betting resulted in almost $8.2 million in state taxes.
Bettors in Massachusetts risked about $411.8 million on sporting events that took place in July, with more than 98% of that in wagers placed over the internet rather than in-person. That’s up from about $285.7 million wagered in July 2023. The operators’ monthly revenue represented 10.26% of the total handle.
Since legal gambling began here in 2015, the state has collected $1.82 billion in taxes and fees from casino-style gaming. It has also taken in $166.61 million in taxes and assessments from sports wagering operations that became legal in 2023, the commission said.
Also, the American Gaming Association reported that U.S. commercial gaming revenues grew for the 14th consecutive quarter across the months of April, May and June of this year as expanded gambling options including sports betting and online casino gambling apps have proliferated to more and more states.
The organization said the $17.63 billion in quarterly revenue for the sector generated $3.73 billion in tax revenue for states across the country.
“While sports betting and iGaming continued to drive overall industry revenue growth in the second quarter, new brick-and-mortar property openings in Illinois, Nebraska and Virginia also led to rising traditional commercial gaming revenue,” AGA Vice President of Research David Forman said. “Across the country, land-based gaming markets are seeing mixed year-over-year comparisons due to slower consumer spending economy-wide, which may continue to be a factor through the remainder of 2024.”
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By Colin A. Young | State House News Service
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London-based Barclays bank and Amazon have come together to launch a co-branded card in the United Kingdom: Amazon Barclaycard.
“We’ve launched this card for anyone who loves to shop at Amazon and wants to be rewarded for doing so on their everyday spend,” a Barclays spokesperson told Bank Automation News.
Amazon Barclaycard users can earn the following rewards:
Customers can claim their rewards within the Barclaycard app or manage their card via the Barclays app, the spokesperson told BAN.
The Amazon Barclaycard is an expansion of the ongoing relationship between the $1.9 trillion bank and the tech provider, the Barclays spokesperson said. The pair launched the financing solution Instalments by Barclays in December 2021.
Ross Jones, global head of corporate payments at Barclays, will speak at Bank Automation Summit Europe 2024 on Tuesday, Oct. 8 at 3 p.m. GMT+1. The summit takes place at the Hilton Frankfurt in Frankfurt, Germany. Learn more and register here for Bank Automation Summit Europe 2024.
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NEW YORK — BNY is developing a cross-border instant payments solution to keep up with demand for real-time payments. There are 90 real-time payments networks across the globe, Carl Slabicki, co-head of global payments at BNY Treasury Services, said today at a roundtable hosted by the $30 billion financial institution. And 80% percent of […]
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The banking relationship has expanded outside of the walls of a branch and now the user experience is often formed through digital channels, including mobile apps.
Reward and loyalty solutions provider Prizeout, like many fintechs, is working to fill digital gaps at financial institutions to enhance customer experience, Matt Denham, co-founder and chief product officer at Prizeout, tells Bank Automation News on this episode of “The Buzz” podcast.
“Where tech providers come in, big or small, is when there’s a service or customer product that needs to be delivered that‘s not currently [available],” Denham says.
To improve the digital and mobile banking experience, Prizeout helps FIs push app engagement, by providing personal insights to consumers based on spending habits or by offering instant cash back where they commonly shop, for instance, Denham says.
Prizeout credit union clients include Alloya Corporate Federal Credit Union and Michigan State University Federal Credit Union.
Listen as Denham discusses how fintechs can boost digital engagement on FI platforms.
Early-bird registration is now available for the inaugural Bank Automation Summit Europe in Frankfurt, Germany, on Oct. 7-8! Discover the latest advancements in AI and automation in banking. Register here and apply to speak here.
The following is a transcript generated by AI technology that has been lightly edited but still contains errors.
Whitney McDonald 10:49:37
Hello and welcome to The Buzz a bank automation news podcast. My name is Wendy MacDonald, and I’m the editor of bank automation News. Today is August 12, 2024 joining me from FinTech prize out is co founder and chief product officer Matt Denham. He is here to discuss how fintechs work to fill the customer experience gaps that are common at most financial institutions, especially as FIS, invest in their digital platforms, and consumers demand digital and mobile experiences. Thanks for joining us, Matt,Matt Denham 10:50:04
great. Yeah. So it’s great to be with you, Whitney. So my name is Matt Denham. I’m co founder and chief product officer at prize out price out to FinTech partner to banks and credit unions that provide rewards and loyalty solutions to their customers and members. So our goal is to provide a whole ecosystem of ways to support members and support customers getting more value for their money, whether that’s through their everyday shopping or through their rewards programs with their chosen financial institution, yeah, and we deliver that through a product called Cash Back plus that we deliver to multiple financial institutions across the country. Well, we
Whitney McDonald 10:50:50
can get into the technology a little bit in a second, and I do want to hear a little bit more about cash back plus, but first, let’s kind of take it back a little bit and talk about just, kind of where we are today in the digital landscape. There’s changes in demand, what customers need, how to boost customer loyalty, a need for tech providers within the space, you’re seeing, of course, a huge uptick in the partnership environment between bank and fintechs. Why don’t you tell us a little bit about that partnership dynamic, what customers are looking for, and how a solution like prize out fits into the mix.
Matt Denham 10:51:26
Yeah, it’s really interesting, because I think historically, you’ve seen relationships be created in the branch when a customer member walks into the branch and starts to get to know the person that’s going to help them with their help them with their banking. And historically, you’ve seen a bank or a credit union be the place where you send money, you keep your money, you take out a loan, you pay for things. What we’re starting to see in this generation, it’ll certainly go forward from there, is those services don’t sort of meet the current needs of customers in today’s day and age where everything’s done by app. It’s more about how efficiently, how quickly, and how great is the customer service. When I do that, what we’re starting to see is that banks and traditional credit unions can’t necessarily deliver on that in a digital world. So it’s about, how do you create that relationship and that service in a digital world? And I think, much like any industry, even if we step outside financial technology, where tech providers come in, big or small, is when there’s a customer service or a customer product that needs to be delivered that’s not currently being there, finding a gap in the market and meeting customer expectations. Yes,
Whitney McDonald 10:52:43
as you, I’m sure, are paying close attention to, we’re in the midst of earnings right now. And one of the things that keeps keeps coming up over and over again at many of the institutions, if not all, is that investment in digital capabilities, mobile apps, digital usership and mobile usership is all just soaring. That’s what consumers want. So maybe we can talk a little bit about how technology really has changed the game for how consumers really use and look at their financial institutions. It’s really more of like a day to day tool. Maybe talk a little bit about how the how technology has allowed for that. Of course, we’re all on our phones all the time. You can easily access your accounts. You can look to it for different insights. Maybe walk us through some of the ways that the Tech has changed the landscape and the game.
Speaker 1 10:53:32
Yeah. I mean, I think the baseline technology of having a phone in your hands started all this, right? It started the ability for you to not have to use one company for your financial services, but you can use 10, right? And I think a beautiful example of this is the Buy Now pay later industry. Buy now pay later has been created from what used to be layaway, and I said, Hey, what does a customer actually want when they’re purchasing something they want the ability to pay for this over time, not necessarily on a credit card, but when they’re actually shopping. What technology has allowed us to do today is embed that into a checkout experience and actually allow you to pay with that brand within that flow, as opposed to needing to go and say, Hey, go to your bank and say, Can I have a personal loan on this? Can I take out money? What’s my credit score, etc. That’s one interesting example where, either through an app or through a shopping process, technology allowed us to embed financial instruments in there with that having to. Go to your like historic financial institutions. We’re sort of seeing that across the board, from payments to loans to transferring money to spending. It’s attacking, sort of all of those financial services that were historically done from banks.
Whitney McDonald 10:54:51
Sometimes it’s a little too easy to make some of those online payments. Right?
Speaker 1 10:54:58
Absolutely, it’s, it’s kind of interesting when you when you’re in a checkout flow, and you click on a button and all of a sudden you have three steps down, you’re like, What? What am I doing here? It’s so interesting because brand plays such a big, like, such a big role in that whether you’re clicking Apple Pay or you’re clicking after pay, these are brands that have been created, which we haven’t really seen brands in the banking space before. Outside of your banking brands, your trusted brands, it allows them to leverage, like their brand recognition, to actually win your payments
Whitney McDonald 10:55:37
now, when it comes to really looking at financial institutions and even tech providers as a tool, something that you can use day to day for something different than just checking your account balance, how does prize out fit into that, that role, and What role is probably playing in that, that you can access different insights, or kind of be more in the day to day lives of its users.
Speaker 1 10:56:05
Yeah, we actually, we think about that in two ways. We think about that in the first ways, how do you encourage engagement with consumers through an app. I think we I spoke about earlier, that a lot of the engagement between a financial institution and their consumers was done in person, through branches and potentially on the phone. What we’re looking to deliver to our customers and members is a way for that engagement to happen digitally. That’s by providing insights to the end consumer to help them with their financial sort of, their financial welfare. So that’s the first thing we like to do is, how do we actually want? How do we allow a person who wants to be smart about their finances to come in and engage, as opposed to, I think what you see with a lot of products that probably don’t go the right way. They’re trying to force someone to come to them. Well, what we’re seeing in today’s day and age is, if you provide great content and if you provide great solutions to people, they will come. So that’s our first thing, is understanding, hey, there’s so much information that your financial institution has that can help you with your financial life, how do we best provide insights into that for the consumer, so they can make informed decisions and still make the decision that they would like based upon their sort of financial landscape, because it’s different for everyone, but just so surface that information, and then the second part of that is provide them ways once they’ve sort of decided what they wanted to do there to take advantage of it. So we have a product that allows them to take advantage of offers when they’re shopping, where they could potentially get better offers of cash back, or they could take advantage of earning cash back in different ways, by taking actions that suit their financial ecosystem based upon insights that we’ve sort of provided to them. So it’s all about an ecosystem that allows consumers to take advantage of their financial sort of person and set up the plan the way that they would like to set it up.
Whitney McDonald 10:58:04
Now maybe we could take that a step further and talk through the tech behind that. How do you connect with financial institutions to grab those insights and make sure that you are giving whether it’s helping make a decision, or you should really be tapping these rewards of these places. How do you how do you tap into those insights? Where do you pull the data from?
Speaker 1 10:58:27
Yeah, I think you can sort of think about it like technology connections with financial institutions in three ways. Sort of one is the front end integration, which is what you show to a user, so actually connecting to be able to provide them the great experience. But as we’re seeing with sort of the way technology is going today, it’s not only about delivering a front end experience. It’s about delivering something that’s personalized and based on data. So the second connection is connecting to the bank itself to understand consumers and provide them things that are tailored to them. And probably the third, and probably the more standard one, is connecting to spend based information, just like you expect a plaid would. Or you can get that directly from a credit card provider. You can get that directly from the financial intrusion themselves. But it’s about, how do you as a FinTech partner with a financial institution to take all that information and provide it to their customer in a way that they potentially couldn’t do on their own, to sort of help engagement and help the sort of consumers life so. Now
Whitney McDonald 10:59:36
to give us a little bit more insight, use the word insight there um, into how prize out really benefits a consumer. Maybe you could walk us through an example or use case of how prize out has kind of changed the user experience with financial institutions.
Speaker 1 10:59:53
Yeah. So one thing that prize out does is we partner with brands to provide great offers to customers when they’re shopping. So one of the easiest ways that we help, and sort of a core way that we help a consumer in their life, is understanding if they’re shopping a lot in a certain category or a certain brand, and providing them a great way to earn cash back on that sort of above and beyond what you would see on a credit card program or a debit card program. So actually taking someone shopping, helping them with a budgeting tool, and actually giving them ways to earn cash back on spending that they may already be doing or things they’re looking to do in the future, what we’ve seen a lot of is, especially now we’re in summer holiday period, is people taking advantage of great offers, right? The Carnival cruises matched with a with Delta, right? Or an Airbnb program with JetBlue and allowing people to say, Hey, I’m actually looking to do this. I know I want to do it in three months time. Not only, how do I prepare for that, but then, how do I make even my money go even further when I’m looking to take my kids on a vacation?
Whitney McDonald 11:00:57
Yeah, yeah, that’s, I think, especially the key is tapping into the spending that you’re already doing. Tapping into those insights, it really creates a personalized experience. And then, of course, right now, when when data is key, you’re collecting all of this data anyway, and being able to say, oh, so and so shops here all the time. There’s a cash back program for that, so you’re not necessarily having to change spending habits, but you are able to tap into rewards that you didn’t know you were leaving on the table.
Speaker 1 11:01:26
Absolutely, it’s how do you how do you make a customer’s experience great, and how do you give them more value for that? That’s sort of our our sort of motto. And maybe someone didn’t know if they wanted to go a Norwegian or carnival. Could Carnival cruises, and help them get through that decision. And then maybe a part of that decision is the price point. Maybe there’s brand loyalists that just want to go with carnival and therefore we help them get some more money back on that. Or maybe they’re not as brand loyal, and they’re just looking for the end outcome.
Whitney McDonald 11:01:53
Yeah, no, I think that’s great. Thanks so much for walking through that example now with what you do and what you what you focus on in the space, what are you really paying attention to, focusing right on right now, themes, trends. What’s interesting to you in the payments world right now?
Speaker 1 11:02:11
Yeah, there’s some. I mean, there’s, there’s so many interesting things happening right now. And it’s it’s so interesting to see where the tech companies, both fintechs and sort of established all the way up to faang companies, are sort of challenging, right? And I think one of the interesting ones is the point of sale. It’s all about the payment. What we’ve sort of seen over the last five to 10 years is that the way banks are really continuing to engage their members is through their rewards programs, right? That is sort of the place that someone’s really interested in. And I think in banking, there’s a saying that’s like, banking isn’t fun, banking isn’t exciting. So how do you take something that is exciting for a customer or member and provide that to them? And that’s what everyone sees, is their rewards programs or their credit card programs. And well, what we’re all starting to see now is how, how some of the bigger tech companies are starting to come in and try and win that payment. Don’t remember the last time you were buying something online, but there’s Apple Pay, there’s Amazon pay, there’s shop pay, there’s every Google Pay. They’re all trying to get to the front of the line to own that payment experience and then be able to expand from there. So that’s that’s something that we’re watching closely, and we’re playing a part of to help our financial institutions also be able to stay top of wallet there and not use lose that customer to a to an Apple Pay. I think, I think it’s been really interesting, over the last three or four years, the adoption of Apple Pay, and now people are saying they pay with Apple Pay. They’re not paying with their financial institution. So we’re paying a lot of we’re paying a lot of attention to that area, and to make sure that we can help our financial institutions stay top of wallet there.
Whitney McDonald 11:03:55
Now with that in mind, and I’m sure that that kind of sparks innovation too within prize out, maybe you could share a little bit about what you’re what you’re working on now, or maybe through the end of the year, any projects, or even recent projects that you’ve been working
Speaker 1 11:04:08
on. Yeah, absolutely. So I think one of the benefits we have as a as the company, is a lot of those relationships that we have with merchants already. So how do we actually integrate to be able to provide offers to our consumers when they’re actually shopping, and actually give them back, a little like the Norwegian example that I had those offers in line when they’re shopping and. And allow them and allow that to be the reason why they choose to to pay with our financial institution that we partner with is because of the great deal they’re getting and the great experience. I think, I think everyone knows that Apple pays created one of the best experiences in the market. You don’t need to put in your information. You can just one click pay. So it’s, how do you take that? How do you build a great experience, but how do you also build in the next lever, which gives the optionality to the customer of what they want to pay with that great experience? But how do they actually get more back, continuing to sort of own the top of wallet for our partners? I think, I think there’s a couple of other interesting pieces going on in the market right now. I think that there’s a lot of banks that are starting to work out what is their frontier with their customers. So if they are starting to lose payments to Apple Pay and the Colin is sort of taking over some of their like historic spend that they would get. Where do they continue to own that relationship? And we’ve seen some really interesting pieces there, sort of particularly in the travel space. So I think getting back to what I mentioned before, where banking isn’t necessarily engaging in a siding you’re seeing so many of the standard banks or credit card providers coming out and looking to engage and win the travel space, whether that’s Chase opening lounges, which historically only Amex had really had cap ones getting into that space, all of the providers almost are now trying to get you to book your travel through them, through incentives and as well as sort of the standard pieces that you’d expect around insurance and whatnot, they’re really looking to double down on that travel and experience place where now you can book through us, you can have your best experience, not just when you’re booking or when You’re paying, but actually throughout your travel, through going to go into the lounges, and also, if something goes wrong, there’s insurance, there’s there’s things that help you out. There’s been a large investment from the sort of, at least the big banks there, all the way to some of the other sort of challenge built has come out and made a big play in in travel. So that’s an interesting thing that we’re keeping an eye on, is that financial institutions are now looking to work out how they can augment the engagement with their customers from just like pure financial services to almost like adjacent industries.
Whitney McDonald 11:07:15
You’ve been listening to the buzz a bank automation news podcast, please follow us on LinkedIn, and as a reminder, you can rate this podcast on your platform of choice. Thank you for your time, and be sure to visit us at Bank automation news.com for more automation news. You.
Transcribed by https://otter.ai
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