Plumery, a digital banking experience platform for customer-centric banking, today announced it has launched Digital Lending. The fully end-to-end digital…
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Plumery, a digital banking experience platform for customer-centric banking, today announced it has launched Digital Lending. The fully end-to-end digital loan origination journey allows bank customers to go from application to disbursement in 180 seconds.
Digital Lending
Plumery Digital Lending offers market-leading speed with banks, digital lenders and other financial institutions who are able to launch their new lending products in as little as 18 weeks. Moreover, allowing firms to triple their loan portfolio and capacity while maintaining the same staffing levels.
Many financial institutions are still unable to offer a fully digital loan origination process to customers. This forces them to partially complete a process online before finalising with human intervention. Yet, firms need to move quickly to stay competitive in today’s fast-paced world and benefit from the highest interest rates in a decade.
Transforming the loan process
“By transforming the loan origination process into a fully digital experience, banks and other financial institutions can meet the demand for seamless and efficient customer journeys. Firms can configure every aspect of the process, safe in the knowledge they are on top of bank-grade security and infrastructure.”
Ben Goldin, Founder and CEO of Plumery
Digital Lending includes:
Digital application through web and mobile interfaces
Secure capture and storage of customer information
Streamlined, compliant onboarding experience
Automated application processing and data collection
Integration with external data sources for accurate scoring and vindication
AI/machine learning driven credit decisioning with customisable rules
Digital document generation and e-signatures
Loan disbursement and integration with core banking or loan management systems
With customer journeys built on the Plumery platform, firms can align with their unique workflows or adapt to changing regulatory requirements – and continue making rapid improvements from there. Plumery offers tools which both developers and business users can employ to make final adjustments, ensuring fast and affordable automation.
About Plumery
Headquartered in the Netherlands, Plumery’s mission is to empower financial institutions worldwide, regardless of size, to craft distinctive, contemporary, and customer-centric mobile and web experiences.
Plumery operates with a diverse team that embodies a unique combination of seasoned expertise and vibrant innovation. This blend has been cultivated through years of experience at start-ups, scale-ups, and established financial institutions, and most notably at globally leading financial technology companies, where they were instrumental in creating disruptive digital banking solutions and platforms that now serve 300+ banks globally.
Plumery’s Digital Success Fabric platform provides banks with the foundation for success beyond fast-time-to-market by expediting the development of their digital front ends while significantly cutting costs compared to in-house initiatives or solutions with high total cost of ownership (TCO).
Ben Hunter, Senior Director of Financial Services at Gigamon, on the impact of the Digital Operational Resilience Act (DORA) and what financial institutions can do to ensure lasting compliance
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The Digital Operational Resilience Act (DORA) came into force on January 17th. It’s high time for financial institutions to refine their compliance and Cybersecurity efforts. This regulation isn’t just another box-ticking exercise. It represents a shift in the financial services industry that touches everyone in the ecosystem. And every corner of the organisations within it. From IT teams to the board, every department must pull together under a cohesive cyber strategy to meet the challenge. It’s not simply about systems and software. DORA demands a cultural shift toward organisation-wide cyber resilience.
At this stage, the big changes should already be in place. However, the focus now must be on the finer details. The overlooked pieces that could potentially make or break compliance and prove extremely costly. Organisations must tweak processes and ensure every element of their plan works seamlessly and aligns with the broader goal of operational resilience. Here are three areas of focus to perfect preparedness and ensure DORA compliance is not just a box checked but a new standard embraced by the whole organisation.
Criticality of third-party Cybersecurity management
One of DORA’s requirements is reducing reliance on single ICT service providers. This is designed to safeguard financial institutions against concentrated risk. By now, all structural changes should already be in place, with organisations diversifying their ICT providers. Or improving internal capabilities to reduce their external dependencies. However, compliance doesn’t end with restructuring. The focus must now shift from restructuring to managing these relationships effectively. Organisations should be looking to perfect their third-party risk assessment, monitoring, and due diligence strategies. They must ensure their processes for vetting ICT service providers are not just in place but are meticulously detailed. Contracts need to leave no room for ambiguity, with explicit terms outlining providers’ security and risk management strategies. These agreements must be revisited and stress-tested to confirm they align with DORA’s standards.
Equally critical is ironing out the specifics of ongoing monitoring and oversight. Institutions should be finalising the structure and frequency of their performance reviews and audits. Ensuring these mechanisms are robust enough to identify and address any emerging vulnerabilities. Moreover, by focusing on the details now, organisations can build a resilient operational framework that doesn’t just meet DORA’s requirements but builds resilience into their core operations for years to come.
Global efficiency through multi-cloud environments
Adopting a multi-cloud strategy has become essential for financial institutions operating on a global scale. It mitigates concentrated risk by avoiding dependence on a single provider and allows organisations to address the unique regulatory and operational challenges of different regions. However, the complexity of multi-cloud environments brings its own challenges. Particularly in ensuring the visibility and control required under DORA. This is why it’s crucial for organisations and their third parties to refine the tools and processes that support this level of visibility and allow the security teams to continuously monitor their environments.
According to recent data, 50% of CISOs say their confidence in risk management hinges on having full visibility into all data in motion, including encrypted and lateral traffic across both on-premises and cloud environments. This underscores the importance of advanced monitoring capabilities to effectively manage the complexities of multi-cloud infrastructures. While DORA mandates comprehensive visibility, the benefits go beyond just meeting compliance requirements. Deep observability strengthens organisations’ ability to detect vulnerabilities in real-time, ensuring seamless operations across regions and providers, and service continuity. For multi-cloud strategies to be effective, they must be paired with the right network-level monitoring capabilities. It’s important to build resilience from the inside out.
Organisational alignment to demonstrate Cybersecurity compliance
Demonstrating compliance isn’t just about avoiding fines and ticking regulatory boxes. It’s about preserving trust and protecting the organisation’s reputation. Reputational damage and financial penalties hit the top of the organisation hardest. This makes board-level engagement essential to ensuring Cybersecurity efforts are prioritised and aligned with broader business objectives. Boards must recognise that Cybersecurity is not a siloed function; it’s a key aspect of business resilience.
While security leaders are responsible for designing and implementing security strategies, their ability to deliver is directly tied to the board’s involvement. Board members control the decisions that shape an organisation’s Cybersecurity posture, from budget allocation to strategic priorities. Without their active engagement, security leaders may lack the resources, influence, or organisational buy-in necessary to implement comprehensive security measures. This can lead to significant gaps in compliance efforts and overall resilience.
To demonstrate compliance effectively, organisations need a unified approach to gathering, standardising, and presenting evidence to regulatory authorities. This includes aligning on consistent formats for documenting key areas like risk assessments, incident management, security testing, and third-party oversight. By finalising internal policies and leveraging automation tools, institutions can ensure their compliance evidence is regulator-ready and accessible. Such coordination not only satisfies DORA’s demands but also signals a strong, unified commitment to operational resilience. One that must come from the top and ripple throughout the entire organisation.
With penalties for non-compliance reaching up to 2% of global annual turnover, financial institutions cannot afford to be anything less than fully aligned on their compliance strategies going forward. Furthermore, as the broader compliance frameworks are now finalised, the focus must shift to perfecting the finer details that will ensure long-term resilience and success.
About Gigamon
Gigamon offers a deep observability pipeline that efficiently delivers network-derived intelligence and insights to your cloud, security, and observability tools. This eliminates security blind spots, optimises network traffic and reduces tool costs. Therefore, enabling you to better secure and manage your hybrid cloud infrastructure.
Industry leaders join forces to host groundbreaking event during ETHDenver 2025 where Stablecoin innovation meets B2B finance
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PayPal, Deloitte,and Bitwave will co-host On-Chain B2B Payments Day. A transformative event dedicated to accelerating the global adoption of Blockchain powered B2B payments.
Exploring Blockchain technologies
On-Chain B2B Payments Daywill bring together hundreds of senior financial leaders, accountants, auditors, and enterprise executives on February 27 at ETHDenver. They will explore how stablecoins and Blockchain technologies are reshaping the future of payments for businesses.
“With the broader adoption of blockchain networks and digital assets, stablecoins play a critical role,” said Deloitte Tax LLP Partner, Global Tax Leader – Blockchain & Digital Assets, Rob Massey. “Business transactions take on a whole new dynamic when these ‘programmable’ funds interact with the software applications on a near real time basis. Furthermore, with that, we end up with unique tax, accounting and risk considerations.”
Redefining payments with Blockchain
The Blockchain event will be presented alongside ETHDenver – the annual conference for Ethereum developers and Blockchain advocates. On-Chain B2B Payments Day kicks off with a networking brunch and panel discussion featuring some of the leading voices in payment innovation. The event is sponsored by NetSuite alongside other key industry contributors.
“Stablecoins offer an unprecedented opportunity to transform payment operations for global business,” said Bitwave Co-Founder and COO, Amy Kalnoki. “At Bitwave, we expect to see on-chain payments become one of the fastest-growing areas of Blockchain adoption in 2025. Moreover, this event will provide financial leaders with insights into how on-chain technology will redefine cross-border payments, liquidity management, and real-time reporting.”
Why Attend On-Chain B2B Payments Day?
Gain Practical Insights: Learn from financial experts about accounting, tax, and regulatory frameworks for building a compliant and future-ready payment practice.
Discover Real-World Use Cases: Explore how stablecoins are transforming B2B payments, from accounts receivable (AR) to accounts payable (AP) and beyond.
Engage with Industry Leaders: Connect with top decision-makers from leading enterprises, institutions, and crypto-native organisations advancing on-chain payments between vendors and payers.
Bonus: Take the “Bitwave Vendor Payment Pledge” and join an exclusive network of business partners accepting stablecoin invoice payments.
Ben Goldin, Founder & CEO of Plumery, on how Digital Banking innovations are reshaping the financial landscape, creating a greener future and new opportunities for millions
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Digital banking is making waves in emerging markets, evolving beyond simple transactions to deliver rapid access to credit, broaden economic inclusion, and support sustainable solutions. As smartphone adoption rises and AI reshapes lending processes, digital banking is significantly expanding in underbanked regions, enhancing financial inclusion for people and businesses while minimising environmental impact.
According to McKinsey, several trends have accelerated this Neobanking evolution in emerging markets. The pandemic drove a shift from cash to contactless and digital payments. E-commerce grew significantly – global transaction volumes increased by 25% from 2019 to 2020 and are expected to continue growing at 12-15% annually. Governments introduced cashless payment systems like Wave in Côte d’Ivoire, UPI in India, and Pix in Brazil to enhance interoperability and improve aid distribution. Furthermore, investor interest surged, with payments-focused fintechs receiving nearly 40% of the $5.2 billion in tech startup capital in Africa in 2021.
Together, these factors have fuelled innovation in digital finance. This has helped meet rising demand and enabled AI-driven, mobile-first platforms to deliver fast access to capital, fostering financial empowerment in underserved communities.
Additionally, smartphone penetration is set to reach 88% in Sub-Saharan Africa by 2030. Setting the stage for even greater financial inclusion. Combined with a growing focus on sustainability, digital banking in these regions is positioned to offer services that are both inclusive and environmentally conscious. Here’s a look at how digital banking is breaking down barriers, expanding financial empowerment, and building a greener future across emerging markets.
The evolution from basic transactions to fully-fledged Digital Banking
Digital banking initially gained traction by providing essential services like balance checks, peer-to-peer (P2P) transfers, and bill payments. This bridged gaps left by limited banking infrastructure. However, with evolving needs, digital banks and fintech companies now offer advanced products such as digital lending. This is among the most transformative aspects of digital banking in emerging markets.
Traditional access to credit was often challenging due to strict requirements, physical infrastructure, and extensive documentation. Digital lending platforms eliminate these barriers, enabling users to apply for loans directly through mobile devices, often receiving decisions within minutes.
AI-driven credit assessment models leverage alternative data points like mobile usage, purchase history, and digital wallet activity. This allows customers to secure funds without a formal credit record. Quick access to capital can be a lifeline for small business owners. Allowing them to act on opportunities as they arise. Digital lending thus meets immediate financial needs and supports broader economic growth by empowering local businesses.
Banking on a sustainable tomorrow
As digital banking expands, the need for environmentally sustainable operations becomes critical. The infrastructure supporting digital banking requires significant energy, especially as usage grows. To address this, financial institutions in emerging markets are adopting cloud-based platforms and energy-efficient data centres, reducing resource consumption while scaling services.
Cloud-based solutions are not only more scalable but also more energy-efficient, enabling banks to expand their reach responsibly. Automated processes further enhance energy efficiency, allowing Neobanking providers to serve more customers while minimising their environmental impact. This focus on sustainability aligns with broader goals of economic development and environmental stewardship, especially in regions vulnerable to climate change. For instance, Nubank in Brazil has achieved significant milestones by focusing on digital-only services, reducing the need for physical branches and their associated environmental impact.
Bridging gaps and expanding reach
Financial inclusion remains at the heart of digital banking’s impact in emerging markets. Digital platforms provide an entry into the formal financial system for millions. This allows them to save, invest, and plan for their futures. For small businesses, mobile applications and digital wallets offer essential tools for growth, empowering them to compete and contribute to local economies.
Digital platforms are also helping bridge the documentation gap by offering digital identity verification. This allows individuals without formal identification to open accounts and access financial services. Moreover, this approach is critical in regions where many people lack traditional IDs, which has historically excluded them from banking. By incorporating digital identification and security measures, financial institutions extend their reach, supporting resilience and inclusion.
Pioneering financial access through Digital Banking innovation
Emerging technologies like Blockchain, AI, and Biometrics are another factor in redefining digital banking in emerging markets. Blockchain provides a secure and transparent transaction method, which is particularly valuable in regions with less stable financial systems. AI enables credit assessment using alternative data, while biometrics and electronic Know Your Customer (e-KYC) simplify account creation. This makes it easier for individuals in remote areas to access financial services without physical documentation.
These technologies not only broaden financial access but also ensure that digital banking systems are efficient, secure, and scalable. By integrating these advanced tools, banks and fintech companies can provide reliable services to underserved populations, raising the standard for accessibility and security. An example of this in action is Moniepoint, a Nigeria-based FinTech. It has secured significant funding to enhance digital payments and banking solutions across Africa. By applying advanced technologies it reaches many who still lack access to banking services.
The future: Empowerment, Inclusion, and Sustainability
The future of digital banking in emerging markets holds great potential. With rising smartphone and internet connectivity, even remote areas gain access to financial services, breaking down traditional barriers to inclusion. This evolution goes beyond technology, creating pathways for financial empowerment and economic resilience.
A new generation of digital banking solutions is enabling financial institutions to extend their reach into emerging markets with a comprehensive range of services. From account management to lending. Designed with flexibility in mind, these platforms support customisation, allowing banks to tailor services to local needs through open APIs and modular infrastructure. By embracing sustainable practices and sustainable technology, these solutions not only broaden financial access but also foster growth in underserved regions in an environmentally responsible manner.
Yuno and PayPal team up to simplify Digital Payments for merchants with flexible options to broaden market reach and unlock new revenue streams
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Yuno a leading payment orchestration platform, has announced a strategic collaboration with PayPal, a global leader in Digital Payments processing. This collaboration significantly enhances Yuno’s offering, giving merchants seamless access to PayPal’s vast active user network. This now surpasses 400 million worldwide.
Unlocking revenue streams with Digital Payments
Yuno-powered merchants can now effortlessly offer PayPal’s secure and flexible payment option, broadening their market reach and unlocking new revenue streams. Trusted by millions worldwide, PayPal allows users to make purchases, transfer funds, and pay bills in a fast, easy, and secure way, without the need to repeatedly enter card payment information, contributing to reducing digital footprint and providing the security users are looking for.
Including this partnership, Yuno now supports over 300 global payment methods via its intuitive, user-friendly interface, making it easy for merchants to scale quickly by offering the most popular and locally-relevant payment methods in each market. Yuno’s platform also provides access to other innovative features. These include one-click checkout, advanced fraud protection, and optimised payment routing. This boosts transaction success rates and prevents lost sales in the wake of outages at a payment provider.
Catherine Kaupert, Global Head of Partnerships of Yuno, commented: “We’re thrilled to team up with PayPal, a well-known and trusted name in Digital Payments processing globally. This integration further strengthens Yuno’s capabilities, allowing our merchants to tap into PayPal’s extensive network and drive growth with ease. Together, we are simplifying payments, making them more secure, and enabling businesses to scale without friction.”
Paola Fuentes, Head of Partnerships for Hispanic Latam at PayPal, added: “Our affiliation with Yuno integrates our entire product portfolio. Including PayPal Checkout and credit and debit card payment processing to provide cutting-edge payment solutions for both customers and businesses. By joining forces, we are expanding the benefits of both companies’ offerings, giving consumers the option to select the payment method that suits them best and take advantage of instalments. According to recent data from AMVO, this is one of the main incentives for Mexican consumers to make purchases through the digital channel”.
Last year, Yuno secured $25 million in a Series A round led by Andreessen Horowitz, Tiger Global, DST Global Partners, Kaszek Ventures, and Monashees, fuelling its expansion across Asia, Europe, the Middle East, and Africa.
About Yuno
Yuno has emerged as a dominant force in global payment orchestration. Its core mission is to empower global commerce by enabling businesses of all sizes to accept and disburse Digital Payments anywhere in the world. Furthermore, fostering financial inclusion.
Yuno enables businesses to access over 300 payment methods worldwide. As well as innovative features including one-click checkout, smart routing, and robust anti-fraud tools via a single unified, easy-to-use interface. Yuno serves a global customer base that includes McDonald’s, inDrive, Rappi and other renowned brands across more than 80 countries.
About PayPal
PayPal has been revolutionising commerce globally for more than 25 years. The company creates innovative experiences that make moving money, selling, and shopping simple, personalised, and secure. PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy.
Simon Ellis, Head of Operations, EMEA at the global payment platform Airwallex, with his key FinTech predictions for 2025
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This past year has truly solidified FinTech’s role as an indispensable part of the financial landscape. From the sleek banking apps that have become a daily staple for millions to the invisible financial infrastructure powering seamless payments… FinTech is no longer just a buzzword – it’s the new norm. It’s not just about innovative startups anymore. It’s about how traditional financial institutions are embracing and integrating these technologies to stay relevant and meet the evolving needs of their customers. In essence, FinTech has become synonymous with modern banking, driving continuous innovation and transformation across the entire industry.
But what’s next? 2025 promises to be transformational in many ways. Businesses are accepting AI as the reality of our future. Consumers are becoming more accustomed to flexibility and choice. And now more than ever, both seek agile and seamless solutions for their financial needs.
Here are the trends we at Airwallex expect to see play out over the next twelve months:
Coopetition with traditional banks and FinTechs
Coopetition will become a firm reality in 2025. Many of the conventional fears associated with FinTechs will no longer be a salient presence. Increased collaboration between FinTechs and banks will facilitate further innovation on a mass scale. These giants will insert themselves into new industries and access a new generation of customers. The prerequisite for this is the correct compliance and controls but firms are committed to getting this right to ensure they maintain the right to operate.
A path to Hyper-Personalisation
Over the past year, we’ve witnessed the emergence of an increasingly educated payments buyer, mindful of what they need today and into the future as they scale. In 2025, we’ll see payment providers take more direction from their customers. Payment providers will need to be more flexible as merchant customer preferences shift.
For ambitious and progressive businesses, particularly those looking to operationalise in new markets at pace, convenience remains king. Navigating multiple vendors can quickly create friction. However, this is where FinTechs bundling their solutions comes into play. Having a single point of contact that provides a range of services – whether that’s foreign exchange (FX), multi-currency digital accounts, expense management or payouts – isn’t just about convenience. Moreover, it saves on crucial costs that can be reinvested back into the business to spur growth.
The days of taking a one-size-fits-all product approach will no longer suffice. Hyper-Personalisation will reign supreme as businesses fight for customer attention and brand loyalty.
The continued rise of Embedded Finance
In seeking to accommodate the growing need for flexibility, the year ahead will see Embedded Finance become more commonplace across a range of industries. Consumers have most likely all experienced the seamless process of making an embedded payment, whether it’s ordering through a food delivery app or paying for a ride. Usually, it’s through digital-first services, but 2025 will be the year that we see more traditional industries embrace embedded payments to keep pace with the broader innovation taking place in their sectors. This will also help businesses stand out in an ever-changing and overcrowded market. Embedded Finance will help end users maintain their dominance while also driving product stickiness.
AI is here to stay
To accelerate this transformation, 2025 will see FinTechs and banks persist in the use of AI to improve decision-making and customer engagement. AI is already being used to automate and expedite previously long and complex processes. For example, Generative AI (GenAI) will continue to help financial institutions enhance the speed and efficacy of know-your-customer (KYC) and customer onboarding processes. Furthermore, at the same time, it will detect unusual activity and fraud. We’ll also continue to see a focus on AI’s use to improve the ongoing customer experience with personalised insights and advice.
As a result, modern financial services will become more accessible to businesses of all sizes and across sectors. Allowing for easier and more cost-effective management of global operations.
Bharat Mistry, Director – Product Management at Trend Micro, on why attack surfaces are more difficult to mange than ever and the need for greater Cybersecurity controls to tackle the problem
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Some surprising news emerged in mid-December. A Freedom of Information request sent to the Financial Conduct Authority (FCA) revealed that the number of c
Cybersecurity attacks reported to the regulator by large financial institutions fell 53% from the previous year. Reported data breaches also fell, by 29%. While welcome news, there are some big caveats.
The fall in reports could signify attacks are getting more sophisticated and harder to spot. The reporting periods also didn’t quite align, meaning two-and-a-half months of possible regulatory reports weren’t included in 2024’s figures. In fact, we’re seeing attacks and breaches at financial services industry (FSI) firms surging. In line with these organisations ramping up investment in digital transformation and IT modernisation projects.
Threat actors are grasping the opportunity with both hands. To keep them at bay, IT and cybersecurity leaders in the sector may need to rethink their approach to cyber risk management.
Cybersecurity controls are urgently required
Digital transformation is on an inexorable path. Driven by customer demand for seamless cross-channel experiences, and the quest for more streamlined business processes and productivity gains. Cloud adoption, mobile and app-centric services, remote workforces, and expansive supply chains are the result. However, this rapid change comes at a price. Research warns that half (49%) of global FSI leaders believe their attack surface is spiralling out of control.
Put simply, the ‘attack surface’ is the total expanse of all the IT and OT systems in a business that could theoretically be hacked. It includes everything from on-premises desktops and servers to cloud containers and even employees. Vulnerabilities and misconfigurations across these systems and services are inevitable. And the more assets there are, the more chance there is that a determined threat actor will find a weakness. This allows them to compromise the corporate network or a critical cloud account.
Heeding the warning
The likelihood of them doing so is increasing all the time. Not just because the typical FSI attack surface is increasing, but also because cybercriminals and nation-state operatives are getting better at using AI to their advantage. The National Cyber Security Centre (NCSC) warned back in January 2024 that AI “will almost certainly increase the volume and heighten the impact of cyber-attacks over the next two years”. It’s right. Generative AI in particular lowers the bar for budding threat actors by enabling them to create highly effective social engineering campaigns. And perform reconnaissance at scale to find weaknesses in organisations’ attack surfaces. In some cases, these weaknesses may exist in AI tools brought in by workers themselves. One report claims over a third of firms are struggling with shadow AI.
Our adversaries are also aided by the sheer complexity and interconnectivity of modern digital environments. APIs, microservices and third-party integrations -including frequently buggy or downright malicious open source components – expand the attack surface yet further.
Why it’s time for change
Managing risk across these environments should be a priority for obvious financial and reputational reasons. Open Banking rules and the growth of FinTech have made it easier for dissatisfied customers to jump ship. Furthermore, providing more options for those looking for a new provider. A serious breach could be the catalyst for a mass exodus. It’s also expensive in other ways. FSI is the second-top sector overall in terms of the average cost of a data breach. This is estimated to be over $6m per incident, assuming no more than 113,000 records are compromised.
However, there’s increasingly a regulatory imperative for FSI firms to rethink their Cybersecurity strategy. Any operating in the EU now has to comply with a rigorous new set of requirements in the EU Digital Operational Resilience Act (DORA). From January 1, 2025, those in the UK deemed to be critical third parties (CTPs) will be required to put in place a number of “technology and cyber risk management and operational resilience measures”.
A new mindset
So what does this mean in practice? Modern technology environments are dynamic, with new assets appearing and disappearing. Furthermore, new vulnerabilities are emerging and fresh misconfigurations surfacing on a daily or even hourly basis. Managing risk across this vast, incredibly volatile and highly distributed environment requires a new approach. Traditional perimeter defences are no longer sufficient.
Instead, FSI firms need continuous monitoring of risk across their entire attack surface. From endpoints and networks to servers and cloud workloads. Ideally, such a platform will flag areas of concern and either suggest improvements or automatically remediate. It could be something as simple as changing an insecure password, or patching a critical vulnerability newly published by a key vendor. This is the way to build resilience for the long term.
But there’s more. Some threats will always sneak through corporate defences. That’s why it’s also vital to expand security operations capabilities with AI-driven analytics and cross-layer detection and response (XDR). The goal is to correlate threat data across multiple layers and automatically prioritise alerts for stretched analyst teams. Robust incident response processes are also key here, to ensure no time is wasted in containing the threat and minimising any damage caused.
More broadly, it’s about fostering a culture of cyber resilience. Continuous improvement, proactive defence, and a willingness to adapt are ingrained in the corporate mindset. More Cybersecurity regulations are promised by the government in 2025. The clock’s ticking.
Industry thought leaders from Marqeta, the global modern card issuing platform, offer a detailed outlook of the fintech industry for 2025, with predictions around personalisation, digitalisation and the evolving regulatory landscape
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Payments will turn fully personal, with tailored credit, rewards, and BNPL at scale in 2025
In my opinion, a major global payment trend of 2024 has been hyper-personalisation. A new generation of customers is driving a shift toward personalisation at scale, expecting their FinTech services to be unique and tailored to individual needs. Modern consumers want a future where financial services integrate seamlessly into their digital lives and keep pace with their evolving needs.
As a result, we are seeing trends, such as personalised credit offerings and rewards booming. In an industry with increasingly low consumer loyalty, brands and financial institutions must go beyond traditional interactions with FinTech. For example, the recent Marqeta State of Credit report found that of UK consumers who use more than one credit card, 43% confirmed that they would use a credit card more frequently if better rewards were offered. By moving to a dynamic, rather than set rewards structure, consumers can earn benefits tailored to their spending habits and preferences in real time.
Increasingly with innovations like Buy Now Pay Later (BNPL), consumers are guided to credit options specifically suited to them and their needs. In 2025, we will increasingly see personalised BNPL payment plan options being offered in real time. Often within existing payment apps and products we already use daily. We are also seeing B2B payments emerging as a strong trend. Ensuring gig workers, sellers and partners get paid efficiently while offering robust expense management and financing. I anticipate we’ll see more demand for innovative B2B payment solutions that enable seamless money management across 2025.
2025 will be a year of rapid innovation in financial services
In today’s digital-first world, traditional payment infrastructure is no longer enough to keep up with the demands of consumers. The front door of a bank is now an app, digital wallet usage is increasing. New, flexible services have a growing prevalence on the market. In 2025 and beyond, customers will continue to drive a shift toward modern services which keep up with the rate of digital and mobile innovation.
The ramifications of changing consumer trends could lead to the traditional roles of banks, such as ATMs and as physical branches, disappearing. To ensure continued customer loyalty, all financial service providers will be forced to innovate and offer consumers the embedded, seamless and instantaneous services that they desire.
Consequently, across 2025, we are likely to see new technology and solutions being offered to reduce unnecessary friction for consumers trying to pay and get paid. We are already seeing increased demand for Accelerated Wage Access (AWA). A Marqeta study shows that 74% of gig workers ages 18-34 would be interested in an employer who offered an option to get paid immediately. As businesses and workers grow tired of cash flow restrictions and having to wait for monthly pay slips in an otherwise instant, digital world. As new services evolve, competition in Fintech will be enhanced and the financial industry will be forced to grow and evolve.
Nicholas Holt, Head of Solutions and Delivery, Europe
Proactive compliance strategies will lay the foundation for fintech in 2025
With banking and FinTech partnerships under increasing regulatory scrutiny, the stakes around compliance have never been higher. In this environment, Fintechs can no longer afford a reactive approach to compliance. Instead, they should adopt proactive compliance strategies that go beyond simply seeking to avoid fines and that are embedded into the everyday makeup of their culture and product strategies, helping to build trust, ensure stability, and foster sustainable growth.
At Marqeta, we’re committed to embedding compliance into our company’s culture, helping to mitigate risks and create a foundation for long-term success for us and our customers. Proactive compliance strategies allow organisations to leverage advanced tools and position themselves to adapt to shifting regulatory demands while showcasing a genuine commitment to transparency.
Alex Mifsud, CEO of Embedded Finance platform Weavr, on the outlook for Banking-as-a-Service (BaaS)
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If any FinTech trend is painfully making its way through the archetypical Gartner hype cycle, it is Banking-as-a-Service or BaaS. At its core, BaaS is an API-driven platform enabling third-parties to develop financial products that make use of the banking and payments capabilities, and the regulatory permissions, of financial institutions that offer it.
This means non-regulated businesses can, in effect, make financial services available to customers without having a banking or financial licence themselves. The bank gets to monetise their licence efficiently, while FinTechs bring ingenuity, market insight and usually, superior digital experiences to customers. It sounds wonderful in concept, but the reality is far more complex. The recent collapse of Synapse, a prominent BaaS provider, as well as the sheer number of regulator interventions across many developed world economies, has highlighted critical vulnerabilities in the BaaS model.
The BaaS Model
While no one, including regulators, seems to be denying the opportunity to create customer value, it is increasingly evident that the BaaS model as it has developed over the past five years will not survive in its present form. There are several evolutionary directions that are being talked about for BaaS, even if not yet established. Here, I would like to present a specific variant. The European regulatory model not only makes this possible, but also presents a strong win-win opportunity for banks to collaborate with non-bank financial institutions like e-money institutions and payment institutions (I’ll use the acronym “EMI” to mean either of these). In this model, banks get access to the benefits of BaaS with minimal exposure to the now-better-understood risks. Moreover, EMIs get access to the powerful capabilities and economics that are the sole preserve of banks as deposit-taking institutions.
These collaborations – in effect, a multi-tier approach to BaaS – should offer safer exposure to Embedded Finance for banks. And richer capabilities available to embedders, and ultimately, end-customers.
Antipattern Matching
Recent announcements that Clearbank, a digitally-savvy clearing bank now promoting itself as an embedded finance platform, has hit profitability is a welcome tonic to investors despairing of the stream of bad news hitting BaaS players in the US and Europe. Even JP Morgan, one of the most respected global banks, has shown that size is no obstacle to ambitious, or even radical, innovation, as it also offers Embedded Finance. And at the other end of the size scale, Griffin announced earlier this year that, having secured a banking licence specifically to offer BaaS and embedded finance, it is now ready to start operating.
In the face of the mentioned challenges that EMI BaaS players have faced with regulators in Europe, some in the investment community have been proclaiming that, to do BaaS effectively, a financial institution needs to have a banking licence. An e-money or payment institution licence simply won’t cut it.
While such pattern matching and extrapolation is understandable, it is not necessarily correct, so let’s look at an alternative view: both EMIs and banks are viable financial institutions to support Embedded Finance, but each have strengths and weaknesses. Better still, by working together in a multi-tiered configuration, each type of financial institution can play to its strengths enabling the combination to deliver high capability, highly adaptive delivery models of Embedded Finance.
Banks doing Embedded Finance
While a banking licence does confer specific advantages – mainly, that deposit-taking provides one of the most attractive financing models for financial institutions to raise funds for lending – there are also disadvantages to being a bank compared to being an EMI. In the UK, for instance, banks need to hold more capital than EMIs, and perhaps more importantly, banks are supervised by both the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA), the latter of which does not supervise EMIs.
Navigating innovative operating models like Embedded Finance with two regulators can create greater risk aversion and therefore slow down or even discourage the experimentation that is required to find the right risk-value formula that works. We know from recent experience that getting the balance right between great customer value and sustainable compliant operations can be a delicate balance.
The Benefits
One way to square the circle is for banks to provide wholesale financial services to EMIs which then serve end customers on their own licences in turn. While this doesn’t completely insulate the bank from censure in the event that the rules are broken – for instance, if money laundering occurs – it does place the biggest share of the burden of the customer on-boarding and monitoring compliance on the EMI. Given that EMIs were created initially to support money-related activities for a digital world, it may be easier for them by working with a single regulator to achieve the right balance. It also allows large banks with cumbersome on-boarding processes designed for large corporations to get access, via the EMI, to a community of small and medium sized business customers that, in aggregate, represent meaningful business volumes for the bank.
There is a strong win-win in this kind of bank-EMI collaboration, especially for banks which are used to dealing with other financial institutions as customers. EMIs, in turn, can source a range of wholesale financial services from multiple banks: foreign exchange from one, and lending capacity from one or more others.
A New Pattern: Multi-Tiered Banking with BaaS
The future of BaaS lies in collaboration. A multi-tiered banking model allows institutions to combine their strengths strategically. Such a model not only optimises the use of resources but also enhances the value proposition of BaaS by incorporating the strengths of various financial entities. EMIs, with their ability to offer commercial cards, credit lines, and foreign exchange services, reduce the risk for larger institutions and open doors for broader innovation.
Simon James, CEO of PayComplete, on why 2024 was a pivotal moment for cash and what the future holds
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After several years of doom and gloom and many proclaiming the death of cash, the last 12 months have well and truly put that idea to bed. Despite many expecting the COVID pandemic to be the last nail in the coffin, four years later, cash is still in widespread use. The future looks bright. Recent figures from the British Retail Consortium (BRC) underscore the story of 2024… Cash is no longer on the way out and is set to remain a critical part of the payment ecosystem and economy for the foreseeable future.
What happened with cash?
The resilience and ongoing importance of cash to payments, finance, and the economy is down to two factors. Firstly, it’s clear now that consumers care. Recent research from PayComplete’s ‘Why won’t cash just die?!’ report found 89% of consumers view the ability to pay in cash as important to customer satisfaction. More importantly, when it is removed as a payment option, only 26% of consumers comply. Meanwhile, an even larger group (36%) vote with their feet and walk away without making a purchase.
It’s not just customer experience that’s impacted by the absence of cash as a payment option. Brand perception also suffers. Research findings discovered nearly half (47%) of consumers believe organisations that don’t accept it are putting profits ahead of customer satisfaction. Moreover, when denied the opportunity to pay in cash, respondents felt a range of emotions, including inconvenience (54%), outright annoyance (52%) and, for those who walked out without making a purchase, anger (16%). Failure to offer this payment choice is a big risk for businesses. It can negatively impact customer satisfaction, brand reputation, and lead to outright anger from customers.
However, the value consumers place on cash goes beyond it being a way of completing a transaction. It is also seen as critical to supporting local communities. Interestingly, the research found 65% of consumers know card payments incur charges for businesses, resulting in nearly a quarter (22%) actively choosing to pay in cash instead. In fact, over half (57%) of consumers want to help businesses save money by paying in cash, which jumps to 71% for small businesses, tipping, and personal services. Paying with cash, therefore, is not simply a way of transacting with a company. For many shoppers, it’s a sign of support.
Regulators and lawmakers protect cash
However, consumers continuing to care is only part of the story. Furthermore, an important factor has been the steps regulators and governments have taken to protect access to cash. In the UK, 2024 was the year that the FCA’s Access to Cash came into force. This made it a legal requirement for banks and building societies across the UK to provide a minimum level of access to cash. Across the pond, similar measures have been taken by Connecticut, Massachusetts, Colorado and Tennessee as US states move to enshrine access to cash into law. With lawmakers realising its importance, and creating regulations to protect access to it, the long-term future of cash is now secure.
What does it all mean?
2024 has been a watershed year for cash and its future. No longer are there debates and discussions about a cashless society. Instead, it is here to stay, and, with that certainty, it makes it far easier for businesses to plan for their own future. Businesses waiting to see what would happen with cash before deciding if it was part of their future now have a conclusive answer and can plan accordingly. Moreover, those who have already taken steps to move towards a cashless future will need to reverse course or risk facing consumer wrath.
The rise of CashTech
The good news for businesses is that cash management and handling technology hasn’t stood still these past few years. There is a combination of smart hardware and software to finally unify management, processing, and handling. CashTech is a new set of solutions that make it quicker, easier, and more efficient than ever before for businesses to handle cash. Combining hardware and software, CashTech solutions enable enterprises to digitise their handling. Making it easy to assess business-critical areas like cash flow management and better support accounting and business management processes. By automating handling, businesses can also avoid the unnecessary costs of discrepancies and inefficiencies from manual processes.
In the coming years, when we look back on 2024, we will see it as the year the future for cash was confirmed. Talk of a cashless future and the death of hard currency was wide of the mark. While cash may not usurp debit and credit card payments, neither will they bring about its end. With the future now clear, it’s time for businesses to adopt CashTech in 2025 and turn inefficient processes into a game-changing competitive advantage.
About PayComplete
PayComplete is the global leader in cash management solutions, combining bleeding edge hardware solutions with game changing software, unifying cash management with other key payments and operational systems. Dedicated to innovating self-service experiences and operations for both consumers and employees, The PayComplete IoT platform is made up of an adaptable set of SaaS and machine software, intelligent devices, and professional, technical and merchant services. PayComplete Connect unifies the management of transactions, users, devices, and data across the enterprise, bringing digital precision to cash transactions and systems. PayComplete serves a broad range of industries, including retail, transportation, financial services, vending, cash centers, mints and more.Industry leaders, work with PayComplete to make their cash transaction-based businesses more innovative, agile, and efficient.
Glenn Fratangelo, Head of Fraud Product Marketing & Strategy at NICE Actimize, on financial services fraud prevention in 2025.
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2024 marked a turning point in financial crime management with the advent of Generative AI (GenAI). McKinsey estimates GenAI could add a staggering $200-340 billion in annual value to the global banking sector. A potential revenue boost of 2.8 to 4.7%. This underscores the transformative potential of GenAI. IT IS rapidly evolving from a futuristic concept to a powerful tool in the fight against financial crime. However, 2024 was just the prelude. 2025 promises to be the year GenAI truly comes into its own. Unlocking transformative capabilities in combating increasingly sophisticated threats.
This evolution is not merely desirable, it is essential. The Office of National Statistics (ONS) reported a concerning 19% year-over-year increase in UK consumer and retail fraud incidents in 2024, reaching approximately 3.6 million. This stark reality underscores the urgent need for financial institutions (FIs) and banks to bolster their defences against financial crime. In 2025, leveraging the power of GenAI is no longer a luxury, but a necessity for protecting customers and safeguarding the financial ecosystem.
The evolving GenAI-powered fraud landscape
Fraudsters have embraced GenAI as a potent weapon in their arsenal. This technology’s ability to create realistic fakes, automate attacks and mimic customers creates a significant threat to the financial landscape.
Deepfake technology has become a particularly insidious tool. By generating highly realistic voice and facial fakes, fraudsters can bypass remote verification processes with ease. This opens doors to unauthorised access to sensitive information, enabling account takeovers and other fraudulent activities.
In addition, the rise of synthetic identities further complicates the challenge. By blending real and fabricated data, fraudsters can create personas that seamlessly infiltrate legitimate customer profiles. These synthetic identities are extremely difficult to detect, as they appear indistinguishable from genuine customers. Making it challenging for institutions to differentiate between legitimate and fraudulent activities.
Phishing scams have also undergone a dramatic evolution, becoming more sophisticated and personalised. AI-driven techniques allow fraudsters to craft personalised, convincing emails that mimic legitimate communications, resulting in significant data breaches.
Harnessing GenAI
GenAI is being used by criminals – presenting a significant challenge in the realm of fraud. It requires advanced AI capabilities such as real-time behavior analytics that use machine learning to continuously analyse all entity interaction and transaction patterns. This can identify subtle deviations from a customer’s typical behaviour. It allows for initiative-taking and the flagging of suspicious activity before any damage occurs. Moreover, providing a significant advantage over traditional, rigid rule-based systems that often fail to detect nuanced threats.
Fraud simulation and stress testing using GenAI can also empower institutions to proactively assess the resilience of their systems. By simulating potential fraud scenarios, financial institutions can identify vulnerabilities and train detection models to recognise emerging tactics. Furthermore, this proactive preparation ensures that defences remain ahead of fraudsters’ evolving methods, creating a more robust and adaptable security infrastructure.
Low volume high value fraud, such as BEC or other large value account to account transfers usually lack the quantity of data needed to optimise models. GenAI can address this by creating synthetic data that mimics real-world scenarios. This approach significantly improves the accuracy and robustness of detection models, making them more effective against new and unforeseen threats.
GenAI has the potential to transform the investigation process by automating tasks such as generating alerts and case summaries, as well as SAR narratives. This automation not only minimises errors but also frees analysts from mundane tasks, allowing them to focus on higher-value activities. The result is a significantly accelerated financial crime investigation process, enabling institutions to respond to threats with greater speed and efficiency.
The battle against fraud in 2025 and beyond
The battle against financial fraud in 2025 and beyond is an undeniable arms race. Fraudsters, wielding generative AI as their weapon, will relentlessly seek to exploit vulnerabilities. To counter this evolving threat, financial institutions must embrace AI to outmanoeuvre fraudsters and proactively protect their customers.
The future of fraud and financial crime prevention hinges on our ability to innovate and adapt. Institutions that view GenAI not just as a challenge, but as an opportunity, will emerge as leaders in this fight. AI is a force multiplier for institutions striving to combat fraud and financial crime, empowering them with smarter, faster, and more adaptive defences, we can create a more secure and trustworthy financial ecosystem. The choice to innovate in the face of adversity will define the path forward and shape the future.
Martin Greenfield, CEO of Quod Orbis, on a troubling paradox within the cybersecurity landscape: despite substantial investments in security infrastructure, confidence levels and actual capabilities remain worryingly misaligned.
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Financial institutions face concrete regulatory pressure on Cybersecurity with the European Union’s Digital Operational Resilience Act (DORA) coming into force in February. This landmark regulation demands robust ICT risk management and comprehensive security monitoring. Currently, many organisations continue to rely on disparate tools and spreadsheets that may leave them vulnerable to sophisticated threats. These include AI-powered deep fakes and targeted spear phishing campaigns.
This challenge transcends the financial sector as organisations across all industries face mounting pressure to demonstrate both security effectiveness and regulatory compliance. Our research reveals a stark reality. Organisations typically maintain an average of 19 security solutions per team. However, a surprising 41% still cite insufficient technology as the primary obstacle to maintaining a robust security posture.
This misalignment points to a fundamental issue. Organisations must recognise effective cybersecurity isn’t achieved through quantity of tools, but through strategic selection of the right solutions. Furthermore, perhaps most concerning is the false sense of security prevalent among IT decision-makers. While 93% express confidence in their infrastructure visibility tools, an alarming 95% acknowledge difficulties in accessing specific digital assets over the past year. This creates dangerous blind spots leaving organisations exposed to both security breaches and compliance shortfalls.
Understanding the Cybersecurity challenge
Today’s enterprise infrastructure resembles a tapestry of critical assets, connections and endpoints. To put this complexity into perspective: IT teams now manage an average of 31 endpoints per person across their organisation. For a company of 1,000 employees, this translates to more than 30,000 devices requiring constant monitoring and protection. This challenge intensifies with the widespread adoption of cloud services, hybrid working arrangements and an ever-growing ecosystem of connected devices.
Scale amplifies these difficulties markedly. Our research reveals organisations with more than 1,250 employees demonstrate the lowest confidence in their existing tools (88%) and face the greatest challenges in accessing critical assets (97%). Moreover, these larger enterprises typically wrestle with an unwieldy combination of legacy systems, bespoke solutions and modern platforms. This results in notably lower visibility rates (79%) compared to their smaller counterparts.
Perhaps most revealing is the stark confidence gap between technical and compliance teams. While 94% of information security directors express confidence in their system visibility, merely 66% of compliance directors share this outlook. This disparity exposes a crucial misalignment between technical capabilities and compliance requirements. One that poses serious operational risks as regulatory frameworks increasingly demand continuous monitoring. Organisations clinging to manual compliance processes face an unstable burden. Teams are stretched thin handling routine tasks while regulations grow more complex. Embracing automated technologies to handle routine monitoring requirements will allow compliance teams to pivot from being reactive box-checkers to strategic risk managers.
Moving from reaction to prevention
The impulse to combat emerging threats by rapidly acquiring new security solutions has led many organisations to create sprawling, inefficient systems. These often compound the very problems they aim to solve.
This reactive approach has trapped organisations in a costly cycle of diminishing returns. Despite substantial technology investments, nearly 40% of firms report a troubling lack of actionable intelligence, while 37% struggle with budget limitations. This paradox is increasingly drawing board-level scrutiny. And rightfully so. After years of approving emergency technology purchases to plug cybersecurity gaps, boards are now questioning the value of new investments. Furthermore, tthis creates a dangerous stalemate: organisations need smarter, not just more, technology investment.
However, a more strategic approach is gaining traction through integrated system monitoring platforms. These comprehensive solutions unite previously disconnected tools under a single dashboard. This can offer real-time visibility across the entire cybersecurity landscape. This unified approach enables teams to identify and address vulnerabilities before they evolve into security incidents. A capability that resonates with the 82% of organisations who recognise enhanced visibility would substantially strengthen their cybersecurity posture.
It’s encouraging that 72% of IT teams have secured increased budgets over the past three years. However, the path forward requires more than mere financial investment. Organisations must shift from reactive spending to strategic deployment. Although this presents its own challenge: convincing board members that additional tooling represents an investment in comprehensive visibility rather than merely plugging security gaps.
The path forward
The transformation from fragmented security to comprehensive oversight demands more than technological upgrades. It requires a fundamental reimagining of how organisations approach cybersecurity monitoring and compliance.
The advantages of this strategic shift are compelling and quantifiable. Our analysis reveals security teams anticipate multiple efficiency gains: 38% expect automation to streamline document creation, 37% foresee improved board pack preparation, and 36% anticipate dedicating more time to strategic security assessments. Perhaps most significantly, 35% predict a reduction in human error alongside enhanced data accuracy. The efficiency gains are substantial. Teams could reclaim up to 60 hours annually per member on board reporting alone, time better invested in strategic security initiatives.
With regulatory frameworks growing increasingly sophisticated across sectors, including the forthcoming DORA regulation, maintaining current practices is no longer viable. The disparity between perceived and actual security capabilities poses a tangible risk that organisations must address proactively.
About Quod Orbis
Quod Orbis is the single source of truth across security, risk and compliance, providing an orchestration layer for the entire tech stack whether in the cloud, on-premise, legacy or bespoke. Founded in 2018, Quod Orbis became part of Dedagroup, one of the leading Italian IT players, in 2024.
A pioneer in Continuous Controls Monitoring (CCM), Quod Orbis provides complete and constant visibility into a company’s cybersecurity, compliance and risk posture. Quod Orbis’ ability to connect with every piece of technology within a business, unrivalled automation capabilities and continual support enables the company to serve a global client base across a wide variety of industries.
‘FlyEasy’ parametric cover is now available on Zurich Indonesia’s Travel Product: offering real-time lounge access for delayed flights
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Blink Parametric, in partnership with Zurich, has launched flight disruption assistance solution ‘FlyEasy’. Coverage is on the Zurich Indonesia direct channel via the Zurich Edge platform. Leveraging parametric technology, the proposition has been designed to instantly activate coverage benefits upon confirmation of a flight delay. This seamless, fully-digital approach provides ultimate convenience to customers, relieving them of traditional claims processes and allowing them to enjoy their travels with greater peace of mind.
The expansion is part of the agreement signed in January 2024. The award-winning flight delay solution can now be offered to Zurich’s customers across Asia Pacific via the Zurich Edge Platform.
Zurich Asia Pacific Network
This integration is the second rollout this year under the framework agreement to offer Blink Parametric solutions to Zurich Asia Pacific network partners and customers across Singapore, Hong Kong, Malaysia, Indonesia and Japan. The first was with Singapore-based OTA Klook in March.
Once a customer registers their flight details pre-travel, Blink Parametric monitors that flight in real-time. Also, in the event of a flight delay of two-hours, the customer will automatically be offered real-time assistance of complimentary access to a VIP airport lounge. The lounge pass will have extended validity with a shelf-life of six-months if not used on the day of disruption. The benefit will be applicable for single trip and annual multi-trip executive and premier international travel plan insurance customers. No claims filing or application processing is required.
Sukma Darman, Head of Digital, Zurich Indonesia commented, “One of Zurich Edge’s key objectives is to bring a fresh perspective on insurance to our partners and customers. We can then deliver personalised, customer-centric solutions using next-gen technology. Blink Parametric have helped us to achieve successful travel insurance integrations for the Asia Pacific region throughout this year. This includes delivery of innovative real-time assistance for our valued customers when they need us.”
Blink Parametric & FlyEasy
“This latest Zurich Indonesia integration coincides directly with our strategic move to further expand and support our business development and partner activities across the APAC region,” says Richard Pollard, Director of Strategic Accounts, Blink Parametric. “Furthermore, our work with the Zurich team this year has been significant, with two successful launches to date. It’s now possible for Zurich partners to tap into the Zurich Edge platform and deploy our real-time travel assistance solution under the FlyEasy brand with speed and efficiency. Exactly how it should be!”
Blink Parametric is recognised as one of the most innovative and successful providers of travel InsurTech solutions to insurers world-wide. It offers real-time assistance and service choices to travellers impacted by flight disruption events. Blink Parametric travel solutions are fully customisable and designed to deliver operational efficiency. Moreover, processing high frequency, low value travel insurance claims when the traveller needs immediate real-time claim resolution.
Benjamin Avraham, CEO and Founder at Okoora – the creators of Automated Business Currency Management, on Embedded Finance in global trade and the challenges of FX risk in global expansion
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Embedded Finance is rapidly emerging as a transformative force in cross-border payments, reshaping how businesses handle transactions across borders. By making payments more efficient and accessible, it is becoming a key tool for companies navigating the complexities of global trade. While the concept isn’t entirely new, its adoption has accelerated, with the sector projected to generate an estimated $230 billion in revenue by 2025.
Trends in Embedded Finance for Cross-Border Payments in 2025 and beyond
Embedded Finance is poised to reshape cross-border payments. It offers innovative solutions to address inefficiencies and create experiences with reduced friction for businesses and consumers alike.
A key trend is the integration of multi-currency wallets. These enable real-time currency conversion and support localised payment methods tailored to specific regions. This not only reduces transaction delays but also enhances accessibility for global users. At the same time, embedded risk management tools are gaining traction. These provide businesses with automated FX hedging options and predictive analytics to better manage currency volatility.
Super apps with embedded cross-border capabilities are becoming more prevalent. These offer all-in-one solutions for payments, investments, and FX management. These apps are especially impactful in promoting financial inclusion, allowing underserved markets to access cross-border payment systems with ease.
The Challenge of FX Risk in Global Expansion
For businesses aiming to expand globally and remain competitive, understanding and managing foreign exchange (FX) risk is paramount. Currency volatility, intricate markets, and hidden costs remain significant hurdles for companies operating internationally. Moreover, the solution lies in leveraging embedded currency risk management, which integrates FX tools directly into business workflows to streamline and mitigate these challenges.
Historically, small and medium-sized businesses (SMBs) have relied on traditional banks for cross-border payment services. However, slow, opaque, and cumbersome banking processes often fail to meet the modern demands for a frictionless experience. SMBs today require more than just service providers—they need trusted partners who truly understand their unique needs and can deliver tailored solutions. Embedded Finance levels the playing field by giving SMBs access to financial tools previously reserved for larger corporations, empowering them to compete effectively in global trade.
On a parallel track, larger players such as payment institutions, corporates, and banks are increasingly recognizing the potential of embedded finance to unlock new market opportunities and enhance the financial ecosystem. According to a recent report by Publicis Salient, embedded finance revenues are expected to grow by 40% annually in the coming years, underlining its critical role in the evolution of global financial services. This is encouraging organizations without in-house capabilities to actively seek partnerships with fintech providers to deliver integrated, relevant, and accessible financial services, while also creating new revenue streams.
Key features of Embedded Finance for Cross-Border Transactions
As businesses continue to navigate the complexities of cross-border transactions, Embedded Finance offers an array of powerful features that streamline processes, enhance efficiency, and mitigate risks. By integrating financial tools directly into business systems, companies can improve operations, reduce costs, and gain greater control over their international payments and currency management.
Below are the key features that make Embedded Finance a game-changer for businesses engaged in global trade:
Streamlining Payments
Frictionless Transactions: Embedded finance integrates payment processing directly into business systems, enabling businesses to send and receive funds across borders without needing separate third-party platforms.
Localised Payment Methods: It supports local payment systems, ensuring businesses can transact with customers and partners in their preferred currencies and payment formats.
FX Risk Management
Automated Hedging: Embedded tools can automatically hedge against currency fluctuations, reducing financial exposure and safeguarding profit margins.
Predictive Analytics: Advanced analytics help businesses anticipate and respond to currency market threats and opportunities.
Reducing Costs & Delays
Lower Fees: By bypassing traditional banking intermediaries, embedded finance platforms often reduce transaction costs.
Faster Settlements: Transactions are processed more quickly, enabling businesses to manage cash flow and working capital more efficiently.
Enhancing Transparency
Clearer Pricing: Embedded finance platforms provide real-time insights into exchange rates and transaction costs, ensuring businesses have full visibility into cross-border payment processes.
Regulatory Compliance: Built-in compliance tools streamline adherence to local regulations, reducing administrative burdens and risks of non-compliance.
Access to Financing
Embedded Credit & Loans: Businesses can access trade financing or working capital loans directly within platforms, supporting growth and smoothing cash flow challenges during cross-border trade.
Supply Chain Support: Financing solutions embedded in procurement platforms help businesses manage large international purchases with ease.
Simplifying Tax & Regulatory Compliance
Automated Tax Calculations: Embedded tools help businesses calculate duties, taxes, and other levies for cross-border transactions.
Built-in Compliance Checks: Solutions automatically ensure compliance with local and international regulations, saving time and reducing risks.
The road ahead for Embedded Finance
The evolution of embedded finance holds the potential to unlock new market opportunities and enhance the global financial ecosystem. Through strong collaboration among fintech companies, regulators, and technology providers, the industry can pave the way for embedded finance to deliver highly relevant financial services in an accessible manner to meet the needs of businesses globally.
About Okoora
Okoora is a leading fintech provider, offering businesses worldwide the financial infrastructure needed to scale their international operations. Recognized by CNBC and Statista as one of the world’s top 250 fintechs, the company’s automated platform, API, and embedded finance solutions empower businesses to collect and send payments, manage multi-currency accounts, and hedge FX risks. Okoora enables seamless operations in over 100 currencies and 180 countries.
Nick Merritt, Executive Director at Designit, on six developments shaping the future of banking in 2025
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Retail banks are entering 2025 with a heady mix of ambition and trepidation. A bewildering blend of technological wizardry and ever-shifting customer expectations has forced banks into a relentless cycle of adaptation. To stay ahead, six key areas are emerging as the lodestars guiding their strategies for the coming year.
Digital Transformation and Automation – Predicting Your Needs Before You Have Them
Imagine a world where banks predict your needs before you’ve even realised them. From AI-driven chatbots that never sleep to robo-advisors whispering bespoke investment tips into your ear, automation is rewriting the rulebook on customer interaction. But the magic isn’t confined to the shiny front-end; back-office systems are also getting a makeover. Robotic Process Automation (RPA) is busy in the engine room, banishing inefficiencies and sidestepping human error with quiet efficiency.
And then there’s the matter of personalisation—a concept that banks are finally treating as more than a marketing buzzword. Armed with advanced data analytics, banks are no longer just responding to customer needs—they’re predicting them. Pre-approved loans or a savings plan tailored to your Friday night wine habit? No problem.
Cybersecurity: Evolving as Fast as the Threats
With this digital power comes a greater need for vigilance. Cybercriminals are evolving just as quickly, turning cybersecurity into a battlefield. AI-driven fraud detection tools now scan for anomalies with hawk-like precision, while biometric authentication methods—fingerprints, faces, even voices—transform our bodies into passwords.
Cyber resilience has become essential, ensuring banks bounce back swiftly from attacks. Trust, in banking as in life, remains hard-won and easily lost.
Sustainability: ESG as a Competitive Advantage
Environmental, Social, and Governance (ESG) criteria have transitioned from being a footnote to taking centre stage. Customers are no longer content with bland promises of responsibility—they’re demanding action. Enter green loans with their tempting interest rates, ESG investment funds that let you save the planet while saving for retirement, and carbon-neutral pledges that make you feel virtuous about your overdraft.
It’s not just a moral imperative; it’s good business sense. In a world increasingly attuned to sustainability, ESG is a differentiator. Banks that can convincingly wear the green badge of honour are more likely to attract eco-savvy customers and forward-thinking investors alike.
Embedded Finance & Partnership Models
Embedded Finance might sound like jargon, but it’s quietly reshaping how we interact with money. Why go to a bank when the bank can come to you—disguised as a “Buy Now, Pay Later” button on your favourite shopping app or as a seamless payment option in your rideshare app? Banks are waking up to the fact that ecosystems, not high-street branches, are where the action is.
Partnerships with fintech firms are unlocking new avenues for growth. Whether it’s integrating loans into car dealership platforms or powering payments for subscription services, embedded finance is giving banks a chance to slip into customers’ lives in ways they barely notice—but deeply appreciate.
Cryptocurrencies: Cautiously Testing the Waters
And then there’s the crypto conundrum. Once the domain of tech evangelists and speculative investors, cryptocurrencies are elbowing their way into the mainstream. Bitcoin ETFs have made it easier for traditional investors to dip a toe into the crypto waters, while Ethereum and Ripple (XRP) are offering solutions that align with real-world banking needs.
Ripple’s laser focus on cross-border payments could revolutionise international money transfers, slashing costs and speeding up transactions. Ethereum’s smart contracts, meanwhile, promise to simplify complex processes like loan approvals. And Bitcoin, the poster child of the crypto world, is slowly gaining traction as a viable payment method.
Yet, it’s not all smooth sailing. Volatility, scalability issues, and a regulatory environment that can best be described as “uncertain” are significant hurdles. Still, with pro-crypto voices gaining ground, 2025 might just be the year retail banks cautiously dip their toes into the digital currency pool.
Personalisation: The Age of “Me”
Customers expect their banks to understand more than just account numbers; they want personalised interactions that anticipate their ambitions. Advanced analytics are turning this into reality, moving banking from transactional to relational.
Imagine a bank that adjusts your credit card rewards for your travel habits or nudges you toward your dream car before you even start shopping. Personalisation isn’t just a service upgrade—it’s a survival strategy.
Looking Ahead to 2025 and Beyond…
The opportunities for retail banks in 2025 are as immense as they are complex. Digital transformation is reinventing customer experiences, ESG is aligning institutions with the values of an increasingly conscientious public. Meanwhile, Embedded Finance is quietly rewriting the rules of engagement. Cryptocurrencies, for all their challenges, are becoming harder to ignore, while data-driven personalisation is making banking feel more like a partnership than a transaction.
For banks willing to embrace these shifts, the rewards are clear: deeper customer loyalty, stronger revenue streams, and a reputation for innovation. Standing still is no longer an option.
Ripple, a leading provider of digital asset infrastructure for financial institutions, has announced Ripple USD (RLUSD) will be available on…
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Ripple, a leading provider of digital asset infrastructure for financial institutions, has announced Ripple USD (RLUSD) will be available on global exchanges. RLUSD is an enterprise-grade, USD-denominated stablecoin. Created with trust, utility, and compliance at its core, it is backed by Ripple’s years of experience working with crypto and the existing financial system.
RLUSD will be initially available on Uphold, Bitso, MoonPay, Archax, and CoinMENA. Additional listings will be made on platforms such as Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, Zero Hash and others in the coming weeks. Each RLUSD token is fully backed by U.S. dollar deposits, government bonds, and cash equivalents. Designed to ensure its stability, reliability, and liquidity. To maintain the highest standards of transparency, Ripple will publish monthly, third-party attestations of RLUSD’s reserve assets, conducted by an independent auditing firm.
“Early on, Ripple made a deliberate choice to launch our stablecoin under the NYDFS limited purpose trust company charter. Widely regarded as the premier regulatory standard worldwide,” said Brad Garlinghouse, Ripple’s CEO. “As the U.S. moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD. They can offer real utility and are backed by years of trust and expertise in the industry.”
A Growing Ecosystem Supporting Global Adoption
Key RLUSD partners include leading global exchanges, market makers, and payment providers. They are set to drive adoption and usage across the Americas, Asia-Pacific, UK, and Middle East regions. RLUSD is ideal for financial use cases and allows institutions to:
Access liquidity for remittance and treasury operations.
Seamlessly integrate with decentralised finance (DeFi) protocols.
Reliably bridge between traditional fiat currencies and the crypto ecosystem. Ensuring a seamless and efficient transition when entering (on-ramping) or exiting (off-ramping) the crypto space.
Provide collateralisation for trading tokenised real-world assets such as commodities, securities, and treasuries onchain.
Early next year, Ripple Payments will use RLUSD to facilitate global payments on behalf of its enterprise customers. Ripple Payments has served $70 billion in payments volume and counting. Furthermore, it has near-global coverage with 90+ payout markets. Moreover, this represents over 90% coverage of the daily FX market. RLUSD is available on both the XRP Ledger and Ethereum blockchains, offering flexibility and scalability for a broad range of financial use cases.
RLUSD: Raising the standard for Stablecoins
Raghuram Rajan, former Governor of the Reserve Bank of India, and Kenneth Montgomery, former First Vice President and Chief Operating Officer of the Federal Reserve Bank of Boston, will join the RLUSD advisory board. They will provide strategic guidance on regulatory, financial, and operational aspects to support RLUSD’s stability and growth.
Rajan and Montgomery join the ranks of the existing advisory board including former Federal Deposit Insurance Corporation (FDIC) Chair Sheila Bair, Vice Chairman of Partners Capital and former CENTRE Consortium CEO David Puth, and Ripple co-founder and Executive Chairman Chris Larsen.
“Stablecoins could become the backbone of private payments by offering a secure, scalable, and efficient alternative to traditional systems. With its focus on compliance and reliability, RLUSD aims to establish new standards for trust and to play a pivotal role in shaping the future of payments. Joining the Advisory Board provides me an opportunity to counsel RLUSD as it embarks on its journey in the rapidly evolving financial landscape,” said Raghuram Rajan, former Governor of the Reserve Bank of India.
“I am excited to join Ripple’s advisory board at such a pivotal moment for digital finance,” said Kenneth Montgomery, former First VP and COO at the Federal Reserve Bank of Boston. “Stablecoins are rapidly emerging as a cornerstone of the payments landscape. They are delivering the speed, efficiency, and cost-effectiveness that traditional systems often struggle to achieve. I look forward to collaborating with the Ripple team to support the global growth and adoption of RLUSD. Unlocking new opportunities for financial inclusion and modernising the future of payments.”
Ripple: modernising the future of payments
RLUSD sets the standard for stablecoins, combining innovative functionality with the regulatory rigor and credibility of an NYDFS-issued New York limited purpose trust company. Furthermore, this highlights Ripple’s leadership in fostering trust and transparency in digital assets.
Ripple’s President Monica Long commented on X: “The release of RLUSD marks a new chapter – both for the XRP Ledger, as well as Ripple, for use in our $70B payments flows. Combining our 10+ years in the business; the rigour and compliance required with stablecoin issuance by a NYDFS chartered company; and an experienced Advisory Board – RLUSD is launching from day one with credibility, utility and a whole host of partners ready to support it!”
FICO’s use of Blockchain for AI model governance wins Tech of the Future: Blockchain and Tokenisation award
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Global analytics software leader FICO has won the Tech of the Future – Blockchain and Tokenisation award. The Banking Tech Awards in London recognised FICO for its innovative work using Blockchain technology for AI model governance. FICO’s use of blockchain to advance responsible AI is the first time blockchain has been used to track end-to-end provenance of a machine learning model. This approach can help meet responsible AI and regulatory requirements.
FICO’s AI Innovation and Development team has developed and patented an immutable blockchain ledger. It tracks end-to-end provenance of the development, operationalisation and monitoring of machine learning models. The technology enforces the use of a corporate-wide responsible AI model development standard by organisations. It demonstrates adherence to the standard with specific requirements, people, results, testing, approvals and revisions. In addition to the Banking Tech award, Global Finance recognised FICO’s blockchain for AI technology with The Innovators award last year.
Responsible AI
“The rapid growth of AI use has made Responsible AI an imperative,” commented Dr. Scott Zoldi, chief analytics officer at FICO. “FICO is focused on technologies that ensure AI is used in an ethical way, and governance is absolutely critical. We are proud to receive another award for our groundbreaking work in this area.”
FICO is well-known as a leader in AI for financial services. Its FICO® Falcon® Fraud Manager solution, launched in 1992, was the first fraud solution to use neural networks. Today it manages some four billion payment cards worldwide. FICO has built advanced analytics capabilities into FICO® Platform, an applied intelligence platform for building decision management solutions.
Adam Zoucha, MD EMEA at FloQast, on how businesses will modernise financial processes in 2025
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With 45% of accountancy firms and in-house finance teams facing talent shortages, 2025 is going to be a critical year for many. Financial transformation is going to be the watchword. The conditions companies are facing will push them to speed up the transformation of their operations, modernising their financial processes while strengthening their company culture and vision.
The year ahead will likely see a continuation of the current period of instability, posing serious challenges for accounting teams looking to grow their business. The impact of global geopolitics is hard to predict which, twinned with the UK economy’s persistently slow growth rate, means companies will need to innovate to succeed – embracing automation, AI, and cutting-edge compliance processes.
It’s not all about the macro trends, though. On an individual level, our research this year has shown that employees are feeling the strain, and business leaders will need to take that seriously in 2025. The talent shortage is a vicious cycle – the harder it is for companies to find and retain talent, the more pressure remaining team members end up having to shoulder. The right technology can play a crucial role in reducing that stress and breaking the cycle.
Alongside those real challenges, there are real opportunities. The accounting business is changing fast, and it’s a great time to be in the industry. As we draw 2024 to a close, here are five key things accounting firms can expect to see in the new year.
Financial Transformation moving up the agenda
We’ve already looked at some of the reasons why financial transformation is going to be critical in 2025, but that doesn’t mean every CFO and accountant in the business is rushing to deliver. Based on our research 60% of accountants and CFOs still do not consider it a top priority – mainly because most don’t truly know what it means for their business, so education is key.
In essence, companies should aim to align their finance functions more closely with their organisational goals, enabling accountants to bring their expertise and insight to the decision-making process. As the finance function’s strategic role grows, there will be an urgent need for agile, digital tools that enhance collaboration and efficiency. For CFOs, embracing this transformation is essential to navigate new complexities with precision and effectiveness.
Accountancy teams will embrace new tools for the future
The talent gap present in the industry is unlikely to change any time soon. It takes time to train people, and accounting has a bit of a PR problem – its status as a secure, skilled job is battling with perceptions of stress and burnout.
As a result, in 2025, leaders will increasingly look to keep accountants motivated, engaged, and fulfilled as the declining population of new candidates continues to heap pressure on accounting teams—a trend that’s unlikely to reverse anytime soon.
It’s essential that business leaders retain their finance professionals by fostering a fulfilling work environment. They can help by upskilling accountants and adopting technologies to reduce mundane and repetitive tasks. CFOs can play a key role by equipping their teams with future-focused skills, blending technology with strategic insight to drive real value within their organisations.
AI will power Tansformation in 2025
Transformation in 2025 won’t be limited to removing internal silos and improving staff retention, crucial though those things are. We’re also going to see AI helping accountants become key players in driving business success. The real value of AI will become apparent this year. For finance teams, it will act as a copilot, automating routine tasks and giving time back to accountants to become strategic assets for their organisations.
This shift will help the industry tackle talent shortages with agility, turning challenges into opportunities for growth. Embracing AI isn’t just about keeping pace; it’s about unlocking accountants’ full potential as key players in driving business success.
Compliance will become a value-generating asset rather than a tick-box exercise
Compliance and risk, when managed properly, can drive real value for organisations. In 2025, the nuanced relationship between compliance, reputation, and risk means it’s likely to move up the corporate agenda.
Technology can be a real driver here, and compliance strategies are fundamental to the larger accounting transformation journey. By taking a more holistic approach to compliance, rather than treating it as a mere check-box exercise, compliance can become a valuable asset. Currently, only 16% of organisations take this strategic view, revealing a significant opportunity for those willing to innovate and elevate their compliance efforts.
Overall, accounting businesses may be facing rough seas, but with the right tools and investments in place, they can unlock new value in 2025: transforming financial processes, improving employee satisfaction, and stepping further into their growing role as strategic advisors.
Bryan Daugherty, Global Public Policy Director at the BSV Association (BSVA) and Co-Founder at SmartLedger Solutions, on how blockchain technology provides the accountability and cybersecurity needed to prevent widespread IT catastrophes across sectors
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By Embracing Blockchain, We Can Create a Safer Digital Future
The rapid increase in cyberattacks poses a severe threat to businesses. These attacks are becoming more sophisticated and costly by the day. The average cost of a data breach in the UK is £3.58 million, and in the US now $9 million. It typically takes 200 days for organisations to detect a breach, followed by another 70 days to contain it. These delays expose significant vulnerabilities in traditional data management systems. They rely heavily on third parties, making them prime targets for cybercriminals.
Blockchain technology offers a transformative solution to these challenges by creating a secure, decentralised model that can effectively mitigate risks. It provides an opportunity for both individuals and organisations to take control of their data. Therefore, improving cybersecurity and ensuring operational resilience.
The Problem with Centralised Systems
Traditional cybersecurity systems are built on centralised models, where data is stored in one location or through third-party intermediaries. This structure makes them attractive targets for cybercriminals, creating a “honeypot” of information that can be breached. A concerning statistic is that, for over a decade, organisations have taken an average of 200 days to detect breaches. Despite claims from cybersecurity vendors that they provide “instant detection,” real-world results show significant gaps in protection, putting data at risk for extended periods.
Blockchain: Game-Changing Cybersecurity Features
Blockchain’s decentralised model provides a powerful alternative. By distributing data across a global network of nodes rather than a central location, blockchain makes it exponentially harder for cybercriminals to compromise large datasets. Even if one node is breached, the entire system remains intact. This eliminates the single point of failure that centralised systems suffer from.
Another key feature of blockchain is its immutability. Once data is recorded on a blockchain, it cannot be altered or erased, making tampering nearly impossible. Therefore, this ensures any unauthorised access is immediately detectable, enabling quicker response times and minimising damage.
Real-Time Threat Detection with CERTIHASH
Blockchain’s potential in cybersecurity is already being realised through solutions like CERTIHASH’s Sentinel Node. A blockchain-based tool that provides real-time threat detection. Built on the BSV blockchain, CERTIHASH can detect breaches within 10 seconds or less, offering a proactive approach to cybersecurity. This is a significant improvement over traditional systems, which often take months to identify breaches, leaving organisations vulnerable to prolonged data exposure.
By leveraging blockchain, cybersecurity shifts from being reactive to proactive. This gives organisations the tools they need to stay ahead of evolving threats and safeguard data more effectively.
Overcoming Misconceptions About Blockchain
Despite the clear advantages of blockchain, many organisations remain hesitant to adopt the technology, often due to misconceptions. Furthermore, some still associate blockchain with cryptocurrencies like Bitcoin, which have been linked to ransomware. This outdated view overlooks blockchain’s real potential as a secure, decentralised data management tool.
Blockchain is not just about crypto; it’s about creating a new standard for data integrity and security. Moreover, it offers decentralised, tamper-proof records that give users control over their own identity and data, reducing reliance on vulnerable third-party systems.
A Decentralised, Secure Future
As global reliance on centralised systems grows, so do the vulnerabilities they present. A single point of failure can lead to widespread outages, as seen in numerous cyberattacks and technical malfunctions. Blockchain, with its decentralised architecture, offers a robust alternative that enhances the security and resilience of critical systems. By distributing data across multiple nodes, blockchain ensures continuity even during attacks or outages.
Conclusion
Investing in blockchain cybersecurity is no longer optional. With cyber-attacks growing in scale and sophistication, organisations must adopt cutting-edge technologies to protect their data, operations, and customer trust. Blockchain’s decentralised and tamper-proof architecture offers the key to building a safer, more secure digital future. One where businesses and individuals alike can operate with confidence, free from the constant threat of cybercrime.
Paul O’Sullivan, Global Head of Banking and Lending at Aryza, on the rise of AI in banking
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The banking sector stands at the crossroads of technological innovation and operational transformation. AI is taking centre stage in reshaping how financial institutions operate. The banking sector is beginning to recognise AI’s potential. It can address challenges, enhance operational efficiency, and deliver more personalised customer experiences.
The Current State of AI in Banking
Research reveals that while a number of banking organisations have yet to fully integrate AI into their operations, key areas such as debt recovery are leading the charge. The slower pace of adoption can be attributed to the highly regulated environment of banking. Because transparency, compliance, and customer trust are non-negotiable. However, despite this cautious approach, banks that have implemented artificial intelligence are already seeing significant benefits, particularly in risk management.
AI’s Role in Risk Management
Effective risk management is a cornerstone of the banking sector. AI is proving to be a powerful tool in this area. By analysing vast amounts of data and providing predictive insights, AI enables banks to mitigate risks early. They can strengthen customer portfolio stability, and make data-driven lending decisions. These capabilities are essential in a landscape where financial risks can escalate rapidly.
Beyond the expected benefits, banks have also reported enhanced customer insights as an unexpected advantage. By leveraging AI to analyse customer behaviours and preferences, banks can tailor their products and services more effectively. Furthermore, they can improve customer satisfaction and experience, whilst fostering long-term loyalty.
Challenges to Adoption
Although organisations are experiencing a multitude of advantages, the integration of AI in banking is not without its hurdles. Legacy IT systems, stringent regulatory requirements, and concerns around data privacy pose significant challenges to widespread adoption. Banks must ensure AI-driven decision-making processes are effective. Moreover, they must also be fully transparent and compliant with industry regulations. Further highlighting the importance of a gradual, strategic approach to AI implementation.
Opportunities Ahead
The potential for AI in banking extends far beyond risk management. From streamlining operational workflows to enhancing customer personalisation and improving decision-making. AI is set to drive innovation across the sector. For example, AI-powered chatbots and virtual assistants transform customer service by providing instant, 24/7 support. They can handle complex interactions, enhancing customer satisfaction. At the same time, advanced analytics enable banks to analyse behaviour patterns, predict trends, and personalise product offerings. Furthermore. enhancing cross-selling opportunities and driving deeper customer engagement. These tools are becoming strategic enablers for innovation in the financial landscape.
A Call to Action
For banks to fully realise the benefits of AI, they must address the digital transformation gap, modernising outdated infrastructures and fostering a culture of innovation. This includes investing in technologies that align with their strategic goals, ensuring robust data security measures alongside maintaining compliance with evolving regulations.
As the banking sector continues its journey towards digital maturity, AI will play a pivotal role in defining its future. By overcoming current barriers and embracing AI-driven solutions, banks can not only enhance operational efficiency but also deliver the seamless, personalised experiences that customers now expect in an increasingly digital world.
About Aryza
At Aryza know that in today’s highly regulated world, there is huge value in quickly guiding your customers through the product that best fit their immediate needs, through a seamless journey that is tailored to their specific circumstances.
We created smart platforms, responsible and compliant products, and a unique system of companies and capabilities so that businesses can optimise their customers’ journey through the right product at the right time.
For our teams across the globe, the growth of Aryza is a good news story and a testament to our clear vision and goals as an international business.
And also front of mind as we build a global footprint is our impact on the environment. Aryza is committed to reducing its carbon impact through the choices it makes and we are pleased to say that we follow an active roadmap.
Misplaced confidence in visibility tools leaves organisations vulnerable amidst record high data breaches, according to latest research
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A new report from Quod Orbis highlights that 95% of businesses are at risk of a cybersecurity blindspot. A reported 93% of UK organisations have confidence in their system visibility. However, nearly all (95%) of them have struggled to access critical assets in the last year, according to the research.
Over a third (38%) actually rank lack of visibility as one of their biggest challenges, further highlighting the gap between respondents’ perceptions and the reality of their situation. This comes at a time when data breaches this year have already surpassed one billion stolen records.
Quod Orbis Cybersecurity Research
Martin Greenfield, Quod Orbis CEO, comments: “Businesses are suffering from a blind spot that’s leaving them exposed. Misplaced confidence in existing cybersecurity tools means these same organisations are susceptible to data breaches and non-compliance fallout. This results in potentially crippling financial and reputational consequences.”
Quod Orbis commissioned a research study with international research house, Censuswide, to poll 500 board executives and IT decision makers, across enterprises of 500+ employees in the UK.
Cybersecurity Tech Stacks
Cybersecurity tech stacks are growing exponentially in the face of rising threats. The average team manages 19 security solutions at any one time. However, 41% still report a lack of technology as being their biggest challenge when it comes to maintaining a robust cybersecurity posture.
As 72% of IT teams have had their IT budget increased in the past three years, Greenfield urges businesses to break free from the typical cycle of throwing money at a problem and hoping something sticks. “It’s not about the biggest investment, it’s about the right investment.”
A quarter (26%) of IT decision makers are yet to allocate budget to basic security tools like asset visibility technology. This is despite 40% reporting a lack of actionable data.
It’s clear though that businesses recognise the advantage of implementing the right technology. More than eight in 10 (82%) agree that greater visibility over digital assets will greatly improve business security. This is a huge leap from the 93% of respondents who believe their businesses already provide them with the necessary tools.
According to the data, most upcoming IT investments will be allocated to Continuous Controls Monitoring (32%), privileged and identity access management (30%) and zero trust (29%).
The Future
Greenfield concludes: “Digital infrastructure has reached a level of complexity that not only warrants, but demands, complete visibility. Now is not the time to gamble with your company’s security. Furthermore, organisations need to stop adding layers of unnecessary technology as a way of solving the immediate problem. Instead, they must take a step back and think holistically about how to resolve their issues.
“Tools like CCM, powered by automation, help teams see and understand their security and risk posture in real time. This offers peace of mind that all of their data is relevant and up to date. This level of insight provides early awareness of potential problems and empowers teams to take a proactive approach to security, instead of being forced back into the same reactive position they’ve been in for years.”
About Quod Orbis
Quod Orbis is the single source of truth across security, risk and compliance, providing an orchestration layer for the entire tech stack whether in the cloud, on-premise, legacy or bespoke. Founded in 2018, Quod Orbis became part of Dedagroup, one of the leading Italian IT players, in 2024.
A pioneer in Continuous Controls Monitoring (CCM), Quod Orbis provides complete and constant visibility into a company’s cybersecurity, compliance and risk posture. Quod Orbis’ ability to connect with every piece of technology within a business, unrivalled automation capabilities and continual support enables the company to serve a global client base across a wide variety of industries.
Innovative Systems, a leading provider of enterprise data, compliance, and integration solutions, has launched FinScan Marketplace
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The platform will serve as a one-stop shop for anti-money laundering (AML) compliance. It offers a streamlined approach to managing compliance risk and unified case management via a central hub for all related activities. FinScan Marketplace positions itself as a trusted partner for organisations navigating today’s complex, global regulatory landscape.
Removing the complexity of AML compliance
“Our goal with FinScan Marketplace is to remove the complexity of AML compliance. We bring everything organisations need into one unified platform,” said Deborah Overdeput, Chief Marketing Officer at Innovative Systems. “This launch reflects our commitment to delivering solutions that simplify processes. We empower compliance teams to work smarter, and ensure organisations remain vigilant. And fully aligned with evolving regulatory requirements in a rapidly changing landscape.”
FinScan Marketplace revolutionises how organisations manage their AML portfolio. It provides a single, easy-to-navigate interface. Customers can seamlessly access a comprehensive suite of tools. These include sanctions screening, KYC checks, adverse media screening, payment screening, and risk scoring, with additional features continually in development.
FinScan Marketplace
At the heart of FinScan Marketplace is its unified case management system. This integrates all critical AML processes into a cohesive workflow. From performing due diligence checks to monitoring transactions and investigating potential risks, customers can manage everything within a single platform. This integration saves time, reduces errors, and ensures compliance efforts remain seamless and effective.
FinScan Marketplace provides customers with a clear vision of the platform’s evolution. Its intuitive interface lets users view in-progress product developments, register interest in upcoming features. Furthermore, they can participate in design feedback sessions. This approach ensures future enhancements align closely with real-world compliance needs.
“We are not just delivering tools; we are creating partnerships with our customers by building solutions that adapt to their challenges,” Overdeput added. “Transparency and collaboration are key pillars of the FinScan Marketplace.”
Innovative Systems for AML
FinScan Marketplace reflects Innovative Systems’ dedication to becoming a trusted partner for a host of organisations. These include financial institutions, insurance companies, fintechs, casinos and gaming entities, charities and non-profits, government agencies, and other organisations it serves. By continuously delivering value, anticipating industry needs, and prioritising customers’ feedback in its development process, the company demonstrates its commitment to supporting effective and reliable AML compliance.
Innovative Systems delivers enterprise data, compliance, and integration solutions through the company’s leading FinScan®, Enlighten®, and PostLocate® brands. These solutions offer actionable insights and enable organizations to identify the hidden opportunities or risks in their data. We have pioneered best-in-class data quality, data management, and risk and compliance solutions in thousands of applications across more than 65 countries. Our cloud-based (SaaS), on-premise, and hybrid offerings deliver dramatic, measurable improvements in accuracy, cost, and time to production over alternatives. Learn more at innovativesystems.com
About FinScan
Trusted by hundreds of organisations worldwide, Innovative Systems, Inc.’s FinScan offers advanced Anti-Money Laundering (AML) compliance technology and consulting solutions. Built on decades of experience in data management and proprietary matching technologies, FinScan provides a data-first, risk-based approach to ensure unparalleled accuracy and efficiency in identifying and reducing risk, accelerating AML compliance workflows, and optimising team productivity. FinScan’s comprehensive, integrated platform includes Know Your Customer (KYC), unparalleled sanctions screening, risk scoring, data quality, and advisory services for implementing a holistic compliance program. FinScan offers flexible deployment including SaaS, on-premise, and hybrid options. FinScan’s SaaS clients are screening more than 300 billion names a year. Learn more at finscan.com
Alex Mosher, Chief Revenue Officer at Armis, on why businesses are prioritising their cybersecurity budgets, ensuring they have the resources needed to counteract emerging threats
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Cybersecurity is no longer optional. In 2025, we expect a significant uptick in overall spending. With threats becoming more sophisticated, organisations recognise the imperative to invest adequately in cybersecurity measures. This trend is driven by the growing awareness that the cost of a cyber-attack far outweighs the investment required to prevent it.
In 2025, there will be a marked shift toward comprehensive security solutions that offer integrated functionalities. Companies will increasingly seek platforms that provide threat detection, incident response, and compliance management within a single solution. This trend arises from the need to simplify security management and reduce complexity. Siloed solutions are ineffective, expensive and reduce the efficiency of security teams with finite resources. Furthermore, by consolidating various security functions into a unified platform, businesses can streamline their processes and enhance their overall security posture. Integrated solutions offer a holistic approach to cybersecurity, addressing multiple aspects of an organisation’s security needs. The move toward comprehensive solutions also reflects a broader understanding of the interconnectedness of cybersecurity elements. A unified solution that addresses multiple areas provides a more robust defence against potential breaches.
Emphasis on Automation and AI
Automation and artificial intelligence (AI) are revolutionising the cybersecurity landscape. Organisations increasingly prioritise spending on AI-driven security solutions to enhance threat detection and response capabilities. The focus will be on tools that streamline incident response, reduce manual workloads, and enable security teams to focus on more strategic initiatives. Moreover, the trend will also include spending on analytics tools that help organisations understand and mitigate risks based on the current threat landscape. Threat intelligence and analytics play a pivotal role in enhancing an organisation’s security posture.
AI technologies offer a proactive approach to cybersecurity, allowing organisations to identify and mitigate threats in real-time. By leveraging machine learning algorithms and data analytics, businesses can gain deeper insights into potential vulnerabilities and respond swiftly to emerging threats. The emphasis on automation and AI is driven by the need to enhance efficiency and effectiveness in cybersecurity operations. By automating routine tasks and employing AI for advanced threat detection, businesses can optimise their resources and achieve a more robust security posture.
Investment in Cloud Cybersecurity Solutions
The migration to cloud environments continues to accelerate, driving the need for robust cloud security solutions. Key investment areas will include cloud security posture management (CSPM) and cloud workload protection platforms (CWPP). The emphasis on cloud security reflects the growing reliance on cloud services for business operations. Moreover, organisations recognise that securing their cloud environments is paramount to safeguarding digital assets and ensuring regulatory compliance. Investments in cloud security solutions also align with the broader trend toward digital transformation. Businesses are leveraging the cloud to drive innovation and agility. This neessitates a strong security framework to protect their evolving digital ecosystems.
Enhanced Budgeting for Compliance and Regulatory Needs
Data protection and privacy regulations are becoming increasingly stringent worldwide. Also, this necessitates enhanced budgeting for compliance-related cybersecurity solutions. I expect organisations to allocate more resources to auditing tools, risk management platforms, and solutions that help them meet regulatory requirements such as GDPR, CCPA, and HIPAA.
The emphasis on compliance reflects a growing awareness of the legal and reputational risks associated with non-compliance. Investing in compliance-related solutions also aligns with the broader trend toward data-driven decision-making. Moreover, by implementing tools that ensure alignment with regulatory requirements, organisations can demonstrate their commitment to ethical data practices and build trust among stakeholders.
Growth in Cybersecurity Insurance Expenditures
Cyber insurance is becoming an essential component of an organisation’s risk management strategy. The growth in cybersecurity insurance expenditures reflects a broader awareness of the financial implications of cybersecurity threats. Investing in cyber insurance aligns with the emphasis on accountability in cybersecurity spending. By securing coverage for potential losses, businesses can demonstrate their commitment to protecting their assets and ensuring business continuity in the face of unforeseen events.
By understanding the key cyber spending patterns outlined here, businesses can make informed decisions. They can enhance their security posture to protect their valuable assets and ensure business continuity as we move into 2025.
Yuno enables organisations to transform online checkout experiences, allowing customers to pay securely without the need for passwords
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Yuno, a leading global payment orchestrator, announces that Mastercard’s Click to Pay at checkout is now available to all Yuno clients.
Click to Pay helps improve customer experience by ensuring purchases can be made securely and quickly with just a few clicks. It significantly decreases the instances of cart abandonment that plague the e-commerce industry. According to Mastercard research, nearly two-thirds of shoppers still struggle through manually entering their card details. Around 25% of carts are abandoned because checkout is too complex or slow. The average online shopping cart abandonment rate worldwide reached 70.19% in 2023, according to Statista. This resulted in an estimated $260 billion recoverable loss in e-commerce sales annually in the US and EU alone. Plus, fraud rates are seven times higher online than in stores. Criminals exploit exposed card numbers, creating headaches for cardholders and huge losses for merchants and card issuers.
Click to Pay with Yuno and Mastercard
Yuno’s single-click Click to Pay integration, which is enabled in 40 markets across the world, goes beyond just reducing cart abandonment. It also translates to increased sales and conversions for merchants with digital payments. Yuno offfers a secure and familiar digital checkout option trusted by millions of cardholders worldwide. It empowers businesses to boost customer confidence and improve the shopping experience. Yuno’s ability to offer Mastercard Click to Pay access to merchants is especially crucial for businesses expanding into new markets, where brand recognition can be a challenge. With Yuno, merchants can offer a globally recognised payment solution that eliminates friction at checkout almost anywhere in the world.
Yuno
Juan Pablo Ortega, Co-Founder and CEO at Yuno, commented: “At Yuno, we are constantly seeking out the best solutions to streamline payment processes and enhance security, while delivering speed. Making Mastercard’s Click to Pay at checkout feature easy to integrate for all of our customers supports our commitment to removing barriers to global commerce. We’re making sure our customers can focus on running their businesses without any unnecessary headaches.’’
Mastercard
Diego Szteinhendler, Senior Vice-President, Fintechs, Merchants and Digital Platforms, Mastercard Latin America and the Caribbean, added: “Digital consumers expect an intuitive, frictionless and secure experience. To support this demand, we’ve built a robust digital infrastructure with a suite of acceptance and payment services, including Click to Pay. Through partnerships like the one with Yuno these are becoming available to millions of consumers across Latin America and beyond.”
Yuno’s clients, including Viva Aerobus, Bacu, and Habibs, have already begun taking advantage of Mastercard Click to Pay at Checkout via Yuno. It is helping them deliver a secure and convenient user experience for their customers across the globe.
About Yuno
Yuno has emerged as a dominant force in global payment orchestration, with a core mission to empower global commerce by enabling businesses of all sizes to accept and disburse payments anywhere in the world, fostering financial inclusion. It enables businesses to access over 300 payment methods worldwide as well as innovative features including one-click checkout, smart routing, and robust anti-fraud tools via a single unified, easy-to-use interface. Yuno serves a global customer base that includes McDonald’s, inDrive, Rappi and other renowned brands across more than 80 countries.
Waheed Mahmood, Financial Services Lead at Rackspace Technology, on how cloud is elevating CX in the financial services industry
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The importance of customer experience (CX) in financial services is growing. In July 2023, the Financial Conduct Authority (FCA) published its Consumer Duty guidelines, designed to set clearer standards of protection for consumers of financial services. The Consumer Duty was created to ensure that financial institutions (FIs) act fairly, while preventing customers from making poor financial decisions.
Despite the guidelines being implemented over a year ago, some FIs are still struggling to meet customers’ needs and are not working hard enough to protect them. In October 2024, for example, the FCA fined TSB Bank Plc £10,910,500 for failing to ensure that customers in arrears were treated fairly between 2014 and 2020.
According to Forrester, there has also been a significant decline in EU bank customer experience (CX) quality in 2024. This matters, because as CX quality declines, so does customer loyalty. Financial service executives must step up their game if they want to stay competitive and earn this loyalty. FIs that leverage technology can increase customer satisfaction, reduce the cost to serve and boost conversion rates and profitability. As we look ahead, here are some ways FIs can harness technology to drive customer satisfaction in 2025 and beyond.
Driving CX through the Cloud
The Consumer Duty’s objective was to guide individuals toward sound financial decisions. To achieve this, FI’s must leverage data and analytical insights. However, legacy systems often hinder effective data sharing and analysis, limiting the ability to provide personalised guidance.
Private cloud technology empowers banks to modernise their legacy systems. This can increase agility with the delivery of new services and products, enabling them to create and deliver enhanced CX. This includes offering seamless digital experiences, from smart self-service options and instant transaction tracking to tailored financial guidance and decision-making. Banks can also use cloud analytics to spot user pain points and service disruptions early, directly improving both customer satisfaction and profitability.
The integration of cloud services with existing banking systems also enhances data flow and interoperability. Real-time analytics platforms, such as Azure Stream Analytics help process and analyse vast amounts of data. This can reveal valuable insights into customer behaviour and preferences. Banks can then offer personalised advice and services, boosting customer satisfaction and interaction.
To maximise these benefits, FI’s need to ensure these customer insights are shared across departments. Eliminating departmental silos can drive improvements in product development, marketing strategies, and customer service protocols. Success requires integrating design expertise and data capabilities – involving teams from every business function to build a data framework and platform. This integration will help convert customer insights into actionable improvements.
Double down on service innovation for CX
Before leveraging cloud technology, FIs must evaluate their current technology stack to identify weak points before embarking on digital transformation initiatives. Legacy systems, which many FIs still depend on put them at a disadvantage as customer demands and expectations grow. This outdated infrastructure is particularly vulnerable, leaving sensitive customer data exposed to risk.
By updating their technology stack, FIs can improve customer interactions while streamlining critical systems for transaction handling and personalisation. These work together to deliver an experience that aligns closely with individual customer needs.
FIs are also leveraging machine learning to gain insights into customer spending patterns, enabling them to offer personalised financial advice and recommendations. Additionally, GenAI is reshaping CX; AI-driven chatbots, for example, offer instance guidance and assistance, freeing up human staff to focus on more complex issues. However, to maximise the benefits of GenAI, FIs need robust infrastructure in place. GenAI models require high-quality, well-structured data for training and precise forecasting.
A cloud-based platform is particularly well-suited for FIs with specific demands around control, security and workload customisation. By adopting this approach, institutions can meet the high storage and encryption requirements of GenAI, thereby, enhancing both system performance and data security – key factors in scaling these technologies.
To respond to a continued decline in customer experience quality, financial service providers must make this a strategic priority. Delighting and engaging customers on a personal level has become vital and institutions that satisfy these expectations will be best equipped to attract new clients and build enduring loyalty.
Mastercard collaborates with Qover to offer embedded return service for hassle-free shopping in Belgium and Luxembourg
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Qover, a leading insurtech company committed to building a global safety net, and Mastercard are joining forces to improve the online shopping experience for Mastercard credit cardholders in Belgium and Luxembourg. Furthermore, with Qover’s platform, Mastercard now offers a return shipping cost protection service that refunds shipping fees when retailers don’t provide free returns. Available now on mastercard.be and mastercard.lu, this protection is unique in Belgium and Luxembourg.
Easy protection for Mastercard credit cardholders
This new protection arrives as nearly 9 out of 10 Belgians shopped online in early 2024, with clothing remaining the top category. Moreover, Mastercard’s return protection, available to all credit cardholders, provides reimbursements on shipping costs for returns. Also, it offers coverage up to €30 per return and a maximum of three claims or €90 per cardholder annually.
“Embedded protection is becoming a strategic tool for businesses to enhance customer value and build loyalty. We’re honoured by Mastercard’s trust and are excited to bring this innovative solution to their cardholders.”
Quentin Colmant, CEO and Co-founder of Qover
Technology driving customer-first experiences
Using its AI-driven platform, automations and advanced data extractions, Qover makes return protection easy and accessible. Also, users can quickly find coverage details or submit a claim in just a few clicks. “Customers receive instant updates on the status of their claim, keeping them informed every step of the way”, explains Parker Crockford, Chief Revenue Officer at Qover.
For Mastercard, this technology strengthens loyalty and sets its credit cards apart in a competitive market. The solution is designed for digital-first users who want simple, personalised services.
“We’re excited to unveil this new solution in collaboration with the rising star of European insurtech, Qover. This unique protection reinforces the value of Mastercard credit cards for online purchases and enhances the online shopping experience for our Belgian and Luxembourg cardholders.”
Henri Dewaerheijd, Country Manager, Mastercard Belgium and Luxembourg
This initiative is a key step for Qover in delivering hyper-personalised embedded solutions to meet diverse consumer needs. Qover aims to expand this tech-driven solution across Europe.
Mastercard integrates its Multi-Token Network (MTN) for tokenized deposits and tokenized assets with Kinexys Digital Payments (formerly JPM Coin)
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Mastercard’s blockhain Multi-Token Network (MTN) has connected to Kinexys Digital Payments as a payment settlement solution. This will enhance the availability of B2B cross-border payments to business applications on MTN.
Kinexys Digital Payments is a next-generation payment rail powering real-time value transfer. Also, it uses commercial bank money and is offered through Kinexys by J.P. Morgan, the firm’s Blockchain business unit.
Mastercard’s MTN brings together a set of API-enabled, blockchain-based tools and standards for innovative business models under one platform.
Kinexys by JP Morgan and Mastercard are respectively providing solutions designed to improve the efficiency of commercial transactions. Furthermore, these solutions aim to improve the cross-border payment experiences common for such transactions. They will achieve this by providing greater transparency and faster settlement as well as reducing time zone friction.
By integrating Mastercard MTN’s connectivity with Kinexys Digital Payments, mutual customers of MTN and Kinexys will be able to settle B2B transactions through a single API integration.
Kinexys – JP Morgan’s Blockchain business unit
“At Kinexys, we believe our solutions can play a transformative role in the ecosystem for digital global commerce and digital assets, where the value proposition of commercial transaction venues is enhanced by the availability of commercial bank payment rails that can natively integrate with any digital marketplace or platform. We look forward to supporting our clients engaging with the MTN ecosystem and collaborating further with Mastercard in the digital space.”
Naveen Mallela, Co-Head of Kinexys by JP Morgan
MTN – Mastercard’s Multi-Token Network
“For years, both Mastercard and Kinexys by JP Morgan have been committed to innovating for the future of digital asset and commercial infrastructure. By bringing together the power and connectivity of Mastercard’s MTN with Kinexys Digital Payments, we are unlocking greater speed and settlement capabilities for the entire value chain. Moreover, we are excited about this integration and the new use cases it will bring to life, leveraging the strengths and innovations of both organisations.”
Raj Dhamodharan, executive vice president, Blockchain and Digital Assets at Mastercard
Ozge Celik, Head of Product at Turkey’s largest FinTech Papara, on how personalisation is making everyday financial transactions more manageable and embedded into our lifestyles
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With unlimited choice from a global marketplace, customer expectations are continuing to reach new heights. Undeniably, we are seeing financial services – being led by the FinTech sector – undergoing a seismic shift towards personalisation and catering to this new form of demand. Users are no longer content with generic services. Furthermore, they want tailored, hyper personalised experiences that reflect their individual needs and preferences. This is particularly true for their banking experiences. Yet, many traditional banking institutions are struggling to keep up with these demands due to their legacy systems and traditional cookie-cutter approach. Whereas the FinTech industry, with its agile frameworks and state-of-the-art technologies, is demonstrating its capability to rapidly position solutions that cater to this demand.
The growing trend for personalisation
Personalisation in consumer services is not a novel concept, but its application within the financial sector is a relatively recent development. Despite its infancy, its impact on the industry is profound. Banking has always been a cornerstone of our daily lives, from withdrawing cash to transferring funds. As such, it is unsurprising that users increasingly view their financial services as an extension of their personal identity.
Over the past decade, we have seen the introduction of customisable physical bank cards, personalised digital tools on mobile banking apps and instant messaging services. Banks and fintechs are striving to meet users’ needs, reshaping the loyalty landscape that has traditionally favoured established banks. These institutions, with their often rigid and cumbersome systems, are being compelled to re-evaluate their user engagement strategies and the solutions they offer.
Leading the customisation charge
Startups and FinTechs are riding the crest of this wave of customisation. Traditional financial institutions frequently overestimate the costs associated with data collection and the development of meaningful personalised tools. FinTechs, on the other hand, harness their technological capabilities to sift through vast amounts of data, identifying individual preferences and behaviours. This insight enables them to better create personalised products and services that resonate with consumers on a deeper level. Offering such tailored experiences is not merely a competitive advantage; it is quickly becoming essential to attract and retain users.
The rise of the super app
The emergence of the super app epitomises this new paradigm. The inconvenience of managing multiple mobile banking apps is becoming a thing of the past as consumers increasingly favour a unified platform that addresses all their financial needs. This demand extends beyond financial services. The success of super apps like Alipay and WeChat Pay, which integrate services from ride-hailing to grocery shopping, illustrates how this model has become ingrained in everyday life. While the same level of adoption may not be universal due to various market factors, FinTechs are taking note and developing intuitive apps that combine financial and non-financial functions to deliver a seamless and efficient user experience.
FinTech’s personalisation extends to every facet of the financial journey. From customised budgeting tools and investment portfolios, to personalised insurance products and bespoke lending solutions, providers are redefining what it means to have a financial service that truly fits the individual.
The implications for personalisation in traditional banking
To stay relevant, banks must embrace digital transformation and consider partnerships with FinTechs or face the risk of further falling behind. Collaboration between established financial institutions and FinTech disruptors can yield the best of both worlds: the trust and scale of traditional banks combined with the innovation and agility of fintech.
As FinTechs continue to meet and exceed the hyper-personalised needs of consumers, they are establishing a new benchmark in the financial services industry. By making everyday financial transactions more manageable and integrated into our lifestyles, they are not merely responding to consumer demands but are also anticipating them. As this trend progresses, we can expect to witness further disruption, with fintechs at the helm, steering us towards a more personalised and accessible financial future for all.
About Papara
We are not a Bank; we are Papara, we are here for you.
We are a financial technology company that offers a new financial application experience. Keeping the user in mind against the traditional financial solutions, we strive to build the next generation financial super app. Our amazing community always suggest features and gives us constant feedback.
We integrate the most innovative technology to help our users control their money while being completely transparent.
In 2015,we started our services with the permission we received from the Banking Regulation and Supervision Agency to operate as an “Electronic Money Institution”.
Papara is the first non-bank to issue a Mastercard logo prepaid card in Turkey and currently a Mastercard, Visa, and Interbank Card Center member. In our seventh year of operation, we have acquired 21 million users and expanded our team to 1.000 happy people dedicated to creating the best financial experience.
Today, millions of our users choose Papara’s innovative products to make millions of transactions every month.
Jamil Jiva, EVP at Linedata, on compliance in asset management following the EU AI act
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AI’s value-add has shifted from speculative to tangible in recent years. For consumers, it’s brought convenience; for businesses, invaluable timesaving. In the asset management space however, its impact is transformative. It can help assess choice, trust, and risk in seconds. AI isn’t just improving efficiency, it’s fundamentally reshaping decision-making processes.
It’s clear artificial intelligence is achieving widespread adoption among asset managers. Linedata’s recent global survey showed that 36% of asset management companies have already integrated AI into their operations. A further 37% are preparing to introduce it.
However, adopting new and evolving technology can prove to be a long-term challenge. Asset managers have to adapt to regulation as it changes. For example, the newly enacted EU AI Act is designed to regulate high-risk uses. It seeks to ensure safety, transparency, and accountability. With new regulations arriving thick and fast, companies should avoid rushing their implementation or cutting corners. Compliance should be their first and last thought.
AI can bring immediate benefits in optimising efficiency, streamlining operations, and boosting decision-making capabilities. The newly enacted EU AI Act will push firms planning to take a more measured approach to deploying artificial intelligence. This will necessitate a long-term, compliance-driven approach.
The New Compliance Landscape
The EU AI Act marks a turning point for AI governance. For the financial sector, the act will put explainability at the fore of AI-augmented decisions. For asset management firms, which increasingly rely on AI to drive decisions related to market forecasts, risk modelling, and portfolio management, the act mandates a robust approach to accountability.
Asset management firms that use AI must now prioritise governance or risk severe penalties and long-term reputational damage. As firms adjust to the EU AI Act, they must recalibrate their AI strategies and implement future-proof frameworks that blend innovation with security and ethical standards.
Hybrid AI Systems: Creativity and Control
One promising approach to the new regulatory environment is hybrid AI. Hybrid systems marry proprietary data with third-party models. With a blended strategy firms retain full oversight over sensitive tasks – such as decision-making models . Meanwhile, outsourcing less critical functions like data analysis or back-office automation to third-party vendors.
However, hybrid systems bring their own challenges under the EU AI Act. The new regulation imposes strict requirements for transparency. This means firms must ensure that any external solutions they adopt meet the same high standards of risk management and documentation. This necessitates a more in-depth vetting process for third-party providers and ongoing oversight to guarantee compliance. Effective governance, therefore, hinges not just on internal processes but also on the integrity and transparency of external systems and partners.
Despite these complexities, hybrid AI presents an opportunity for asset managers to continue innovating without compromising on compliance. By carefully managing these systems, firms can position themselves to harness the full potential of artificial intelligence while mitigating the risks associated with regulatory breaches.
Building a Sustainable AI Strategy
While the EU AI Act certainly raises the bar for compliance, it also presents an opportunity for firms to create more sustainable, future-proof strategies. Much like how the GDPR transformed data governance, the AI Act could drive a more comprehensive approach to artificial intelligence oversight, encouraging firms to adopt stronger ethical frameworks while staying ahead of regulatory shifts.
For asset managers, investing in adaptable AI infrastructures is one way to navigate these regulatory demands. By focusing on systems that are both flexible and scalable, firms can ensure they remain compliant with evolving regulations without sacrificing the pace of innovation. In particular, areas like predictive analytics, ESG reporting, and portfolio management stand to benefit from such advancements, provided firms integrate transparency and accountability into their strategies.
Asset managers who view regulatory challenges as opportunities – rather than obstacles – will emerge as leaders, showcasing a commitment to ethical AI that can ultimately build trust with clients and regulators alike. While the EU AI Act may seem daunting at first, for those who embrace the changes, it offers a chance to redefine how artificial intelligence can shape the future of asset management.
Zachary Scott, Managing Director at Publicis Sapient on Buy Now Pay Later demand in the UK and the changing nature of CX in 2025 and beyond…
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In the dynamic world of consumer Embedded Finance, Buy Now, Pay Later (BNPL) services have become a game-changer. They offer shoppers greater flexibility and convenience. BNPL allows consumers to make immediate purchases while spreading payments over time, often without interest. Its popularity skyrocketed during the pandemic. Fuelled by the e-commerce surge, it continues to play a pivotal role in shopping habits. Recent surveys reveal that 39% of U.S. consumers plan to use BNPL within the next six months.
This growth isn’t confined to the U.S. It’s a global phenomenon. U.S. fintech giant Affirm recently launched its BNPL services in the UK, marking its first international expansion. Affirm selected the UK due to strong demand from merchants eager to incorporate flexible payment options into their offerings.
The BNPL boom reflects a broader trend in Embedded Finance, which integrates financial services seamlessly into non-financial interactions. BNPL, for instance, embeds financing directly into the retail experience. This allows consumers to access payment plans as part of their shopping journey. This integration simplifies the traditionally separate processes of purchasing and financing, creating a smoother, more user-friendly experience.
Optimising customer experience for Embedded Finance
The value case for Embedded Finance is based on this seamless customer experience and the opportunities it offers to enhance the services offered. Partner companies are able to provide financial services without having to maintain extensive and complex financial infrastructure, leveraging technology to facilitate these offerings instead.
Already, several opportunities are emerging that are poised to propel the growth of embedded finance into new sectors and applications. Banks and retailers should be prepared to seize opportunities from embedded insurance products, embedded wallets in non-financial apps, and new forms of embedded lending that go beyond the existing BNPL instalment model.
Consolidating Services
However, to succeed in this next phase, financial service providers and their partners will have to keep pace with and be ready to adapt to changing consumer preferences and requirements. Staying ahead of the curve takes more than just improving individual interactions. It involves curating a comprehensive journey that aligns with consumers’ expectations for simplicity, transparency, and flexibility. People are increasingly seeking a mobile-first platform that caters to both their financial and non-financial needs in a single, unified space. Driving further consolidation of customer journeys through Embedded Finance is likely to be a critical strategy for industry leaders in the next wave of adoption.
Advancements in open banking protocols and the rise of new FinTech ventures are setting the stage for more integrated financial and non-financial services, further blurring the boundaries between these two traditionally distinct customer journeys. Emerging trends in Generative AI and conversational banking will also contribute to the enhanced customer experience. These technologies are set to shape consumer expectations, with more and more people looking to access support and services through conversational experiences. Embedded Finance is no exception.
New Opportunities
For financial service providers, embracing these trends opens myriad possibilities. Leading the charge in Embedded Finance can contribute to customer acquisition, generate direct revenue from the new services offered, and enable cross-selling of other financial products.
For partners within the Embedded Finance ecosystem, the opportunities are equally substantial. As well as driving Net Promoter Score (NPS), they can unlock new referral or commission-based revenue streams.
It’s clear that the future of consumer finance is deeply linked to the progress of Embedded Finance. As more offerings beyond BNPL emerge, the boundary between financial services and non-financial experiences can become increasingly blurred. For providers and partners ready to embrace this change and leverage it to meet evolving customer needs, this represents a substantial opportunity.
FinTech Connect shapes the future of financial services with the UK’s only full FinTech ecosystem event at London’s Excel December 4-5
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Join us as FinTech Connect welcomes world leading Fintechs, Financial Institutions, Challenger Banks, Merchants, Scale-Ups and StartUps, Investors, Accelerators and Media to The ExceL, London.
FinTech Connect
Each year we welcome visionaries from the UK, Europe and beyond all looking to innovate within the market, expand their footprint and drive businesses forward. The event brings all this under one roof, over two insight-packed days, sparking ideas, forging partnerships and accelerating change.
Tackling the hottest topics and biggest challenges in the fintech market. Including: embedded finance, Web3, cross-border payments, investment, scaling, Gen AI, crypto, regulation, digital innovation and customer experience (CX).
Our mission is to connect the global thought leaders across the FinTech ecosystem in an event like no other. Set yourself up for a strong 2025 by signing up for the UK’s only full FinTech ecosystem event and join 2,000+ fintech leaders in London.
Insights from FinTech’s biggest names
We’ll be asking the big questions… What AI elements do financial institutions need to follow? Build, buy or partner? What opportunity works best in the modern ecosystem? How are banks advancing their digital transformations in 2024? Who owns the CX?
Gain insights on these topics and more from some of the biggest names in financial services. Speakers include Victoria Cleland, Executive Director – Payments, Bank of England; Rory Tanner, Head of UK Government Affairs at Revolut and Nick Kerrigan, Managing Director, Swift. Thought leaders will also be taking to the stage from HSBC, DZ Bank, Lloyds Banking Group, BT and a host of other leading institutions.
Keep up to date with the latest speakers, discussions and more. Download the full agenda here.
Seth Ruden, Director of Global Advisory at BioCatch, on how the UK’s financial institutions can be better prepared to deal with authorised push payment (APP) scams
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The focus on authorised push payment (APP) fraud scams – where scammers impersonate reputable individuals or institutions – has increasingly shifted to whether banks should reimburse customers for funds stolen by scammers. We can gain valuable insights from the approaches taken by financial institutions in the UK. They are leading the way with their cybersecurity efforts compared to their counterparts in other regions.
First, British banks established a standardised reporting system and typology. This is a fundamental first step that every financial institution should take to grasp the full scope of how financial fraud affects banking consumers. Banks may disclose the type of fraud, the amount of money stolen, and the bank measures used to prevent the scam from occurring. This centralised view brings the true scope of the totality of scams into focus.
Three ways the UK’s financial institutions are leading in the fight against fraud
Second, the UK has developed strategies to identify specific scams and reduce their losses. The regulator added a slew of new controls to banks, including confirmation of payee, scam and transaction-specific interventions, and money mule account controls for those receiving the illicit funds. Before regulation, not every financial institution had implemented these controls, providing an uneven playing field and allowing scams to flourish. Banks outside the UK should not wait for regulators to mandate controls like these. They should do it on their own accord to prove they realise the magnitude of the scam problem and the severity of its impact on bank customers.
Improved consumer financial scam controls should be a minimum requirement for financial institutions in 2024. These controls should cover: authorised push payment behavioural analysis, money mule behaviour around both account opening and account activity, and analysis of both inbound and outbound transactions. Furthermore, detecting and then closing money mule accounts – used by fraudsters as an intermediate stop between the victim’s account and the final destination for the stolen funds – is absolutely critical, as they serve as the backbone for every consumer-based financial scam.
The third? Getting involved. Banks need to integrate themselves and participate with industry and trade associations – such as the FS-ISACs and GASA (Global Anti Scam Alliance). These associations provide opportunities to network with peer institutions and others in the fraud value chain to share scam information and learn from each other.
Effective Fraud Prevention: A practical assessment of Key Strategies
Many banks today use precision anomaly detection and behavioural biometrics to notify them when a fraudulent transaction takes place. Financial institutions in the UK often issue actionable alerts to clients in real-time. Santander UK, for example, now asks customers if they have seen the item in person before approving a payment through Facebook Marketplace. For online account opening, there are good solutions for bot-detection to prevent automated bots from opening new accounts, behavioural biometrics to detect suspicious patterns of data entry, and solutions that can analyse the customer KYC data. A secondary benefit of strong account opening controls is the reduction of operational costs to close bogus accounts.
For detecting existing money mule accounts, traditionally it required tracking the circulation of funds, both the inbound and outbound transaction activity and looking for anomalies (e.g. high value in and then immediately transferred out). Now, user behaviour anomalies – such as changes in the user’s input/output device activity or navigation preferences – may indicate a change in account control before the suspicious transactions take place.
Protecting Customers: What the future holds for Financial institutions
Since the UK’s introduction to faster payments, the region has become a centre of research for the rest of the world. However, eliminating threats to UK customers and their money has remained difficult despite an increase in regulation. While Governments and international groups are starting to identify and take down some of these organisations there are still hundreds of thousands of scammers and coerced individuals involved in these intricate schemes. A key challenge for financial institutions is understanding how scammers get their customers to initiate authorised payment. However, these challenges can be combatted by understanding the psychology behind how scammers work which can be a prominent factor in tackling the problem. Financial institutions must ensure that, in a few years’ time, they can confidently answer ‘yes’ to the question: Did we do enough to help eliminate consumer financial scams?
Ozone API has provided Open Banking Limited (OBL) with an updated model bank as the model bank provider for OBL to reflect v4.0 of the Open Banking standards
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The global open banking leader, Ozone API, has launched an updated platform for Open Banking Limited (OBL) in line with the UK’s latest standards. It is the first major update since the introduction of VRPs.
Ozone API has successfully updated the model bank to support the rollout of the UK’s Open Banking Standards v4.0. This positions Ozone API as the first provider to deliver fully compliant APIs, facilitating the transition for financial institutions and third-party providers (TPPs) operating in the UK.
Open Banking Standards
The changes were announced by OBL in early July. OBLv4 introduces some mandatory updates for the UK’s CMA9 banks, with some required to be completed by as early as 31st December 2024. Additionally, ISO 20022 is set for implementation by 31st March 2025. Alongside the Bank of England’s publication of mandatory updates to payment regulations. These proposed changes have been driven by several significant factors, including the deprecation of key security standards such as FAPI 1 Implementers Draft 2.
While the UK open banking standard was initially mandated just for the CMA9 banks, it has become the de facto standard for the UK market. However, many UK banks remain on old versions of the standard.
The OBL model bank serves as a critical testing ground for banks and financial institutions, enabling them to experiment with and refine their API implementations in a controlled and secure environment. It will serve as a vital resource for banks, fintechs, and other TPPs by providing a safe space to develop and test their APIs in alignment with the new OBLv4 standards. It is designed to help institutions comply with the regulatory changes.
Ozone API
“We’re delighted to confirm that we’re the first provider to launch a platform that reflects v4.0 of the Open Banking Standards for Open Banking Limited. We’re excited to work with our partners to support fast and high-quality API changes, ahead of the first legislative deadlines coming into force later this year. Ensuring a smooth transition to the updated standards is critical for banking players who want to stay at the forefront of open banking industry changes into 2025 and beyond. We are extremely proud that our market-leading platform is ready to support our customers and partners as they transition to v4.0. I’m pleased that we’re able to support the entire UK financial ecosystem to start their OBLv4 journey by providing the OBL’s model bank. Our founding team were closely involved during their time working with the Open Banking Implementation Entity in the development of the UK Open Banking Standards, and we remain committed to enabling UK banks to make the most of open banking now and into the future.”
Huw Davies, CEO of Ozone API
Open Banking Limited
“Open Banking Limited is not only committed to maintaining the open banking standard, but also supporting the ecosystem by helping participants with their journey to version 4. This includes upgrading the model bank to v4 to provide as much support and coverage to participants as possible including the FCS, Standards and technical guidance.”
Henk Van Hulle, CEO, Open Banking Ltd
Ozone API has launched a comprehensive guide and a series of educational resources to accompany the new OBLv4 standards, aimed at helping banks and FIs navigate the changes smoothly and efficiently. The guide and resources provide actionable insights and best practices for institutions of all sizes.
Since the UK Government announced it would revisit the Data Protection and Digital Information Bill in July 2024, it is anticipated that the UK will see more regulatory changes related to open banking, smart data and the open data economy.
Other key findings include surge of info-stealers and botnets, an increase in evasive malware and a rise in network attacks across the Asia Pacific
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WatchGuard® Technologies, a global leader in unified Cybersecurity, today released the findings of its latest Internet Security Report. The quarterly analysis details the top malware, network, and endpoint security threats observed during the second quarter of 2024.
Among the report’s key findings was that 7 of the Top 10 malware threats by volume were new this quarter. Furthermore, this indicates threat actors are pivoting toward new techniques. The new top threats included Lumma Stealer. This advanced malware is designed to steal sensitive data from compromised systems. Also, a Mirai Botnet variant, which infects smart devices and enables threat actors to turn them into remotely controlled bots. And a LokiBot malware, which targets Windows and Android devices and aims to steal credential information.
Cybersecurity fears for Blockchain
WatchGuard’s Cybersecurity Threat Lab also observed new instances of threat actors employing “EtherHiding”. A method of embedding malicious PowerShell scripts in blockchains such as Binance Smart Contracts. In these instances, a fake error message linking to the malicious script appears on compromised websites, prompting victims to “update your browser”. Malicious code in blockchains poses a long-term threat. As blockchains are not meant to be changed, theoretically, a blockchain could become an immutable host of malicious content.
“The latest findings in the Q2 2024 Internet Security Report reflect how threat actors tend to fall into patterns of behaviour. Certain attack techniques become trendy and dominant in waves,” said Corey Nachreiner, CSO, WatchGuard Technologies. “Moreover, the report illustrates the importance of routinely updating and patching software and systems to address security gaps and ensure threat actors cannot exploit older vulnerabilities. Adopting a defence-in-depth approach, which can be executed effectively by a dedicated managed service provider, is a vital step toward combating these cybersecurity challenges successfully.”
Additional key findings from WatchGuard’s Report include:
Malware detections were down 24% overall. This drop was caused by a 35% decrease in signature-based detections. However, threat actors were simply shifting focus to more evasive malware. Moreover, in Q2 2024, the Threat Lab’s advanced behavioural engine that identifies ransomware, zero-day threats, and evolving malware threats, found a 168% increase in evasive malware detections quarter-over-quarter.
Network attacks increased 33% from Q1 2024. Across regions, the Asia Pacific accounted for 56% of all network attack detections, more than doubling since the previous quarter.
An NGINX vulnerability, originally detected in 2019, was the top network attack by volume in Q2 2024. It had not appeared in the Threat Lab’s Top 50 network attacks in previous quarters. The vulnerability accounted for 29% of total network attack detection volume, or approximately 724,000 detections across the US, EMEA, and APAC.
The Fuzzbunch hacking toolkit emerged as the second-highest endpoint malware threat detected by volume. The toolkit serves as an open-source framework that can be used to attack Windows operating systems. It was stolen during The Shadow Brokers’ attack of the Equation Group, an NSA contractor, in 2016.
Seventy-four percent of all browser-initiated endpoint malware attacks targeted Chromium-based browsers, which include Google Chrome, Microsoft Edge, and Brave.
A signature that detects malicious web content, trojan.html.hidden.1.gen, came in as the fourth most-widespread malware variant. The most common threat category caught by this signature involved phishing campaigns. These gather credentials from a user’s browser and deliver this information to an attacker-controlled server. Curiously, the Threat Lab observed a sample of this signature targeting students and faculty at Valdosta State University in Georgia.
UBS Digital Cash aims to increase efficiency, transparency and to enable the programmability of money movements for corporate and institutional clients
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Cross-border payments often lead to delayed settlements. As a result, this creates a fragmented view of liquidity positions for companies. The aim is to increase transparency and security with blockchain-based payments via UBS Digital Cash. Moreover, this should in turn facilitate timely payment processing. In addition, companies should be able to manage intraday-liquidity and adjust liquidity buffers on their accounts more easily in the future. This is thanks to greater visibility of their total cash positions.
USB Digital Cash with Blockchain
Andy Kollegger, Head UBS Institutional & Multinational Banking, says: ”UBS Digital Cash going forward aims to enable our clients to make cross-border payments in a much more efficient and transparent way. Furthermore, Blockchain-based payment solutions for cross-border payments are a strategic focus for UBS. With the successful UBS Digital Cash pilot, we have reached another important milestone.”
In the pilot, transactions with multinational clients and banks were successfully carried out. These included domestic transactions within Switzerland and cross-border payments in US dollars, Swiss francs, Euros and Chinese yuan. Additionally, the pilot also included the transfer of liquidity between various UBS companies. UBS plans to expand and develop its UBS Digital Cash offering in further steps.
The advantages of Blockchain-based payments solutions
Pilot participant Janko Hahn, Head Treasury Operations at Autoneum, says: “The UBS Digital Cash pilot showcased the key advantages of blockchain-based payment solutions. They make cross border transactions faster, on time and provide a seamless traceability, which is a huge benefit when operating in a global market.”
Xiaonan Zou, UBS Head Digital Assets, Group Treasury, adds: ”We see the interoperability between UBS Digital Cash and other digital cash initiatives as key for the financial industry. In addition to their role in correspondent banking, they also have the potential to streamline and simplify the settlement of tokenised assets in the capital market.”
How does UBS Digital Cash work?
For the payment process, UBS Digital Cash uses a private blockchain network to which only the permissioned clients have access. The settlement is performed via smart contracts, which, for example, automatically execute payments as soon as predefined conditions are met. Client transfers at UBS are recorded and processed in a digital system for recording transactions. They are independent of currency, practically in real time and around the clock. UBS Digital Cash complements UBS’s involvement in a wide range of market initiatives. These include the Swiss National Bank-led project Helvetia for real wholesale Swiss franc Central Bank Digital Currency (wCBDC), as well as the Agorá project, led by the Bank for International Settlements (BIS) together with seven central banks, to unlock central bank money and tokenised deposits from commercial banks in the cross-border payment context.
About UBS
UBS is a leading global asset manager and the leading universal bank in Switzerland. In addition, the company offers diversified wealth management solutions and focused investment banking functions. With the acquisition of Credit Suisse, UBS has assets under management of $5.7 trillion as of the fourth quarter of 2023. UBS supports its clients in achieving their financial goals through personalised advice, solutions and products. Headquartered in Zurich, Switzerland, the company operates in more than 50 markets around the globe. UBS Group AG shares are listed on the SIX Swiss Exchange and the New York Stock Exchange.
additiv, a global leader in fintech and digital transformation, has announced the launch of an InsurTech solution with AXA Switzerland
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AXA Switzerland has successfully launched its addProtect bancassurance offering, powered by additiv’s technology platform. Furthermore, this innovative InsurTech solution allows banks to directly protect their mortgage customers against key risks with a simple plug-and-play solution.
addProtect InsurTech solution from additiv
As a seamless plug-and-play solution, addProtect gives banks direct access to the platform without the need for additional integration with existing IT systems. Its user-friendly and intuitive design allows banks to effortlessly integrate the platform into their day-to-day business operations. With the death and payment protection insurance, bank advisors have easy-to-understand products at their disposal. These offer added value to customers beyond the existing offering. The addProtect platform is now available for banks, and an initial pilot will be launched in collaboration with PostFinance.
Samuel Peter, Head of Partnerships at AXA Switzerland, stated:
“With addProtect, AXA is responding to the growing need of customers and banks for appropriate insurance solutions where and when they are needed. The solution creates additional advisory potential and better protection for the customers of our partners’ banks. We look forward to making the solution available to other partners.”
Dieter Lützelschwab, General Manager Switzerland at additiv, added:
“When developing addProtect, we focused on the user experience for the customer and the bank advisor. In addition, our platform provides an easily configurable, modular insurance solution that covers the entire value chain from quotation to claims processing.”
About additiv
additiv empowers the world’s leading financial institutions and brands to create new business models and transform existing ones. additiv’s API-first cloud platform is one of the world’s most powerful solutions for wealth management, banking, credit, and insurance. The InsurTech technology, together with the global ecosystem of regulated financial services providers, opens up new opportunities for banks, insurance companies, asset managers, IFAs and consumer brands to quickly and flexibly offer their own and third-party financial solutions through existing or new customer channels.
Headquartered in Switzerland, with regional offices in Singapore, UAE, Germany, and the UK, and more than 250 employees, additiv serves over 400 financial institutions (banks, insurers, asset managers, pension providers, IFAs, etc.) and brands worldwide.
Bitget announces $100k seed funding through ‘Pitch n Slay’ roadshow competition
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Bitget has launched the ‘Pitch n Slay’ roadshow competition, aiming to provide financial support, professional guidance and exposure for female entrepreneurs. This will be delivered through collaborations with organisations such as World of Women, Women in Web3, Bitget Wallet, Foresight Ventures and Morph. The initiative is designed to help female leaders expand their projects.
Bitget Blockchain boost for female entrepreneurs
The final will be held during DevCon in Bangkok, Thailand on November 15. The shortlisted “Pitch n Slay” project contestants will present their optimised projects to investors and a jury panel. The jury members include Gracy Chen – CEO of Bitget; Taya A – CEO of World of Women; Min Xu – Partner at Foresight Ventures; along with other outstanding Web3 leaders. Three winners will have the opportunity to share $100k seed funding.
Blockchain4Her
Bitget is the third largest exchange for crypto derivatives with a user base, surpassing 20 million registered accounts globally. Furthermore, it is one of the largest platforms for cryptocurrency copy trading. Meanwhile, the daily trading volume on Bitget exceeds 10 billion USDT, reflecting its significant market presence.
“Bitget is committed to gender inclusivity with women making up more than 45% of our management team. We are also dedicated to creating an inclusive culture for the LGBT community. Through the Blockchain4Her program we hope to create more growth opportunities for women-led startups We’ll continue to expand this platform, creating pathways for growth and amplifying women-led startups in Web3.”
Gracy Chen, CEO, Bitget
About Bitget
With a background in traditional finance, Bitget’s founding team discovered blockchain technology in 2015. But it was viewed as “tulip mania” by the industry back then. In 2018, we became intrigued by cryptocurrency after studying the Bitcoin whitepaper and Ethereum ecosystem. We believed that cryptocurrency would play an important role in the future and even benefit the unbanked groups.
Born in a bear market, Bitget insists on putting users first, focusing on product innovation, and advocating long-term development with the spirit of earnestness. The company aims to inspire people to embrace crypto and improve the way they trade, one at a time.
New collaboration between Plumery and Payment Components
will enable financial institutions to adopt instant payments without overhauling existing core banking infrastructure
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Plumery, a digital banking experience platform for customer-centric banking, has announced a new partnership with Payment Components, a leader in payments and open banking solutions. By decoupling digital experience and payments processes from legacy systems, institutions can now innovate more flexibly and efficiently. They can streamline operations while maintaining their existing core banking frameworks.
Progress for Payments
By leveraging Plumery’s innovative approach and Payment Components’ expertise, this partnership allows clients to accelerate time-to-market and future-proof operations against regulatory shifts such as the Instant Payments Regulation (IPR). Financial institutions can offload the burden of implementing new digital channels and instruments, such as real-time payments, without altering their core systems.
The IPR aims to make instant payments fully accessible to consumers and businesses across the EU. Currently only a minority of service providers support instant payments. While such regulatory changes usually impact core banking infrastructure, the Plumery and Payment Components partnership ensures these systems remain unaffected.
“This partnership is crucial for institutions needing to rapidly modernise without overhauling their entire infrastructure. Together, we offer a powerful, flexible solution that enables our clients to embrace innovation while staying ahead of regulatory changes like the IPR. Adding Payments Components to our partner ecosystem solidifies our commitment to creating cutting edge solutions that embrace digitisation.”
Ben Goldin, Founder and CEO of Plumery
This global partnership offers a streamlined path to modernisation, enabling financial institutions to stay compliant, competitive and responsive to ongoing market shifts with solutions ready to support firms as they navigate the evolving financial landscape.
“Our collaboration with Plumery will empower financial institutions to seamlessly adopt modern payment technologies, addressing the complexities of regulatory changes, all while minimising disruptions to existing systems. We wanted to work with Plumery because both our company’s share a similar approach, work ethic and most importantly because of the compatibility of our products.”
Sotirios Nossis, Founder and CEO of Payment Components
Plumery
Headquartered in the Netherlands, Plumery’s mission is to empower financial institutions worldwide, regardless of size, to craft distinctive, contemporary, and customer-centric mobile and web experiences.
Plumery operates with a diverse team that embodies a unique combination of seasoned expertise and vibrant innovation. This blend has been cultivated through years of experience at start-ups, scale-ups, and established financial institutions, and most notably at globally leading financial technology companies, where they were instrumental in creating disruptive digital banking solutions and platforms that now serve 300+ banks globally.
Plumery’s Digital Success Fabric platform provides banks with the foundation for success beyond fast-time-to-market by expediting the development of their digital front ends while significantly cutting costs compared to in-house initiatives or solutions with high total cost of ownership (TCO).
Payment Components
At Payment Components, we’re reshaping the fintech landscape on a global scale. Today, our solutions are essential for more than 65 banks and financial institutions across 25 countries. We provide componentized solutions in a range of domains, including AI banking, open banking, account-to-account payments, and financial messaging technology. We achieve this through continuous innovation, building software components that help financial institutions become digital champions and deliver richer payment services to their clients. Our name reflects our belief: complicated processes in the financial industry will be replaced by AI-assisted dedicated components. We stand for simplicity, speed, and constant innovation
UnaFinancial study identifies cybersecurity as most influential factor driving FinTech growth
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A recent study from UnaFinancial has identified cybersecurity as the most influential factor driving the development of FinTech worldwide, with a 63% significance. The second most impactful factor is the average hourly wage rate, with a 13% significance.
The study showed that FinTech growth in Europe, America, and globally has the strongest correlation with the size of the cybersecurity market, with correlation coefficients of 0.8714, 0.9762, and 0.8607, respectively.
In Asia, however, FinTech growth was more closely tied to the size of the consumer electronics market (0.9403). Meanwhile in Africa, it correlated with consumer spending volumes (0.7427). Therefore, globally, cybersecurity emerges as the most significant driver of FinTech growth. More vital protection facilitates a more robust FinTech environment.
Economic Disparities with Cybersecurity: High Income vs Low Income Economies
Economic status also plays a crucial role in shaping FinTech dynamics. High-income countries display pronounced correlations with various factors. Notably, the size of the cybersecurity market (0.6923), consumer electronics market (0.5839), average wage rates (0.6237), and consumer spending volumes (0.6971) are all significantly linked to FinTech growth.
Conversely, low-income economies exhibit no substantial correlations with these factors, highlighting a disparity in FinTech development influenced by financial resources and technological infrastructure.
Middle-income countries show a more nuanced relationship, with FinTech volumes correlating with nominal GDP (0.5373), the cybersecurity market (0.5727), consumer electronics (0.5637), fintech hubs (0.5409), and consumer spending volumes (0.6136). This suggests that while multiple factors impact middle-income countries, cybersecurity remains a vital component.
Quantifiable Cybersecurity Impact on FinTech
Furthermore, another interesting finding was the measurable impact of various factors on FinTech transactions. For example, for every $1 million increase in the global cybersecurity market, FinTech transactions per adult are expected to rise by $31.6. Similarly, a $1 increase in the average hourly wage could boost FinTech transactions by $67.5. The establishment of just one more FinTech hub could increase global FinTech transactions per capita by $839.
Remarkably, as a country’s income grows, the correlation between FinTech growth and two factors—cybersecurity market size and average wage rates—becomes stronger. This means these factors may indeed influence the development of FinTech across a country.
A deeper non-linear analysis further validated the significance of these factors. It revealed that the cybersecurity market is the most influential driver of FinTech growth, with 63% of significance, followed by the average wage rate (13%). As we advance into an increasingly digital future, the investment in and enhancement of cybersecurity will remain a cornerstone of FinTech innovation and expansion.
UnaFinancial Study
The UnaFinancial study considered data from 2022 for 146 countries, which were grouped into four regions: Asia, Europe, Africa and America. The potential factors under consideration included gender ratio, nominal GDP per capita, Internet penetration, cybersecurity market volumes per capita, consumer electronics market volumes, number of FinTech hubs per 100,000 people, average hourly wages, consumer spending per capita, direct investment as a share of GDP, unemployment rates, trade volume relative to GDP, and share of urban population.
The study not only illuminates the integral role of cybersecurity but also provides a roadmap for understanding how various factors interplay to influence the global FinTech landscape. In this digital age, safeguarding financial transactions and technologies is as critical as ever. Moreover, ensuring that FinTech continues to flourish amidst evolving challenges and opportunities.
Money20/20, operates the world’s leading fintech events in Europe, Asia and USA and is “the place where money does business”….
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Money20/20, operates the world’s leading fintech events in Europe, Asia and USA and is “the place where money does business”. Money20/20 USA has unveiled seven startups poised to transform the financial sector. The selected startups are Brightwave, Casap, Eisen, Footprint, NALA, Ntropy, and Zumma. They were revealed during the Startup Media Session on October 29th in Las Vegas. The Startup Media Session was designed as part of the event’s goal to support startups at the intersection of finance and business.
“Money20/20 USA is focused on what drives the conversations most relevant to the FinTech industry. From economic and regulatory uncertainty to the future of payments and the impact AI will have on money moving forward. We are proud to highlight the work these startups are doing to move this industry forward.”
Scarlett Sieber, Chief Strategy and Growth Officer at Money20/20
Brightwave
Brightwave is the leading AI platform for financial services. It delivers accurate and insightful financial research enabling finance professionals to make better decisions faster. Its purpose-built AI systems synthesize insights across thousands of pages of primary sources. It can automate the most tedious parts of investing workflows and help users spot opportunities others have missed.
“Being named one of the Top 7 Startups at Money20/20 is a strong acknowledgment of the strides we’ve made in transforming how investment research is done. We’re also excited to announce our $15 million Series A funding at the world’s premier show for financial innovation. At Brightwave, we’re tackling one of the hardest problems in finance. We’re making sense of vast amounts of data to uncover deeper insights and relationships that others miss,” said Mike Conover, Founder and CEO at Brightwave.
Casap
Casap is an AI-powered disputes automation and fraud prevention platform. With built-in regulatory expertise and network integrations, Casap’s intelligent automation identifies fraudulent claims early. It delivers fast, frictionless dispute and chargeback resolution at a fraction of today’s cost.
“Money20/20 was the first conference I attended after starting Casap last year and it played a pivotal role in validating our vision. The connections, conversations, and insights I gained were invaluable. Exactly a year later, we’re back and launching out of stealth with live customers. We’re addressing some of the most pressing challenges in scaling payments. We’re starting with automating chargebacks and combating first-party fraud. We’re deeply grateful to Money20/20 for this opportunity to reach so many in the industry and help drive meaningful change in how payments are operated at scale,” said Saisi Peter, Co-founder of Casap.
Eisen
Eisen is the first escheatment automation solution that proactively manages the offboarding of dormant accounts, stale checks, wind-downs, and more. Financial institutions rely on Eisen to simplify the complex landscape of regulatory outreach, disbursement, and escheatment requirements. It ensures compliance while reducing operational risk.
“Money20/20 has been a cornerstone for Eisen since 2021, where the very idea for our company first sparked in the halls of the Venetian. It all started with conversations about the hardest challenges in FinTech. Each year, it’s helped us refine our vision and better serve our customers. For us, Money20/20 isn’t just about growth — it’s where Eisen began,” said Allen Osgood, CEO of Eisen.
Footprint
Footprint is a Series A identity company that has raised $20M from funds such as QED and Index Ventures. The company provides a single SDK that automates onboarding – KYC/KYB, fraud, security, and authentication – into an easy-to-integrate solution. Footprint works with leading companies across the Banking, Auto, and Real Estate sectors. Its technology portabalises identity, creating a centralised database of de-duplicated authentic identities.
“Money20/20 is at the vanguard of innovation. We’ve tried to be different at Footprint. Whether that be through our recent fraud indemnification program or our approach to labeling good actors. Some may think these are crazy ideas. But it is great to see Money20/20 continue to be where crazy can get a spotlight. That is how I would like to think true innovation happens,” said Eli Wachs, Co-founder and CEO of Footprint.
NALA
NALA is a global cross-border payments fintech company based in the US doing cross-border payments to emerging markets like Africa and Asia. It has two products, a consumer FinTech product enabling migrants to send money home and an infrastructure business called Rafiki, building payment rails for Africa. NALA recently became profitable and raised a $40m series A after achieving 10x revenue growth in 12 months.
“At NALA, we are on a mission to build payments for the next billion. Emerging markets are often overlooked but shouldn’t be underestimated as these regions have seen the fastest economic growth in the world. We have big ambitions for what we would like to achieve and have exciting plans in the pipeline in the coming years,“ said Benjamin Fernandes, Founder and CEO of NALA.
Ntropy
Ntropy is on a mission to organise the world’s financial data. 80% of the world’s financial data is unstructured and locked in transactions, documents, PDFs, and images. This means it is under-leveraged and cannot be used by models at scale. Ntropy was founded to solve this problem for any type of financial data, in any language, any geography, powering humans and more recently agents and agentic workflows in finance.
“Ntropy is processing hundreds of millions of transactions and documents weekly with over 98% accuracy, in under 100ms, 1000x faster, and cheaper than any other provider on the market. You can access Ntropy via our API-s directly, and more recently via NVIDIA NIM-s. This collaboration enables flexibility in deployment and allows our customers to scale immediately. This year’s Money20/20 has been about demonstrating the real value of GenAI and we have been very fortunate to have this exposure together with our partners at NVIDIA, Oracle, and AWS, who are accelerating Ntropy’s mission,” said Naré Vardanyan, Co-founder and CEO of Ntropy.
Zumma
Zumma is a financial copilot that automates and simplifies financial processes for Latin American businesses by leveraging existing tools they already use such as WhatsApp to save them time and money. The company is starting with automating expense management and expense invoicing processes, saving their customers more than $4,000 per employee per year in tax deductions.
“Being part of Money20/20’s Startup Media Session helps us spread the word about our product to the fintech community. The Money20/20 team has been key in our growth by connecting us to key players in the industry,” said Daniela Lascurain, COO and Co-founder of Zumma.
Launched by industry insiders in 2012, Money20/20 is the heartbeat of the global fintech ecosystem. Moreover, some of the most innovative, fast-moving ideas and companies have found their feet (and funding) on its show floor. From J.P. Morgan, Stripe, and Airwallex to HSBC, Deutsche Bank, and Checkout.com, Money20/20 is the place where money does business.
Scott Zoldi, Chief Analytics Officer at FICO considers whether the current AI bubble is set to burst, the potential repercussions of such an event, and how businesses can prepare
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Since artificial intelligence emerged more than fifty years ago, it has experienced cycles of peaks and troughs. Periods of hype, quickly followed by unmet expectations that lead to bleak periods of AI-winter as users and investment pull back. We are currently in the biggest period of hype yet. Does that mean we are setting ourselves up for the biggest, most catastrophic fall to date?
AI drawback
There is a significant chance of such a drawback occurring in the near future. So, the growing number of businesses relying on AI must take steps to prepare and mitigate the impact a drawback or complete collapse could have. Research from Lloyds recently found adoption has doubled in the last year, with 63% of firms now investing in AI, compared to 32% in 2023. In addition, the same study found 81% of financial institutions now view it as a business opportunity, up from 56% in 2023.
This hype has led organisations to explore AI use for the first time. Often with little understanding of the algorithms’ core limitations. According to Gartner, in 2023 less than 10% of organisations were capable of operationalising AI to enable meaningful execution. This could be leading to the ‘unmet expectations’ stage of the damaging hype/drawback cycle. The all-encompassing FOMO of repeating the narrative of the incredible value of AI does not align with organisations’ ability to scale, manage huge risks, or derive real sustained business value.
Regulatory pressures for AI
There has been a lack of trust in AI by consumers and businsses alike. It has resulted in new AI regulations specifying strong responsibility and transparency requirements for applications. The vast majority of organisations are unable to meet these in traditional AI, let alone newer GenAI applications. Large language models (LLMs) were prematurely released to the public. The resulting succession of fails fuelled substantial pressure on companies to pull back from using such solutions other than for internal applications. It has been reported that 60% of banking businesses are actively limiting AI usage. This shows that the drawback has already begun. Organisations that have gone all-in on GenAI – especially those early adopters – will be the ones to pull back the most, and the fastest.
In financial services, where AI use has matured over decades, analytic technologies exist today that can withstand regulatory scrutiny. Forward-looking companies are ensuring they are prepared. They are moving to interpretable AI and backup traditional analytics on hand while they explore newer technologies with appropriate caution. This is in line with proper business accountability, vs the ‘build fast, break it’, mentality of the hype spinners.
Customer trust with AI
Customer trust has been violated by repeated failures in AI, and a lack of businesses taking customer safety seriously. A pull-back will assuage inherent mistrust in companies’ use of artificial intelligence in customer facing applications and repeated harmful outcomes.
Businesses who want their AI usage to survive the impending winter need to establish corporate standards for building safe, transparent, trustworthy Responsible AI models that focus on the tenets of robust, interpretable, ethical and auditable AI. Concurrently, these practices will demonstrate that regulations are being adhered to – and that their customers can trust AI. Organisations will move from the constant broadcast of a dizzying array of possible applications, to a few well-structured, accountable and meaningful applications that provide value to consumers, built responsibly. Regulation will be the catalyst.
Preparing for the worst
Too many organisations are driving AI strategy through business owners or software engineers who often have limited to no knowledge of the specifics of algorithm mathematics and the very signifiicant risk in using the technology.
Stringing together AI is easy. Building AI that is responsible and safe is a much harder and exhausting exercise requiring model development and deployment corporate standards. Businesses need to start now to define standards for adopting the right types of AI for appropriate business applications, meet regulatory compliances, and achieve optimal consumer outcomes.
Companies need to show true data science leadership by developing a Responsible AI programme or boosting practices that have atrophied during the GenAI hype cycle which for many threw standards to the wind. They should start with a review of how regulation is developing, and whether they have the standards, data science staff and algorithm experience to appropriately address and pressure-test their applications and to establish trust in AI usage. If they’re not prepared, they need to understand the business impacts of potentially having artificial intelligence pulled from their repository of tools.
Next, these companies must determine where to use traditional AI and where they use GenAI, and ensure this is not driven by marketing narrative but meeting both regulation and real business objectives safely. Finally, companies will want to adopt a humble approach to back up their deployments, to tier down to safer tech when the model indicates its decisioning is not trustworthy.
Now is the time to go beyond aspirational and boastful claims, to have honest discussions around the risks of this technology, and to define what mature and immature AI look like. This will help prevent a major drawback.
Alexandra Mousavizadeh, CEO and Co-Founder of Evident, on how global banks are stepping up their AI comms in the face of growing investor scrutiny
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In the big banks’ Q2 earning calls this year, a critical milestone was reached. For the first time, half of the 50 major banks we track in the Evident AI Index fielded questions from equity analysts concerning risks and opportunities specific to artificial intelligence (AI).
External scrutiny of the banks’ AI progress is steadily increasing. This is in line with the huge sums institutions have pumped into originating, developing, rolling out and scaling AI use cases. Banking leaders we’ve spoken to aren’t expecting to register meaningful bottom line business impacts from AI investments for at least another 24-36 months. Meanwhile, investors need satisfying that progress is being made, and that ROI will be forthcoming,
Against this backdrop, the way in which banks communicate around AI is becoming increasingly important.
Just 12 months ago, many banks were making only sporadic, broad-brush or conceptual references to AI. However, our recent AI Leadership Report revealed every bank in the Evident AI Index now has a communications and marketing strategy. Furthermore, the majority are referencing AI across multiple communications channels. These include annual reports, press releases, company LinkedIn posts, and media interviews.
Banks need to ‘talk the walk’
It’s not just the volume of comms, but the substance that is increasing. More banks are now willing to reveal specifics around internal use cases already in production. Moreover, they are sharing the results of these efforts and tangible information about what they are doing to scale artificial intelligence.
Last year, only 6 of 50 Index banks identified AI as a strategic priority in investor relations materials, and clearly described specific use cases in production alongside their ROI. This year, this number increased 2.5x to 15 banks.
These substantive communications help to reassure and placate investors. Furthermore, if a bank is perceived to be at the leading edge of AI adoption, the easier it becomes to attract, retain and inspire the talent needed to make organisation-wide transformation a reality
The C-Suite needs to engage in the AI debate
To achieve cut through in the debate, banks are mobilising their C-level leaders to publicise their ongoing efforts. They are setting out their vision for becoming AI-first organisations.
Of the 50 banks, 45 now have at least one C-Suite executive that has engaged on the topic of AI in external media in the last year. Furthermore, 15 of the 50 banks have two spokespeople on AI, while six banks (CaixaBank, DBS, Goldman Sachs, Intesa Sanpaolo, JPMorgan Chase, and NatWest) are engaging with four or more spokespeople across the Executive team.
As the primary owner of the bank’s strategic vision, the CEO should arguably lead from the front when it comes to market communications around AI. Meanwhile, JPMorgan Chase leads the pack across a host of AI maturity metrics. The efforts of Jamie Dimon to set the agenda and relentlessly beat the drum should not be understated.
Over the past 12 months, Dimon has been quoted in the media on AI topics around 10x more than any other banking chief. He continuously reaffirming his institution’s dominant position in the eyes of investors. This is an intentional, coordinated AI communications strategy that other banks would be well advised to follow.
Communicating tangible AI gains is vital as operational realities bite
Every potentially game-changing new technology follows a well-established hype cycle. In the case of AI, we’re now seeing the inflated expectations of Generative AI – arguably the most significant technology innovation of the past decade – being tempered by the realities (and difficulties) of operationalisation.
A recent memo from leading venture capital firm Sequoia Capital highlighted the elephant in the room. Namely, that the gap between what’s being spent to build out AI (mostly by tech companies) and the actual revenue realised by that investment has risen to $600 billion this year, up from $200 billion in September 2023. Investors are starting to probe for detail on when and where the ROI is coming from and, like Big Tech, the world’s leading banks will find it impossible to duck the difficult questions.
A delicate balance must be struck. Overpromising on AI today and underdelivering further down the line could prove disastrous. And yet, banking leaders know that in the highly contested race for artificial intelligence supremacy, failing to communicate their plans and progress also carries reputational risk.
Of the 50 banks we track, 38 announced at least one AI use case in the last year. Meanwhile, only 21 reported any outcomes associated with those use cases. And of those, only two – JPMorgan Chase and DBS – went so far as to specify their total actual realised $ return on AI spend last year.
With investor scrutiny only likely to intensify in the year ahead, individuals at the top of every bank must set forth a clear vision. They must establish frameworks for measuring the effectiveness of their AI efforts and the ROI being realised. And, crucially, provide consistent and clear communication every step of the way.
Nicholas Holt, Head of Solutions and Delivery, Europe, Marqeta on how AI has the potential to revolutionise payments
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The financial services sector has witnessed a profound transformation over the past two decades. It has been propelled by technological advancements. From online banking to mobile-first platforms like Revolut and Monzo, the industry is continuously evolving. The integration of Artificial Intelligence (AI) into financial services is set to push the boundaries even further. Offering enhanced convenience and changing how we manage our money.
AI offers the ability to process and analyse vast amounts of data in real-time. It promises to make financial services intuitive, intelligent, and personalised to individual needs. And it can also help to make it more secure.
AI-Powered Personalisation
AI can interpret a consumer’s transaction history and spending patterns to create tailored financial recommendations. These include optimising payment methods, choosing better reward programmes, or suggesting savings opportunities. This degree of personalisation is far more sophisticated than the broad, one-size-fits-all approach currently offered by banks.
The technology can enable ‘predictive cards’ to leverage machine learning algorithms to set personalised credit limits and rewards based on an individual’s financial behaviour. By predicting future needs, AI-powered tools can offer a more holistic view of one’s finances. They can improve financial literacy and promote better financial decision-making.
Consumers are increasingly warming to the idea of AI in financial services. According to Marqeta’s 2023Consumer Pulse Report, 36% of consumers in the US and the UK expressed interest in using AI tools to help manage their finances. This figure rose to over 50% for consumers under 50, indicating a clear demand for personalised AI-driven solutions.
Unlocking Access to Credit
Access to credit is a significant factor in financial inclusion. AI has the potential to expand this access by transforming how creditworthiness is assessed. Traditionally, credit approval processes have relied heavily on limited data points, such as a person’s credit score and income. However, AI can analyse a broader range of data, from spending patterns to social media behaviour. This can provide a more nuanced assessment of an individual’s creditworthiness.
By using advanced machine learning models, AI can process this data at incredible speeds. This allows more people to be approved for credit faster and with greater accuracy. It can be particularly beneficial for individuals who may have struggled to secure credit through traditional methods, such as younger consumers or those without a lengthy credit history.
Generative AI (GenAI), which builds upon traditional AI by predicting and creating entirely new behaviours and patterns, also holds promise in this area. As the use of GenAI tools grows, we can expect more tailored financial products that respond to each consumer’s unique needs. Moreover, this could include personalised loan offerings or dynamic credit options that adapt in real-time to a person’s financial situation.
Fighting Fraud
While personalisation is one of AI’s most exciting applications, its ability to detect and prevent fraud is another crucial benefit. Fraud detection is a near constant battle across financial services, with millions of transactions processed every minute across the globe. Identifying suspicious activities quickly and accurately is essential for maintaining trust and security.
Machine learning algorithms are adept at spotting irregularities that might be missed by human analysts or even traditional software. Additionally, these systems can identify patterns that indicate potential fraud and alert financial institutions instantly, allowing them to take swift action.
Furthermore, as fraud techniques evolve, AI systems will continuously learn and adapt, staying one step ahead of cybercriminals. This capacity to evolve will make AI an invaluable asset in the fight against fraud.
AI and Embedded Finance
Embedded Finance, the process of integrating financial services into non-financial platforms, has already begun reshaping how consumers and businesses interact with money. AI is set to accelerate this trend, enhancing the capabilities of embedded financial tools with real-time data processing and hyper-personalisation.
For instance, businesses could use AI-powered embedded finance solutions to offer tailored payment options at checkout based on a customer’s purchasing behaviour. This could include personalised financing options, such as Buy Now, Pay Later (BNPL) services, or optimised rewards based on previous transactions. Companies like Marqeta are already exploring AI’s potential to elevate embedded finance, making these interactions seamless and highly personalised.
The Future of Finance
Financial services in 20 or just 10 years from now will likely be unrecognisable compared to today. AI will play a central role in shaping this evolution. Consumers and businesses can expect a future where financial products are deeply integrated into everyday life. However, not as separate, standalone services, but as seamless, invisible enablers of transactions and financial management.
GenAI will become increasingly sophisticated, offering predictive insights that can help consumers manage finances with greater precision. For businesses, AI-driven solutions will enable more efficient operations, cost reductions, and enhanced customer engagement through personalised offerings.
In this future, consumers will enjoy unparalleled convenience and flexibility. Payments, credit, and financial planning will be customised to fit the individual, with AI continuously learning and adapting to offer better recommendations and insights. This will lead to greater financial literacy, broader access to credit, and improved financial security. Additionally, financial service providers will gain much greater control over fraud and other security challenges.
Fred Fuller, Global Head of Banking at Endava, on how banks can effectively communicate AI advancements and demonstrate ROI to investors
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There is no single solution, AI or otherwise, that can prepare financial institutions for the modern world. To build a bank capable of successfully navigating the challenges of the future, a long-term digital transformation strategy is required. Especially relevant in the wake of recent IT outages,
At present, according to Endava’s Retail Banking Report 2024, 67% of banks are still heavily reliant on legacy systems. This leads to wasted budget and decreased efficiency. With limited resources available to modernise their tech stack, company leaders are often forced to choose which technology-type to prioritise. When doing this, 50% have chosen artificial intelligence (AI).
Is AI alone enough?
Can AI overhaul archaic processes or are there too many hurdles in the way? The first hurdle to successful digital transformation in financial services is overcoming the employees’ perception of the process. Time and time again, corporations have failed in the goal to integrate solutions that successfully feed into a long-term tech strategy. Often, this is due to wide-spread change fatigue. When exhausted by continuous efforts to change their day-to-day, workers become resistant to transformation. The best way to overcome change fatigue, and drive digital transformation in financial institutions, is through overhauling legacy systems. And adopting solutions that will stand the test of time.
Legacy Systems
Across the world, outdated legacy systems are holding financial institutions back and costing them billions. From 2022 to 2028, this expense is expected to grow at a rate of 7.8%. Not only do these archaic processes cost money, but they force banks to contend with a multitude of siloes. From departments to data. We live in a world where neobanks are growing in popularity. They are able to provide a frictionless customer experience using their modern tech stack. Traditional organisations must rid themselves of siloes to enable all areas of the business to leverage AI. In turn, this will provide them with strong data collection and support from departments who are agreed on next steps.
At present, three quarters of financial institutions feel they need to modernise their core. Without this change, they lack the secure, data-driven foundation necessary to utilise AI and see return on their technical investments.
The benefits of AI integration
Once a strong foundation has been laid, it becomes easier to see the practical benefits of integrating AI. For example, when data is no longer siloed by legacy systems, using chat bots to support customers with simple queries creates an efficient consumer experience. There are internal benefits too. AI can spot potentially suspicious activity, flagging it before it is too late. Or analysing data to ensure risk management and process automation. Despite its wide-reaching capabilities, AI alone is not the only option for financial institutions…
Routes to the future
Endava’s Retail Banking Report also showcased the variety of solutions that banks are using to improve their tech stack. 45% of respondents recognised data analytics, in and of themselves, as a top area for investment. Meanwhile 30% flagged IoT, and 14% the Metaverse.
There’s a reason for the emphasis on strong data. It not only supports the integration and use of AI-fuelled capabilities, but it is the driving force behind numerous functions of the bank itself. Of those surveyed, 37% aimed to use data to improve customer service. 34% to strengthen security, and 33% to personalise products and improve the customer experience.
As well as attracting and retaining consumers, business leaders can benefit from their access to strong data by attracting and retaining talent. With 39% of failed digital transformations viewing lack of employee buy-in as a factor, financial institutions are encouraged to educate workers on their technology integration plans, and ensure solutions are user-friendly. Fortunately, looking ahead, 20% of banks surveyed seek to use data to improve the workplace.
A bank’s priority – looking ahead
More than ever, banks are reliant on data to keep operations running smoothly. From providing customers with a personalised experience to improving the workplace in the competition for talent, there are a multitude of reasons to ensure the foundations of your tech stack are strong.
Doing so makes integration of new technology a smoother experience for all. To this end, it’s no shock that 50% of banks are keen to embrace AI, using it to benefit customers and speed up processes. However, with many hampered by the legacy technology and the ever-looming threat of change fatigue, integration of any technology should be carefully planned, customer focused and data led.
Lucian Daia, CTO at Zitec, on the rise of embedded finance driving customer loyalty across financial services
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The frenzy of Christmas and Halloween marketing is already in full swing, with date reveals of Christmas market returns to pumpkin patch locations. Retailers are gearing up to execute their strategies as the Golden Quarter approaches. This year, however, retailers have another string to their bow, another key message to snag a customer: ‘Buy Now, Pay Later’ (BNPL).
Business is booming in the BNPL game, with the market quadrupling in size since 2020. It is expected to hit a record level of £30bn in 2024. The payment option is fast becoming a staple in the digital wallets of millions for the major retail milestones of the year.
Halloween is the first major retail moment in the run-up to the festive season as Britain settles back into its winter routine. However, the rise of BNPL points to consumer behaviour that’s fast evolving and anything but predictable.
Retailers sink or swim based on the customer experience they deliver. From the rise of omnichannel strategies to speedy same-day deliveries, click and collect options, and attention-grabbing immersive experiences… There’s no shortage of initiatives to drum up customer loyalty. Now, payment solutions are part of the equation. Embedded Finance is front and centre of this change, integrating financial services (like loans, insurance, debit cards etc.) into businesses that don’t usually handle finance.
Application Programming Interfaces (APIs) offer a “Plug and Play” type functionality. Retailers can offer seamless payment solutions like BNPL or digital wallets directly on their systems. This integration keeps shoppers on the site and reduces the tiresome friction of third-party pop-up systems. Moreover, it offers features like zero-interest point-of-sale loans or app-based rewards. Of course, it allows them to check-out as easily and as quickly as possible too.
Bye-bye Velcro
Bye-bye Velcro, hello snazzy digital wallet that holds payment cards and bank account details all in one place. Digital wallets have become essential components of modern payments and offer a convenient and less risky way for shoppers to buy their items.
Gone are the days of searching for physical cards under stashes of files or keying in repetitive digits on a keyboard. Digital wallets also offer a reduced risk of fraud because of advanced encryption and tokenisation technologies. Beyond security, digital wallets provide retailers with valuable consumer insights.
For instance, if a customer buys a Halloween costume and decorations, retailers can use this data to target them with personalised offers. Such as a discount on themed candy bowls or matching spooky accessories. This level of personalisation is make or break for retailers today. Customers are setting a higher bar than ever for personalised content, offers and experiences that meet their needs and interests.
Speeding up cash flow with BNPL
Another innovation retailers need to have on their radar is instant payments. Unlike traditional systems that mean transactions can take hours or even days to complete, instant payments ensure funds are transferred within seconds.
For retailers, especially those operating on thin margins or managing high transaction volumes, the speed at which funds are made available can be make or break. The quick availability of cash means retailers can better manage their finances, buy new stock and address operational costs at pace.
Contrary to common belief, Brits don’t love queuing; in fact, they hate it. Faster payment options in-store have been pivotal in giving customers the speedy experience they demand so they can get on with their day. Quick transactions not only improve cash flow and reduce delays but enhance the customer experience. Making it ideal for those who’ve left their shopping too late, or forgotten an item on their list. As a result, customers walk away with the right impression.
Ditch the lines and pay with a tap
Retailers should be equipped with mobile point-of-sale (mPOS) systems that allow customers to make payments through their smartphones or other mobile devices, cutting down on wait times and speeding up the checkout process.
Retailers also stand to benefit from digital receipts, detailed sales reports, and real-time inventory management from having this system in place. This efficient processing not only improves cash flow but also provides valuable data for managing stock levels and customer preferences.
Beyond the Golden-Quarter
As retailers prepare for the Golden Quarter and beyond, understanding and leveraging FinTech payment innovations can seriously pay dividends. By adopting technologies such as embedded finance, digital wallets, instant payments, and mobile payments, retailers can improve their operational efficiency, enhance customer experiences, and position themselves for future growth in a digital-first world. Indeed, in recent years marked by economic shocks, huge tech advancements – especially with AI – and increasingly unpredictable consumer behaviour, it is crucial for retailers to stay ahead of payment options.
Providing consumers with flexibility, choices, and ultimately, ways to manage their outgoings and spread the cost will be key. Retailers will need to take a view on which innovations align best with the changing expectations of their customers and who they partner with to help them remain competitive.
Consumer Financial Protection Bureau (CFPB) responds to FinTech innovations in Neobanking to protect customers
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The top US watchdog agency for consumer financial protection has unveiled long-awaited rules, reports Reuters. These rules are intended to drive a shift toward open banking. And spur competition, allowing consumers to control and share their own data when shopping for services.
The new rules also aim to govern relations between the burgeoning world of financial technology companies that offer consumer apps for an expanding array of services. And the sometimes competing interests of traditional banks that can be hesitant to grant access to their customers’ accounts and data.
Financial Protection across Open Banking
US Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra has commented on the transition to the new rules. These allow mobile phone users to switch providers while keeping the same number. He said the coming change should help bring US payments systems more in line with advances in other developed countries. He also said the rule incorporates strong privacy protections and consumer choices. “A company that ingests (a) consumer’s data can use the data to provide the product or service the consumer asked for, but not for unrelated purposes the consumer doesn’t want.”
New banking rules from the CFPB
First proposed a year ago, the new regulations were 14 years in the making. They were originally called for in the 2010 Wall Street reforms enacted following the 2008 financial crisis.
According to the CFPB, as the rules take effect, consumers will be able to transfer their data between banks free of charge and without obstacles. They will also be able to borrow on better terms. For example, by allowing lenders to issue loans using data held by other financial institutions. And to make payments directly from their bank accounts rather than by card – using open banking.
Neobanking consumers will also be able to revoke access to their data immediately, according to the CFPB. Ahead of the announcement, CFPB officials said the agency had made some changes to the version originally proposed in response to concerns from industry and public comment. It is now sparing banks with less than $850 million in assets from having to provide data, for example.
Companies will have more time than originally proposed to come into compliance. Larger financial technology companies will have until 2026, while the smallest will have until 2030.
DBS Token Services, marks new milestone in financial services with blockchain
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DBS has announced the introduction of DBS Token Services. The new suite of banking services integrates tokenisation and smart contract-enabled capabilities with award-winning banking services. It aims to unlock new transaction banking capabilities and operating efficiencies for its institutional clients with blockchain.
DBS Token Services via Blockchain
DBS Token Services unlocks instant, 24/7 real-time settlement of payments. It integrates the bank’s Ethereum Virtual Machine-compatible permissioned blockchain. This is the core payment engine and multiple industry payment infrastructure for DBS. In addition, smart contracts enable programmability for institutions to govern the use of funds according to predefined conditions. Enhancing security and transparency. Using a permissioned blockchain provides DBS full control over these services. It enables the bank to harness the benefits of blockchain technology while adhering to compliance standards.
The project is the culmination of several years of industry collaborations and experimentation in digital money innovations. The suite of solutions includes Treasury Tokens, Conditional Payments, and Programmable Rewards. It exemplifies how established financial institutions can leverage blockchain technology and smart contracts to deliver new client experiences.
Lim Soon Chong, Group Head of Global Transaction Services, DBS Bank
“To capture the massive shift of human and corporate activity to on-demand digital services, companies and public sector entities are reimagining their operating models and customer engagement strategies. A new generation of ‘always-on’ banking services is essential to support this shift and transformation.
“By leveraging tokenisation and smart contract capabilities, DBS Token Services enables companies and public sector entities. They can optimise liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement. It marks a significant step forward in transaction banking. It demonstrates how established financial institutions can leverage blockchain technology to deliver new ground-breaking features and experiences.”
DBS: Shaping the future of finance with Blockchain
Since 2016, DBS has been a driving force in several industry initiatives led by the Monetary Authority of Singapore. It has been exploring the potential of blockchain technology in enhancing Singapore’s financial landscape. Key initiatives include Project Ubin, Project Orchidand Project Guardian.
DBS Token Services continues to explore broader applications of blockchain enabled solutions. These include the tokenisation of securities and digitalisation of trade finance. These innovations reflect DBS’ ongoing commitment to building a more robust and innovative banking landscape..
Amelia Lowe, Vice President of Operations at SquareTrade, on the potential for AI to revolutionise InsurTech
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We have all witnessed the growth of AI in the past year. It’s quickly becoming an innate part of how we work. In the UK alone, the number of AI registered companies has increased by over 600% in under a decade. While the size of the AI market is expected to grow to over £800 billion by 2035. AI holds the power to radically reshape the way we live, learn, and conduct business. It can unlock possibilities we once only imagined. In the past two years, we’ve witnessed this transformational potential come to life. It’s driving innovation and redefining industries at an unprecedented pace.
We stand on the brink of a new era. AI is poised to become an integral force that not only enhances our daily lives but also paves the way for a more effective way of doing business and connecting with customers. AI holds the key to supercharging the customer experience, by creating seamless, intelligent customer journeys. So how do we do it?
In today’s highly competitive world, great customer service is essential. Customers do not want to feel like just another number. They want their individual needs to be recognised and addressed with personalised responses.
At SquareTrade, we aim to engage with our customers in ways that feel authentic and personal, even when they are engaging with AI. Our objective is to deliver a level of personalised interaction that was once thought of as unattainable with automated systems. Furthermore, ensuring every customer feels appreciated and understood in each exchange.
Enhancing customer experiences with AI for seamless, intelligent journeys
At the core of any customer relationship is the confidence that issues will be resolved quickly and effectively. Your team, and the people behind your company, play a pivotal role in delivering that trust across all customer touchpoints.
When integrating AI into a business, it is essential to align the technology with the company’s core objectives. For us, the focus has been on driving innovation and streamlining processes while ensuring customer service remains uncompromised. Our goal is to ensure, no matter how AI is implemented, the customer experience feels personal and authentic. Even with automated systems, we want to provide a level of personalised interaction that was once unimaginable. We see AI as an extension of our team. In light of that we apply the same values and principles to those we apply to our team, which focus on trust, transparency and respect.
Have you met Sally?
We now live in a world where AI tools and customer experience must work in harmony. According to Statista, 73% of consumers believe AI can enhance customer experience, with 80% reporting positive interactions with AI so far. Clearly, AI has reached a point where customers can appreciate its benefits during their times of need. It can seamlessly recognise and addresses issues productively.
When businesses explore integrating AI solutions, it’s crucial to align them with their unique standards, customer service approach, and company culture. No two AI solutions are alike. For us, it was vital that any AI implementation seamlessly complemented our existing operations. A key example of how we’ve achieved this is through the introduction of Sally, our AI chatbot. Sally provides one of the quickest and most efficient ways for customers to engage with us when visiting our website. This enhances the user experience while staying true to our service values.
We are already witnessing the benefits of introducing Sally. She consistently achieves high success rates in resolving customer incidents autonomously. By deploying her in a strategic and targeted manner, we can reserve human interactions for more complex queries and claims.
AI Training for Operational Excellence
AI’s potential goes beyond customer interactions. It is increasingly being leveraged for training and education within organisations. In an industry like insurance, where no two claims are the same, InsurTech companies need training systems that prepare team members to adapt to a wide variety of scenarios.
Given that individuals learn in diverse ways and at varying speeds, the ability to create personalised learning experiences is immensely valuable. We see AI training tools as the equivalent of providing each employee with a personal tutor. Moreover, one that can adapt to their unique strengths, challenges, and learning styles.
And the learning doesn’t stop when the training does. AI-powered platforms can now continuously assess performance in real-time. If an employee is struggling in a particular area, the AI can automatically adjust the learning program to address those needs. This ensures ongoing growth and development tailored to each individual.
Fraud Detection
AI is poised to revolutionise fraud detection and prevention. It is becoming an invaluable asset to the teams that monitor for suspicious activity. In the insurance industry, AI can be deployed at multiple levels to enhance fraud detection. For example, through intelligent automation that swiftly analyses large datasets and flags potentially fraudulent claims for further investigation. This can save valuable time and resources.
AI can also enable the creation of predictive models that forecast fraud based on historical data and emerging trends. This helps insurance players to stay one step ahead of evolving threats. These models improve risk assessment accuracy by reducing false positives and allowing us to focus more effectively on genuine risks.
Looking ahead, the potential for AI in fraud detection is immense. AI is breaking new ground in areas where traditional rule-based systems fall short. Its ability to process vast amounts of data in real time, identify patterns and anomalies that would be nearly impossible to detect manually, makes it a game-changer in tackling complex problems.
Embracing AI Advancements
AI has the potential to revolutionise countless industries, but its impact is particularly profound in InsurTech. Given the critical role insurance plays in people’s lives, the opportunities for innovation and improvement are vast.
As an industry, it’s essential we recognise AI’s ability to transform customer experiences. As early adopters, we have witnessed its potential firsthand. We will continue to leverage these advancements to enhance personalised and automated processes. We can bridge language barriers, and create new methods of interaction.
However, our focus must always be on finding the right balance. Identifying where these solutions can deliver the greatest impact in serving customer needs quickly and effectively. Moreover, also ensuring that we retain the opportunity for human connection whenever it is needed. As well as ensuring compliance and security are a core part of how we think about implementing solutions to enhance business operations.
WaveBL Completes a new groundbreaking network connectivity Proof of Value (POV) with Swift, the participation of five global banks, and leading ocean carrier eBL Issuer MSC
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WaveBL, the leading blockchain based electronic Bill of Lading (eBL) platform, has completed a groundbreaking Proof of Value (POV). It worked with Swift and the participation of five global banks. Lloyds, Emirates NBD Bank, Federal Bank Limited, and other banks. Furthermore, MSC Mediterranean Shipping Company (MSC), a leading ocean carrier acted as an eBL issuer on WaveBL.
The POV successfully demonstrated the transfer of structured electronic document presentations (including eBLs) originated on the Platform. They were sent to and between Swift members, and back to the Platform, all as part of a Letter of Credit (LC) transaction. The process was executed utilising a series of Swift FIN messages and FileAct transfers from WaveBL to the different banks. The process maintained possession and title management of the electronic trade documents on WaveBL’s ledger of issuance.
Describing the Flow of the POV with WaveBL
The POV involved two eBLs – one straight and one negotiable – both issued by MSC on the WaveBL platform. The eBLs were first sent to an exporter on the WaveBL platform. Here, commercial documents like a packing list, invoice, and certificate of origin were added. These were then sent to the advising bank by the platform over the secure and resilient Swift network, using an MT message and a FileAct document transfer. In turn, the advising bank and the issuing bank exchanged the presentation between them while WaveBL’s ledger maintained the tracking of possession and title of the contained eBLs.
Ultimately, the issuing bank released the documents to the LC applicant, who is the importer, including the endorsement of the negotiable eBL from the issuing bank to the order of the importer on the Platform. All of which was instructed to the platform through a Swift MT message. This streamlined process allows for payments to be received within hours, rather than days. This is often the case with transactions that involve the physical transfer of documents. Similarly, with the eBLs surrendered back to MSC on the platform, the importer was able to collect the goods at the port of destination without delay.
Strengthening the supply chain-trade finance connectivity: The WaveBL Swift gateway
This groundbreaking POV underscores WaveBL’s dedication to making its network fully integrated with the financial system. This allows customers to seamlessly interact with Swift members and among participants themselves. For Swift members, electronic trade documents could soon be exchanged via WaveBL using their existing Swift infrastructure. And without requiring the installation or use of any specialised software or service.
WaveBL anticipates that the concept led through this POV will further its mission of creating seamless connectivity between the supply chain and financial markets. It will drive the shift towards 100% adoption of eBLs, as outlined in the FIT Alliance Declaration of September 2023. WaveBL is also looking forward to becoming the first electronic trade document provider to achieve full connectivity with the entire Swift community. This allows all banks a simple, standardised way to receive and send electronic bank presentations originated on the platform.
Innovative approach by leading banks
The participating banks have all previously demonstrated exceptional innovation by using WaveBL as their entry point to the eBL market. They gained experience by exchanging electronic trade document presentations in live commercial transactions. As part of the POV, WaveBL, Swift and the banks established a joint working group. This was aimed at analysing the methodologies and structure of the Swift MT messages and the electronic presentations proven during the POV. Moreover, their involvement highlights a commitment to advancing trade finance through digitisation and cutting-edge technologies for document exchange. WaveBL is eager to continue working with the joint working group as its expected integration with the Swift network unfolds.
Boaz Lessem, Chief of Legal Regulation and Partnerships, WaveBL:
“As the eBL market continues to grow, this POV solidifies our vision of seamless connectivity between WaveBL and Swift, providing a new, standardised solution for banks that prefer not to use the platform’s interface directly. By leveraging Swift’s trusted infrastructure, banks will now be able to exchange electronic trade documents with ease. Enabling greater flexibility and efficiency in trade finance. I believe this connectivity will lead the way to an increased value proposition for the electronic transformation to eBLs. I thank the Swift team for its ongoing leadership and support as part of this POV, driving forward this important initiative in trade finance digitisation.”
Gabe Hopkins, Chief Product Officer at Ripjar, on how GenAI can transform compliance
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Generative AI (GenAI) has proven to be a transformational technology for many global industries. Particularly those sectors looking to boost their operational efficiency and drive innovation. Furthermore, GenAI has a range of use cases, and many organisations are using it to create new, creative content on demand – such as imagery, music, text, and video. Others are using the new tools at their disposal to perform tasks and process data. This makes previously tedious activities much more manageable, saving considerable time, effort, and finances in the process.
However, compliance as a sector has traditionally shown hesitancy when it comes to implementing new technologies. Taking longer to implement new tools due to natural caution about perceived risks. As a result, many compliance teams will not be using any AI, let alone GenAI. This hesitancy means these teams are missing out on significant benefits. Especially at a time when other less risk-averse industries are experiencing the upside of implementing this technology across their systems.
To avoid falling behind other diverse industries and competitors, it’s time for compliance teams to seriously consider AI. They need to understand the ways the technology – specifically GenAI – can be utilised in safe and tested ways. And without introducing any unnecessary risk. Doing so will revolutionise their internal processes, save work hours and keep budgets down accordingly.
Understanding and overcoming GenAI barriers
GenAI is a new and rapidly developing technology. Therefore, it’s natural compliance teams may have reservations surrounding how it can be applied safely. Particularly, teams tend to worry about sharing data, which may then be used in its training and become embedded into future models. Moreover, it’s also unlikely most organisations would want to share data across the internet. Strict privacy and security measures would first need to be established.
When thinking about the options for running models securely or locally, teams are likely also worried about the costs of GenAI. Much of the public discussion of the topic has focussed on the immense budget required for preparing the foundation models.
Additionally, model governance teams within organisations will worry about the black box nature of AI models. This puts a focus on the possibility for models to embed biases towards specific groups, which can be difficult to identify.
However, the good news is that there are ways to use GenAI to overcome these concerns. This can be done by choosing the right models which provide the necessary security and privacy. Fine-tuning the models within a strong statistical framework can reduce biases.
In doing so, organisations must find the right resources. Data scientists, or qualified vendors, can support them in that work, which may also be challenging.
Overcoming the challenges of compliance with AI
Despite initial hesitancy, analysts and other compliance professionals are positioned to gain massively by implementing GenAI. For example, teams in regulated industries – like banks, fintechs and large organisations – are often met with massive workloads and resource limits. Depending on which industry, teams may be held responsible for identifying a range of risks. These include sanctioned individuals and entities, adapting to new regulatory obligations and managing huge amounts of data – or all three.
The process of reviewing huge quantities of potential matches can be incredibly repetitive and prone to error. If teams make mistakes and miss risks, the potential impact for firms can be significant. Both in terms of financial and reputational consequences.
In addition, false positives – where systems or teams incorrectly flag risks and false negatives – where we miss risks that should be flagged, may come from human error and inaccurate systems. They are hugely exacerbated by challenges such as name matching, risk identification, and quantification.
As a result, organisations within the industry quite often struggle to hire and retain staff. Moreover, this leads to a serious skills shortage amongst compliance professionals. Therefore, despite initial hesitancy, analysts and other compliance professionals stand to gain massively by implementing GenAI without needing to sacrifice accuracy.
Generative AI – welcome support for compliance teams
There are numerous useful ways to implemented GenAI and improve compliance processes. The most obvious is in Suspicious Activity Report (SAR) narrative commentary. Compliance analysts must write a summary of why a specific transaction or set of transactions is deemed suitable in a SAR. Long before the arrival of ChatGPT, forward thinking compliance teams were using technology based on its ancestor technology to semi-automate the writing of narratives. It is a task that newer models excel at, particularly with human oversight.
Producing summarised data can also be useful when tackling tasks such as Politically Exposed Persons (PEP) or Adverse Media screenings. This involves compliance teams performing reviews or research on a client to check for potential negative news and data sources. These screenings allow companies to spot potential risks. It can prevent them from becoming implicated in any negative relationships or reputational damage.
By correctly deploying summary technology, analysts can review match information far more effectively and efficiently. However, like with any technological operation, it is essential to consider which tool is right for which activity. AI is no different. Combining GenAI with other machine learning (ML) and AI techniques can provide a real step change. This means blending both generalised and deductive capabilities from GenAI with highly measurable and comprehensive results available in well-known ML models.
Profiling efficiency with AI
For example, traditional AI can be used to create profiles, differentiating large quantities of organisations and individuals separating out distinct identities. The new approach moves past the historical hit and miss where analysts execute manual searches limiting results by arbitrary numeric limits.
Once these profiles are available, GenAI can help analysts to be even more efficient. The results from the latest innovations already show GenAI-powered virtual analysts can achieve, or even surpass, human accuracy across a range of measures.
Concerns about accuracy will still likely impact the rate of GenAI adoption. However, it is clear that future compliance teams will significantly benefit from these breakthroughs. This will enable significant improvements in speed, effectiveness and the ability to respond to new risks or constraints.
Ripjar is a global company of talented technologists, data scientists and analysts designing products that will change the way criminal activities are detected and prevented. Our founders are experienced technologists & leaders from the heart of the UK security and intelligence community all previously working at the British Government Communications Headquarters (GCHQ). We understand how to build products that scale, work seamlessly with the user and enhance analysis through machine learning and artificial intelligence. We believe that through this augmented analysis we can protect global companies and governments from the ever-present threat of money laundering, fraud, cyber-crime and terrorism.
The AXA Group aims to protect over 20 million customers through inclusive insurance globally by 2026
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AXA Egypt and Post for Investment (PFI), the investment arm of Egypt Post, are establishing the first micro-insurance company in Egypt. This strategic collaboration is made possible by leveraging the new insurance law and aims to revolutionise the insurance landscape in the country.
Financial Inclusion
This initiative is fully aligned with AXA´s conviction that postal networks play a crucial role in global financial inclusion. Over a quarter of the world’s adult population accesses formal financial services through their post office. AXA notably signed a partnership with the Universal Postal Union (UPU) in May 2024. Moreover, this collaboration with UPU includes a research program. It will showcase successful postal insurance models and the establishment of the Postal Insurance Technical Assistance Facility (PITAF). This will promote financial inclusion and risk mitigation among underserved populations. Through this partnership, AXA is pushing the boundaries of insurance to better protect all. Solidifying its dedication to inclusive insurance practices worldwide.
The Egypt Post, who will be the main distribution channel of this JV, is a well-respected organisation. It has a strong nationwide presence, renowned for its last mile distribution capabilities and robust brand credibility. Additionally, with over 4000 branches, kiosks, and mobile trucks across all governorates, Egypt Post is an integral part of the country’s infrastructure. It caters to the population with unparalleled reach.
“We believe in the power of collaboration to create lasting change, and this joint venture is a testament to our commitment to inclusive insurance. Together, we are revolutionising the insurance landscape in Egypt to better protect and empower communities, setting new benchmarks for millions seeking reliable and accessible insurance protection.”
Garance Wattez-Richard
Micro-insurance from AXA
The product categories will include both retail and group offerings. Embedded and voluntary options will cater to diverse needs. The range of products will cover various areas. These include hospital cash, personal accident, term life, payment protection, credit life, livestock, and group protection, ensuring comprehensive coverage for the customers.
The ambitious goal is to reach 12 million customers within the first decade of operation. Therefore, underlining the commitment to making a significant impact on the lives of Egyptians through tailored insurance solutions.
This collaboration between AXA EssentiALL, AXA Egypt and PFI/Egypt Post marks a significant milestone in the local insurance industry. It paves the way for inclusive and impactful micro-insurance offerings that have the potential to transform the socio-economic landscape of Egypt. As the first of its kind, this micro-insurance company is poised to set new benchmarks. Furthermore, it can become a beacon of hope for millions of Egyptians seeking reliable and accessible insurance protection.
SemFi by HSBC will deliver innovative embedded finance solutions for businesses
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HSBC has launched its new jointly owned venture, SemFi by HSBC. It aims to deliver Seamless Embedded Finance solutions to business clients.
The new technology company is a joint venture between HSBC and B2B global trade network Tradeshift. Furthermore, SemFi will embed HSBC payment, trade and financing solutions across a range of e-commerce and marketplace venues, including Tradeshift’s own B2B network.
SemFi will deliver its solutions in the UK to begin with. Furthermore, it will enable SME suppliers on e-commerce venues to access digital invoice financing from HSBC. Via a seamless experience it also aims to offer SMEs greater flexibility and security in their spend management through the bank’s virtual card solutions.
SemFi by HSBC
“Businesses are increasingly looking for seamless financial solutions that are embedded within their e-commerce journeys. So they can access these when and where they need them.
“SemFi by HSBC aims to deliver such embedded capabilities to help businesses grow. It will seek to bring the best of both worlds to our business customers and e-commerce partners. A startup technology mindset coupled with the global scale and expertise, of an international bank.”
Vinay Mendonca, Chief Executive Officer
The new venture is led by senior leadership drawn from HSBC. This includes Vinay Mendonca as CEO and Shehan Silva as Chief Operating Officer (COO). Additionally, Jo Miyake, Interim CEO of Global Commercial Banking, joins the SemFi board.
HSBC has been steadily building its capabilities and presence in embedded finance. It is driven by business customers seeking connected financial journeys to e-commerce venues.
HSBC supports around 1.3 million businesses worldwide. Moreover, it is the world’s largest trade bank, facilitating over $800 billion of trade flows annually.
Tradeshift supports over $260 billion of annual gross merchandise value for a million business users on its platform.
SemFi is intended to be a technology company and will not operate as a banking entity. Clients will be onboarded by the bank and the bank’s balance sheet will be leveraged for financing.
Sejal Mehta and Andrew Rodgers from Odgers Berndtson’s Global FinTech Centre of Excellence and Randy Bean, a Senior Advisor to Odgers Berndtson and industry author, explore the dynamics shaping leadership in the UK fintech sector
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The UK FinTech sector is undergoing a significant transformation, marked by maturation, consolidation, and a more selective investment landscape. Funding is increasingly funnelled towards profit-generating scale-ups, and away from newer entrants.
At the same time, the sector is shaped by a multi-generational workforce with varied perspectives. Meanwhile rapid advancements in AI foster apprehension and excitement. These converging factors make FinTech one of the most dynamic and competitive spaces to work in today. This presents both challenges and opportunities for its leaders.
From our perspective as global FinTech executive search and leadership advisors at Odgers Berndtson these shifts are reshaping the demands placed on leadership. They are also influencing what it takes to lead effectively in this fast-changing sector. Here, we explore the leadership trends that are emerging as a result.
Ethical FinTech leadership
Venture capital funding is now more selective and private equity investors are increasingly targeting fintechs with solid exposure. This is creating a difficult environment for new start-ups. Those attracting funding are typically cash-positive scale-ups.
Amidst these challenges, more FinTech firms are opting to list on the NASDAQ rather than the London Stock Exchange, as the UK navigates more stringent regulation. The need for payments licences, extensive reporting, and compliance demands weigh heavily on FinTech leaders.
In this landscape, we’re seeing leaders with experience in regulated financial services bring a valuable skillset. The ability to operate within defined regulatory frameworks while generating growth. FinTech boards are looking for leaders with high authenticity and who can make ethical decisions. And while balancing ambition and growth with the realities of working in a highly regulated space.
Founder replacements
We are in the midst of the FinTech sector’s maturation. Start-ups are transitioning into scale-ups, requiring different leadership competencies. For many, this requires the founder to step down or step into a board role and appoint a CEO who can take the business through its next stage of growth.
This requires leaders who are commercially driven, capable of shaping market strategies, and adept at understanding customer needs and product-market fit. Navigating risk and regulation becomes crucial, while the founder’s creative, opportunity-led approach typically no longer dominates the new operational and strategic demands.
Boards and investors are looking for CEOs with a broader skillset and deep regulatory expertise. These leaders must also be able to attract and retain the type of talent that can sustain growth and innovation, while maintaining the ‘DNA’ that made the business so attractive in the first place.
A multi-generational workforce
Intergenerational divides are becoming more pronounced for all businesses and noticeably in sectors like FinTech. Here, younger generations with fresh perspectives are working alongside older, more experienced professionals – often from traditional financial services backgrounds.
This diversity in age, experience, and approach can be a powerful asset, but only if integrated effectively. Typically, Gen Z and Millennials prioritise flexibility, technological integration and experimentation. Meanwhile, Boomers bring valuable expertise in regulatory environments and operational effectiveness, but may be more accustomed to traditional structures and leadership styles.
Increasingly, we see FinTech leaders attempt to bridge these divides by emphasising open communication, promoting mentorship opportunities, and encouraging cross-generational collaboration. With less funding and more regulation, FinTech leaders recognise the need to identify and capitalise on the strengths of a multigenerational workforce if they are to succeed.
Leadership team dynamics
As FinTech companies scale, leadership is no longer just about the capabilities of individual leaders but about the dynamics of the entire executive team. Successful scale-ups understand the importance of assembling a leadership team that brings a diverse mix of skills, and generational perspectives to the table.
We are starting to see FinTech companies think about leadership team dynamics as they scale up. Boards are looking for a blend of strategic, operational and ethical considerations. As well as how well team members work together. Do they solve problems cohesively? Are there any unresolved tensions or conflict? Are they aligned and equipped to collectively deliver on the leadership mandate?
Many leadership teams are not optimising their potential due to misalignment of strengths. For example, we recently worked with a FinTech creating an executive team profile to identify the leadership competencies needed to deliver their mandate. This exercise enabled the team to reallocate executive responsibilities for strategic initiatives based on the required strengths, regardless of traditional job roles.
Polarising views on Gen AI
Leading organisations are experiencing a transformational moment due to accelerated interest in AI and Generative AI. 89.6% are increasing their investments in AI, while 64.2% of companies have indicated that AI will be the most transformational technology in a generation. In response, organisations are hiring for the data and AI leadership roles required to prepare their companies for an AI future.
However, this integration of Gen AI has sparked both excitement and nervousness, particularly around issues of data protection and privacy. Generational differences are especially noticeable. Younger professionals are often less concerned about data privacy, while older generations remain cautious about the security implications.
This divergence in attitudes can create tension within the organisation, as leaders grapple with how best to leverage Gen AI while ensuring compliance with stringent data protection regulations. For some FinTechs, AI is seen as a specialised area requiring dedicated focus. Meanwhile, others believe AI represents a fundamental shift in how business can be conducted and AI strategy should be woven into the fabric of every leader’s responsibilities.
This divide in attitudes reflects the broader challenges we see FinTech companies face in incorporating AI. Leaders must now navigate the balance between embracing innovation and safeguarding sensitive information. They must also ensure AI is not seen as a siloed function. It must be an integral part of their commercial and strategic vision. Given the fundamental changes in the sector, the emphasis on leadership capabilities is changing for both the individual and executive team.
Wirex Pay announces pioneering step forward for cryptocurrency payments with new app integrating traditional finance with blockchain
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Wirex Pay, a leading decentralised payment network incubated by Wirex, has announced early access to its innovative crypto payment app. Now live for select whitelisted users. This exclusive opportunity offers early adopters a chance to experience the next era of crypto payments. It can seamlessly integrate digital assets into everyday transactions – all directly from a non-custodial wallet.
With Wirex Pay, users can enjoy full financial autonomy, conducting secure, fast transactions in over 200 countries, whether shopping online or in-store. Designed to remove intermediaries, Wirex Pay ensures users maintain total control over their assets while making crypto payments easier than ever.
Key Features of Wirex Pay:
Seamless Crypto Payments: Effortlessly pay with digital assets in real-time
Full Control: Manage and spend crypto directly from non-custodial wallet
Security & Privacy: Enjoy full ownership of assets with no intermediaries
Pavel Matveev, Co-Founder of Wirex Pay, commented:
“Wirex Pay represents a significant step forward in the evolution of crypto payments. We’ve removed the barriers between crypto and everyday transactions, giving users the power to spend their assets freely and securely. We’re thrilled to offer this exclusive early access to our community and can’t wait for everyone to experience the future of payments.”
Wirex Pay offers a safe, decentralised payment solution, with built-in ID verification to ensure account protection while allowing users to control their digital assets fully. The platform bridges the gap between blockchain technology and real-world spending, empowering users to make instant, secure transactions worldwide.
About Wirex Pay
Wirex Pay is a pioneering modular payment chain, incubated by Wirex and powered by Polygon’s advanced Zero Knowledge (ZK) technology. This innovative platform seamlessly integrates traditional finance with blockchain, providing a decentralised, gasless, and on-chain payment infrastructure. Wirex Pay enables users to make instant, secure payments using a wide range of cryptocurrencies, all while maintaining full control over their assets.
As businesses increasingly turn to AI to drive efficiencies in customer service operations, James Towner, Chief Growth Officer at ArvatoConnect, explores how businesses can strike the right balance of using digital technologies that empower successful human interactions.
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Generative AI continues to transform how businesses engage with their customers. Buy-now-pay-later-giant Klarna is the latest to grab headlines for integrating an AI customer service chatbot that manages the equivalent workload of 700 employees. Klarna’s bosses have hailed AI as delivering superior experiences for their customers, saying its chatbot has a customer satisfaction score similar to human agents. However, studies find AI is no panacea for customer service success just yet.
AI vs the human touch
AI can undoubtedly play a major role in automating more routine queries. It provides a dynamic augmentation to the agent’s role by providing consistent, relevant information to the agent’s fingertips. But in many instances human interaction is an invaluable part of the customer experience.
In addition, customers have a variety of needs not least when it comes to those with vulnerabilities. The latest report from ArvatoConnect found how consumers that self-identify as being vulnerable said they prefer some level of human interaction when seeking help from a business. AI tools are unlikely to fully understand their unique needs.
A separate study by Smart Money People also highlights that nearly half of financial services customers (48%) are frustrated by a lack of access to human support. And an over-reliance on chatbots (24%) from firms. This epitomises the challenge facing customer services transformation projects in financial services and other categories. How can businesses get the right balance between AI and the human touch to optimise the customer experience? And what are the risks to getting the balance wrong?
Humanising the digital, digitising the human
Undoubtedly businesses can drive efficiencies in customer service operations with the help of technologies. These include AI, machine learning for analysing customer data, and robotic process automation (RPA) for handling repetitive tasks like extracting data from financial documents and using next generation chatbots. They allow human agents to focus on more complex issues, bringing empathy and creativity to their interactions.
Combining AI and human agents can then enable what we call ‘humanising the digital and digitising the human’. It represents a hybrid approach. For example, live speech AI analytics can provide helpful prompts or insights for agents, during conversations with customers, while freeing up their time.
Automating quality assurance and using generative AI to summarise customer interactions is helping to boost agents’ productivity while driving upskilling and training. Sentiment analysis and conversation analytics can also help agents to identify triggers for vulnerability. This can help them to provide the right level of support customers need and identify the next best action to take.
Developments of these customer service technologies will continue to drive transformation. Advanced tools can assess past and present customer data, suggest personalised next steps and guide agents through complex interactions. This helps ensure they deliver the right outcomes quickly and effectively to all customers.
Addressing the imbalance
Encouragingly, addressing the balance of AI and human agents is on the radar of businesses. Nearly a third (29%) of financial services businesses told us in a separate study that they planned to move the focus away from AI to human contact.
However, this compares to 51% in our study saying they planned to introduce more technology, such as AI and automation, to support the customer experience.
Understandably, many businesses see such technology as a route to saving money. But cost savings can still be reaped by empowering human agents with the right digital tools.
Companies can set clear goals for which processes need improvement, design solutions that meet those specific needs, and take a people-first approach. What this means, is using technology at the right times, in the right places – what we call ‘digital orchestration’ – and always knowing why it’s being used and what it’s expected to deliver.
Supporting vulnerable customers with AI
This is even more important when it comes to vulnerable customers, tailoring options like access to a human, to avoid the risk of alienating a large customer base
Nearly half (47%) of people in the UK identify as vulnerable, according to the Financial Conduct Authority. These individuals may face one or more of a wide range of unique challenges like mental or physical health issues, or have experienced difficult life events like bereavement.
Our study, which polled 250 individuals who self-identify as vulnerable, found that more than three-quarters (78%) of vulnerable consumers said that they prefer some level of human contact when seeking help, as many feel AI tools fail to fully understand their unique needs, leading to delays and frustration.
Nearly half (48%) of those who identify as vulnerable also admitted to avoiding businesses entirely when they do not provide adequate support tailored to their needs: largely in the form of inadequate human interaction.
However, 56% of those surveyed felt that AI and technology could meet their needs just as well as a human could. This reflects a growing acceptance of digital solutions, indicating that while many still prefer human contact, there is an openness among some vulnerable customers to engage with AI-driven assistance, as the impact of this advancing technology continues to permeate all in society.
Critically, in striking the right balance between humans and AI, businesses need to understand the preferences of their customers and how they want to interact with the organisation.
Looking ahead
Many business leaders will be turning to their IT and customer experience directors to see how they can replicate the apparent success of businesses like Klarna in adopting AI while reducing agent capacity. Yet any customer service transformation project must consider the risks of failing to balance AI and the human touch and what impact it might have on customers.
Businesses have the most to gain by using technology in a way that supports and enhances the human experience, for both the agents and the customer – creating personalised and genuine interactions that solve customer issues in the shortest amount of time.
Berkley Egenes, Chief Marketing & Growth Officer at Xsolla, on the legislation changing financial services
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The European Union’s Digital Market Act has sent tremors through digital payments. The legislation is designed to stop Big Tech’s monopoly over vital online services, from search engines to messaging apps. But beneath the surface, one of the most fascinating battlegrounds is how the Digital Markets Act will impact the lucrative world of digital payments. A space long dominated by a few influential players. This will affect how industries, including the video game industry, monetise these services.
Big tech’s digital tollbooth
For years, the platform owners have controlled much of the infrastructure around digital payments. Major platforms have tightly controlled access, charging app developers and merchants fees for every transaction processed. Furthermore, they take hefty cuts from each purchase through their ecosystem. The impact of the Digital Markets Act may vary across different platforms. Some companies will need to adjust their models to fit the legislation. Others may push back or delay changes through legal and regulatory channels.
The Digital Markets Act specifically targets a select group of ‘gatekeepers’, defined by their user base, revenue, and platform reach. Not every platform or company will be obligated to follow the Digital Markets Act’s rules. However, companies like Apple and Google, fall under the Digital Markets Act’s direct scope. The legislation now obliges these companies to open their platforms. This will allow smaller players and third-party services to operate without being strangled by eye-watering fees or exclusionary policies.
The impact on monetisation with Digital Payments
The big question is how this will impact the business models of the gatekeepers and the developers who rely on these platforms. For years, the mobile platforms have depended on hefty commission fees. Often as high as 30%, these monetise digital payments within their ecosystems. These fees have been a central sticking point for developers, particularly video game studios, which sometimes generate billions in revenue through in-app purchases and microtransactions.
Free-to-play mobile games specifically rely heavily on players making in-game purchases, from cosmetic skins to virtual currency. Under the current system, a significant chunk of that revenue is siphoned off by platform holders. They collect commissions on every transaction. This has forced game developers to either raise prices or accept slimmer margins while operating within the confines of strict payment policies.
The Digital Markets Act is disrupting this current model. Game developers have been fighting the ability to direct players to alternative payment methods. They may now have the freedom and access to offer alternative ways to market and monetise their game while still having the player experience on the mobile phone. As a result, for the first time, consumers may be able to choose alternative payment processors. This potentially reduces costs for players and developers alike.
For video game developers, particularly indie studios, the Digital Markets Act could represent a long-awaited relief from the large hold of app store economies. Developers can now distribute, market and sell their digital items and bundle packs through their online web shop or mobile SDK. By exploring these alternative options, developers will be retaining more of the profit per transaction. They could invest in better content or offer custom promotions to players – a win for both creators and consumers in the gaming industry across Europe.
Don’t ignore the challenges
The Digital Markets Act ushers in a brave new world of competition and choice for consumers, but it’s not all plain sailing. While the Digital Markets Act is designed to promote competition, the actual implementation of its provisions is still subject to regulatory developments and potential litigation. This means the full impact of the Digital Markets Act could take time to materialise. Moving towards a more open payment system demands a mountain of technical tweaks and a watchful eye from regulators. The real headache will be getting all these different payment systems to talk to each other while keeping security watertight.
Consumers also have to consider how they will adapt to these changes. While there are many benefits, changing habits takes work. The success of the Digital Markets Act will depend on effective communication, education, and transparency to ensure consumers are aware of the new options and their benefits.
A new era for Digital Payments?
While the Digital Markets Act promises greater choice and a more level playing field, the road ahead will be anything but smooth. While the Digital Markets Act’s potential to break down monopolistic practices is significant, its effects may not be felt immediately. Regulatory processes, litigation, and slow consumer adoption could mean the transition to a more open digital payments landscape occurs gradually over time. Gatekeepers have maintained a firm grip on payment infrastructure for years, charging high fees that have eaten into developers’ profits. But with the Digital Markets Act tearing down some of these walls, game studios may have the flexibility to finally bypass gatekeepers and offer cheaper in-game purchases, subscriptions, and services directly to consumers.
While the Digital Markets Act opens doors for smaller developers and alternative payment options, it also forces companies to rethink their monetisation strategies. This could potentially pass new costs onto consumers in other ways. What is clear is that the digital payments landscape is in flux. How the tech giants, game developers, and consumers adapt to this new reality will define the future of monetisation in the digital economy. The game is far from over, and the real winners have yet to be decided.
FinTech Strategy spoke with Ryan O’Holleran, Head of Sales, Enterprise, EMEA at Airwallex, to learn about the global payments and financial infrastructure provider
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Airwallex, a financial infrastructure provider, offers a range of services. Including multicurrency accounts, payment acceptance card issuing, foreign exchange (FX) payouts, treasury and expense management. In addition to supporting small and medium-sized businesses, the company also provides APIs and a software layer for direct access to enterprise businesses. As well as an enterprise platform product called Scale. Airwallex has found success working across various industries. It works with the likes of Bird (formerly MessageBird) to handle global accounts and backend treasury, and partners with Qantas to offer financial tools for their business partners.
The company also enables faster and more efficient payments through its patchwork network of financial partnerships and licenses. Airwallex has experienced significant growth even during economic downturns. As of August this year, Airwallex globally processed transactions worth more than $100 billion annually and saw a 73 percent year-on-year increase. It is now focused on embedded finance solutions and global expansion.
At Money20/20 Europe, FinTech Strategy spoke with Airwallex’s Head of Sales, Enterprise, EMEA, Ryan O’Holleran, to find out more…
Tell us about the genesis of Airwallex?
“Our co-founder, Jack Zhang, started a coffee company in Melbourne, Australia, which is still around today, with a few friends from university. And while they were building out this coffee shop, they were buying beans from abroad, along with supplies and packaging. They found how hard it was to actually pay for services, send funds abroad and deal with multiple currencies. So, they saw an opportunity to help streamline the financial infrastructure for small businesses. That’s when Jack and his co-founders put Airwallex together and built out an initial SME’s use case to allow multicurrency accounts and FX payouts. Since then, the business has really expanded…
Today, Airwallex provides a set of APIs – we’re really providing financial infrastructure to move money globally. On those APIs, we also have a layer of software that we can offer direct access to enterprise businesses. The third part of this, which is kind of the new product over the last three years, is our enterprise platform product called Scale. Scale allows you to embed those financial services into a product as well as a platform or marketplace. So, you kind of think about it as a direct treasury product, APIs and a platform product.”
Tell us about your role at Airwallex?
“I’m originally from San Francisco, grew up in the Bay area, started in tech, did a couple of startups, and I actually got into payments via Stripe. I joined Stripe back when there were about 200 employees in San Francisco. Spent some time in Chicago and then moved to the UK initially with Stripe. I was there for about five and a half years, as we went from 200 staff to 6,000. At that point, I wanted to get back to something a little bit different. To help more cross-functioning with product and help scale businesses. The opportunity with Airwallex came along where I saw the company addressing many things my customers at Stripe were asking for.
So, the FX piece, mass payouts, treasury, all complimented what Stripe is doing with acquiring. Since I joined the team three years ago, we’ve been scaling across EMEA. We now have offices in London, Amsterdam, Vilnius and just last year launched our office in Tel Aviv to cover Israel. And we have teams in the Americas and APAC where Airwallex was founded.”
What are some of the key challenges financial institutions are facing that you can help them with? What problems are companies asking you to solve? In doing so, what are the challenges for Airwallex?
“We work in different areas. This is where I think we have differentiated the business and also where I see the industry moving. If you look back over the last five, 10 years, there was this approach where you had Stripe and all the major players coming in and saying, we can do things and we can do it really well and you only need to use us, you don’t need to use a patchwork of providers. I think that is starting to shift. You see this with orchestration layers like Primer or Gravy, allowing people to be agnostic on PSPs. And then you’re seeing people think about redundancy. So, the heads of payments we’re talking to this week are looking at two or three providers because they need redundancy or want to use the best provider in each region. They don’t want to be siloed.
Airwallex can be used in a segmented approach. So, if you just need us for payouts, you can do that. If you just need us for FX, you can do that. If you just need us for acquiring, you can do that. Or we could do that globally and you can adjust as you see fit. So, the flexibility of Airwallex I think is one of our superpowers.”
Tell us about some of the successful partnerships Airwallex has been involved in…
“The interesting thing about Airwallex is that since we’re providing financial infrastructure, there’s a huge variety of customers we work with. One of the local ones is Bird (a cloud communications platform that connects enterprises to their global customers). Using our software product they are creating global accounts, handling backend treasury, payroll, suppliers and more. We’ve also worked with Qantas to build out an SMB solution embedding all of the Airwallex financial services and they call it Qantas Business Money.
Elsewhere, Brex in the US were looking for a provider to help with their payout rails. One of the things Airwallex has done is rebuilt the Swift network via local rails. So, we have a patchwork network of financial partnerships and licences where if you are located, let’s say in the US, but you want to pay somebody out in the UK, you get access to faster payment rails having never set foot in the UK or separate rails via Europe having never set foot in the EU. So, you get this mass payoff solution of local rails, which is faster, cheaper, and more efficient than using something like Swift.”
What trends are you seeing across the FinTech landscape? What opportunities do you see for Airwallex?
“I think where we’re seeing a lot of opportunities, in EMEA specifically, in B2B, vertical, SaaS, travel and marketplaces, is this embedded finance solution. It was kind of a buzzword a few years ago and now we’re actually starting to see it develop. I view it as actually embedding all of these financial services – whether it be a wallet, issued cards, or local multi-currency accounts – and being able to monetize that. So, we’re seeing this with a lot of our customers actually wanting to white label our products, embed that and bring payments on platform.”
And what’s next for Airwallex? What future launches and initiatives are you particularly excited about?
“The growth of Airwallex, specifically on a global scale, over the last few years is one thing I’m very proud of because it’s happened during one of the worst economic downturns we’ve experienced. FinTech was almost retracting in terms of budgets and investments. You’re starting to see the tide turn, but we were able to grow over 100 percent year on year, through some of the toughest times for business. And now we’re really starting to see that pick up because the businesses, who actually decided this is going to be a building year for us now, they’re going live, they’re accelerating, they’re growing.
And so we’re seeing the ROI of that investment. It’s a testament to the global financial infrastructure we’ve built. Meanwhile, Airwallex became cash flow positive in 2023. It now processes more than $100 billion in annualised transaction volume. The company now employs over 1,500 people worldwide working across 23 international offices.”
Why Money20/20? What is it about this particular event that makes it the perfect place to showcase what you do? How has the response been to Airwallex?
“The great thing about Money20/20, here in Europe, and in Asia and the US, is the good division between buyers and sellers. So, you have all these service providers like Airwallex, Amex, etc… And then you have the Heads of Payments from companies like Booking.com, Vinted and SumUp who are coming here with their teams to meet with providers. If you think about that from a sales perspective, those meetings are very hard to get outside of this environment. But over a week you get 15 different meetings each day that would normally take months to arrange. So, the ROI from this week is really powerful just from being able to have these conversations. Three years ago, we first came to suss out the event and as we’ve grown the response has grown. People are being proactive and keen to engage with us which is exciting to see.”
Finch Capital report shows UK FinTech sector dominant across Europe
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The latest annual State of European Fintech report by FinTech growth capital firm Finch Capital has been published. It shows the UK dominating Europe with 65% of deals in H1 2024. The UK is maintaining its dominance amid declining funding across the continent.
Highlights include:
Funding in UK FinTech increased 3% year-over-year to £2.3bn, highlighted by Monzo’s £500m deal.
UK sectors such as insurance set to gain from AI adoption, with 80% of actuaries using it for improved risk analysis.
FinTech sector beginning to see jobs market recover in Europe, up 10% YoY.
“The next wave of fintechs is shifting from unicorns to ‘half-a-corns,’ with £500m valuations becoming the new benchmark” Aman Ghei, Partner at Finch Capital
The UK has increased its dominant role in Europe’s FinTech sector. It now accounts for two thirds of the total volume of deals reached across the continent in the first half of this year. According to a new annual report analysing the sector, with investment and M&A anticipated to grow this year and into 2025.
The annual State of European Fintech 2024 report found the UK is strengthening its position at the forefront of the European FinTech sector, despite an overall decline in funding across the continent.
The report highlights the ongoing challenges faced by the sector. It notes that higher interest rates, a focus on cost efficiency and increased scrutiny on the sustainability of business models have driven the UK to account for around 65% of fintech deals in Europe.
Funding in the UK FinTech sector rose 3% YoY to £2.2bn compared with £1.9bn in H1 of last year. The largest deal done in Europe in H1 was UK’s Monzo, which raised £500m in equity.
The European FinTech Picture
Overall, the 9th edition of the annual report, authored and compiled by leading fintech growth capital firm Finch Capital, found that although it remains a challenging environment for European FinTechs, there are clear signs of brighter prospects ahead.
While the UK leads the way, the Netherlands showed resilience, with investment volumes holding steady. Meanwhile, Ireland, Germany, and France all saw major government-backed initiatives aimed at fostering growth through 2025. Signalling strong long-term commitment to the local technology ecosystems.
Despite a notable contraction in funding across Europe, some key sub-sectors helped by higher interest levels, such as challenger banks like Revolut and Monzo, are beginning to show profitable growth.
Higher Rates and Boosted Profits
The report revealed that total capital invested in European fintechs in the first half of 2024 fell by 25% YoY, from £3.2 billion in H1 2023 to £2.4 billion in H1 2024.
However, profitability in sub-sectors like banking is driving larger funding rounds. The top challenger banks are generating close to £600m in profit in 2024 compared to a £125m loss in 2023.
As these banks emerge as success stories, the UK has become a hub for profitable growth, while other European nations work to adapt, the report found.
Mid-Market Fintech M&A Thrives
The report also highlighted the increasing activity in the mid-market M&A space across Europe. Particularly in the UK, which is benefiting from consolidation in the sector.
Funding rounds for fintech unicorns have slowed, the findings show, with investors prioritising companies with solid financial fundamentals and avoiding overly ambitious valuations based on hyper growth and unproven profitability.
European exits under £500 million now account for 32% of global M&A activity, although the market remains 2-3x smaller than the US for larger deals, according to the report.
AI Creating Efficiency
The report also found that, as a leader in fintech innovation, the UK is expected to benefit significantly from the adoption of AI technologies in the coming years, particularly in the insurance sector.
According to research, 4 out of 5 actuaries are now using AI to improve risk analysis and pricing models and 65% of executives say they will invest more than $10 million in AI in the next 3 years, making the industry more efficient.
Commenting on the findings, Aman Ghei, Partner at Finch Capital, said:
“The challenges that fintech faced in 2023 were necessary for the sector to mature and become more sustainable. While funding may be down overall, and unicorn chasing has slowed, there is plenty of opportunity for companies that are capital efficient and have a clear path to profit. With AI transforming the industry and significant dry powder still available, the next 12-18 months will mark a turning point for fintech in Europe. The next wave of fintech success stories will likely be built on sound financials rather than rapid revenue growth alone.”
Hugo Farinha, Co-founder and CTO at Virtuoso QA on why AI is driving organisational change across financial services
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We’ve seen an enormous amount of discussion concerning all aspects of AI since the emergence of Chat GPT made it headline news. However, most articles and conversations focusing on its business impact seem to wilfully ignore the ‘elephant in the room’. Namely, the inevitable organisational change AI will usher in, especially for employees.
AI technology driving change
To ignore change is folly, and likely to have the exact opposite effect that businesses and AI technology vendors want. We can’t pretend workforces won’t be disrupted by such a seismic technological advance. Certain job roles will become obsolete. Business leaders can’t run the risk of creating a culture of fear and uncertainty among employees who are unlikely to be fooled.
It’s true AI could lead to leaner operations, particularly in insurance and finance companies, with fewer employees needed for routine tasks, but only half the story. Smart businesses will almost certainly reinvest cost savings into new growth areas that require specific human talent. Companies that maintain a strong human element in customer service and personalised offerings will differentiate themselves in a crowded market. The rise in AI-driven, agile companies will create faster market shifts and greater competition.
While AI has the potential for productivity and efficiency gains, and even to do the same with less if needed, I actually don’t predict major job culls in the next few years. AI is particularly good at data processing and data analytics, in insurance for example. So, when more data can be processed and analysed, human intervention can make better informed decisions as a result. In the short to medium term, data analysis and decision making will remain firmly in the human realm. But powered by AI.
The Future for Artificial Intelligence
Meanwhile, the technology is still evolving, and organisations need to build a model that layers over the top of AI – powered by it, rather than replaced by it. Despite the hype, we are still a long way from AI becoming an entity that can lead, implement and operate itself to a purposeful end. But it will increasingly power applications overlaid by strategic, human-led frameworks.
To achieve this, leaders must bring their teams with them on the journey. In the field of testing for example, developers have traditionally written code as part of their role. This is a very time consuming and laborious task. Historically skills gaps have led to delays in progress. But the ability to ‘outsource’ to AI has freed up the time of those developers to focus on the purpose of that code in relation to the product. And, ultimately, the customer. Similarly, leaders in all fields need a broader understanding of AI use cases such as these to make effective strategic decisions. For example, on hiring. Understanding when to bring in more people and when to bring in new technology to complement the skills of your existing team means understanding AI’s strategic implications, technical capabilities and limitations.
An Evolving Job Market
From the perspective of the employee, the job market will continuously evolve alongside AI advancements. It will require ongoing adaptation and learning to stay relevant. Skills such as empathy, communication, and negotiation will remain vital. These are differentiators and difficult for AI to replicate. Understanding AI tools and data analysis will be increasingly important, even for non-technical roles. The ability to adapt to new technologies and continuously learn will be essential. Moreover, as AI becomes more integrated, the need for professionals who understand the ethical implications and regulatory requirements will grow exponentially.
Driving growth and job creation in this new world will require a different mindset to the current received wisdom. From both employees and leaders. In addition to the advances and changes already discussed, AI also has the potential to level the playing field, enabling smaller or newer companies to compete more effectively with, and even seriously threaten, established players. With many traditional barriers to entry such as burdensome start-up costs removed, new business models are likely to emerge. In much the same way as they did in the early days of the internet. Investors will be on the lookout for the next ‘giant killer’.
This will create opportunities for those with the foresight to upskill, as well as for those looking to start their careers. Although those opportunities and the jobs of tomorrow may not yet be completely clear. What is clear, however, is that established businesses cannot afford to be complacent. Change is inevitable and empires can be toppled overnight by technology as disruptive as AI. By embracing it early, leaders in those businesses will have the opportunity to spot and fix the gaps and redundancies in their business models that the technology and its capabilities exposes before the market does so more painfully and publicly.
Our mission is to enable and lead the world’s quality-first revolution. QA tools haven’t kept up with the demands of the testing world. Virtuoso is here to deliver with AI-powered, low-code/no-code test automation to support the modern business.
“Virtuoso technology represents the foundation for software quality in the digital world, and we are proud to be a critical, guiding force in the era of AI.”
AXA UK has launched new online InsurTech tools to enable customers to notify claims digitally for both home and car insurance
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AXA customers can now benefit from a new and improved digital service when making an insurance claim. They can use InsurTech tools that allow them to notify losses online. The improved online service allows customers to notify AXA of their claim online anytime they choose. Not only will it be more convenient, but it will also make for a more efficient claims experience. This allows AXA to offer support and resolve claims in a timely manner.
AXA Online Insurance Tools
Car insurance customers can register claims for road traffic accidents, theft of vehicle, lost or stolen keys, misfuelling, storm or flood damage and malicious damage. Using this service gives customers the option of an end-to-end digital notification experience. It offers a broader choice in the ways they can interact with customer service teams.
Home insurance customers can also use the tools to register claims online for theft, escape of water, flood, storm, accidental damage and accidental loss. This is then picked up by the customer service team to take the claim forward.
Making an impact with customers
The improved service is already making an impact with customers. A recent home insurance claim was reviewed and a supplier was instructed within two hours of being registered online. Motor insurance customers have also been able to book in their vehicle for repairs within minutes of notifying AXA of a claim.
“We know that our customers’ expectations have evolved in recent years. They want the claims process to be quick, clear and simple. That’s why we’ve worked hard to ensure that these enhanced digital claims tools offer customers fast and seamless journeys. At a time when they need it most as well as offering increased flexibility and improving their overall experience.”
Suzy Tiffany, Retail Claims Director at AXA UK
AXA has focused on how it can improve customers’ experiences and interactions by providing digital capabilities where possible across its claims journeys. The claims submission service can also be accessed by brokers, enhancing the claims journey for them and their clients.
However, all the usual channels will still be available for brokers and customers to contact the claims teams. Even if they have notified a claim online, they can still pick up the phone and speak to someone if they prefer.
Philipp Buschmann, co-founder and CEO of AAZZUR on how the customer becomes the investor with Embedded Finance at the heart of the wealth management revolution
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Wealth management has traditionally been a game for the well-off. It often requires large sums of money just to get started. For decades, the idea of “investing” conjured up images of Wall Street brokers managing hefty portfolios for a small group of elite individuals. But, thanks to Embedded Finance, times are changing and the barriers to investing are coming down. The technology is reshaping how people handle their money. Here’s what it can do for you.
Tackling the investment problem
Historically, investing hasn’t been easy. Most brokers require a significant minimum deposit to open an account, often in the thousands. Fees and commissions on trades can add up quickly, and if you don’t have a large amount of capital, these costs can erode your profits. For many, these hurdles were enough to keep them from even thinking about investing. It simply didn’t feel like something for “ordinary” people with average incomes.
Even with the rise of online brokers, the stock market has remained intimidating to a lot of people, many of whom felt like they lacked the knowledge or resources to get involved.
On top of the classical challenges we must also discuss the upcoming wealth transfer. The next generation of users have no interest in sitting with wealth managers; at the same time they don’t have the knowhow to trade or invest.
Imagine being able to not only excite your customers but empower them as well. That’s what embedded finance solutions promise. As companies strive towards more inclusive messaging, adopting embedded finance tools has never been more valuable. One of the great perks is that it doesn’t require a complete overhaul of IT infrastructure, instead, it involves a seamless experience that even junior employees can understand and implement.
Embracing the solution with Embedded Finance
I’ve said it’s easy – but how easy? Embedded finance works by bridging the gap between traditional financial systems and the average consumer. By integrating financial services directly into everyday apps and platforms, it makes it possible for people to start investing without even realising they’re doing it. Monzo is an example of it in action. They used embedded finance solutions to enable customers to invest directly in the bank during its fundraising rounds. They raised millions by allowing users of the app to seamlessly invest and become shareholders, a great example of how “the customer becomes the investor”.
Think about how your business manages its money. You most likely use an app to track accounts and make payments. This is no different to customer budgeting, and it’s a window of opportunity for you to tap into. That app can offer you the ability to automatically invest any leftover money at the end of the month into a diversified portfolio. Customers don’t need to download a separate app or set up an account with a brokerage firm. Everything is integrated into the website they’re shopping on. This is the beauty of embedded finance – it makes financial services a natural part of your daily life.
For younger people just starting out on lower salaries and learning how to invest sensibly, there has never been a greater time to be innovative and branch out into financial services.
The second vector for investment is to centre it around a new social frame. Investment’s can be around supporting your ideals, for the environment, or for technologies sake. This means that there are apps/club/activities that can become another home for investment. The same way country clubs aren’t just for food, golf and banter. Embedded finance opens the door for classically aligned companies and charities to think about expanding their business model. I could imagine Greenpeace offering embedded investing. So, could the country club co-invest in art that is displayed (but also invested) in.
Equalising opportunity with Embedded Finance
Embedded finance allows financial services to be delivered in a more personalised, user-friendly way. Apps can now provide personalised investment recommendations based on a user’s spending habits, savings goals, and risk tolerance. And thanks to automation, these services are becoming more affordable and scalable. Instead of paying for an expensive financial advisor, users can rely on AI-driven tools to offer similar advice for a fraction of the cost, or even for free. Wealthfront does this by offering automated financial planning and investment management with AI-driven recommendations and tax optimisation strategies.
GoHenry is another example of a company taking the initiative and embracing its solutions. They allow customers to invest in the company using the Crowdcube platform. People can invest in as little as they want and become shareholders with ease. As a result, loyalty is enhanced and capital surges.
Another example is fractional investing. In the past, buying a single share of a company like Amazon or Tesla might have been out of reach for someone with limited funds. However, this no longer has to be the case as companies like Robinhood allow customers to invest in big stocks like Tesla for as little as £1, making it possible for anyone to grow their wealth without having to stretch themselves and get into debt.
What does the future hold?
As embedded finance continues to evolve, we can anticipate even more innovations in the world of micro-investing and wealth management. The lines between financial services and everyday life will continue to blur, making it easier than ever for people to manage their money, invest, and build wealth – all without needing a financial background or a large amount of capital.
Philipp Buschmann is co-Founder and CEO at AAZZUR, a one-stop-shop for smart embedded finance experience. Recognised as a rising star in the FinTech space, AAZZUR’s mission is to build profitable banking whilst at the same time empowering consumers to have access to better informed financial choices.
Philipp is a serial entrepreneur with extensive experience of working in Challenger Banking, Financial Services, IT and Energy across the world. He took one of his business’s public – Ignis Petroleum was publicly listed in the US and Germany.
Having started as a developer in Financial Services, Philipp has first-hand experience of the banking revolution from both a technology and financial perspective. His interest in behavioural economics helped inspire AAZZUR’s revolutionary work on customer centricity in banking.
Philipp holds an MBA from the London Business School. He is passionate about entrepreneurship and loves exchanging ideas, insights and discussing FinTech’s future. He has spoken at major Fintech events including Money 20/20, MoneyLive, Finovate, Fintech Matters, and the Future of Retail Banking.
Cullen Zandstra, CTO at FloQast on mitigating the risks of AI to deliver benefits to financial services
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There’s a lot of buzz around Generative AI (GenAI). What’s not always heard beneath the noise are the very real and serious risks of this fast-developing AI tech. Let alone ways to mitigate these emerging threats.
Currently, one quarter (26%) of accounting and bookkeeping practices in the UK have now adopted GenAI in some capacity. That figure is predicted to grow for many years to come.
With this in mind, and as we hit the crest of the GenAI hype cycle, it’s critically important that leaders focus closely on the potential risks of AI deployment. They need to proactively prepare to mitigate them, rather than picking up the pieces after an incident.
Navigating the risky transition to AI
The benefits of AI are well-proven. For finance teams, AI is a powerup that unlocks major performance and efficiency boosts. It significantly enhances their ability to generate actionable insights swiftly and accurately, facilitating faster decision-making. AI isn’t here to take over but to augment the employees’ capabilities. Ultimately improving leaders’ trust in the reliability of financial reporting.
One of the most exciting aspects of AI is its potential to enable organisations to do more with less. Which, in the context of an ongoing talent shortage in accounting, is what all finance leaders are seeking to do right now. By automating routine tasks, AI empowers accountants to focus on higher-level analysis and strategic initiative, whilst drawing on fewer resources. GenAI models can help to perform routine, but important tasks. These include producing reports for key stakeholders and ensuring critical information is effectively and quickly communicated. It enables timely and precise access to business information, helping leaders to make better decisions.
However, GenAI also represents a new source of risk that is not always well understood. We know that threat actors are using GenAI to produce exploits and malware. Simultaneously levelling up their capabilities and lowering the barrier of entry for lower-skilled hackers. The GenAI models that power chatbots are vulnerable to a growing range of threats. These include prompt injection attacks, which trick AI into handing over sensitive data or generating malicious outputs.
Unfortunately, it’s not just the bad guys who can do damage to (and with) AI models. With great productivity comes great responsibility. Even an ambitious, forward-thinking, and well-meaning finance team could innocently deploy the technology. They could inadvertently make mistakes that cause major damage to their organisation. Poorly managed AI tools can expose sensitive company and customer financial data, increasing the risk of data breaches.
De-risking AI implementation
There is no technical solution you can buy to eliminate doubt and achieve 100% trust in sources of data with one press of a button. Neither is there a prompt you can enter into a large language model (LLM).
The integrity, accuracy, and availability of financial data are of paramount importance during the close and other core accountancy processes. Hallucinations (another word for “mistakes”) cannot be tolerated. Tech can solve some of the challenges around data needed to eliminate hallucinations – but we’ll always need humans in the loop.
True human oversight is required to make sure AI systems are making the right decisions. We must balance effectiveness with an ethical approach. As a result, the judgment of skilled employees is irreplaceable and is likely to remain so for the foreseeable future. Unless there is a sudden, unpredicted quantum leap in the power of AI models. It’s crucial that AI complements our work, enhancing rather than compromising the trust in financial reporting.
A new era of collaboration
As finance teams enhance their operations with AI, they will need to reach across their organisations to forge new connections and collaborate closely with security teams. Traditionally viewed as number-crunchers, accountants are now poised to drive strategic value by integrating advanced technologies securely. The accelerating adoption of GenAI is an opportunity to forge links between departments which may not always have worked closely together in the past.
By fostering a collaborative environment between finance and security teams, businesses can develop robust AI solutions. They can boost efficiency and deliver strategic benefits while safeguarding against potential threats. This partnership is essential for creating a secure foundation for growth.
AI in accountancy: The road forward
The accounting profession stands on the threshold of an era of AI-driven growth. Professionals who embrace and understand this technology will find themselves indispensable.
However, as we incorporate AI into our workflows, it is crucial to ensure GenAI is implemented safely and does not introduce security risks. By establishing robust safeguards and adhering to best practices in AI deployment, we can protect sensitive financial information and uphold the integrity of our profession. Embracing AI responsibly ensures we harness its full potential while guarding against vulnerabilities, leading our organisations confidently into the future.
Founded in 2013, FloQast is the leading cloud-based accounting transformation platform created by accountants, for accountants. FloQast brings AI and automation innovation into everyday accounting workflows, empowering accountants to work better together and perform their tasks with greater efficiency and accuracy. Now controllers and accountants can spend more time delivering greater strategic value while enjoying a better work-life balance.
Will Rolph, Business Development Manager at Clear Junction, takes a closer look at the tech making digital remittances possible
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Digital remittances are one of the main forces driving financial inclusion. Over 200 million migrant workers send money home every year. FinTech as a force for good can create positive changes for individuals and businesses; remittances are a prime example. Their role in facilitating financial inclusion cannot be underestimated. By increasing people’s purchasing power, raising per capita incomes, and feeding into local and national economic growth.
By 2027 remittances could reach $1.2 trillion, with the potential to unleash profound transformations in their recipient societies. Many factors are driving this growth. These include increasing waves of migration, none are as influential as the proliferation of innovative technology making remittances easier to send and receive. And at much lower cost than traditional money transfer channels beset by high FX fees and sluggish settlement times.
For decades, remittances were dominated by a few players including Western Union and MoneyGram. They have enviable global reach and networks. However, recipients – especially those in rural and remote locations – were faced with a lack of physical offices on the ground where they could collect their remittances. It was common for recipients to have to travel long distances to get their money. The loss of time and convenience is obvious. These often arduous journeys also came with increased risk of theft or loss of funds along the way.
The lack of physical infrastructure soon became a problem that tech was perfectly placed to solve. It did so in a way that allowed mobile payments to leapfrog legacy infrastructure issues with ease.
What’s powering digital remittances?
The tech behind digital remittances is a complex ecosystem that has evolved significantly over time. Furthermore, the pace of innovation shows no sign of slowing down. There are several key technologies and methods involved in advanced remittance solutions.
Electronic Funds Transfer (EFT) is a method of transferring money from one bank account to another electronically. Remittance services often utilise EFT to move funds between the sender’s bank account and the recipient’s bank account or designated payout location.
Payment gateways are another crucial component. These online platforms facilitate the transfer of funds between parties. They securely process transactions, verify payment information, and transfer funds between the sender and the recipient.
Remittance providers often integrate with banks, payment gateways, and other financial institutions via APIs (application programming interfaces). This facilitates access to banking infrastructure and fund transfers. The APIs enable real-time transaction processing, status updates, and seamless connectivity between the remittance platform and other financial services.
Security is paramount when it comes to remittance transactions. Remittance platforms employ encryption tech to secure data transmission and storage. This protects sensitive financial information and prevents fraud. Secure Socket Layer (SSL) encryption, Transport Layer Security (TLS), and multi-factor authentication are commonly used to safeguard transactions and user data.
These technological advances have all played their part in helping remittances to proliferate. People who were out of reach can now access a wide array of sophisticated financial services all from their phone thanks to the neobanking revolution.
Three tech trends taking digital remittances to the next level:
Super Apps
The main innovation that has sent remittances skyrocketing is the phenomenal adoption of smartphones, which has paved the way for the rise of money transfer super apps.
The importance of the smartphone in the global remittance market cannot be understated. By necessity, apps need to be user-friendly and easy to navigate to succeed. Apps play a crucial role in improving the remittance process. They offer the speed, cost efficiency, and security that users have come to expect. Furthermore, remittance apps often provide features that allow users to track their transfers in real-time and manage their transaction history easily. This helps in budgeting and financial planning, especially for those who send remittances regularly.
Most importantly, 4G or 5G networks mean such apps can reach users in remote or underserved areas where access to broadband internet infrastructure or traditional banking services is limited or non-existent. This accessibility is in turn driving inclusivity and promoting financial participation and empowerment among a broader segment of the population.
Eastern Europe serves as a good example of where this technology is particularly life changing. Across the continent, banking penetration rates range between 44% in Albania to 92% in Croatia. So, a key challenge and focus for banks, governments, and tech solution providers is driving greater financial inclusion, and improving remittance flows are key to this.
Blockchain
Just as cryptocurrencies use blockchain technology to track assets, some remittance providers are now leveraging the same technology to streamline the transfer process and enhance security.
Blockchain technology enables secure, transparent, and immutable record-keeping of transactions. This reduces the risk of fraud, enhancing trust between parties. Cryptocurrencies like Bitcoin and stablecoins are sometimes used for remittance purposes, leveraging blockchain technology for fast and low-cost digital cross-border transfers.
It’s easy to see the attraction of blockchain technology for remittance providers. Moreover, it is a fully encrypted, decentralised, and immutable ledger, and as such cannot be altered in any way. Also, because blockchain technology is decentralised, no intermediary bank or financial institution can get involved. For these reasons, blockchain could become crucial to the remittance industry in the coming years.
Artificial Intelligence & Machine Learning
There are few industries not being impacted by AI and ML technologies. Both are increasingly being employed in remittance services to detect fraudulent activities, improve compliance with regulatory requirements, and enhance user experience. Furthermore, these technologies analyse transaction patterns, identify anomalies, and provide insights to prevent fraudulent transactions and ensure regulatory compliance.
Why all of this digital transformation matters
Remittances play a vital role in both individual livelihoods and broader economic development efforts. This makes them an essential aspect of global economic relations and poverty alleviation strategies. Additionally, we can see the tangible, life-changing differences that payment technology evolution can achieve. Moreover, through increased household purchasing power, accessing formal and cheaper financial services, and indirectly through increased revenues for remittance service providers and the businesses people buy from.
Clear Junction is a global payments solutions provider that was established in 2016. The company was founded by a veteran team of financial professionals with many years of experience in cross-border payments and banking. Over the years, we have worked tirelessly to build and develop our own proprietary technology to facilitate an end-to-end regulated payments solution. We are licensed and regulated by the Financial Conduct Authority and have offices in multiple locations across the UK and Europe, including London, Poland and Latvia.
Russ Rawlings, RVP, Enterprise, UK&I at Databricks, on the future of AI in FinTech
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Strict regulation, along with time and cost restraints, means financial services must take a measured approach to technological advancements. However, with the emergence of GenAI, particularly large language models (LLMs), organisations have an opportunity to maximise the value of their data to streamline internal operations and enhance efficiencies.
Embracing GenAI has never been more important for organisations looking to stay ahead of the curve. 40-60% of the global workforce will be impacted by the growth of AI. Moreover, global adoption of GenAI could add the equivalent of $2.6tn to $4.4tn in value annually to global industries. The banking sector stands to gain between $200-340 billion.
But whilst the financial services industry can gain incredible benefits from GenAI, adoption is not without its challenges. Financial organisations must prioritise responsible data management. They must also navigate strict privacy regulations and carefully curate the information they use to train their models. But, for companies that persevere through these obstacles, the benefits will be substantial.
Building customised LLMs for financial services
Consumer chatbots have brought GenAI to the mainstream. Meanwhile, the true potential of this transformative technology lies in its ability to be tailored to the unique needs of any organisation, in any industry. Including the financial sector.
Risk assessment, fraud prevention, and delivering personalised customer experiences are some of the use cases of custom open source models. Created using a company’s proprietary data, these models ensure relevant and accurate results. And are more cost-effective due to their smaller datasets. For instance, banks can use a customised model to seamlessly analyse customer behaviour and flag up any suspicious or fraudulent activities. Or, a model can leverage sophisticated algorithms to assess an individual’s eligibility for a loan.
Another huge benefit of these tailored systems is trust and security. Deploying a custom open-source model eliminates the need to share sensitive information with third parties. This is crucial for organisations operating within such a highly regulated industry. This approach also democratises the training of custom models. Furthermore, it allows organisations to harness the power of GenAI whilst retaining control and compliance.
Using data intelligence to boost AI’s impact
To truly harness the power of GenAI, organisations must cultivate a deep understanding of data across the entire workforce. Every employee, regardless of how technical they are, must grasp the importance of proper data storage. Also how data can be used to improve decision-making.
Organisations can use a data intelligence platform to help implement this. Built on a lakehouse architecture, a data intelligence platform provides an open, unified foundation for all data and governance. It operates as a secure end-to-end solution tailored to the specific needs of the financial services industry. By adopting such a platform, businesses can eliminate their reliance on third party solutions for data analysis. They can create a streamlined approach to data governance and accelerate data-driven outcomes. Users across all levels of the business can navigate their organisation’s data, using GenAI to uncover important insights.
The future of AI in the financial sector
The path to success lies in embracing GenAI as a canvas for crafting bespoke solutions. Whilst no two financial institutions are exactly the same, the industry’s tools must strike a delicate balance between supporting specific use cases and addressing broader requirements, Customised, open source LLMs and data intelligence platforms hold the key, sparking transformative change across the sector. These tailored solutions will empower financial businesses to integrate cutting-edge innovations and ensure security, governance and customer satisfaction. Organisations that embrace this change will not only gain a competitive edge, but also pave the way for larger transformations, re-shaping the financial landscape and setting new standards for the industry.
Databricks is the data and AI company with origins in academia and the open source community. Databricks was founded in 2013 by the original creators of Apache Spark™, Delta Lake and MLflow. As the world’s first and only lakehouse platform in the cloud, Databricks combines the best of data warehouses and data lakes to offer an open and unified platform for data and AI.
PayPal Ventures, the global venture capital arm of PayPal, announced additional investment in Chaos Labs. This investment underscores PayPal Ventures’ confidence…
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PayPal Ventures, the global venture capital arm of PayPal, announced additional investment in Chaos Labs. This investment underscores PayPal Ventures’ confidence in Chaos Labs’ potential and their blockchain products.
Chaos Labs: Edge
Chaos Labs’ recent launch of Edge, a new decentralised oracle protocol, has garnered significant attention within the industry. Edge has already secured a remarkable $30 billion over the last 2 months. It has been adopted by leading exchanges such as Jupiter, the top perpetuals exchange on Solana. And also by GMX, the leading exchange on Arbitrum.
Edge offers a comprehensive, low-latency oracle solution. It combines accurate price data with actionable market intelligence. Its advanced architecture ensures the security and efficiency of DeFi applications. Furthermore, providing insights into market dynamics and security risks. Edge monitors the market for specific risk signals, performs the offchain data parsing and computation, and outputs one actionable data point.
Omer Goldberg, CEO and Founder of Chaos Labs on the PayPal Ventures investment
Omer Goldberg, CEO and Founder of Chaos Labs, said, “We’re excited to receive the strong confidence and additional support from the PayPal Ventures team. Edge by Chaos is the culmination of our entire company’s work and expertise. Edge Price, Risk, and Proofs deliver meaningful and unmatched contextualised risk and price data for assets including stablecoins and other real-world-assets. In addition to the crypto assets and venues that provide access to them.”
Last month, Chaos Labs announced a $55 million Series A funding round led by Haun Ventures, including prominent new investors such as F-Prime Capital, Slow Ventures, and Spartan Capital, and existing investors including PayPal Ventures. Chaos Labs has experienced significant growth, tripling its customer base and securing billions in trading volume, loans, and incentives.
PayPal committed to Blockchain
PayPal Ventures’ investment aligns with PayPal’s ongoing commitment to the blockchain ecosystem. In May 2024, PayPal launched its stablecoin, PYUSD, on the Solana blockchain.
Amman Bhasin, Partner at PayPal Ventures, said, “Our continued investment in Chaos Labs reflects our belief in their vision to create a safer crypto ecosystem. And move more financial services on chain. Chaos Labs has emerged as a leading risk authority in the sector and we are thrilled to witness their evolution as they launch innovative products like Edge to mitigate oracle vulnerabilities.”
About Chaos Labs
Chaos Labs leads the blockchain risk management industry with innovative solutions for the evolving onchain financial landscape. It enables protocols to verify stability across all market conditions, merging offchain observability with onchain risk parameter adjustments. Backed by leading venture capital firms, Chaos Labs continues to set new standards for security and responsiveness in onchain finance. Founded in 2021, Chaos Labs is headquartered in New York City.
About PayPal Ventures
PayPal Ventures is the global corporate venture arm of PayPal. We invest for financial return in companies at the forefront of innovation in fintech, commerce enablement, digital infrastructure, and crypto/blockchain technologies. Through the expertise, experience, and vast network of PayPal Ventures – and the companies we invest in – we are helping to bring transformative solutions to market faster. For more information, please visit: www.paypal.vc
Adam Edwards, Product and Growth Director at Satago on how embedded finance is helping drive digitisation for the B2B financial space
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Small and Medium Enterprises (SMEs) are at the heart of the UK economy. They contribute significantly to local employment and revenue across a wide array of sectors. However, the current economic landscape and consistently high inflation are inhibiting them from reaching their full potential.
Three key challenges which prevent SMEs from investing in growth are tight cash flow, poor access to capital and the late payments crisis. With over £32 billion in late payments plaguing them, SMEs need longer-term, meaningful policy action from the government, alongside better Working Capital solutions.
Investing in Embedded Finance
With a growing SME market needing better support than ever from lenders, banks are rapidly investing in IT adoption. Particularly, Embedded Finance tools, to better serve this sector. Indeed, analysts have forecast a staggering 148% growth in the Embedded Finance market. It is predicted to reach a revenue of $228 billion by 2028.
Banks have been quick to offer flexibility to consumers in the business-to-consumer (B2C) Embedded Finance space. Offering lots of options for flexible finance in response to high demand. However, the business-to-business (B2B) market has in many ways been slower.
There are certainly challenges here – but the opportunities are huge for the lenders that get this right to go on and serve the SME space. So, what can the B2B space learn from how Embedded Finance has succeeded in the B2C sector? And what are some of the benefits and new challenges that this investment could pose?
The role of Embedded Finance in supporting SMEs and founders
Embedded Finance emerges as an innovative approach to bolster SME support. It integrates financial services directly into non-financial platforms. This integration empowers SMEs to seamlessly access critical financial services. These include instant credit, streamlined payments processing, and optimised cash flow management. This enhances operational efficiency and financial resilience.
When we look at B2C financial services, we can see traditional banks working hard to catch up with challenger banks. These competitors have presented consumers with entirely new means to access digital banking, improve their visibility on financial information, and manage their funds and savings with secure API access.
This has forced traditional banks to digitise quickly in the B2C space to remain competitive and keep up with customer expectations. Embedded tools have become a key part of this. While the B2B financial services industry hasn’t traditionally faced the same level of market pressure to innovate – this is now starting to change. We will start to see the impact in a couple of ways.
I predict we will begin to see rapid growth in the number of partnerships between FinTech companies and B2B lenders. Where banks such as Barclays have already been partnering with the likes of Amazon on the consumer side for a long time to offer flexible payment capabilities, we will see a lot more similar partnerships starting to take place in the B2B space, to support the growing SME market. As a result, I anticipate a rise in the number of online marketplaces dedicated to the B2B lending space. We will also see increasingly niche market areas – such as agriculture and dedicated equipment manufacturers, for example.
The opportunities and challenges with Embedded Finance
There are several opportunities to be capitalised on via Embedded Finance in the B2B space. Lenders that have been held back by legacy systems in the past will now be able to offer a more flexible suite of digital finance options to customers, especially SMEs. SMEs, which may be run by a single founder or a small group of stakeholders, are likely to be used to an agile structure. They can take big decisions quickly and will be keen to be able to flexibly access financial tools. Through integration with expert providers, lenders can also benefit from new origination channels and access new pools of customers for bank accounts, financial consultancy and more.
For the fintech partners and integrators, including those providing white-labelled products to banks, there’s a chance to take advantage of the trust customers have in their banking providers. And the lenders’ brand reputations can increase their own revenue and future opportunities for sale.
Meanwhile, SMEs are set to reap the benefits of being able to offer better user and payment experiences to their own customers further up chain. They too, will benefit from better cash flow management, improved financial visibility and increased flexibility via different working capital tools. Just like consumers are able to – all of which will be facilitated by better digital tools.
However, it is worth acknowledging that as the B2B space grows, heightened concerns around fraud risk associated with financial transactions are also likely to emerge. Going forwards, we’ll see more analytics and artificial intelligence built into Embedded Finance. This will feed into underwriting models and support fraud checks. With more complex transactions and shared financial data via Embedded Finance partnerships, the risks of non-compliance could become more perilous. Therefore, there are certainly challenges ahead.
A competition for innovation in the B2B space
For SMEs to thrive, sustained and reliable access to cash flow is essential. Collaborative efforts between the government and the financial services industry are critical. Establishing robust regulatory frameworks and fostering innovation in Working Capital solutions will be vital.
The Embedded Finance market in over the next year and beyond can expect to see significant emphasis on B2B players, such as banks and corporate lenders. They are looking to catch up with the consumer market and serve SME customers with the most secure – and flexible – lending options.
Consumers have realised the benefits of seamless, digital financial services for themselves. We’ll now see demand growing as SMEs expect the same innovation and experience when it comes to their B2B financing. Lenders and banks that want to satisfy this growing pool of customers hungry for flexibility and sustainable lending support, will need to be willing to evolve and digitise, or risk missing out on the competition.
Satago is a leading fintech that enables lenders and corporates to streamline operations, boost revenue, and enhance their business customer experiences. This is achieved through cloud-native Working Capital and Cash Flow solutions, powered by real-time data, Open Banking, and API technology.
Luke Gall, Product & Engineering Director at Access PaySuite, part of the Access Group, on the open banking opportunity for FinTechs
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In the rapidly evolving landscape of financial services, Open Banking is no longer a futuristic concept but a present-day reality. Recent findings reveal that the adoption of Open Banking payments has surged, with 32% of financial services businesses and an impressive 58% of fintechs now offering this innovative payment method to their customers.
This uptake signifies a noteworthy shift for fintechs. Open Banking payments have overtaken Direct Debits (54%) and card payments made over the phone (4%) in terms of availability. The sector continues to expand at a remarkable pace. There are over 26,000 startups currently in operation globally. Understanding and leveraging Open Banking has become an increasingly crucial consideration for organisations to stay ahead in a competitive market.
The rise of Open Banking
Open Banking allows third-party financial service providers to access banking data and initiate digital payments on behalf of customers, provided they have explicit consent. This model not only enhances convenience for users, but also fosters greater competition and innovation within the financial sector. The growing adoption rates reflect a broader acceptance of this technology. It is driven by the potential to streamline payments, enhance user experiences, and offer personalised financial services.
In the UK, FinTech adoption is particularly robust – 84% of individuals use FinTech services daily. The push towards Open Banking is both a response to consumer demand and a strategic move for FinTechs to differentiate themselves. The rise in Open Banking adoption is a signal that financial services must adapt swiftly. For FinTechs, staying ahead involves more than just adopting new technology. It’s about leveraging tech to redefine and enhance service offerings.
Why FinTechs must embrace Open Banking
Today’s consumers demand seamless and efficient financial transactions in order to complete their purchases. Open Banking meets these expectations by enabling quicker and more secure payments. FinTechs can provide this to their customers by integrating Open Banking into their services. This significantly enhances customer satisfaction and fosters loyalty.
The rapid adoption of Open Banking by FinTechs highlights its growing importance. Those that hesitate or overlook this trend risk falling behind. Early adopters of Open Banking have the opportunity to leverage its capabilities to introduce distinctive features. These include instant account verification, real-time payments, and enhanced financial insights. It’s a crowded marketplace for FinTechs, but these advancements can deliver a competitive edge.
By granting access to banking data, Open Banking creates the possibility for FinTechs to work with other financial service providers in a collaborative environment. Around 82% of FinTech startups say this helps them to innovate more quickly and effectively. The ability to partner with others in the industry can encourage the development of novel solutions and services. These can be pecifically tailored to evolving consumer needs.
The role of third-party payment providers
Third-party payment providers play a crucial role in helping FinTechs adopt Open Banking. They do this by offering the infrastructure and expertise needed to integrate with banks and other financial institutions. These providers facilitate secure access to customer data through APIs. This enables FinTechs to deliver innovative services like personalised financial management and account aggregation. And all without the need to build costly systems from scratch.
By leveraging the established networks and compliance frameworks of third-party providers, FinTechs can more easily meet regulatory requirements. Such as those outlined in the Revised Payment Services Directive (PSD2). This allows them to scale faster and focus on enhancing the customer experience. By prioritising simplicity and convenience, FinTechs can not only improve user satisfaction but also ensure their Open Banking offerings meet the high expectations of today’s consumers.
However, FinTechs must recognise not all customers are familiar with the nuances of Open Banking. To ensure a smooth transition and maximise the benefits of this technology, financial service providers, including FinTechs, should invest in educating their customers about its advantages and functionality. This will empower users to confidently engage with Open Banking and fully leverage its potential.
At the same time, safeguarding sensitive financial data is critical to building and maintaining this trust. Robust security measures, such as strong encryption protocols like Advanced Encryption Standard (AES) and Data Encryption Standard (DES), are essential to protect data during transmission and storage. Regular security audits help identify and address vulnerabilities. Meanwhile, transparent privacy policies demonstrate a commitment to data protection.
The future of Open Banking
The trajectory of Open Banking is set to continue its upward trend, as more financial institutions and FinTechs embrace its potential. For FinTechs, this is an opportunity to lead the charge in transforming financial services. By understanding and addressing the key factors associated with adoption, FinTechs can not only stay relevant, but also drive the future of financial technology.
Embracing Open Banking is not just about keeping up with industry trends… It’s also about positioning yourself at the forefront of a financial revolution. The ability to offer innovative, secure, and user-centric services will define the next wave of FinTech success. In this dynamic environment, staying ahead of the curve requires foresight, adaptability, and a commitment to leveraging technological advancements. FinTechs that navigate these considerations effectively will not only thrive but also shape the future of financial services.
Why Access PaySuite? Getting paid should be simple – and that’s where we come in! Backed by The Access Group a top 5 UK software company, Access PaySuite is led by a team of payments experts with over 20 years’ of experience in the industry. Access PaySuite is a reliable, resilient solution that helps your business thrive with every payment.
FinTech Strategy spoke with Zak Lambert, Product Lead for Plaid in Europe, to find out more about the world-leading data network and payments platform
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Plaid offers the world’s largest open finance platform. Plaid specialises in bank connectivity and provides a single API for customers to integrate with banks around the world. They have had innovative success stories working with companies like Western Union and MoneyBox. Plaid see opportunities around current trends such as account-to-account payments, variable recurring payments, and cash flow underwriting for businesses and consumers.
At Money20/20 Europe, FinTech Strategy spoke with Plaid’s Product Lead for Europe, Zak Lambert, to learn more…
Tell us about Plaid…
“I work in product management for Plaid in Europe. We’re the world’s largest open finance platform operating across 20 markets in Europe and North America. Back in 2019 when we first launched in Europe our bread and butter was bank connectivity. Integrating with over 10,000 banks through a single API. We still provide that connectivity in one API for our customers. Millions of users go through that journey every day for a number of different use cases.
“I was part of the team that started Plaid in New York and opened the office there. I did a variety of things from helping customers integrate, building new products, working with sales teams, and anything else that would help us grow, About a year after that, I moved over to London to be the first person on the ground there. Fast forward five years and I’m delighted to be the head of product in Europe. I’ve been with the company for about five and a half years. Overall, it’s just been an exciting journey from a hundred people to more than a thousand now.”
Talk about some of the successful integrations Plaid is involved in…
“We recently announced that we’re working with Western Union across Europe to fund transfers, whether that’s someone depositing in the UK and Germany, Italy or Spain. Plaid is powering account to account payments for Western Union across their various use cases. Particularly when you look at the growing trend around account-to-account payments and pay by bank, we’re thrilled to be working with brands of that caliber. Since launch we’ve seen hockey stick growth for their customer adoption of pay by bank. This shows trust and reliability of the open banking ecosystem which we’re excited to be a part of. We are also delighted to be supporting MoneyBox, one of the largest fintechs in the UK. They handle millions of transactions to fund and create ISAs. Moneybox have launched VRP (Variable Recurring Payments) through Plaid in order to optimise their customer flows and have more reliability in customer recurring payments. With our new flow, users can go through the journey once, set up their consent, and then money can move in the background. It’s like a card on file with a bank account. We see this as a significant trend in the coming years in the UK specifically, and then across Europe as that product set develops.”
What trends are you seeing across the FinTech landscape? What opportunities do you see for Plaid?
The UK has always been an early adopter of open banking but we’re now seeing a surge in demand from mainland Europe. We are currently live in 18 markets in Europe and continue to focus on our reliability and depth in each market to ensure we can meet that demand.
This year, we’ve learned more about how our customers want to use VRP (Variable Recurring Payments). In June, we launched Moneybox’s VRP proposition to enable them to relaunch their Payday Boost offering which was previously restricted by direct debit limitations. Every week we’re having more and more conversations on VRP use cases.
We’re also excited about how open banking and fintech more broadly can help make financial access more inclusive. For example, open banking can help the underserved get more access to credit by using real-time data to inform underwriting decisions. At Plaid, we’ve built specific products to do this such as the Financial Insights Report that companies such as Capital on Tap are already using to inform their decisioning programmes.
And what’s next for Plaid? What future launches and initiatives are you particularly excited about?
“There are three areas I would highlight… First, pay by bank globally for Plaid. You look at Western Union, they’re probably not the first company to adopt something, but the second they adopt something it probably is about to hit mainstream. That’s significant volume. They’re one of the world’s oldest companies. They’ve been fantastic to work with. So, as that trust and familiarity start coming into play, people that aren’t Western Union come and say, okay, we’ve seen this experience. It was really good. We want it now. We’re working with our teams across the globe to bring that to life for North America and Europe in the simplest way possible. It’s really exciting.
“Second, we have the significant opportunity to bring lending into the 21st century. Particularly because of the third thing, which is the Plaid network. We’ve touched hundreds of millions of consumers. We’ve spent a long time building products to make payments easy and to make underwriting easy. And now we’re in the third phase… We have all of these users, this large network, so how can we make this even simpler for people? And just giving smoother experiences when the user is actually in the workflow. So, boosting conversion, delivering network style experiences in the same way that other network businesses do.”
Why Money20/20? What is it about this particular event that makes it the perfect place to showcase what you do? How has the response been to Plaid?
“This is my sixth straight Money20/20 and it gets busier every year! It’s great to learn more about the ecosystem at large. You can see developing trends each year, and it’s always a little bit different. You build relationships at Money20/20 that stay with you for the rest of your life. And it’s a perfect opportunity to meet people in the flesh that you might normally only see on screen. You can get a pretty direct read on what they’re working on and it’s exciting to be here making new connections.”
Henry Balani, Global Head of Industry & Regulatory Affairs at Encompass Corporation, on meeting the demand for improved risk management, operational efficiency, and customer service with pKYC
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The traditional banking and finance industry is evolving. Processes are experiencing a digital transformation as a result of perpetual Know Your Customer (pKYC). The pKYC approach enables modern banks to continuously update and verify customer information in real time. Banks are moving away from the reliance on periodic reviews. This change is driven by technological advancements. And the increasing demand for dynamic and responsive regulatory compliance mechanisms.
Perpetual KYC
Conventional KYC processes commonly involve periodic reviews of customer information at fixed intervals. These reviews are typically conducted every one, three, or five years. While these reviews are thorough and comprehensive, they are also static. This can result in outdated information, potentially overlooking changes in customer risk profiles or new compliance requirements.
On the other hand, perpetual KYC is dynamic and event driven. Through its continuous and automated approach, pKYC enables financial institutions to address risks and compliance needs in real-time. These risks can be determined by continuously monitoring customer activities. Furthermore, automatically updating profiles in response to specific triggers, including changes in personal information, significant transactions, or alterations in beneficial ownership.
Gaining a competitive advantage with pKYC
By leveraging pKYC, banks, and other regulated financial institutions can take advantage of a range of benefits. These are crucial in the modern digital era to gain a competitive edge. Through continuous monitoring, pKYC enables financial institutions to identify and address potential risks promptly. This real-time approach helps mitigate risks associated with financial crimes. Moreover, it ensures compliance with the latest regulatory standards.
pKYC will lead to operational efficiency and cost reduction. By automating many of the manual processes involved in KYC, pKYC significantly reduces the time and resources needed for compliance. This allows financial institutions to focus their efforts on high-risk cases, rather than conducting blanket reviews for all customers, resulting in substantial cost savings.
This process also enables many banks to improve their customer service and management. It also enhances the customer’s experience. With pKYC, customers are not subjected to frequent, intrusive reviews if their profiles remain stable. This results in a smoother and more positive customer experience, potentially increasing overall customer satisfaction and loyalty. Additionally, automated systems minimise human error and ensure consistency in applying KYC policies. This enhances overall regulatory compliance and reduces the risk of non-compliance penalties.
Perpetual KYC implementation: Challenges and considerations
Implementing a pKYC operating model is not straightforward. It requires the right blend of infrastructure and operating process. Every firm’s pKYC journey and ecosystem will be unique and cut across people, processes and technologies.
Data is central to the success of pKYC as reviews based on event changes (aka event driven triggers) will not be effective if client information is outdated, missing or incorrect. Without consistent access to relevant and accurate client information, pKYC is impossible. Corporate Digital Identity (CDI) is fast emerging as a foundation for ensuring valid customer information is collected for successful pKYC operations.
Being able to leverage this data requires an ecosystem of technology, which may be developed in house, utilising third-party RegTech providers, or a combination of both. This technology should drive how data is stored, structured and accessed so that pKYC triggers can be comprehensively managed. Customer lifecycle management systems (CLMs) are particularly relevant to pKYC as they connect all components along the workflow processes.
Importantly, overarching executive sponsorship is needed to ensure a successful outcome in transformation initiatives. Recognising the structural and cross departmental challenge, influential sponsors will align the multiple stakeholders involved in driving this change and will champion a firm’s pKYC strategy and approach to regulators and other key stakeholders.
Ultimately, pKYC must be future-proof and scalable, ready to adapt in line with business strategy and regulation to keep firms competitive.
The future of pKYC
The adoption of pKYC is growing, driven by regulatory pressures and the increasing complexity of financial crimes. Financial institutions are recognising the benefits of a proactive, real-time approach to compliance and risk management. The move towards pKYC is seen as a necessary evolution to stay ahead in a highly regulated and competitive financial environment.
As the technological landscape continues to evolve, integrating advanced technologies such as blockchain and further developments in AI and ML will likely enhance pKYC systems’ capabilities. Ensuring higher levels of compliance and risk mitigation, these technologies are able to provide more robust and secure mechanisms for customer verification and monitoring.
Blockchain technology can be utilised to further improve the initial customer authentication and validation process. As a result, we can expect improvements and advancements in the quality of customer data collected during initial customer onboarding processes. Financial institutions can then leverage AI-enhanced tools that can identify and collect the necessary attributes during document processing stages. This ensures that pKYC will utilise relevant, accurate, and up-to-date data. Perpetual KYC represents a significant departure from traditional, periodic KYC, as it offers a wide range of benefits in real-time risk management, operational efficiency, and customer experience. Although the implementation of pKYC poses certain challenges, it also provides numerous advantages, making it an increasingly attractive solution for financial institutions aiming to enhance their compliance and risk management frameworks and maintain a competitive edge in a rapidly evolving regulator landscape.
Tetyana Golovata, Head of Regulatory Compliance at IFX Payments, on builidng compliance into business culture
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Regulation plays a critical role in shaping the fintech landscape. From Consumer Duty and FCA annual risk reporting to APP fraud, the tectonic plates of the sector are shifting. Whether you consider these regulations as benefiting or hindering the industry, businesses are struggling to keep up.
According to research by fraud prevention fintech Alloy, 93% of respondents said they found it challenging to meet compliance requirements. In a new study by Davies a third of financial leaders (36%) said their firms had been penalised for compliance breaches in the year to June. The FCA brings in its operational resilience rules in March 2025. So, it is more important than ever to ensure your company makes the grade on compliance.
Learning lessons from history
Traditionally, FX has struggled with the challenge of reporting in an ever-developing sector. As regulatory raise the bar on compliance, responsible providers must help the industry navigate the changes and upcoming deadlines.
Fintechs and payments companies are entering uncharted waters. They face pressure to beat rivals by offering more innovative products. Regulators have struggled to keep up in the past. Gaps in legislation have allowed some opportunists to slip between the net, as seen in the collapse of FTX. Because of this, implementation and standardisation of the rules is necessary. This ensures innovation remains seen as a force for good, and to help identify and stamp out illegal activity.
Culture vs Business
Culture has become a prominent factor in regulatory news. We have seen cases of large fines and public censure relating to cultural issues. FCA COO Emily Shepperd observed in a speech to the finance industry, “Culture is what you do when no one is looking”.
Top-level commitment is crucial when it comes to organisational culture. Conduct and culture are closely intertwined. Culture is not merely a tick-box exercise. It is not defined by perks like snack bars or Friday pizzas. Rather, it should be demonstrated in every aspect of the organisation, including processes, people, counterparties, and third parties.
In recent years, regulatory focus has shifted from ethics to culture. Recognising its crucial role in building market reputation and ensuring compliance with rules and regulations. Furthermore, boosting client confidence, and retaining employees. The evolving regulatory landscape has significantly impacted e-money and payments firms. Moreover, regulations are strengthening each year. Each regulation carries elements of culture, as seen in:
Consumer duty: How do we treat our customers?
Operational resilience: How can we recover and prevent disruptions to our customers?
APP fraud: How do we protect our customers?
Culture Drivers
Key drivers of culture include implementing policies on remuneration, conflicts of interest, and whistleblowing. However, for it to become embedded it must touch employees at every level.
This is showcased by senior stakeholders and heads of departments facilitating close relationships with colleagues across a company’s Sales, Operations, Tech and Product teams to build a collaborative environment.
Finance firms must recognise the trust bestowed on them by their customers and ensure the protection of their investments and data is paramount. Consumer Duty may have been a wake-up call for some companies, but progressive regulation must always be embraced and their requirements seen as a baseline rather than a hurdle.
Similarly, the strengthening of operational resilience rules and the upcoming APP fraud regulation in October are to be welcomed, increasing transparency for customers.
Compliance vs Business
Following regulatory laws is often viewed as a financial and resource drain, but without proper compliance, companies are vulnerable to situations where vast amounts of money can be lost quickly.
A case in point is the proposed reimbursal requirement for APP fraud, which will mean payment firms could face having to pay compensation of up to £415,000 per case.
Complying not only safeguards the client and their money, but also the business itself. About nine in ten (88%) financial services firms have reported an increased compliance cost over the past five years, according to research from SteelEye. Embedding compliance earlier in business cultures can be beneficial in the long run, cutting the time and money needed to adapt to new regulations and preventing the stress of having to make wholesale changes rapidly.
Building a cross-business compliance culture
Compliance is a key principle at IFX Payments, and we strive to be a champion in this area. In response to these challenges, the business restructured, establishing dedicated risk and regulatory departments, along with an internal audit function.
Regulatory compliance aims to support innovation by developing and using new tools, standards, and approaches to foster innovation and ensure product safety, efficacy, and quality. It has helped the firm to navigate the regulatory landscape while driving growth and maintaining high standards.
This organisational shift allowed each business line to own its own risk, with department partaking in tailored workshops designed to identify existing, new, and potential risk exposure. Shared responsibility for compliance is the only way to create a culture which values it. We see this as a great way for organisations to drive innovation while sticking to the rules.
Pat Bermingham, CEO of B2B digital payment specialist Adflex, asks what impact will Artificial Intelligence really have on B2B payments?
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Visit any social media newsfeed and countless posts will tell you AI means “nothing will ever be the same again”. Or even that “you’re doing AI wrong”. The volume of hyperbolic opinions being pushed makes it almost impossible for businesses to decipher between hype and reality.
This is an issue the European Union’s ‘AI Act’ (the Act), which came into force on 1 August 2024, aims to address. The Act is the world’s first regulation on artificial intelligence. It sets out how to govern the deployment and use of AI systems. The Act recognises the transformative potential AI can have for financial services, while also acknowledging its limitations and risks.
Within the debate about AI in financial services, B2B payments are an area where AI has huge potential to accelerate digital innovation. Let’s go beyond the hype to provide a true perspective on what AI really means for B2B payments specifically.
Understanding what AI is, and what it isn’t
AI is a system or systems that can perform tasks that normally require human intelligence. It incorporates machine learning (ML). ML has been used by developers for years to give computers the ability to learn without being explicitly programmed. In other words, the system can look at data and analyse it to refine functions and outcomes.
A newer part of this is ‘deep learning’, which leverages multi-layered neural networks. This simulates the complex decision-making power of our brains. The deep learning benefits outlined later in this article are based on Large Language Models (LLMs). LLMs are pre-trained on representative data (such as payment/transaction/tender data). Deep learning AI does not just look at and learn patterns of behaviour from the data. It is becoming capable of making informed decisions based on this data.
Before we explore what this means for B2B payments, let’s make one caveat clear: human supervision is still needed to ensure the smooth running of operations. AI is a supporting tool, not a single answer to every question. The technology is still maturing. You cannot hand over the keys to your B2B payments process quite yet. Manual processes will retain their place in B2B payments. AI tools will help you learn, adapt and improve more quickly and at scale.
The AI Act – what you need to know
The Act attempts to categorise different AI systems based on potential impact and risk. The two key risk categories include:
Unacceptable risk – AI systems deemed a threat to people, which will be banned. This includes systems involved in cognitive behavioural manipulation, social scoring, and real-time biometric identification.
High risk – AI systems that negatively affect safety or fundamental rights. High-risk AI systems will undergo rigorous assessment and must adhere to stringent regulatory standards before being put on the market. These high risk systems will be divided into two further categories:
AI systems that are used in products falling under the EU’s product safety legislation, including toys, aviation, cars, medical devices and lifts.
AI systems falling into specific areas that will have to be registered in an EU database.
The most widely used form of AI currently, ‘generative AI’ (think ChatGPT, Copilot and Gemini), won’t be classified as high-risk. However, it will have to comply with transparency requirements and EU copyright law.
High-impact general-purpose AI models that might pose systemic risk, such as GPT-4o, will have to undergo thorough evaluations. Any serious incidents would have to be reported to the European Commission.
The Act aims to become fully applicable by May 2026. Following consultations, amendments and the creation of ‘oversight agencies’ in each EU member state. Though, as early as November 2024, the EU will start banning ‘unacceptable risk’ AI systems. And by February 2025 the ‘codes of practice’ will be applied.
So, with the Act in mind, how can AI be used in a risk-free manner to optimise B2B payments?
Today’s B2B payment platforms are not one-size-fits-all solutions; instead, they provide a toolkit for businesses to customise their payment interactions.
AI-based LLMs and ML can be used by payment providers to rapidly understand and interpret the extensive data they have access to (such as invoices or receipts). By doing this, we gain insights into trends, buyer behaviour, risk analysis and anomaly detection. Without AI, this is a manual, time consuming task.
One tangible benefit of this data analysis for businesses comes from combining payment data with knowledge of a wide range of vendors’ skills, products and/or services. AI could then, for example, identify when an existing supplier is able to supply something currently being sourced elsewhere. By using one supplier for both products/services, the business saves through economies of scale.
Another benefit of data analysis comes from payment technology experts. Ours have been training one service to extract data from a purchase order or invoice, to flow level 3 data, which is tax evident in some territories. This automatically provides the buyer with more details of the transaction, including relevant tax information, invoice number, cost centre, and a breakdown of the products or service supplied. This makes it easy and straightforward to manage tax reporting and remittance, purchase control and reconciliation.
AI-driven data analysis isn’t just a time and money-saver, however. It also adds new value by enabling providers to use the data to create hyper-personalised payment experiences for each buyer or supplier. For example, AI and ML tools could look out for buying and selling opportunities, and perform a ‘matchmaking supplier enablement service’ that recommends the best payment methods – and the best rates – for different accounts or transactions. The more personalised a payment experience is, the happier the buyer and more likely they are to (re)purchase.
Efficient data flows mean stronger cash flows
Another practical application of AI is to help optimise cash management for buyers. This is done by using the data to determine who is strategically important and when to pay them. It could even recommend grouping certain invoices together for the same supplier, consolidating them into one payment per supplier, reducing interchange fees and driving down the cost of card acceptance.
AI can also perform predictive analysis for cash flow management, rapidly analysing historical payment data to predict cash flow trends, allowing businesses to anticipate and address potential challenges proactively. This is particularly valuable in the current economic climate where cashflow is utterly vital.
By extracting value-added, tax evident data from a purchase order or invoice, AI can rapidly analyse invoices and receipts to enable efficient, accurate automation of the VAT reclaims process. Imagine: the time comes for your finance team to reclaim VAT on recent invoices and receipts, but they don’t have to manually go through every receipt or invoices and categorise them into a reclaim pile or not reclaimable. It sounds like a dream but it will be the reality for business everywhere: AI does the heavy lifting and humans verify it, saving significant time and resources.
The third significant benefit of AI is automated invoice reconciliation. By identifying key information from an invoice and recognising regular payees, AI can streamline and automate the review process. This has the potential to significantly speed up transactions and enable more efficient payment orchestration.
Binding together all supporting paperwork, such as shipping, customs, routes, and JIT (just-in-time) requirements can also be done by AI, and it’s likely to be less prone to human error.
This provides an amazing opportunity to make B2B payments faster, reduce costs and increase efficiency. Businesses know this: 44% of mid-sized firms anticipate cost savings and enhanced cash flow as a direct result of implementing further automation within the next three years. According to American Express, 48% of mid-sized firms expect to see payment processes accelerate, with more reliable payments and a broader range of payment options emerging.
When. Not if.
There are significant opportunities to leverage AI in B2B payment processes, making it do the heavy lifting. It is, however, essential to view these opportunities with a balanced understanding of the limitations of AI.
While all the opportunities for AI in B2B payments outlined here are based on relatively low-risk AI systems, human oversight of these systems is still essential. However, with all the freed-up time and resource achieved through the implementation of AI, this issue can be avoided.
AI in B2B payments is not an if, but a when. The question is, when will you make the jump, hand in hand with technology, rather than fearing it or passing full control over to it.
In order to grow, it is essential for users to see the tangible benefits. For example, by enhancing efficiencies in account payable (AP), businesses can reallocate time and resource previously spent in AP to other areas. Early adopters are starting to test the water but only time will tell how much of an impact AI will make.
Most businesses will likely wait for the early adopters to fail, learn and progress. If something goes wrong in B2B payments, it can have a huge impact on individuals, businesses and economises. Only when the risk is clearly defined and manageable will AI truly become the gamechanger in B2B payments that all the hype claims.
“Adflexhas been at the heart of the B2B fintech revolution from the beginning. We are known for fostering innovation and helping companies harness the power of digital payments. Our technology and expertise bring together buyers and suppliers to make transactions fast, cost-effective and straightforward to manage. We take the pain out of the supply chain by delivering seamless and secure payment integration that adds value to both buyers and merchants.”
Mayank Sharma, Senior Product Marketing Manager, FinScan on managing the changing face of risk in financial services
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Today, companies are expected to have a holistic view of financial crime risk. They must consider the entire ecosystem of their counterparty relationships including suppliers, vendors, employees, and customers. Failure to do so can result in organisations breaching regulatory requirements, leading to fines and reputational damage. Assessing complex ownership structures, expanding overseas operations, and managing increasing amounts of data places strain on limited resources and capabilities.
Many businesses grapple with multiple systems housing different data and information. Without an integrated view or calculation of risk or the ability to dynamically obtain data to update risk ratings, compliance and onboarding teams are operating ineffectively. What obstacles do businesses face in reaching a comprehensive view of their risk exposure? And how can technological advances help companies take a more proactive approach to financial crime risk management?
The changing face of risk
The last decade has seen a notable shift in how companies are expected to understand and manage risk. Traditionally, the focus was on performing due diligence on new customers during onboarding and at discrete intervals over the customer lifecycle. Today, companies are expected to adopt a more comprehensive perspective and take into account their entire network of counterparty relationships. This includes assessing extended relationships, encompassing customers, beneficial owners, customer’s customers, suppliers, employees, and other stakeholders. This includes distributors and other counterparties.
It also entails understanding the nature of the geographies reached, the products and services used, and from whom they send and receive funds. For example, a community bank might have domestic customers with clear backgrounds but are exposed to indirect sanctions and money laundering risks through the customers’ supplier or vendor relationships based on sanctioned geographies or beneficial owners.
Organisations must monitor sanctions and suspicious activity risk for direct and indirect client relationships. Failure to do so can result in large financial penalties. As seen in the high-profile examples of companies receiving fines for having customer or vendor relationships in sanctioned jurisdictions, and from overall weaknesses in their AML controls. However, the larger issue, from a risk perspective, especially in the context of geo-political changes and complex ownership structures, is even beyond AML and sanctions that bleeds over to reputational risk, i.e., who you are doing business with.
Companies need to develop their financial crimes analysis and risk assessment processes across all risk monitoring systems. They need to make sure they identify all the parties down to the level necessary to determine the compliance risk of doing business. Such an analysis “future proofs” the organisation from undue reputational damage. It also keeps them proactively compliant with sanctions and AML failures.
Process and technology challenges
From a technological standpoint, AML and sanctions risk from customers, vendors, employees, and supply chains are typically distributed across multiple processes. These include onboarding, due diligence, screening, and monitoring, which use different systems that are not integrated. This makes it difficult to get a holistic overview of the risk exposure.
Furthermore, many models are not sufficiently robust and fail to consider the relevant elements at the appropriate times. Most due diligence is performed at the point of onboarding. This presents a snapshot in time but does not accommodate dynamic updates such as alerts to situational changes, potentially impacting a customer’s risk score. There may be periodic Know Your Customer (KYC) updates or event-driven triggers, which influence the risk rating. However, these are typically retrospective, driven by customer interactions, and prioritised by the current rating. As such, low-risk customers who start displaying high-risk activity, which is not part of the trigger events, would not even be subject to an updated review based on that activity. Rather, they would only be reviewed at the next scheduled update for that batch of low-risk customers. This could be some years after they were first onboarded or last reviewed.
Consequently, risk ratings may misclassify customers, pushing up operating costs. A study from McKinsey & Co found that banks changing approaches to reviewing low-risk customers based on trigger events, rather than a schedule, reduced KYC operating costs by 20 percent.
Adopting an integrated and dynamic approach
As the understanding and expectations surrounding risk change, so does the technology supporting risk scoring. Integrated risk scoring dynamically calculates a score from all critical source systems used by compliance and business functions. These include external sources such as news outlets and social media. This provides a robust approach more valuable for financial institutions as it uncovers scenarios not driven by interactions with the customer. This also has an impact, perhaps a more significant one, on a customer risk rating. Adverse media or changes in beneficial ownership, for example, will not necessarily be items brought to the financial institution by the customer. But these can impact the nature of the ongoing customer relationship.
Artificial intelligence (AI) and machine learning (ML) are also likely to play an increasingly important role. As regulators become more open to innovative approaches and technologies, AI and ML will be used to enable real-time checks, such as integrated adverse media or identification checks. However, caution must be exercised regarding explainability, and the decision-making process must be understandable to human operators. Organisations must maintain clear documentation of how AI models work and the criteria they use for risk scoring. They must also monitor for and mitigate any biases in the AI models. They must enusre deployment doesn’t lead to unfair treatment of any ethnic or racial groups. Ultimately, new technology should realise a net reduction in residual risk.
Facilitating a proactive approach to risk
Companies are faced with an increasingly complex risk landscape. Today, they are expected to have a detailed understanding of their business relationships and assess the risks these relationships present. With geopolitical turmoil increasing, a wave of new sanctions, and the resulting implications for AML checks, companies need to ensure they have robust profiling processes and systems. To enable this, businesses should look for integrated solutions that bring together the various indicators and allow for dynamic updates of risk profiles.
FinScan offers advanced Anti-Money Laundering (AML) compliance technology and consulting solutions. Built on decades of experience in data management and proprietary matching technologies, FinScan provides a data-first, risk-based approach to ensure unparalleled accuracy and efficiency in identifying and reducing risk, accelerating AML compliance workflows, and optimising team productivity.
Michael Donnelly, Head of Client Success at BlueFlame AI, on how to prepare your firm to attract and retain the next generation of AI talent
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In the fast-paced world of financial services, a new generation is stepping in with high expectations for generative artificial intelligence (AI) in the workplace. Recently, BlueFlame AI conducted a specialised training session for one of our private equity clients, aimed at their newly hired summer intern class. The experience was eye-opening for us. Furthermore, it also provided a great lesson in the growing importance of AI in the industry and the expectations today’s young professionals have as they enter the workforce
AI & LLMs
The comprehensive training session covered vital areas such as AI and Large Language Models (LLMs), a review of the most popular use cases the industry has adopted, and hands-on practical training in prompt engineering. Moreover, our goal was to show this next generation the skills they’ll need to leverage these tools effectively. New roles could revolutionise alternative investment management processes like due diligence, market analysis, and portfolio management.
We also used this as an opportunity to survey the group about their experience of and expectations for AI use in the workplace – and it yielded some striking insights. A significant 50% of the interns reported using ChatGPT daily, with 83% utilising it at least weekly. Furthermore, these numbers suggest young professionals expect these tools to be available to them in their professional lives. In the same way they are available in their personal lives and set to become as commonplace as traditional software in the workplace. The interns’ expectations regarding AI’s impact on their work efficiency are even more telling. An overwhelming 94% believe these tools will enhance their productivity, indicating strong faith in the technology’s potential to streamline tasks and boost performance.
These high expectations have key implications for employers. A significant 89% of interns expect their employers to provide enterprise-grade AI/LLM access. This statistic is a wake-up call for companies that have yet to invest in AI technologies, highlighting the need to stay competitive not just in terms of products and services but also in workplace technology provision.
Talent Acquisition & Retention
Perhaps most important is AI’s potential impact on talent acquisition and retention. One-third (33%) of interns surveyed indicated they would reconsider their choice of employer if they didn’t offer access to enterprise-grade AI/LLM tools. A response that could throw a serious wrench into any Financial Services firm’s hiring plans.
The message is clear for businesses looking to stay ahead of the curve when it comes to supporting their employees. Investing in AI technologies and training is no longer optional. Firms must be ready to meet the expectations of the incoming workforce. They need to provide them with the best technology to maintain a competitive edge in an increasingly AI-driven business landscape. Companies that embrace AI and provide their employees with the tools and training to harness its power will likely see significant productivity, innovation, and talent retention advantages.
AI Revolution
Private and public investment firms stand to benefit greatly from this AI revolution. As this new generation brings its enthusiasm and expectations for technology tools into the workplace, firms that are prepared to meet these expectations will be better positioned to tap into fresh perspectives, drive innovation and reap significant efficiency and productivity gains. And if firms can take a proactive approach to training and commit to developing a forward-thinking, AI-enabled workforce, they will be able to enhance their teams’ capabilities and shape the future of work in the financial sector.
Generative AI and the workplace expectations it has created mark a new paradigm in the market. The next generation of professionals is not just ready for AI – they’re demanding it. Firms that recognize and act on this trend will be well-positioned to lead the pack when it comes to innovation, efficiency and talent acquisition.
Founded in 2023 BlueFlame AI is the only AI-native, purpose built, LLM-agnostic solution for Alternative Investment Managers.
Neobanks are transforming the financial sector as digital-only institutions that offer a comprehensive range of banking services through mobile apps…
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Neobanks are transforming the financial sector as digital-only institutions that offer a comprehensive range of banking services through mobile apps and online platforms. These services encompass current and savings accounts, payments, loans, and investments — all managed seamlessly through digital channels.
With cutting-edge financial technology, neobanks provide faster, more affordable, and more convenient solutions for both customers and businesses. The surge in mobile phone use, cloud computing, and artificial intelligence has fuelled rapid growth.
The neobanking market is even expanding rapidly, with a projected market volume of $10.44 trillion by 2028, according to Statista. This represents a 13.15 percent growth rate from 2024 to 2028.
Innovative Business Models
To offer a broader range of services and better customer experiences, neobanks leverage application programming interfaces (APIs). This model involves integrating various financial applications and services using APIs. It will allow them to manage Know Your Customer (KYC) verifications, do instant refunds, and arrange collections efficiently.
Then, the significant source for neobanks is interchange fees. This model involves charging transaction fees for every transaction and earning a portion of the fees from payment networks like Visa.
Furthermore, credit card business models use credit as a foundation, generating revenue from transaction fees and interest on carried balances to drive growth and profitability. This model starts with credit card services and later offers a bank account.
Other models allow neobanks to offer high-yield savings accounts and certificates of deposits (CDs). Revenue will come from earning interest on the assets and charging fees for services related to these accounts, such as maintenance fees.
Technology Integration
Neobanks have redefined the banking landscape through a digital-first approach, prioritising customer experience, and leveraging technology to deliver innovative financial services. This combination sets them apart from traditional banks and allows them to offer unique and competitive financial services.
A core characteristic of neobanks is their digital-only operations. By eliminating physical branches, they significantly reduce overhead costs. These savings translate into lower fees for customers and increased competitiveness.
Furthermore, neobanks harness the power of cloud computing, data analytics, and artificial intelligence to deliver personalised financial solutions. These technologies enable them to gain valuable insights into customer behaviour, allowing for tailored product offerings and improved operational efficiency.
Neobanks have also pioneered innovative revenue streams. Unlike traditional banks heavily reliant on interest income, they generate revenue through various channels, including interchange fees and partnerships.
Finally, many neobanks embrace open banking principles. This collaborative approach allows third-party developers to create new financial products and services that complement the neobank’s offerings. By collaborating with third-party developers, neobanks create additional value and broaden their reach.
The Global Neobanking Innovators
Advapay expected the total number of neobanks users to increase to 3.6 billion worldwide by 2024. Moreover, they spread relatively evenly across the main regions. For example, neobanks in North America, LATAM, APAC, and the UK each now accumulate a total price tag of 50 billion dollars or more per region.
Revolut, a UK-based neobank, stands as a leading example of digital banking innovation. Expanding its services to over 30 countries, Revolut offers multi-currency accounts, currency exchange, stock trading, and insurance.
The neobank employs various innovative business models including API integration, transaction fees, credit card services, high-yield savings, and certificates of deposit. Revolut’s software as a service (SaaS) approach enhances flexibility, scalability, and rapid product development.
Beyond Revolut, Nubank from Latin America showcases innovation through robust security features, diverse financial products, and blockchain-based loyalty programs. Meanwhile, WeBank in China excels in digital lending, mobile payments, and alternative credit scoring.
Future Prospects
The neobanking industry is rapidly evolving, with 278 neobanks operating globally as of March 2023. This intense competition forces neobanks to continuously innovate to differentiate themselves.
As a result, traditional banks face increased pressure to adapt to these new market dynamics. Neobanks have the potential to drive financial inclusion, foster creativity, prioritise customer needs, and expand globally.
Looking ahead, neobanks can expect a surge in competitors. This will force incumbent banks to either adapt their strategies to defend their market share or become digital attackers themselves to stay competitive in the evolving market.
With competition growing and attention spans shrinking, innovative product launches aren’t something neobanks should do once. Instead, creating agile solutions that are in tune with current consumer needs must be an essential part of their growth strategy.
Technological innovation is disrupting traditional business models, and customers now expect faster, more convenient service. Personalisation is crucial, with customers…
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Technological innovation is disrupting traditional business models, and customers now expect faster, more convenient service. Personalisation is crucial, with customers wanting insurance tailored to their specific needs. Enter InsurTech.
Digital transformation is a must for insurance companies. Early adopters reap benefits, while others risk falling behind. We explore five key benefits of digital transformation in insurance, highlighting strong reasons for companies to embrace the InsurTech revolution.
Digital transformation helps businesses improve workflows and empowers employees to work more efficiently and effectively. Adopting a digital culture can significantly cut down on time spent on tasks, eliminate manual processes, and introduce new features. Even basic automation of important steps can lead to substantial savings on overhead costs.
Research by the Harvard Business Review shows that over 89 percent of large companies worldwide are already implementing digital transformation initiatives, with projections of a 31 percent increase in revenue and a 25 percent reduction in costs.
An example of how digital transformation fosters innovation is the collaboration between Fingent and the California law firm Sapra & Navarra. Together, they developed Ambit, an artificial intelligence (AI) tool that streamlines workers’ compensation claims management. By using AI, Ambit speeds up the claims process and reduces associated costs.
Benefit 2: Enhanced Customer Experience
Improving customer experience and engagement is a key benefit of digital transformation. Data analysis helps insurers understand their customers better. This allows them to develop personalised products and improve customer service.
An example is XYZ Insurance. The company created a digital sales app for agents, launched an online e-commerce platform, and built a self-service app for customers on smartphones. This digital ecosystem streamlines the entire insurance process, from getting quotes and completing applications to uploading documents and making payments.
Benefit 3: Data-Driven Insights
For underwriting, digital transformation means unlocking new ways to analyse data and make decisions. AI is a key player in this change. AI can analyse massive amounts of data using algorithms and predictive analytics. This helps uncover patterns and connections that human underwriters might miss. These insights benefit both insurance companies and policyholders.
AI helps assess risk more accurately. By pinpointing potential problems with greater precision, AI allows underwriters to set appropriate premiums. This reduces the risk of setting premiums too low or too high, leading to a healthier insurance portfolio for the company.
Benefit 4: Increased Agility
Predictive analytics is a powerful tool at the core of digital transformation. It uses complex algorithms and machine learning to analyse massive datasets. This helps insurers uncover valuable patterns and trends to make better decisions in various areas of their business.
One key benefit is risk mitigation. Analysing historical data and current trends lets insurers better assess risk profiles and price policies more accurately. Additionally, predictive modelling helps them simulate future scenarios, such as a major weather event’s impact on their business. This foresight enables proactive adjustments and risk-reduction strategies.
Benefit 5: Improved Compliance
Regulatory technology (RegTech) helps insurance companies navigate compliance challenges. It provides smarter ways to analyse information. This allows them to see potential risks across a much larger dataset than ever before.
Insurers used to check a small sample of policies to find problems with sales or pricing. This took a lot of resources and only covered a tiny fraction of customers. RegTech, combined with advanced data analysis, can streamline this process. By looking at all their policies, insurers can identify potential issues more efficiently.
Conclusion
The traditional insurance industry faces pressure to keep pace with a rapidly changing digital world. Rising customer demands and innovative competitors threaten their position, but digital transformation offers a powerful set of tools to overcome these challenges and unlock new growth.
Digital technologies can streamline internal processes, making them more efficient and cost-effective. This translates to a smoother experience for customers with faster processing times and simpler interactions. Additionally, digital tools let insurers analyse data more effectively and improve risk management and regulatory compliance.
By investing in innovation, insurers can develop new products and services that meet evolving customer needs. This proactive approach strengthens their market position and lays the foundation for long-term, sustainable growth.
Nada Ali Redha, Founder of PLIM Finance, on flexibility, consolidation, and the evolution of digital payments
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Embedded finance, the integration of financial services into non-financial platforms, is no longer a niche trend. It has become a defining characteristic of modern commerce. Consumers are increasingly drawn to the convenience and flexibility it offers, leading businesses across industries to adopt embedded finance solutions. The rise of these platforms, combined with shifting consumer expectations, presents both opportunities and challenges for traditional banks and fintech players.
Customer-centricity with Embedded Finance
At the heart of this transformation is a desire for simplicity. Consumers are opting for solutions that allow them to bypass the inconvenient processes associated with traditional banking. They are avoiding excessive paperwork, account opening delays, or hidden charges. Instead, they are drawn to platforms that offer seamless integration of services. Enabling them to make purchases, manage their finances, and access credit without ever leaving the ecosystem of their preferred brands.
E-commerce giants like Amazon have been quick to recognise this trend, embedding financial services directly into their platforms. This allows them to offer a one-stop solution that caters to all their customers’ needs, from browsing products to making payments or accessing credit options. The appeal is clear: customers stay within the same digital environment, enjoying a frictionless experience that saves them time and effort. This development, however, raises the stakes for standalone payment providers like PayPal and Klarna, as they are increasingly excluded from these in-house ecosystems.
Shifting financial services
For legacy banking providers, this shift presents a major challenge. Traditionally, these institutions have relied on their extensive networks, trusted brands, and regulatory backing to maintain a dominant position in the financial landscape. But as businesses integrate financial services directly into their offerings, banks are no longer the first point of contact for many consumers. A growing number of businesses are bypassing traditional banks altogether, embedding payment and lending options at the point of purchase or within their own apps. This trend highlights a fundamental shift in how consumers interact with financial services, often without even realising it.
In response, payment providers and fintechs must find innovative ways to remain competitive. One potential strategy is for these companies to develop their own marketplaces. By creating an ecosystem of services that includes not only payments, providers can capture more customer loyalty and engagement. This would enable fintechs and payment solution companies to offer a holistic, embedded finance solution. Rather than relying on external platforms or partnerships.
PLIM Finance
A case study for this would be PLIM Finance’s marketplace, which offers a highly customised experience. PLIM connects consumers with their desired services in a way that prioritises personalisation and convenience. As a platform built with user-centric design at its core, it allows consumers to search for treatments based on location, type, and specific clinics, giving them the ability to make informed decisions effortlessly. This is achieved through a search engine that filters results to suit each individual’s exact needs. Enhancing the user experience by eliminating irrelevant options for a streamlined experience. PLIM’s marketplace also encourages partners to create detailed profiles, showcasing their services, reviews, and credentials, which enhances visibility and attracts new clients. By fostering a direct connection between consumers and clinics, PLIM’s marketplace stands out in the embedded finance space. Ensuring a seamless, personalised customer experience that is simple and easy-to-use.
Strategic partnerships
Another potential strategy is deeper collaboration with external partners. By integrating their services into a wide range of businesses, payment providers can continue to capture market share. Without needing to create their own consumer-facing platforms. Strategic partnerships can expand the reach of these payment solutions, allowing them to tap into user bases they might otherwise miss. For example, smaller or mid-sized businesses may benefit from embedding a well-established payment solution into their website or app rather than developing their own in-house system.
However, not every provider will be able to meet the demands of this rapidly changing landscape on their own. As the embedded finance space continues to mature, industry consolidation becomes a very real possibility. Larger players may acquire smaller fintech companies. Integrating their innovative solutions into existing platforms can offer a more comprehensive suite of services. This would mirror the broader trend in the tech sector, where big players often absorb disruptive startups to maintain their competitive edge. Consolidation offers both challenges and opportunities. While smaller companies risk losing their independence, they also gain access to the resources and customer base of their new parent companies.
Evolving financial landscape
This evolving landscape is also occurring at a time of significant economic uncertainty. Financial stress often pushes consumers to reevaluate their spending and financial habits, with many looking for greater control over their cash flows. This is where embedded finance stands out. The flexibility it offers allows consumers to manage their money more efficiently, whether through payment deferrals, buy-now-pay-later (BNPL) options, or quick access to credit. These features are particularly valuable when budgets are tight or income is uncertain.
Moreover, embedded finance solutions empower consumers by giving them more control over how they manage their transactions. For example, BNPL options give individuals the freedom to split payments over time, making larger purchases easier to manage without the immediate financial burden. This level of control resonates with modern consumers, who increasingly seek transparent, flexible financial solutions that can be tailored to their personal circumstances.
For businesses, this presents an opportunity to strengthen customer loyalty by offering embedded finance services that align with consumer needs. By removing barriers to purchasing, businesses can enhance the customer experience, which, in turn, can drive increased sales and long-term engagement. As a result, companies that adopt embedded finance solutions can gain a competitive edge, particularly in sectors like e-commerce, where convenience is king.
Conclusion
In conclusion, embedded finance represents a fundamental shift in how consumers interact with financial services. As more businesses adopt these solutions, traditional banking institutions and standalone payment providers will need to adapt or risk being left behind. Whether through developing their own marketplaces, forging deeper collaborations, or pursuing mergers and acquisitions, the financial services landscape is poised for continued transformation. Embedded finance, with its focus on flexibility and convenience, is likely to become an integral part of the future of commerce—benefiting both consumers and businesses alike.
