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Indhold leveret af FF News | Fintech Finance. Alt podcastindhold inklusive episoder, grafik og podcastbeskrivelser uploades og leveres direkte af FF News | Fintech Finance eller deres podcastplatformspartner. Hvis du mener, at nogen bruger dit ophavsretligt beskyttede værk uden din tilladelse, kan du følge processen beskrevet her https://da.player.fm/legal.
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Artificial intelligence is evolving at an unprecedented pace—what does that mean for the future of technology, venture capital, business, and even our understanding of ourselves? Award-winning journalist and writer Anil Ananthaswamy joins us for our latest episode to discuss his latest book Why Machines Learn: The Elegant Math Behind Modern AI . Anil helps us explore the journey and many breakthroughs that have propelled machine learning from simple perceptrons to the sophisticated algorithms shaping today’s AI revolution, powering GPT and other models. The discussion aims to demystify some of the underlying mathematical concepts that power modern machine learning, to help everyone grasp this technology impacting our lives–even if your last math class was in high school. Anil walks us through the power of scaling laws, the shift from training to inference optimization, and the debate among AI’s pioneers about the road to AGI—should we be concerned, or are we still missing key pieces of the puzzle? The conversation also delves into AI’s philosophical implications—could understanding how machines learn help us better understand ourselves? And what challenges remain before AI systems can truly operate with agency? If you enjoy this episode, please subscribe and leave us a review on your favorite podcast platform. Sign up for our newsletter at techsurgepodcast.com for exclusive insights and updates on upcoming TechSurge Live Summits. Links: Read Why Machines Learn, Anil’s latest book on the math behind AI https://www.amazon.com/Why-Machines-Learn-Elegant-Behind/dp/0593185749 Learn more about Anil Ananthaswamy’s work and writing https://anilananthaswamy.com/ Watch Anil Ananthaswamy’s TED Talk on AI and intelligence https://www.ted.com/speakers/anil_ananthaswamy Discover the MIT Knight Science Journalism Fellowship that shaped Anil’s AI research https://ksj.mit.edu/ Understand the Perceptron, the foundation of neural networks https://en.wikipedia.org/wiki/Perceptron Read about the Perceptron Convergence Theorem and its significance https://www.nature.com/articles/323533a0…
Indhold leveret af FF News | Fintech Finance. Alt podcastindhold inklusive episoder, grafik og podcastbeskrivelser uploades og leveres direkte af FF News | Fintech Finance eller deres podcastplatformspartner. Hvis du mener, at nogen bruger dit ophavsretligt beskyttede værk uden din tilladelse, kan du følge processen beskrevet her https://da.player.fm/legal.
FF News | Fintech Finance presents... well.. what is turning into a selection of creative, innovative spins on B2B podcasts! Kicking off with the ”FF Salon”, we interview some of the best and brightest in Fintech... while at the same time, cutting, styling & ”zhuzh”ing their hair; giving us much more intimate and deeper insight into what makes these executives and companies tick Coming up... - Carpool Conversations @ITC - The FF Salon @Sibos
Indhold leveret af FF News | Fintech Finance. Alt podcastindhold inklusive episoder, grafik og podcastbeskrivelser uploades og leveres direkte af FF News | Fintech Finance eller deres podcastplatformspartner. Hvis du mener, at nogen bruger dit ophavsretligt beskyttede værk uden din tilladelse, kan du følge processen beskrevet her https://da.player.fm/legal.
FF News | Fintech Finance presents... well.. what is turning into a selection of creative, innovative spins on B2B podcasts! Kicking off with the ”FF Salon”, we interview some of the best and brightest in Fintech... while at the same time, cutting, styling & ”zhuzh”ing their hair; giving us much more intimate and deeper insight into what makes these executives and companies tick Coming up... - Carpool Conversations @ITC - The FF Salon @Sibos
In this discussion, Ali Paterson is joined by Rory O'Neill, CMO of Checkout.com to explore the company's role in the evolving payments industry. Rory explains how Checkout.com helps major global merchants optimize digital payments, improve acceptance rates, and leverage data to enhance customer experience. They discuss how payment solutions are adapting to meet customer needs, the growth of AI in payments, and the challenges surrounding fraud prevention. Rory also highlights the significant shift in how companies approach payments as a core part of their operations. Checkout.com powers digital payments for global merchants like Alibaba and Vinted . Digital payment acceptance rates can dip as low as 80%, unlike the 99.9% success rate for in-person payments. Rory suggests the rise of Chief Payments Officers (CPOs) as businesses increasingly recognize the strategic importance of payments. Exploring the World of Merchant Payments Checkout.com is a leading digital payments provider that helps large merchants globally process payments. The company focuses on improving payment processing capabilities for high-profile brands like Vinted, Alibaba, and Delivery Hero. O'Neill discussed how the company aims to bridge the gap in digital payment acceptance, where rates can be as low as 80%, compared to in-person payments with success rates above 99.9%. He emphasized the importance of improving these acceptance rates to avoid billions in lost revenue. O'Neill shared his excitement about working in the payments market, a massive $2.3 trillion industry. He explained how Checkout.com’s focus on digital payments, combined with their technology, data infrastructure, and machine learning, positions the company to help clients improve their payment processes. O'Neill views the company's growth as both an exciting challenge and an opportunity to help merchants thrive in the digital space. Improving Payment Acceptance for Merchants A key area of focus for Checkout.com is optimizing small but impactful improvements in payment acceptance. Even minor increases in acceptance rates—measured in basis points—can result in millions or even billions of dollars in additional revenue for merchants. O'Neill believes payments are the unsung heroes of business, integral to revenue, profit, and cash flow, and advocates for a dedicated Chief Payments Officer (CPO) position within organizations to elevate its importance. Payment data offers deep insights into consumer spending behavior, and sharing this data across the payment ecosystem can help improve the payment experience and reduce fraud. O'Neill shared examples, like spikes in flower orders around Valentine’s Day, which show how merchants can leverage transaction data to improve their offerings and boost business. Understanding Consumer Payment Behavior When discussing trends in consumer payment behavior, O'Neill pointed to generational and regional differences. For example, in the US and UK, parents are buying mobile subscriptions for their children, while in China, Gen Z is purchasing subscriptions for their parents. He also highlighted that in regions like the UAE, consumers who sign up for subscription services tend to stay with those services long-term, providing valuable insights for merchants. Innovative Payment Solutions at Checkout.com O'Neill highlighted Checkout.com’s innovative tools, like their "Flow" product, which uses artificial intelligence to present consumers with the most suitable payment methods based on their location. This level of personalization can help improve conversion rates on merchant websites. O'Neill believes the future of payments lies in simplifying the process and integrating payments seamlessly into the consumer journey. He sees AI and machine learning playing a major role in making payments more invisible, smoother, and integrated into everyday life. The Future of Payments Looking ahead, O'Neill is optimistic about the future of payments, though he cautions that achieving full integration and automation may take time. He envisions a world where AI-driven agents will automate processes like booking taxis or ordering food, triggered by simple consumer actions. However, he acknowledges the challenge of coordinating these technologies to make this vision a reality. To further its mission, Checkout.com actively engages with the wider payments community, participating in major events like Money 2020 in Las Vegas and Amsterdam, and offering industry training through the Merchant Risk Council (MRC). The company also shares its latest insights on LinkedIn. Key Takeaways This conversation provides fintech professionals, bankers, and financial services enthusiasts with a deep dive into the crucial role of payments in the digital economy. It highlights ongoing challenges and innovations in the payment space and offers valuable perspectives on how businesses can leverage payment solutions to drive growth and customer satisfaction. For more great discussions on a variety of topics within finance and fintech, head to our website .…
Does NFC technology present opportunities for financial institutions beyond Apple Pay? Speaking to Jukka Yliuntinen from G+D Netcetera , G+D’s digital powerhouse division and Nick Maynard from Juniper Research , FF News’s Ali Paterson uncovers the evolving world of NFC technology and its impact on the digital wallet landscape in our latest FF Virtual Arena. Global adoption of NFC tech has been uneven but European Commission approval and Apple’s recent move to expand NFC access for third-party wallet apps, creates a unique opportunity. Is this shift poised to reshape the mobile wallet landscape, enabling banks to remain at the heart of consumers’ digital lives? Tune in to the video above find out more about: Has the “TFL effect” boosted Britain’s use of contactless payment methods? Global variations in NFC implementation. What could Apple’s NFC opening mean for financial institutions? What can they do to drive customer adoption? NFC Adoption Around The World In this video we have the ideal selection of guests. On the one hand there is Jukka Yliuntinen, who is Head of Digital Solutions at G+D ’s Digital Powerhouse, G+D Netcetera, and on the other, providing an insight into the landscape, we have Nick Maynard, VP of Fintech Market Research at Juniper Research. Together, they explore the current state and future of NFC (Near Field Communication) technology, particularly in the realm of digital payments and its impact on the wallet landscape. Kicking off the discussion, Maynard emphasizes the link between existing card infrastructure and NFC adoption. According to him NFC-based contactless payments have thrived in regions where card usage is already prevalent, like the US and the UK. Paterson prompts the possibility that there has been a “TFL effect” in London, where widespread use of contactless cards on public transport normalized the “tap-to-pay” behavior. Conversely, in markets where cash remains dominant, such as Germany and Austria, NFC adoption has been slower. Maynard also notes the rise of “tap-to-phone” technology, which lowers the barrier to entry for merchants by eliminating the need for dedicated terminals. He attributes the varying levels of NFC success to cost factors, with established card infrastructure making contactless payments relatively inexpensive to implement. The Apple NFC dominance Yliuntinen adds to this perspective by focusing on Apple’s recent decision to open its NFC interface for third-party wallet apps on iPhones, following European Commission approval. This move is potentially huge, allowing third parties, including banks, to develop NFC-based solutions comparable to Apple Pay, albeit with some limitations. Users in the European Economic Area with iOS 17.4 or later can now execute NFC transactions directly through compatible iOS apps, powered by Host Card Emulation (HCE). Further updates will allow developers around the world to leverage the Secure Element for NFC transactions from within their apps. Discussing the global variations in NFC capabilities, Yliuntinen highlights the difference between the European market, where use cases are accessible free of charge, and other regions, where fees are as yet undisclosed. We also get discussion about the competitive landscape, and whether Apple’s dominance in the NFC space is insurmountable. The strength of Apple’s ecosystem, brand loyalty, and user experience can’t be denied. Yliuntinen points out that Apple Pay users are generally satisfied and that the platform is deeply integrated into the iOS ecosystem. One study found that 90% of users report being satisfied with their Apple Pay experience. That is significant! But he also emphasises the potential for banks and other players to leverage their existing customer relationships and offer integrated services, such as loyalty programs and digital identity solutions, as a way to compete. He suggests that banks need to define their broader mobile strategy and position NFC-enabled payments within that context. Future of NFC’s Simply replicating the Apple Pay experience is not a viable strategy, Maynard agrees. He believes that banks and issuers should focus on offering value-added services, such as loyalty programs, rewards, cashback, and integrated identity services. A hybrid approach, where banks continue to support existing mobile payment services like Apple Pay while simultaneously developing their own solutions could be the road forward. This approach minimizes the risk of customer churn and allows banks to gradually transition users to their own platforms. There should also be a clear return to investment strategy, and banks need to consider NFC-enabled payments as part of a wider digital wallet strategy encompassing account-to-account payments, open banking, and personalized financial management. Looking ahead to 2025, Maynard outlines several key trends to watch. He highlights the integration of NFC capabilities into existing fintech solutions and digital wallets, citing examples like Curve and PayPal. He also anticipates increased use of “tap-to-phone” technology, particularly in smaller businesses. He suggests that incentivization through loyalty programs and partner ecosystems will be a key factor in driving adoption. Finally, he points to the potential disruption of adjacent markets, such as the “buy now, pay later” sector, as these companies explore integrating NFC into their offerings. He also mentions the potential for partnerships between card issuers and other fintech companies, such as crypto exchanges, to create integrated experiences. In short, we could see a lot of experimentation and innovation ahead. Yliuntinen makes the point that a Global SecurityTech like G+D can empower bank’s customers to tap and pay with confidence – enabled by them and backed by their trusted bank. For more great discussions on a variety of topics within finance and fintech, head to our website .…
Fraud prevention is evolving… But a human touch is still needed. That’s according to Tomas Navickas, co-founder of myTU , a digital banking provider with a unique focus on efficiency and sustainability. We spoke to him for our latest FF News Virtual Arena, in which he explains their focus on AI-driven automation for fraud detection, compliance, and customer support. Watch the video to find out more about… Their extreme efficiency, serving 50,000 clients with just $1,000/month in infrastructure costs. How AI could drive more effective fraud prevention. Their fresh approach to strategic team growth. A bank with a product first mindset In this Virtual Arena Tomas Navickas, co-founder of myTU , shares the story behind the creation of their digital banking platform, which has a product-first mindset. With a background in software development and payments spanning nearly two decades, Navickas was introduced to his co-founder, Roman, who had the vision for a digital bank when such institutions were still rare. The goal was to create a sustainable digital banking model, avoiding the cash-burning strategies of venture-backed fintechs, and to prioritize financial accessibility and education, particularly for younger users. As for the market need that inspired myTU, Navickas explained that while digital banks are improving accessibility compared to branch-based banking, trust remains a key hurdle. A lot of digital banks still rely on cash rewards to attract customers, but this doesn’t necessarily translate into long-term trust or engagement with higher-value financial products like loans or mortgages. myTU in response aims to offer an efficient and convenient banking solution for individuals, families, and travelers while maintaining financial sustainability and operational efficiency. AI’s role in digital banking The conversation then shifted to AI’s role in digital banking. It’s certainly a major topic of conversation , with many banks considering how it will play a role. Navickas highlighted that when myTU started, advanced AI models weren’t as readily available as they are today. Initially, automation was achieved through traditional coding methods, identifying and optimizing processes like transaction categorization and multilingual customer support. However, with the advent of models like OpenAI’s ChatGPT, myTU was able to significantly enhance fraud detection, transaction analysis, and customer communication. AI’s ability to make nuanced, context-aware assessments—rather than relying on rigid rule-based systems—has greatly improved fraud prevention by identifying suspicious patterns and anomalies in invoices, pricing, and transaction behavior. AI has enabled a real shift in the way they do things, allowing teams to focus on reviewing and refining AI-driven decisions rather than making every decision manually. However, he cautioned that AI without proper oversight can be overly aggressive in flagging transactions, requiring careful prompt engineering and fine-tuning to balance security with usability. Extremely efficient banking One of the most striking aspects of myTU’s model is its extreme efficiency. With a customer base of 50,000, the company maintains a cloud infrastructure cost of just $1,000 per month. Navickas attributed this to their commitment to lean architecture and in-house development, avoiding unnecessary reliance on third-party services. Unlike many startups that rapidly scale their teams and software dependencies, myTU follows a philosophy of building efficient, sustainable technology, inspired by earlier software development practices that prioritized minimal resource consumption. While myTU keeps some services in-house, such as customer support and software development, certain tasks like card printing are outsourced due to high security and regulatory requirements. However, their overall philosophy remains one of in-house efficiency, allowing them to operate with just 25 employees, including a development team of only five people. The discussion continues with thoughts on the impact of APIs, and myTU’s vision for scaling in Europe (and the challenges they might face there). Be sure to catch the full interview above, and watch more of our Virtual Arena interviews, right here on our website .…
Increasing numbers of banks are releasing payment cards made of recycled plastics, but how do you get customers involved even further in the sustainability journey? Our latest Virtual Arena explores that challenge. We find out how banks can recycle expired payment cards, and involve the end-customers for the benefit of the local community. Joining us are industry leaders Maya Reisinger from G+D and Joe Pitcher from Mastercard to talk about the environmental benefits and challenges of card recycling, and the need for collaboration to scale impactful solutions. Watch this insightful conversation to find out more about… How recycling could drastically reduce plastic waste from billions of cards annually. How Mastercard are working to address cost, security, and expertise gaps in recycling programs. The exciting technology G+D are working on to help banks showcase ESG commitments effectively. What is Card Recycling? Of course, first things first, it was important to know what card recycling entails. Maya Reisinger, who is Product Management Director of the Convego Beyond portfolio at G+D, introduced this as a method of repurposing expired payment cards instead of discarding them in landfills. She emphasized the flexibility in this approach, noting that some banks integrate recycling into their ESG commitments without publicizing it, while others use it as a tool for customer engagement. G+D are committed to helping banks be more sustainable with a number of focused offerings . Joe Pitcher is Vice President of the sustainable cards program at Mastercard & also happens to be Chair of the Greener Payments Partnership, so he made for an ideal contributor to this conversation. He elaborated, describing card recycling as a shift from traditional disposal methods to redirecting these materials into reusable streams. It’s important of course to ensure consumers and institutions are clued up on sustainable practices and mentioned Mastercard’s research into advanced recycling methods, such as chemical recycling, to further innovate in this space. Why is Card Recycling Worth Pursuing? Both speakers stressed the environmental and symbolic value of card recycling. Reisinger explained that recycling aligns with the industry’s broader sustainability goals, reducing waste and the carbon footprint associated with virgin plastic production. Pitcher quantified the potential impact, noting that recycling even a fraction of the billions of cards produced annually could eliminate significant amounts of plastic waste. Just think, there were 17.45 billion credit, debit, and prepaid cards in circulation worldwide as of the end of 2023. That’s a lot of plastic. He framed these efforts as small but crucial steps towards sustainable goals, signaling the banking industry’s commitment to sustainability. The Challenges Facing Banks in Card Recycling Implementing card recycling programs presents hurdles for banks, including concerns over data security, cost management, and finding the right recycling partners. Pitcher pointed out that many banks lack expertise in recycling, making it difficult to know where to start. Mastercard has addressed this by partnering with TerraCycle and creating scalable programs to simplify participation and reduce costs. Reisinger added that banks often struggle to allocate resources to such initiatives, as recycling is not their core focus. G+D helps by tailoring solutions to individual banks’ needs, from secure card collection to partnerships with local recyclers. A partnership they have with Santander are an example of this, where G+D manages card shredding and recycling whilst the bank can document compliance with ESG standards. A Shared Vision for Sustainability Both Reisinger and Pitcher highlighted the importance of collaboration in overcoming barriers and driving scale. Pitcher emphasized the role of economies of scale in making recycling programs more cost-effective, urging banks to pool efforts under unified programs. Reisinger reinforced the need for external expertise, noting that G+D leverages its global partnerships and experience to streamline processes for banks, making recycling programs feasible and impactful. The discussion also touched on the broader sustainability landscape. G+D is the first payment card provider to pledge the end of using virgin plastic in payment card products by 2030. In parallel, Pitcher noted Mastercard’s mandate to eliminate first-use PVC from card production by 2028, encouraging the use of recycled or bio-based materials. Reisinger also discussed G+D’s lifecycle analysis approach. This means ensuring sustainability considerations run all the way through to product design and material choices from the outset. Card recycling won’t solve all environmental challenges, but it turns a challenge into opportunity and it represents a significant step forward for the financial sector. It may even increase customer trust in their bank. To watch more great conversations like this one, on all areas of banking, payments and fintech, be sure to check out more of our Virtual Arena’s on ffnews.com .…
Our latest Virtual Arena explores the challenges and strategies in place to ensure secure and inclusive customer onboarding while also making the process user friendly. Financial institutions are cautiously increasing the data collected from customers—both actively and passively—which is used to enhance identity verification and transaction security. Chris Briggs, Chief Product Officer at Mitek Systems and Kathryn Robinson, Commercial Global Lead at NatWest discuss the focus that banks have to enhance security and KYC processes. Briggs and Robinson agree that banks need to reduce friction while ensuring robust security and that digital verification and fraud prevention tools such as biometrics, such as voice, fingerprint or facial recognition, offer quick and efficient processes but these technologies aren’t always available to those without digital resources. Fraudsters have been exploiting gaps between different banks’ security measures, and moving their tactics to areas of lower resistance, however the inclusion of AI in fraud facilitates both the creation of fraud and its detection through advanced algorithms. Fraud techniques like face swaps and social engineering are countered by AI-driven checks and secondary verification processes. Biometrics, such as fingerprints, voice facial recognition aim to simplify customer interactions but are not foolproof and require measures like liveness checks and layered fraud prevention strategies. Deepfakes are a more sophisticated type of fraud that banks are seeing emerge at a very rapid pace and AI chatbots that interact with fraudsters delay their effort and are considered as potential future strategies for direct fraud prevention. Mitek’s solution focuses on minimising false positives and ensuring fraud strategies do not hinder genuine customers, emphasizing that banks must offer inclusive, flexible solutions that cater to diverse customer needs, balancing efficiency and security. The availability of this advanced technology to anyone amplifies the reach and impact of fraud campaigns. A broad-based topic, the world is seeing a lot more emerge in the regulation around AI, biometrics, the use of biometrics and their effectiveness, when they can be used and not. In conclusion, combatting fraud requires continuous adaptation, with a mix of technology and human intervention, customer education, and regulatory compliance.…
How GenAI can be used to supercharge financial services from the inside out. There's a lot of talk about how Generative AI can be used to improve customer experience, but what are the implications for internal software and back office processes? In this episode of The Fintech Show, Trisha Price from Pendo , Marnix van Stiphout from ING , and Søren Andreasen from Nordea discuss the transformative impact AI is having in this area. Tune in to this informative episode to find out how: AI can automate KYC and CDD processes. Banks are leveraging AI to tailor user interfaces based on roles and experience. Tech can help surpass challenges posed by legacy systems. Leveraging AI for Digital Transformation AI adoption in all industries is growing and this is certainly true of financial services. According to the FCA, in the UK, 75% of firms are already using artificial intelligence (AI), with a further 10% planning to use AI over the next three years. Many organisations are now thinking about how it can be used to boost internal processes and the day to day lives of employees. But just implementing these tools doesn't necessarily guarantee success. Trisha Price, who is Chief Product Officer at Pendo, points out that the success of this depends on how well financial institutions use data. She highlights three types of data that are crucial: quantitative (how employees use applications), qualitative (how they feel about them), and visual (tracking user behavior like repetitive clicks, which indicate frustration). By analyzing these data points, financial institutions can refine employee and customer experiences, ensuring that the software investments they make, actually do yield productivity gains and business value. AI’s Role in Banking Operations So how can AI be used in banking? We’ve looked at this before and got more great thoughts in this episode. Marnix Van Stiphout, Chief Operations Officer at ING, acknowledges that while machine learning has been integral to banking for years—powering services like instant lending—generative AI (GenAI) presents new opportunities. One area he sees particular promise in is streamlining Know Your Customer (KYC) and Customer Due Diligence (CDD) processes, which traditionally require significant manual effort. AI-driven automation can gather and analyze vast amounts of data, enabling faster decision-making and reducing operational costs. Søren Rode Jain Andreasen, Head of Digital Customer Engagement Hub at Nordic bank Nordea, echoes this sentiment, noting that many banks, including their own, are already using AI internally to enhance efficiency. AI-driven automation shortens process cycle times and improves customer experience while maintaining data security. It’s also being used internally for everything from risk assessments to capital requirement models, and GenAI is quickly becoming another essential tool. AI Powered Decision Making Of course, we’re also interested to learn how AI is shifting the role of bankers by acting as a decision-support tool. Price talks about how AI-driven assistants can analyze customer data to suggest personalized product recommendations and pricing strategies. Beyond insights, AI agents are beginning to take on tasks traditionally handled by employees, further streamlining operations and improving customer interactions. Van Stiphout emphasizes the strategic question of whether to build or buy AI solutions. He suggests that banks should develop AI tools in-house if they directly impact client satisfaction. However, echoing Price’s earlier thoughts, he stresses that successful AI implementation depends on data readiness—ensuring that data is clean, structured, and accessible. Another key challenge in banking is legacy systems, something Andreasen clocks onto. Advisors often have to navigate multiple platforms, increasing the risk of errors when transferring data. The good news is AI can help automate these processes and detect inconsistencies, reducing error rates and enhancing operational accuracy. Personalization Through AI We talk about personalisation a lot and this is something that has come up before, in interviews with the likes of CX bot, Zingly.ai . But it’s not just personalising the customer experience that could be valuable. Price also discusses AI’s role in creating personalized experiences for employees too. Consumer platforms like Amazon and Netflix have shaped expectations for personalization, and financial institutions must follow suit. AI can tailor software based on the user’s role, experience level, and language preferences. For instance, an underwriter and a retail banker should have distinct interfaces suited to their tasks. Similarly, first-time users might benefit from a simplified experience, while seasoned professionals require quick access to advanced functionalities. She also highlights AI’s role in localization, enabling automatic translation of banking interfaces to serve diverse customer bases. This ensures seamless communication and improves accessibility for global users. As shown by this discussion AI is no longer a futuristic concept it’s a present day reality and it’s changing the way banks operate. Watch the video to find out how it could work for your organisation and check out our website for more great videos just like this one.…
In the latest episode of The Fintech Show, Rivo Uibo from Tuum , Gabriel Viera from Zenus Bank , and Daniel Rowlands from LHV Bank discuss the evolution of Banking-as-a-Service (BaaS), and the revenue generating possibilities it presents. As the space matures, priorities are changing. Seamless onboarding is one major goal but compliance is also key. Watch the episode to find out about: Open APIs are presenting very real opportunities to scale. How Zenus Bank are enabling LATAM super apps to offer U.S. banking services. The challenges facing Open Banking growth? The Evolution of Banking-as-a-Service (BaaS) The BaaS market has matured. For one, it is growing. It was valued at $15.9 billion in 2023 and is expected to expand to $64.7 billion by 2032 . Commenting on the demand for this technology, Tuum co-founder Uibo suggests that banks are now under pressure to stay relevant in an increasingly competitive landscape, seeking new revenue streams while leveraging their existing infrastructure. Initially, many BaaS providers targeted fintechs with relatively simple offerings but as the market evolves, compliance and economic viability have become critical focus areas. Now, successful players in this space, like LHV and Zenus, are focusing on solving real problems and delivering high-value integrations to their specific customer segments. Rowlands from LHV, builds on this by emphasizing the importance of seamless onboarding for scaling operations. Efficient KYC (Know Your Customer) and KYB (Know Your Business) processes allow fintechs to expand quickly across multiple jurisdictions without administrative bottlenecks. LHV, who saw significant growth in 2023 and 2024, embraces an open approach and its APIs are publicly available to ensure transparency and ease of integration. Rowlands believes that fostering collaboration in this way is essential for driving industry progress. Viera, who is Chief Compliance Officer at Zenus, provides a real-world example of how their offering enhances customer engagement while expanding market reach. Super apps in Latin America, for instance, can now offer U.S. banking services directly to their users, creating a frictionless experience. Zenus’ approach allows for deep customization via APIs, ensuring a tailored and branded user experience. The Role of Technology in Scaling Modern Banking Modern banking platforms need cloud-native, API-first architectures, Uibo says. By leveraging microservices and asynchronous processing, institutions can achieve the scalability required to support high transaction volumes while maintaining 24/7 availability. These technological advancements ensure that BaaS providers can meet growing customer demands without compromising reliability. Viera also explains how Zenus Bank has strategically evolved from a digital bank into a flexible platform supporting diverse business models. By offering embedded banking solutions, Zenus differentiates itself and gains access to new demographics, particularly in international markets. Through strong B2B relationships, the bank can extend its services beyond traditional banking, making financial services more accessible across various industries. Rowlands shares LHV’s journey in open banking, highlighting its well-established presence in Estonia, where LHV powers payments infrastructure across physical and digital channels. Now, the bank is bringing this expertise to the UK, launching a retail bank and providing payment initiation services to fintech clients who want to generate revenue this way. There are challenges to commercializing open banking however. Many providers struggle with compressed margins and fierce competition. The way forward, he argues, is moving beyond basic transaction services and solving more complex problems like fraud prevention and payment orchestration—areas where businesses are willing to pay for real value. Tuum’s Unique Advantage in Banking Infrastructure Uibo positions Tuum as a company with a deep-rooted understanding of banking infrastructure, shaped by decades of experience. It’s certainly true that they have consistently pushed technological boundaries, from building real-time transactional core banking systems in the early 2000s to developing microservices-based platforms. This expertise gives Tuum a competitive edge in delivering scalable and secure banking solutions tailored to today’s needs. We also hear about the critical role of data in payment processing from LHV’s Rowlands. With multiple payment schemes and varying acceptance rates across banks, fintechs need better insights to optimize transaction flows. LHV helps clients navigate these complexities, advising on the best payment routes and minimizing potential pitfalls like IBAN discrimination. There are a number of key takeaways here and the discussion underscores how modern banking is opening up new revenue streams through agile, technology-driven ecosystems. Be sure to let us know what you think of the episode above and catch more great conversations just like this one, on our website .…
What if European Startups had access to a Silicon Valley mindset? In the latest Virtual Arena we spoke to Hussein Kanji, founding partner of Hoxton Ventures , who shared his perspective on early-stage venture capital and some of the challenges facing the European tech ecosystem. It’s a really interesting look at how we can build globally competitive companies in Europe. Watch the interview to find out how… Hoxton Ventures combine European focus with Silicon Valley principles to scale startups internationally. How growth-focused valuations differ compared to the U.S. market. His thoughts on the future of cybersecurity. Hussein Kanji is a founding partner at Hoxton Ventures, with significant experience in the VC industry, both in the U.S. and Europe, and offered a fascinating perspective for fintech professionals, bankers, and enthusiasts. A Career Rooted in Early-Stage Investing In the interview, Kanji began by explaining his role at Hoxton Ventures, a firm he co-founded a decade ago, specializing in seed-stage investments. His career path led him from building companies on the U.S. West Coast to joining a major American VC firm, and ultimately establishing Hoxton Ventures in London. His focus on early-stage investing stems from his entrepreneurial roots and a belief that the early phases of a company’s journey are the most rewarding, albeit risky. Kanji emphasized that identifying promising startups at this stage requires a blend of art and science. With three IPOs from 17 investments in their first fund, their record demonstrates their expertise. The Early-Stage Appeal When asked why he chose the risky early-stage market, Kanji highlighted its intellectual stimulation and potential to shape the future. He reflected on his early encounters with venture capitalists, noting how their role as financial enablers rather than creators aligned with his strengths. This inspired his shift from entrepreneurship to investing. Early-stage VC, according to Kanji, allows for profound impact by helping startups build a foundation for growth, often leading to transformative outcomes. A European Venture Firm with a Silicon Valley Mindset Kanji outlined Hoxton Ventures’ distinctive approach: combining a European presence with Silicon Valley principles. The firm prioritizes guiding startups to scale in the U.S., recognizing it as the world’s largest accessible market. This strategy often involves encouraging founders to focus on America early, despite the challenges of relocation and expense, as the U.S. market can exponentially increase a company’s size and valuation. Another cornerstone of their strategy is leveraging Silicon Valley’s accumulated expertise. By maintaining connections with the Valley, Hoxton ensures its portfolio companies remain competitive on a global scale. Kanji emphasized the importance of understanding what “best-in-class” means by benchmarking European startups against their American counterparts, benefiting from decades of industry knowledge concentrated in California. Challenges in the European VC Landscape Kanji candidly discussed the challenges European startups face compared to their U.S. peers. He highlighted the cultural and structural differences that impact valuations, particularly in public markets. For example, high-growth companies like Darktrace struggled to achieve U.S.-equivalent valuations in the UK , partly due to the London Stock Exchange’s preference for dividend-paying, profit-oriented firms. This discrepancy underscores a broader issue: the need for Europe to adopt a growth-first mindset to attract and retain high-potential startups. Kanji believes Europe is still in its early days as a tech ecosystem but is making strides. While the region produces unicorns, the challenge lies in scaling these into $100 billion or $500 billion giants. He suggested this requires fostering a more ambitious investment culture and addressing structural issues in capital markets. Fintech, Cybersecurity, and Infrastructure: Key Trends Though Hoxton hasn’t invested heavily in consumer fintech, Kanji expressed admiration for companies like Revolut and Monzo. He acknowledged a missed opportunity with Monzo in its early days but noted Hoxton’s strength lies in fintech infrastructure. One of their portfolio companies, Vitesse, exemplifies this focus. Vitesse simplifies financial operations for insurance firms, enabling efficient fund transfers while maintaining control—a critical innovation in the insurance industry. On cybersecurity, Kanji commented on Darktrace’s privatization, viewing it as undervalued in the UK public markets. He suggested the company could achieve a higher valuation in the U.S., reflecting the difference in market attitudes towards growth and profitability. He also highlighted the strategic appointment of Darktrace’s CEO, Poppy Gustafsson, as the UK’s Investment Minister, signaling the country’s intent to improve its investment climate. The Path Forward for European Startups Kanji concluded by reflecting on the evolution of Europe’s tech ecosystem. While optimistic about the region’s potential, he stressed the importance of building world-class companies capable of competing globally. The key, he argued, lies in fostering a supportive investment environment that prioritizes long-term growth over short-term profitability, paving the way for more transformative success stories. It’s a candid and thoughtful exploration of the venture capital landscape. You can catch other conversations just like this one on our website .…
These areas of fintech could be big in the next few years. In a great conversation on the FF Virtual Arena, Tarun Gupta of Jump Capital shared his journey from investment banking to fintech investment, and let us know how compliance can become a strategic advantage. There’s a huge amount of funding still going into the fintech sector, which is growing all the time. This list of the hottest 250 startups in Europe from Sifted, shows that there are still plenty of neobanks and fintechs doing the business. Now, a lot of funding is going into AI right now, but even within fintech, areas like wealth management are seeing a lot of investment. That’s why it’s so important to hear from those on the funding and investment side. Catch more interviews just like this one over on our Virtual Arena page. Watch the full interview to find out more about: Compliance as a competitive differentiator. Jump Capital’s investment philosophy. The emerging threats around payment fraud and what’s needed to prevent it. From Investment Banking to Fintech Investment Of course, whenever we do a profile like this, we do like to get a good look up inside their career. After giving us the lowdown, Gupta provided valuable insights tailored for fintech professionals, bankers, and enthusiasts keen on the industry’s evolution. Gupta began his career in investment banking, working on mergers and acquisitions, where he gained deep exposure to deal processes. From there he transitioned to corporate development at Scientific Games, driving growth through multiple acquisitions. But it was his interest in supporting early-stage companies through their growth trajectories that led him to Jump Capital. Here, he specializes in fintech investments, leveraging his extensive experience to identify and back transformative startups. Jump Capital’s Investment Philosophy Founded 12 years ago, Jump Capital focuses on early-stage investments (seed to Series A) across three main verticals: enterprise software, IT infrastructure, and fintech. Gupta dedicates his time exclusively to fintech, seeking out innovative solutions that address pressing “hair-on-fire” problems exacerbated by macro trends like regulatory changes or shifting consumer behaviors. As for what they’re looking for, the firm looks at two main things. Identifying software solutions that offer measurable ROI to address significant business challenges. Backing founders with unique insights and resilience, traits essential for navigating the unpredictable startup landscape. Fintech Compliance: From Cost Center to Competitive Advantage One of the big talking points in financial services is always compliance. But Gupta discusses a paradigm shift when it comes to how compliance is perceived in the industry. Traditionally viewed as a back-office cost, compliance can now be seen as a differentiator, particularly amid increasing regulatory scrutiny. He explained how robust compliance frameworks can drive sustainable growth and position firms competitively. Gupta noted that many compliance processes remain manual and outdated, presenting a ripe opportunity for innovative software to streamline and enhance these functions. Payment Fraud: Emerging Threats and Innovations There’s also a lot of talk about payment fraud, where Gupta sheds light on two pressing areas: chargeback disputes and push payment scams. He noted the growing prevalence of “friendly fraud,” particularly among younger consumers, and the need for banks to adopt more sophisticated tools for dispute resolution. Gupta highlighted the regulatory developments in the UK that mandate banks to reimburse victims of push payment fraud, a trend he anticipates will influence the US market. He pointed out the delicate balance fintechs must strike: introducing enough friction to deter fraud without disrupting user experiences. Innovative solutions, such as systems that pause high-risk transactions for verification, are paving the way for more secure and user-friendly financial ecosystems. Gupta’s insights underscore Jump Capital’s commitment to identifying and nurturing fintech solutions that address critical industry challenges. It’s a great insight into one of the companies driving the industry forward.…
This bank rewards you for positive financial habits. In the latest FF Virtual Arena, we’re joined by Discovery Bank CEO Hylton Kallner to discuss the bank’s rapid growth, innovative approach, and the future of digital banking in South Africa. Discovery Bank are seeing a startling rise to prominence through their shared-value model, which rewards customers for positive financial behaviour, and have been branchless from day one. Watch the interview to hear more about this fascinating approach and… Their latest customer milestone, two years ahead of schedule. Why they’re the World’s First Behavioural Bank. What their AI-powered co-pilot looks like. Ahead of Schedule Speaking to Ali Paterson, Hylton Kallner, CEO of Discovery Bank, was happy to talk about recently celebrating the milestone of reaching one million customers —an achievement realized two years ahead of schedule. They’ve been making waves in an emerging market and it’s impressive to see. South Africa’s banking system, Kallner explains, was already robust and well-regulated before Discovery Bank entered the market. Unlike some regions where fintechs emerged to address systemic failures, South Africa’s banking sector was stable and mature. However, their own research revealed a clear demand for digital banking, with nine out of ten South Africans expressing a preference for online solutions. Despite widespread branch infrastructure, the rise of smartphone penetration—even in rural areas—created a fertile ground for a fully digital banking experience. Discovery Bank seized this opportunity by launching a branchless, full-service digital bank, eliminating the traditional constraints of physical infrastructure. This approach not only appealed to customers looking for convenience but also enabled the bank to focus entirely on user-centered technology and design. Building a Bank from Scratch Like a lot of neobanks, one of Discovery Bank’s key advantages was its lack of legacy systems, which allowed it to build its technology stack from the ground up. Kallner described this as both a challenge and a luxury. The bank uses an SAP platform for industrial-strength back-end operations while designing bespoke front-end systems to create seamless customer experiences. Features like instant account opening with full compliance checks reflect this focus on simplicity and efficiency. In addition to its digital offerings, Discovery Bank introduced a hybrid service model that combines advanced technology with highly qualified human support, including private banking services. This dual approach provides the flexibility of digital banking alongside personalized assistance, setting it apart from many fintech challengers. The World’s First Behavioral Bank Discovery Bank’s most distinctive feature is its “behavioral banking” model, which rewards customers for healthy financial habits. The bank tracks five key metrics, such as spending less than you earn and maintaining sufficient retirement savings. Unlike traditional credit scoring, this approach is income-agnostic, recognizing that financial behavior, not income level, determines risk. By incentivizing positive behaviors, Discovery Bank aligns its goals with those of its customers. For example, clients who manage their finances responsibly benefit from better interest rates, discounts on travel, and Discovery Miles —a rewards currency that can be used for shopping or flights. This shared-value model, inspired by Discovery Group’s broader focus on wellness, fosters a mutually beneficial relationship between the bank and its customers. Gamification and Engagement Core to Discovery Bank’s strategy is gamification. Customers can set personalized goals related to spending, health, and even driving habits, earning rewards for meeting these objectives. Weekly challenges and a game-like reward system have led to high levels of engagement, with some customers maintaining streaks for nearly a decade. Kallner noted that this gamified approach not only incentivizes good behavior but also deepens customer loyalty, creating an ecosystem where financial and personal well-being are interconnected. AI: Enhancing Service Behind the Scenes Of course, we had to find out what role AI is playing in their banking strategy too and Kallner highlighted the transformative role of AI in their bank, particularly in operations. Discovery Bank has implemented AI “co-pilots” in its call centers, equipping bankers with instant access to product knowledge and solutions. This technology has significantly reduced training time, improved first-call resolution rates, and enhanced customer satisfaction. For customers, this means faster, more accurate service, while bankers can focus on empathy and value-added advice rather than routine queries. Kallner pointed out that AI democratizes private-banking-level service, making it accessible to a wider audience. Scaling for the Future Looking ahead, Discovery Bank sees significant potential for growth, both within South Africa and across the continent. Kallner emphasized the scalability of the bank’s digital-first platform, noting its ability to expand without adding substantial human resources. However, regulatory challenges and compliance requirements will play a key role in determining the pace and extent of cross-border expansion. Kallner also hinted at the transformative potential of cloud-based platforms, which eliminate the need for physical infrastructure in new markets. While he refrained from committing to specific growth targets, he expressed confidence in the platform’s capacity to scale significantly. It’s an impressive journey that reflects a bold vision for the future of banking, and one that could very easily be replicated around the world. We hope you enjoy this insight into this particular challenger and be sure to check out our other interviews with fintech leaders on our website .…
Investing in the future of insurance. Admiral Pioneer, the insurer’s venture-building arm, is investing in the next generation of insurance technology. In our most recent FF Virtual Arena, we spoke to CEO Emma Huntington, to find out more. Partnering with the likes of Flock, and leveraging technology like generative AI, they are looking at ways they can enhance claims processes and customer experiences. Join the discussion as we find out: How to remain relevant to younger consumers. Which of their portfolio companies they’re most excited by. How Generative AI and data-driven insights could be used in insurance. Read on to find out more. The Vision Behind Admiral Pioneer To begin the discussion, we find out their motivations behind launching this venture initiative. We’ve spoken to a number of established companies who have done a similar thing, including KPMG , PayPal and FIS , and it’s always good to get an insight into what’s behind it all. In a similar fashion Admiral Pioneer was created to diversify Admiral Group’s business portfolio by fostering new, high-potential ventures. For Admiral, they’re being quite selective. The goal, according to Huntington, is to nurture one or two commercially strong businesses that align with Admiral’s core values of customer-centricity and operational excellence. They also provide an entrepreneurial space for Admiral’s talent. Host Ali Paterson, described Admiral Pioneer as being a “speedboat” maneuvering with agility while tethered to Admiral’s “big ship.” Huntington echoed this analogy, using instead the sandbox metaphor for experimenting with innovative products, distribution methods, and customer segments, in service of supporting the main enterprise. Navigating a Shifting Insurance Landscape Insurance is undergoing a transformation. Funding in B2B SaaS is on the rise , and GenAI is being used more than ever. Reflecting on the rapid evolution of the insurance industry, Huntington highlighted several key drivers of change: Post-Pandemic Transformation: The challenges of launching Admiral Pioneer during the pandemic underscored the importance of adaptability and maintaining strong internal relationships in a remote environment. Insurtech Disruption: The rise of insurtechs has pushed traditional insurers to innovate. Huntington likened this wave of change to the impact of Open Banking on the financial sector, with insurtechs giving greater flexibility, personalisation, and usage-based models in insurance. Customer Relevance: Traditional insurance isn’t typically top-of-mind for consumers, but emerging technologies are enabling insurers to provide more meaningful, everyday interactions. Collaborating with Insurtechs Given these trends, Admiral Pioneer is all about partnering with insurtechs, and Huntington points out the mutual benefits of combining the tech-savvy agility of startups with the insurance expertise of incumbents. There are some pitfalls to these partnerships however, including misaligned expectations and timing mismatches. For instance, while insurtechs focus on scaling quickly, insurers may require more time to integrate solutions. Clear communication and aligned goals are critical to successful collaboration. Huntington shared an example of Admiral Pioneer’s partnership with Flock , an insurtech specializing in fleet insurance. By setting clear expectations and aligning on values and culture, this collaboration has yielded promising results since its launch in mid-2023. Who are the core companies in Admiral Pioneer’s portfolio There are a few specific ventures in Pioneer’s portfolio, aimed at addressing specific customer needs. Here’s the main ones. Veygo : Focused on learner and temporary drivers, this business provides tailored insurance options, including subscription models to match consumer habits. Veygo caters to both young drivers and their parents, helping build confidence and independence. Admiral Business : Initially launched as a tool insurance product, this offering has expanded to cover tradespeople, small businesses, and professional liabilities. The venture leverages customer and broker feedback to continuously refine its products. Fleet Insurance : Admiral Pioneer’s expertise in motor insurance extends to fleet insurance, supported by partnerships like the one with Flock, to offer innovative, data-driven solutions. Generative AI and the Future of Insurance Of course, the potential of generative AI (GenAI) has the potential to transform the insurance value chain. Huntington identified a few key use cases in the chat above, including: Claims Management: Streamlining processes with automated data collection and analysis to enhance the customer experience. Pricing and Underwriting: Leveraging AI to improve accuracy while combining human expertise and data science. Customer Engagement: Personalizing interactions and service design based on deep customer insights. Vehicle Data Utilization: Exploring opportunities in motor insurance by integrating data from connected and autonomous vehicles. Despite its potential, Huntington stressed the importance of robust governance and ethical considerations when deploying AI, ensuring customer trust remains paramount. Adapting to Changing Consumer Behaviors We also get some insightful thoughts on shifting attitudes among younger generations, particularly in how they engage with insurers. With preferences for platforms like WhatsApp and Snapchat over traditional channels, insurers must adapt to meet customers where they are. This extends to exploring trends like embedded insurance, where products are seamlessly integrated into everyday platforms. Watch more great conversations like this one on our website .…
Tailoring automotive insurance to consumer driving habits. In the latest FF Virtual Arena, we spoke to Fred Blumer, CEO of Mile Auto , an exciting Insurtech startup that leverages mileage data to offer fairer pay-per-mile auto insurance for drivers. It’s built as a response to consumer trends such as the rise in remote work and it aims to make insurance more tailored to the individual. We also cover how this technology has potential environmental benefits on top of potential lower premiums. Watch the video to find out more and catch more conversations with founders on our website . Fred Blumer’s Journey: From Telematics to Insurance Disruption The discussion began with an insight into Fred Blumer’s career so far. He’s CEO and co-founder of Mile Auto and Porsche Auto Insurance and has over two decades of experience in the connected vehicle industry. Early on he co-founded Hughes Telematics, designing systems for major automotive manufacturers like Mercedes-Benz and Nissan. A turning point came when he realised the significance of mileage data in determining insurance risk. While vehicle data streams offered insights into driving behaviours, Blumer identified a privacy concern: consumers might not want insurers to have access to sensitive data like location or driving habits. This epiphany led to the creation of Mile Auto, which just looks at mileage data. The Appeal of Pay-Per-Mile Insurance Low-mileage drivers often lose out when getting insurance from traditional insurers, due to subsidising high-mileage, higher-risk drivers. Mile Auto flips this model, offering a fairer pricing structure for those who drive less, such as remote workers, empty nesters, and families with extra vehicles. By focusing only on mileage and traditional underwriting data, Mile Auto ensures a transparent and privacy-conscious approach. Customers simply submit odometer photos monthly, avoiding invasive GPS or behavioural tracking. The low-mileage segment is substantial: 60% of U.S. vehicles travel fewer than 10,000 miles annually, representing a $200 billion market opportunity. During the pandemic, when remote work became the norm, Mile Auto saw significant growth as consumers re-evaluated the cost of insuring cars that sat idle. Balancing Data and Privacy Blumer emphasised that while insurers have traditionally been enamoured with vast amounts of vehicle data—speed, acceleration, location, and more—this approach often overlooks consumer privacy concerns. He shared anecdotes from his earlier career, where sensitive data was subpoenaed for non-insurance purposes, underscoring the risks of over-collection. Mile Auto’s approach prioritises minimal data collection, using computer vision and machine learning to ensure accuracy without compromising privacy. Interestingly, most Mile Auto customers prefer submitting odometer photos over sharing data directly from connected vehicles, citing mistrust in automakers’ data-sharing practices. This reinforces the importance of transparency in building consumer trust. Partnership with Porsche Another exciting topic in the conversation was around Mile Auto’s collaboration with Porsche Financial Services highlights its ability to customise offerings for niche markets. Porsche Auto Insurance, launched in 2019, caters to Porsche drivers’ unique needs, including agreed value coverage (critical for cars that appreciate over time), access to OEM parts, and certified repair shops. This bespoke product aligns with Porsche’s brand values and its customers’ passion for their vehicles, resulting in high satisfaction and retention rates. Blumer noted that this partnership stems from a shared philosophy: respecting customer privacy while delivering tailored solutions. Unlike insurers that track driving behaviour, Mile Auto’s model resonates with Porsche customers, who value performance without invasive monitoring. Technology, Trust, and the Future Blumer’s reflections on technology underscored its dual role as both a driver of innovation and a potential threat to consumer trust. By prioritising privacy and transparency, Mile Auto is charting a course that respects customers’ values while delivering measurable benefits. Mile Auto and its partnership with Porsche are prime examples of how data-driven insights, when used judiciously, can disrupt traditional industries for the better—offering a fairer, more customer-focused alternative to conventional auto insurance. Watch more episodes of FF Virtual Arena right here .…
A third of global trade now comprises digital platforms and services. But this shift means financial institutions face new pressure to change the way they do things. Vivek Ramachandran, leads Global Trade Solutions for HSBC , an institution with a long and rich trade history. For the latest FF Virtual Arena, we caught up with him to get his perspective on what’s changing and, in advance of a Beijing hosted Sibos , what China and more broadly Southeast Asia’s role is in trade finance. Watch the conversation to find out more. A shifting landscape In this insightful interview, Ramachandran gives us a solid overview of the current and future trends that are transforming the world of trade. HSBC have been in the business for more than 155 years and they continue to play a crucial role in the global trade finance ecosystem. Our Virtual Arenas are all about speaking to the experts and as Head of Global Trade Solutions, Ramachandran knows a thing or two about this space. Of the insights we’re given, none is more interesting than how much trade in services has grown compared to traditional goods trade. Historically, trade was predominantly about shipping physical goods, but according to Ramachandran now services such as cloud solutions and digital platforms constitute nearly 30% of global trade. And according to the WTO, digitally delivered services now equate to 54% of all services exports in general. It makes a big difference. For banks like HSBC it means adapting to new business models and getting tooled up to support companies operating in this new age. Global supply chains are being fundamentally reshaped due to factors such as geopolitical pressures, cost considerations, sustainability goals, and the need for resilience. As a result, Ramachandran points out that they’re becoming more complex – some are getting shorter and others are expanding. As businesses shift their supply chain strategies, the need to manage risks, and consider sustainability and the impact of trade on the environment, has become paramount. Like many, he believes that being sustainable is no longer a “nice to have” but a “must have” and companies are now expected to address environmental and social concerns not just within their own operations, but throughout their supply chains. For Ramachandran, sustainability now includes transparency on issues like emissions, forced labor, and supply chain safety. Financial institutions like HSBC want to help their clients solve these issues but also be seen as experts in the matter. New business models We also find out about new business models in trade, especially in the realm of digital commerce. Given more and more B2B trade is now taking place digitally (as well as concerning digital services), there are increased challenges in understanding and managing new types of counterparties. Data also plays a role. Ramachandran discusses the anonymity of digital transactions and the new data these transactions generate, which require new digital decision-making tools and customer onboarding processes. He also provides a balanced view of the impact that cutting edge technologies could have. While early discussions about distributed ledger technologies and blockchain were promising, the path forward appears to be more government-driven initiatives like the UK Electronic Trade Documentation Act and the adoption of electronic records transfer laws by countries like France, Germany, and Singapore. These initiatives are paving the way for the future of trade digitization, but like many speakers we talk to, Ramachandran emphasizes that technology must be seen as an enabler, not an end in itself. Sibos and South East Asia Of course, given the growth happening in the Asia-Pacific region, and particularly Southeast Asia, we wanted to know about developments in trade finance here. It’s a region at the heart of many of the global trends in trade, such as the restructuring of supply chains and the booming e-commerce sector. He highlights how countries like Vietnam, Malaysia, and Indonesia are becoming major hubs for new manufacturing supply chains, while Singapore leads in trade digitization. He praises Singapore for its innovative initiatives, including its National Trade Portal and its adoption of UN laws governing electronic trade. We also hear about the annual Sibos event which this year is being hosted in Beijing, for the first time. The location potentially causes some difficulty to other attendees but Ramachandran expresses excitement about the opportunity this presents, particularly given China’s thriving digital economy and innovation in areas like deep-tier financing . He also notes that China remains the world’s largest exporter and is increasingly investing in overseas markets, offering numerous opportunities for both Chinese and global businesses. HSBC themselves have made strategic partnerships in China, to support e-commerce exporters with financing based on transaction data. There are further points discussed so be sure to check out the whole interview and discover more great conversations just like this one on our website .…
These areas of fintech are still getting plenty of investment. In a funding environment that has its ups and downs, there is definitely good news for startups seeking funding. We had the pleasure of speaking to Andre De Haes, founder of Backed VC, to find out what being “a maverick fund” looks like in practice and what they look for in successful fintech founders and startups. We talk about how the European funding environment has changed in recent years and much more. A Maverick Fund Backed VC are “determined to do European venture capital differently”. Certainly their brand sticks out as slightly more rock and roll than some of their venture capital compatriots. According to De Haes, doing things differently involves bold bets in under-invested sectors, long-term thinking, and a distinctive culture of founder engagement. He gives examples of their early bets on blockchain gaming, an area that seemed unconventional at the time but has since produced massive valuations , particularly with investments like Axie Infinity and Immutable X. Backed’s approach is also reflected in how they interact with founders, a relationship that often includes excursions and activities, all in service of forging long-term partnerships that go beyond the traditional fund-founder dynamic. They focus on a few specific verticals, one of which is fintech and De Haes explains that Backed’s sector choices were born out of strategic thinking. They honed in on four key multi-trillion dollar industries ripe for disruption: computational biology, manufacturing software, Fintech infrastructure, and AI-driven drug development. They’re certainly exciting on the face of it and not only do they hold tremendous potential for tech innovation but also provide Europe with a strategic advantage over the U.S. In the interview above, De Haes points out how few VCs are tackling these challenging industries and emphasizes how Backed is leading the charge in areas like AI-driven drug discovery, a field relatively untouched by VCs. The funding landscape today The conversation also covers the evolving funding landscape, particularly the sharp valuation drops in later-stage funding rounds. There’s definitely been a number of changes in the ecosystem recently, with more funding even coming from Private Equity . Here, De Haes provides an insightful and thorough breakdown of the post-2022 revaluation environment, explaining that while seed stage funding has only seen minor corrections, later rounds have experienced significant declines in valuation. Interestingly, he notes that these downturns provide opportunities for investors willing to cherry-pick undervalued but strong companies. In one of the more forward-looking segments, they discuss the future of blockchain and decentralized finance (DeFi). De Haes shares his belief that the mainstream adoption of blockchain will happen largely “invisibly” through back-end applications that consumers may not even realize are leveraging blockchain technology. He envisions broader institutional adoption and even the possibility of government-backed blockchain systems in the future. There’s also some valuable insights into what Backed looks for in founders. We’ve asked a number of other people in the industry what they look for and it’s interesting to see how their advice compares. De Haes emphasizes the importance of “founder-product fit,” grit, execution speed, and commercial acumen. He shares fascinating examples of founders like Quinn, who is revolutionizing liver therapeutics with AI, and the seasoned team behind Travisory, who are disrupting border management systems. For De Haes, it’s not just about finding brilliant founders but those with a unique “right to win” in their specific domain. Watch the video to find out more about the London Fintech Network, and get even more detail on the above topics. It’s a really interesting insight into the world of venture capital. Watch more conversations just like this, on our website .…
For AI to have a positive impact on banking, clarity is key. On the latest FF News Virtual Arena, Allan Kissmeyer from SEB Bank explores the increasing role of evolving technologies in banking from his vantage point in the Nordic region. SEB’s unique focus on large corporates in the Nordics means he can also weigh in on the importance of standardization, particularly through ISO 20022, as a foundation for leveraging the likes of AI, and offers a couple of timely concerns too. Read on to find out more about what we discussed. The conversation around AI Allan Kissmeyer is the head of cash management at SEB Bank and knows a thing or two about how money is moving around Europe. Speaking to Tim Goodfellow, he’s able to offer some insights from a Nordic banking context but also explores the rise of central bank digital currencies (CBDCs) in Europe. SEB has a unique position in the market, supporting large corporates and financial institutions, a legacy that distinguishes it from other Nordic banks, particularly in the retail space. Unsurprisingly, a major part of the conversation focuses on AI’s potential in banking. It’s something we’ve covered in many other conversations including this one exploring use cases in banking today. While AI is often hailed as transformative, Kissmeyer emphasizes that banks should proceed cautiously, particularly in the absence of clear regulatory frameworks. There’s no question however that AI offers significant opportunities, especially in enhancing internal processes like payment systems. He highlights how cash management, which relies heavily on standardization and straight-through processing (STP), could benefit from AI by reducing inefficiencies caused by deviations in payment flows. However, Kissmeyer stresses the importance of building a solid foundation, such as the ISO 20022 standardization, before fully leveraging AI and other advanced technologies like blockchain. While ISO might seem like a behind-the-scenes development, its implementation represents a multi-billion-dollar investment critical to ensuring global financial stability. Embedded finance is about driving financial inclusion The conversation also covered another hot topic, embedded finance. In his view, this is not only about improving operational efficiency but also about driving financial inclusion, a central responsibility of banks. However, regulatory pressures rear their head again and Kissmeyer raises concerns about the conflicts banks face, particularly the challenge of balancing anti-money laundering (AML) requirements with open banking regulations like PSD2 and the forthcoming PSD3. He underscores the need for clarity and uniformity in regulations to avoid contradictory mandates that could impede progress in areas like financial inclusion. Finally, the discussion moves to central bank digital currencies, specifically the digital euro, and their potential impact on financial systems. The prospect of a Digital Euro rollout is gathering steam and Kissmeyer expresses cautious optimism, noting that while CBDCs could enhance financial inclusion, their broader implications remain uncertain. The other thing is that in the Nordic region, the digital euro may have limited impact due to the existing currency ecosystem, but that’s not to say they couldn’t have digital currencies of their own. It’s a great all round look at the state of technology in banking, and there are many more conversations just like this one on our website.…
Why should fintech startups make the trip across the Atlantic for Money 20/20 USA 2024? We find out the answers to all this and more in the second part of our conversation with Scarlett Sieber and Zach Anderson Pettet from Money20/20 as they discuss how the global ecosystem is represented at the conference and the unique opportunities it offers for networking. There’s comments on the current fintech landscape and how these times can actually be seen as fertile ground for resilient, impactful startups to emerge. If you haven’t already, check out part one of this conversation on our website. Why you should attend Money20/20 In the second part of our conversation with Scarlett Sieber and Zach Anderson Pettet from Money20/20, Ali Paterson shifts the focus toward the event’s global relevance and the strategic importance for international fintech companies aiming to enter the North American market. It could be said that in the past, a US focus may have deterred some from making the considerable expense to attend. He asks why companies from Europe, Asia-Pacific, and Latin America should consider attending? In response, Anderson Pettet lets us know about the evolving global nature of Money20/20. He highlights the increasing participation from regions beyond North America, particularly Asia and Latin America, pointing out that the event is not just about the US anymore; it’s about creating a global dialogue in fintech. In fact, more regulators from Latin America will attend this year than those from the US, reflecting the growing significance of the region, something we’ve touched on before . He argues that for any startup, attending Money20/20 provides unparalleled exposure and the opportunity to test ideas in a concentrated, high-stakes environment. It’s a chance to see if a strategy to enter the US market is viable before making a significant financial commitment. A whole host of interesting speakers For Sieber the value of Money20/20 is as a platform for education and networking. The event offers more than just a chance to meet potential investors—it’s an opportunity to refine pitches, test ideas with a diverse audience, and forge partnerships. The US market might be challenging to crack, but the opportunities it offers, particularly at Money20/20, are unmatched and who knows where it could take your startup. We also find out much more about the speakers and content at the event with Ali asking what excites our guests about the speakers. One thing that’s mentioned is how the content could potentially influence the direction of the global ecosystem and could have done in the past, if Money20/20 was around then. For Anderson Pettet, the most exciting moments are when startups emerge from stealth and end up being catapulted into the public consciousness, accelerating their growth. Of course, while large stages and big-name speakers are exciting, some of the most impactful moments happen in smaller, more intimate settings. These can leave a lasting impression on the select few who experience them, showcasing the breadth and depth of the fintech community. Sieber also notes that the process of preparing speakers, especially high-profile ones, involves considerable behind-the-scenes effort to ensure that the content resonates and adds value. What does the future of fintech look like? We also get a broader reflection on the fintech industry’s current state, with Ali asking whether the industry should remain optimistic given the recent challenges, such as IPO speculations and venture capital shifts. Sieber remains optimistic, viewing the current reset as a necessary correction that will lead to more sustainable and impactful fintech businesses. She believes that the companies that can navigate these tough times will emerge stronger and become the new industry darlings. And lastly, there may even be a couple of hints about things attendees can expect to see at this years event. Be sure to watch the video to find out more.…
This could be the second biggest thing happening in the US this Autumn… Money 20/20 is one of the biggest fintech conferences in the world. The US iteration kicks off in Vegas next month. We had to find out what sets it apart and give those at the top an opportunity to argue the case for events like this and let us know what’s happening in the fintech space across the Atlantic. Find out more below. A lively discussion In a lively discussion, Ali Paterson speaks to Scarlett Sieber and Zach Anderson Pettet, who both play pivotal roles in the strategic direction of Money20/20 globally. The conference now takes place at 3 locations around the world , throughout the year, including Europe and Asia, earlier this year. You can watch our Money20/20 Europe coverage here. Here, Pettet talks about his dual role as the Director of Content and VP of Fintech Strategy, which means he oversees the event’s global scope. The Fintech industry is constantly changing which, he says, necessitates a constant evolution in the event’s content to reflect current trends and future developments. Of course, AI gets a mention and regulatory changes are also impacting the industry in a big way so the event must continuously adapt. Sieber, Money20/20’s Chief Strategy and Growth Officer, explains that her role involves managing the overall product of Money20/20, including content, marketing, and creative aspects. For her, surprising and delighting attendees is a key goal and notes that the way people engage with events has changed. New ways of doing things are needed and technology plays a key role in this. Of course, there’s lots of different stages and formats, such as the “Off The Record” stage and the “Press Briefing” stage, which they hope will create more engaging and transparent discussions. Unique timing Our panel also talks about how this year’s event will differ from previous years. Sieber points out that the 2024 event will be particularly significant, occurring just days before the upcoming U.S. election , a significant moment in history if ever there was one. This of course adds an extra layer of relevance to the discussions on policy and regulation. They also tease some of the high-profile speakers and topics that will be featured at the event, including discussions on AI, regulatory updates, and embedded finance. Speakers will include Lynn Martin, President of the New York Stock Exchange, and Danielle Omodei, CEO of Anthropic, who will provide insights into the future of Fintech and its intersection with emerging technologies. It’s an energetic conversation, and you’ll definitely get a sense of the speakers’ deep enthusiasm for the event and the industry. And this is just Part 1. Watch out for Part 2 coming soon.…
It’s time to make the ISO 20022 shift. The new global standard promises to unlock a new era for banking. It could be time to get on board. In a brand new FF News Virtual Arena, Ali Paterson spoke to Greg Murray from Santander Bank in the U.S. to find out more. Promising greater data richness and improved transaction efficiency, Murray explains how banks like Santander are heavily investing in the transition to ISO 20022 to meet regulatory deadlines and adapt their systems. It’s a topic on everyone’s lips and something we’ve covered in other videos on our website, including this video on getting ISO 20022 ready in Cambodia, and this article looking at the benefits of making that shift. There is some concern for how smaller businesses will cope with the shift and to help with this Murray says the transition needs to be a collaborative one. Read on to find out more. The ISO 20022 transition The financial industry is undergoing a significant transformation with the adoption of ISO 20022, a new global standard for exchanging electronic messages between financial institutions. It will replace older messaging formats like SWIFT MT, offering a more flexible, efficient, and data-rich way to process transactions and communicate across the financial landscape. But what exactly is ISO 20022, and why does it matter? In our interview, Greg Murray, Managing Director of Treasury Services Product Management at Santander Bank in the U.S., shared his insights into the new standard and its impact on the global financial system. What is ISO 20022? ISO 20022 is an international standard that provides a common language for financial messaging. Unlike its predecessors, it is not just a format but a comprehensive methodology that includes a data dictionary and a set of guidelines for message creation and use. It is designed to handle a wide range of financial transactions, including payments, securities, foreign exchange, and trade finance. The standard was developed to address the limitations of older messaging formats like SWIFT MT, which have been in use since the 1970s, although as Murray points out SWIFT (the Society for Worldwide Interbank Financial Telecommunication) are very much championing this change. He points out that existing messaging systems are limited by their rigid structures and lack of support for the rich, structured data that modern financial transactions need. Why ISO 20022 Matters ISO 20022 is not just about replacing old standards; it’s about enabling a new way of handling financial data. The move towards ISO 20022 is driven by several key factors: Rich Data Handling: ISO 20022 messages can carry much more detailed information than older formats. This means more data can be transmitted in a single message, reducing the need for multiple messages to complete a single transaction. For example, it allows for up to 140 characters of remittance information, compared to the 35 characters allowed in SWIFT MT messages. Standardization Across Markets: Currently, different regions and banks often use different messaging formats, creating complexity and inefficiency in cross-border payments. ISO 20022 offers a unified standard that can be adopted globally, simplifying processes and reducing the risk of errors. Enhanced Compliance and Transparency: The new standard supports better data granularity and quality, which is crucial for meeting regulatory requirements. As Murray points out, regulators around the world are increasingly demanding more detailed and accurate data, and ISO 20022 provides a way to meet these demands. Future-Proofing Financial Systems: With the increasing digitization of financial services, there is a growing need for systems that can handle large volumes of complex data. ISO 20022 is designed to be flexible and extensible, making it easier to adapt to future technological advancements. The Global Adoption of ISO 20022 The adoption of ISO 20022 is already underway globally, with many major financial institutions and market infrastructures moving towards the new standard. The transition is being spearheaded by SWIFT, which has set a roadmap for migrating its members to ISO 20022 by the end of 2025. This is the big deadline that most institutions are looking towards. Murray noted that while the initial transition may pose challenges, the benefits far outweigh the difficulties. He emphasized that ISO 20022 is not just a compliance requirement but an opportunity for financial institutions to enhance their operations and offer better services to their customers. For example, the European Central Bank (ECB) and the Eurosystem have already adopted ISO 20022 for their Target2 payments system, and other central banks around the world are following suit. In the U.S., the Federal Reserve has also announced plans to adopt the standard for its Fedwire Funds Service. Challenges in the Transition to ISO 20022 Transitioning to ISO 20022 is not without its challenges. One of the major hurdles is the need for significant investment in upgrading legacy systems to support the new standard. Financial institutions must also train their staff to handle the new messaging format and develop new processes and procedures to accommodate it. Murray highlights that a common concern among financial institutions is the complexity involved in migrating from legacy systems to ISO 20022-compliant platforms. This transition requires not only a technical overhaul but also a cultural shift towards embracing data-centric operations. Additionally, there is the challenge of ensuring interoperability between different systems and markets. While ISO 20022 aims to standardize messaging across the financial world, there will still be a period where both old and new systems need to coexist, which could create temporary friction and inefficiencies. A Banker’s Perspective on ISO 20022 Murray, speaking from a major institution’s point of view, is optimistic about the future of ISO 20022 and believes that its adoption will bring long-term benefits to the financial industry. He views it as a critical step towards a more connected and efficient global financial system. “This is not just another compliance exercise; it’s a chance to rethink how we handle data,” he said. He also pointed out that while there will be short-term challenges, the industry must focus on the bigger picture – the potential for innovation, improved customer experience, and streamlined operations. ISO 20022 represents a significant evolution in the way financial data is exchanged and managed. It is not just a technical upgrade but a strategic opportunity for financial institutions to modernize their operations, enhance data quality, and better serve their customers. As our interviewee emphasized, the move to ISO 20022 is an essential step in future-proofing the financial system for the digital age. While the road to full adoption may be complex, the potential benefits – from increased efficiency and reduced costs to better compliance and more innovation – make ISO 20022 a game-changer for the global financial industry.…
Could this be the future of small business financing? After leading roles at Intuit and Square, Luke Voiles is shaking up the business financing space with exciting embedded capital platform Pipe. In this insightful interview, CEO Voiles speaks to Ali Paterson about Pipe’s embedded financial services product, aimed at bypassing traditional, cumbersome funding methods. We get his thoughts on the increase in sector specific software solutions and why he’s passionate about supporting small businesses. There’s some exciting plans in the ‘Pipe-line’ too. Hear about all this and more in this FF Virtual Arena profile. The funding evolution To explain what Pipe really offers we first need some context and Voiles helps with this. He goes through the evolution of funding for small and medium-sized businesses (SMBs), contrasting traditional methods with Pipe’s innovative approach. Traditionally, securing funding required businesses to present two years of audited financial statements and tax returns to banks, a process that was lengthy and required a proven history of consistent performance. This method, exemplified by SBA loans, made it difficult for newer or smaller businesses to access necessary capital, something he’s very passionate about, given his heritage. His dad was a small business owner himself, and this along with the experiences that many small businesses faced during the pandemic has been a big part of why he’s taken this role. We’ve seen numerous evolutions in funding since those days and more recently, companies like Square Capital, Stripe Capital, and PayPal Working Capital, have focused on single cash flow streams. By simplifying the problem to a narrow set of financial data, these companies could provide more streamlined and accessible funding solutions. According to Voiles, Pipe builds on this evolution by allowing any SaaS business to offer similar financial services to their customers, thereby democratizing access to capital. The changing business landscape Voiles also highlights a broader shift in how SMBs operate, noting that business owners no longer visit banks regularly. Instead many rely on specialized vertical software that addresses specific industry needs comprehensively. Examples include Slice for pizza shops and Boulevard for nail and hair salons, which offer end-to-end solutions tailored to their respective industries. Pipe has capitalised on this shift by embedding financial services within these vertical software solutions. This approach allows businesses to access necessary financial products without navigating complex regulatory and financial risks. It’s perfect timing, and a super nifty product. It’s designed to keep the balance sheet light, offloading risk by selling whole loans to capital markets. Voiles says this approach enables unlimited scaling potential. Pipe’s multi-draw line of credit is particularly attractive to SMBs, offering a security blanket that meets their needs without the onerous terms often found in traditional financing products. Future plans Of course, we want to know what’s next for this exciting company. Looking forward, Pipe will expand. In addition to its capital products, they’re developing a card product for micro-merchants, which will be a 30-day charge card powered by Pipe’s risk engine. This product aims to fill a gap in the market, as existing solutions like those from Capital One and Amex do not cater to micro-merchants due to the high perceived risk. Pipe’s approach leverages cash flow data from POS terminals, enabling it to extend credit without personal guarantees or FICO-based underwriting. Not only that but they also plan to introduce spend management and payroll services, fully embeddable within partner platforms. These additions will streamline expense management for SMBs, allowing them to focus more on their core operations. Of course AI gets a mention, as it often does these days, with Voiles hinting at a “moonshot” project involving an AI sidekick, which would automate business tasks and decision-making based on verticalized data sets. It’s a really interesting profile piece of a passionate fintech leader who is behind a product that could revolutionize the capital space and have a genuinely positive impact on small businesses. Be sure to watch more of our Virtual Arenas on our website.…
Building a bank for smaller businesses. In this fascinating episode of The Fintech Show, get an insight into how banks effectively serve SMEs today and in turn what those businesses are looking for from their bank. James Holian from NatWest , Niall Devlin from Bank of Ireland and Edgardo Torres-Caballero from Tuum discuss the advanced technologies and data analytics that are needed to meet the diverse needs of SMEs and how banks can get tooled up to leverage them. Of course, this has to be balanced with a human banking experience and our guests point out how essential this is to staying competitive in business banking. There’s thoughts on how SMEs adapt to the current economic climate and how partnerships and collaboration with fintechs are more prevalent than ever. It’s a must watch. Digital Transformation continues Digital transformation has had a seismic effect on modern banking already, but it’s always continuing. In this episode of The Fintech Show , Tuum CRO, Torres-Caballero, emphasises the necessity for financial institutions to make sure they’re ready for advanced technologies that meet the evolving needs of their customers. He highlights that embracing digital platforms is vital for launching services rapidly and meeting customer requirements. By integrating APIs, banks can improve onboarding processes and risk validation, while fintech partnerships can enhance the overall customer experience. He also points out that digital transformation allows banks to bolster their data analytics capabilities and explore the potentials of artificial intelligence. Moving away from a one-size-fits-all approach, this technology actually allows banks to better serve SMEs with differing needs. Modern, cloud-based technology is also essential for maintaining up-to-date, cost-effective systems that support sustainable growth and operational efficiency. The balance between humans and digital banking Both James Holian, the MD of Business Banking at NatWest, and Niall Devlin from Bank of Ireland discuss the diversity of small businesses and the necessity for banks to offer both digital and human support. Holian says that NatWest aims to be the number one bank for small businesses in the UK by combining the best technology, whether developed in-house or sourced externally, to create exceptional customer propositions. He makes the suggestion that banks today are essentially technology companies, with their products and services increasingly digitized and highlights NatWest’s commitment to providing dynamic, responsive services, facilitated by partnerships with various fintechs. Echoing Torres-Caballero’s thoughts above, this approach helps them leverage data to offer tailored financial advice and support for borrowing and growth, even amidst uncertain economic conditions. Devlin, the Head of Business Banking at Bank of Ireland, takes us back to the most important stakeholders in this relationship and reflects on the resilience of businesses in the face of challenges such as Brexit, COVID-19, and global political instability. He notes that the current high interest rate environment presents an opportunity for banks to help businesses maximise their liquidity. He also underscores the critical role of technology in enabling efficient and effective banking services, from simple transactions to complex applications. However, he does point out how important in-person services are, through branches and regional business centres. This dual approach ensures that Bank of Ireland can meet the needs of all customers, regardless of their technological proficiency. Interestingly, there’s also some thoughts about the bank’s efforts to support entrepreneurship through partnerships and educational initiatives. Balance is key it would seem! Tune in to find out more and be sure to catch more of our great flagship shows on our website .…
Reimagining digital asset custody for financial institutions’ customers. Secure custody could be the key to mainstream institutional adoption. That’s the topic of our latest FF Virtual Arena. This time around, Money20/20 Head of Content for Europe and the author of ‘Why DeFi Matters’, Ian Horne speaks to Alex Gatiragas, Director of Solution Experience at Giesecke+Devrient (G+D) to find out how the big players can balance open minded innovation, with building trust around digital assets. In this fascinating conversation, Horne asks what it will take to see mainstream adoption and Gatiragas provides an insight into the current landscape. G+D themselves are entering this sector with a new product – ConvegoⓇ TruSafe – specifically designed to “enable financial institutions to ensure retail investors navigate the digital asset landscape with confidence”. As for the future of this technology, we hear about the role digital wallets could play and some game changing use cases too. Be sure to check out our previous Virtual Arena, titled ‘ Digital Asset Use Cases Are Ready To Explode ’, in which we interviewed Gatiragas along with Sabih Behzad from Deutsche Bank and Teana Baker-Taylor from Crypto UK to find out more about this topic. This episode is the perfect follow on to that and shows how G+D continue to innovate in this area.…
Banking has been well and truly disrupted by the challengers. In this episode of The Fintech Show, we find out what’s changed and how institutions of all sizes can now differentiate themselves in an increasingly competitive market. Our stellar line up of industry experts includes Bianca Zwart from bunq, Peter-Jan Van De Venn from Hexaware and Arunan Tharmarajah from Wise. Together they discuss growing pressures from tech-savvy consumers, differentiation through innovation and the impact of regulatory changes. We get some real business cases and hear about the partnerships that are making transformation possible. Read on to find out more. Differentiating features In this episode of The Fintech Show, three industry experts delve into the primary drivers and implications of digital transformation in the banking sector. We were pleased to speak to Peter-Jan Van De Venn, VP Global Digital Banking at Hexaware (FKA Mobiquity), who emphasizes the critical role of customer demand in pushing banks to innovate. Hexaware are the experts when it comes to helping banks find ways of differentiating in a competitive market. Typically consumers’ expectations are shaped by their experiences with tech giants like Google and Facebook, and increasingly challenger bank offerings. Of course, many banking apps share common functionalities—referred to as “must-haves”— so as a result, he says banks should focus their budgets on the remaining 20% of features that can differentiate them in the market. This strategic allocation enables banks to innovate effectively and economically, ensuring they stand out while maintaining a solid business case. We were also delighted to speak to Bianca Zwart, Chief of Staff at bunq , the second largest neobank in Europe and a real trailblazer for customer centricity in the banking space. She discusses their mission to build a user-centric banking experience, something they’ve been focusing on since 2015. She interestingly points out that the traditional banking sector’s slow adaptation to user needs has opened the door for more agile, user-focused competitors. There’s no question that neobanking’s growth has been colossal and they’re gradually taking a greater market share . The rising demand for better, more adaptable banking solutions is forcing all players in the industry to innovate rapidly, fostering increased competition and diversity. Getting payments right is key We also spoke to Arunan Tharmarajah, Head of European Banking and Payments at Wise , one of the key players in making payments more accessible. They have both provided an innovative solution to a problem and are now helping more traditional institutions to innovate themselves. Tharmarajah gives us insights into how banks can address the challenges posed by the evolving financial landscape, particularly in cross-border payments. He goes on to explain that some banks prefer to partner with specialized firms like Wise for cross-border transactions, allowing them to focus on domestic services. Wise offers a solution that integrates with traditional banking infrastructure, ensuring seamless, low-cost international transactions. He also discusses the broader implications of regulatory changes, which are increasingly accommodating non-bank entities in the payment systems. This shift is expected to enhance competition, lower fees, and improve customer experiences globally. Tharmarajah emphasizes the need for banks to adopt a customer-centric approach, moving away from siloed, product-focused models to more holistic, technology-driven solutions that meet the diverse needs of modern consumers. All our speakers are very much in agreement that focusing on user-centric innovation, strategic partnerships, and efficient use of technology, will be key to banks survival in this competitive landscape. Finally the user comes first in banking. We hope you enjoy this episode and stay tuned for more coming soon.…
The Paytech Show is back and this time we’re looking at a partnership that perfectly captures what is possible with BaaS. In this episode we speak to Noah Sharp, CEO of Vodeno , and Neil Chandler, CEO of Aion Bank , to find out how Vodeno’s unique platform works alongside Aion Bank’s ECB license to enable non-financial companies to offer banking services without regulatory burdens. Below you’ll read more about their thoughts on where BaaS is heading and the potential for embedded banking to meet modern digital needs. The ultimate bank and technology combination In this episode we delve into the intricacies of Banking as a Service (BaaS) and the specific approach that our interviewees have taken. Sharp explains Vodeno’s unique positioning as a robust BaaS and embedded finance platform built entirely on the cloud and a private blockchain, where the ledger is managed by smart contracts. Not only that but their platform is complemented by Aion, a regulated bank based in Belgium, a tier-one regulatory jurisdiction, facilitating the distribution of regulated services and ensuring compliance. This combination allows Vodeno to serve both non-financial companies looking to offer financial services without becoming regulated entities and regulated firms needing specific solutions without the full regulatory burden. To explain more, Chandler emphasizes how important regulatory compliance is and points out that many BaaS providers face challenges because they underestimate the importance of regulation. Our guests avoid this pitfall by being intrinsically connected, with Aion Bank’s full banking license ensuring that regulatory obligations are taken seriously. Embedded banking is the future The show also addresses current issues in the payments industry, such as challenges around cross-border payments in continental Europe. Unlike the UK, where open banking and instant payment schemes like Faster Payments facilitate efficient domestic transactions, Europe struggles with varied API robustness and cross-border payment complexities. Companies must often adopt localized approaches to handle payments effectively, which complicates centralization efforts. Here, BaaS providers play a crucial role, offering more comprehensive financial services than simple payment service providers (PSPs), especially when deeper financial functionalities such as credit lending or deposit protection are required. Embedded banking, or embedded financing, is highlighted as a customer-centric approach, operating on a B2B2C model. This means the bank’s products are designed to meet the end customer’s needs, often delivered through retailers or marketplaces. For example, customers don’t want a Buy Now, Pay Later (BNPL) service for its own sake; they want the product it helps them acquire. Aion Bank and Vodeno understand this dynamic, focusing on providing digital experiences that align with customer desires. It’s an informative episode that also includes thoughts from Chandler on what the future holds for BaaS, so be sure to tune in above.…
In this episode of the Paytech Show, Grant Truter from BPC, Bruce Paveley from TymeBank, and Dieter Botha from Tyme Group, uncover a partnership that is revolutionising banking in areas like South Africa. We hear about the successful integration of digital and physical banking solutions and the implementation of BPC’s seamless card issuance. The story of TymeBank itself is also inspiring and shows incredible growth delivering services to an underserved population. In this great episode we hear about the factors that have made that happen from cloud scalability and collaboration. Driving financial inclusion with technology BPC Chief Commercial Officer, Grant Truter, talks about how their partnership with TymeBank allowed them to realise their vision of merging digital and in person banking experiences. Their omni-channel solution would include self-service channels for customers and allow them to build a digital bank from the ground up, with BPC providing the necessary technological backbone. It’s a classic case of a technology partner making a vision happen. Bruce Paveley, CTO of TymeBank, elaborates on their history and mission. From beginning as a money remittance service they evolved into a full-fledged banking platform about seven years ago. High banking fees have excluded many South Africans from financial services which is what they wanted to address. In a cash heavy society wanted to build trust in other forms of banking and payment, through reliable and always-available systems. This is where BPC’s SmartVista platform came in, along with the technical support they can offer. That’s not it however. We also get insight from Dieter Botha, Group CTO for Tyme , who provides a broader perspective on TymeBank’s operational strategy and future plans. TymeBank was their first bank and they’ve since developed another in the Philippines . Botha notes that TymeBank’s approach involves building and operating banks profitably, and after their current successes they’re now eyeing Vietnam for further expansion. Botha introduces the concept of “phygital,” combining physical and digital elements to enhance customer engagement. In South Africa, that means employing self-service kiosks in retail stores, allowing customers to open bank accounts and receive personalised Visa debit cards within minutes, facilitated by biometric verification. This model has been successful, with TymeBank issuing approximately 500,000 cards per month across its operations in South Africa and the Philippines. The interview is a perfect example of a partnership that has successfully blended advanced digital technologies with practical physical solutions to drive financial inclusion. In the areas they operate this is ground breaking. Tune in to find out more and see how this could be replicated elsewhere. If you would like to learn more about the BPC x TymeBank case study – read the full story here .…
Find out how fintech is changing the retail investment space. In this episode of the Fintech Show we’re joined by Boaz Yaari from Sharegain and Yorick Naeff from BUX for a fireside chat on the evolution of retail investing and the new revenue streams that banks can unlock. Together, they explore the changing landscape of retail investment, predict future trends like non-purpose lending, and we find out how their companies got started. There’s no denying the boom that retail investing has experienced in recent years, particularly in the wake of the pandemic . Now, many consumers are looking for ways to grow their wealth and take control of their savings and investment journey, rather than relying on banks to do that for them. US stock trading volumes saw an enormous spike in 2020 and 2021 due to the immense rise in retail investing. Even neobanks are adding investment products to their offering, with great interest. Monzo got 200,000 sign ups to their investment account waiting list in just two days. It’s in this context that both Yaari and Naeff started their companies. Both CEO/co-founders here reveal the stories that led them to where they are now. Boaz traces his path from FX derivatives trading to securities lending, recognising an untapped opportunity akin to Airbnb but for securities lending. Despite skepticism from others, Yaari’s pattern recognition and determination spurred him on to pursue Sharegain. On the other hand, Naeff’s background in financial services and tech converged when he observed the barriers hindering retail investors from entering the market. Collaborating with a colleague, they conceptualized BUX to democratize retail investing, leveraging the rise of mobile applications. Their shared vision aligned perfectly with the evolving market, particularly the increasing demand for accessible and intuitive investment platforms. The retail investment boom The conversation, which took place in our studio, delves into the dynamic shifts within the retail investing landscape. Our speakers emphasize the growing influence of private investors, particularly younger generations with a savings and investment-driven mindset. They predict a trend toward non-purpose lending, foreseeing a revolution in the lending space that could empower investors to leverage their portfolios for various financial needs. Highlighting the symbiotic relationship between Fintech and traditional financial firms, Yaari and Naeff stress the advantages of agility and expertise exchange. Yaari underscores Sharegain’s unique position in securities lending, while Naeff emphasizes BUX’s collaboration with industry giants like BlackRock to tailor investment packages for retail investors. Stick around until the end also, because they have great advice to offer aspiring founders also. That includes the importance of assembling the right team, focusing on long-term growth, and staying resilient amidst challenges. Yaari reflects on Sharegain’s pivot towards sustainability and profitability, a testament to the team’s adaptability and perseverance. Similarly, Naeff celebrates the creation of a new market for independent agency lending, underscoring the transformative power of innovation in overcoming market barriers. It’s a really exciting area that could present new revenue streams for banks . Tune in to find out more.…
The potential of digital assets for financial institutions is huge. No matter where you stand on crypto, CBDCs and DLT, there's no denying the space is moving fast. For our latest Virtual Arena, we gathered a panel of speakers including Sabih Behzad from Deutsche Bank, Alex Gatiragas from G+D, and Teana Baker-Taylor from Crypto UK to find out how financial institutions are getting on board and what this might mean for consumers. In this revealing discussion our expert speakers identify key areas of opportunity, the need for regulatory clarity and the importance of helping consumers with custody of their assets. ️ "We will be able to offer new products we can't even envisage today." ️ "The real innovation is happening in the open source space." ️ "We're starting to see more regulation for stable coins." Tune in for these great insights and more.…
In this episode of the Fintech Show we’re talking risk management and fraud prevention in the receivables finance sector. We speak to Ahmed Amin and Andrea Tanner from Lenvi , to find out about their work and how their software Riskfactor could hold the key to better processes in this area of finance. Risk management in banking is as big of a concern as ever, with liquidity under pressure from high interest rates and challenging economic conditions. In this video we hear about the market dynamics affecting lenders right now and what is needed to effectively manage a growing portfolio. There are also understandable concerns about fraud, something which poses a threat to any financial institution. The cost of fraud is huge, and according to this McKinsey report , “In 2022, the FTC reported that scams were up 49 percent from 2021, with consumers losing nearly $8.8 billion.” Nascent technology is also potentially exacerbating the issue, with AI driven fraud increasingly coming to the forefront. Our speakers are perfectly placed to discuss the issue, as Lenvi recently released their own report oAn being prepared for Fraud. Their 2023 European Fraud Readiness Report uncovered attitudes towards and concerns around Fraud in European Receivables Finance in particular. Some of the findings include almost 90% of respondents feeling that fraudulent activity has increased in the last year. 70% said fraud is a significant risk to their receivables finance business in particular. Most concerning is that almost one in three respondents believed their company detected no more than half of the attempts made to defraud their business. Alongside this research, Sales Director Amin and Head of Customer Success Tanner, bring decades of experience in financial services, banking and receivables finance to this insightful conversation. The discussion delves into Riskfactor’s functionality, highlighting its ability to leverage data from core operating platforms to detect changes in behaviour, indicative of fraud. By streamlining this whole process it means employees are better placed to take action and be more efficient. There’s also talk about how partnerships with third-party software vendors play a crucial role in expanding the reach of their software to global markets. We hear about their European expansion and the recent release of Version five, which boasts improved user interfaces and enhanced data functionality. Despite economic uncertainties and an uptick in fraud, there’s a lot of optimism here as a growing emphasis on automation and improving internal processes in receivables finance could change the game. Risk factor’s risk-based approach and ability to cater to diverse client segments, especially SMEs, position it as a valuable tool in navigating evolving market dynamics and managing portfolio growth efficiently. Riskfactor could play a pivotal role in your business and this video explains why. Watch to find out more.…
Introduced in July 2023, the FedNow service was launched for US banks to provide a new instant payments infrastructure across the country. Participating financial institutions can now give their customers the ability to send and receive money in seconds. In this latest installment of the Paytech Show, we have the privilege of hearing from industry experts who give us an insight into the impact it’s had. Anu Somani, Senior Vice President at U.S. Bank , Nick Botha representing AutoRek , and Minal Gupta from Star One Credit Union all explore the landscape of FedNow’s impact in the United States, shedding light on the critical factors banks must consider to unlock its full potential. According to some sources , FedNow has not been a resounding success, but its user base has undoubtedly grown significantly and the pioneering financial institutions we spoke to attest to it being a game changer. Our show above includes ‘real-time’ perspectives on this ever-evolving area of payments. Nick Botha draws attention to one key strength of FedNow: it has the backing of the Federal Reserve. With FedNow already operational in over 464 financial institutions across the US, Botha underscores the importance of this endorsement in instilling confidence and catalyzing adoption among banks and financial institutions nationwide. Minal Gupta and Anu Somani enrich the conversation with their firsthand experiences and observations of the new FedNow system. Star One Credit Union, where Gupta is SVP, have been vocal about their support of FedNow . Both these banking experts emphasize the critical role of streamlining reconciliation processes, highlighting its significance in ensuring operational efficiency and seamless integration of FedNow into existing banking infrastructures. Somani in particular stresses that payments transformation needs to be thought about holistically. Their insights offer valuable guidance for banks seeking to maximize the benefits of FedNow implementation. To add to this, Botha delves into the transformative potential of automation in optimizing banking processes and unlocking new revenue streams. It’s clear that liquidity is a major concern for anyone going on the journey of instant payments, and it’s here that automation plays a key role. It’s one of the reasons why AutoRek has been selected as part of the FedNow service provider showcase which has been put together to give these providers an opportunity to connect with institutions and banks looking to implement instant payment products into their offering. Join us as we delve deeper into the implications of FedNow for US banks, exploring strategies for success and navigating the complexities of this groundbreaking era in payment technology.…
In this episode of the Fintech Show we speak to Trevor Tannenbaum from the Cambridge Building Society , Michelle Yu and Jennifer Harris from Sandstone Technology and Tina Hughes from Yorkshire Building Society to find out how the future of building societies rely on embracing digital channels. Building societies have a promising future ahead where good customer service entails the use of effective digital channels. As shown by Nationwide’s recent moves to acquire Virgin Money , there’s plenty of potential for this breed of mutually owned financial institutions in the UK. The question is what technology do they need to move forward. In this episode of the Fintech Show we spoke to Trevor Tannenbaum from the Cambridge Building Society, Tina Hughes from Yorkshire Building Society and Michelle Yu and Jennifer Harris from Sandstone Technology to find out how building societies are embracing digital channels. Of course, digital transformation doesn’t always come easily and can be very costly. In the event that something goes wrong, and customers are affected, fines could be handed out, as TSB found out . So it’s understandable that some financial institutions are hesitant about going down this road. But it doesn’t have to be this way and there are numerous strategies for updating your services, without disrupting good customer service. Sandstone Technology are perfectly placed to explain how technology can be implemented into the banking and customer experience of those using building societies. In the video above, Sandstone CPO Yu, who we also spoke to in a recent virtual arena , emphasises the importance of digital channels for building societies to stay relevant, whilst Chief Customer Officer Harris explores the challenges they face in adopting new technology. Harris recognises that moving away from or adapting legacy technology is time consuming. However, as you’ll see, the benefits outweigh the concerns and technology providers like Sandstone ensure that whatever new products or channels you want to add, they integrate seamlessly with the existing stack. Multi-channel banking is the way forward No conversation on this topic would be complete without talking to building societies themselves. We were fortunate to speak to representatives from two of the UK’s premier institutions, Yorkshire Building Society and The Cambridge Building Society. In the episode, both Hughes from YBS and Tannenbaum from CBS reveal their respective organisation’s approaches to digital transformation and we hear some success stories that have come about through changes they’ve made. That includes Tannenbaum explaining how their mobile app has become their most popular channel for customers interacting with the bank. YBS, who now see 70% of new accounts opened online , are an organisation always striving to provide a good digital service, however there are also considerations to be made about striking a balance between in-person and online experiences. Hughes echoes some comments that Yu makes about making sure older demographics are not left behind and are given a good in-store experience that can serve their needs too. Ultimately, all our speakers agree that a multi-channel approach that integrates and offers the same level of experience across the board is needed.…
In this episode of the Fintech Show, we speak to Mike Kresse from FIS , Marc McCarthy from Kani Payments , Sabrina Tharani from Mastercard and West Richards from ATPC , to uncover the increasingly pivotal role partnerships play in navigating the evolving American payments industry. Kani Payments CCO McCarthy highlights their recent entry into the US, at a time where streamlining reconciliation couldn’t be more important and Kresse, an SVP at FIS, provides some insight into the impact of FedNow. We also hear from Mastercard SVP Tharani who heads up their Start Path programme, on how they’re committing to fostering partnerships with innovative companies like Kani to address key industry challenges. In Atlanta, West Richards, Executive Director of the American Transaction Processers Coalition (ATPC) sheds light on their mission to assist European companies navigating the complexities of the US market.…
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