Tag: #Banking

One in five people in Ireland never carry any cash

One in five people in Ireland never carry any cash and of those that do, almost one-third (30pc) carry €20 or less. This is according to a new survey[1] by Royal London Ireland, one of the leading life insurance and pensions companies in Ireland.  Furthermore, men are more likely than women to never carry cash (24pc of men versus 16pc of women). Of those who do carry cash however, men tend to carry higher amounts on them than women.

The Royal London Ireland survey, which examined the use of cash by people in Ireland, found that the top five reasons people needed cash regularly was to pay for small daily grocery items such as milk and bread (58pc), to pay service providers who prefer cash (38pc), to buy lunch or take-away coffee or tea (34pc), to give tips (32pc), and to donate to charity (27pc).

Other highlights from the survey include:

  • Almost one in five people (19pc) carry more than €100 regularly.
  • People in Leinster appear to be the least likely to carry cash. One in four people in Dublin (25pc), and almost a third of people in the rest of Leinster (28pc) say they never carry cash. By contrast, only one in ten (10pc) of those living in Ulster and Connacht never carry cash.
  • 50pc of people aged 18-24 said they never carry cash, while just 10pc of people aged 55 or older said the same.

Commenting on the survey findings, Barry McCutcheon, Proposition Lead at Royal London Ireland said:

 

“We’ve seen an increase in cashless payments in Ireland in recent years[2], so the numbers of people who carry very little cash, or any at all, is unsurprising. Despite the increasingly digital nature of Irish banking and payment systems in recent years, we can see from the survey findings that cash still plays an important role in Ireland’s society and economy, with many people relying on it when going about their day-to-day routines. This balances with a European Central Bank survey in 2022 which showed that the majority (54pc) of Irish consumers’ in-store transactions were in cash[3].

 Our survey gives weight to the assertion that the younger you are, the less likely you are to carry cash. Findings from the survey revealed that half (50pc) of those aged between 18 and 24 say they never carry cash compared to only one in ten (10pc) people aged 55 or over”.

The Need for Cash

Mr McCutcheon observed,

“It’s clear that there is a need for cash, with 80pc of people surveyed carrying some amount daily. The survey sheds some light on just why people carry cash and we found that the top three reasons were: to pay for small daily grocery items such as milk or bread (58pc), to pay service providers who prefer cash (38pc), and to buy take-away lunch, coffee or teas (34pc). It would appear that pocket money in the form of cash hasn’t gone out of fashion either – more than a quarter of people (27pc) between the ages of 35 and 54, the age cohort likely to have children, carry cash for this reason”.

Mr McCutcheon concluded:

“In the Department of Finance’s published Retail Banking Review[4], a recommendation was made for legislation to be introduced to safeguard the reasonable access to cash. It is clear from our research that for many, there are times when only cash will do.

Whether you are someone who prefers using cash or not, tracking and managing your finances is important when it comes planning your financial future.  If you are looking for advice about financial planning, a Financial Broker can help you assess your current situation and put a personalised plan in place that meets your individual needs and circumstances.”

[1] Of 1,000 Irish adults nationwide carried out by IReach

[2] As per the latest Payment Monitors Report from the Banking and Payments Federation of Ireland, which was published on 29/6/2023, and release in relation to same.

[3] As per ECB study on the Payment Attitudes of Consumers in the Euro Area, published in December 2022.

[4] See Retail Banking Review, published November 2022..

The Importance of Security in Banking and Financial Software Development

One of the key things customers want while working with banks is security. In this article, we’ll look at the reasons why this aspect is so important for modern financial institutions. With the growing threat of cybersecurity threats in the financial sector, one should pay more attention to guaranteeing the safety of the clients. If you’re interested in reading something beyond this article, here’s an example of a company that offers a service with maximal security: https://keenethics.com/services-financial-software-development

The Role of Security in Banking and Financial Software Development

Security plays a critical role in banking and financial software development. It’s essential to protect sensitive financial data and prevent cyberattacks that could lead to financial losses, reputational damage, and customer distrust. Secure software ensures that customer information, such as account details and transactions, remains confidential and safeguarded from unauthorized access. The need for secure software is heightened in the banking and financial sector due to the valuable and sensitive nature of the data involved. Hackers and cybercriminals are constantly targeting financial institutions, making security a top priority. 

Secure software development involves implementing robust security measures throughout the software development lifecycle. This includes secure coding practices, vulnerability testing, and regular security audits. Encryption techniques, authentication mechanisms, and access controls are utilized to protect data integrity and ensure authorized access. In addition to protecting sensitive financial data, secure software also helps institutions comply with regulatory requirements such as data protection and privacy laws. By prioritizing security in banking and financial software development, institutions can mitigate risks, maintain customer trust, and establish a strong foundation for a resilient and secure financial ecosystem.

Security Threats in Banking and Financial Software Development

Common security threats faced by banking and financial software development companies include:

1) Phishing and Social Engineering: Attackers deceive individuals into revealing sensitive information by posing as trustworthy entities. This can lead to unauthorized access to financial accounts, identity theft, and financial fraud. Financial institutions and their customers may suffer financial losses and damage to their reputations.

2) Malware and Ransomware Attacks: Malicious software can infiltrate banking systems, compromising data integrity and confidentiality. Ransomware attacks can encrypt valuable data, demanding a ransom for its release. This disrupts operations, causes financial losses, and can erode customer trust if personal and financial information is compromised.

3) Insider Threats: Insider threats involve malicious actions or unintentional mistakes made by individuals with authorized access to systems or data. This includes employees, contractors, or business partners. Insider threats can result in data breaches, financial fraud, and reputational damage to financial institutions.

These threats can have severe impacts on financial institutions and their customers. Financial losses, compromised customer data, regulatory penalties, and legal consequences are common outcomes. Customer trust can be eroded, leading to a loss of business and reputation damage. Additionally, regulatory compliance may be compromised, exposing institutions to legal and financial risks. It is essential for banking and financial software development companies to implement robust security measures to mitigate these threats and protect the integrity of their systems and the trust of their customers.

Best Practices for Ensuring Security in Banking and Financial Software Development

Best practices for ensuring security in banking and financial software development include:

1) Implementing strong authentication and access control measures: This involves utilizing multi-factor authentication, strict password policies, and role-based access controls to ensure only authorized individuals can access sensitive data and perform critical functions.

2) Using encryption to protect data in transit and at rest: Encryption techniques should be employed to encrypt data during transmission and while stored in databases or other storage systems, safeguarding it from unauthorized access and mitigating the risk of data breaches.

3) Conducting regular security audits and penetration testing: Regular assessments of software systems and infrastructure help identify vulnerabilities and weaknesses. Penetration testing simulates real-world attacks to uncover potential security gaps that could be exploited by attackers.

4) Establishing incident response plans and procedures: Having a well-defined incident response plan in place ensures a timely and coordinated response to security incidents. This includes steps for identifying, containing, and resolving security breaches, as well as communication protocols to keep stakeholders informed.

Final Thoughts

To summarize, the importance of security in banking and financial software development is high. Without it, you risk undermining the customers and encountering massive reputation losses. The more you invest in security, the better the chances your business will be able to stay stable. If you want to work with a company that knows how to deliver financial security, we have an interesting option. Meet Keenethics: this company has multiple years of experience when it comes to developing financial products. Their specialists can consult you on the key security features and guide you toward high-quality solutions.

Bord Gáis Energy announces new partnership with Irish owned banking app Money Jar

As Ireland’s leading home energy management and services provider, Bord Gáis Energy, has announced a new partnership with Irish owned fintech company Money Jar. Launched in 2019, Money Jar is a safe, secure, and simple-to-use 100% Irish owned online banking platform. It provides users with a digital current account and Irish IBAN (International Bank Account Number) for all their day-to-day banking requirements.

This new partnership will provide Money Jar customers with the opportunity to avail of exclusive Green offers to support home energy management. These offers are available to both new and existing Bord Gáis Energy customers, via the Money Jar app.

The app is available to everyone but also helps to support people moving to Ireland from overseas by setting up banking services from their mobile phone. Money Jar enables users to send and receive money from other accounts, make mobile and online payments, and helps them to improve their money management skills.

Speaking on the partnership, Steven Mordue, Consumer Segment Manager at Bord Gáis Energy said: ‘’We’re delighted to partner with such a successful Irish fintech start-up as Money Jar to provide users with exclusive offers and to support home energy management. At Bord Gáis Energy, we’re on a journey to becoming a net zero business by 2045 and as part of this process we want to help our customers transition to a lower carbon future too. To avail of one of these exclusive offers, simply sign up through the Money Jar app.’’

Paul Kinch, Chief Commercial Officer of Money Jar, said, ‘’At Money Jar, our mission is to help our account holders manage their money better. Partnering with Bord Gáis Energy is another way we can help users manage their energy costs, by improving their energy efficiency and empowering them to move towards net zero. I would like to thank Bord Gáis Energy for their support and recognition that transitioning to a lower carbon future should be for everyone’’.

Money Jar is available to download on the App Store or on Google Play.

9 in 10 people want the choice to pay in cash or card

The vast majority of Irish people (95pc) believe that everyone should have the choice to pay in either cash or card for goods and services.

Findings, from the latest Taxback.com Taxpayer Sentiment Survey, which polled over 1200 taxpayers nationwide highlight widespread support across the board for new Government legislation proposed to protect people’s rights to access cash, which would ultimately also safeguard their right to pay in cash.

The “Reasonable Access to Cash” Bill has been tabled as Ireland’s continued moves towards a cashless society. The new law, if introduced, was drafted on foot of a recommendation in the Government’s recently published Retail Banking Review. That review also called for the development of a new National Payments Strategy, which would take into account advances in digital payments, and guide how future changes should be made around access to cash criteria and other issues. This strategy could see the laws around reasonable access to cash extended to other firms or sectors, thereby forcing shops, cafés and other outlets to accept cash payments, rather than to insist on card payment.

Headline findings from the Taxback.com Taxpayer Sentiment Survey reveal

  • Four in ten (40pc) people would support the proposed law as they would like the option to pay in cash and card.
  • One in five (18pc) would support such a law as they usually pay in cash.
  • One in ten (9pc) would do so as they believe elderly people will benefit.
  • Almost three in ten (28pc) would be in favour of the legislation as they believe the law would be useful, even though they themselves only pay by card.
  • Only one in twenty (5pc) wouldn’t support the planned legislation, stating that they believe it would be a backward step.

Commenting on the findings, Marian Ryan, consumer tax manager with Taxback.com said:

“The pandemic has accelerated the use of digital payments – as have the increased moves by the banks to curtail access to cash banking services. While many people have embraced card payments, Irish people are in almost full agreement that having the choice to pay in cash or card and the ability to access cash when it is needed should be a fundamental right. Otherwise, we risk ostracising people who, for whatever reason, don’t have there will be some people who simply will not be able to buy items or services which they badly need – simply because they don’t have card or cash on them. Some people struggle with online and card payments and find it incredibly difficult to manage their finances as a result of the increased moves towards digital banking and payments. This is simply unfair and borders on ostracism.”

One of the primary aims of the Bill is to force banks offer customers “reasonable access to cash” which could include having a minimum number of cash points per town or region.

Ms. Ryan went on to say,

“In recent years, banks have restricted and withdrawn many over-the-counter cash services in their branches – making it increasingly difficult for customers to manage their day-to-day banking. Many bank customers have had to travel lengthy distances to cash cheques or withdraw cash as a result – particularly in rural areas.”

Online mobile and banking payments hit record highs in Ireland, with nearly €4.8bn worth of contactless payments made in the third quarter of 2022.

Digital banking has not overtaken the demand for a more personal experience: 6 in 10 want face-to-face banking

Irish people want to conduct their main banking transactions with a human being and not a computer. This is the finding of a new survey from the Credit Union Development Association, which found that more than 6 in 10 people still opt for face-to-face interactions when opening a current account or accessing car finance, and 8 in 10 want to take out the mortgage with the help of either a lender employee or a broker (See Appendix).

The credit union representatives say indicates just how important face-to-face interaction still is with the public when it comes to banking.

The research, which surveyed 1,000 people nationwide found:

  • More than two thirds (65pc) of those who opened a current account over the last five years did so with in-person support from branch staff.
  • 54pc of those who opened savings accounts preferred to do so with in-person support.
  • Six in 10 (63pc) used face-to-face help when taking out car finance.
  • The vast majority (87pc) of those who applied for a mortgage in the last five years did so either in branch – or in person with a financial advisor.

Speaking of the findings, Kevin Johnson, CEO of CUDA, said:

“The preference for face-to-face interaction doesn’t surprise us and supports the decision of credit unions to retain this key service while rolling out their new digital channels for members. Choice in how to interact with a financial institution is imperative for consumers. It’s not ok that some banks appear to be trying to force their customers to fit into their lower-cost branch models, in an effort to boost profits for shareholders but to the detriment of customer service.

“Borrowing for a major purchase such as a car or home is a big deal for most people, so it is not surprising that so many people need the reassurance of the personal touch when taking out a personal loan or a mortgage. People have financial needs and financial challenges, some straightforward and some requiring quite specific advice, so they should be able to decide between going online and walking into their local branch and getting face-to-face help if they need it.”

Where we bank is changing

The CUDA survey revealed that more than 7 in 10 people still bank with the countries three main banks.

But Mr Johnson contends that the tide is turning against the pillar banks and,

“There is a definite shift in mindset in recent years and people are becoming increasingly open to the offerings of other providers. This change in behaviour is only going to gather more pace in the next few years and we believe the market will really open up and the Irish banking landscape will look completely different in five years’ time. Credit unions for their part are making a real play to grow their role by offering people the length and breadth of the country exactly what they need – efficient and effective banking solutions, with digital, local and in-person support”.

Further highlights from the CUDA consumer survey include:

  • One in 20 (5pc) said they used a fintech such as Revolut, N26 or Bunq for most of their banking needs.
  • Those aged between 25 and 34 are more likely than other age cohorts to use a fintech for most of their banking needs – 13pc vs the national average of 5pc
  • One in 25 (4pc) use credit unions for the majority of their banking – twice as much as the number who cited An Post.
  • Men are more likely to use a credit union or a fintech for their banking needs – though the numbers are still relatively small.

Mr. Johnson concluded

“ As co-operative societies, owned by and managed in the interest of their members, credit unions  understand the importance of setting and achieving service levels at the standard expected by the members.  They are delivering digital services with a personal touch, only in this way, they can be certain that they will achieve high levels of customer experience satisfaction, retain business and also optimise the use of valuable resources. With this in mind, credit unions continue to invest in emerging technologies, as these give rise to new ways of conducting financial activities, while also continuing to invest in their people. Balancing these investments enables them offer both digital and face-to-face options to both borrowers and savers.”

Digital money management service Mi 365 rolled out to Bank of Ireland customers

Bank of Ireland has introduced a new digital money management service – Money Insights 365 (Mi 365) – for all personal customers. Available on the Bank of Ireland mobile app, Mi 365 helps customers take more control of their money by providing them with over 40 insights into their spending.

Mi 365 allows Bank of Ireland personal customers to:

  • Access personalised insights on their spending, including average monthly spend with particular retailers
  • Easily track money in and out, including unexpected payments or refunds
  • Review cash flow spend data on their account for up to six months
  • Spot changes in spending they might need to keep an eye on, for example on groceries, clothing or entertainment

Mi 365 will also show where customers may have duplicate transactions leaving their account – such as similar online subscriptions – highlighting where a saving could be made. The introduction of Mi 365 is one of a range of measures the Bank has taken to help customers understand and manage day-to-day spending, as part of the Bank’s commitment to support and enhance customer financial wellbeing.

Susan Russell, Director of Retail Ireland, Bank of Ireland said: “Research shows that almost 70% of adults need help with tracking spending. Mi 365 responds to this by providing insights, alerts and interventions so that we can manage our money better.

 “It can be hard to find the time to track your spending day-in day-out. Mi 365 does a lot of the heavy lifting by presenting customers with a range of individual spending insights. The service is a core part of our mobile banking app which has more than 800,000 log-ins every day, making it the most popular way for our customers to manage their money. 

 “This is another practical addition to the financial wellbeing supports we offer over 2 million customers in Ireland. We look forward to continuing to expand these supports into the future.”

Mi 365 Insights appears automatically under the customer account information on the home page of the Bank of Ireland app.  A carousel is presented with the three latest insights and an insight inbox retains all previously shown insights for 35 days.  Personal customers can view insights drawn from their current account, joint current account, and credit card account activity.

For information on Bank of Ireland’s financial wellbeing resources: Bank of Ireland Financial Wellbeing

Revolut launches Revolut <18 - a rebrand of its service for 6-17 year olds

Revolut, the global financial super app with more than 20 million customers worldwide, has rebranded its service for 6 – 17 year olds. ‘Revolut <18’ is an account for young people which is connected to their parent/guardian’s Revolut account, helping young people feel positive and empowered about money, giving them a financial head-start in life.

Previously named ‘Revolut Junior’, Revolut <18 will now offer its young customers the chance to unleash their creativity by personalising their own spending card by adding a drawing, text and even emojis, making it as unique as they are.

Using end-to-end security and in-app card controls, young Revolut customers can safely track their activity in-app and get instant spending alerts to stick to budget and build healthy money habits, as well as setting savings goals. Additionally, an instant notification is sent to the parent or guardian’s phone when the <18 card is used.

Parents and guardians can set a regular ‘pay day’ for pocket money, but can also set challenges for their young person to complete in order to receive their earnings. For those Friday evenings at the youth club, a brand new feature will let young customers tell their friends to “Revolut me!” to send and receive money for free to other users on Revolut <18.

Tara Massoudi, Revolut General Manager of Premium Products, said, “We’re delighted to introduce Revolut <18 to new and existing customers. The new Revolut <18 yellow design is energised, positive and fresh, appealing to a variety of under 18s. 

“We listened to feedback from our customers who said they wanted our under 18s product to be customisable and to look and feel more personal to them. Therefore we wanted to create a more grown up feel to the card and app as Revolut <18 is an account that can grow with you.”

With over 1.6 million customers globally, Revolut Junior had over 400,000 customers in Ireland alone, all of whom are now Revolut <18 customers.

The Revolut <18 card is free, and a parent or guardian who is a Revolut personal account holder can create a <18 account for their child in their Revolut app. If the young person has a mobile device, they can download the Revolut <18 app by scanning a QR code displayed on the parent or guardian’s phone. However, the card will still work even if they don’t have a mobile. Parents/Guardians can create a maximum of five <18 accounts, depending on their Revolut plan.

Additionally, teens can sign up for themselves to create a parent account, with parent approval. If the teen is under the age of data consent (below 16 in IE) then a parent will need to create an account for them from their own Revolut app

New research reveals Ireland is leading the way in digital banking

Circumstances over the past two years have accelerated the drive towards digital services across all industries, from financial services to the public sector. But despite a greater number of online interactions, Irish consumers are still not sold on the benefits of digital IDs, according to newly published research of over 12,000 consumers, including 1,000 in Ireland, from Okta and Statista.

Almost three-quarters (72%) of those in Ireland feel their data wouldn’t be protected in a digital ID, more so than their British counterparts (58%), while nearly half (48%) would prefer a physical ID to a digital one.

However, digital scepticism is not rife in all areas. More than two-fifths (42%)of Irish citizens trust their government’s digital services, such as government websites and log-in portals for public sector services, far more than in Germany (32%), the UK (33%) and France (37%). Ireland is also most supportive of government-led vaccine passport technology in comparison to other countries, with two-thirds (66%) in favour of this, while the UK (51%) is one of the least supportive nations.

When it comes to data regulations, Irish citizens are more supportive of GDPR (69%), the EU’s data protection and privacy law, than any country surveyed. Four-fifths (79%) say that this is because they feel that governments, states and institutions should be responsible for data privacy initiatives.

“Despite confusion over the benefits of digital IDs, the vast majority of Irish consumers feel that the state should be responsible for data initiatives, which highlights a big disconnect between the two,” comments Ian Lowe, Head of Industry Solutions EMEA at Okta. “Clearly, if digital IDs are to be rolled out more broadly across Ireland, more work needs to be done to educate and communicate the benefits this could provide – from convenience to ease of use, to better security through a centralised, standardised and compliant approach. With data the largest concern around this, technology like customer identity and access management (CIAM) allows individuals to control what organisations know about them and how their data is used, whilst ensuring it is kept in one safe, secure place.”

Pioneering digital banking

Irish consumers are leading the way when it comes to digital banking, with two in five (40%) currently holding an account with a digital challenger bank, such as Monzo, Starling or Revolut, rising to half (50%) of those aged 18-29. This is more than double of most other European countries, including the Netherlands (6%), Spain (13%) and the UK (17%).

Many prefer the ease of banking or making financial transactions online (54%), and the convenience of not having to visit a physical bank branch (53%).

Three-quarters (75%) also admit to interacting with financial services and banks more digitally than physically over the past year – some (42%) because the pandemic made it inevitable, and others (33%) because they found it more convenient. As a result, a third (32%) are more trusting of digital financial services.

“Ireland shows the biggest uptake of digital banking, but interestingly, some of the highest hesitance when it comes to the adoption of digital IDs,” adds Lowe. “It’s evident that Irish citizens see the benefits of digital financial services; they regard it as easier and more convenient. By following the examples set by challenger banks, and establishing digital IDs in a similar manner, Ireland could emerge as Europe’s leader in the rollout of digital services. But in order to make this successful, trust is imperative. Governments and organisations have a key role to play in demonstrating the privacy and safety of these initiatives in order to win over the trust of the public and pioneer the move towards digitisation.”

Learn more about the recently launched Okta Ireland and how Okta is growing in Dublin here.

Revolut tops 20 million retail customers on seventh anniversary

Revolut, the global financial super app, has surpassed 20 million retail customers worldwide, and is now processing over 250 million transactions a month. Both achievements come as Revolut celebrates its seventh anniversary.

Revolut is continuing to expand its global workforce, topping 5,000 employees globally. Over the past year, Revolut has opened several offices in locations such as New York, Tokyo, Madrid, Barcelona, Paris, Mexico City, Berlin, Budapest and Bucharest. Additionally, new offices in Mumbai and Bangalore are set to open later this year.

Launched in the UK in 2015, Revolut offers money transfer and exchange. Today, over 20 million of its retail customers around the world use dozens of innovative Revolut products including peer-to-peer payments, Saving Vaults, Junior, Stays, and Trading.

In the past twelve months, Revolut has launched a variety of new features including On Demand Pay in the UK, personalised Loans in Ireland, and was named as one of TIME100 Most Influential Companies. With services in 36 countries, the journey continues as Revolut looks to expand into new markets including India, Mexico and Brazil.

Helped by collaborations with influencers over the past year such as Liam Payne, Anthony Joshua, and Simon Wilson, Revolut’s total social media following has grown to over 1.4 million, and it has most recently launched a TikTok account.

Revolut’s top five countries by number of retail customers are:

  1. UK – Revolut’s home market and its biggest with 4.8m customers. The average age of our customers is 39, with 11% of customers being over 55 years old

  2. Romania – 2m customers. With 420,000 users in Bucharest, Romania’s capital city has the most Revolut users of any city in the EU, and second most globally after London. One in three Bucharest residents of working age has a Revolut account.

  3. Ireland – 1.9m customers. A third of the 5m population (and half of adults with a smartphone) use Revolut – and Revolut is used as a verb

  4. Poland – 1.7m customers. Following the launch of dedicated free accounts for Ukrainian refugees, Poland is home to over 50,000 refugee accounts (out of a total of over 170,000 in EU)

  5. France – 1.5m customers. Revolut recently launched local IBANs in France to offer fully compatible accounts in the French market

Nikolay Storonsky, Chief Executive Officer, commented: “Revolut reaching 20 million customers and 250 million transactions a month is another milestone we’re proud of.

“When we started Revolut seven years ago, we wanted to give people more control over their financial well-being through the use of our technology, offering a service that addresses all their financial needs in one place. We are still a young business, but our growth over the last few years shows the increasing demand for our products all over the world. 

“As important as this milestone is, we are still at the start of our journey and intend to keep pushing the boundaries of financial innovation to build the world’s first global financial superapp. This is just the beginning…”

Vlad Yatsenko, Co-founder and CTO, commented: “In just seven years, Revolut has grown exponentially. We are now more than 5,000 strong, with new and long-standing staff helping to deliver for our customers on a daily basis.

“Today’s announcement, as well as the company’s seventh anniversary, is one to savour and enjoy, but it is also evidence that there is still so much to achieve in this space. We remain focused on developing new and innovative products for our customers, and look forward to celebrating the next milestone in the near future.”