Don't Let Twitter and Facebook Lead to Compliance Challenges

	Financial services firms face social media compliance challenges
	Marcia Savage, Site Editor Brokerages and other financial services firms turning to sites like Facebook and Twitter for marketing and customer outreach face a number of thorny social media compliance issues. Earlier this year, the Financial Industry Regulatory Authority (FINRA), which oversees U.S. securities firms, released Regulatory Notice 10-06.  The notice provides guidance on how FINRA rules governing public communications apply to use of social media sites by financial firms and their employees for business purposes. Read the full story

RTG Ventures Announces Joint Venture With International Financial Systems Ltd

NEW YORK, NY--(Marketwire - April 19, 2010) -  RTGV (OTCBB: RTGV): RTG Ventures has announced a joint venture (JV) with London-based International Financial Systems Limited (IFS) that will develop and roll out the iPayu mobile payments technology. The joint venture will officially launch on May 31^st and will combine the technical, banking and payments expertise of IFS with the sales, marketing and operations muscle of RTG Ventures.



IFS invented the iPayu platform and RTG Ventures had an existing agreement to license the technology to roll out and embed into its portfolio of products. This agreement sees both sides making a larger commitment to support continuing development of the intellectual property rights and enables the new joint venture to exploit opportunities faster.

Dominic Hawes-Fairley, President of RTG Ventures, said: "This is a really important development and will ensure that we can bring much more competitive and robust products to market. While we would have been able to operate just fine under the old licensing agreement, we were really keen to tie in the visionary technical and professional ability of the team at International Financial Systems and there's no better way of doing that than working on it as a joint project. This deal expands our capability and really adds weight to our ability to deliver.

"We have a clear road map for rolling out the technology and we've got a strategy that sees the JV earning revenues as fast as possible. We believe this technology has the power to change the way that many people exchange value and now that we're developing the solution in tandem with the inventors, we can ensure that our products are that much more compelling."

International Financial Systems was formed in 1979 and for more than two decades has specialized in providing software solutions, services and equipment to Wholesale Banks, Retail Banks, Internet Banks, Community Banks, Credit Unions and financial institutions of all types worldwide. With a customer list of over 100 banks ranging from the very largest to the very smallest, its modern banking software reflects the diversity of its customer base and is available in a range of configurations to suit the needs of customers of all sizes. IFS provide Core Banking, Internet banking, Mobile Phone Banking and Compliance solutions.

RTG Ventures is pleased to introduce the key executives at IFS who will be driving the iPayu JV.

Terry DayTerry has over 40 years of experience working exclusively in banking and banking applications software. Terry started his career as a computer programmer with Hill Samuel in 1967 and subsequently has worked both for banks and software houses providing solutions into this market place. Terry was heavily involved in the creation of the MBS package (sold by Arthur Andersen). Before forming International Financial Systems, Terry spent eight years working for a leading European bank where he was Head of International IT responsible for all branches outside of the home country.

Matthew DayMatthew has almost 20 years of knowledge and experience of selling and working in the financial sector having originally started his career as an FX trader in the City of London. Matthew has an in depth knowledge of the IFS product range with a particular emphasis on compliance. He also has as an unbridled enthusiasm for new customer delivery channels such as iPayu.

Hawes-Fairley concluded: "Joint ventures are a highly attractive way for RTG Ventures to address certain markets and technologies. They allow us to strike markets with maximum speed, with expert resource and with a predefined amount of capital investment. For months now, we've been talking about operating a lean and flexible model and this kind of agreement illustrates exactly how we're going to achieve that."

About RTG Ventures Inc.

RTG Ventures Inc., is an online media and electronic payment systems provider with an aggressive business model to grow unique and highly profitable consumer and business services both by organic growth of current assets and by acquisition. RTGV is targeting niche markets in the areas of Web-TV with embedded internet and mobile payment solutions. World-leading exclusive multicasting technology underpins RTGV's broadcast platforms making them very scalable for Video on Demand (VOD), linear broadcasting and live broadcasts. Two media platforms are being developed, while payment systems divisions will provide cutting-edge credit, debit, and e-cash payment services to e-commerce and mobile commerce merchants offering significant savings over current payment methods. Through embedding its payment solutions seamlessly into its online media broadcasting platforms will create a clear differentiation and advantage for our Company over other broadcast platforms, allowing its customer to monetize digital assets with no further integration of financial systems. Furthermore, through its retail sales channel, BMC, RTGV will be able to brand and productize its media offerings for sale through traditional retail outlets. RTGV's strategy for each initiative is to maximize ROI for all stakeholders. For RTGV's available Due Diligence, visit our website at:http://www.rtgventures.com/

RTG Ventures Announces Joint Venture With International Financial Systems Ltd

NEW YORK, NY--(Marketwire - April 19, 2010) -  RTGV (OTCBB: RTGV): RTG Ventures has announced a joint venture (JV) with London-based International Financial Systems Limited (IFS) that will develop and roll out the iPayu mobile payments technology. The joint venture will officially launch on May 31^st and will combine the technical, banking and payments expertise of IFS with the sales, marketing and operations muscle of RTG Ventures.



IFS invented the iPayu platform and RTG Ventures had an existing agreement to license the technology to roll out and embed into its portfolio of products. This agreement sees both sides making a larger commitment to support continuing development of the intellectual property rights and enables the new joint venture to exploit opportunities faster.

Dominic Hawes-Fairley, President of RTG Ventures, said: "This is a really important development and will ensure that we can bring much more competitive and robust products to market. While we would have been able to operate just fine under the old licensing agreement, we were really keen to tie in the visionary technical and professional ability of the team at International Financial Systems and there's no better way of doing that than working on it as a joint project. This deal expands our capability and really adds weight to our ability to deliver.

"We have a clear road map for rolling out the technology and we've got a strategy that sees the JV earning revenues as fast as possible. We believe this technology has the power to change the way that many people exchange value and now that we're developing the solution in tandem with the inventors, we can ensure that our products are that much more compelling."

International Financial Systems was formed in 1979 and for more than two decades has specialized in providing software solutions, services and equipment to Wholesale Banks, Retail Banks, Internet Banks, Community Banks, Credit Unions and financial institutions of all types worldwide. With a customer list of over 100 banks ranging from the very largest to the very smallest, its modern banking software reflects the diversity of its customer base and is available in a range of configurations to suit the needs of customers of all sizes. IFS provide Core Banking, Internet banking, Mobile Phone Banking and Compliance solutions.

RTG Ventures is pleased to introduce the key executives at IFS who will be driving the iPayu JV.

Terry DayTerry has over 40 years of experience working exclusively in banking and banking applications software. Terry started his career as a computer programmer with Hill Samuel in 1967 and subsequently has worked both for banks and software houses providing solutions into this market place. Terry was heavily involved in the creation of the MBS package (sold by Arthur Andersen). Before forming International Financial Systems, Terry spent eight years working for a leading European bank where he was Head of International IT responsible for all branches outside of the home country.

Matthew DayMatthew has almost 20 years of knowledge and experience of selling and working in the financial sector having originally started his career as an FX trader in the City of London. Matthew has an in depth knowledge of the IFS product range with a particular emphasis on compliance. He also has as an unbridled enthusiasm for new customer delivery channels such as iPayu.

Hawes-Fairley concluded: "Joint ventures are a highly attractive way for RTG Ventures to address certain markets and technologies. They allow us to strike markets with maximum speed, with expert resource and with a predefined amount of capital investment. For months now, we've been talking about operating a lean and flexible model and this kind of agreement illustrates exactly how we're going to achieve that."

About RTG Ventures Inc.

RTG Ventures Inc., is an online media and electronic payment systems provider with an aggressive business model to grow unique and highly profitable consumer and business services both by organic growth of current assets and by acquisition. RTGV is targeting niche markets in the areas of Web-TV with embedded internet and mobile payment solutions. World-leading exclusive multicasting technology underpins RTGV's broadcast platforms making them very scalable for Video on Demand (VOD), linear broadcasting and live broadcasts. Two media platforms are being developed, while payment systems divisions will provide cutting-edge credit, debit, and e-cash payment services to e-commerce and mobile commerce merchants offering significant savings over current payment methods. Through embedding its payment solutions seamlessly into its online media broadcasting platforms will create a clear differentiation and advantage for our Company over other broadcast platforms, allowing its customer to monetize digital assets with no further integration of financial systems. Furthermore, through its retail sales channel, BMC, RTGV will be able to brand and productize its media offerings for sale through traditional retail outlets. RTGV's strategy for each initiative is to maximize ROI for all stakeholders. For RTGV's available Due Diligence, visit our website at:http://www.rtgventures.com/

Auriemma Consulting Group Analyses Lessons Learnt from International Credit Card Regulation

LONDON--(BUSINESS WIRE)--On 15 March 2010, the Department for Business, Innovation & Skills (BIS) released the response to the consultation on credit and store cards. As part of the consultation process, BIS commissioned Auriemma Consulting Group (ACG) to research features of international credit card markets and how they are regulated, and to identify what lessons could be learned. A number of markets outside of the UK, particularly the US and Canada, have recently implemented regulatory proposals related to credit cards. The ACG study provided evidence on market structure and credit card usage in the international markets and included detailed data and analysis of current regulations and its impact on the payments industry and consumers. Key findings include:

1. Measuring the impact of the BIS regulation will be difficult since it is also coinciding with unprecedented economic changes.


2. Limiting issuers’ ability to change terms in a reactive fashion impacts their ability to manage risk.


3. Having an open dialogue between politicians, regulators and industry participants will ensure that the impact and goals of the regulation are understood by all parties, and that changes are made in a organised and effective fashion.


4. Regardless of the scope of the regulation, it is critical that the industry is provided with enough time to implement and appropriately test any necessary changes.


5. The consumer credit industry is creative and innovative. The industry will adapt to the regulation and will develop products, services and strategies that appropriately reflect the new market constraints.

These findings will have significant impact on the UK credit industry. The most impactful result is the limitations on the ability that credit issuers have to manage risk (i.e. change terms) reactively, particularly when a consumer demonstrates financial hardship. This fundamental change to the industry’s long-standing business practices will result in less credit being available to consumers and the credit that is available will be more expensive in terms of higher interest rates and fees. Other potential changes we predict are:

• It is expected that benefits and features associated with these products will reflect the new requirements for increased transparency and/or be re-purposed versions of old best practices. Some examples include the re-introduction of charge cards as a mainstream product, widespread annual fees on cards, no interest free periods and rewards being only offered to the most affluent and/or profitable cardholders.


• New credit industry regulation is likely to continue in reaction to the unintended consequences of the current regulation, though these are not expected to be introduced for 1-2 years.


• Some issuers, particularly those who are categorised as being small- or medium-sized lenders, may cease to issue credit and/or store cards, due to the high financial and human resources required to comply with the new rules.


• Financial education efforts, particularly those focused on improving consumer financial literacy, will become more prevalent and focused.


• As credit becomes more difficult to obtain, the migration of consumers to debit and prepaid will accelerate. It also seems likely that short-term lending products like payday loans will gain interest among the mainstream public.

All data included in this study was obtained by ACG using a combination of interviews, desktop research, consumer surveys (using ACG’s proprietary market research platform, Cardbeat®) and internal industry insight. The full version of the report is available to download at http://www.bis.gov.uk/creditconsultation/response).

About Auriemma Consulting Group

Since 1984, ACG has offered comprehensive management consulting, research, industry roundtable and benchmarking services to the financial services industry. ACG clients include credit card issuers and networks, commercial banks, mortgage lenders, merchants, and other industry participants. With offices in London and New York, ACG offers actionable solutions to help clients make important business decisions to maximise their efficiencies and revenues.

Contacts

Auriemma Consulting Group

Megan Bramlette or Matt Simester

+44(0)207-629-0075

megan.bramlette@acg.net

matt.simester@acg.net

Permalink: http://www.businesswire.com/news/home/20100326005341/en/Auriemma-Consulting-Group-Analyses-Lessons-Learnt-International

Auriemma Consulting Group Analyses Lessons Learnt from International Credit Card Regulation

LONDON--(BUSINESS WIRE)--On 15 March 2010, the Department for Business, Innovation & Skills (BIS) released the response to the consultation on credit and store cards. As part of the consultation process, BIS commissioned Auriemma Consulting Group (ACG) to research features of international credit card markets and how they are regulated, and to identify what lessons could be learned. A number of markets outside of the UK, particularly the US and Canada, have recently implemented regulatory proposals related to credit cards. The ACG study provided evidence on market structure and credit card usage in the international markets and included detailed data and analysis of current regulations and its impact on the payments industry and consumers. Key findings include:

1. Measuring the impact of the BIS regulation will be difficult since it is also coinciding with unprecedented economic changes.


2. Limiting issuers’ ability to change terms in a reactive fashion impacts their ability to manage risk.


3. Having an open dialogue between politicians, regulators and industry participants will ensure that the impact and goals of the regulation are understood by all parties, and that changes are made in a organised and effective fashion.


4. Regardless of the scope of the regulation, it is critical that the industry is provided with enough time to implement and appropriately test any necessary changes.


5. The consumer credit industry is creative and innovative. The industry will adapt to the regulation and will develop products, services and strategies that appropriately reflect the new market constraints.

These findings will have significant impact on the UK credit industry. The most impactful result is the limitations on the ability that credit issuers have to manage risk (i.e. change terms) reactively, particularly when a consumer demonstrates financial hardship. This fundamental change to the industry’s long-standing business practices will result in less credit being available to consumers and the credit that is available will be more expensive in terms of higher interest rates and fees. Other potential changes we predict are:

• It is expected that benefits and features associated with these products will reflect the new requirements for increased transparency and/or be re-purposed versions of old best practices. Some examples include the re-introduction of charge cards as a mainstream product, widespread annual fees on cards, no interest free periods and rewards being only offered to the most affluent and/or profitable cardholders.


• New credit industry regulation is likely to continue in reaction to the unintended consequences of the current regulation, though these are not expected to be introduced for 1-2 years.


• Some issuers, particularly those who are categorised as being small- or medium-sized lenders, may cease to issue credit and/or store cards, due to the high financial and human resources required to comply with the new rules.


• Financial education efforts, particularly those focused on improving consumer financial literacy, will become more prevalent and focused.


• As credit becomes more difficult to obtain, the migration of consumers to debit and prepaid will accelerate. It also seems likely that short-term lending products like payday loans will gain interest among the mainstream public.

All data included in this study was obtained by ACG using a combination of interviews, desktop research, consumer surveys (using ACG’s proprietary market research platform, Cardbeat®) and internal industry insight. The full version of the report is available to download at http://www.bis.gov.uk/creditconsultation/response).

About Auriemma Consulting Group

Since 1984, ACG has offered comprehensive management consulting, research, industry roundtable and benchmarking services to the financial services industry. ACG clients include credit card issuers and networks, commercial banks, mortgage lenders, merchants, and other industry participants. With offices in London and New York, ACG offers actionable solutions to help clients make important business decisions to maximise their efficiencies and revenues.

Contacts

Auriemma Consulting Group

Megan Bramlette or Matt Simester

+44(0)207-629-0075

megan.bramlette@acg.net

matt.simester@acg.net

Permalink: http://www.businesswire.com/news/home/20100326005341/en/Auriemma-Consulting-Group-Analyses-Lessons-Learnt-International

FDIC: Hackers Took More Than $120M in Three Months

• PCWorld

This is the "type" of news we will continue reading until we stop entering/typing passwords and start authenticating ourselves the same way we authenticate ourselves at an ATM or at the Point of Sale in a retail store.  Swipe your Bank Issued Card and Enter Your Bank Issued PIN. .  Why should the internet be any different?  The web inherently makes people think everything should be software-based. NOT financial transactions.   They MUST be conducted "outside the browser space." It's just the way it is.  Extremely sensitive financial information (either online banking credentials or credit/debit card numbers) have no business being entered/typed.  It makes it readily available to hackers.  Why do you think they call it a "browser?"  Various keylogging/malware and phishing attacks have now risen to the tune of $120 million in the 3rd quarter of 2009.  I have a sneaky suspicion that the Q4 numbers will be higher.  If the online banking credentials or cardholder data was encrypted inside a separate machine there wouldn't be anything to obtain.  It would all be gobblygook protected by Derived Unique Key Per Transaction end-to-end encryption.  It's why we have the only PCI certified PED designed for eCommerce financial transactional use.  Don't you believe it's time for a change?

Robert McMillan, IDG News Service



Online banking fraud involving the electronic transfer of funds has been on the rise since 2007 and rose to over US$120 million in the third quarter of 2009, according to estimates presented Friday at the RSA Conference in San Francisco, by David Nelson, an examination specialist with the FDIC.



The FDIC receives a variety of confidential reports from financial institutions, which allow it to generate the estimates, Nelson said.



Almost all of the incidents reported to the FDIC "related to malware on online banking customers' PCs," he said. Typically a victim is tricked into visiting a malicious Web site or downloading a Trojan horse program that gives hackers access to their banking passwords. Money is then transferred out of the account using the Automated Clearing House (ACH) system that banks use to process payments between institutions.



Even though banks now force customers to use several forms of authentication, hackers are still stealing money. "Online banking customers are getting too reliant on authentication and on practicing layers of controls," Nelson said.

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NYCE Trend Developing Towards More PIN Debit Use

Image via Wikipedia

According to a press release from Acxsys and NYCE, during the four month period from December through March 2008, Canadian shoppers spent record amounts and made significantly more cross-border purchases in the US than last year.

U.S. retailers experienced even more value from accepting Canadian PIN debit cards during the holiday, spring break and snowbird season through the Cross-Border Debit service. The service is offered through an alliance between NYCE Payments Network and Acxsys Corporation.

NYCE Payments Network, LLC, is a leading U.S. debit card payments network and a Metavante company. Metavante is a leading provider of banking and payments technology. Acxsys Corporation is the architect of the national INTERAC debit service in Canada.

During the period from December 2007 through March 2008, Canadian consumers spent an average of more than $68 per Cross-Border Debit transaction—a figure that is 45 percent more than the average U.S. debit purchase during the same months. Since the service launch, the Canadian average has outpaced the U.S. average by 33 percent.

“The higher per-transaction average, combined with the lower cost to process PIN debit transactions versus credit, saves our retailers money while giving Canadian consumers instant access to funds that reside in their Canadian bank accounts,” said Steve Rathgaber, president and chief operating officer at NYCE.

“As they do at home, Canadians are choosing PIN debit at all types of retailers that accept NYCE, giving NYCE a unique value proposition to offer our participants.”

While the three-year-old program continues to enjoy steady growth overall, transaction numbers increased dramatically for the November and December shopping season last year in the states of New York and Washington. The combined transaction number for these states jumped 94 percent. Growth remained strong in the months following this period, with those same states logging 92 and 102 percent increases respectively in March 2008 transactions alone over the past year.

“Canadians are among the highest users of debit compared to other countries around the world, so it’s not surprising that Canadians are increasingly choosing debit in the United States as their preferred payment method,” said Tina Romano, public relations manager, Acxsys Corporation.

NYCE is the first and only U.S. payments network to enable widespread PIN debit access at the point of sale for purchases initiated with debit cards issued by participating Canadian financial institutions.

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