The new Verification of Payee (VOP) regulations by the European Banking Authority (EBA) aims to revolutionise fraud prevention and payment security across Europe. Inspired by the UK’s successful Confirmation of Payee (COP), it requires PSPs to verify payee details in real-time. Despite facing industry scepticism due to implementation complexities and costs, the long-term benefits promise enhanced security and consumer trust.  

The UK Finance Annual Fraud Report 2024 highlights both progress and ongoing challenges in combatting fraud. While efforts in customer education and bank fraud prevention have shown positive results, the rise in certain scam types underscores the need for innovative solutions like collaborative intelligence and inbound payment screening to further protect customers.

Payment modernisation has become a very important topic for banks over the last few years. For a long time, payment infrastructures in the UK, Europe and the US wasn’t a priority for investment. As long as the infrastructure was able to keep things ticking over, there seemed to be little reason to upgrade it.  

Explore how PSD3 will transform the fintech landscape in Europe. Learn about its impacts, strategic preparations necessary, and the opportunities it presents for fintech companies. 

In the ever-evolving landscape of banking technology intertwined with stringent regulatory frameworks, financial institutions, find themselves at a crossroads. The imperative to adopt a multicloud approach to managing payments and compliance is no longer just a strategic advantage but a necessary evolution.

Traditional payment gateways have often hindered innovation and acted as a constraint on payment modernization. A platform-based approach is seen as the true successor to these legacy systems and one that is helping banks in their goal to commercialize ‘value-added services’ and develop a more client centric service model.

It’s no secret that the banking landscape is being transformed by a digital shift that is seeing banks rethink their strategies and harness digital technology to improve their propositions. So what’s driving this shift?

Fraud is running rampant. The UK Government’s 2023 ‘Fraud Strategy’ report highlighted that fraud now accounts for over 40% of crime, yet receives less than 1% of police resources. More needs to be done to ensure that the consumer is protected. This is why, as per the Financial Services and Markets Bill, all PSPs will now be required to reimburse fraud victims from October 2024. In light of these upcoming changes, banks need to reassess how they manage liability associated with APP fraud and develop new methodologies in order to investigate and mitigate fraud more effectively. This Finextra impact study, produced in collaboration with Form3, gives banks a guide to tackling the new APP fraud liability landscape