Latest global payments news, July 5, 2023

BBVA assembles a team to combat financial crime

BBVA has built a team of about 800 people to improve how the bank organizes risk management and prevention for fraud and other illegal activities. BBVA has set up technology hubs in Mexico and Spain, and plans to deploy staff in other markets in the bank's footprint. BBVA reports it has halted about 75% of fraud attacks against consumers over the past year, but is also bracing for more sophisticated forms of attack as crooks improve their ability to spot vulnerabilities. The bank will increase its use of artificial intelligence and behavioral analytics in an attempt to protect legitimate transactions while spotting fraud. BBVA is also anticipating shorter windows to spot false transactions as payment settlement speeds increase. —John Adams

Mizuho to use advanced AI

Mizuho plans to use Microsoft's OpenAI platform to speed the bank's digital strategy, add new payment types and extend development to more of the bank's staff. OpenAI, which is best known as the builder of ChatGPT, develops generative AI, which refers to a form of machine learning that produces original content. Financial institutions are still determining the best way to use generative AI, with early uses focusing on faster and more personalized customer service. Mizuho has not settled on specific uses, but is hoping the introduction of new AI will inspire staff to build new products. There has also been controversy around ChatGPT and similar tech, including questions over its accuracy, leading some banks to restrict its use. —John Adams

Caixa upgrades digital FX services

CaixaBank in September will offer virtual account services to clients that access FXNow, the bank's currency markets platform. The product set, called FXWallets, is currently in pilot. The bank contends the wallet and virtual accounts will address the trend toward digital cross-border commerce, where fintechs have been making headway. Firms such as Ripple, Wise and others have used blockchain technology and other methods over the past few years to reduce time and expense for international payments, enabling smaller merchants to sell items in more markets and pressuring correspondent banks. —John Adams

Australia forms an investment scam squad

Australia's Anti-Scam Center is coordinating a group of banks, telcos and government agencies to counter investment fraud, which the organization reports cost Australians more than $1 billion in 2022. The group will share and analyze data to halt scams early in the process, and will also coordinate efforts to remove fake investment schemes from the internet. The coalition will additionally publish information to help consumers avoid scams, and will engage with Australian bank regulators and law enforcement. —John Adams

Canada faces an open-banking learning curve

While Canada's real-time payments project faces delays, its development of open banking is also hitting obstacles, as many consumers do not understand the concept. Only 9% of Canadians have heard of open banking, according to a survey from the Financial Consumer Agency of Canada. Additionally, 62% of Canadians correctly said open banking enables their financial institutions to share their data with other companies, only 21% knew open banking does not yet exist in Canada, 44% knew open banking does not mean the government has access to all consumer financial information and 29% said they would use open banking once it was described to them. Open banking has advanced in other markets such as the U.S., where payment companies including Mastercard offer technology that enables the data sharing that underpins open banking. —John Adams

Mexico remittances hit record high on Mother’s Day celebrations

Mexico posted record remittances in May, fueled by a larger inflow of cash from abroad for celebrations around Mother's Day. Mexicans living abroad — mainly in the U.S. — sent home $5.69 billion in May, a 10.7% increase compared to the same period a year ago. The result exceeded the $5.43 billion median estimate of analysts surveyed by Bloomberg and the previous record high of $5.36 billion in October, according to central bank data published Monday. Historically, the total number of remittances in May tends to edge higher as households celebrate Mother's Day and more Mexicans living abroad send additional money back home for the occasion. —Leda Alvim, Bloomberg News