Join the world’s largest InsurTech community hosting 13,000 Executives, Entrepreneurs and Investors each year…
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Insurtech Insights is the world’s largest insurance technology community. It offers unprecedented connection to the most comprehensive and global gathering of InsurTech entrepreneurs, investors, and insurance industry incumbents.
Over the course of two days at its conferences, the industry gathers to showcase the forefront of innovations and form the partnerships of tomorrow. The unparalleled networking experience, with thousands of meetings, is a staple at any Insurtech Insights event.
“The biggest feat was the sell out crow of 4,000. Seeing so many from across Europe and the US was just brilliant!”
Nigel Walsh, Managing Director – Insurance, Google
Gain insights from over 400 expert speakers include representatives from Zurich, Allianz, Lemonade, Zego and many more…
“Such a great event with such a great level of attendance”
Steven Zuanella, Group Chief Digital & Innovation Officer, Generali
Insights
Improve your knowledge on challenging and strategic issues relevant to any organisation. Stay on top of future trends and seize new opportunities. Expand your toolset and effectively solve the challenges of today and tomorrow.
Inspiration
Challenge your way of thinking with new perspectives. Expand your professional horizon by meeting with and listening to leading insurance experts. Equip yourself with ideas and knowledge that adds value to you, your team, and your organisation.
InsurTech Networking
Expand your network by meeting with 6,000+ executives, entrepreneurs and investors from all over the world. Create new opportunities leading to a stronger and more global network. Meet with and attract the talent of tomorrow.
Fouzi Husaini, Chief Technology & AI Officer at Marqeta, answers our questions about Agentic AI and its applications for businesses
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Agentic AI is emerging as the leading AI trend of 2025. Industry figures are hailing Agentic AI as the broadly transformative next step in GenAI development. The year so far has seen multiple businesses release new tools for a wide array of applications.
The technology combines the next generation of AI tech like large language models (LLMs) with more traditional capabilities like machine learning, automation, and enterprise orchestration. The end result could lead to a more autonomous version of AI: Agents. These agents can set their own goals, analyse data sets, and act with less human oversight than previous tools.
We spoke to Fouzi Husaini, Chief Technology & AI Officer at Marqeta about what sets Agentic AI apart whether the technology really is a leap forward in terms of solving AI’s shortcomings, and how Agentic AI could solve business problems.
1. What makes AI “agentic”? How is the technology different from something like Chat-GPT?
“Agentic refers to the type of Artificial Intelligence that can act as agents and on its own. Agentic AI leverages enhanced reasoning capabilities to solve problems without prompts or constant human supervision. It can carry out complex, multi-step tasks autonomously.
“GenAI and by extension Large Language Models, the most famous example being ChatGPT, require human input to solve tasks. For instance, ChatGPT needs user prompts before it can generate content. Then, sers need to input subsequent commands to edit and refine this. Agentic AI has the capability to react and learn without human intervention as it processes data and solves problems. This enables it to adapt and learn much faster than GenAI.”
2. Chat-GPT and other LLMs frequently produce results filled with factual errors, misrepresentations, and “hallucinations”, making them pretty unsuited to working without human supervision – let alone orchestrating important financial deals. What makes Agentic AI any better or more trustworthy?
“All types of AI have the possibility to ‘hallucinate’ and produce factually incorrect information. That being said, Agentic AI is usually less likely to suffer from significant hallucinations in comparison to GenAI.
“Agentic AI’s focus is specifically engineered to operate within clearly defined parameters and follow explicit workflows, making it particularly well-suited for having guardrails in place to keep it on task and from making errors. Its learning capabilities also allow it to recognise and adapt to its mistakes, ensuring it is unlikely to hallucinate multiple times.”
“On the other hand, GenAI occasionally generates factually incorrect content due to the quality of data provided, and sometimes because of mistakes in pattern recognition.”
“In fintech, Agentic AI technology can make it possible to analyse consumer spending data and learn from it, allowing for highly tailored financial offers and services that are more accurate and help to create a personalised finance experience for consumers.”
3. How could agentic AI deployments affect the relationship between financial services companies and their customers? What about their employees?
“The integration of Agentic AI into financial services benefits multiple parties. First,
integrating Agentic AI into their offerings allows financial service companies to provide their customers with bespoke tools and features. For instance, AI can be used to develop ‘predictive cards’. These cards can anticipate a consumer’s spending requirements based on their past behaviour. This means AI can adjust credit limits and offer tailored rewards automatically, creating a personalised experience for each individual.
“The status quo’s days are numbered as consumers crave tailor-made financial experiences. Agentic AI can allow fintechs to provide personalised financial services that help consumers and businesses make their money work better for them. With Agentic AI technology, fintechs can analyse consumer spending data and learn from it. This allows for more tailored financial offers and services.
“As for employees, Agentic AI gives them the ability to focus on more creative and interesting tasks. Agentic AI can handle more routine roles such as data entry and monitoring for fraud, automating repetitive tasks and autonomous decision making based on data. This helps to reduce human error and enables employees to focus more time and energy on the creative and strategic aspects of their roles while allowing AI to focus on more administrative tasks.”
4. How would agentic AI make financial services safer?
“Agentic AI has the capability to make financial services more secure for financial institutions and consumers alike, by bringing consistency and tireless vigilance to critical financial processes. With its ability to analyse vast strings of information, it can rapidly identify anomalies in spending data that indicate potential instances of fraud and can use its enhanced reasoning and ability to act without human prompts to quickly react to suspicious activity.
“While a human operator will be susceptible to decision fatigue, an AI agent could always be vigilant and maintain the same high level of precision and alertness 24/7. This is vital for fields like fraud detection, where a single missed signal could lead to significant consequences.
“Furthermore, its capability to learn without human interaction means that it can improve its ability to detect fraud over time. This gives it the ability to learn how to identify new types of fraud, helping it to adapt as schemes become more sophisticated over time.”
5. What kind of trajectory do you see the technology having over the next year to eighteen months?
“In fintech, Agentic AI integration will likely begin in the operations space. These areas manage complex, but well-defined, processes and are perfect for intelligent automation. For instance, customer call centres where human agents usually follow set standard operating procedures (SOPs) that can be fed into an AI system, which makes automation easier and faster than before.
“In the more distant future, I believe we will see Agentic AI integrated into automated workflows that span entire value chains, including tasks such as risk assessment, customer onboarding and account management.”
Philipp Buschmann, co-founder and CEO of AAZZUR, looks at the changing face of Embedded Finance and the rise of the API economy
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The business world is changing. If you are paying attention, you will notice one of the most exciting transformations happening right now is Embedded Finance. We hear a lot about APIs (Application Programming Interfaces) and how they power our digital lives. However, what’s really grabbing attention is the rise of the API economy. Specifically, people are excited about how embedded finance is reshaping how businesses interact with their customers.
So, what’s all the fuss about, and why should you care? Let’s dive in.
What is Embedded Finance Anyway?
At its core, Embedded Finance means integrating financial services into non-financial platforms. It allows companies to offer banking-like services – think payments, lending, and insurance – directly within their apps or websites, without needing to be a bank themselves.
It’s like how Uber lets you pay for your ride without ever leaving the app. Uber isn’t a bank, but through embedded finance, it can offer seamless payment options, providing an effortless user experience. The user doesn’t need to think about the financial side of things; it just happens in the background. And that’s the magic of embedded finance – it’s smooth, simple, and frictionless.
APIs: The Backbone of Seamless Integration
APIs (Application Programming Interfaces) are the unsung heroes enabling the smooth interaction between different software systems. They allow platforms to communicate and share data effortlessly, acting as bridges between various services. For instance, when companies like Airbnb incorporate payment processing, they rely on APIs to connect with third-party providers like Stripe or PayPal. Without these connections, seamless financial interactions would not be impossible.
In the past, businesses that wanted to offer financial services had to build out much of the infrastructure themselves. However, with the rise of the API economy, this complexity has been drastically reduced. Companies can now integrate ready-made financial services quickly and focus on their core offerings.
However, while APIs handle much of the heavy lifting, they aren’t the whole solution. They still need to be connected to the devices or systems using them. This involves stitching them together through a middle layer that coordinates the various API functions, along with coding a front-end interface that users interact with.
In essence, APIs provide the building blocks, but there’s still a need for a tailored architecture to ensure everything operates smoothly – from the back-end infrastructure to the user-friendly front end. This layered approach ensures businesses can offer a seamless experience without getting bogged down by technical complexities.
Why the API Economy is Booming
The API economy is booming because it allows businesses to be more agile, innovative, and customer-centric. APIs give companies the flexibility to offer services they wouldn’t have been able to in the past. A clothing retailer can offer point-of-sale (POS) financing without becoming a bank, or a fitness app can offer health insurance with the click of a button.
Think about Klarna, a company that’s become a household name by offering “buy now, pay later” services. Klarna partners with thousands of retailers, allowing them to provide flexible payment options directly within their checkout process. The retailer doesn’t have to worry about the complexities of lending—it’s all handled by Klarna’s Embedded Finance platform through APIs.
This creates a win-win situation: customers get more flexible payment options, and retailers can drive conversions without any of the financial headaches.
How Embedded Finance is Connecting Customers to the World
Embedded Finance is all about breaking down barriers between industries and creating better, more holistic experiences for customers. And it’s not just about payments—it extends to lending, insurance, and even investments.
Take Revolut, the digital bank that started as a foreign exchange app but now offers everything from insurance to cryptocurrency trading. By using APIs to embed these financial services into their platform, Revolut has transformed into an all-in-one financial hub. Customers don’t need to visit different apps or websites for banking, insurance, or investments – they can do it all within Revolut.
The world of e-commerce has certainly embraced the world of embedded finance, Shopify, the e-commerce platform, has built it directly into its ecosystem. Through its Shopify Capital programme, the company offers its merchants quick access to business loans. This seamless integration is made possible by APIs, allowing Shopify to assess a merchant’s financial data and offer lending without the need for the merchant to seek out external financing. It’s fast, convenient, and keeps businesses within the Shopify ecosystem, further strengthening customer loyalty.
A New Level of Personalisation
This is more than just making payments easier – it’s about giving customers a more personalised, seamless experience. By tapping into financial data, businesses can offer products and services that really hit the mark for each individual.
Take travel apps like Skyscanner, for example. They’ve made things super convenient by embedding travel insurance right into the booking process, so, when you’re booking a flight, you can easily add travel insurance without even leaving the app. It’s all about creating a one-stop shop that gives you exactly what you need, right when you need it.
The Future
The API economy, particularly in the realm of Embedded Finance, is just getting started. Over the next few years, we can expect to see more industries leveraging this technology to enhance their offerings and create richer customer experiences. Everything from health tech to real estate is ripe for disruption.
However, it’s not just about jumping on the bandwagon. Companies need to be strategic about how they implement embedded finance. It’s not a one-size-fits-all solution, and it’s crucial to understand how these services align with your business goals and customer needs.
The rise of the API economy and embedded finance is opening up new doors for businesses and customers alike. By embedding financial services into non-financial platforms, companies are not only streamlining operations but also creating more value for their customers.
Embedded Finance is already making waves across industries, from retail to tech, and the businesses that are brave enough to embrace it are positioning themselves at the cutting edge of this transformation. For customers, it’s opening the door to a world that’s more connected, convenient, and tailored to their needs. It’s not about whether embedded finance will change the way we do business – it’s about how quickly it’s happening, and which companies are ready to step up and lead the charge.
So, whether you’re running an e-commerce business, developing a tech platform, or simply thinking about how to better serve your customers, it’s time to consider how embedded finance can connect your customers to the world in ways you never thought possible.
Meet, greet, and learn from fellow IT professionals at VISIONS CIO + CISO Leadership Summit on the 28th to the 30th of April 2025. At the Allianz Stadium in London, you’ll discover the newest solutions and strategies on the market, while making meaningful connections with your peers.
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Over the course of the VISIONS event, attendees will have access to over 30 presentations and eight different sessions, as well as panels involving numerous expert speakers, and peer-to-peer roundtables.
Interface Magazine is thrilled to announce that our magazine is a media partner of VISIONS UK! For the CIO + CISO Leadership Summit, VISIONS is offering a VIP code for our readership. Secure your free pass here and use the code INTF-VIP for the full VIP experience!
Taking the challenge out of change
The pressure to modernise is at an all-time high, but the VISIONS CIO + CISO Leadership Summit provides a welcoming and informative atmosphere for you to learn about updating your systems, tackling cybersecurity threats, and building AI strategies.
The event is reserved for executives, and aims to support your professional and departmental goals across the board. The programme is tailored to enlighten, educate, and support CIOs and CISOs in their technology journeys.
Agenda
Eight sessions
30+ presentations
30+ speakers across panels, fireside chats and peer-to-peer roundtables
Alongside your free pass, use the VIP code INTF-VIP to also gain access to the following:
Complimentary accommodation for one night
On-site food and drinks provided
Multiple networking receptions with open bar
Travel reimbursement
Designed to address your challenges
This event aims to put an end to the usual wandering around the exhibition hall in order to find the information you want. During registration, you’ll have the chance to explain the current challenges you’re facing in business, and Visions will do the hard work in arranging meetings with a tailored set of solutions providers. You’ll be connected directly with the people who can help, in a bespoke, no-pressure environment.
Register today! Click here to book, and use our unique media partner code for VIP treatment: INTF-VIP
The UK-Australia Insurtech Pathway has been introduced as a joint effort to support insurance technology firms seeking expansion opportunities in…
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The UK-Australia Insurtech Pathway has been introduced as a joint effort to support insurance technology firms seeking expansion opportunities in both markets.
The programme was launched in Australia on 18 February 2025, while a launch event is scheduled in the UK on 20 March 2025.
It has been developed through a partnership between the UK’s Department for Business and Trade (DBT), Insurtech UK, and Insurtech Australia. The initiative is designed to help Insurtech companies navigate regulatory frameworks, establish business operations and connect with investors and industry stakeholders.
InsurTech Pathway
The pathway will offer structured support to selected firms looking to enter either market, addressing key challenges related to compliance, business development, and market integration.
The UK and Australia both have well-established insurance sectors that encourage innovation through regulatory structures and technology adoption.
The Insurtech Pathway aims to lower entry barriers for firms by providing targeted guidance and fostering industry collaboration.
The initiative builds on the UK-Australia Free Trade Agreement (FTA), which took effect on May 31, 2023. The agreement is intended to reduce trade restrictions and facilitate easier market entry for businesses, including through streamlined visa pathways, expanded access to government procurement, and lower investment barriers.
Facilitating cross-border market access
Louise Cantillon, Deputy Trade Commissioner for Australia and New Zealand, said the initiative reflects both regions’ commitment to strengthening trade ties in financial services and technology:
“By working together, we can unlock new opportunities for insurtech companies in both markets, driving innovation and supporting job creation.”
Insurtech UK CEO Melissa Collett said the initiative aligns with UK firms’ interest in the Australian market:
“Insurtechs consistently feedback to us on their appetite for the Australian market due to its strong insurance industry, wide-spread insurance uptake and anglophone ties.”
Simone Dossetor, CEO of Insurtech Australia, further highlighted the pathway’s benefits:
“The UK is the top-rated market for global expansion for our insurtech members and with Australia being the fourth largest market for Lloyd’s there are strong synergies between the two regions.”
The program will provide tailored support, including regulatory and compliance guidance, networking with insurers and investors, trade delegations, and engagement with key regulatory authorities to streamline market entry.
EY Insurance Leaders: Isabelle Santenac (Global), Jeff Gill (Americas), Anita Sun-Young Bong (Asia-Pacific) & Philip Vermeulen (EMEIA)
Published
7 March 2025
Estimated Read time
6Mins
EY Insurance Leaders Isabelle Santenac (Global), Jeff Gill (Americas), Anita Sun-Young Bong (Asia-Pacific) & Philip Vermeulen (EMEIA) present EY’s Global Insurance Outlook 2025 report. Learn how insurers can embrace InsurTech to accelerate value creation from gaps to gains
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Even as shifting global dynamics challenge insurers, EY’s 2025 Global Insurance Outlook Report shows there have never been more viable paths to innovation-led growth across the industry. Indeed, the huge gaps in protections against cyber and climate threats – with 99% of losses from cyberattacks and 60% from natural disasters uninsured – plus the massive shortfall in retirement savings present compelling value creation opportunities. Strategically orienting the enterprise around richer data and fully modernised technology is one critical step.
Uninsured Losses
99% of losses from cyber-attacks are uninsured
60% of losses from natural catastrophes are uninsured
But whether insurers prioritise new product development, M&A or geographic expansion in their growth strategies, a few key actions can unlock growth through innovation.
1. Design purposeful products
The biggest protection gaps – retirement savings and climate- are poised to get even bigger. The global retirement savings gap is set to grow from US$106 trillion in 2022 to US$483 trillion in 2025. Thanks to longer lifespans and aging populations worldwide, there is greater need for products that deliver income for older citizens. That’s how insurers can promote financial security across society.
The “silver tsunami” – the huge demographic wave of Baby Boomers reaching retirement age – will cause a spike in demand for financial estate planning services as well as life and health insurance augmented with wellness programs. In the US alone, those aged 65 and over will grow from 58 million in 2023 to 82 million in 2050. Leading insurers will need to position themselves for the coming transfer of assets by demonstrating clear value propositions.
Global Retirement Savings Gaps
$106t in 2022
$403t projected gap in 2050
Purpose can also provide the motivation to deliver climate solutions with more robust coverages and tailored prevention services for the huge populations – over 40% worldwide, according to Geneva Association – that live in high-risk areas. Strengthening climate protections necessitates rethinking traditional approaches to risk management, pricing and claims modelling. Purpose can also fuel positive collaborations and partnerships with governments and other stakeholders, an important step given the increasing likelihood of new government mandates.
US Citizens Aged 65+
58m in 2023
82m in 2025 (projected)
2. Personalise offerings to expand share of wallet
Usage-based products, modular add-on features and tailored pricing demonstrate to consumers that you are committed to serving their unique needs – a proven way to promote loyalty and engagement. Artificial intelligence (AI) tools can help in this area with tailored messaging, more accurate pricing and faster underwriting and binding processes.
On-demand coverage and real-time risk prevention are other ways that personalisation strategies can add value. AI and advanced analytics can also target the highest-potential customers for product bundles and other offerings that maximise customer value.
Technology Boost
10-25% increase in operating profits for insurers with successful data and analytics strategies
35% increase in employees’ underwriting capacity from generative AI (GenAI)-enabled automation
3. Seek innovation at scale
With a lean and highly automated operating environment, insurers can look to scale low-margin products to new segments via partners and ecosystems and other channels. The rapid expansion of embedded offerings demonstrates what’s possible.
Parametric insurance – policies that pay out when specific events occur – expands the type of attractive products insurers can deliver to new customers and is expected to grow to US$29.3 billion by 2031. Parametric solutions have gained traction in the agricultural industry and as protection against natural disasters, but can also be applied to business interruptions, supply chain disruptions and cyber-attacks.
Parametric Insurance Market Size
$11.7b in 2021
$29.3b in 2023
4. Use regulation as a prompt to innovate
The combination of more and more stringent rules in Europe and softening oversight in the US may create an unbalanced competitive playing field, with 61% of insurers cite evolving regulatory requirements as the top operational challenge for the year ahead. But firms that go beyond a minimalist, check-the-box approach may generate business value from their compliance programs.
Consider how the EU Financial Data Access (FiDA) legislation, slated to be enacted in 2025, paves the way for consent-based data sharing across pension, savings and nonlife insurance companies and products. That’s an invitation for firms seeking to expand their offerings. Similarly, the opportunity to participate in government pension schemes requires insurers to enhance their ability to share data securely and seamlessly. The Danish Compromise is reshaping the competitive landscape by creating new opportunities in bancassurance channels in Europe. Lastly, more detailed disclosure and reporting standards should prompt more automation and integration of data flows.
Regulation Prep
61% of insurers cite evolving regulatory requirements as the top operational challenge for the year ahead
5. Embrace a unified data strategy for the entire enterprise
Success in the digital age demands that every business have a unified data strategy – one that is comprehensive and led by the C-suite. Because better data underpins every aspect of the business and is crucial to innovation, the data and technology agenda must be driven by the CEO, rather than the IT team. Further, strategic planning and resource allocations – basically any and all senior management decisions – should be redesigned to reflect the richer data sets executives now have at their disposal.
A data strategy must reflect the need to harness the power of AI and other advanced technologies and define the necessary components of a flexible, future-ready data infrastructure. It will also need to establish appropriately robust governance models and controls environments for fully automated processes to ensure quality and build trust.
6. Commit to serving the underserved
What industry wouldn’t like to find tens of millions of new customers? For insurers, devising new solutions (e.g., micro coverages, starter policies) for just 1% of the estimated 4 billion underserved people worldwide could result in 40 million new customers, according to research from Forrester. Here again, it’s all about purpose – delivering protections to the people who need them most.
New products – more affordable, easier to buy and modify – hold the key. Parametric policies, microinsurance for smaller farmers and precise coverages for small businesses and gig workers are just a few of the ways to create value for underserved segments. Carriers in some emerging markets offer health and life insurance for as little as $0.20 per month. It will take bold strategic thinking and creative action to deliver what these customers want (and can afford), but the underserved (who contribute to the lion’s share of the worldwide protection gap) offer the biggest potential for insurers to sustain their solid bottom-line performance.
Serving the Underserved
40m projected new customers from engaging just 1% of the 4 billion uninsured, low-income people worldwide
Summary
Volatility and uncertainty – both within individual markets and across regions – define the global insurance industry to an extent not seen in decades. The run of economic prosperity and integration that benefitted the financial services sector for several decades seems gone forever. But insurers are uniquely qualified to create value during periods of instability. Those that target investments in AI-enabled tech and stronger data management capabilities to personalise communications and products will be able to create more value, create it faster and deliver it to more customers and communities than ever before.
Our maiden cover story follows the irresistible global rise of Revolut and the customer-focused growth agenda for the leading global…
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Our maiden cover story follows the irresistible global rise of Revolut and the customer-focused growth agenda for the leading global financial technology company.
Our cover story follows the irresistible global rise of Revolut. We hear from its Australia & NZ CEO Matt Baxby about the customer-focused growth agenda for the leading global financial technology company. “Traditional banks are great at putting their head in the clouds around strategy and what the vision for the future looks like. Where they really fail is translating that to what needs to happen in the next quarter to begin to realise that vision. And that’s where Revolut’s strengths lie, with a real orientation to action.”
ClearBank: A new era in Financial Services
We speak with ClearBank’s UK CEO, Emma Hagan, about how the digital bank is disrupting the market to deliver regulated banking infrastructure – at speed. “We are not encumbered by legacy platforms, systems or technology and don’t have to battle outdated processes. Everything was built new based on what our clients need from an infrastructure-type bank in the market.”
NatWest: Banking open for all
Head of Group Payment Strategy, Lee McNabb, explains how a customer-centric vision, allied with a culture of innovation, is positioning NatWest at the heart of UK plc’s Open Banking revolution: “The market we live in is largely digital, but we have to be where customers are and meet their needs where they want them to be met. That could be in physical locations, through our app, or that could be leveraging the data we have to give them better bespoke insights. The important thing is balance… At NatWest, we’ll keep pushing the envelope on payments for a clear view of the bigger picture with banking that’s open for everyone.”
EBRD: People, Purpose & Technology
We speak with the European Bank for Reconstruction & Development’s Managing Director for Information Technology, Subhash Chandra Jose. With the help of Hexaware’s innovation, his team are delivering a transformation programme to support the bank’s global investment efforts: “The sweet spot for EBRD is a triangular union of purpose, people, and technology all coming together. This gives me energy to do something innovative every day to positively impact my team and our work for the organisation across our countries of operation. Ultimately, if we don’t get the technology basics right, we can’t best utilise the funds we have to make a real difference across the bank’s global efforts.”
Innovation Group: Enabling the future of Insurance
“What we’ve achieved at Innovation Group is truly disruptive,” reflects Group Chief Technology Officer James Coggin. “Our acquisition by one of the world’s largest insurance companies validated the strategy we pursued with our Gateway platform. We put the platform at the heart of an ecosystem of insurers, service providers and their customers. It has proved to be a powerful approach.”
OSB Group: Building the bank of the future
Group Chief Transformation Officer Matt Baillie talks to Interface about maintaining the soul of a FinTech with the gravitas of a FTSE business during a full stack tech transformation at OSB Group. “We’ve found the balance between making sure we maintain regulatory compliance and keeping up with customer expectations while making the required propositional changes to keep pace with markets on our existing savings and lending platforms.”
Begbies Traynor Group: A strategic approach to digital transformation
We learn how Begbies Traynor Group is taking a strategic approach to digital transformation… Group CIO Andy Harper talks to Interface about building cultural consensus, innovation, addressing tech debt and scaling with AI: “My approach to IT leadership involves creating enough headroom to handle transformation while keeping the lights on.”
MoneyLIVE Summit is coming to London’s Business Design Centre March 10-11. Book your tickets now!
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Hosted in the FinTech capital of the world, MoneyLIVE Summit is the global payments and banking event bringing together industry leaders at the top of their game. This is where ground-breaking partnerships are forged, where innovation is accelerated and where the brightest ideas are born.
MoneyLIVE Summit sets the agenda for the future of banking and payments
For over 30 years, MoneyLIVE has brought together the movers and shakers of the banking and payments industry. Through impactful conferences, webinars, reports, roundtables and digital content.
Join 1500+ attendees and hear from 200 expert speakers across five stages. Revolut’s UK CEO Dr Francesca Carlesi, Lloyds Banking Group COO Ron van Kemenade, Standard Chartered UK CEO Saif Malik, ABN-AMRO’s CDO Jorissa Neutelings and Groupe Crédit Agricole Group COO Philippe Coue are among the baking leaders sharing insights across Payments Infrastructure, Digital ID, AI & Operations, CX, Digital currencies and Blockchain, Open Banking and much more.
“An unmissable event for those serious about banking and payments transformation.” Global Head of Strategy & Innovation, ING
Startup City
Welcome to Startup City, the innovation epicentre of MoneyLIVE Summit 2025. This designated hub is designed to accelerate start-up and scale-up growth, featuring a dynamic stage, exclusive networking zone, and high-impact deal booths.
If you’re on the hunt for funding, seeking scaleup opportunities, or looking to forge distribution partnerships, you’ve found your ultimate arena.
Tech Show London is coming to Excel March 12-13. Register for your free ticket now!
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Unlock unparalleled value with a single ticket that gets you free access to five industry-leading technology shows. Welcome to Cloud & AI Infrastructure, DevOps Live, Cloud & Cyber Security Expo, Big Data & AI World, and Data Centre World.
Tech Show London has it all. Don’t miss this immersive journey into the latest trends and innovations.
Discover tomorrow’s tech today
Unleash Potential, Embrace the Future. Hear from the greatest tech minds, all in one place.
Dive into a world where cutting-edge ideas shape your tomorrow. Tech Show London is the epicentre of technology innovation in London and beyond, hosting the brightest minds in technology, AI, cyber security, DevOps, and cloud all under one roof.
The Mainstage Theatre is not just a stage; it’s a launchpad for innovative ideas. Witness a stellar lineup featuring world-renowned experts from across the tech stack, influential C-level executives, key government figures, and the vanguards of AI and cybersecurity. All ready to share ideas set to rock the industry.
GLOBAL INSPIRATION, LOCAL IMPACT
Seize the opportunity to be inspired by global visionaries. Furthermore, with speakers from the UK, USA, and beyond, prepare to be inspired by transformative concepts and actionable strategies from technology insiders, ensuring your business stays ahead in an ever-evolving technology landscape.
Where the future of technology takes the stage
Secure your competitive edge at Tech Show London, the UK’s award-winning convergence of the industry’s brightest tech minds.
On 12-13 March 2025, gain vital foresight into the disruptive technologies reshaping your market, and position your organisation at the forefront of technology’s next frontier.
If you’re defining your business’s tech roadmap, register for your free ticket to join us at Excel London.
Brendan Thorpe, Customer Success Manager at Auriga, on how banks can gain valuable insights from ATM data
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Everyday customer interactions with ATMs or ASSTs to withdraw cash or check their account means these touchpoints emit hundreds of thousands of data points per day. This data holds the answers to how customers interact with those end points and how they are performing. However, currently this data is not being fully analysed or harnessed at all.
Data Analytics
This is surprising when you consider how better data analytics is widely understood to be crucial to enable banks to stay ahead of the competition. Indeed, one major study found that nearly half (48 percent) of banking executives globally agreed on this. However, many do little with it. The data which is harvested from the self-service banking network, including ATMs and ASSTs, is a critical way for banks to lower their operational costs. At the same time it can improve their offerings and increase their bottom line.
Real-time data collection and analysis is more than just critical for managing operational costs. It also plays a significant role in how banks realise their omnichannel ambitions to improve customer engagement and experience. For this to be successful, banks must leverage tools which provide actionable insights into performance across a number of channels including in-person services, ATMs, online and apps. The insights which are collected on these channels provide a complete and integrated picture of banking performance across all touchpoints.
Actionable Insights from Data
No matter how a customer interacts with the bank, every touchpoint provides large amounts of data which can be collected, sorted, and analysed for actionable insights. However, taking this information from raw data and transforming it into valuable insights is a challenge for many financial services organisations.
To do this, it involves strong data management and analytics processes and end-to-end mapping of all self-service banking channels, in-person and online. Real-time insights are also key to understanding how the network is performing and how customers are interacting with the endpoints. Importantly, this information must be easily accessed throughout the organisation. Doing this will enable the bank to identify if there are any inefficiencies or issues throughout the network which can be fixed swiftly, with minimal disruption to services.
Significantly, with real-time monitoring, banks can see any attacks on their services or endpoints from threat actors. The sensors are not only on the ATM. Those around the machines will be able to collect any interactions with the endpoints and in the surrounding area. For the most part, the sensors will pick up harmless interactions, but other times this may be an indicator that a threat actor was trying to take money out of the machine. As such, collecting, sorting, and analysing real-time data from the sensors can protect the bank and their customers and mitigate any harmful threats.
Furthermore, predictive analytics and continuous monitoring will enable banks to forecast the future performance of each touchpoint. Banks are able to apply specific parameters. Depending on their current business objectives they can better understand how each service channel is forecasted to perform in a specific situation.
How advanced analytics is transforming banking
As budgets tighten with rising costs, banks need to approach their ATM networks in a smarter way to optimise cash management and data forecasting. Real-time data tracking gives banks a greater understanding into customer behaviour. This is key to service performance improvements, including knowing in real time whether the ATM self-service interface is working or not. However, banks must get their data right, before they lean on the insights.
From real-time monitoring of customer interactions, financial services institutions can collect data based on the transaction flow, which can indicate if there is a better way for customers to complete their transaction. This will allow banks to see where network inefficiencies lie and then drive a culture of continuous improvement. The ATM is a vital touchpoint for a full omnichannel service, so banks leveraging data in the right way will ensure that the endpoint and the network are more user friendly.
Moreover, real-time tracking will also enable banks to predict when cash cartridges need to be replenished. As such, this will ensure there is enough cash in the machines for customers, and be able to better forecast how much cash the endpoint will need. This creates efficiencies around how banks deliver cash to the machines that need it. It reduces their Cash-In-Transit (CIT), security, interest and insurance costs.
Digital Transformation
To make sure that banks are making the most out of the data, they should leverage a dynamic, industry-specific banking business analytics platform. This should be available to all in the business and be able to seamlessly integrate into their current systems. The platform must collect and analyse the data in real-time from all key touchpoints in a bank’s network. Importantly, this data should be converted into usable insights for customer behaviour and performance metrics for the ATM. This will enable banks to adapt their offerings to changes in customer needs and market conditions. This will place banks on the front foot so they can focus investment in the up-and-coming areas.
The banking industry shows no signs of slowing down when it comes to digital transformation and development. The key here is to understand how all service channels, in-person and online, are performing to ensure customer demands are met. The way to do this is through leveraging real-time insights and data analytics. Financial services organisations must transform their approach to self-service banking strategies as data analytics is not only a driver of competitiveness, but also of long-term success.
Parag Pawar, Partner – Banking & Financial Services, on how Hexaware’s services and platforms can streamline any transformation journey
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Parag and his team at Hexaware have been working closely with the European Bank for Reconstruction & Development (EBRD) on a digital transformation program focused on the bank’s Compass ERP program.
This ongoing collaboration is set to scale to meet EBRD’s future needs says Parag: “Hexaware’s strategy is based on building and deploying AI-infused technology platforms. With our talented and passionate workforce, we are uniquely positioned to enable transformation.”
Why Hexaware?
With 32,000+ professionals across Asia Pacific, Europe, and the Americas, Hexaware—backed by The Carlyle Group—delivers a blend of deep domain expertise and transformative technologies.
Its proprietary platforms help address the unique challenges of financial services and FinTech:
RapidX™: Accelerates software engineering and code analysis, enabling legacy modernization and faster time-to-market.
Amaze®: This platform simplifies cloud migrations and helps customers streamline their cloud operations and leverage the potential of AI.
Tensai®: Drives automation, streamlining workflows and enhancing operational efficiency.
But technology is just part of the equation – expertise drives transformation. From modernising legacy systems to deploying intelligent automation, Hexaware’s tailored approach helps ensure that solutions align with your business goals.
Hexaware strives for a record of delivering scalable growth, reducing costs, and elevating customer experiences. Whether you’re an established financial leader or an emerging FinTech innovator, Hexaware looks forward to be your partner for thriving in the digital era.
Hexaware: Shaping the future of financial services, one solution at a time
“A CIO will only be as successful as the team and the partnerships they build around them. It’s why we chose Hexaware as the strategic partner for our Compass program, EBRD’s ERP transformation. Having the right partner to work closely with us is key to any successful change journey within an IT organisation. You can’t run a bank at the scale of EBRD without this type of partnership. The nuances required, the skill they’re offering along with the design thinking and innovation they’re able to bring to the table in a short space of time is truly impressive. We’re counting on Hexaware to continue making a big impact.”
Subhash Chandra Jose, Managing Director for Information Technology, EBRD
Click here to read more about EBRD’s journey towards delivering a transformation programme to support the bank’s global investment efforts
Head of Group Payment Strategy, Lee McNabb, explains how a customer-centric vision, allied with a culture of innovation, is positioning NatWest at the heart of UK plc’s Open Banking revolution: “The market we live in is largely digital, but we have to be where customers are and meet their needs where they want them to be met. That could be in physical locations, through our app, or that could be leveraging the data we have to give them better bespoke insights. The important thing is balance… At NatWest, we’ll keep pushing the envelope on payments for a clear view of the bigger picture with banking that’s open for everyone.”
EBRD: People, Purpose & Technology
We speak with the European Bank for Reconstruction & Development’s Managing Director for Information Technology, Subhash Chandra Jose. With the help of Hexaware’s innovation, his team are delivering a transformation programme to support the bank’s global investment efforts: “The sweet spot for EBRD is a triangular union of purpose, people, and technology all coming together. This gives me energy to do something innovative every day to positively impact my team and our work for the organisation across our countries of operation. Ultimately, if we don’t get the technology basics right, we can’t best utilise the funds we have to make a real difference across the bank’s global efforts.”
Begbies Traynor Group: A strategic approach to digital transformation
We learn how Begbies Traynor Group is taking a strategic approach to digital transformation… Group CIO Andy Harper talks to Interface about building cultural consensus, innovation, addressing tech debt and scaling with AI: “My approach to IT leadership involves creating enough headroom to handle transformation while keeping the lights on.”
University of Cinicinnati: Where innovation comes to life
Bharath Prabhakaran, Chief Digital Officer and Vice President at the University of Cincinnati (UC), on technology, innovation and impact, and how a passion for education underpins his team’s work. “The foundation of any digital transformation in my opinion is people, process, technology – in that order,” he states. “People and culture are always the most challenging areas to evolve because you’re changing mindset and behaviour; process comes a close second as in most organisations people are wedded to legacy ways of working. In some respects, technology is the easy part, you always implement the tools but they’ll not be effective if you don’t have the right people and processes.”
IT: A personal career retrospective
It’s fascinating, looking back at something as complex and profoundly impactful as IT. And for Claudé Zamboni, who is preparing to retire after over 40 years in the sector, it’s been an incredible time to be deeply involved in technology. “There have been monumental changes from when I first entered IT, where it was basically a black box,” says Zamboni. “People didn’t know what the IT team was doing, and those in IT would just handle problems without telling anyone how. It only started to become more egalitarian when the internet got more pervasive. We realised that with information being available everywhere, we would lose the centralisation function of IT. But that was okay, because data is universal.”
Luke Kyohere, Group Chief Product and Innovation Officer at Onafriq, on payments innovations to look out for this year
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The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1.The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. At OnAfriq, we are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use Blockchain. The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI. Therefore, many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent. When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payments platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms. These integrate multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble. As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Aviva, one of the UK’s leading insurance, wealth and retirement businesses, has chosen AutoRek, a leader in automated reconciliations, as its…
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Aviva, one of the UK’s leading insurance, wealth and retirement businesses, has chosen AutoRek, a leader in automated reconciliations, as its reconciliation and CASS tool.
The collaboration will ensure greater efficiency and compliance through automation. Aviva will leverage AutoRek’s end-to-end platform to implement a fully audited, rules-driven reconciliation process, ensuring complete transparency for CASS auditors and internal stakeholders.
With AutoRek, Aviva will gain an improved automated solution for client money and regulatory reporting, reducing the manual effort and inherent risk associated with manual processing.
This new capability will enable Aviva to reduce operational inefficiencies, streamline compliance, and enhance overall financial control.
“Aviva is dedicated to investing in technology to further our growth strategy. Following an extensive tender process, we were highly impressed with the quality of the AutoRek tool. The implementation of the AutoRek solution will streamline our processes and allows us to confidently address future scalability and volume requirements.”
Chris Golland, Head of CASS & Middle Office, Aviva
“We’re thrilled to onboard Aviva as a client to the AutoRek platform, empowering them to achieve greater efficiency and accuracy in their operations. Together, we’re driving innovation and setting new benchmarks for financial excellence.”
Nick Botha, Payments Lead at AutoRek, on meeting customer expectations for faster, cheaper and more transparent cross-border payments
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As international trade and e-commerce continues to expand, cross-border payments have grown substantially. According to the latest report from EY, global cross-border payments are growing at around 9% annually. And they are expected to reach $290tn by 2030. As the digital economy continues to expand, the demand for more efficient, secure, and inclusive payment systems becomes crucial. The shift from traditional T+2 and T+1 settlement periods to real-time payments has already reshaped domestic transactions. Setting the stage for a similar revolution in cross-border payments.
Whilst there is plenty of opportunity for cross-border payments, sending and receiving payments can be a complex and challenging process. This is due to rising data volumes, fragmented systems, and different regulations across multiple territories. So, how can businesses best prepare for the evolving cross-border payments environment?
Breaking down the barriers for cross-border payments
It’s no secret that achieving real-time cross-border payments involves complexities beyond technology alone. Regulatory challenges are a significant hurdle. Multiple financial institutions across different countries have distinct rules around payments, fraud detection, and compliance. For example, the stringent regulations of the UK’s Financial Conduct Authority (FCA) contrasts with the relatively flexible approach of the US Federal Reserve. This diversity in regulations can lead to inefficiencies, increased costs, and compliance burdens. Harmonising these regulations will be crucial for creating a seamless global payment network.
In addition, cross-border payments often take several days to process through traditional banking systems. This can be due to time zones, inefficient processes and the involvement of multiple intermediaries, including correspondent banks, and local financial institutions. Each intermediary adds time and cost to the transaction, and the entire process can take between two to five days. For businesses, these delays can disrupt cash flow, complicate supply chain management, and create issues with paying vendors and employees promptly. Worryingly, the delay can prove hugely problematic for SME’s who often operate with tighter cash reserves and need more immediate access to funds.
Furthermore, businesses engaged in cross-border transactions must also navigate the complexities of fluctuating exchange rates. Currency exchange rates can change dramatically, influencing the cost and value of transactions. This could lead to financial losses if a payment is delayed or if a favourable exchange rate changes before the transaction is processed.
Unlocking potential by reducing complexity
To overcome cross-border challenges, G20 leaders endorsed a roadmap for enhancing payments globally in 2020. This initiative set out to address the four key challenges related to cost, speed, access, and transparency. Therefore, paving the way for a more efficient and inclusive financial ecosystem. For example, the G20 aims for 75% of cross-border payments to be credited with the beneficiary within an hour by 2027. The past couple of years have undoubtedly brought major milestones with respect to this roadmap. Most notably, SWIFT has been a central figure in traditional cross-border payments. It provides a standardised network for financial institutions to send and receive information about transactions.
The challenges faced by businesses with cross-border payments has unlocked new opportunities for financial institutions to develop innovative solutions. FinTechs are leveraging advanced technology, including blockchain, artificial intelligence (AI), and digital currencies, to make cross-border payments faster, cheaper, and more transparent. Blockchain and cryptocurrencies are often cited as potential game changers in cross-border payments due to their ability to eliminate the need for intermediaries, whilst enabling instant and transparent transactions. For example, Ripple, one of the leading blockchain-based payment networks, uses its RippleNet platform to facilitate payments between countries. This provides faster and more cost-effective payments.
Cross-border payments traditionally have been more complex than domestic transactions due to multiple intermediaries. Furthermore, it’s important to note ongoing international collaboration will be crucial to ensuring cross-border payments remain seamless, secure, and inclusive. This opportunity can be maximised through automatic reconciliation. By automating the processing of high volumes of date from cross-border payments, businesses can remove the distractions of mismatched information, fraud concerns and accounting hold-ups. It also manages inbound payments, outbound payments, and inter-currency transfers through a centralised framework. This enables businesses to gain complete visibility of the data.
Opportunities on the horizon for cross-border payments
The pace of change within the payments and wider fintech industry is showing no signs of slowing down. Customer expectations for faster, cheaper and more transparent payments are driving change across the sector. It’s certainly an exciting time for the industry, but financial institutions cannot afford to rest on their laurels. Further growth can be found on the horizon for those who are equipped with the right knowledge to be able to pursue cross-border payments effectively.
Ben Parker, CEO at eflow Global, on how consolidating information can help organisations achieve a comprehensive view of their regulatory compliance
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When it comes to compliance, financial institutions are constantly navigating a landscape that is not only highly complex, but also in a state of perpetual flux. Firms must ensure that they are meeting the current standards set by regulators. Furthermore, they must also stay ahead of the curve in a world where regulations are continuously evolving. It’s about keeping up with the rapid advancement of technology, particularly in areas like artificial intelligence. It reshapes both the methods of regulatory enforcement and the strategies employed by those who seek to circumvent the rules.
Accordingly, the importance of technology and data in compliance strategies is ever increasing. Traditional approaches, such as manual data entry and analysis, are increasingly inadequate in meeting the demands of modern regulations. Just look at the frequency and granularity of data reporting that is needed for the EMIR Refit regulations as a practical example.
However, as financial firms have recognised this shift and turned to technology as the solution, the transition has brought new problems of its own. Namely, the fragmentation of data across disparate, siloed systems. So, how do firms solve this issue?
The data fragmentation problem in compliance
The issue of data fragmentation has become a common occurrence in compliance. Firms are often deploying multiple technology solutions to manage their regulatory obligations. Across areas such as trade surveillance, eComms surveillance, best execution and transaction reporting. As a result, they often find themselves grappling with data silos caused by using multiple, disconnected systems.
While these tools are often very good at specific tasks, a lack of data integration between systems will harm a firm’s overarching compliance efforts. These platforms, if sourced from different vendors, may not be able to share data between one another. This ultimately undermines their effectiveness, negating the operational efficiency technology is supposed to add.
The use of multiple systems by firms can happen for a variety of reasons. For example, legacy technology that has been in place for a number of years, the need to comply with different regulations as the business has scaled and changes in regulatory strategy. Moreover, you also need to consider that reporting formats can differ between regions, as can protocols for monitoring market abuse. When you combine all of these variables, it means only one thing – identifying non-compliant activity is trickier for firms to achieve, as is demonstrating compliance to regulators.
This is a major problem as, perhaps more than ever before, different areas of compliance overlap. For example, being able to monitor suspicious messages shared through digital communications channels could help identify instances of market abuse. Or predict when it might take place. This relies on a firm being able to map its trade data over eComms surveillance data to create a complete picture of the activity. Without being able to do this, firms would have to spend huge amounts of time and resources manually cross-referencing data from separate systems. In turn this increases the risk of human error and the danger of breaching regulations.
Why a holistic system supports compliance
Rather than having to implement complex and costly integrations between in-house and third party apps, a holistic compliance platform can provide the seamless flow of data between various sources via straight-through processing. This creates a real-time overview of compliance processes and streamlines workflows, reducing human errors and enhancing efficiency.
With such technology in place, firms have a central digital hub from which to manage their holistic regulatory strategy. If chosen wisely, additional modules can be easily added and integrated to meet new regulatory requirements as they emerge. This allows firms to scale more effectively.
This ‘single source of truth’ also enables compliance professionals to have a broader understanding of trading activity taking place across their organisation. It also facilitates improved sharing of information between different departments, trading desks and regional offices. This ‘joined up’ approach is likely to become even more important. As the financial landscape becomes increasingly interconnected this will be incredibly challenging to achieve without a centralised digital platform.
New regulations such as EMIR Refit require significant extra reporting requirements. The sheer amount of data and the speed with which it needs to be processed means such automation and integration tools are crucial. Moreover, in such a digitally diverse landscape, a holistic system allows companies to assess the numerous data points needed to be compliant without any regulatory gaps.
A future non-negotiable
While many firms are currently grappling with multiple compliance systems and data silos, employing a centralised system will become a non-negotiable in the future of compliance. Not only are regulations constantly changing, but trading strategies are evolving even quicker. This means that instances of market abuse, driven by trends like growing interest in digital assets and AI-powered trading, are only likely to increase. If firms are hindered by disparate compliance systems, they leave themselves open to significant regulatory risk.
The underlying challenge for companies is to find ways to maintain compliance and keep on top of changing regulations while also ensuring these efforts do not place an unnecessary strain on resources. In the face of these challenges, a holistic compliance system offers the simple solution to striking this balance – it enhances the efficiency, accuracy, adaptability and overall effectiveness of regulatory processes. Crucially, it is clear that regulators have growing expectations of firms to take a proactive approach to this challenge.
A centralised regulatory system also sets firms up to integrate more advanced tools like AI. There are already highly sophisticated compliance tools that have integrated features like natural language processing to ‘translate’ messages and link suspicious communication to abusive trading. The more comprehensive and diverse the data, the better these models work at analysing trends and spotting abuse.
A holistic solution to a complex compliance challenge
While a firm’s intention may be to drive efficiency, the adoption of compliance technology without a coherent strategy can in fact create more issues. If compliance systems can’t communicate effectively with each other, errors creep into datasets and gaps in regulatory processes appear. This means firms risk breaching regulations and suffering greater market abuse, with both outcomes bringing financial and reputational damage.
The key lies in integrating these disparate data sources into a single, cohesive, holistic system. By consolidating information, businesses can achieve a comprehensive view of their regulatory compliance. Therefore, reducing the need for cumbersome IT infrastructure and ensuring they remain agile in the face of ongoing regulatory changes. Ultimately, a holistic system simplifies a regulatory and trading landscape that is increasingly varied and complex.
James Butland, VP – Payment Network at Mangopay, on meeting the needs of the gig economy with Embedded Finance payment solutions
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Specialised payment solutions supported by Embedded Finance have become essential for supporting the gig economy. They offer speed, accessibility, and security in financial transactions.
The global gig economy is forecast to reach a value of $1847 billion by 2032, reflecting its rapid expansion and impact on the workforce. This growth has unlocked flexibility and autonomy for workers. Furthermore, it has also introduced unique financial challenges, particularly in payment systems. With so many platforms available for freelancers, each one strives to offer the best experience. To succeed in the competitive world of the gig economy and handle changes in demand and pricing, platforms need to adapt fast.
Embedded Finance is a Transformative Force
Embedded Finance is emerging as a transformative force for gig workers. It simplifies payment processes and enhances financial management. Its impact is already evident in the streamlining of payments. Instead of waiting for traditional payroll cycles, gig workers can now access their earnings instantly. Empowering them with greater control over their finances. This approach not only alleviates cash flow challenges but also facilitates more effective ways of working for freelancers.
Moreover, Embedded Finance enables seamless partnerships with gig economy platforms. By integrating directly into these platforms, Embedded Finance solutions allow gig workers to manage all financial processes, from receiving payments to tracking earnings, without leaving the platform. For example, partnerships with wallet-based infrastructure providers enable secure, efficient fund dissemination. Meanwhile, laying the groundwork for additional revenue opportunities through wallet-facilitated transactions. This integration enhances both worker experience and platform capabilities, fostering a more cohesive gig economy ecosystem.
Flexible, Fast Payouts
The gig economy is global by nature, requiring financial solutions that can support businesses and workers across borders. Flexible FX infrastructure plays a crucial role in streamlining contractor management by ensuring seamless multi-currency payments, compliance, and administrative efficiency. This type of infrastructure empowers platforms to reduce operational costs and improve the overall user experience for both businesses and gig workers.
By leveraging modular and flexible FX solutions, employment and HR platforms can cater to specific use cases, such as managing international contractor payments. These solutions not only enable compliant and efficient transactions but also simplify processes. This allows businesses to focus on core operations while offering a seamless experience to their users. Such advancements highlight the potential of integrated financial technology to address complex cross-border payment needs effectively.
For gig workers, income can often be irregular, leading to cash flow uncertainties and financial stress. Specialised payment solutions, powered by Embedded Finance, address this by enabling instant payouts. By integrating low-fee processing and real-time transaction capabilities, these platforms bypass the delays of traditional payroll systems. This provides workers with immediate access to their earnings.
The ability to access income in real time is more than a convenience; it is a critical lifeline for workers managing daily expenses, emergencies, or reinvestment in their work. This advancement significantly enhances financial stability, helping to sustain the gig economy as a viable career path.
Digital Wallets
A substantial number of gig workers operate outside conventional banking systems, lacking access to savings accounts, credit, or other essential financial services. Digital wallets and cross-border payment capabilities, key elements of Embedded Finance, are integral to addressing this gap. These tools allow gig workers to securely store and manage their funds, receive payments in multiple currencies, and make transactions with ease.
Additionally, digital wallets serve as more than just repositories for funds. They can include features such as budgeting tools, savings trackers, and credit-building capabilities. These tools enable gig workers to manage their finances more effectively while opening up new opportunities for growth and security. For instance, workers can build credit profiles through wallet-based transaction histories, unlocking access to financial services that were previously out of reach.
Security and Growth
As the gig economy increasingly relies on digital platforms, the importance of secure and adaptable financial solutions cannot be overstated. AI insights and data-driven credit assessments are creating robust ecosystems tailored to the needs of gig workers.
AI powered advanced analytics are transforming the way gig workers manage their finances. These tools can identify financial trends and provide actionable insights tailored to the individual. For instance, they can recommend optimal saving strategies or suggest the best times to withdraw funds, enabling workers to make smarter financial decisions and reduce uncertainty in their income flow.
While data-driven credit assessments are breaking down traditional barriers to credit access for gig workers. With irregular income patterns, many gig workers struggle to secure loans or build credit through conventional means. Platforms are addressing this by using alternative data points—such as earnings history and payment behaviours—to create fair and accurate credit profiles. This innovation opens doors to financial opportunities that empower gig workers to achieve greater financial stability and growth.
By streamlining payments, integrating accessible financial tools, and leveraging cutting-edge innovations for security, these solutions address both immediate and long-term needs. Through continued innovation, the gig economy is poised to thrive as a flexible, inclusive, and dynamic component of the global financial system.
OnAfriq’s Amber Thetford, Chief Product Officer – Card issuing and processing, on how prepaid debit cards can enable companies to take advantage of of trade opportunities across the African continent
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As businesses seek to expand across African borders, cashless payment solutions offer a safer method of transferring money. Prepaid debit cards provide security while mitigating many infrastructure and regulatory challenges.
The African Continental Free Trade Area Agreement (AfCTA) is moving into the operational phase. It is becoming clearer that part of its success lies in ensuring entrepreneurs and small businesses can effectively trade and receive payments across borders.
African Trade
As the African Union has noted, the trade area will be the biggest since the World Trade Organization was formed in 1995. Africa’s population is currently 1.2 billion people. A figure expected to reach 2.5 billion by 2050.
South Africa took its first step in making AfCTA a reality when former Minister of Trade, Industry, and Competition, Ebrahim Patel, launched the implementation of the start of preferential trade this year. The South African Revenue Service also certified two consignments to Ghana and Kenya.
Yet, with trade expected to grow among members from 15%-18%, a safe way of moving money is required given the risk that cash presents. Some nine-tenths of transactions in sub-Saharan Africa are, based on World Bank information, in cash.
Card payments in the digital ecosystem
The large amounts of cash involved in trade are also cumbersome and difficult to physically transport between markets. Card payments, part of the digital ecosystem, can enable efficient, secure, and transparent transactions. These are essential for facilitating trade.
Card payments can eliminate the need for manual intervention and reconciliation when it comes to banking and bookkeeping. This, the World Bank states, makes them, on average, three times more cost-effective than conventional purchase order costs.
Mobile money payments have greatly improved Africa’s ability to make cross-border payments. However, they do not meet the full scope of needs of individuals or businesses. As the United Nations points out, there are regulatory bottlenecks. Furthermore, a lack of interconnectivity among mobile transactions in some countries means people cannot transfer money across borders. Moreover, limitations of infrastructure, accessibility, and interoperability make it difficult for their users to access the global digital economy. As a result, this type of cross-border payment can be limited.
Prepaid cards can solve trade problems
There are solutions to these trade dilemmas. Prepaid cards can enable businesses and individuals to transact with global institutions and marketplaces without the need to own a bank account. This option removes a pain point for a business that would otherwise need to accept local alternative payment methods or cash. Navigating challenges like high fees, currency shocks and a lack of access to traditional banks can be simplified through prepaid cards. This makes them a pivotal instrument that enhances Africa’s connection to the global economy.
For example, one of OnAfriq’s customers provides payroll solutions for seafarers and cruise ships, which frequently travel to different countries. Once the card is loaded, it is very convenient for sailors to use it as one would a normal debit card. They can swipe to pay for purchases or transmit money across borders. The beauty of this option is that whoever is loading the card with money, can be based anywhere in the world. Moreover, the same is also true of the person holding the card.
Prepaid cards can also be used to manage expenses because they can be provided to managers. For example, a bookstore could make independent decisions about business-related purchases. But only up to a certain amount. This has the added advantage of speeding up operations as there are no lengthy delays across the company when it comes to acquiring stock. Furthermore, it goes some way towards eliminating fraud as the card has a set limit.
Larger companies with staff who travel extensively can also provide gratuities for their employees. They can then cover incidental expenses without having to dip into their own pockets or bring back paperwork to be reimbursed.
AfCTA dream can become a reality
A platform that simplifies a user’s ability to transfer money to cards brings the AfCTA dream closer to reality. The versatile power of prepaid cards can be used to promote free trade between countries and unite Africa’s fragmented payment landscape.
Prepaid solutions can aid businesses seeking to operate in other African countries to thrive – making AfCTA’s aim a reality and boosting economic growth for all.
Jan-Willem Weggemans, Vice President, Commercial Payments Lead at Publicis Sapient on the outlook for payments modernisation
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The payments industry is transforming rapidly, driven by customer demand shifts, regulatory developments and technological advances. Payments players need a tailored innovation approach for each value opportunity, based on their strategic position and ambition and each driver of change.
Understanding the drivers of payments modernisation
Driven by technological advancements, shifting customer expectations and regulatory developments, banks and financial institutions must adapt their offerings. They must modernise their payments to remain competitive in this ever-evolving landscape as we start this new year.
Customers expect real-time, seamless and personalised payment experiences that are now standard expectations across financial services. Not only that, but users are demanding frictionless cross-border transactions, alongside advanced features like biometric authentication.
Massive advances in technological capabilities drive customer expectations. Cloud computing, data platforms, Artificial Intelligence (AI), and Application Programming Interfaces (APIs) enable faster, scalable, resilient, and more secure payment solutions. These enable opportunities to innovate customer propositions and experiences. Moreover, supporting the modernisation of processes and technologies can lower costs and improve resilience.
Regulatory developments are a key factor. From new (instant) payments schemes to ISO standards to KYC/AML requirements, there is an ongoing need to change/modernise the payments operating model. And possibly innovate client solutions.
For these reasons, legacy banks can struggle with the pace of change and inefficiencies. Including enabling FinTech disruptors to gain a competitive advantage. So, how can banks examine these learnings and implement better change?
Progressive modernisation and the impact of GenAI
Banks and financial institutions can take a tailored approach to payment innovation and modernisation. In all of these approaches, modernising an incumbent player with significant legacy challenges is generally a process of progressive modernisation. Big bang approaches and the building of neo banks to move a legacy bank forward have generally not delivered success.
Progressive modernisation enables a bank to move in a controlled way from the legacy to the modern state. This requires running the legacy and modern services in parallel. Meanwhile, the integration is enabled by decoupling the hardwired systems top and bottom (integration and data). Only then can you spin up the modern enterprise and core services and progressively direct more clients/transactions/products over the new stack.
Progressive modernisation is becoming more attractive and suitable for many clients. Furtherore, GenAI can materially alter the cost and duration of these programs, offering lower risk and a significantly improved business case. With new and innovative solutions that utilise GenAI at their core, the whole journey can be greatly accelerated. Including Legacy system discovery, Target state design, Backlog creation, and Building and Testing.
Three key approaches when facing the need to modernise Payments
Payments players are facing an ongoing modernisation need, driven by changing client behaviours, technology innovation and regulatory activism.
Broadly, we recognise three approaches to payment modernisation, including:
Fix the edge – either top of the stack or bottom, a small fix, without touching 90% of the existing tech.
Incremental uplift – installing a modern solution (but not fully end-to-end). For example, a new core system for a set of products/customers.
Move to native build – setting steps on the progressive modernisation journey, after investing in decoupling the hardwired legacy systems.
To select the right approach, we consider two key factors: the event and the players. The event looks at the size of the opportunity (or materiality of the threat) and the size/complexity of the change. The player looks at the performance of the existing operating model, whether payments are core, and whether the ambition is to be a leader in payments or to be part of the majority of players.
How a player’s participation strategy drives modernisation choices. A client offers white label card processing services, and in their market, they need to offer the most modern solution and lead with modern technology, AI, and embedded compliance/risk solutions. A major incumbent bank decided to invest primarily in customer value propositions, driving value from the broader client relationship. The bank opted for a processing-as-a-service model when it needed to modernise the processing platform.
Looking at the two extreme options, we see that fixing the edge works well for players where payments are not core, when they do not need to be the first mover, or when their existing operating model is performing well. From an event perspective, it fits when the opportunity is small and/or the change is minor in effort and complexity.
At the other end of the spectrum, moving on the journey to native build is most suited for players where payments are core. Where they want to be the first mover in the market, and where the existing operating model is facing major challenges. From an event perspective, it is more suited when the event supports a significant value opportunity (or threat to the business) and requires a significant change.
Making payments progress real
Many new payment options, including A2A payments and instant payments, offer incremental benefit cases for many players. These are not large enough to kick off the incremental modernisation journey. Thus, most players will opt for a “fix the edge” or “incremental” modernisation approach and wait for another event for a full modernisation.
Regarding regulation. The new ISO20022 standard is due to come into full force in November 2025. However, less than a third of messages were exchanged using the new standard in late 2024. An often cited reason for delays in implementing regulatory changes is the edge approach replanning required to keep up with the evolving set of rules regarding the ISO standards. The evolving set of rules is inevitable, as the regulator is responding to market experiences and feedback from trying to implement the initial rules set. Thus, in regulatory change with this level of impact, a cloud-native approach would be better, enabling a more nimble/agile response to continuous changes.
What is the next move?
Faced with the inevitable need to invest in payments, we suggest taking a portfolio approach and looking 2-3 years ahead when evaluating individual modernisation events. And your strengths/weaknesses and strategy. Modernisation is not just a technical upgrade but a strategic enabler that can drive efficiency, resilience, and innovation. You can ensure that each modernisation effort contributes to a cohesive, future-ready payments ecosystem by aligning your investments with long-term business goals. This approach will help you avoid costly short-term fixes. And build a scalable, agile infrastructure that supports evolving customer expectations, regulatory requirements, and competitive pressures.
“Turning transformation into a non-event is our North Star,” explains Thorsten Spihlmann, Head of Business Development for Transformation in the Cloud Lifecycle Management department at SAP. The evolution of SAP’s Business Transformation Centre (BTC) is future proofing customer experience. “The BTC is a comprehensive solution that helps users streamline the process of migration to S/4HANA,” says Spihlmann. “In the end, it’s one central platform – one central orchestration layer – which guides you through all phases of the project. The BTC enables users to access source systems, profile data for insights, enhance and transform data, provision it to target systems, and validate data integrity… Our customers’ interests are always top of mind.”
Nestlé: A CIO Leading by Example
Nestlé‘s Oceania’s CIO, Rosalie Adriano, dives deep into how her breadth of experience in transformational change led to her becoming one of 2024’s top 50 CIOs in Australia. “I want ideas to be freely shared. Innovation is encouraged. This approach breaks down silos and creates a sense of unity and purpose.”
Poundland & Dealz: The Value of Digital
Dean Underwood, IT Director at Poundland & Dealz, talks challenges, cultural shift and the company’s digitally transformation… “We must prove that spending on technology is as impactful as investing in product pricing,” he says. “For example, my request to fund a new data warehouse competes with the Commercial Director’s goal to maintain affordable prices. The customer always comes first, but investing in supply chain efficiencies lowers operating costs, helping us keep prices down. It’s our responsibility to demonstrate the value of every investment.”
Schenectady County Government: Delivering Critical and Secure Infrastructure
Schenectady County’s CIO Gabriel A. Benitez discusses the role of IT as a steward for citizens, leadership and the power of teams, and why security is crucial to the organisation… “We support and serve to keep Schenectady County running. That covers a broad remit, but some of the key departments we work with include Finance, Law Enforcement, Emergency Management, Public Health, Glendale Nursing Home, County Clerk, District Attorneys, Public Defender, Conflict Defender, Probation, Social Services, Veteran’s Affairs, Engineering & Public Works, and Department of Motor Vehicles.”
ClearBank, the enabler of real-time clearing and embedded banking, recently announced its partnership with Airwallex. A leading global Digital Payments and…
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ClearBank, the enabler of real-time clearing and embedded banking, recently announced its partnership with Airwallex. A leading global Digital Payments and financial platform for modern businesses. Through this collaboration, Airwallex will leverage ClearBank’s agency banking solution to enhance its UK offering with virtual business accounts, GBP collections, and Confirmation of Payee (CoP) functionality.
Partnering for Digital Payments with ClearBank
ClearBank has enabled the global FinTech to issue virtual accounts and IBANs under its own brand identity. This reinforces Airwallex’s robust financial platform, while also allowing the company to maintain seamless customer branding. Moreover, through the partnership, Airwallex will have access to UK payment schemes. These include Faster Payments, BACS, and CHAPS. Accelerating Airwallex’s strategic goal of helping businesses simplify their global Digital Payments and financial operations, unlock new opportunities, and grow without limits.
“Our priority is to provide businesses with fast, flexible and seamless financial services. ClearBank’s agency banking solution aligns perfectly with our vision, allowing us to enhance our product offering in the UK while maintaining our brand identity. The team’s deep understanding of our business needs and their speed of execution have been invaluable throughout the partnership development and integration process.”
Vivien Cheung, Head of Financial Partnerships – EMEA, Airwallex
The partnership is founded on the companies’ shared ambition to utilise innovative technology to bring streamlined financial services to more customers in new markets. Furthermore, it highlights a growing demand for innovative financial solutions that combine the flexibility of FinTech with the security of traditional banking. ClearBank’s cloud-based approach allows for efficient integration, enabling Airwallex to deliver the features and functionality businesses need to make Digital ayments faster and more cost-effective.
“We’re proud to partner with Airwallex as the business enters its next phase of growth. Our unique combination of innovation and security was essential in supporting the premium customer experience that Airwallex is looking to provide. We look forward to deepening our relationship with Airwallex as we explore further opportunities for collaboration.”
John Salter, Chief Customer Officer, ClearBank
About Airwallex
Airwallex is a leading global financial platform for modern businesses, offering trusted solutions to manage everything from Digital Payments, treasury, and spend management to embedded finance. With our proprietary infrastructure, Airwallex takes the friction out of global payments and financial operations, empowering businesses of all sizes to unlock new opportunities and grow beyond borders. Proudly founded in Melbourne, Airwallex supports over 100,000 businesses globally and is trusted by brands such as Brex, Rippling, Navan, Qantas, SHEIN and many more. For more information, visit http://www.airwallex.com
About ClearBank
ClearBank is a purpose-built, technology-enabled clearing bank. Through its banking licence and intelligent, robust technology solutions, ClearBank enables its partners to offer real-time payment and innovative banking services to their customers. For more information, visit www.clear.bank
According to a new report published by WiseGuy Reports (WGR), The Insurtech Insurance Technology Market was valued at $ 31.05 billion in…
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According to a new report published by WiseGuy Reports (WGR), The Insurtech Insurance Technology Market was valued at $ 31.05 billion in 2024 and is estimated to reach $322.7 billion by 2032. It is set for growth at a CAGR of 33.99% from 2025 to 2032.
InsurTech revolution gathers pace
The insurtech insurance technology market is revolutionising the traditional insurance sector by integrating advanced technologies such as artificial intelligence (AI), machine learning (ML), blockchain, and data analytics. InsurTech solutions streamline operations, improve customer experiences, and enable data-driven decision-making. These technologies cater to various aspects of insurance, including underwriting, claims processing, and policy management.
The market has witnessed robust growth due to the rising demand for digital solutions and personalised insurance products. With startups and established insurers collaborating, the industry is becoming more agile and competitive, creating new opportunities for innovation in risk assessment and fraud prevention.
InsurTech’s key players
The InsurTech insurance technology market features a dynamic mix of startups and established players. Key companies include Lemonade, Metromile, and Hippo, known for their innovative approaches to insurance delivery. Traditional insurers such as AXA and Zurich are also investing in InsurTech partnerships to modernise their operations.
Companies like Policybazaar and Root Insurance are leveraging AI and big data to enhance customer engagement. Furthermore, tech giants like Amazon and Google are exploring the sector, further intensifying competition. Moreover, these players focus on integrating advanced technologies and developing user-centric platforms to stay ahead in a rapidly evolving market.
Stuart Cheetham, CEO at MPowered Mortgages, on how AI-powered technology allows mortgage lenders to fully underwrite loan applications in minutes
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AI technologies are about to have a huge impact on the mortgage market… In November last year the founders of Revolut announced plans to launch a “fully digital, instant” mortgage in Lithuania and Ireland in 2025. Details were sketchy but the company said that mortgages will be part of a “comprehensive credit offering” it intends to build.
Neobanking progress with AI
Digital only banks, like Revolut and Monzo, are renowned for using the power of technology and data science to create efficiencies and improve customer experience. The reason neobanks have been so successful is because they provide a modern, convenient and cost-effective alternative to traditional banking. This is done a transparent way, through fast onboarding, 24/7 app access and instant notifications. All with a user-friendly interface.
While many financial services sectors have embraced financial technology in the way Revolut and Monzo have for the retail banking sector, the mortgage sector has struggled to make a real breakthrough here. Why hasn’t the mortgage industry caught up one might ask? Mortgages are complex financial products, existing at the intersection of justifiably stringent regulation. They represent the single biggest financial commitment people make in their lifetimes. Financial advisors who source mortgages on behalf of borrowers are hindered at every stage by outdated systems and inadequate or commoditised product offerings.
Disrupting the Mortgage Market
The mortgage industry is one financial services sector that has been yearning to be shaken up by the FinTech industry for some time. While it’s encouraging to see a successful brand like Revolut enter this market, what is less known is that huge progress is being made already by smaller and less well known FinTech disruptors.
For example, the mortgage technology company MQube has developed a “new fast way” of delivering mortgage offers using the cutting edge of AI technology and data science. Today, it still typically takes several weeks to get a confirmed mortgage offer. This is one of the major reasons the homebuying process can be so time consuming and stressful for brokers and borrowers. The mortgage process is characterised by bureaucracy, paperwork, delays and often frustratingly opaque decision-making by lenders. This leads to stress and uncertainty for consumers, and their advisors. And at a time when they have plenty of other property-purchase related challenges to contend with.
Our proprietary research shows us, and this will come as no surprise, that the biggest pain point for borrowers and brokers about the mortgage process is that it is time consuming, paperwork heavy and stressful. Imagine a world where getting a mortgage is as quick and as easy as getting car insurance. This is MQube’s vision.
MQube – AI-powered Mortgages
MQube‘s AI-powered mortgage origination platform allows mortgage lenders to fully underwrite loan applications in minutes. MPowered Mortgages is MQube’s lending arm and competes for residential business alongside the big banks. It uses MQube’s AI-driven mortgage origination platform and is now able to offer a lending decision within one working day to 96% of completed applications.
The platform leverages state-of-the-art artificial intelligence and machine learning to assess around 20,000 data points in real-time. This enables lenders to process mortgage applications in minutes, transforming the industry standard of days or weeks. It automates the entire underwriting journey, from application to completion. This helps to provide a faster service, reduce costs, mitigate risks, and to make strategic adjustments quickly and effectively. By assessing documents and data in real-time during the application, it is able to build a clearer and deeper understanding of a consumers’ circumstances and specific needs. Applicants are never asked questions when MQube can independently source and verify that data, leading to a streamlined and paperless experience. Furthermore, this whole process reduces dependency on human intervention.
The benefits of AI
More and more lenders are seeing the benefits AI and financial technology can bring to their business. They are beginning to adopt such AI-driven financial systems which are scalable and serve to address systemic problems in this industry. The mortgage industry is still some way behind the neobanks, but what’s hugely exciting to see is the progress that has been made so far. Moreover, if FinTechs continue to innovate this sector and if lenders continue to embrace financial technology and use at scale, then getting a mortgage could genuinely become a quick, easy and stress free process. At this point, the mortgage industry could begin to see a shift in consumer perception and change in consumer behaviour. A new frontier for the mortgage industry is upon us.
Plumery, a digital banking experience platform for customer-centric banking, today announced it has launched Digital Lending. The fully end-to-end digital…
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Plumery, a digital banking experience platform for customer-centric banking, today announced it has launched Digital Lending. The fully end-to-end digital loan origination journey allows bank customers to go from application to disbursement in 180 seconds.
Digital Lending
Plumery Digital Lending offers market-leading speed with banks, digital lenders and other financial institutions who are able to launch their new lending products in as little as 18 weeks. Moreover, allowing firms to triple their loan portfolio and capacity while maintaining the same staffing levels.
Many financial institutions are still unable to offer a fully digital loan origination process to customers. This forces them to partially complete a process online before finalising with human intervention. Yet, firms need to move quickly to stay competitive in today’s fast-paced world and benefit from the highest interest rates in a decade.
Transforming the loan process
“By transforming the loan origination process into a fully digital experience, banks and other financial institutions can meet the demand for seamless and efficient customer journeys. Firms can configure every aspect of the process, safe in the knowledge they are on top of bank-grade security and infrastructure.”
Ben Goldin, Founder and CEO of Plumery
Digital Lending includes:
Digital application through web and mobile interfaces
Secure capture and storage of customer information
Streamlined, compliant onboarding experience
Automated application processing and data collection
Integration with external data sources for accurate scoring and vindication
AI/machine learning driven credit decisioning with customisable rules
Digital document generation and e-signatures
Loan disbursement and integration with core banking or loan management systems
With customer journeys built on the Plumery platform, firms can align with their unique workflows or adapt to changing regulatory requirements – and continue making rapid improvements from there. Plumery offers tools which both developers and business users can employ to make final adjustments, ensuring fast and affordable automation.
About Plumery
Headquartered in the Netherlands, Plumery’s mission is to empower financial institutions worldwide, regardless of size, to craft distinctive, contemporary, and customer-centric mobile and web experiences.
Plumery operates with a diverse team that embodies a unique combination of seasoned expertise and vibrant innovation. This blend has been cultivated through years of experience at start-ups, scale-ups, and established financial institutions, and most notably at globally leading financial technology companies, where they were instrumental in creating disruptive digital banking solutions and platforms that now serve 300+ banks globally.
Plumery’s Digital Success Fabric platform provides banks with the foundation for success beyond fast-time-to-market by expediting the development of their digital front ends while significantly cutting costs compared to in-house initiatives or solutions with high total cost of ownership (TCO).
Ben Hunter, Senior Director of Financial Services at Gigamon, on the impact of the Digital Operational Resilience Act (DORA) and what financial institutions can do to ensure lasting compliance
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The Digital Operational Resilience Act (DORA) came into force on January 17th. It’s high time for financial institutions to refine their compliance and Cybersecurity efforts. This regulation isn’t just another box-ticking exercise. It represents a shift in the financial services industry that touches everyone in the ecosystem. And every corner of the organisations within it. From IT teams to the board, every department must pull together under a cohesive cyber strategy to meet the challenge. It’s not simply about systems and software. DORA demands a cultural shift toward organisation-wide cyber resilience.
At this stage, the big changes should already be in place. However, the focus now must be on the finer details. The overlooked pieces that could potentially make or break compliance and prove extremely costly. Organisations must tweak processes and ensure every element of their plan works seamlessly and aligns with the broader goal of operational resilience. Here are three areas of focus to perfect preparedness and ensure DORA compliance is not just a box checked but a new standard embraced by the whole organisation.
Criticality of third-party Cybersecurity management
One of DORA’s requirements is reducing reliance on single ICT service providers. This is designed to safeguard financial institutions against concentrated risk. By now, all structural changes should already be in place, with organisations diversifying their ICT providers. Or improving internal capabilities to reduce their external dependencies. However, compliance doesn’t end with restructuring. The focus must now shift from restructuring to managing these relationships effectively. Organisations should be looking to perfect their third-party risk assessment, monitoring, and due diligence strategies. They must ensure their processes for vetting ICT service providers are not just in place but are meticulously detailed. Contracts need to leave no room for ambiguity, with explicit terms outlining providers’ security and risk management strategies. These agreements must be revisited and stress-tested to confirm they align with DORA’s standards.
Equally critical is ironing out the specifics of ongoing monitoring and oversight. Institutions should be finalising the structure and frequency of their performance reviews and audits. Ensuring these mechanisms are robust enough to identify and address any emerging vulnerabilities. Moreover, by focusing on the details now, organisations can build a resilient operational framework that doesn’t just meet DORA’s requirements but builds resilience into their core operations for years to come.
Global efficiency through multi-cloud environments
Adopting a multi-cloud strategy has become essential for financial institutions operating on a global scale. It mitigates concentrated risk by avoiding dependence on a single provider and allows organisations to address the unique regulatory and operational challenges of different regions. However, the complexity of multi-cloud environments brings its own challenges. Particularly in ensuring the visibility and control required under DORA. This is why it’s crucial for organisations and their third parties to refine the tools and processes that support this level of visibility and allow the security teams to continuously monitor their environments.
According to recent data, 50% of CISOs say their confidence in risk management hinges on having full visibility into all data in motion, including encrypted and lateral traffic across both on-premises and cloud environments. This underscores the importance of advanced monitoring capabilities to effectively manage the complexities of multi-cloud infrastructures. While DORA mandates comprehensive visibility, the benefits go beyond just meeting compliance requirements. Deep observability strengthens organisations’ ability to detect vulnerabilities in real-time, ensuring seamless operations across regions and providers, and service continuity. For multi-cloud strategies to be effective, they must be paired with the right network-level monitoring capabilities. It’s important to build resilience from the inside out.
Organisational alignment to demonstrate Cybersecurity compliance
Demonstrating compliance isn’t just about avoiding fines and ticking regulatory boxes. It’s about preserving trust and protecting the organisation’s reputation. Reputational damage and financial penalties hit the top of the organisation hardest. This makes board-level engagement essential to ensuring Cybersecurity efforts are prioritised and aligned with broader business objectives. Boards must recognise that Cybersecurity is not a siloed function; it’s a key aspect of business resilience.
While security leaders are responsible for designing and implementing security strategies, their ability to deliver is directly tied to the board’s involvement. Board members control the decisions that shape an organisation’s Cybersecurity posture, from budget allocation to strategic priorities. Without their active engagement, security leaders may lack the resources, influence, or organisational buy-in necessary to implement comprehensive security measures. This can lead to significant gaps in compliance efforts and overall resilience.
To demonstrate compliance effectively, organisations need a unified approach to gathering, standardising, and presenting evidence to regulatory authorities. This includes aligning on consistent formats for documenting key areas like risk assessments, incident management, security testing, and third-party oversight. By finalising internal policies and leveraging automation tools, institutions can ensure their compliance evidence is regulator-ready and accessible. Such coordination not only satisfies DORA’s demands but also signals a strong, unified commitment to operational resilience. One that must come from the top and ripple throughout the entire organisation.
With penalties for non-compliance reaching up to 2% of global annual turnover, financial institutions cannot afford to be anything less than fully aligned on their compliance strategies going forward. Furthermore, as the broader compliance frameworks are now finalised, the focus must shift to perfecting the finer details that will ensure long-term resilience and success.
About Gigamon
Gigamon offers a deep observability pipeline that efficiently delivers network-derived intelligence and insights to your cloud, security, and observability tools. This eliminates security blind spots, optimises network traffic and reduces tool costs. Therefore, enabling you to better secure and manage your hybrid cloud infrastructure.
Industry leaders join forces to host groundbreaking event during ETHDenver 2025 where Stablecoin innovation meets B2B finance
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PayPal, Deloitte,and Bitwave will co-host On-Chain B2B Payments Day. A transformative event dedicated to accelerating the global adoption of Blockchain powered B2B payments.
Exploring Blockchain technologies
On-Chain B2B Payments Daywill bring together hundreds of senior financial leaders, accountants, auditors, and enterprise executives on February 27 at ETHDenver. They will explore how stablecoins and Blockchain technologies are reshaping the future of payments for businesses.
“With the broader adoption of blockchain networks and digital assets, stablecoins play a critical role,” said Deloitte Tax LLP Partner, Global Tax Leader – Blockchain & Digital Assets, Rob Massey. “Business transactions take on a whole new dynamic when these ‘programmable’ funds interact with the software applications on a near real time basis. Furthermore, with that, we end up with unique tax, accounting and risk considerations.”
Redefining payments with Blockchain
The Blockchain event will be presented alongside ETHDenver – the annual conference for Ethereum developers and Blockchain advocates. On-Chain B2B Payments Day kicks off with a networking brunch and panel discussion featuring some of the leading voices in payment innovation. The event is sponsored by NetSuite alongside other key industry contributors.
“Stablecoins offer an unprecedented opportunity to transform payment operations for global business,” said Bitwave Co-Founder and COO, Amy Kalnoki. “At Bitwave, we expect to see on-chain payments become one of the fastest-growing areas of Blockchain adoption in 2025. Moreover, this event will provide financial leaders with insights into how on-chain technology will redefine cross-border payments, liquidity management, and real-time reporting.”
Why Attend On-Chain B2B Payments Day?
Gain Practical Insights: Learn from financial experts about accounting, tax, and regulatory frameworks for building a compliant and future-ready payment practice.
Discover Real-World Use Cases: Explore how stablecoins are transforming B2B payments, from accounts receivable (AR) to accounts payable (AP) and beyond.
Engage with Industry Leaders: Connect with top decision-makers from leading enterprises, institutions, and crypto-native organisations advancing on-chain payments between vendors and payers.
Bonus: Take the “Bitwave Vendor Payment Pledge” and join an exclusive network of business partners accepting stablecoin invoice payments.
Ben Goldin, Founder & CEO of Plumery, on how Digital Banking innovations are reshaping the financial landscape, creating a greener future and new opportunities for millions
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Digital banking is making waves in emerging markets, evolving beyond simple transactions to deliver rapid access to credit, broaden economic inclusion, and support sustainable solutions. As smartphone adoption rises and AI reshapes lending processes, digital banking is significantly expanding in underbanked regions, enhancing financial inclusion for people and businesses while minimising environmental impact.
According to McKinsey, several trends have accelerated this Neobanking evolution in emerging markets. The pandemic drove a shift from cash to contactless and digital payments. E-commerce grew significantly – global transaction volumes increased by 25% from 2019 to 2020 and are expected to continue growing at 12-15% annually. Governments introduced cashless payment systems like Wave in Côte d’Ivoire, UPI in India, and Pix in Brazil to enhance interoperability and improve aid distribution. Furthermore, investor interest surged, with payments-focused fintechs receiving nearly 40% of the $5.2 billion in tech startup capital in Africa in 2021.
Together, these factors have fuelled innovation in digital finance. This has helped meet rising demand and enabled AI-driven, mobile-first platforms to deliver fast access to capital, fostering financial empowerment in underserved communities.
Additionally, smartphone penetration is set to reach 88% in Sub-Saharan Africa by 2030. Setting the stage for even greater financial inclusion. Combined with a growing focus on sustainability, digital banking in these regions is positioned to offer services that are both inclusive and environmentally conscious. Here’s a look at how digital banking is breaking down barriers, expanding financial empowerment, and building a greener future across emerging markets.
The evolution from basic transactions to fully-fledged Digital Banking
Digital banking initially gained traction by providing essential services like balance checks, peer-to-peer (P2P) transfers, and bill payments. This bridged gaps left by limited banking infrastructure. However, with evolving needs, digital banks and fintech companies now offer advanced products such as digital lending. This is among the most transformative aspects of digital banking in emerging markets.
Traditional access to credit was often challenging due to strict requirements, physical infrastructure, and extensive documentation. Digital lending platforms eliminate these barriers, enabling users to apply for loans directly through mobile devices, often receiving decisions within minutes.
AI-driven credit assessment models leverage alternative data points like mobile usage, purchase history, and digital wallet activity. This allows customers to secure funds without a formal credit record. Quick access to capital can be a lifeline for small business owners. Allowing them to act on opportunities as they arise. Digital lending thus meets immediate financial needs and supports broader economic growth by empowering local businesses.
Banking on a sustainable tomorrow
As digital banking expands, the need for environmentally sustainable operations becomes critical. The infrastructure supporting digital banking requires significant energy, especially as usage grows. To address this, financial institutions in emerging markets are adopting cloud-based platforms and energy-efficient data centres, reducing resource consumption while scaling services.
Cloud-based solutions are not only more scalable but also more energy-efficient, enabling banks to expand their reach responsibly. Automated processes further enhance energy efficiency, allowing Neobanking providers to serve more customers while minimising their environmental impact. This focus on sustainability aligns with broader goals of economic development and environmental stewardship, especially in regions vulnerable to climate change. For instance, Nubank in Brazil has achieved significant milestones by focusing on digital-only services, reducing the need for physical branches and their associated environmental impact.
Bridging gaps and expanding reach
Financial inclusion remains at the heart of digital banking’s impact in emerging markets. Digital platforms provide an entry into the formal financial system for millions. This allows them to save, invest, and plan for their futures. For small businesses, mobile applications and digital wallets offer essential tools for growth, empowering them to compete and contribute to local economies.
Digital platforms are also helping bridge the documentation gap by offering digital identity verification. This allows individuals without formal identification to open accounts and access financial services. Moreover, this approach is critical in regions where many people lack traditional IDs, which has historically excluded them from banking. By incorporating digital identification and security measures, financial institutions extend their reach, supporting resilience and inclusion.
Pioneering financial access through Digital Banking innovation
Emerging technologies like Blockchain, AI, and Biometrics are another factor in redefining digital banking in emerging markets. Blockchain provides a secure and transparent transaction method, which is particularly valuable in regions with less stable financial systems. AI enables credit assessment using alternative data, while biometrics and electronic Know Your Customer (e-KYC) simplify account creation. This makes it easier for individuals in remote areas to access financial services without physical documentation.
These technologies not only broaden financial access but also ensure that digital banking systems are efficient, secure, and scalable. By integrating these advanced tools, banks and fintech companies can provide reliable services to underserved populations, raising the standard for accessibility and security. An example of this in action is Moniepoint, a Nigeria-based FinTech. It has secured significant funding to enhance digital payments and banking solutions across Africa. By applying advanced technologies it reaches many who still lack access to banking services.
The future: Empowerment, Inclusion, and Sustainability
The future of digital banking in emerging markets holds great potential. With rising smartphone and internet connectivity, even remote areas gain access to financial services, breaking down traditional barriers to inclusion. This evolution goes beyond technology, creating pathways for financial empowerment and economic resilience.
A new generation of digital banking solutions is enabling financial institutions to extend their reach into emerging markets with a comprehensive range of services. From account management to lending. Designed with flexibility in mind, these platforms support customisation, allowing banks to tailor services to local needs through open APIs and modular infrastructure. By embracing sustainable practices and sustainable technology, these solutions not only broaden financial access but also foster growth in underserved regions in an environmentally responsible manner.
Yuno and PayPal team up to simplify Digital Payments for merchants with flexible options to broaden market reach and unlock new revenue streams
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Yuno a leading payment orchestration platform, has announced a strategic collaboration with PayPal, a global leader in Digital Payments processing. This collaboration significantly enhances Yuno’s offering, giving merchants seamless access to PayPal’s vast active user network. This now surpasses 400 million worldwide.
Unlocking revenue streams with Digital Payments
Yuno-powered merchants can now effortlessly offer PayPal’s secure and flexible payment option, broadening their market reach and unlocking new revenue streams. Trusted by millions worldwide, PayPal allows users to make purchases, transfer funds, and pay bills in a fast, easy, and secure way, without the need to repeatedly enter card payment information, contributing to reducing digital footprint and providing the security users are looking for.
Including this partnership, Yuno now supports over 300 global payment methods via its intuitive, user-friendly interface, making it easy for merchants to scale quickly by offering the most popular and locally-relevant payment methods in each market. Yuno’s platform also provides access to other innovative features. These include one-click checkout, advanced fraud protection, and optimised payment routing. This boosts transaction success rates and prevents lost sales in the wake of outages at a payment provider.
Catherine Kaupert, Global Head of Partnerships of Yuno, commented: “We’re thrilled to team up with PayPal, a well-known and trusted name in Digital Payments processing globally. This integration further strengthens Yuno’s capabilities, allowing our merchants to tap into PayPal’s extensive network and drive growth with ease. Together, we are simplifying payments, making them more secure, and enabling businesses to scale without friction.”
Paola Fuentes, Head of Partnerships for Hispanic Latam at PayPal, added: “Our affiliation with Yuno integrates our entire product portfolio. Including PayPal Checkout and credit and debit card payment processing to provide cutting-edge payment solutions for both customers and businesses. By joining forces, we are expanding the benefits of both companies’ offerings, giving consumers the option to select the payment method that suits them best and take advantage of instalments. According to recent data from AMVO, this is one of the main incentives for Mexican consumers to make purchases through the digital channel”.
Last year, Yuno secured $25 million in a Series A round led by Andreessen Horowitz, Tiger Global, DST Global Partners, Kaszek Ventures, and Monashees, fuelling its expansion across Asia, Europe, the Middle East, and Africa.
About Yuno
Yuno has emerged as a dominant force in global payment orchestration. Its core mission is to empower global commerce by enabling businesses of all sizes to accept and disburse Digital Payments anywhere in the world. Furthermore, fostering financial inclusion.
Yuno enables businesses to access over 300 payment methods worldwide. As well as innovative features including one-click checkout, smart routing, and robust anti-fraud tools via a single unified, easy-to-use interface. Yuno serves a global customer base that includes McDonald’s, inDrive, Rappi and other renowned brands across more than 80 countries.
About PayPal
PayPal has been revolutionising commerce globally for more than 25 years. The company creates innovative experiences that make moving money, selling, and shopping simple, personalised, and secure. PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy.
Bharat Mistry, Director – Product Management at Trend Micro, on why attack surfaces are more difficult to mange than ever and the need for greater Cybersecurity controls to tackle the problem
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Some surprising news emerged in mid-December. A Freedom of Information request sent to the Financial Conduct Authority (FCA) revealed that the number of c
Cybersecurity attacks reported to the regulator by large financial institutions fell 53% from the previous year. Reported data breaches also fell, by 29%. While welcome news, there are some big caveats.
The fall in reports could signify attacks are getting more sophisticated and harder to spot. The reporting periods also didn’t quite align, meaning two-and-a-half months of possible regulatory reports weren’t included in 2024’s figures. In fact, we’re seeing attacks and breaches at financial services industry (FSI) firms surging. In line with these organisations ramping up investment in digital transformation and IT modernisation projects.
Threat actors are grasping the opportunity with both hands. To keep them at bay, IT and cybersecurity leaders in the sector may need to rethink their approach to cyber risk management.
Cybersecurity controls are urgently required
Digital transformation is on an inexorable path. Driven by customer demand for seamless cross-channel experiences, and the quest for more streamlined business processes and productivity gains. Cloud adoption, mobile and app-centric services, remote workforces, and expansive supply chains are the result. However, this rapid change comes at a price. Research warns that half (49%) of global FSI leaders believe their attack surface is spiralling out of control.
Put simply, the ‘attack surface’ is the total expanse of all the IT and OT systems in a business that could theoretically be hacked. It includes everything from on-premises desktops and servers to cloud containers and even employees. Vulnerabilities and misconfigurations across these systems and services are inevitable. And the more assets there are, the more chance there is that a determined threat actor will find a weakness. This allows them to compromise the corporate network or a critical cloud account.
Heeding the warning
The likelihood of them doing so is increasing all the time. Not just because the typical FSI attack surface is increasing, but also because cybercriminals and nation-state operatives are getting better at using AI to their advantage. The National Cyber Security Centre (NCSC) warned back in January 2024 that AI “will almost certainly increase the volume and heighten the impact of cyber-attacks over the next two years”. It’s right. Generative AI in particular lowers the bar for budding threat actors by enabling them to create highly effective social engineering campaigns. And perform reconnaissance at scale to find weaknesses in organisations’ attack surfaces. In some cases, these weaknesses may exist in AI tools brought in by workers themselves. One report claims over a third of firms are struggling with shadow AI.
Our adversaries are also aided by the sheer complexity and interconnectivity of modern digital environments. APIs, microservices and third-party integrations -including frequently buggy or downright malicious open source components – expand the attack surface yet further.
Why it’s time for change
Managing risk across these environments should be a priority for obvious financial and reputational reasons. Open Banking rules and the growth of FinTech have made it easier for dissatisfied customers to jump ship. Furthermore, providing more options for those looking for a new provider. A serious breach could be the catalyst for a mass exodus. It’s also expensive in other ways. FSI is the second-top sector overall in terms of the average cost of a data breach. This is estimated to be over $6m per incident, assuming no more than 113,000 records are compromised.
However, there’s increasingly a regulatory imperative for FSI firms to rethink their Cybersecurity strategy. Any operating in the EU now has to comply with a rigorous new set of requirements in the EU Digital Operational Resilience Act (DORA). From January 1, 2025, those in the UK deemed to be critical third parties (CTPs) will be required to put in place a number of “technology and cyber risk management and operational resilience measures”.
A new mindset
So what does this mean in practice? Modern technology environments are dynamic, with new assets appearing and disappearing. Furthermore, new vulnerabilities are emerging and fresh misconfigurations surfacing on a daily or even hourly basis. Managing risk across this vast, incredibly volatile and highly distributed environment requires a new approach. Traditional perimeter defences are no longer sufficient.
Instead, FSI firms need continuous monitoring of risk across their entire attack surface. From endpoints and networks to servers and cloud workloads. Ideally, such a platform will flag areas of concern and either suggest improvements or automatically remediate. It could be something as simple as changing an insecure password, or patching a critical vulnerability newly published by a key vendor. This is the way to build resilience for the long term.
But there’s more. Some threats will always sneak through corporate defences. That’s why it’s also vital to expand security operations capabilities with AI-driven analytics and cross-layer detection and response (XDR). The goal is to correlate threat data across multiple layers and automatically prioritise alerts for stretched analyst teams. Robust incident response processes are also key here, to ensure no time is wasted in containing the threat and minimising any damage caused.
More broadly, it’s about fostering a culture of cyber resilience. Continuous improvement, proactive defence, and a willingness to adapt are ingrained in the corporate mindset. More Cybersecurity regulations are promised by the government in 2025. The clock’s ticking.
Industry thought leaders from Marqeta, the global modern card issuing platform, offer a detailed outlook of the fintech industry for 2025, with predictions around personalisation, digitalisation and the evolving regulatory landscape
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Payments will turn fully personal, with tailored credit, rewards, and BNPL at scale in 2025
In my opinion, a major global payment trend of 2024 has been hyper-personalisation. A new generation of customers is driving a shift toward personalisation at scale, expecting their FinTech services to be unique and tailored to individual needs. Modern consumers want a future where financial services integrate seamlessly into their digital lives and keep pace with their evolving needs.
As a result, we are seeing trends, such as personalised credit offerings and rewards booming. In an industry with increasingly low consumer loyalty, brands and financial institutions must go beyond traditional interactions with FinTech. For example, the recent Marqeta State of Credit report found that of UK consumers who use more than one credit card, 43% confirmed that they would use a credit card more frequently if better rewards were offered. By moving to a dynamic, rather than set rewards structure, consumers can earn benefits tailored to their spending habits and preferences in real time.
Increasingly with innovations like Buy Now Pay Later (BNPL), consumers are guided to credit options specifically suited to them and their needs. In 2025, we will increasingly see personalised BNPL payment plan options being offered in real time. Often within existing payment apps and products we already use daily. We are also seeing B2B payments emerging as a strong trend. Ensuring gig workers, sellers and partners get paid efficiently while offering robust expense management and financing. I anticipate we’ll see more demand for innovative B2B payment solutions that enable seamless money management across 2025.
2025 will be a year of rapid innovation in financial services
In today’s digital-first world, traditional payment infrastructure is no longer enough to keep up with the demands of consumers. The front door of a bank is now an app, digital wallet usage is increasing. New, flexible services have a growing prevalence on the market. In 2025 and beyond, customers will continue to drive a shift toward modern services which keep up with the rate of digital and mobile innovation.
The ramifications of changing consumer trends could lead to the traditional roles of banks, such as ATMs and as physical branches, disappearing. To ensure continued customer loyalty, all financial service providers will be forced to innovate and offer consumers the embedded, seamless and instantaneous services that they desire.
Consequently, across 2025, we are likely to see new technology and solutions being offered to reduce unnecessary friction for consumers trying to pay and get paid. We are already seeing increased demand for Accelerated Wage Access (AWA). A Marqeta study shows that 74% of gig workers ages 18-34 would be interested in an employer who offered an option to get paid immediately. As businesses and workers grow tired of cash flow restrictions and having to wait for monthly pay slips in an otherwise instant, digital world. As new services evolve, competition in Fintech will be enhanced and the financial industry will be forced to grow and evolve.
Nicholas Holt, Head of Solutions and Delivery, Europe
Proactive compliance strategies will lay the foundation for fintech in 2025
With banking and FinTech partnerships under increasing regulatory scrutiny, the stakes around compliance have never been higher. In this environment, Fintechs can no longer afford a reactive approach to compliance. Instead, they should adopt proactive compliance strategies that go beyond simply seeking to avoid fines and that are embedded into the everyday makeup of their culture and product strategies, helping to build trust, ensure stability, and foster sustainable growth.
At Marqeta, we’re committed to embedding compliance into our company’s culture, helping to mitigate risks and create a foundation for long-term success for us and our customers. Proactive compliance strategies allow organisations to leverage advanced tools and position themselves to adapt to shifting regulatory demands while showcasing a genuine commitment to transparency.
Alex Mifsud, CEO of Embedded Finance platform Weavr, on the outlook for Banking-as-a-Service (BaaS)
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If any FinTech trend is painfully making its way through the archetypical Gartner hype cycle, it is Banking-as-a-Service or BaaS. At its core, BaaS is an API-driven platform enabling third-parties to develop financial products that make use of the banking and payments capabilities, and the regulatory permissions, of financial institutions that offer it.
This means non-regulated businesses can, in effect, make financial services available to customers without having a banking or financial licence themselves. The bank gets to monetise their licence efficiently, while FinTechs bring ingenuity, market insight and usually, superior digital experiences to customers. It sounds wonderful in concept, but the reality is far more complex. The recent collapse of Synapse, a prominent BaaS provider, as well as the sheer number of regulator interventions across many developed world economies, has highlighted critical vulnerabilities in the BaaS model.
The BaaS Model
While no one, including regulators, seems to be denying the opportunity to create customer value, it is increasingly evident that the BaaS model as it has developed over the past five years will not survive in its present form. There are several evolutionary directions that are being talked about for BaaS, even if not yet established. Here, I would like to present a specific variant. The European regulatory model not only makes this possible, but also presents a strong win-win opportunity for banks to collaborate with non-bank financial institutions like e-money institutions and payment institutions (I’ll use the acronym “EMI” to mean either of these). In this model, banks get access to the benefits of BaaS with minimal exposure to the now-better-understood risks. Moreover, EMIs get access to the powerful capabilities and economics that are the sole preserve of banks as deposit-taking institutions.
These collaborations – in effect, a multi-tier approach to BaaS – should offer safer exposure to Embedded Finance for banks. And richer capabilities available to embedders, and ultimately, end-customers.
Antipattern Matching
Recent announcements that Clearbank, a digitally-savvy clearing bank now promoting itself as an embedded finance platform, has hit profitability is a welcome tonic to investors despairing of the stream of bad news hitting BaaS players in the US and Europe. Even JP Morgan, one of the most respected global banks, has shown that size is no obstacle to ambitious, or even radical, innovation, as it also offers Embedded Finance. And at the other end of the size scale, Griffin announced earlier this year that, having secured a banking licence specifically to offer BaaS and embedded finance, it is now ready to start operating.
In the face of the mentioned challenges that EMI BaaS players have faced with regulators in Europe, some in the investment community have been proclaiming that, to do BaaS effectively, a financial institution needs to have a banking licence. An e-money or payment institution licence simply won’t cut it.
While such pattern matching and extrapolation is understandable, it is not necessarily correct, so let’s look at an alternative view: both EMIs and banks are viable financial institutions to support Embedded Finance, but each have strengths and weaknesses. Better still, by working together in a multi-tiered configuration, each type of financial institution can play to its strengths enabling the combination to deliver high capability, highly adaptive delivery models of Embedded Finance.
Banks doing Embedded Finance
While a banking licence does confer specific advantages – mainly, that deposit-taking provides one of the most attractive financing models for financial institutions to raise funds for lending – there are also disadvantages to being a bank compared to being an EMI. In the UK, for instance, banks need to hold more capital than EMIs, and perhaps more importantly, banks are supervised by both the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA), the latter of which does not supervise EMIs.
Navigating innovative operating models like Embedded Finance with two regulators can create greater risk aversion and therefore slow down or even discourage the experimentation that is required to find the right risk-value formula that works. We know from recent experience that getting the balance right between great customer value and sustainable compliant operations can be a delicate balance.
The Benefits
One way to square the circle is for banks to provide wholesale financial services to EMIs which then serve end customers on their own licences in turn. While this doesn’t completely insulate the bank from censure in the event that the rules are broken – for instance, if money laundering occurs – it does place the biggest share of the burden of the customer on-boarding and monitoring compliance on the EMI. Given that EMIs were created initially to support money-related activities for a digital world, it may be easier for them by working with a single regulator to achieve the right balance. It also allows large banks with cumbersome on-boarding processes designed for large corporations to get access, via the EMI, to a community of small and medium sized business customers that, in aggregate, represent meaningful business volumes for the bank.
There is a strong win-win in this kind of bank-EMI collaboration, especially for banks which are used to dealing with other financial institutions as customers. EMIs, in turn, can source a range of wholesale financial services from multiple banks: foreign exchange from one, and lending capacity from one or more others.
A New Pattern: Multi-Tiered Banking with BaaS
The future of BaaS lies in collaboration. A multi-tiered banking model allows institutions to combine their strengths strategically. Such a model not only optimises the use of resources but also enhances the value proposition of BaaS by incorporating the strengths of various financial entities. EMIs, with their ability to offer commercial cards, credit lines, and foreign exchange services, reduce the risk for larger institutions and open doors for broader innovation.
Simon James, CEO of PayComplete, on why 2024 was a pivotal moment for cash and what the future holds
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After several years of doom and gloom and many proclaiming the death of cash, the last 12 months have well and truly put that idea to bed. Despite many expecting the COVID pandemic to be the last nail in the coffin, four years later, cash is still in widespread use. The future looks bright. Recent figures from the British Retail Consortium (BRC) underscore the story of 2024… Cash is no longer on the way out and is set to remain a critical part of the payment ecosystem and economy for the foreseeable future.
What happened with cash?
The resilience and ongoing importance of cash to payments, finance, and the economy is down to two factors. Firstly, it’s clear now that consumers care. Recent research from PayComplete’s ‘Why won’t cash just die?!’ report found 89% of consumers view the ability to pay in cash as important to customer satisfaction. More importantly, when it is removed as a payment option, only 26% of consumers comply. Meanwhile, an even larger group (36%) vote with their feet and walk away without making a purchase.
It’s not just customer experience that’s impacted by the absence of cash as a payment option. Brand perception also suffers. Research findings discovered nearly half (47%) of consumers believe organisations that don’t accept it are putting profits ahead of customer satisfaction. Moreover, when denied the opportunity to pay in cash, respondents felt a range of emotions, including inconvenience (54%), outright annoyance (52%) and, for those who walked out without making a purchase, anger (16%). Failure to offer this payment choice is a big risk for businesses. It can negatively impact customer satisfaction, brand reputation, and lead to outright anger from customers.
However, the value consumers place on cash goes beyond it being a way of completing a transaction. It is also seen as critical to supporting local communities. Interestingly, the research found 65% of consumers know card payments incur charges for businesses, resulting in nearly a quarter (22%) actively choosing to pay in cash instead. In fact, over half (57%) of consumers want to help businesses save money by paying in cash, which jumps to 71% for small businesses, tipping, and personal services. Paying with cash, therefore, is not simply a way of transacting with a company. For many shoppers, it’s a sign of support.
Regulators and lawmakers protect cash
However, consumers continuing to care is only part of the story. Furthermore, an important factor has been the steps regulators and governments have taken to protect access to cash. In the UK, 2024 was the year that the FCA’s Access to Cash came into force. This made it a legal requirement for banks and building societies across the UK to provide a minimum level of access to cash. Across the pond, similar measures have been taken by Connecticut, Massachusetts, Colorado and Tennessee as US states move to enshrine access to cash into law. With lawmakers realising its importance, and creating regulations to protect access to it, the long-term future of cash is now secure.
What does it all mean?
2024 has been a watershed year for cash and its future. No longer are there debates and discussions about a cashless society. Instead, it is here to stay, and, with that certainty, it makes it far easier for businesses to plan for their own future. Businesses waiting to see what would happen with cash before deciding if it was part of their future now have a conclusive answer and can plan accordingly. Moreover, those who have already taken steps to move towards a cashless future will need to reverse course or risk facing consumer wrath.
The rise of CashTech
The good news for businesses is that cash management and handling technology hasn’t stood still these past few years. There is a combination of smart hardware and software to finally unify management, processing, and handling. CashTech is a new set of solutions that make it quicker, easier, and more efficient than ever before for businesses to handle cash. Combining hardware and software, CashTech solutions enable enterprises to digitise their handling. Making it easy to assess business-critical areas like cash flow management and better support accounting and business management processes. By automating handling, businesses can also avoid the unnecessary costs of discrepancies and inefficiencies from manual processes.
In the coming years, when we look back on 2024, we will see it as the year the future for cash was confirmed. Talk of a cashless future and the death of hard currency was wide of the mark. While cash may not usurp debit and credit card payments, neither will they bring about its end. With the future now clear, it’s time for businesses to adopt CashTech in 2025 and turn inefficient processes into a game-changing competitive advantage.
About PayComplete
PayComplete is the global leader in cash management solutions, combining bleeding edge hardware solutions with game changing software, unifying cash management with other key payments and operational systems. Dedicated to innovating self-service experiences and operations for both consumers and employees, The PayComplete IoT platform is made up of an adaptable set of SaaS and machine software, intelligent devices, and professional, technical and merchant services. PayComplete Connect unifies the management of transactions, users, devices, and data across the enterprise, bringing digital precision to cash transactions and systems. PayComplete serves a broad range of industries, including retail, transportation, financial services, vending, cash centers, mints and more.Industry leaders, work with PayComplete to make their cash transaction-based businesses more innovative, agile, and efficient.
Glenn Fratangelo, Head of Fraud Product Marketing & Strategy at NICE Actimize, on financial services fraud prevention in 2025.
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2024 marked a turning point in financial crime management with the advent of Generative AI (GenAI). McKinsey estimates GenAI could add a staggering $200-340 billion in annual value to the global banking sector. A potential revenue boost of 2.8 to 4.7%. This underscores the transformative potential of GenAI. IT IS rapidly evolving from a futuristic concept to a powerful tool in the fight against financial crime. However, 2024 was just the prelude. 2025 promises to be the year GenAI truly comes into its own. Unlocking transformative capabilities in combating increasingly sophisticated threats.
This evolution is not merely desirable, it is essential. The Office of National Statistics (ONS) reported a concerning 19% year-over-year increase in UK consumer and retail fraud incidents in 2024, reaching approximately 3.6 million. This stark reality underscores the urgent need for financial institutions (FIs) and banks to bolster their defences against financial crime. In 2025, leveraging the power of GenAI is no longer a luxury, but a necessity for protecting customers and safeguarding the financial ecosystem.
The evolving GenAI-powered fraud landscape
Fraudsters have embraced GenAI as a potent weapon in their arsenal. This technology’s ability to create realistic fakes, automate attacks and mimic customers creates a significant threat to the financial landscape.
Deepfake technology has become a particularly insidious tool. By generating highly realistic voice and facial fakes, fraudsters can bypass remote verification processes with ease. This opens doors to unauthorised access to sensitive information, enabling account takeovers and other fraudulent activities.
In addition, the rise of synthetic identities further complicates the challenge. By blending real and fabricated data, fraudsters can create personas that seamlessly infiltrate legitimate customer profiles. These synthetic identities are extremely difficult to detect, as they appear indistinguishable from genuine customers. Making it challenging for institutions to differentiate between legitimate and fraudulent activities.
Phishing scams have also undergone a dramatic evolution, becoming more sophisticated and personalised. AI-driven techniques allow fraudsters to craft personalised, convincing emails that mimic legitimate communications, resulting in significant data breaches.
Harnessing GenAI
GenAI is being used by criminals – presenting a significant challenge in the realm of fraud. It requires advanced AI capabilities such as real-time behavior analytics that use machine learning to continuously analyse all entity interaction and transaction patterns. This can identify subtle deviations from a customer’s typical behaviour. It allows for initiative-taking and the flagging of suspicious activity before any damage occurs. Moreover, providing a significant advantage over traditional, rigid rule-based systems that often fail to detect nuanced threats.
Fraud simulation and stress testing using GenAI can also empower institutions to proactively assess the resilience of their systems. By simulating potential fraud scenarios, financial institutions can identify vulnerabilities and train detection models to recognise emerging tactics. Furthermore, this proactive preparation ensures that defences remain ahead of fraudsters’ evolving methods, creating a more robust and adaptable security infrastructure.
Low volume high value fraud, such as BEC or other large value account to account transfers usually lack the quantity of data needed to optimise models. GenAI can address this by creating synthetic data that mimics real-world scenarios. This approach significantly improves the accuracy and robustness of detection models, making them more effective against new and unforeseen threats.
GenAI has the potential to transform the investigation process by automating tasks such as generating alerts and case summaries, as well as SAR narratives. This automation not only minimises errors but also frees analysts from mundane tasks, allowing them to focus on higher-value activities. The result is a significantly accelerated financial crime investigation process, enabling institutions to respond to threats with greater speed and efficiency.
The battle against fraud in 2025 and beyond
The battle against financial fraud in 2025 and beyond is an undeniable arms race. Fraudsters, wielding generative AI as their weapon, will relentlessly seek to exploit vulnerabilities. To counter this evolving threat, financial institutions must embrace AI to outmanoeuvre fraudsters and proactively protect their customers.
The future of fraud and financial crime prevention hinges on our ability to innovate and adapt. Institutions that view GenAI not just as a challenge, but as an opportunity, will emerge as leaders in this fight. AI is a force multiplier for institutions striving to combat fraud and financial crime, empowering them with smarter, faster, and more adaptive defences, we can create a more secure and trustworthy financial ecosystem. The choice to innovate in the face of adversity will define the path forward and shape the future.
Martin Greenfield, CEO of Quod Orbis, on a troubling paradox within the cybersecurity landscape: despite substantial investments in security infrastructure, confidence levels and actual capabilities remain worryingly misaligned.
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Financial institutions face concrete regulatory pressure on Cybersecurity with the European Union’s Digital Operational Resilience Act (DORA) coming into force in February. This landmark regulation demands robust ICT risk management and comprehensive security monitoring. Currently, many organisations continue to rely on disparate tools and spreadsheets that may leave them vulnerable to sophisticated threats. These include AI-powered deep fakes and targeted spear phishing campaigns.
This challenge transcends the financial sector as organisations across all industries face mounting pressure to demonstrate both security effectiveness and regulatory compliance. Our research reveals a stark reality. Organisations typically maintain an average of 19 security solutions per team. However, a surprising 41% still cite insufficient technology as the primary obstacle to maintaining a robust security posture.
This misalignment points to a fundamental issue. Organisations must recognise effective cybersecurity isn’t achieved through quantity of tools, but through strategic selection of the right solutions. Furthermore, perhaps most concerning is the false sense of security prevalent among IT decision-makers. While 93% express confidence in their infrastructure visibility tools, an alarming 95% acknowledge difficulties in accessing specific digital assets over the past year. This creates dangerous blind spots leaving organisations exposed to both security breaches and compliance shortfalls.
Understanding the Cybersecurity challenge
Today’s enterprise infrastructure resembles a tapestry of critical assets, connections and endpoints. To put this complexity into perspective: IT teams now manage an average of 31 endpoints per person across their organisation. For a company of 1,000 employees, this translates to more than 30,000 devices requiring constant monitoring and protection. This challenge intensifies with the widespread adoption of cloud services, hybrid working arrangements and an ever-growing ecosystem of connected devices.
Scale amplifies these difficulties markedly. Our research reveals organisations with more than 1,250 employees demonstrate the lowest confidence in their existing tools (88%) and face the greatest challenges in accessing critical assets (97%). Moreover, these larger enterprises typically wrestle with an unwieldy combination of legacy systems, bespoke solutions and modern platforms. This results in notably lower visibility rates (79%) compared to their smaller counterparts.
Perhaps most revealing is the stark confidence gap between technical and compliance teams. While 94% of information security directors express confidence in their system visibility, merely 66% of compliance directors share this outlook. This disparity exposes a crucial misalignment between technical capabilities and compliance requirements. One that poses serious operational risks as regulatory frameworks increasingly demand continuous monitoring. Organisations clinging to manual compliance processes face an unstable burden. Teams are stretched thin handling routine tasks while regulations grow more complex. Embracing automated technologies to handle routine monitoring requirements will allow compliance teams to pivot from being reactive box-checkers to strategic risk managers.
Moving from reaction to prevention
The impulse to combat emerging threats by rapidly acquiring new security solutions has led many organisations to create sprawling, inefficient systems. These often compound the very problems they aim to solve.
This reactive approach has trapped organisations in a costly cycle of diminishing returns. Despite substantial technology investments, nearly 40% of firms report a troubling lack of actionable intelligence, while 37% struggle with budget limitations. This paradox is increasingly drawing board-level scrutiny. And rightfully so. After years of approving emergency technology purchases to plug cybersecurity gaps, boards are now questioning the value of new investments. Furthermore, tthis creates a dangerous stalemate: organisations need smarter, not just more, technology investment.
However, a more strategic approach is gaining traction through integrated system monitoring platforms. These comprehensive solutions unite previously disconnected tools under a single dashboard. This can offer real-time visibility across the entire cybersecurity landscape. This unified approach enables teams to identify and address vulnerabilities before they evolve into security incidents. A capability that resonates with the 82% of organisations who recognise enhanced visibility would substantially strengthen their cybersecurity posture.
It’s encouraging that 72% of IT teams have secured increased budgets over the past three years. However, the path forward requires more than mere financial investment. Organisations must shift from reactive spending to strategic deployment. Although this presents its own challenge: convincing board members that additional tooling represents an investment in comprehensive visibility rather than merely plugging security gaps.
The path forward
The transformation from fragmented security to comprehensive oversight demands more than technological upgrades. It requires a fundamental reimagining of how organisations approach cybersecurity monitoring and compliance.
The advantages of this strategic shift are compelling and quantifiable. Our analysis reveals security teams anticipate multiple efficiency gains: 38% expect automation to streamline document creation, 37% foresee improved board pack preparation, and 36% anticipate dedicating more time to strategic security assessments. Perhaps most significantly, 35% predict a reduction in human error alongside enhanced data accuracy. The efficiency gains are substantial. Teams could reclaim up to 60 hours annually per member on board reporting alone, time better invested in strategic security initiatives.
With regulatory frameworks growing increasingly sophisticated across sectors, including the forthcoming DORA regulation, maintaining current practices is no longer viable. The disparity between perceived and actual security capabilities poses a tangible risk that organisations must address proactively.
About Quod Orbis
Quod Orbis is the single source of truth across security, risk and compliance, providing an orchestration layer for the entire tech stack whether in the cloud, on-premise, legacy or bespoke. Founded in 2018, Quod Orbis became part of Dedagroup, one of the leading Italian IT players, in 2024.
A pioneer in Continuous Controls Monitoring (CCM), Quod Orbis provides complete and constant visibility into a company’s cybersecurity, compliance and risk posture. Quod Orbis’ ability to connect with every piece of technology within a business, unrivalled automation capabilities and continual support enables the company to serve a global client base across a wide variety of industries.
‘FlyEasy’ parametric cover is now available on Zurich Indonesia’s Travel Product: offering real-time lounge access for delayed flights
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Blink Parametric, in partnership with Zurich, has launched flight disruption assistance solution ‘FlyEasy’. Coverage is on the Zurich Indonesia direct channel via the Zurich Edge platform. Leveraging parametric technology, the proposition has been designed to instantly activate coverage benefits upon confirmation of a flight delay. This seamless, fully-digital approach provides ultimate convenience to customers, relieving them of traditional claims processes and allowing them to enjoy their travels with greater peace of mind.
The expansion is part of the agreement signed in January 2024. The award-winning flight delay solution can now be offered to Zurich’s customers across Asia Pacific via the Zurich Edge Platform.
Zurich Asia Pacific Network
This integration is the second rollout this year under the framework agreement to offer Blink Parametric solutions to Zurich Asia Pacific network partners and customers across Singapore, Hong Kong, Malaysia, Indonesia and Japan. The first was with Singapore-based OTA Klook in March.
Once a customer registers their flight details pre-travel, Blink Parametric monitors that flight in real-time. Also, in the event of a flight delay of two-hours, the customer will automatically be offered real-time assistance of complimentary access to a VIP airport lounge. The lounge pass will have extended validity with a shelf-life of six-months if not used on the day of disruption. The benefit will be applicable for single trip and annual multi-trip executive and premier international travel plan insurance customers. No claims filing or application processing is required.
Sukma Darman, Head of Digital, Zurich Indonesia commented, “One of Zurich Edge’s key objectives is to bring a fresh perspective on insurance to our partners and customers. We can then deliver personalised, customer-centric solutions using next-gen technology. Blink Parametric have helped us to achieve successful travel insurance integrations for the Asia Pacific region throughout this year. This includes delivery of innovative real-time assistance for our valued customers when they need us.”
Blink Parametric & FlyEasy
“This latest Zurich Indonesia integration coincides directly with our strategic move to further expand and support our business development and partner activities across the APAC region,” says Richard Pollard, Director of Strategic Accounts, Blink Parametric. “Furthermore, our work with the Zurich team this year has been significant, with two successful launches to date. It’s now possible for Zurich partners to tap into the Zurich Edge platform and deploy our real-time travel assistance solution under the FlyEasy brand with speed and efficiency. Exactly how it should be!”
Blink Parametric is recognised as one of the most innovative and successful providers of travel InsurTech solutions to insurers world-wide. It offers real-time assistance and service choices to travellers impacted by flight disruption events. Blink Parametric travel solutions are fully customisable and designed to deliver operational efficiency. Moreover, processing high frequency, low value travel insurance claims when the traveller needs immediate real-time claim resolution.
Benjamin Avraham, CEO and Founder at Okoora – the creators of Automated Business Currency Management, on Embedded Finance in global trade and the challenges of FX risk in global expansion
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Embedded Finance is rapidly emerging as a transformative force in cross-border payments, reshaping how businesses handle transactions across borders. By making payments more efficient and accessible, it is becoming a key tool for companies navigating the complexities of global trade. While the concept isn’t entirely new, its adoption has accelerated, with the sector projected to generate an estimated $230 billion in revenue by 2025.
Trends in Embedded Finance for Cross-Border Payments in 2025 and beyond
Embedded Finance is poised to reshape cross-border payments. It offers innovative solutions to address inefficiencies and create experiences with reduced friction for businesses and consumers alike.
A key trend is the integration of multi-currency wallets. These enable real-time currency conversion and support localised payment methods tailored to specific regions. This not only reduces transaction delays but also enhances accessibility for global users. At the same time, embedded risk management tools are gaining traction. These provide businesses with automated FX hedging options and predictive analytics to better manage currency volatility.
Super apps with embedded cross-border capabilities are becoming more prevalent. These offer all-in-one solutions for payments, investments, and FX management. These apps are especially impactful in promoting financial inclusion, allowing underserved markets to access cross-border payment systems with ease.
The Challenge of FX Risk in Global Expansion
For businesses aiming to expand globally and remain competitive, understanding and managing foreign exchange (FX) risk is paramount. Currency volatility, intricate markets, and hidden costs remain significant hurdles for companies operating internationally. Moreover, the solution lies in leveraging embedded currency risk management, which integrates FX tools directly into business workflows to streamline and mitigate these challenges.
Historically, small and medium-sized businesses (SMBs) have relied on traditional banks for cross-border payment services. However, slow, opaque, and cumbersome banking processes often fail to meet the modern demands for a frictionless experience. SMBs today require more than just service providers—they need trusted partners who truly understand their unique needs and can deliver tailored solutions. Embedded Finance levels the playing field by giving SMBs access to financial tools previously reserved for larger corporations, empowering them to compete effectively in global trade.
On a parallel track, larger players such as payment institutions, corporates, and banks are increasingly recognizing the potential of embedded finance to unlock new market opportunities and enhance the financial ecosystem. According to a recent report by Publicis Salient, embedded finance revenues are expected to grow by 40% annually in the coming years, underlining its critical role in the evolution of global financial services. This is encouraging organizations without in-house capabilities to actively seek partnerships with fintech providers to deliver integrated, relevant, and accessible financial services, while also creating new revenue streams.
Key features of Embedded Finance for Cross-Border Transactions
As businesses continue to navigate the complexities of cross-border transactions, Embedded Finance offers an array of powerful features that streamline processes, enhance efficiency, and mitigate risks. By integrating financial tools directly into business systems, companies can improve operations, reduce costs, and gain greater control over their international payments and currency management.
Below are the key features that make Embedded Finance a game-changer for businesses engaged in global trade:
Streamlining Payments
Frictionless Transactions: Embedded finance integrates payment processing directly into business systems, enabling businesses to send and receive funds across borders without needing separate third-party platforms.
Localised Payment Methods: It supports local payment systems, ensuring businesses can transact with customers and partners in their preferred currencies and payment formats.
FX Risk Management
Automated Hedging: Embedded tools can automatically hedge against currency fluctuations, reducing financial exposure and safeguarding profit margins.
Predictive Analytics: Advanced analytics help businesses anticipate and respond to currency market threats and opportunities.
Reducing Costs & Delays
Lower Fees: By bypassing traditional banking intermediaries, embedded finance platforms often reduce transaction costs.
Faster Settlements: Transactions are processed more quickly, enabling businesses to manage cash flow and working capital more efficiently.
Enhancing Transparency
Clearer Pricing: Embedded finance platforms provide real-time insights into exchange rates and transaction costs, ensuring businesses have full visibility into cross-border payment processes.
Regulatory Compliance: Built-in compliance tools streamline adherence to local regulations, reducing administrative burdens and risks of non-compliance.
Access to Financing
Embedded Credit & Loans: Businesses can access trade financing or working capital loans directly within platforms, supporting growth and smoothing cash flow challenges during cross-border trade.
Supply Chain Support: Financing solutions embedded in procurement platforms help businesses manage large international purchases with ease.
Simplifying Tax & Regulatory Compliance
Automated Tax Calculations: Embedded tools help businesses calculate duties, taxes, and other levies for cross-border transactions.
Built-in Compliance Checks: Solutions automatically ensure compliance with local and international regulations, saving time and reducing risks.
The road ahead for Embedded Finance
The evolution of embedded finance holds the potential to unlock new market opportunities and enhance the global financial ecosystem. Through strong collaboration among fintech companies, regulators, and technology providers, the industry can pave the way for embedded finance to deliver highly relevant financial services in an accessible manner to meet the needs of businesses globally.
About Okoora
Okoora is a leading fintech provider, offering businesses worldwide the financial infrastructure needed to scale their international operations. Recognized by CNBC and Statista as one of the world’s top 250 fintechs, the company’s automated platform, API, and embedded finance solutions empower businesses to collect and send payments, manage multi-currency accounts, and hedge FX risks. Okoora enables seamless operations in over 100 currencies and 180 countries.
Interface looks back on another year of ground-breaking tech transformations and the leaders driving them. We spoke with tech leaders…
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Interface looks back on another year of ground-breaking tech transformations and the leaders driving them. We spoke with tech leaders across a broad spectrum of sectors – from banking, health and telcos to insurance, consulting and government agencies. Read on for a round up of some of the biggest stories in Interface in 2024…
EY: A data-driven company
Global Chief Data Officer, Marco Vernocchi, reflects on the transformation journey at one of the world’s largest professional services organisations.
“Data is pervasive, it’s everywhere and nowhere at the same time. It’s not a physical asset, but it’s a part of every business activity every day. I joined EY in 2019 as the first Global Chief Data Officer. Our vision was to recognise data as a strategic competitive asset for the organisation. Through the efforts of leadership and the Data Office team, we’ve elevated it from a commodity utility to an asset. Furthermore, our formal strategy defined with clarity the purpose, scope, goals and timeline of how we manage data across EY. Bringing it to the centre of what we do has created a competitive asset that is transforming the way we work.”
Lloyds Banking Group: A technology and business strategy
Martyn Atkinson, CIO – Consumer Relationships and Mass Affluent, on Lloyds Banking Group‘s organisational missive around helping Britain prosper, which means building trusted relationships over customer lifetimes by re-imagining what a bank provides.
“We’ve made significant strides in transforming our business for the future,” he reveals. “I’m really proud of what the team have achieved with technology but there’s loads more to go after. It’s a really exciting time as we become a modern, progressive, tech-enabled business. We’ve aimed to maintain pace and an agile mindset. We want to get products and services out to our customers and colleagues and then test and learn to see if what we’re doing is actually making a meaningful difference.”
Arianne Gallagher-Welcher, Executive Director for the USDA Digital Service, in the Office of the OCIO, on the USDA’s tech transformation and how it serves the American people across all 50 states.
“If you’d told me after I graduated law school that I was going to be working at the intersection of talent, HR, law, regulations, and technology and bringing in technologists, AI, and driving innovation and digital delivery, I’d say you were nuts,” she says. “However, it’s been a very interesting and fulfilling journey. I’ve really enjoyed working across a lot of different cross-government agencies. USDA is the first part of my career where I’m really looking at a very specific mission-driven organisation versus cross-agency and cross-government. But I don’t think I’d be able to do that successfully without the really great cross-government experiences I’ve had.”
Virgin Media O2 Business: A telco integration supporting customers
David Cornwell, Director – SMEs, on the unfolding telco integration journey at Virgin Media O2 Business delivering for Business customers
“If you’ve got the wrong culture, you can’t develop your people or navigate change…” David Cornwell is Director of Technical Services for SMEs at Virgin Media O2 Business. He reflects on the technology journey embarked upon in 2021 when two giants of the telco space merged. A new opportunity was seized to support businesses with the secure, reliable and efficient integration of new technology.
Nick Edwards, Group CDO at The AA, on the organisation’s incredible technology transformation and how these changes directly benefit customers.
“2024 has been a milestone year for the business,” explains Edwards. “It marks the completion of the first phase of the future growth strategy we’ve been focused on since the appointment of our new CEO, Jakob Pfaudler.” Revenues have grown by over 20%, allowing The AA to drive customer growth with technology. “All of this has been delivered by our refreshed management team,” he continues. “It reflects the strength of our people across the business and the broader cultural transformation of The AA in the last three years.”
Dave Murphy, Financial Services Lead, Global at Publicis Sapient, gave us the lowdown on its third annual Global Banking Benchmark Study.
The report reveals that artificial intelligence (AI) dominates banks’ digital transformation plans, signalling that their adoption of AI is on the brink of change. “AI, machine learning and GenAI are both the focus and the fuel of banks’ digital transformation efforts,” he says. “The biggest question for executives isn’t about the potential of these technologies. It’s how best to move from experimenting with use cases in pockets of the business to implementing at scale across the enterprise. The right data is key. It’s what powers the models.”
Chief Information Officer Simon Birch and Chief Customer & Transformation Officer Danielle Handley discuss Bupa’s transformation journey across APAC and the positive impact of its Connected Care strategy.
“Connected Care is our primary mission. We’ve been focusing our time, investment and energy to reimagine and connect customer experiences,” says Simon. “It’s an incredibly energising place to be. Delivering our Connected Care proposition to our customers is made possible by the complete focus of the organisation and the alignment leaders and teams have to the Bupa purpose. Curiosity is encouraged with a focus on agility, collaboration and innovation. Ultimately, we are reimagining digital and physical healthcare provision to customers across the region. Furthermore, we are providing our colleagues with amazing new tools to better serve our customers throughout all of our businesses.”
Gregg Aldana, Global Area Vice President, Creator Workflows Specialist Solution Consulting at ServiceNow, on how a disruptive approach to technology can drive innovation.
While the whole world works towards automating as many processes as possible for efficiency’s sake, businesses like ServiceNow are supporting that change evolution. ServiceNow’s platform serves over 7,700 customers across the world in their quest to eliminate manual tasks and become more streamlined. We spoke to Aldana about how it does this and the ways in which technology is evolving.
Innovation Group: Enabling the future of insurance
James Coggin, Group Chief Technology Officer on digital transformation and using InsurTech to disrupt an industry.
“What we’ve achieved at Innovation Group is truly disruptive,” reflects Group Chief Technology Officer James Coggin. “Our acquisition by one of the world’s largest insurance companies validated the strategy we pursued with our Gateway platform. We put the platform at the heart of an ecosystem of insurers, service providers and their customers. It has proved to be a powerful approach.”
Chief Information Officer William Sanson-Mosier on the development of advanced technologies to empower emergency responders and enhance public safety
“Ultimately, my motivation stems from the relationship between individual growth and organisational success. When we invest in our people, and we empower them to innovate with technology and problem-solve, they can deliver exceptional results. In turn, the organisation thrives, solidifying its position as a leader in its field. This virtuous cycle of growth and innovation is what drives me.” CIO William Sanson-Mosier is reflecting on a journey of change for the San Francisco Police Department (SFPD). Ignited by the transformative power of technology to enhance public safety and improve lives.
Nick Merritt, Executive Director at Designit, on six developments shaping the future of banking in 2025
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Retail banks are entering 2025 with a heady mix of ambition and trepidation. A bewildering blend of technological wizardry and ever-shifting customer expectations has forced banks into a relentless cycle of adaptation. To stay ahead, six key areas are emerging as the lodestars guiding their strategies for the coming year.
Digital Transformation and Automation – Predicting Your Needs Before You Have Them
Imagine a world where banks predict your needs before you’ve even realised them. From AI-driven chatbots that never sleep to robo-advisors whispering bespoke investment tips into your ear, automation is rewriting the rulebook on customer interaction. But the magic isn’t confined to the shiny front-end; back-office systems are also getting a makeover. Robotic Process Automation (RPA) is busy in the engine room, banishing inefficiencies and sidestepping human error with quiet efficiency.
And then there’s the matter of personalisation—a concept that banks are finally treating as more than a marketing buzzword. Armed with advanced data analytics, banks are no longer just responding to customer needs—they’re predicting them. Pre-approved loans or a savings plan tailored to your Friday night wine habit? No problem.
Cybersecurity: Evolving as Fast as the Threats
With this digital power comes a greater need for vigilance. Cybercriminals are evolving just as quickly, turning cybersecurity into a battlefield. AI-driven fraud detection tools now scan for anomalies with hawk-like precision, while biometric authentication methods—fingerprints, faces, even voices—transform our bodies into passwords.
Cyber resilience has become essential, ensuring banks bounce back swiftly from attacks. Trust, in banking as in life, remains hard-won and easily lost.
Sustainability: ESG as a Competitive Advantage
Environmental, Social, and Governance (ESG) criteria have transitioned from being a footnote to taking centre stage. Customers are no longer content with bland promises of responsibility—they’re demanding action. Enter green loans with their tempting interest rates, ESG investment funds that let you save the planet while saving for retirement, and carbon-neutral pledges that make you feel virtuous about your overdraft.
It’s not just a moral imperative; it’s good business sense. In a world increasingly attuned to sustainability, ESG is a differentiator. Banks that can convincingly wear the green badge of honour are more likely to attract eco-savvy customers and forward-thinking investors alike.
Embedded Finance & Partnership Models
Embedded Finance might sound like jargon, but it’s quietly reshaping how we interact with money. Why go to a bank when the bank can come to you—disguised as a “Buy Now, Pay Later” button on your favourite shopping app or as a seamless payment option in your rideshare app? Banks are waking up to the fact that ecosystems, not high-street branches, are where the action is.
Partnerships with fintech firms are unlocking new avenues for growth. Whether it’s integrating loans into car dealership platforms or powering payments for subscription services, embedded finance is giving banks a chance to slip into customers’ lives in ways they barely notice—but deeply appreciate.
Cryptocurrencies: Cautiously Testing the Waters
And then there’s the crypto conundrum. Once the domain of tech evangelists and speculative investors, cryptocurrencies are elbowing their way into the mainstream. Bitcoin ETFs have made it easier for traditional investors to dip a toe into the crypto waters, while Ethereum and Ripple (XRP) are offering solutions that align with real-world banking needs.
Ripple’s laser focus on cross-border payments could revolutionise international money transfers, slashing costs and speeding up transactions. Ethereum’s smart contracts, meanwhile, promise to simplify complex processes like loan approvals. And Bitcoin, the poster child of the crypto world, is slowly gaining traction as a viable payment method.
Yet, it’s not all smooth sailing. Volatility, scalability issues, and a regulatory environment that can best be described as “uncertain” are significant hurdles. Still, with pro-crypto voices gaining ground, 2025 might just be the year retail banks cautiously dip their toes into the digital currency pool.
Personalisation: The Age of “Me”
Customers expect their banks to understand more than just account numbers; they want personalised interactions that anticipate their ambitions. Advanced analytics are turning this into reality, moving banking from transactional to relational.
Imagine a bank that adjusts your credit card rewards for your travel habits or nudges you toward your dream car before you even start shopping. Personalisation isn’t just a service upgrade—it’s a survival strategy.
Looking Ahead to 2025 and Beyond…
The opportunities for retail banks in 2025 are as immense as they are complex. Digital transformation is reinventing customer experiences, ESG is aligning institutions with the values of an increasingly conscientious public. Meanwhile, Embedded Finance is quietly rewriting the rules of engagement. Cryptocurrencies, for all their challenges, are becoming harder to ignore, while data-driven personalisation is making banking feel more like a partnership than a transaction.
For banks willing to embrace these shifts, the rewards are clear: deeper customer loyalty, stronger revenue streams, and a reputation for innovation. Standing still is no longer an option.
Ripple, a leading provider of digital asset infrastructure for financial institutions, has announced Ripple USD (RLUSD) will be available on…
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Ripple, a leading provider of digital asset infrastructure for financial institutions, has announced Ripple USD (RLUSD) will be available on global exchanges. RLUSD is an enterprise-grade, USD-denominated stablecoin. Created with trust, utility, and compliance at its core, it is backed by Ripple’s years of experience working with crypto and the existing financial system.
RLUSD will be initially available on Uphold, Bitso, MoonPay, Archax, and CoinMENA. Additional listings will be made on platforms such as Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, Zero Hash and others in the coming weeks. Each RLUSD token is fully backed by U.S. dollar deposits, government bonds, and cash equivalents. Designed to ensure its stability, reliability, and liquidity. To maintain the highest standards of transparency, Ripple will publish monthly, third-party attestations of RLUSD’s reserve assets, conducted by an independent auditing firm.
“Early on, Ripple made a deliberate choice to launch our stablecoin under the NYDFS limited purpose trust company charter. Widely regarded as the premier regulatory standard worldwide,” said Brad Garlinghouse, Ripple’s CEO. “As the U.S. moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD. They can offer real utility and are backed by years of trust and expertise in the industry.”
A Growing Ecosystem Supporting Global Adoption
Key RLUSD partners include leading global exchanges, market makers, and payment providers. They are set to drive adoption and usage across the Americas, Asia-Pacific, UK, and Middle East regions. RLUSD is ideal for financial use cases and allows institutions to:
Access liquidity for remittance and treasury operations.
Seamlessly integrate with decentralised finance (DeFi) protocols.
Reliably bridge between traditional fiat currencies and the crypto ecosystem. Ensuring a seamless and efficient transition when entering (on-ramping) or exiting (off-ramping) the crypto space.
Provide collateralisation for trading tokenised real-world assets such as commodities, securities, and treasuries onchain.
Early next year, Ripple Payments will use RLUSD to facilitate global payments on behalf of its enterprise customers. Ripple Payments has served $70 billion in payments volume and counting. Furthermore, it has near-global coverage with 90+ payout markets. Moreover, this represents over 90% coverage of the daily FX market. RLUSD is available on both the XRP Ledger and Ethereum blockchains, offering flexibility and scalability for a broad range of financial use cases.
RLUSD: Raising the standard for Stablecoins
Raghuram Rajan, former Governor of the Reserve Bank of India, and Kenneth Montgomery, former First Vice President and Chief Operating Officer of the Federal Reserve Bank of Boston, will join the RLUSD advisory board. They will provide strategic guidance on regulatory, financial, and operational aspects to support RLUSD’s stability and growth.
Rajan and Montgomery join the ranks of the existing advisory board including former Federal Deposit Insurance Corporation (FDIC) Chair Sheila Bair, Vice Chairman of Partners Capital and former CENTRE Consortium CEO David Puth, and Ripple co-founder and Executive Chairman Chris Larsen.
“Stablecoins could become the backbone of private payments by offering a secure, scalable, and efficient alternative to traditional systems. With its focus on compliance and reliability, RLUSD aims to establish new standards for trust and to play a pivotal role in shaping the future of payments. Joining the Advisory Board provides me an opportunity to counsel RLUSD as it embarks on its journey in the rapidly evolving financial landscape,” said Raghuram Rajan, former Governor of the Reserve Bank of India.
“I am excited to join Ripple’s advisory board at such a pivotal moment for digital finance,” said Kenneth Montgomery, former First VP and COO at the Federal Reserve Bank of Boston. “Stablecoins are rapidly emerging as a cornerstone of the payments landscape. They are delivering the speed, efficiency, and cost-effectiveness that traditional systems often struggle to achieve. I look forward to collaborating with the Ripple team to support the global growth and adoption of RLUSD. Unlocking new opportunities for financial inclusion and modernising the future of payments.”
Ripple: modernising the future of payments
RLUSD sets the standard for stablecoins, combining innovative functionality with the regulatory rigor and credibility of an NYDFS-issued New York limited purpose trust company. Furthermore, this highlights Ripple’s leadership in fostering trust and transparency in digital assets.
Ripple’s President Monica Long commented on X: “The release of RLUSD marks a new chapter – both for the XRP Ledger, as well as Ripple, for use in our $70B payments flows. Combining our 10+ years in the business; the rigour and compliance required with stablecoin issuance by a NYDFS chartered company; and an experienced Advisory Board – RLUSD is launching from day one with credibility, utility and a whole host of partners ready to support it!”
FICO’s use of Blockchain for AI model governance wins Tech of the Future: Blockchain and Tokenisation award
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Global analytics software leader FICO has won the Tech of the Future – Blockchain and Tokenisation award. The Banking Tech Awards in London recognised FICO for its innovative work using Blockchain technology for AI model governance. FICO’s use of blockchain to advance responsible AI is the first time blockchain has been used to track end-to-end provenance of a machine learning model. This approach can help meet responsible AI and regulatory requirements.
FICO’s AI Innovation and Development team has developed and patented an immutable blockchain ledger. It tracks end-to-end provenance of the development, operationalisation and monitoring of machine learning models. The technology enforces the use of a corporate-wide responsible AI model development standard by organisations. It demonstrates adherence to the standard with specific requirements, people, results, testing, approvals and revisions. In addition to the Banking Tech award, Global Finance recognised FICO’s blockchain for AI technology with The Innovators award last year.
Responsible AI
“The rapid growth of AI use has made Responsible AI an imperative,” commented Dr. Scott Zoldi, chief analytics officer at FICO. “FICO is focused on technologies that ensure AI is used in an ethical way, and governance is absolutely critical. We are proud to receive another award for our groundbreaking work in this area.”
FICO is well-known as a leader in AI for financial services. Its FICO® Falcon® Fraud Manager solution, launched in 1992, was the first fraud solution to use neural networks. Today it manages some four billion payment cards worldwide. FICO has built advanced analytics capabilities into FICO® Platform, an applied intelligence platform for building decision management solutions.
Adam Zoucha, MD EMEA at FloQast, on how businesses will modernise financial processes in 2025
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With 45% of accountancy firms and in-house finance teams facing talent shortages, 2025 is going to be a critical year for many. Financial transformation is going to be the watchword. The conditions companies are facing will push them to speed up the transformation of their operations, modernising their financial processes while strengthening their company culture and vision.
The year ahead will likely see a continuation of the current period of instability, posing serious challenges for accounting teams looking to grow their business. The impact of global geopolitics is hard to predict which, twinned with the UK economy’s persistently slow growth rate, means companies will need to innovate to succeed – embracing automation, AI, and cutting-edge compliance processes.
It’s not all about the macro trends, though. On an individual level, our research this year has shown that employees are feeling the strain, and business leaders will need to take that seriously in 2025. The talent shortage is a vicious cycle – the harder it is for companies to find and retain talent, the more pressure remaining team members end up having to shoulder. The right technology can play a crucial role in reducing that stress and breaking the cycle.
Alongside those real challenges, there are real opportunities. The accounting business is changing fast, and it’s a great time to be in the industry. As we draw 2024 to a close, here are five key things accounting firms can expect to see in the new year.
Financial Transformation moving up the agenda
We’ve already looked at some of the reasons why financial transformation is going to be critical in 2025, but that doesn’t mean every CFO and accountant in the business is rushing to deliver. Based on our research 60% of accountants and CFOs still do not consider it a top priority – mainly because most don’t truly know what it means for their business, so education is key.
In essence, companies should aim to align their finance functions more closely with their organisational goals, enabling accountants to bring their expertise and insight to the decision-making process. As the finance function’s strategic role grows, there will be an urgent need for agile, digital tools that enhance collaboration and efficiency. For CFOs, embracing this transformation is essential to navigate new complexities with precision and effectiveness.
Accountancy teams will embrace new tools for the future
The talent gap present in the industry is unlikely to change any time soon. It takes time to train people, and accounting has a bit of a PR problem – its status as a secure, skilled job is battling with perceptions of stress and burnout.
As a result, in 2025, leaders will increasingly look to keep accountants motivated, engaged, and fulfilled as the declining population of new candidates continues to heap pressure on accounting teams—a trend that’s unlikely to reverse anytime soon.
It’s essential that business leaders retain their finance professionals by fostering a fulfilling work environment. They can help by upskilling accountants and adopting technologies to reduce mundane and repetitive tasks. CFOs can play a key role by equipping their teams with future-focused skills, blending technology with strategic insight to drive real value within their organisations.
AI will power Tansformation in 2025
Transformation in 2025 won’t be limited to removing internal silos and improving staff retention, crucial though those things are. We’re also going to see AI helping accountants become key players in driving business success. The real value of AI will become apparent this year. For finance teams, it will act as a copilot, automating routine tasks and giving time back to accountants to become strategic assets for their organisations.
This shift will help the industry tackle talent shortages with agility, turning challenges into opportunities for growth. Embracing AI isn’t just about keeping pace; it’s about unlocking accountants’ full potential as key players in driving business success.
Compliance will become a value-generating asset rather than a tick-box exercise
Compliance and risk, when managed properly, can drive real value for organisations. In 2025, the nuanced relationship between compliance, reputation, and risk means it’s likely to move up the corporate agenda.
Technology can be a real driver here, and compliance strategies are fundamental to the larger accounting transformation journey. By taking a more holistic approach to compliance, rather than treating it as a mere check-box exercise, compliance can become a valuable asset. Currently, only 16% of organisations take this strategic view, revealing a significant opportunity for those willing to innovate and elevate their compliance efforts.
Overall, accounting businesses may be facing rough seas, but with the right tools and investments in place, they can unlock new value in 2025: transforming financial processes, improving employee satisfaction, and stepping further into their growing role as strategic advisors.
Bryan Daugherty, Global Public Policy Director at the BSV Association (BSVA) and Co-Founder at SmartLedger Solutions, on how blockchain technology provides the accountability and cybersecurity needed to prevent widespread IT catastrophes across sectors
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By Embracing Blockchain, We Can Create a Safer Digital Future
The rapid increase in cyberattacks poses a severe threat to businesses. These attacks are becoming more sophisticated and costly by the day. The average cost of a data breach in the UK is £3.58 million, and in the US now $9 million. It typically takes 200 days for organisations to detect a breach, followed by another 70 days to contain it. These delays expose significant vulnerabilities in traditional data management systems. They rely heavily on third parties, making them prime targets for cybercriminals.
Blockchain technology offers a transformative solution to these challenges by creating a secure, decentralised model that can effectively mitigate risks. It provides an opportunity for both individuals and organisations to take control of their data. Therefore, improving cybersecurity and ensuring operational resilience.
The Problem with Centralised Systems
Traditional cybersecurity systems are built on centralised models, where data is stored in one location or through third-party intermediaries. This structure makes them attractive targets for cybercriminals, creating a “honeypot” of information that can be breached. A concerning statistic is that, for over a decade, organisations have taken an average of 200 days to detect breaches. Despite claims from cybersecurity vendors that they provide “instant detection,” real-world results show significant gaps in protection, putting data at risk for extended periods.
Blockchain: Game-Changing Cybersecurity Features
Blockchain’s decentralised model provides a powerful alternative. By distributing data across a global network of nodes rather than a central location, blockchain makes it exponentially harder for cybercriminals to compromise large datasets. Even if one node is breached, the entire system remains intact. This eliminates the single point of failure that centralised systems suffer from.
Another key feature of blockchain is its immutability. Once data is recorded on a blockchain, it cannot be altered or erased, making tampering nearly impossible. Therefore, this ensures any unauthorised access is immediately detectable, enabling quicker response times and minimising damage.
Real-Time Threat Detection with CERTIHASH
Blockchain’s potential in cybersecurity is already being realised through solutions like CERTIHASH’s Sentinel Node. A blockchain-based tool that provides real-time threat detection. Built on the BSV blockchain, CERTIHASH can detect breaches within 10 seconds or less, offering a proactive approach to cybersecurity. This is a significant improvement over traditional systems, which often take months to identify breaches, leaving organisations vulnerable to prolonged data exposure.
By leveraging blockchain, cybersecurity shifts from being reactive to proactive. This gives organisations the tools they need to stay ahead of evolving threats and safeguard data more effectively.
Overcoming Misconceptions About Blockchain
Despite the clear advantages of blockchain, many organisations remain hesitant to adopt the technology, often due to misconceptions. Furthermore, some still associate blockchain with cryptocurrencies like Bitcoin, which have been linked to ransomware. This outdated view overlooks blockchain’s real potential as a secure, decentralised data management tool.
Blockchain is not just about crypto; it’s about creating a new standard for data integrity and security. Moreover, it offers decentralised, tamper-proof records that give users control over their own identity and data, reducing reliance on vulnerable third-party systems.
A Decentralised, Secure Future
As global reliance on centralised systems grows, so do the vulnerabilities they present. A single point of failure can lead to widespread outages, as seen in numerous cyberattacks and technical malfunctions. Blockchain, with its decentralised architecture, offers a robust alternative that enhances the security and resilience of critical systems. By distributing data across multiple nodes, blockchain ensures continuity even during attacks or outages.
Conclusion
Investing in blockchain cybersecurity is no longer optional. With cyber-attacks growing in scale and sophistication, organisations must adopt cutting-edge technologies to protect their data, operations, and customer trust. Blockchain’s decentralised and tamper-proof architecture offers the key to building a safer, more secure digital future. One where businesses and individuals alike can operate with confidence, free from the constant threat of cybercrime.
We chat with the CIO of Urenco, Sarah Leteney, about the ways this unique business leverages technology, and the big difference a small team can make.
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Urenco does things a little differently. It has to. It supplies uranium enrichment services and fuel cycle products for the nuclear industry – a niche that requires a lot of specialist care and attention. Urenco has a clear vision for the net zero world. A world in which carbon-free energy is the norm. And for its CIO, Sarah Leteney, this means approaching the world of technology in different and interesting ways.
Leteney speaks exclusively to Interface Magazine about what it means to operate IT in a high-risk environment that requires an enormous amount of consistency. She also discusses the types of systems that are vital to Urenco, how the business leverages suppliers, bringing in the most talented possible people, and how Urenco balances a small team with a high pressure environment.
How does the role of CIO within the nuclear industry differ from one for a consumer goods company?
Most CIOs spend their time thinking about how to talk to customers through the rapid exchanges that are needed to maintain the flow of high volumes of traffic. They need to know how to keep up with their competitors in terms of customer experience and how to quickly bring new products to market.
At Urenco, we are quite literally the polar opposite of this. We are concerned with the consistency and timeliness of highly individualised communications with our customers, how internal control software can enable the accurate flow of information to our regulators, and how to support our teams to keep track of every gram of raw material, and product in our organisation. Our systems are vital to keep our operations safe and reliable. It is not fast-paced – rather a very careful and considered environment where accuracy is everything.
What is it like to enable and provision services in such an environment? Can you keep in touch with market trends? Is there much recognition of what you do?
I work in a high threat environment and there are many special considerations to understand. There is a certain cadence and rhythm to what we do and we have to work at a pace which suits the organisation, rather than keep up with the latest trends in the IT industry. Although, we do keep abreast of developments through networks such as Gartner and Aurora and introduce them where appropriate and relevant.
In relation to the recognition of this role, like every other CIO out there, you are noticed more when something is not working properly. That said, Urenco is very good at making you feel as if you are part of something that matters. People readily ask you questions and understand when something is a minor glitch compared to something more significant. And we actively encourage people to report issues because that is how you get continuous improvement. Overall, the organisation takes care of my team, we’re not under siege when things go wrong and what we do is widely appreciated.
What sorts of systems are you looking after and what are the challenges around these?
We have all the same systems that you see in many other large organisations, plus a few really niche products used only in our industry.
Like lots of businesses, we are on a SAP journey, moving existing systems into S4. This programme impacts all parts of the organisation and we have to drive the changes forward from a business point of view. We consider the IT team an enabler for this work as it’s ultimately the transformation of our business processes which we are trying to facilitate.
We also look after the information assets of the organisation – both the structured and unstructured data. Like many organisations, it’s an on-going process to work out how to extract genuine business insights from vast amounts of historical data which has been stored in multiple places and not always in the most logical manner. We have a significant amount of historical information which still remains important (think plant designs and maintenance records, etc.) so effective archiving and retention policies are very much at the forefront of our minds. It’s so easy to over store or over classify information in an effort to be ‘safe rather than sorry’, but in reality, as well as increasing on-going costs, this sort of behaviour tends to make it harder to find what you need. We are investigating new technologies to help us search through our data faster and more effectively than ever before.
We’re also currently extending into the Operational Technology sphere, sharing our experience and tools with our OT colleagues and directly addressing operational security challenges, investing significantly in our cyber defences to further strengthen our plant security services.
What is it like to work in a company with a large turnover but a relatively small number of employees? How does that affect the service you provide?
We try to think through what every employee needs from IT and provide them with the level of service their role requires, regardless of their position in the business. We are in the fortunate position where having fewer employees means individual changes to software, hardware, or SAAS costs tend to have a less significant impact on our profitability than in many organisations with higher staff complements. Many organisations have tiers of users which determine the level of service received. However, in our organisation, every minute of everyone’s time is important, as we don’t have many employees driving our engine forward. We are investing in our employee experience as one of the key organisational imperatives working alongside our colleagues in the People and Culture team, and this is going to be an on-going focus for us for the next few years.
Whilst the company turnover is important, it is less of a driving factor for us in IT. We benchmark ourselves against what proportion of operational expenditure we are investing in IT and IS to ensure we invest an appropriate amount in IT for an organisation of this size.
How do you work with your team to ensure they can provide the most effective service to the business?
We are organised primarily around our production sites, with a centralised team to provide shared services like architecture and finance. The organisation is only two layers deep in most teams, so information flow is mainly managed by direct cascade. The senior team is made up of heads of shared functions and site IT managers, and opinions flow freely between them.
Our IT Leadership team has a monthly two-day meeting where we come together in person. We sit together without our PCs and the constant pinging of information. This helps us to realign, to reprioritise matters, and include coaching and learning techniques. We all have daily pressures in our lives, and these meetings are about supporting each other and working effectively together.
Once a quarter we also visit one of our sites as a group, hosted by our IT site managers. This is critical to us because we cannot do our jobs without thoroughly understanding the experience of IT services on the ground. These visits also allow us to meet up with our business colleagues as part of their site leadership teams so we can exchange experiences and strategic thinking quite freely in person.
We also run monthly townhall meetings for all members of the IT team, and invite our colleagues from Information Security to join us. We have found this to be a really valuable information exchange point. IS can hear exactly what we are saying to the wider team on the ground, so they can gain real insight into our issues first hand. Our key suppliers are also invited to these sessions on a quarterly basis, again to foster free exchange of information.
How about diversity and inclusion – what are you doing within that area and what have you achieved?
This is one of the biggest areas I would like to tackle further. Within our company, like the whole of the nuclear sector, the age of our employees is increasing year on year as we have a very low employee turnover. So we have a small number of vacancies on an annual basis and we are working hard to get a better talent pool for when these opportunities arise, reaching out to people with a wider range of backgrounds.
Our strategy includes blind sifting, engaging with people who have had periods of time out of the workplace and may need to work certain hours, and being open to job-sharing. It is possible for us to be very flexible and we are trying to ensure this is known out in the world of recruitment.
One area we are doing really well in right now is neurodiversity. We have a significant proportion of our team who identify as neurodivergent and a new staff network focussing on the specific issues of importance to this community was actually started by a member of our team.
I’d love to see an ethnicity and gender mix in the future which is closer to the population norms in each of our operating countries and I’m pleased to say that our talent acquisition partners are working hard to promote our roles in new talent pools with a much more diverse population.
How do you work with your suppliers to maintain a good relationship with them?
We’re currently in the process of diversifying our IT supply base. We have had a couple of really strong suppliers for a long period of time who work very closely with us, but what we are aiming to do now is widen our group of key suppliers to create a supplier ecosystem consisting of four different types of partner – Advisory, Development, Configuration, and Support. A key part of this initiative will be about embedding the behaviours we would like suppliers to demonstrate when working with us to create an inclusive and transparent relationship, which we are progressing through setting up a Urenco Academy to provide initial onboarding and on-going behavioural reinforcement of Urenco’s core values across our partnerships.
You recently won a CIO 100 award. How did that come about and what reaction did you get from people who know you?
The CIO 100 award came about through my external mentor asking me why I wasn’t looking at it! He encouraged me to put myself forward for consideration. Sometimes you need a bit of a push from a critical friend to remind you that whilst you see how much remains to be done, it’s good to acknowledge the great results you have already achieved.
The most gratifying thing about the whole experience for me was that you are judged by really experienced CIOs, so they fully understand the complexity of what you do. I’m incredibly grateful and humbled to be included in such an inspiring group of people, who are all wrestling with organisational struggles and trying to keep up in a fast-paced world, solving problems all day, every day.
My colleagues were delighted for me and sent lots of congratulatory messages. I think my team were slightly surprised because they also don’t always see what a good job they are all doing. One of them was even inspired to send an AI-created poem in celebration!
Urenco gave me the opportunity to take on a challenging and exciting role initially as an interim CIO. They chose to promote from within despite having strong external candidates, and not only that, but they asked if I would like to have a mentor in my first year to help me to cement the skills I wanted to strengthen for my own peace of mind. I’m not sure what else I could have asked for from this organisation. When I look at the award all I really think, looking back over the last three years, is ‘how amazing is that’!
We say goodbye to 2024 focused on the technology innovation the new year will bring. Our cover story highlights a…
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We say goodbye to 2024 focused on the technology innovation the new year will bring. Our cover story highlightsa technology transformation journey change for the San Francisco Police Department (SFPD)
Welcome to the latest issue of Interface magazine!
San Francisco Police Department: A Technology Transformation
San Francisco Police Department (SFPD) CIO William ‘Will’ Sanson Mosier is ignited by the transformative power of technology to enhance public safety and improve lives. “Ultimately, my motivation stems from the relationship between individual growth and organisational success. When we invest in our people, we empower them to innovate, problem-solve, and deliver exceptional results. In turn, the organisation thrives, solidifying its position as a leader in its field. This virtuous cycle of growth and innovation is what drives me.”
OSB Group- Building the Bank of the Future
Group Chief Transformation Officer Matt Baillie talks to Interface about maintaining the soul of a FinTech with the gravitas of a FTSE business during a full stack tech transformation at OSB Group. “We’ve found the balance between making sure we maintain regulatory compliance and keeping up with customer expectations while making the required propositional changes to keep pace with markets on our existing savings and lending platforms.”
Urenco: Accuracy is Everything
We speak with the CIO of Urenco – an international supplier of enrichment services and fuel cycle products for the civil nuclear industry. Sarah Leteney talks about the ways this unique business leverages technology, and the big difference a small team can make. “We work in a high threat environment and there are many special considerations to understand. There is a rhythm to what we do to work at a pace which suits the organisation, rather than keep up with the latest trends in IT.”
Langham Hospitality Group SVP, Sean Seah, talks hospitality informed by innovation, and falling in love with the problem, not the solution. “You’ve got to pilot something small – ideate it, then you can incubate it, and if it works you figure out how to industrialise it.”
Midcounties Co-operative: A Digital Transfomation
The Midcounties Co-operative is home to over 645,000 members and employs more than 6,200 people across multiple brands and locations, including over 230 food retail stores across the UK. We spoke with CIO Jacob Isherwood to learn about its approach to data management. “Whether you’re running a nursery, managing a natural gas pipeline, or selling tins of beans, data helps manage complexity and meet challenges from a place of understanding.”
Paul O’Sullivan, Global Head of Banking and Lending at Aryza, on the rise of AI in banking
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The banking sector stands at the crossroads of technological innovation and operational transformation. AI is taking centre stage in reshaping how financial institutions operate. The banking sector is beginning to recognise AI’s potential. It can address challenges, enhance operational efficiency, and deliver more personalised customer experiences.
The Current State of AI in Banking
Research reveals that while a number of banking organisations have yet to fully integrate AI into their operations, key areas such as debt recovery are leading the charge. The slower pace of adoption can be attributed to the highly regulated environment of banking. Because transparency, compliance, and customer trust are non-negotiable. However, despite this cautious approach, banks that have implemented artificial intelligence are already seeing significant benefits, particularly in risk management.
AI’s Role in Risk Management
Effective risk management is a cornerstone of the banking sector. AI is proving to be a powerful tool in this area. By analysing vast amounts of data and providing predictive insights, AI enables banks to mitigate risks early. They can strengthen customer portfolio stability, and make data-driven lending decisions. These capabilities are essential in a landscape where financial risks can escalate rapidly.
Beyond the expected benefits, banks have also reported enhanced customer insights as an unexpected advantage. By leveraging AI to analyse customer behaviours and preferences, banks can tailor their products and services more effectively. Furthermore, they can improve customer satisfaction and experience, whilst fostering long-term loyalty.
Challenges to Adoption
Although organisations are experiencing a multitude of advantages, the integration of AI in banking is not without its hurdles. Legacy IT systems, stringent regulatory requirements, and concerns around data privacy pose significant challenges to widespread adoption. Banks must ensure AI-driven decision-making processes are effective. Moreover, they must also be fully transparent and compliant with industry regulations. Further highlighting the importance of a gradual, strategic approach to AI implementation.
Opportunities Ahead
The potential for AI in banking extends far beyond risk management. From streamlining operational workflows to enhancing customer personalisation and improving decision-making. AI is set to drive innovation across the sector. For example, AI-powered chatbots and virtual assistants transform customer service by providing instant, 24/7 support. They can handle complex interactions, enhancing customer satisfaction. At the same time, advanced analytics enable banks to analyse behaviour patterns, predict trends, and personalise product offerings. Furthermore. enhancing cross-selling opportunities and driving deeper customer engagement. These tools are becoming strategic enablers for innovation in the financial landscape.
A Call to Action
For banks to fully realise the benefits of AI, they must address the digital transformation gap, modernising outdated infrastructures and fostering a culture of innovation. This includes investing in technologies that align with their strategic goals, ensuring robust data security measures alongside maintaining compliance with evolving regulations.
As the banking sector continues its journey towards digital maturity, AI will play a pivotal role in defining its future. By overcoming current barriers and embracing AI-driven solutions, banks can not only enhance operational efficiency but also deliver the seamless, personalised experiences that customers now expect in an increasingly digital world.
About Aryza
At Aryza know that in today’s highly regulated world, there is huge value in quickly guiding your customers through the product that best fit their immediate needs, through a seamless journey that is tailored to their specific circumstances.
We created smart platforms, responsible and compliant products, and a unique system of companies and capabilities so that businesses can optimise their customers’ journey through the right product at the right time.
For our teams across the globe, the growth of Aryza is a good news story and a testament to our clear vision and goals as an international business.
And also front of mind as we build a global footprint is our impact on the environment. Aryza is committed to reducing its carbon impact through the choices it makes and we are pleased to say that we follow an active roadmap.
Misplaced confidence in visibility tools leaves organisations vulnerable amidst record high data breaches, according to latest research
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A new report from Quod Orbis highlights that 95% of businesses are at risk of a cybersecurity blindspot. A reported 93% of UK organisations have confidence in their system visibility. However, nearly all (95%) of them have struggled to access critical assets in the last year, according to the research.
Over a third (38%) actually rank lack of visibility as one of their biggest challenges, further highlighting the gap between respondents’ perceptions and the reality of their situation. This comes at a time when data breaches this year have already surpassed one billion stolen records.
Quod Orbis Cybersecurity Research
Martin Greenfield, Quod Orbis CEO, comments: “Businesses are suffering from a blind spot that’s leaving them exposed. Misplaced confidence in existing cybersecurity tools means these same organisations are susceptible to data breaches and non-compliance fallout. This results in potentially crippling financial and reputational consequences.”
Quod Orbis commissioned a research study with international research house, Censuswide, to poll 500 board executives and IT decision makers, across enterprises of 500+ employees in the UK.
Cybersecurity Tech Stacks
Cybersecurity tech stacks are growing exponentially in the face of rising threats. The average team manages 19 security solutions at any one time. However, 41% still report a lack of technology as being their biggest challenge when it comes to maintaining a robust cybersecurity posture.
As 72% of IT teams have had their IT budget increased in the past three years, Greenfield urges businesses to break free from the typical cycle of throwing money at a problem and hoping something sticks. “It’s not about the biggest investment, it’s about the right investment.”
A quarter (26%) of IT decision makers are yet to allocate budget to basic security tools like asset visibility technology. This is despite 40% reporting a lack of actionable data.
It’s clear though that businesses recognise the advantage of implementing the right technology. More than eight in 10 (82%) agree that greater visibility over digital assets will greatly improve business security. This is a huge leap from the 93% of respondents who believe their businesses already provide them with the necessary tools.
According to the data, most upcoming IT investments will be allocated to Continuous Controls Monitoring (32%), privileged and identity access management (30%) and zero trust (29%).
The Future
Greenfield concludes: “Digital infrastructure has reached a level of complexity that not only warrants, but demands, complete visibility. Now is not the time to gamble with your company’s security. Furthermore, organisations need to stop adding layers of unnecessary technology as a way of solving the immediate problem. Instead, they must take a step back and think holistically about how to resolve their issues.
“Tools like CCM, powered by automation, help teams see and understand their security and risk posture in real time. This offers peace of mind that all of their data is relevant and up to date. This level of insight provides early awareness of potential problems and empowers teams to take a proactive approach to security, instead of being forced back into the same reactive position they’ve been in for years.”
About Quod Orbis
Quod Orbis is the single source of truth across security, risk and compliance, providing an orchestration layer for the entire tech stack whether in the cloud, on-premise, legacy or bespoke. Founded in 2018, Quod Orbis became part of Dedagroup, one of the leading Italian IT players, in 2024.
A pioneer in Continuous Controls Monitoring (CCM), Quod Orbis provides complete and constant visibility into a company’s cybersecurity, compliance and risk posture. Quod Orbis’ ability to connect with every piece of technology within a business, unrivalled automation capabilities and continual support enables the company to serve a global client base across a wide variety of industries.
Innovative Systems, a leading provider of enterprise data, compliance, and integration solutions, has launched FinScan Marketplace
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The platform will serve as a one-stop shop for anti-money laundering (AML) compliance. It offers a streamlined approach to managing compliance risk and unified case management via a central hub for all related activities. FinScan Marketplace positions itself as a trusted partner for organisations navigating today’s complex, global regulatory landscape.
Removing the complexity of AML compliance
“Our goal with FinScan Marketplace is to remove the complexity of AML compliance. We bring everything organisations need into one unified platform,” said Deborah Overdeput, Chief Marketing Officer at Innovative Systems. “This launch reflects our commitment to delivering solutions that simplify processes. We empower compliance teams to work smarter, and ensure organisations remain vigilant. And fully aligned with evolving regulatory requirements in a rapidly changing landscape.”
FinScan Marketplace revolutionises how organisations manage their AML portfolio. It provides a single, easy-to-navigate interface. Customers can seamlessly access a comprehensive suite of tools. These include sanctions screening, KYC checks, adverse media screening, payment screening, and risk scoring, with additional features continually in development.
FinScan Marketplace
At the heart of FinScan Marketplace is its unified case management system. This integrates all critical AML processes into a cohesive workflow. From performing due diligence checks to monitoring transactions and investigating potential risks, customers can manage everything within a single platform. This integration saves time, reduces errors, and ensures compliance efforts remain seamless and effective.
FinScan Marketplace provides customers with a clear vision of the platform’s evolution. Its intuitive interface lets users view in-progress product developments, register interest in upcoming features. Furthermore, they can participate in design feedback sessions. This approach ensures future enhancements align closely with real-world compliance needs.
“We are not just delivering tools; we are creating partnerships with our customers by building solutions that adapt to their challenges,” Overdeput added. “Transparency and collaboration are key pillars of the FinScan Marketplace.”
Innovative Systems for AML
FinScan Marketplace reflects Innovative Systems’ dedication to becoming a trusted partner for a host of organisations. These include financial institutions, insurance companies, fintechs, casinos and gaming entities, charities and non-profits, government agencies, and other organisations it serves. By continuously delivering value, anticipating industry needs, and prioritising customers’ feedback in its development process, the company demonstrates its commitment to supporting effective and reliable AML compliance.
Innovative Systems delivers enterprise data, compliance, and integration solutions through the company’s leading FinScan®, Enlighten®, and PostLocate® brands. These solutions offer actionable insights and enable organizations to identify the hidden opportunities or risks in their data. We have pioneered best-in-class data quality, data management, and risk and compliance solutions in thousands of applications across more than 65 countries. Our cloud-based (SaaS), on-premise, and hybrid offerings deliver dramatic, measurable improvements in accuracy, cost, and time to production over alternatives. Learn more at innovativesystems.com
About FinScan
Trusted by hundreds of organisations worldwide, Innovative Systems, Inc.’s FinScan offers advanced Anti-Money Laundering (AML) compliance technology and consulting solutions. Built on decades of experience in data management and proprietary matching technologies, FinScan provides a data-first, risk-based approach to ensure unparalleled accuracy and efficiency in identifying and reducing risk, accelerating AML compliance workflows, and optimising team productivity. FinScan’s comprehensive, integrated platform includes Know Your Customer (KYC), unparalleled sanctions screening, risk scoring, data quality, and advisory services for implementing a holistic compliance program. FinScan offers flexible deployment including SaaS, on-premise, and hybrid options. FinScan’s SaaS clients are screening more than 300 billion names a year. Learn more at finscan.com
Alex Mosher, Chief Revenue Officer at Armis, on why businesses are prioritising their cybersecurity budgets, ensuring they have the resources needed to counteract emerging threats
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Cybersecurity is no longer optional. In 2025, we expect a significant uptick in overall spending. With threats becoming more sophisticated, organisations recognise the imperative to invest adequately in cybersecurity measures. This trend is driven by the growing awareness that the cost of a cyber-attack far outweighs the investment required to prevent it.
In 2025, there will be a marked shift toward comprehensive security solutions that offer integrated functionalities. Companies will increasingly seek platforms that provide threat detection, incident response, and compliance management within a single solution. This trend arises from the need to simplify security management and reduce complexity. Siloed solutions are ineffective, expensive and reduce the efficiency of security teams with finite resources. Furthermore, by consolidating various security functions into a unified platform, businesses can streamline their processes and enhance their overall security posture. Integrated solutions offer a holistic approach to cybersecurity, addressing multiple aspects of an organisation’s security needs. The move toward comprehensive solutions also reflects a broader understanding of the interconnectedness of cybersecurity elements. A unified solution that addresses multiple areas provides a more robust defence against potential breaches.
Emphasis on Automation and AI
Automation and artificial intelligence (AI) are revolutionising the cybersecurity landscape. Organisations increasingly prioritise spending on AI-driven security solutions to enhance threat detection and response capabilities. The focus will be on tools that streamline incident response, reduce manual workloads, and enable security teams to focus on more strategic initiatives. Moreover, the trend will also include spending on analytics tools that help organisations understand and mitigate risks based on the current threat landscape. Threat intelligence and analytics play a pivotal role in enhancing an organisation’s security posture.
AI technologies offer a proactive approach to cybersecurity, allowing organisations to identify and mitigate threats in real-time. By leveraging machine learning algorithms and data analytics, businesses can gain deeper insights into potential vulnerabilities and respond swiftly to emerging threats. The emphasis on automation and AI is driven by the need to enhance efficiency and effectiveness in cybersecurity operations. By automating routine tasks and employing AI for advanced threat detection, businesses can optimise their resources and achieve a more robust security posture.
Investment in Cloud Cybersecurity Solutions
The migration to cloud environments continues to accelerate, driving the need for robust cloud security solutions. Key investment areas will include cloud security posture management (CSPM) and cloud workload protection platforms (CWPP). The emphasis on cloud security reflects the growing reliance on cloud services for business operations. Moreover, organisations recognise that securing their cloud environments is paramount to safeguarding digital assets and ensuring regulatory compliance. Investments in cloud security solutions also align with the broader trend toward digital transformation. Businesses are leveraging the cloud to drive innovation and agility. This neessitates a strong security framework to protect their evolving digital ecosystems.
Enhanced Budgeting for Compliance and Regulatory Needs
Data protection and privacy regulations are becoming increasingly stringent worldwide. Also, this necessitates enhanced budgeting for compliance-related cybersecurity solutions. I expect organisations to allocate more resources to auditing tools, risk management platforms, and solutions that help them meet regulatory requirements such as GDPR, CCPA, and HIPAA.
The emphasis on compliance reflects a growing awareness of the legal and reputational risks associated with non-compliance. Investing in compliance-related solutions also aligns with the broader trend toward data-driven decision-making. Moreover, by implementing tools that ensure alignment with regulatory requirements, organisations can demonstrate their commitment to ethical data practices and build trust among stakeholders.
Growth in Cybersecurity Insurance Expenditures
Cyber insurance is becoming an essential component of an organisation’s risk management strategy. The growth in cybersecurity insurance expenditures reflects a broader awareness of the financial implications of cybersecurity threats. Investing in cyber insurance aligns with the emphasis on accountability in cybersecurity spending. By securing coverage for potential losses, businesses can demonstrate their commitment to protecting their assets and ensuring business continuity in the face of unforeseen events.
By understanding the key cyber spending patterns outlined here, businesses can make informed decisions. They can enhance their security posture to protect their valuable assets and ensure business continuity as we move into 2025.
Yuno enables organisations to transform online checkout experiences, allowing customers to pay securely without the need for passwords
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Yuno, a leading global payment orchestrator, announces that Mastercard’s Click to Pay at checkout is now available to all Yuno clients.
Click to Pay helps improve customer experience by ensuring purchases can be made securely and quickly with just a few clicks. It significantly decreases the instances of cart abandonment that plague the e-commerce industry. According to Mastercard research, nearly two-thirds of shoppers still struggle through manually entering their card details. Around 25% of carts are abandoned because checkout is too complex or slow. The average online shopping cart abandonment rate worldwide reached 70.19% in 2023, according to Statista. This resulted in an estimated $260 billion recoverable loss in e-commerce sales annually in the US and EU alone. Plus, fraud rates are seven times higher online than in stores. Criminals exploit exposed card numbers, creating headaches for cardholders and huge losses for merchants and card issuers.
Click to Pay with Yuno and Mastercard
Yuno’s single-click Click to Pay integration, which is enabled in 40 markets across the world, goes beyond just reducing cart abandonment. It also translates to increased sales and conversions for merchants with digital payments. Yuno offfers a secure and familiar digital checkout option trusted by millions of cardholders worldwide. It empowers businesses to boost customer confidence and improve the shopping experience. Yuno’s ability to offer Mastercard Click to Pay access to merchants is especially crucial for businesses expanding into new markets, where brand recognition can be a challenge. With Yuno, merchants can offer a globally recognised payment solution that eliminates friction at checkout almost anywhere in the world.
Yuno
Juan Pablo Ortega, Co-Founder and CEO at Yuno, commented: “At Yuno, we are constantly seeking out the best solutions to streamline payment processes and enhance security, while delivering speed. Making Mastercard’s Click to Pay at checkout feature easy to integrate for all of our customers supports our commitment to removing barriers to global commerce. We’re making sure our customers can focus on running their businesses without any unnecessary headaches.’’
Mastercard
Diego Szteinhendler, Senior Vice-President, Fintechs, Merchants and Digital Platforms, Mastercard Latin America and the Caribbean, added: “Digital consumers expect an intuitive, frictionless and secure experience. To support this demand, we’ve built a robust digital infrastructure with a suite of acceptance and payment services, including Click to Pay. Through partnerships like the one with Yuno these are becoming available to millions of consumers across Latin America and beyond.”
Yuno’s clients, including Viva Aerobus, Bacu, and Habibs, have already begun taking advantage of Mastercard Click to Pay at Checkout via Yuno. It is helping them deliver a secure and convenient user experience for their customers across the globe.
About Yuno
Yuno has emerged as a dominant force in global payment orchestration, with a core mission to empower global commerce by enabling businesses of all sizes to accept and disburse payments anywhere in the world, fostering financial inclusion. It enables businesses to access over 300 payment methods worldwide as well as innovative features including one-click checkout, smart routing, and robust anti-fraud tools via a single unified, easy-to-use interface. Yuno serves a global customer base that includes McDonald’s, inDrive, Rappi and other renowned brands across more than 80 countries.
Waheed Mahmood, Financial Services Lead at Rackspace Technology, on how cloud is elevating CX in the financial services industry
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The importance of customer experience (CX) in financial services is growing. In July 2023, the Financial Conduct Authority (FCA) published its Consumer Duty guidelines, designed to set clearer standards of protection for consumers of financial services. The Consumer Duty was created to ensure that financial institutions (FIs) act fairly, while preventing customers from making poor financial decisions.
Despite the guidelines being implemented over a year ago, some FIs are still struggling to meet customers’ needs and are not working hard enough to protect them. In October 2024, for example, the FCA fined TSB Bank Plc £10,910,500 for failing to ensure that customers in arrears were treated fairly between 2014 and 2020.
According to Forrester, there has also been a significant decline in EU bank customer experience (CX) quality in 2024. This matters, because as CX quality declines, so does customer loyalty. Financial service executives must step up their game if they want to stay competitive and earn this loyalty. FIs that leverage technology can increase customer satisfaction, reduce the cost to serve and boost conversion rates and profitability. As we look ahead, here are some ways FIs can harness technology to drive customer satisfaction in 2025 and beyond.
Driving CX through the Cloud
The Consumer Duty’s objective was to guide individuals toward sound financial decisions. To achieve this, FI’s must leverage data and analytical insights. However, legacy systems often hinder effective data sharing and analysis, limiting the ability to provide personalised guidance.
Private cloud technology empowers banks to modernise their legacy systems. This can increase agility with the delivery of new services and products, enabling them to create and deliver enhanced CX. This includes offering seamless digital experiences, from smart self-service options and instant transaction tracking to tailored financial guidance and decision-making. Banks can also use cloud analytics to spot user pain points and service disruptions early, directly improving both customer satisfaction and profitability.
The integration of cloud services with existing banking systems also enhances data flow and interoperability. Real-time analytics platforms, such as Azure Stream Analytics help process and analyse vast amounts of data. This can reveal valuable insights into customer behaviour and preferences. Banks can then offer personalised advice and services, boosting customer satisfaction and interaction.
To maximise these benefits, FI’s need to ensure these customer insights are shared across departments. Eliminating departmental silos can drive improvements in product development, marketing strategies, and customer service protocols. Success requires integrating design expertise and data capabilities – involving teams from every business function to build a data framework and platform. This integration will help convert customer insights into actionable improvements.
Double down on service innovation for CX
Before leveraging cloud technology, FIs must evaluate their current technology stack to identify weak points before embarking on digital transformation initiatives. Legacy systems, which many FIs still depend on put them at a disadvantage as customer demands and expectations grow. This outdated infrastructure is particularly vulnerable, leaving sensitive customer data exposed to risk.
By updating their technology stack, FIs can improve customer interactions while streamlining critical systems for transaction handling and personalisation. These work together to deliver an experience that aligns closely with individual customer needs.
FIs are also leveraging machine learning to gain insights into customer spending patterns, enabling them to offer personalised financial advice and recommendations. Additionally, GenAI is reshaping CX; AI-driven chatbots, for example, offer instance guidance and assistance, freeing up human staff to focus on more complex issues. However, to maximise the benefits of GenAI, FIs need robust infrastructure in place. GenAI models require high-quality, well-structured data for training and precise forecasting.
A cloud-based platform is particularly well-suited for FIs with specific demands around control, security and workload customisation. By adopting this approach, institutions can meet the high storage and encryption requirements of GenAI, thereby, enhancing both system performance and data security – key factors in scaling these technologies.
To respond to a continued decline in customer experience quality, financial service providers must make this a strategic priority. Delighting and engaging customers on a personal level has become vital and institutions that satisfy these expectations will be best equipped to attract new clients and build enduring loyalty.
Mastercard integrates its Multi-Token Network (MTN) for tokenized deposits and tokenized assets with Kinexys Digital Payments (formerly JPM Coin)
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Mastercard’s blockhain Multi-Token Network (MTN) has connected to Kinexys Digital Payments as a payment settlement solution. This will enhance the availability of B2B cross-border payments to business applications on MTN.
Kinexys Digital Payments is a next-generation payment rail powering real-time value transfer. Also, it uses commercial bank money and is offered through Kinexys by J.P. Morgan, the firm’s Blockchain business unit.
Mastercard’s MTN brings together a set of API-enabled, blockchain-based tools and standards for innovative business models under one platform.
Kinexys by JP Morgan and Mastercard are respectively providing solutions designed to improve the efficiency of commercial transactions. Furthermore, these solutions aim to improve the cross-border payment experiences common for such transactions. They will achieve this by providing greater transparency and faster settlement as well as reducing time zone friction.
By integrating Mastercard MTN’s connectivity with Kinexys Digital Payments, mutual customers of MTN and Kinexys will be able to settle B2B transactions through a single API integration.
Kinexys – JP Morgan’s Blockchain business unit
“At Kinexys, we believe our solutions can play a transformative role in the ecosystem for digital global commerce and digital assets, where the value proposition of commercial transaction venues is enhanced by the availability of commercial bank payment rails that can natively integrate with any digital marketplace or platform. We look forward to supporting our clients engaging with the MTN ecosystem and collaborating further with Mastercard in the digital space.”
Naveen Mallela, Co-Head of Kinexys by JP Morgan
MTN – Mastercard’s Multi-Token Network
“For years, both Mastercard and Kinexys by JP Morgan have been committed to innovating for the future of digital asset and commercial infrastructure. By bringing together the power and connectivity of Mastercard’s MTN with Kinexys Digital Payments, we are unlocking greater speed and settlement capabilities for the entire value chain. Moreover, we are excited about this integration and the new use cases it will bring to life, leveraging the strengths and innovations of both organisations.”
Raj Dhamodharan, executive vice president, Blockchain and Digital Assets at Mastercard
Ozge Celik, Head of Product at Turkey’s largest FinTech Papara, on how personalisation is making everyday financial transactions more manageable and embedded into our lifestyles
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With unlimited choice from a global marketplace, customer expectations are continuing to reach new heights. Undeniably, we are seeing financial services – being led by the FinTech sector – undergoing a seismic shift towards personalisation and catering to this new form of demand. Users are no longer content with generic services. Furthermore, they want tailored, hyper personalised experiences that reflect their individual needs and preferences. This is particularly true for their banking experiences. Yet, many traditional banking institutions are struggling to keep up with these demands due to their legacy systems and traditional cookie-cutter approach. Whereas the FinTech industry, with its agile frameworks and state-of-the-art technologies, is demonstrating its capability to rapidly position solutions that cater to this demand.
The growing trend for personalisation
Personalisation in consumer services is not a novel concept, but its application within the financial sector is a relatively recent development. Despite its infancy, its impact on the industry is profound. Banking has always been a cornerstone of our daily lives, from withdrawing cash to transferring funds. As such, it is unsurprising that users increasingly view their financial services as an extension of their personal identity.
Over the past decade, we have seen the introduction of customisable physical bank cards, personalised digital tools on mobile banking apps and instant messaging services. Banks and fintechs are striving to meet users’ needs, reshaping the loyalty landscape that has traditionally favoured established banks. These institutions, with their often rigid and cumbersome systems, are being compelled to re-evaluate their user engagement strategies and the solutions they offer.
Leading the customisation charge
Startups and FinTechs are riding the crest of this wave of customisation. Traditional financial institutions frequently overestimate the costs associated with data collection and the development of meaningful personalised tools. FinTechs, on the other hand, harness their technological capabilities to sift through vast amounts of data, identifying individual preferences and behaviours. This insight enables them to better create personalised products and services that resonate with consumers on a deeper level. Offering such tailored experiences is not merely a competitive advantage; it is quickly becoming essential to attract and retain users.
The rise of the super app
The emergence of the super app epitomises this new paradigm. The inconvenience of managing multiple mobile banking apps is becoming a thing of the past as consumers increasingly favour a unified platform that addresses all their financial needs. This demand extends beyond financial services. The success of super apps like Alipay and WeChat Pay, which integrate services from ride-hailing to grocery shopping, illustrates how this model has become ingrained in everyday life. While the same level of adoption may not be universal due to various market factors, FinTechs are taking note and developing intuitive apps that combine financial and non-financial functions to deliver a seamless and efficient user experience.
FinTech’s personalisation extends to every facet of the financial journey. From customised budgeting tools and investment portfolios, to personalised insurance products and bespoke lending solutions, providers are redefining what it means to have a financial service that truly fits the individual.
The implications for personalisation in traditional banking
To stay relevant, banks must embrace digital transformation and consider partnerships with FinTechs or face the risk of further falling behind. Collaboration between established financial institutions and FinTech disruptors can yield the best of both worlds: the trust and scale of traditional banks combined with the innovation and agility of fintech.
As FinTechs continue to meet and exceed the hyper-personalised needs of consumers, they are establishing a new benchmark in the financial services industry. By making everyday financial transactions more manageable and integrated into our lifestyles, they are not merely responding to consumer demands but are also anticipating them. As this trend progresses, we can expect to witness further disruption, with fintechs at the helm, steering us towards a more personalised and accessible financial future for all.
About Papara
We are not a Bank; we are Papara, we are here for you.
We are a financial technology company that offers a new financial application experience. Keeping the user in mind against the traditional financial solutions, we strive to build the next generation financial super app. Our amazing community always suggest features and gives us constant feedback.
We integrate the most innovative technology to help our users control their money while being completely transparent.
In 2015,we started our services with the permission we received from the Banking Regulation and Supervision Agency to operate as an “Electronic Money Institution”.
Papara is the first non-bank to issue a Mastercard logo prepaid card in Turkey and currently a Mastercard, Visa, and Interbank Card Center member. In our seventh year of operation, we have acquired 21 million users and expanded our team to 1.000 happy people dedicated to creating the best financial experience.
Today, millions of our users choose Papara’s innovative products to make millions of transactions every month.
Xerox has been a household name for decades. For many, it’s associated with photocopiers and printers. After all, it’s the…
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Xerox has been a household name for decades. For many, it’s associated with photocopiers and printers. After all, it’s the largest print company in the world. But it’s also a technology powerhouse that’s been at the forefront of a great deal of innovation. It has undergone a journey of evolution and reinvention into an IT and digital services provider. That’s what led to the business acquiring a large managed service provider, Altodigital, in 2020.
Derek Gunton has spent nearly 20 years in the technology sphere. He came to Xerox as part of the Altodigital acquisition. Altodigital also started out as a management print organisation and evolved into the IT services side, so its journey mirrors Xerox’s in many ways. “Now, as we move into the next technological age powered by AI and automation, we’ve put ourselves in a good position,” says Gunton.
“Xerox continues to evolve as a company. It recently announced the acquisition of another large managed services IT business called Savvy, which will double the size of the IT services business. That gives us a lot of speciality, a lot of scale, and prepares us for that leap into the technologies of the future.”
Supporting Lanes Group’s technology
Xerox has been supporting Lanes Group in its own growth journey for a few years now. It doesn’t provide print services, but the IT and digital services Xerox is gradually becoming known for. The relationship began during the COVID-19 pandemic, when the working environment was very different. Businesses were trying to figure out how to continue to operate as normally as possible and provide certainty for staff.
“There were just two of us from Xerox working with them, and we were talking about room planning software,” says Gunton. “How do you manage how many people are in the building? How do they book spaces, or manage people in line with the COVID legislation that was in place? The conversation started there. Then, we were asked what we could do around providing some managed service desk support just to assist the internal team at the time – and it’s grown from there. Four years later, we have over 30 members of staff dedicated to the Lanes account, supporting more than 4,000 users across over 50 states.
“We’re very much an operation that compliments Lanes Group. The thing that has always worked well is that we have the ability to respond and scale. Lanes have been on their own journey over the last few years to the point that they’re truly industry-leading, and we’ve managed to keep up whilst always looking to innovate, make suggestions, and bring new solutions to the table.”
An integrated technology partnership
Lanes Group supports key utilities including water and gas. What it does is absolutely critical. If there are problems in those areas, millions of people can be affected. So while Lanes has a huge responsibility to always be ready to support those utilities at all times, Xerox has just as much of a responsibility to be in a position to support Lanes.
“It’s massively important, and everybody in our business is briefed on what Lanes does to ensure we understand that responsibility,” says Gunton. “In my career, I’ve seen lots of different structures in terms of how we work with clients. Sometimes it can be very much a supplier-client relationship where it’s very siloed and formal. What sets our relationship with Lanes Group apart is that it’s a very integrated partnership. There are several meetings every week. There are dedicated program managers, and every product area has its owner. We have very strict SLAs to adhere to and the only way to deliver what Lanes needs is through communication and mutual support.”
Streamlining inconsistencies
A perfect example of the collaborative relationship between Xerox and Lanes Group is the secure network solution Xerox put in place. Effectively, Xerox mapped out and replaced the network infrastructure of all Lanes Group sites, giving better visibility, better control, and a better user experience.
“When we first reviewed the sites, there were over 50 of them running independently. That was difficult for the IT team to manage,” says Gunton. “It led to a lot of inconsistencies. We had mixed feedback from end users. Our aim was to introduce a technology system that would give the users the ability to have a consistent experience across all sites. We worked with our partners at HPE to identify the latest Ariba access solutions available, and deployment across all sites has been very successful. It’s also improved security, giving users the ability to skip length authentication processes. The user experience is really smooth now, which is what we were after.”
Creating agility
Working as partners, not in a supplier-client capacity, has made all the difference for the two businesses. From robot process automation to take manual tasks away from humans, to the increased use of AI-driven tools, Xerox is providing Lanes with what it needs to be agile. It’s a relationship based on trust and a shared goal.
“I do appreciate the help from the stakeholders at Lanes, because they embrace the same kind of culture,” Gunton says. “Often we’ll do joint meetings where we all address the same problem or desire to innovate together. We trust each others’ skill sets and openness to really come up with a solution. Ultimately, it’s all people-driven. It’s based on having really clever people in the right places, and we’ve built up a really solid team over the years.”
The evolution Lanes Group is going through isn’t going to slow down any time soon. That means Xerox’s work won’t either. Gunton states: “Our broad priorities with Lanes also reflect the current UK landscape. Data integration and automation are the areas we’re continuing to focus on. We have to think about how we deliver that. In terms of data, there needs to be one true source. You have to be really confident in the information you have, being as accurate as possible.”
What’s key for Xerox is ensuring that Lanes Group is able to shift from being reactive to more proactive. That is its focus. “We’re already delivering technology solutions to better equip Lanes to respond in that manner. I think the next year is going to be really exciting as we continue to develop that. We believe that we will continue to put Lanes at the forefront of their industry with the solutions that we supply.”
This month’s cover story throws the spotlight on the ground-up technology transformation journey at Lanes Group – a leading water…
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This month’s cover story throws the spotlight on the ground-up technology transformation journey at Lanes Group – aleading water and wastewater solutions and services provider in the UK.
Welcome to the latest issue of Interface magazine!
In a world driven by transformation, it’s rare a leader gets the opportunity to deliver organisational change in its purest form… Lanes Group – the leading water and wastewater solutions services provider – has started again from the ground up with IT Director Mo Dawood at the helm.
“I’ve always focused on transformation,” he reflects. “Particularly around how we make things better, more efficient, or more effective for the business and its people. The end-user journey is crucial. So many times you see organisations thinking they can buy the best tech and systems, plug them in, and they’ve solved the problem. You have to understand the business, the technology side, and the people in equal measure. It’s core to any transformation.”
Mo’s roadmap for transformation centred on four key areas: HR and payroll, management of the group’s vehicle fleet, migrating to a new ERP system, and health and safety. “People were first,” he comments. “Getting everyone on the same HR and payroll system would enable the HR department to transition, helping us have a greater understanding of where we were as a business and providing a single point of information for who we employ and how we need to grow.”
Schneider Electric provides energy and digital automation and industrial IoT solutions for customers in homes, buildings, industries, and critical infrastructure. The company serves 16 critical sectors. It has a vast digital footprint spanning the globe, presenting a complex and ever-evolving risk landscape and attack surface. Cybersecurity, product security and data protection, and a robust and protected end-to-end supply chain for software, hardware, and firmware are fundamental to its business.
“From a critical infrastructure perspective, one of the big challenges is that the defence posture of the base can vary,” says Cassie Crossley, VP, Supply Chain Security, Cybersecurity & Product Security Office.
“We believe in something called ‘secure by operations’, which is similar to a cloud shared responsibility model. Nation state and malicious actors are looking for open and available devices on networks. Operational technology and systems that are not built with defence at the core and not normally intended to be internet facing. The fact these products are out there and not behind a DMZ network to add an extra layer of security presents a big risk. It essentially means companies are accidentally exposing their networks. To mitigate this we work with the Department of Energy, CISA, other global agencies, and Internet Service Providers (ISPs). Through our initiative we identify customers inadvertently doing this we inform them and provide information on the risk.”
Persimmon Homes: Digital Innovation in Construction
As an experienced FTSE100 Group CIO who has enabled transformation some of the UK’s largest organisations, Persimmon Homes‘ Paul Coby knows a thing or two about what it takes to be a successful CIO. Fifty things, to be precise. Like the importance of bridging the gap between technology and business priorities, and how all IT projects must be business projects. That IT is a team sport, that communication is essential to deliver meaningful change – and that people matter more than technology. And that if you’re not scared sometimes, you’re not really understanding what being the CIO is.
“There’s no such thing as an IT strategy; instead, IT is an integral part of the business strategy”
WCDSB: Empowering learning through technology innovation
‘Tech for good’, or ‘tech with purpose’. Both liberally used phrases across numerous industries and sectors today. But few purposes are greater than providing the tools, technology, and innovations essential for guiding children on their educational journey. Meanwhile, also supporting the many people who play a crucial role in helping learners along the way. Chris Demers and his IT Services Department team at the Waterloo Catholic District School Board (WCDSB) have the privilege of delivering on this kind of purpose day in, day out. A mission they neatly summarise as ‘empower, innovate, and foster success’.
“The Strategic Plan projects out five years across four areas,” Demers explains. “It addresses endpoint devices, connectivity and security as dictated by business and academic needs. We focus on infrastructure, bandwidth, backbone networks, wifi, security, network segmentation, firewall infrastructure, and cloud services. Process improvement includes areas like records retention, automated workflows, student data systems, parent portals, and administrative systems. We’re fully focused on staff development and support.”
FinTech Connect shapes the future of financial services with the UK’s only full FinTech ecosystem event at London’s Excel December 4-5
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Join us as FinTech Connect welcomes world leading Fintechs, Financial Institutions, Challenger Banks, Merchants, Scale-Ups and StartUps, Investors, Accelerators and Media to The ExceL, London.
FinTech Connect
Each year we welcome visionaries from the UK, Europe and beyond all looking to innovate within the market, expand their footprint and drive businesses forward. The event brings all this under one roof, over two insight-packed days, sparking ideas, forging partnerships and accelerating change.
Tackling the hottest topics and biggest challenges in the fintech market. Including: embedded finance, Web3, cross-border payments, investment, scaling, Gen AI, crypto, regulation, digital innovation and customer experience (CX).
Our mission is to connect the global thought leaders across the FinTech ecosystem in an event like no other. Set yourself up for a strong 2025 by signing up for the UK’s only full FinTech ecosystem event and join 2,000+ fintech leaders in London.
Insights from FinTech’s biggest names
We’ll be asking the big questions… What AI elements do financial institutions need to follow? Build, buy or partner? What opportunity works best in the modern ecosystem? How are banks advancing their digital transformations in 2024? Who owns the CX?
Gain insights on these topics and more from some of the biggest names in financial services. Speakers include Victoria Cleland, Executive Director – Payments, Bank of England; Rory Tanner, Head of UK Government Affairs at Revolut and Nick Kerrigan, Managing Director, Swift. Thought leaders will also be taking to the stage from HSBC, DZ Bank, Lloyds Banking Group, BT and a host of other leading institutions.
Keep up to date with the latest speakers, discussions and more. Download the full agenda here.
Seth Ruden, Director of Global Advisory at BioCatch, on how the UK’s financial institutions can be better prepared to deal with authorised push payment (APP) scams
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The focus on authorised push payment (APP) fraud scams – where scammers impersonate reputable individuals or institutions – has increasingly shifted to whether banks should reimburse customers for funds stolen by scammers. We can gain valuable insights from the approaches taken by financial institutions in the UK. They are leading the way with their cybersecurity efforts compared to their counterparts in other regions.
First, British banks established a standardised reporting system and typology. This is a fundamental first step that every financial institution should take to grasp the full scope of how financial fraud affects banking consumers. Banks may disclose the type of fraud, the amount of money stolen, and the bank measures used to prevent the scam from occurring. This centralised view brings the true scope of the totality of scams into focus.
Three ways the UK’s financial institutions are leading in the fight against fraud
Second, the UK has developed strategies to identify specific scams and reduce their losses. The regulator added a slew of new controls to banks, including confirmation of payee, scam and transaction-specific interventions, and money mule account controls for those receiving the illicit funds. Before regulation, not every financial institution had implemented these controls, providing an uneven playing field and allowing scams to flourish. Banks outside the UK should not wait for regulators to mandate controls like these. They should do it on their own accord to prove they realise the magnitude of the scam problem and the severity of its impact on bank customers.
Improved consumer financial scam controls should be a minimum requirement for financial institutions in 2024. These controls should cover: authorised push payment behavioural analysis, money mule behaviour around both account opening and account activity, and analysis of both inbound and outbound transactions. Furthermore, detecting and then closing money mule accounts – used by fraudsters as an intermediate stop between the victim’s account and the final destination for the stolen funds – is absolutely critical, as they serve as the backbone for every consumer-based financial scam.
The third? Getting involved. Banks need to integrate themselves and participate with industry and trade associations – such as the FS-ISACs and GASA (Global Anti Scam Alliance). These associations provide opportunities to network with peer institutions and others in the fraud value chain to share scam information and learn from each other.
Effective Fraud Prevention: A practical assessment of Key Strategies
Many banks today use precision anomaly detection and behavioural biometrics to notify them when a fraudulent transaction takes place. Financial institutions in the UK often issue actionable alerts to clients in real-time. Santander UK, for example, now asks customers if they have seen the item in person before approving a payment through Facebook Marketplace. For online account opening, there are good solutions for bot-detection to prevent automated bots from opening new accounts, behavioural biometrics to detect suspicious patterns of data entry, and solutions that can analyse the customer KYC data. A secondary benefit of strong account opening controls is the reduction of operational costs to close bogus accounts.
For detecting existing money mule accounts, traditionally it required tracking the circulation of funds, both the inbound and outbound transaction activity and looking for anomalies (e.g. high value in and then immediately transferred out). Now, user behaviour anomalies – such as changes in the user’s input/output device activity or navigation preferences – may indicate a change in account control before the suspicious transactions take place.
Protecting Customers: What the future holds for Financial institutions
Since the UK’s introduction to faster payments, the region has become a centre of research for the rest of the world. However, eliminating threats to UK customers and their money has remained difficult despite an increase in regulation. While Governments and international groups are starting to identify and take down some of these organisations there are still hundreds of thousands of scammers and coerced individuals involved in these intricate schemes. A key challenge for financial institutions is understanding how scammers get their customers to initiate authorised payment. However, these challenges can be combatted by understanding the psychology behind how scammers work which can be a prominent factor in tackling the problem. Financial institutions must ensure that, in a few years’ time, they can confidently answer ‘yes’ to the question: Did we do enough to help eliminate consumer financial scams?
There were many inspiring themes on peoples’ lips at DPW Amsterdam 2024, including collaboration. One of the major reasons procurement…
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There were many inspiring themes on peoples’ lips at DPW Amsterdam 2024, including collaboration. One of the major reasons procurement professionals flock to DPW is the opportunity to learn from their peers, strategise with them, and make connections in order to partner up and grow. We sat down with Dr Matthias Dohrn and Sudhir Bhojwani, business collaborators of several years who prove the benefits of coming together for growth.
Dohrn is the CPO of BASF, a global chemical company, making him responsible for direct, indirect, and traded goods. Prior to this role he headed up a business unit – and things weren’t going well. It got to the point where the question of how to drive performance became a priority. The business needed to consistently drive value, not just be, in Dohrn’s words, a “one-hit wonder”.
“I’ve been in a lot of meetings where people come together and say, ‘we should do something’ – but the next month, you have the same meeting and nothing has changed,” Dohrn explains. “Structuring an organisation in a manner that really drives and extracts value, that’s key.”
This eventually led to meeting with ORO Labs and asking how it could help BASF build a solution that enabled the growth it needed. Sudhir Bhojwani, CEO and Co-Founder of ORO Labs, knew Dohrn already from his SAP Ariba days He even credits him with explaining what ‘supplier management’ means. When he co-founded ORO Labs, his team wanted to focus on being a procurement orchestration platform and build smart workflows.
“When Matthias was running his business unit, as he mentioned, he had this Excel-based process where he was running thousands of measures,” Bhojwani explains. “It was an interesting process. We let him know that our workflow could solve his problems way more efficiently. So we worked with this business unit at that time and saw some positive results. Roughly a year later, Matthias took over as CPO and wanted to bring in the same structure that we’d implemented at the business unit, but on a bigger scale.”
Kicking off the project
Getting this project off the ground meant having a business case, first and foremost. This required actually sitting down with the people who do the ordering, because procurement needed to understand the options it had. “So, with every plant in BASF – all approximately 150 of them – we had to talk to them, and look at the individual spend of each plant,” Dohrn explains. “This included direct procurement of raw materials, energy, logistics, indirect spend for services, and so on. Then we had brainstorming workshops, generating between 30 and 50 improvement measures per workshop.
“Then, because it’s bottom-up, you bring in the performance management tool to prioritise the measures. Then you go through the business case and confirm the value. As these measures go through the implementation levels, it’s very satisfying because you can see how you’re making progress in driving value every day. The people who own the measures set the timeline themselves, and there are incentive schemes behind the best ideas.”
Driving value to motivate people was a priority from the start, and something BASF discussed with ORO Labs early on. People are able to see the status of their measures thanks to ORO Labs, which means they’re able to see the results and also see other peoples’ great ideas. “You create a wave of people who are driving value, much faster,” Dohrn adds.
Addressing the challenges
From Bhojwani’s perspective, there were multiple challenges when approaching BASF’s requirements. Fundamentally, ORO Labs was building a brand new workflow, as BASF required a very different take on what that means. ORO understanding how that translated to what BASF needed was the first challenge.
“We needed to understand the structure Matthias has, and what the work streams should look like,” Bhojwani explains. “We had to figure out how to model these work streams within our tool in a way that made sense. An indirect work stream is not the same as something in direct material; those things are very different. So here’s where our workflow tool worked quite well. We could customise how direct material work streams should behave, compared to indirect work streams, how country A should behave compared to country B, and so on.
“It was important that we could bring flexibility, and that we could solve workflow problems in innovative ways. Another challenge was the user experience part. We had to make sure that the system worked for everybody, otherwise nobody would participate in the system. We had to keep working on it, keep fixing it, and that took a good 18 months of tweaking. The biggest thing has been understanding how BASF actually generates value, and how a workflow can help. It’s been very interesting.”
Identifying the value
Collaborating with ORO Labs has unlocked an enormous amount of value for BASF. Dohrn has seen the business come together thanks to the work that was put into communicating and collaborating with every site across businesses and functions, and BASF is continuing to conduct workshops for further improvement. There’s also, of course, the EBIT being gained from the business cases, putting BASF on track to generate sustainable savings.
“There’s been a real mindset change,” Dohrn states. “We’re now really focused on value, and we’re using this ORO Labs tool to hold each other accountable. You can see the progress every day. We call it the iceberg because you can see below the implementation levels. Everything starts off below the water line – no value created yet, just potential. Then you see it moving beyond the zero line into the positives, and every day I can see the difference between now and yesterday with just a click. It’s so fulfilling to see what we have created.
“We’re able to see the interaction with the plants, the interaction between people, and interaction with the requisitioners, and we can create something positive together. I think that’s huge. It’s only going to bring more and more value over the next few years. People are used to the tool now, they find it easy. It has created value and everyone’s happy because the cost pressure on the plants has gone down.”
Tonkean is built differently. Tonkean is a first-of-its-kind intake and orchestration platform. Powered by AI, Tonkean helps enterprise internal service…
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Tonkean is built differently.
Tonkean is a first-of-its-kind intake and orchestration platform. Powered by AI, Tonkean helps enterprise internal service teams like procurement and legal create process experiences that transform how businesses operate. The transformation hinges on four key functionalities, intake, AI-powered orchestration, visibility, and business-led configuration (no-code), which internal teams leverage to use existing tools better together, automate complex processes across teams and tools, and empower employees to do better, higher-value work.
Jennifer O’Gara is the Senior Director of Marketing, Director People and Talent at Tonkean. O’Gara’s route into procurement came when Tonkean became active within the space. “While we initially focused on solving complex process challenges across entire enterprises, we quickly realised how much procurement could benefit from this approach,” she explains. “Procurement processes are inherently complex and collaborative and cross-functional, making them a perfect fit for Tonkean’s orchestration capabilities. We were right. Since we entered the market, we’ve been blown away by how enthusiastically process orchestration has been received. That’s keeping us excited about procurement.”
This year, DPW Amsterdam 2024’s theme was 10X, with a focus on the importance of companies aiming for a moonshot mindset instead of an incremental approach. As far as O’Gara is concerned, achieving 10X improvements in performance is within reach for procurement, but it requires a shift in how the function thinks about growth. “It’s not just about doing more of the same faster—it’s about fundamentally rethinking the processes that drive your business,” reveals O’Gara. “Your processes are like your company’s infrastructure. When you optimise at the process level, you don’t just create incremental gains; you can fundamentally transform the way you operate at scale. You can remove bottlenecks permanently, facilitate easier collaboration org-wide, and drive true, reliable automation across all your teams and systems. The result is exponential performance improvements that can be sustained over time. Aiming for 10X isn’t just a lofty goal—it’s achievable. The key is focusing your improvement efforts at the process level.”
However, the journey to 10X isn’t straightforward. Some organisations believe they can just layer new technology on top of old processes. According to O’Gara, this won’t unlock 10X growth and will still leave your company lagging behind. “Getting to 10X starts, instead, with building better processes—and moving away from the idea that any one technology will do the trick,” she says. “For example, AI. AI is powerful, but it’s just a tool, and it’s only valuable if used strategically. To truly unlock 10X improvements in performance, you need to integrate technologies like AI into your core processes in a way that’s structured, strategic, and scalable. You will only ever be as innovative or adaptive or as effective as your processes are dynamic, dexterous and dependable. How do you build better processes? That’s where process orchestration comes in.”
Process orchestration refers to the strategy — enabled by process orchestration platforms — of coordinating automated business processes across teams and existing, integrated systems. These processes can facilitate all procurement-related activities. Importantly, they can also accommodate employees’ many different working preferences and styles.
Instead of simply adding to an organisation’s existing tech stack, process orchestration allows companies to use their existing mix of people, data, and tech better together. One promise of process orchestration is to finally put internal shared service teams like procurement in charge of the tools they deploy.
This goes a long way towards solving one of the enterprise’s most vexing operational challenges: the inefficiency of over-complexity born of too much new technology. It also allows procurement teams to truly make their technology work for them and the employees they serve. As opposed to making people work for technology. Process orchestration breaks down the silos that typically separate working environments. No longer do stakeholders have to log in to an ERP or P2P platform to submit or approve intake requests, just for example. The technology will meet them wherever they are.
“It helps you create and scale processes that can seamlessly connect with all of your existing systems, databases, and teams, while accommodating the individual needs of your employees and meeting them in the tools they already use,” adds O’Gara. “Orchestration allows you to automate processes across existing systems—like ERP, P2P, and messaging apps—so data flows automatically between them. It allows you to surface technologies like AI when and where they’re most impactful for stakeholders.”
Speaking of AI, it remains one of the biggest buzzwords in procurement. Indeed, anything that offers Chief Procurement Officers cost savings and efficiency will prick their ears, but the question remains: can the industry fully trust it? O’Gara believes it is ‘overhyped.’ “When it first emerged, it wasn’t just seen as a new tool—it was almost treated like magic,” she explains. “The hype still hasn’t died down, and that’s been a problem. It’s created unrealistic expectations and skewed perceptions of what innovation with this sort of technology actually entails; I can’t tell you how many procurement leaders have admitted to us that they’re getting pressure from the C-suite to invest in AI-powered tools just because they have ‘AI’ in the name.”
While clear with her scepticism regarding generative AI’s current place in the market, O’Gara recognises its potential. “Generative AI’s potential is huge—especially if it’s deployed strategically at the process level,” she reveals. “It could truly transform procurement, shifting teams from transactional roles to strategic partners who are involved early in the buying process and appreciated for their unique expertise—and for the unique business value procurement alone can deliver. But AI on its own isn’t going to save procurement. The reality is, many organisations jumped into the AI hype without a real strategy, and that’s why they haven’t seen its full value yet. The key is integrating AI thoughtfully into core processes—that’s when we’ll start seeing its real potential.”
With an eye on the future, O’Gara expects the next year to continue to revolve around AI adoption, but in ways that deliver real value. “I think we’ll see procurement truly stepping into a more strategic role, with businesses recognising procurement as a key partner, not just a back-office function,” she says. “This shift will be driven in part by new technology, especially process orchestration and AI, helping procurement bridge gaps in communication and collaboration across teams. Another big trend will be the rise of personalised, consumer-like experiences in procurement—making buying and approval processes smoother, more intuitive, and better tailored to the needs of individual users. It’s an exciting time, and we’re just scratching the surface of what’s possible.”
It’s impossible not to be inspired by the energy at a DPW event. DPW Amsterdam 2024 was buzzing with that…
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It’s impossible not to be inspired by the energy at a DPW event. DPW Amsterdam 2024 was buzzing with that same energy, its attendees soaking in information and inspiration from speakers, peers, other experts. We caught up with Rujul Zaparde, Co-Founder and CEO of Zip, at the event to dive into the procurement landscape and chat about the specific qualities DPW brings to the sector.
Zaparde is the Co-Founder and CEO of Zip. At the beginning of Zip’s journey, Zaparde and his fellow founder, Lu Cheng, based the company around their own experiences as end-users of the procurement process. They took their lived confusion around having multiple intakes for a contract, for the purchase request, and all the different complicated components of the process, and created a solution.
“And so, we started Zip and created the category of intake and procurement orchestration. We’re very grateful to have been named the leader in the category,” says Zaparde, in reference to having just been named a category leader in IDC’s first ever Marketscape for Spend Orchestration.
So, as is often the case, procurement is something Zaparde fell into. In this case, he got involved with procurement specifically to solve pain points. Prior to Zip, he was a Product Manager and Cheng was an Engineering Leader, both at Airbnb; they knew very little about procurement. “We were just end-users,” he explains. The upside of this was that they were able to come into the industry fresh, without the baggage and legacy issues that can come with being in a sector for a long time.
UX first
“At Zip, we really try to take a user experience first approach,” Zaparde continues. “What we found is the highest leverage change you can make in any procurement organisation is to make it easier for your employees to actually adopt and follow whatever the right process is. If you do that, then all of finance, procurement, accounting, and even IT find that they’re suddenly swimming with the current, not against it. And you can’t do any of that unless you solve for user experience.”
Taking away problems, the way Zip does, also takes away a barrier to ambition. The theme of DPW Amsterdam 2024 was 10X, a term on the lips of many across all sectors. Once immediate issues and pain points are addressed, 10X is something businesses can aspire to, with many talks and workshops during DPW Amsterdam focusing on how to approach this.
Getting the mindset right
For Zaparde, 10X thinking is a necessity for growth. “You have to aim for 10X to even end up at something X,” he explains. “That requires ambition. I also think that when you think in terms of 10X, and your mindset is angled towards incremental change, you’re much more open to thinking of solutions that are perhaps a little more risky. It changes your perspective.”
A mindset shift needs to happen before anything else. This involves considering the needs of procurement and the wider company, having a north star in mind, and then breaking changes down to an incremental level.
“Then you can start to think about the steps you need to take to get there,” Zaparde explains. “A big component of this is bringing along your peers and stakeholders across every function that’s tangential and critical to the core procurement workflow and path.”
Innovating for good
The work Zip does is indicative of the shift towards continuous improvement and advanced technology that procurement has been going through in recent years. There are things that are possible now that weren’t possible even a year ago, thanks to the vast innovations being made. One of the hot topics right now is generative AI, something that’s opening up a world of possibilities.
“It’s the elephant in the room right now,” says Zaparde. “With the capabilities that gen AI unlocks, you can automate a lot more. That allows you to cut down a lot of the transactional and operational work that procurement and sourcing organisations are doing. Procurement is tired of the status quo. It’s been an underserved function for over 20 years, and I’m glad that’s finally changing. I feel privileged for myself and Zip to be part of the conversation, and that we’re seeing all these amazing changes happening.”
Zaparde believes we’re already seeing the benefits of the major changes that have occurred over the last couple of years in procurement. In fact, he knows this, because Zip has helped its customers save around $4.5bn of spend over the last two years, which is an astonishing statistic.
“One customer of ours, Snowflake, achieved over $300m in savings alone,” Zaparde continues. “We’ve seen tangible benefits already. The way procurement is evolving isn’t a hypothetical thing – it’s really happening.”
Fragmentation on fragmentation
The key, again, is overcoming base level issues for the sake of evolution. This is precisely what Zip provides, after all. But sometimes, the issue is at a data level. Unclean data is something that technology leaders are talking about a great deal right now, with some feeling that it holds them back from implementing new technology. Zaparde believes that businesses should be questioning why their data isn’t clean from the start, rather than worrying about trying to cleanse existing data.
“You don’t just clean your data – the real question is why is your data not clean in the first place?” he muses. “You have to have a clean entry point for it. I don’t think I’ve ever spoken to a Fortune 500 CPO that said they had clean data. I think it’s because of the upstream processes in intake and orchestration. If all the cross-functional teams – the IT review, the legal review, the finance – are being manually shepherded by the procurement operations organisation, then how can you possibly end up with clean data?
“People are keying the same information into multiple systems, which might mean they answer in similar – but different – ways. So you end up with fragmentation on fragmentation. But if you have one single door to that data, you’ll be able to drive only clean data, because it’s a funnel. If you let everyone have different swim lanes that never intersect, you won’t have clean data.”
As 2025 approaches, Zip has multiple product capabilities and features coming up that Zaparde and his team are very excited about. This includes leveraging gen AI, something we’re seeing incredible utilisation of across the sector.
For Zaparde, attending events like DPW Amsterdam to talk about what Zip does and interact with peers and clients alike is a joyous part of his job. “DPW is really accelerating the rate of change in the procurement industry. That’s very much needed, and it’s energising to see so many incredible people from the procurement world in one place. I love spending time with these forward-thinking procurement leaders at this event.”
Whether we’re talking about gen AI, 10X, or any other kind of advanced tech solution, data is at the core…
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Whether we’re talking about gen AI, 10X, or any other kind of advanced tech solution, data is at the core of the discussion. And when data isn’t clean or ready for the implementation of something being built on top of it, businesses can end up significantly held back. Mithra-Ai is an organisation that helps its customers to build trust in their data, which is a core issue for many.
“That sets us apart,” says Christophe Frère, Co-Founder of Mithra-AI. “We help procurement leaders and category managers create, execute, and realise their strategies. This is backed by reliable, comprehensive data, both internal and external, tailored specifically for their categories.
“Maintaining high-quality data is crucial as it influences the accuracy and reliability of AI-driven insights and recommendations. That’s where Mitha-AI comes in. Our cleansing, enrichment, and auto-classification engines ensure that procurement stakeholders, including data scientists, begin with a reliable data foundation.”
Cleaning and classifying data
Mithra-Ai is an AI-native SaaS solution, which starts off by proposing a meaningful spend hierarchy for every category. What’s key is that this is paired with an automated cleansing and classification engine. This is so important because the only way to achieve truly clean data is to make sure it enters the system clean in the first place.
“Clear visibility into categorised spending eliminates uncategorised expenses and wrong assumptions,” says Frère. “When supplemented by relevant external data intelligence, category managers are empowered to negotiate with confidence, achieve greater savings, and monitor initiatives effectively.”
A world beyond cost savings
When launching Mithra-Ai in 2021, the company’s founders rightly foresaw that the role of procurement would evolve beyond focusing merely on cost savings, and become the central hub of every organisation. Because of that, they knew that accurate, reliable information was needed – hence the necessity for Mithra-Ai.
As procurement has shifted, the status quo is no longer good enough. It’s an exciting time for the sector, but also one of high demand in the race to adopt increasingly advanced technology. But it’s necessary for efficiency and growth.
“Tesla and Nvidia exemplify the power of embracing change over maintaining that status quo,” says Frère. “Procurement is facing intense pressure to evolve with organisational needs. Those organisations can opt for incremental changes, which will likely slow them down, or pursue a 10X leap to maintain competitive advantage. The latter requires bold and decisive leadership from heads of procurement.”
The road to 10X thinking
The way to drive 10X thinking, Frère believes, is through having a clear vision of your goals. Sometimes businesses, especially ones which are going through major change or those navigating outdated legacy systems, are at risk of losing sight of their goals. But having that vision is a foundational necessity, regardless of what stage you’re at.
“Set aspirations high, and question existing norms,” says Frère. “Procurement leaders can draw inspiration from startups by fostering a culture of innovation through small-scale initiatives that can rapidly expand. Reevaluate the skills and team structure necessary for future success.”
Another important aspect to bear in mind when considering these things is the level of risk you’re willing to undertake when setting goals and aspirations. “That’s often overlooked,” Frère continues. “Determining the acceptable level of risk is crucial. It significantly influences partner selection and the outcome of RFPs.”
Thinking big, starting small
While ambition is vital to 10X thinking and beyond, businesses must also make sure they don’t bite off more than they can chew. Launching into adopting huge volumes of advanced technology can lead to overwhelm and can make a business stall rather than evolving. A more careful approach is required.
“Think big, start small,” says Frère. “Prioritise high-impact, low-effort initiatives over those requiring significant effort. Many transformation projects fail to deliver the expected benefits and incur high costs during the program.” This is another reason to decide on the appropriate risk level early on, in order to guide prioritisation decisions and transformation pace.
It’s an incredibly exciting time for procurement, and that includes Mithra-Ai. In a very short time, it’s developed several foundational modules for its data-driven category management solution. This includes the Collaborative Initiative Tracker that was launched during DPW Amsterdam 2024 – just one of Mithra-Ai’s inspiring undertakings as we approach 2025.
“The tracker means that procurement teams can now involve multiple stakeholders in collaboratively tracking and enhancing the impact of key initiatives, such as cost-saving measures,” says Frère. “Exciting times lie ahead.”
DPW Amsterdam is the perfect stage for launching a solution like this. It’s an event that inspires a culture of innovation, bringing procurement professionals together to teach, learn, and shout about their latest additions to the procurement landscape.
“DPW stands out as the premier procurement tech event of the year,” says Frère. “Practitioners can explore and engage with procuretech suppliers, showcasing valuable use cases and personal stories across multiple stages. DPW is a catalyst for ideation, creating trust and confidence in the benefits of applying cutting-edge technologies to improve business outcomes. This year’s event felt even more international than previous years. I look forward to seeing it continue to grow.”
Frère’s main takeaway from DPW Amsterdam this year is that a solid data foundation is essential – something he was well aware of as part of Mithra-Ai. “Without it, transformation projects and new technologies will struggle to succeed,” he concludes. “In the past two years, there has been increased focus on sustainability and risk intelligence, driven by numerous new solution providers. However, during the DPW Amsterdam 2024 conference, we observed new trends coming up and, again, more focus on data quality, which works to our advantage.”
When we’re talking about technology in procurement, the importance of partnership is a major component for success. No business is…
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When we’re talking about technology in procurement, the importance of partnership is a major component for success. No business is an island, and joining forces with experts is, increasingly, the direction many move in for the sake of growth.
At DPW Amsterdam 2024, we met many businesses who were looking around at the procurement sector in search of either what direction to move in next, or who they can help. The event is one that brings people together to learn, to teach, to discover the cutting edge of procurement, and be inspired by it. So when we sat down with the CEO of Fairmarkit, Kevin Frechette, it wasn’t surprising that he brought Nick Wright, who leads bp’s Procurement Digital Garage, into the conversation.
For Frechette, one of the best things about working in the advanced procurement technology sphere is joining forces with other businesses to help them keep improving, and vice versa. “Having the chance to work with people like Nick, who are pushing the envelope when it comes to autonomous sourcing, is amazing,” he explains. “We’re fired up to be at DPW, absorbing this atmosphere.”
While it’s something of a running joke in the procurement world that most professionals in the sector don’t deliberately choose it, Wright actually did. “I went to university and thought ‘wow, I fancy a career in procurement or vendor management’. I know a lot of people don’t have that story, but I’ve been doing something I’m passionate about from the beginning. I love making deals, whether I’m buying a car, a house, or something for BP.” The Procurement Digital Garage he leads exists to look at problems being faced across procurement, and figuring out possible solutions.
For Frechette, the intention wasn’t to start a company in the procurement space, but his team quickly saw the opportunities within it. “We had this ‘aha’ moment,” he says. “It was a tough pivot. There was a lot of debate, a lot of late nights. I’m super glad we made it because we got to be in a space where people can be forgotten about, and we’re able to give them centre stage.”
The realistic approach to 10X
DPW itself exists to put procurement under the limelight. Each event is themed in a way that gets conversations flowing around the next big thing in procurement. For Amsterdam 2024, this theme was 10X – something Frechette believes isn’t achievable right off the bat.
“It’s something to strive towards,” he says. “It’s something where you work on getting a little better every single month, every quarter. You keep getting those small wins, and you build credibility. There’s no silver bullet. You just have to start the journey and learn as you go.”
For Wright, it’s about not getting caught up in the hype, but figuring out what’s realistic. “There’s a lot of hype out there, and the beauty of something like my team at the Procurement Digital Garage is to weed out that hype, because what’s right for us might not be right for someone else. Having a team that’s out there in the market, testing and figuring out what’s real, will put you in good stead.”
“There’s a leap of faith element that can be challenging to achieve, before you can really strive for 10X,” Frechette adds. “It’s like Amara’s Law: humans typically overestimate the value of technology in the short term, but underestimate it in the long term. So the hype is needed. We have to help people on that journey and sometimes, a leap of faith is needed. For the people that risk it, it’s exciting, and they’re then well positioned for the future.”
However, again, managing expectations is important. “People might be on the sidelines expecting a 10X solution,” says Wright. “But the reality is, you’re going to get 5% here, 10% – smaller pockets of improvement.”
The benefits of advanced technology are absolutely being seen at this stage, but being realistic about the future outcomes is important. “The benefits are there – not at the scale of 10X – but if you just make a start, you’ll achieve wins,” says Frechette. “You broadcast those wins across the organisation. That generates excitement, and then you can work on the next thing because you have ground swell.”
How ‘the future’ has changed
What’s interesting is that this 10X focus, this drive towards incremental wins, has reframed the way businesses plan for the road ahead. ‘The future’ used to mean having a three or five-year plan. Now, the future is only 12 months away.
“The thought process right now is ‘what can we do that’s super optimistic in just 12 months’?” says Frechette. “Then you can put in realistic time frames and set off on a sprint to get there. You have to be able to move fast. We have launches every two weeks now, and we have to be flexible with our roadmap along the way. But we always know where we’re going – we have a north star.”
“To me, that’s the only way to do it,” Wright adds. “I don’t have a crystal ball. Nobody knows what’s going to happen in two or three years. So what’s the point of creating a plan that’s going to get you to a certain point in those two or three years? You have to work on small iterations, make adjustments, change direction as necessary.”
It’s part of what makes Fairmarkit and BP an active partnership – the ability to be flexible and open up discussions at every point. It’s all about real-time feedback and trust-building, to the extent that both parties feel like they’re on the same team.
The right people in the right places
Because ultimately, it’s the human element that makes transformation happen. Having the right people in place is one of the elements that’s key to making sure implementing advanced tech for the sake of business strategy works at all. “It’s about access to talent and making sure you’ve got a capable user group that can make the most of that technology,” says Wright. “You don’t need to be a data scientist, but you do need to have the right mindset to take advantage of the tools you’ve got.”
“I agree – you have to get the right people on the bus,” adds Frechette. “You all have to be committed to going on the journey together. Prioritise where you start and where you’re going to have the most value with the lowest risk, and have people on your side who can give suggestions and ideas.”
While the much-discussed talent shortage can create challenges there, DPW as an entity proves that not only does procurement keep becoming more appealing and exciting, but where there are gaps, there are digital tools. “I’ve noticed a lot of folks under 30 who are here at DPW Amsterdam, and they’re genuinely interested in procurement,” says Wright. “We’re at a tipping point that makes me really excited about the profession I’m in.”
‘Digitalisation is just the beginning’ according to Crowdfox, a business which aims to improve procurement by bettering the ordering process…
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‘Digitalisation is just the beginning’ according to Crowdfox, a business which aims to improve procurement by bettering the ordering process while lowering costs. That tagline speaks to Crowdfox’s dedication to advancing procurement using the exciting tools the sector now has at its disposal, and this push to innovate is being driven, in part, by Martin Rademacher, Crowdfox’s CSO. We sat down with Rademacher at DPW Amsterdam 2024, the exciting vibe of the event spreading far and wide around us.
Rademacher is responsible for everything to do with Crowdfox’s customers. From sales, to marketing, to customer onboarding and success, and everything in between – that’s Rademacher’s wheelhouse. His background is in management consulting, with a focus on procurement and supply chain. So, while he started out in sales, he soon decided that procurement was the direction to move in.
“During my time as a consultant, I found procurement very interesting because it’s so versatile,” explains Rademacher. “Of course, it’s about the transactional phase with suppliers – but also you’re so connected with R&D, production, logistics, and so on. You have so many fields of application.”
10X thinking
At DPW Amsterdam, the overall theme of the two-day event was 10X. The concept of the 10X rule is around taking a goal you’ve set for yourself and multiplying it by 10. It’s an aspirational tool, coaxing all of us to aim higher. In procurement, that means innovating.
“In the last two years we’ve seen tools like ChatGPT trigger some big adaptations in the procurement world,” says Rademacher. “I think there is the opportunity now to achieve 10X in terms of efficiency gains. Especially when it comes to making better decisions, more quickly, in order to analyse data. We’re now finding out what AI can really do, and focusing on how that can help with strategy.”
For Rademacher, he believes people have the right tools to achieve 10X – it’s now about implementing those tools properly, and having the right culture.
“In the last couple of years, implementing tools has become much easier than it was a decade ago,” Rademacher continues. “They’re so well designed that they fit into large procurement systems, and can connect with other best-of-breed tools. I’d say implementation should be the focus, but it’s not that complicated anymore. AI tools especially are really intuitive. As a result, you don’t need much in the way of change management. People just intuitively cooperate with AI.”
The question of security
The big challenge, Rademacher believes, is data protection. When it comes to barriers preventing a 10X approach, concerns around data privacy are among the biggest issues. As a result, organisations have to take the necessary precautions before plunging into making major technological changes, or risk falling at the first hurdle.
“In the EU, it’s all about data protection,” says Rademacher. These concerns led to the Artificial Intelligence Act (AI Act) coming into force in the EU in August 2024. It was created in response to the rise in generative AI systems, and ensures that there’s a common regulatory framework for AI within the European Union. “Companies are very concerned about their data, but I wouldn’t call this an obstacle – more like a challenge.
“The key is making sure you have a protected environment. Start with a pilot in a limited space, for instance, and then make sure you can find a solution you can control in a safe environment that suits your operations.”
Shooting for the stars
With these measures in mind, it’s never been easier to implement new technologies and aim for that ambitious 10X goal. Certainly, advanced tools have never been more accessible, or more straightforward for businesses to educate themselves about. Even as recently as two years ago, integrating multiple elements of advanced tech – like genAI – wasn’t really possible.
“It definitely wasn’t easy to combine sources the way we can now,” says Rademacher. “Now, you can provide a much better user experience experience not only for procurement professionals, but for anyone who takes advantage of what procurement introduces to the company. Finding the supply to fulfil your demand is so much easier now. You no longer have to have difficult conversations starting with an email to your procurement professional to identify whether you’re allowed to purchase from a certain vendor, and whether they’re vetted or not. Streamlining processes like that makes that information quick and easy to identify.”
Additionally, we’re at a point with advanced technology where the tools we have access to are capable of handling more and more volumes of data at an extremely fast pace. “In consulting, for example, every project started with an analysis of the status quo of a firm,” says Rademacher. “We’d figure out who the vendors are, the categories, and the spend. Depending on the workforce, this could take one or two weeks. Now, with the tools we have access to, you can gather this information in 24 hours.”
The evolution continues
While we’re seeing many of the benefits that come with genAI and other advanced technologies already, it’s only the beginning of what we can achieve using these tools. GenAI is at a peak right now, but according to Rademacher, it might take another five years to achieve its full productivity level. “There’s also this ambitious idea going around of fully autonomous procurement, and it’ll likely take a good 10 years to reach that level of productivity,” he adds. “On the other hand, nobody is talking about robotic process automation anymore because we’re almost there with that already.”
Another challenge is data quality. The cleanliness of an organisation’s data can make or break its use of advanced technology, which is where making the right connections with service providers comes in. “It’s a good example of when to find the right partner,” says Rademacher. “Find someone from the innovative tech space who you think you can rely on. Don’t try to do it all on your own – that’ll just hold you back more and more. Be bold; find the right partner to make the most of your data and that helps you constantly improve. There’s a lot of talent out there, a lot of solutions that are really helpful for organisations of all sizes. You’ll improve step by step.”
There’s no doubt that it’s an exciting time for procurement. The atmosphere at DPW Amsterdam 2024 was electric for that exact reason. The event, in Rademacher’s words, has “a really strong influence on the sector and enables attendees to learn about how the landscape is developing in real time”.
“The AI-driven future is already a reality for us,” he states. “We’re beyond the pilot phase with our AI tool, ChatCFX, and now we really want to drive market share. 2024 going into 2025 sees us in a good position with high user visibility, and now we’re adding ChatCFX to the game, pushing it into the European market. We’re at DPW Amsterdam to meet the players who are looking for a solution exactly like ours, making it an invaluable place to be.”
Certain procurement pain points can prove debilitating for a business, freezing it in its tracks when it’s trying to grow…
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Certain procurement pain points can prove debilitating for a business, freezing it in its tracks when it’s trying to grow and improve. This is where companies like Candex are able to step in and turn a headache into something so simple, it requires no further thought.
Danielle McQuiston is the Chief Customer Officer at Candex. She’s been with the fintech startup for five years, spending two decades prior to that working in procurement at Sanofi. Candex is a technology-based master vendor that allows customers to engage with and pay one-off or small suppliers without setting them up in their system. This means that the system doesn’t get clogged up with suppliers that are rarely or never going to be used again.
“We’re primarily used for what companies consider tail spend, and we typically deliver it as a punchout catalogue for a really simple user experience,” McQuiston explains. That ability to support lots of customers was what drew her to the role. “Coming to Candex, I was very excited about what they were doing and wanted to help as many companies as possible.”
Addressing tail spend
That ability to address tail spend in a unique way is the main thing that differentiates Candex. It’s an enormous problem for procurement professionals. The way Candex delivers it is through a digital plug-and-play solution, removing the need to be dependent on human intervention. “It’s a horizontal solution for any good or service, and it’s available in over 45 countries now,” says McQuiston. “It becomes part of the customer’s ecosystems and leverages the P2P process. It’s super compliant, and allows a lot of control.”
With this tool in place, Candex’s customers are able to gain much better control over their smaller purchases, defining what is allowed to be purchased. For many, this tool allows them to put tighter restrictions on purchases than their e-procurement systems are able to do. Additionally, Candex runs suppliers through screenings every day, which generally doesn’t happen for small, rarely-used suppliers.
“We run really detailed compliance and sanction screening against all those vendors, taking away a really daunting task from customers,” McQuiston states. “Customers probably check those suppliers once when they’re being set up, but then they never look at them again. Every day, we’re checking them, and keeping an eye on them when our customers can’t.”
Candex’s reporting is extremely detailed, and provides customers with the kind of real-time visibility they wouldn’t normally get – even in their own systems. Reports are generated weekly or monthly, including the diversity status of suppliers. This is data that a lot of clients then feed directly into their Power BI tools and data lakes, meaning they’re able to integrate it seamlessly into their other data.
Cleaning up the data
The whole purpose and aim of Candex’s tool is to make life easier for its customers, streamline its processes, and improve efficiencies. To that end, standardisation is key when it comes to business improvements, and that includes preparing data prior to implementing new technologies and processes. When it comes to ensuring a business’s data is healthy – before launching into major tech changes – accepting the necessity of making foundational change is key.
“Data cleansing processes are ugly, cumbersome, and long – and everyone has to do them,” McQuiston comments. “But you have to accept that you’re going to have to do something, if you want to get a handle on your spend. First and foremost, you need to standardise the way you name things, the way you put data in the system, and you need a really strict discipline around that. All of those things will make backend processes a lot easier.”
It’s just one of many considerations CPOs need to bear in mind when seeking out technology solutions and implementation. Modern procurement departments have a seat at the wider business table now, and what they do impacts the entire business. So when it comes to utilising solutions for the sake of the business at large, there are many factors to think about.
“As with any data or technology, it’s all about garbage in and garbage out,” says McQuiston. “Any advanced technology should be used with caution and viewed with a critical eye. You have to start with knowing what you want out of it.
“A lot of times, people put technology in place because it looks interesting, but you need to start with the problem and work backwards. If the issue is user experience, you need to make sure that whatever you’re implementing focuses on a positive UX. If the problem is unclean data, you need to make sure you’re putting in place all the foundational elements you need to make that better. Always start from the perspective of implementing a technology based on a problem, rather than the other way around.”
Improving UX in 2025
It’s a seriously dynamic time to be involved in procurement right now, as evidenced by the intense buzz around us at DPW Amsterdam as we sit with McQuiston. As we look ahead, she envisions that procurement will have an increasingly powerful impact on user experience. This is particularly important at a time when tasks are becoming increasingly automated, with less and less direct human interaction.
“We’re also seeing a pretty big leap forward in terms of best practice sharing amongst our clients,” says McQuiston, something that events like DPW also encourage. “For Candex, a big theme of 2024 has been getting our clients together to share best practices and information, helping them to develop further expertise in the field. 2025 will have more of the same, but there’s now a higher level of maturity out there in the way customers are considering tail spend. As people continue to onboard solutions, it will be interesting to see how that impacts the UX in relation to Candex. We’re always looking for ways to make our tool more user-friendly and add better functionality.”
All of this is why Candex’s customers love the company. On a base level, Candex takes a complex pain point and makes it simple. In a broader sense, the reason Candex is becoming so popular is the way it works with people. “The most common feedback we get from customers and suppliers is that we’re great to work with because we’re so flexible,” says McQuiston. “We hired a team of procurement experts, so our team is made up of people who really understand the pain of our clients, and can anticipate their fears, their needs, and cater to those.”
The buzz of DPW Amsterdam draws in the most innovative minds across the industry. They’re there to have riveting conversations…
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The buzz of DPW Amsterdam draws in the most innovative minds across the industry. They’re there to have riveting conversations with their peers, to inspire, to teach and learn in kind. And they’re there to keep an eye on an industry that doesn’t stop changing for the better.
This is a big part of the appeal for Fraser Woodhouse. Woodhouse leads the digital procurement team within Deloitte in the UK. His team historically focused on large-scale transformations, providing a backbone for suite implementation. Increasingly, however, it’s turning its attention to helping clients navigate a plethora of technology solutions. The goal is to help them build and scale, and take advantage of some of the more niche functionalities available. These are things that can be highly daunting for many customers, which is why Deloitte is there for support.
“We’re helping clients ask the big questions,” Woodhouse explains as he sits down with us at DPW Amsterdam 2024. “How do you connect the technology in a way that allows data to flow from one system to another? How do you deal with processes that are connected to solutions which all have their own release cycles? How do you approach change management? That underpins so much of where the value is going to be achieved, and a lot of the providers will be focusing on it. They just might not have the same capability that Deloitte can provide.”
For Woodhouse, getting involved with procurement was a total accident. He even left the sector at one point, but his strong foundational knowledge – and the exciting landscape procurement is enjoying right now – lured him back in. “It changes faster than I can get bored with it, that’s for sure,” he explains. “Procurement is fascinating.”
Aspiring to greatness
Especially now, with constant conversations around genAI, 10X, and beyond. Procurement is only becoming more interesting, more enticing, drawing young professionals in to fill gaps in the talent pool. 10X was actually the theme of DPW Amsterdam this year, a notion that’s on everyone’s lips. And for Woodhouse, it’s absolutely something to aspire to.
“Aiming for 10X is sensible. You just have to consider your timescale. I’d caution against running before you can walk, but a culture of experimentation is important. Running small-scale pilots can help you hone in on where you really want to see value, or where value is likely to be generated. Starting with requirements is a fundamental thing at the moment, but you shouldn’t underestimate how long that will take. And it’s a continuous consideration, because requirements change. Just keep trying to refine your solution in order to take advantage of everything that’s out there right now.”
Fotograaf: MichielTon.com
Having the wrong mindset is one of the major barriers to adopting 10X thinking. It all starts with the company’s culture, and whether that’s one of growth or not. “I imagine most of the people here at DPW Amsterdam have already made that mental shift,” says Woodhouse. “Last year, people were still trying to understand how they, as big companies, could utilise startups. That’s changed now, and it’s amazing to see companies that were startups three years ago working with all these big enterprise customers.
“They have scaled and grown in partnership with those customers. Mindset is so important, and having the wrong one will only create barriers and missed opportunities.”
Always improving, never slowing down
When it comes to the advantages that technology has brought to procurement in the last few years, the list is endless. Procurement has gone from an overlooked segment of any given organisation, to having a seat at the table and helping make major business decisions. 10X thinking – whether it goes by that name or not – has been spreading across the segment and fuelling businesses to aim higher.
“The layers of automation have really improved,” says Woodhouse. “A year or so back, there were a handful of use cases that you could truly automate, but now you can do it at a much larger scale. Another big change is around security concerns. There are more tried and tested case studies to draw upon now, and solutions are more readily available. You don’t necessarily have to be a pioneer, because someone else has already taken that first step.”
The question of data
Something else that holds businesses back, despite the innovation at their disposal, is an element that can be harder to change: poor quality data. When trying to implement advanced technology solutions, bad data can make or break their success.
“It’s always useful to focus on that and have a dedicated work stream,” Woodhouse advises. “You need someone who really understands data. I think there’s a tendency to try to boil the ocean before you even get going in your transformation, which isn’t necessarily a bad thing. Cleaning up your data before you start, and having a fresh foundation will help you make decisions on what to implement on top of that good data.
“Doing all of that is obviously hugely beneficial, but it’s going to slow you down, in many cases. There are ways around that, like embedding the cleanup of data within the new processes. Data is important – we shouldn’t underestimate that – but there are different approaches to solving the issue of poor quality data, like buying it or using genAI to restructure your data into something more powerful. Either way, you need a strategy.”
Novel thinking 101
Some businesses fall into the trap of thinking that they can’t achieve specific things because their data isn’t in the right position, but novel thinking around data can allow them to still drive forward. “You’ve just got to focus on it. You can’t assume the data’s going to fix itself,” Woodhouse adds.
Novel thinking is certainly something that can be seen at DPW events, and DPW Amsterdam 2024 was no exception. People congregated there to learn, to share stories, to inspire. For Woodhouse, the magic of the digital procurement sector right now is that everybody recognises that their journey has no end. While that may be daunting, it’s a positive thing and keeps procurement professionals striving for more.
“It’s a continuous improvement journey, and I think the best-performing organisations will recognise that, and invest in the business capability to continue that journey,” Woodhouse concludes. “That’s how you get proper value. I love hearing about how people frame problems differently, and how they approach the solutions.”
Making procurement slicker, more streamlined, is the name of the game right now – and this is precisely why Globality…
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Making procurement slicker, more streamlined, is the name of the game right now – and this is precisely why Globality exists. It’s an organisation which leverages advanced, native-built AI to make sourcing more autonomous for Fortune 500 and Global 2000 companies, meaning it has a finger on a pulse of the technology tools procurement now has access to as the industry shifts and evolves.
Keith Hausmann is the Chief Customer Officer at Globality. He has been working in procurement since the early 90s, both in industry as a service provider, and now, at a technology company. He came to Globality from Accenture, where he ran the operations business. During his first real job after college, Hausmann was also part of a training program at a major Fortune 500 company, working closely with a COO. At some point they got into a conversation about salespeople seemingly having an advantage over procurement people due to their access to information, knowledge, and training. The COO suggested that they launch a company to help support procurement. For Hausmann, it was a serendipitous entry to the industry.
“I came to Globality because I saw the business was struggling with how to scale, automate, and deliver a differentiated user experience. Ultimately, I found it really compelling, and joined about five years ago.”
Achieving 10X thinking
Hausmann admits that the concept of what procurement is has only been defined relatively recently, and he’s been in the industry long enough to have seen the shift happen and suddenly accelerate over the last few years. Now, procurement professionals are in a position where they’re able to think big, and they have the tools to support that way of thinking. One of the most-discussed topics right now is 10X, whereby businesses are setting targets for themselves that are 10 times greater than what they can realistically achieve.
“There continues to be, and always has been, so many mind-numbing manual activities that go on in procurement spaces,” says Hausmann. “We’ve built small armies of teams to handle those things. I think 10X has prompted us to take a step back and ask if there’s now technology that can uplift the role of people in the function and take on some of those automatable tasks. Whether that’s writing RFPs, discovering suppliers, or analysing proposals – these are all things that can be automated in today’s technological world. With 10X thinking, you can imagine the many, many, many things that can be automated and just go after them.
“There are barriers, of course. The biggest one is not being able to convey a compelling vision of what we want people to do in the new world. It’s not necessarily about making them go away – it’s about making their daily jobs, lives, and work more valuable. There are so many things around category thinking and strategy that don’t get done because people are spending so much time on tasks that could be automated. So I think the barrier is creating that vision and that plan to shift the operating models, roles, and the skill sets to something new and different.”
People power
Hausmann believes that if roles are reshaped and honed in response to automation, it’s less likely that there will be resistance to change because employees will know exactly what they’re doing, rather than being concerned about their future. “They have to know what they’re doing before they jump on board. It just requires a mindset change and good change management.”
Hausmann believes it’s down to the CPO to drive that change management by conveying the activities, impacts, roles, and operating model they envision. If they can paint a picture of how humans can impact things in a new way, alongside the new technology rather than against it, suddenly it’s an exciting prospect and people are keen to make a bigger impact.
CFOs and CPOs joining forces
While CPOs now have a long-deserved seat at the table to help push change business-wide, CFOs’ roles are also expanding and having an increased impact on procurement. “I think they’ve always influenced what’s going on in procurement,” says Hausmann. “CFOs are the champions of many things, but certainly improving the bottom line of the company. They’re also champions of using technology to make the organisation more resilient, more scalable, and more efficient. There was a time when people thought that the CTO or CIO would be doing that, but more often than not, the CFO is the ultimate owner of improving business impacts. More and more, we’re seeing our customers leaning on the CFO to help them make decisions about investments that have a big impact through technology and AI.
“These days, the relationship between the CFO and CPO is wildly different to what it once was, and CFOs are showing more interest in procurement as a function than ever, making a difference to the bottom line. It makes sense because, in theory, procurement controls one of the biggest cost line items in a company, besides raw headcount.”
Matching the pace of technology
The fact that we still need to focus on change management and relationships confirms that the way procurement is changing isn’t just about the technology. Far from it. However, technology is moving at an incredible pace and needs to be taken seriously. There are things that are possible now which couldn’t be done even one or two years ago.
“A few years ago, technology couldn’t write an RFX document for you,” Hausmann says. “Technology could not instantaneously bring to light the most relevant suppliers from within a customer’s supply base, or in the broader market. It couldn’t write a contract, or an SOW, or a work order. It can now. Those are things that are near and dear to my heart that were impossible 3-5 years ago.”
With these tools in mind, procurement professionals are able to think about the future in short-term stints. Five-year plans are no longer good enough when it comes to the way procurement is shifting – a year is now the maximum for putting plans in place.
“I’ve always thought that procurement, from the perspective of technological advancement and investment perspective, should sit under a broader business umbrella,” says Hausmann. “I’d guess that probably 50% of companies in the world right now have some kind of program in place to save money or improve agility by investing in technology. And speed to market is more important than ever, so sourcing can’t be a bottleneck.”
Looking ahead, Hausmann expects to see many of the unique, differentiated technology providers becoming interoperable together, because big enterprises want services that operate and scale well in combination with others.
“We’re seeing that a lot, and working with our customers on how we improve interoperability and integration,” he says. “Tools will become more seamless, more easy-to-use, more scalable. Another big thing is, and will continue to be, analytics. It’s a hot topic in procurement, and I think there are profound opportunities to be deployed. For Globality, we’ll continue to endlessly innovate on user experience, ease of use, and beyond.”
“I’m overwhelmed,” are Matthias Gutzmann’s first words when asked about DPW Amsterdam 2024. At the end of the bustling two-day…
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“I’m overwhelmed,” are Matthias Gutzmann’s first words when asked about DPW Amsterdam 2024. At the end of the bustling two-day event, we sat down with Gutzmann, the company’s founder, and Herman Knevel, DPW’s CEO, for a debrief. Gutzmann also quite rightly pointed out that the final word on summarising those 48 hours is in the hands of the sponsors and attendees, but if the countless conversations we had with said sponsors and attendees are anything to go by, it was the best DPW event yet. And Gutzmann and Knevel agree.
“I really think that’s the case,” says Gutzmann. “We almost doubled the number of exhibiting startups, we had over 120 sponsors, more startup pitches than ever, and all the feedback I’ve heard so far has been amazing. There are always things you can do better, but I’m absolutely happy.”
Across the 9th and 10th of October, DPW Amsterdam welcomed over 1,300 attendees through its doors at Beurs van Berlage, Amsterdam. Those attendees arrived from 44 countries across 32 industries, and the event itself featured 72 sessions with 140 speakers across five stages. It’s abundantly clear that people are deeply passionate about DPW.
“On day one, it was already packed at 8:30 in the morning,” Knevel states. “The energy in the room was contagious, and the numbers speak for themselves. The startups, the innovators, the corporates, the mid-market – everybody who’s here has a genuine interest in what these guys are bringing to the procurement space.”
Reconnecting with the vision
Gutzmann describes that intangible energy as “bringing a little bit of joy back to procurement”. For many years, procurement was a very ill-defined concept – almost as ill-defined as the role of CPO. The shift has been a quick one, accelerated further by the COVID-19 pandemic, and events like DPW Amsterdam are part of the reason why. CPOs having somewhere to go, to meet, to learn about the procurement landscape is vital, hence that inspiring energy that permeates every DPW event.
“A lot of people are missing that vibe,” Gutzmann continues. “It’s why I founded DPW. I was inspired by Mark Perera [Chairman of DPW], who I worked with at Vizibl, and had great technology while also being so inspiring. I realised we needed to connect founders with CPOs. I think every CPO should talk to one startup founder per week, at least. It’s important that we listen to their vision.”
Striving for 10X
The core of those visions for the 2024 event revolves around the concept of 10X, the idea being that you set targets for your business that are 10 times greater than what you think you can realistically achieve. It keeps people ambitious, always striving for greatness, and it’s especially prevalent in startup culture – hence Gutzmann’s belief that CPOs should be connecting with them more.
“Deciding on 10X for this year’s theme was serendipity,” says Knevel. “The term came along and Matthias said, ‘this is it – this is what we need in procurement’. This is what the industry needs, and we’re exploring it, diving deeper.”
“Last year’s theme was ‘Make Tech Work’, which was all about getting the basics right in order to scale,” Gutzmann continues. “This year we said, ‘how can we take it further?’ We are entering the biggest wave of AI yet. That technology is giving us the opportunity and the possibility to scale outcomes. The world around us is changing so fast, so we need to be more agile, scalable, and faster in procurement. It’s a very ambitious, maybe lofty theme, but it’s a mindset more than anything else.”
“It’s the mindset that drives innovation and speed,” Knevel adds. “That’s really important in this age of procuretech and supply chain tech.”
When it comes to honing that 10X mindset, it’s all about having a purpose in mind. A lot of the procurement professionals we spoke to at DPW Amsterdam called this a ‘north star’, which is the phase Gutzmann uses too. “That’s where it starts. There’s so much procurement can do. There are so many problems in the world, and I believe procurement can be the solution to many of those. So I think it starts with the CPO and their leadership, their vision. You also have to embrace startup innovation, be more experimental in the way you work, instigate new ways of working, and be bold in your thinking. You also have to remember it’s okay to fail.”
Growing DPW
Something that’s particularly impressive about DPW Amsterdam 2024 is that it’s actually the second of the year. Back in June, DPW ventured into the North American market with an intimate summit held in New York City, which CPOstrategy was fortunate enough to be invited to. Planning one wildly popular event a year is one thing, but venturing into a whole new part of the world with an additional one is incredibly dedicated.
“I’m a bit more conservative when planning ahead, so there probably wouldn’t be a New York event without Herman encouraging me,” says Gutzmann. “I’m glad he said ‘let’s go for it’. It was a short-term plan, but it was ultimately very successful and the right decision.”
Knevel adds: “The feedback we got from sponsors and delegates was quite impressive. They were asking for more. And it’s not just Matthias and myself – we have a great team here. This is a massive production, but we made the jump and it’s paid off.”
Inspiration for 2025
When it comes to the lessons Gutzmann and Knevel have learned in response to this event, it’s more about narrowing down the influx of ideas DPW gives them. By the time we spoke with them at the end of the Amsterdam 2024 event, their heads were spinning with inspiration.
“I have so many ideas,” says Gutzmann. “Every year we reinvent the show, so we never rest. We’re always asking what we can do better. How can we improve? I think this year we maxed out the number of sponsor stands that are possible to have. We doubled the number of under-30 attendees. There’s the potential to go a little deeper on the talent side, connecting students with the corporates and building a proper program around that.”
There was also the Tech Safari this year. The idea was to make the expo hall easier to navigate, since it was more crowded than ever this year. Members of the DPW team acted as ‘super connectors’ to help attendees find the right solutions and help startups find new customers. The aim was to simply make it easier for everyone involved to find what they’re looking for in small groups,enabling them to find who they wanted, talk to them, and ask questions. It turned out to be an amazing interactive experience for people, making sure they felt thoroughly looked after and valued.
“Plus there’s an opportunity to cater more to the corporates coming in,” Gutzmann continues. “Perhaps we will build a custom program for them around the event. Some of them are already coming in with teams and doing annual leadership meetings outside of the venue, but I think there’s scope to show them solutions and do some workshops within the event. We can also do more with day zero, where we have site events. There’s much more we can do.”
Giving CPOs what they want
As for the broader future of the event, DPW’s heart lies in Amsterdam and will continue to do so. The organisation is building its team even further and putting strategies in place for future events, allowing it to move forward. “We follow the demand of what our customers want,” Knevel says. That’s what really drives DPW and how the event is themed and set up. The organisation listens to CPOs so it can give them exactly what they need, and what will help the industry level up further and further.
“There are things we’re still developing,” says Gutzmann. “For example, the podcast studio [something introduced in its current form for 2024] is something Herman is very passionate about, so it was great to test it out here. There’s more we can do with that. We have so many ideas and it’s important to engage our amazing team on these ideas and see what they think along the way.”
“We’re ideating a lot,” Knevel adds. “And we’re asking our ecosystem what we should do more of.”
“Ultimately, we’re bringing in the voice of the customer to make sure we’re giving them what they want and need,” Gutzmann concludes. “That’s the whole purpose of DPW.”
Ozone API has provided Open Banking Limited (OBL) with an updated model bank as the model bank provider for OBL to reflect v4.0 of the Open Banking standards
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The global open banking leader, Ozone API, has launched an updated platform for Open Banking Limited (OBL) in line with the UK’s latest standards. It is the first major update since the introduction of VRPs.
Ozone API has successfully updated the model bank to support the rollout of the UK’s Open Banking Standards v4.0. This positions Ozone API as the first provider to deliver fully compliant APIs, facilitating the transition for financial institutions and third-party providers (TPPs) operating in the UK.
Open Banking Standards
The changes were announced by OBL in early July. OBLv4 introduces some mandatory updates for the UK’s CMA9 banks, with some required to be completed by as early as 31st December 2024. Additionally, ISO 20022 is set for implementation by 31st March 2025. Alongside the Bank of England’s publication of mandatory updates to payment regulations. These proposed changes have been driven by several significant factors, including the deprecation of key security standards such as FAPI 1 Implementers Draft 2.
While the UK open banking standard was initially mandated just for the CMA9 banks, it has become the de facto standard for the UK market. However, many UK banks remain on old versions of the standard.
The OBL model bank serves as a critical testing ground for banks and financial institutions, enabling them to experiment with and refine their API implementations in a controlled and secure environment. It will serve as a vital resource for banks, fintechs, and other TPPs by providing a safe space to develop and test their APIs in alignment with the new OBLv4 standards. It is designed to help institutions comply with the regulatory changes.
Ozone API
“We’re delighted to confirm that we’re the first provider to launch a platform that reflects v4.0 of the Open Banking Standards for Open Banking Limited. We’re excited to work with our partners to support fast and high-quality API changes, ahead of the first legislative deadlines coming into force later this year. Ensuring a smooth transition to the updated standards is critical for banking players who want to stay at the forefront of open banking industry changes into 2025 and beyond. We are extremely proud that our market-leading platform is ready to support our customers and partners as they transition to v4.0. I’m pleased that we’re able to support the entire UK financial ecosystem to start their OBLv4 journey by providing the OBL’s model bank. Our founding team were closely involved during their time working with the Open Banking Implementation Entity in the development of the UK Open Banking Standards, and we remain committed to enabling UK banks to make the most of open banking now and into the future.”
Huw Davies, CEO of Ozone API
Open Banking Limited
“Open Banking Limited is not only committed to maintaining the open banking standard, but also supporting the ecosystem by helping participants with their journey to version 4. This includes upgrading the model bank to v4 to provide as much support and coverage to participants as possible including the FCS, Standards and technical guidance.”
Henk Van Hulle, CEO, Open Banking Ltd
Ozone API has launched a comprehensive guide and a series of educational resources to accompany the new OBLv4 standards, aimed at helping banks and FIs navigate the changes smoothly and efficiently. The guide and resources provide actionable insights and best practices for institutions of all sizes.
Since the UK Government announced it would revisit the Data Protection and Digital Information Bill in July 2024, it is anticipated that the UK will see more regulatory changes related to open banking, smart data and the open data economy.
Other key findings include surge of info-stealers and botnets, an increase in evasive malware and a rise in network attacks across the Asia Pacific
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WatchGuard® Technologies, a global leader in unified Cybersecurity, today released the findings of its latest Internet Security Report. The quarterly analysis details the top malware, network, and endpoint security threats observed during the second quarter of 2024.
Among the report’s key findings was that 7 of the Top 10 malware threats by volume were new this quarter. Furthermore, this indicates threat actors are pivoting toward new techniques. The new top threats included Lumma Stealer. This advanced malware is designed to steal sensitive data from compromised systems. Also, a Mirai Botnet variant, which infects smart devices and enables threat actors to turn them into remotely controlled bots. And a LokiBot malware, which targets Windows and Android devices and aims to steal credential information.
Cybersecurity fears for Blockchain
WatchGuard’s Cybersecurity Threat Lab also observed new instances of threat actors employing “EtherHiding”. A method of embedding malicious PowerShell scripts in blockchains such as Binance Smart Contracts. In these instances, a fake error message linking to the malicious script appears on compromised websites, prompting victims to “update your browser”. Malicious code in blockchains poses a long-term threat. As blockchains are not meant to be changed, theoretically, a blockchain could become an immutable host of malicious content.
“The latest findings in the Q2 2024 Internet Security Report reflect how threat actors tend to fall into patterns of behaviour. Certain attack techniques become trendy and dominant in waves,” said Corey Nachreiner, CSO, WatchGuard Technologies. “Moreover, the report illustrates the importance of routinely updating and patching software and systems to address security gaps and ensure threat actors cannot exploit older vulnerabilities. Adopting a defence-in-depth approach, which can be executed effectively by a dedicated managed service provider, is a vital step toward combating these cybersecurity challenges successfully.”
Additional key findings from WatchGuard’s Report include:
Malware detections were down 24% overall. This drop was caused by a 35% decrease in signature-based detections. However, threat actors were simply shifting focus to more evasive malware. Moreover, in Q2 2024, the Threat Lab’s advanced behavioural engine that identifies ransomware, zero-day threats, and evolving malware threats, found a 168% increase in evasive malware detections quarter-over-quarter.
Network attacks increased 33% from Q1 2024. Across regions, the Asia Pacific accounted for 56% of all network attack detections, more than doubling since the previous quarter.
An NGINX vulnerability, originally detected in 2019, was the top network attack by volume in Q2 2024. It had not appeared in the Threat Lab’s Top 50 network attacks in previous quarters. The vulnerability accounted for 29% of total network attack detection volume, or approximately 724,000 detections across the US, EMEA, and APAC.
The Fuzzbunch hacking toolkit emerged as the second-highest endpoint malware threat detected by volume. The toolkit serves as an open-source framework that can be used to attack Windows operating systems. It was stolen during The Shadow Brokers’ attack of the Equation Group, an NSA contractor, in 2016.
Seventy-four percent of all browser-initiated endpoint malware attacks targeted Chromium-based browsers, which include Google Chrome, Microsoft Edge, and Brave.
A signature that detects malicious web content, trojan.html.hidden.1.gen, came in as the fourth most-widespread malware variant. The most common threat category caught by this signature involved phishing campaigns. These gather credentials from a user’s browser and deliver this information to an attacker-controlled server. Curiously, the Threat Lab observed a sample of this signature targeting students and faculty at Valdosta State University in Georgia.
UBS Digital Cash aims to increase efficiency, transparency and to enable the programmability of money movements for corporate and institutional clients
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Cross-border payments often lead to delayed settlements. As a result, this creates a fragmented view of liquidity positions for companies. The aim is to increase transparency and security with blockchain-based payments via UBS Digital Cash. Moreover, this should in turn facilitate timely payment processing. In addition, companies should be able to manage intraday-liquidity and adjust liquidity buffers on their accounts more easily in the future. This is thanks to greater visibility of their total cash positions.
USB Digital Cash with Blockchain
Andy Kollegger, Head UBS Institutional & Multinational Banking, says: ”UBS Digital Cash going forward aims to enable our clients to make cross-border payments in a much more efficient and transparent way. Furthermore, Blockchain-based payment solutions for cross-border payments are a strategic focus for UBS. With the successful UBS Digital Cash pilot, we have reached another important milestone.”
In the pilot, transactions with multinational clients and banks were successfully carried out. These included domestic transactions within Switzerland and cross-border payments in US dollars, Swiss francs, Euros and Chinese yuan. Additionally, the pilot also included the transfer of liquidity between various UBS companies. UBS plans to expand and develop its UBS Digital Cash offering in further steps.
The advantages of Blockchain-based payments solutions
Pilot participant Janko Hahn, Head Treasury Operations at Autoneum, says: “The UBS Digital Cash pilot showcased the key advantages of blockchain-based payment solutions. They make cross border transactions faster, on time and provide a seamless traceability, which is a huge benefit when operating in a global market.”
Xiaonan Zou, UBS Head Digital Assets, Group Treasury, adds: ”We see the interoperability between UBS Digital Cash and other digital cash initiatives as key for the financial industry. In addition to their role in correspondent banking, they also have the potential to streamline and simplify the settlement of tokenised assets in the capital market.”
How does UBS Digital Cash work?
For the payment process, UBS Digital Cash uses a private blockchain network to which only the permissioned clients have access. The settlement is performed via smart contracts, which, for example, automatically execute payments as soon as predefined conditions are met. Client transfers at UBS are recorded and processed in a digital system for recording transactions. They are independent of currency, practically in real time and around the clock. UBS Digital Cash complements UBS’s involvement in a wide range of market initiatives. These include the Swiss National Bank-led project Helvetia for real wholesale Swiss franc Central Bank Digital Currency (wCBDC), as well as the Agorá project, led by the Bank for International Settlements (BIS) together with seven central banks, to unlock central bank money and tokenised deposits from commercial banks in the cross-border payment context.
About UBS
UBS is a leading global asset manager and the leading universal bank in Switzerland. In addition, the company offers diversified wealth management solutions and focused investment banking functions. With the acquisition of Credit Suisse, UBS has assets under management of $5.7 trillion as of the fourth quarter of 2023. UBS supports its clients in achieving their financial goals through personalised advice, solutions and products. Headquartered in Zurich, Switzerland, the company operates in more than 50 markets around the globe. UBS Group AG shares are listed on the SIX Swiss Exchange and the New York Stock Exchange.
additiv, a global leader in fintech and digital transformation, has announced the launch of an InsurTech solution with AXA Switzerland
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AXA Switzerland has successfully launched its addProtect bancassurance offering, powered by additiv’s technology platform. Furthermore, this innovative InsurTech solution allows banks to directly protect their mortgage customers against key risks with a simple plug-and-play solution.
addProtect InsurTech solution from additiv
As a seamless plug-and-play solution, addProtect gives banks direct access to the platform without the need for additional integration with existing IT systems. Its user-friendly and intuitive design allows banks to effortlessly integrate the platform into their day-to-day business operations. With the death and payment protection insurance, bank advisors have easy-to-understand products at their disposal. These offer added value to customers beyond the existing offering. The addProtect platform is now available for banks, and an initial pilot will be launched in collaboration with PostFinance.
Samuel Peter, Head of Partnerships at AXA Switzerland, stated:
“With addProtect, AXA is responding to the growing need of customers and banks for appropriate insurance solutions where and when they are needed. The solution creates additional advisory potential and better protection for the customers of our partners’ banks. We look forward to making the solution available to other partners.”
Dieter Lützelschwab, General Manager Switzerland at additiv, added:
“When developing addProtect, we focused on the user experience for the customer and the bank advisor. In addition, our platform provides an easily configurable, modular insurance solution that covers the entire value chain from quotation to claims processing.”
About additiv
additiv empowers the world’s leading financial institutions and brands to create new business models and transform existing ones. additiv’s API-first cloud platform is one of the world’s most powerful solutions for wealth management, banking, credit, and insurance. The InsurTech technology, together with the global ecosystem of regulated financial services providers, opens up new opportunities for banks, insurance companies, asset managers, IFAs and consumer brands to quickly and flexibly offer their own and third-party financial solutions through existing or new customer channels.
Headquartered in Switzerland, with regional offices in Singapore, UAE, Germany, and the UK, and more than 250 employees, additiv serves over 400 financial institutions (banks, insurers, asset managers, pension providers, IFAs, etc.) and brands worldwide.
Bitget announces $100k seed funding through ‘Pitch n Slay’ roadshow competition
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Bitget has launched the ‘Pitch n Slay’ roadshow competition, aiming to provide financial support, professional guidance and exposure for female entrepreneurs. This will be delivered through collaborations with organisations such as World of Women, Women in Web3, Bitget Wallet, Foresight Ventures and Morph. The initiative is designed to help female leaders expand their projects.
Bitget Blockchain boost for female entrepreneurs
The final will be held during DevCon in Bangkok, Thailand on November 15. The shortlisted “Pitch n Slay” project contestants will present their optimised projects to investors and a jury panel. The jury members include Gracy Chen – CEO of Bitget; Taya A – CEO of World of Women; Min Xu – Partner at Foresight Ventures; along with other outstanding Web3 leaders. Three winners will have the opportunity to share $100k seed funding.
Blockchain4Her
Bitget is the third largest exchange for crypto derivatives with a user base, surpassing 20 million registered accounts globally. Furthermore, it is one of the largest platforms for cryptocurrency copy trading. Meanwhile, the daily trading volume on Bitget exceeds 10 billion USDT, reflecting its significant market presence.
“Bitget is committed to gender inclusivity with women making up more than 45% of our management team. We are also dedicated to creating an inclusive culture for the LGBT community. Through the Blockchain4Her program we hope to create more growth opportunities for women-led startups We’ll continue to expand this platform, creating pathways for growth and amplifying women-led startups in Web3.”
Gracy Chen, CEO, Bitget
About Bitget
With a background in traditional finance, Bitget’s founding team discovered blockchain technology in 2015. But it was viewed as “tulip mania” by the industry back then. In 2018, we became intrigued by cryptocurrency after studying the Bitcoin whitepaper and Ethereum ecosystem. We believed that cryptocurrency would play an important role in the future and even benefit the unbanked groups.
Born in a bear market, Bitget insists on putting users first, focusing on product innovation, and advocating long-term development with the spirit of earnestness. The company aims to inspire people to embrace crypto and improve the way they trade, one at a time.
New collaboration between Plumery and Payment Components
will enable financial institutions to adopt instant payments without overhauling existing core banking infrastructure
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Plumery, a digital banking experience platform for customer-centric banking, has announced a new partnership with Payment Components, a leader in payments and open banking solutions. By decoupling digital experience and payments processes from legacy systems, institutions can now innovate more flexibly and efficiently. They can streamline operations while maintaining their existing core banking frameworks.
Progress for Payments
By leveraging Plumery’s innovative approach and Payment Components’ expertise, this partnership allows clients to accelerate time-to-market and future-proof operations against regulatory shifts such as the Instant Payments Regulation (IPR). Financial institutions can offload the burden of implementing new digital channels and instruments, such as real-time payments, without altering their core systems.
The IPR aims to make instant payments fully accessible to consumers and businesses across the EU. Currently only a minority of service providers support instant payments. While such regulatory changes usually impact core banking infrastructure, the Plumery and Payment Components partnership ensures these systems remain unaffected.
“This partnership is crucial for institutions needing to rapidly modernise without overhauling their entire infrastructure. Together, we offer a powerful, flexible solution that enables our clients to embrace innovation while staying ahead of regulatory changes like the IPR. Adding Payments Components to our partner ecosystem solidifies our commitment to creating cutting edge solutions that embrace digitisation.”
Ben Goldin, Founder and CEO of Plumery
This global partnership offers a streamlined path to modernisation, enabling financial institutions to stay compliant, competitive and responsive to ongoing market shifts with solutions ready to support firms as they navigate the evolving financial landscape.
“Our collaboration with Plumery will empower financial institutions to seamlessly adopt modern payment technologies, addressing the complexities of regulatory changes, all while minimising disruptions to existing systems. We wanted to work with Plumery because both our company’s share a similar approach, work ethic and most importantly because of the compatibility of our products.”
Sotirios Nossis, Founder and CEO of Payment Components
Plumery
Headquartered in the Netherlands, Plumery’s mission is to empower financial institutions worldwide, regardless of size, to craft distinctive, contemporary, and customer-centric mobile and web experiences.
Plumery operates with a diverse team that embodies a unique combination of seasoned expertise and vibrant innovation. This blend has been cultivated through years of experience at start-ups, scale-ups, and established financial institutions, and most notably at globally leading financial technology companies, where they were instrumental in creating disruptive digital banking solutions and platforms that now serve 300+ banks globally.
Plumery’s Digital Success Fabric platform provides banks with the foundation for success beyond fast-time-to-market by expediting the development of their digital front ends while significantly cutting costs compared to in-house initiatives or solutions with high total cost of ownership (TCO).
Payment Components
At Payment Components, we’re reshaping the fintech landscape on a global scale. Today, our solutions are essential for more than 65 banks and financial institutions across 25 countries. We provide componentized solutions in a range of domains, including AI banking, open banking, account-to-account payments, and financial messaging technology. We achieve this through continuous innovation, building software components that help financial institutions become digital champions and deliver richer payment services to their clients. Our name reflects our belief: complicated processes in the financial industry will be replaced by AI-assisted dedicated components. We stand for simplicity, speed, and constant innovation
UnaFinancial study identifies cybersecurity as most influential factor driving FinTech growth
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A recent study from UnaFinancial has identified cybersecurity as the most influential factor driving the development of FinTech worldwide, with a 63% significance. The second most impactful factor is the average hourly wage rate, with a 13% significance.
The study showed that FinTech growth in Europe, America, and globally has the strongest correlation with the size of the cybersecurity market, with correlation coefficients of 0.8714, 0.9762, and 0.8607, respectively.
In Asia, however, FinTech growth was more closely tied to the size of the consumer electronics market (0.9403). Meanwhile in Africa, it correlated with consumer spending volumes (0.7427). Therefore, globally, cybersecurity emerges as the most significant driver of FinTech growth. More vital protection facilitates a more robust FinTech environment.
Economic Disparities with Cybersecurity: High Income vs Low Income Economies
Economic status also plays a crucial role in shaping FinTech dynamics. High-income countries display pronounced correlations with various factors. Notably, the size of the cybersecurity market (0.6923), consumer electronics market (0.5839), average wage rates (0.6237), and consumer spending volumes (0.6971) are all significantly linked to FinTech growth.
Conversely, low-income economies exhibit no substantial correlations with these factors, highlighting a disparity in FinTech development influenced by financial resources and technological infrastructure.
Middle-income countries show a more nuanced relationship, with FinTech volumes correlating with nominal GDP (0.5373), the cybersecurity market (0.5727), consumer electronics (0.5637), fintech hubs (0.5409), and consumer spending volumes (0.6136). This suggests that while multiple factors impact middle-income countries, cybersecurity remains a vital component.
Quantifiable Cybersecurity Impact on FinTech
Furthermore, another interesting finding was the measurable impact of various factors on FinTech transactions. For example, for every $1 million increase in the global cybersecurity market, FinTech transactions per adult are expected to rise by $31.6. Similarly, a $1 increase in the average hourly wage could boost FinTech transactions by $67.5. The establishment of just one more FinTech hub could increase global FinTech transactions per capita by $839.
Remarkably, as a country’s income grows, the correlation between FinTech growth and two factors—cybersecurity market size and average wage rates—becomes stronger. This means these factors may indeed influence the development of FinTech across a country.
A deeper non-linear analysis further validated the significance of these factors. It revealed that the cybersecurity market is the most influential driver of FinTech growth, with 63% of significance, followed by the average wage rate (13%). As we advance into an increasingly digital future, the investment in and enhancement of cybersecurity will remain a cornerstone of FinTech innovation and expansion.
UnaFinancial Study
The UnaFinancial study considered data from 2022 for 146 countries, which were grouped into four regions: Asia, Europe, Africa and America. The potential factors under consideration included gender ratio, nominal GDP per capita, Internet penetration, cybersecurity market volumes per capita, consumer electronics market volumes, number of FinTech hubs per 100,000 people, average hourly wages, consumer spending per capita, direct investment as a share of GDP, unemployment rates, trade volume relative to GDP, and share of urban population.
The study not only illuminates the integral role of cybersecurity but also provides a roadmap for understanding how various factors interplay to influence the global FinTech landscape. In this digital age, safeguarding financial transactions and technologies is as critical as ever. Moreover, ensuring that FinTech continues to flourish amidst evolving challenges and opportunities.
Money20/20, operates the world’s leading fintech events in Europe, Asia and USA and is “the place where money does business”….
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Money20/20, operates the world’s leading fintech events in Europe, Asia and USA and is “the place where money does business”. Money20/20 USA has unveiled seven startups poised to transform the financial sector. The selected startups are Brightwave, Casap, Eisen, Footprint, NALA, Ntropy, and Zumma. They were revealed during the Startup Media Session on October 29th in Las Vegas. The Startup Media Session was designed as part of the event’s goal to support startups at the intersection of finance and business.
“Money20/20 USA is focused on what drives the conversations most relevant to the FinTech industry. From economic and regulatory uncertainty to the future of payments and the impact AI will have on money moving forward. We are proud to highlight the work these startups are doing to move this industry forward.”
Scarlett Sieber, Chief Strategy and Growth Officer at Money20/20
Brightwave
Brightwave is the leading AI platform for financial services. It delivers accurate and insightful financial research enabling finance professionals to make better decisions faster. Its purpose-built AI systems synthesize insights across thousands of pages of primary sources. It can automate the most tedious parts of investing workflows and help users spot opportunities others have missed.
“Being named one of the Top 7 Startups at Money20/20 is a strong acknowledgment of the strides we’ve made in transforming how investment research is done. We’re also excited to announce our $15 million Series A funding at the world’s premier show for financial innovation. At Brightwave, we’re tackling one of the hardest problems in finance. We’re making sense of vast amounts of data to uncover deeper insights and relationships that others miss,” said Mike Conover, Founder and CEO at Brightwave.
Casap
Casap is an AI-powered disputes automation and fraud prevention platform. With built-in regulatory expertise and network integrations, Casap’s intelligent automation identifies fraudulent claims early. It delivers fast, frictionless dispute and chargeback resolution at a fraction of today’s cost.
“Money20/20 was the first conference I attended after starting Casap last year and it played a pivotal role in validating our vision. The connections, conversations, and insights I gained were invaluable. Exactly a year later, we’re back and launching out of stealth with live customers. We’re addressing some of the most pressing challenges in scaling payments. We’re starting with automating chargebacks and combating first-party fraud. We’re deeply grateful to Money20/20 for this opportunity to reach so many in the industry and help drive meaningful change in how payments are operated at scale,” said Saisi Peter, Co-founder of Casap.
Eisen
Eisen is the first escheatment automation solution that proactively manages the offboarding of dormant accounts, stale checks, wind-downs, and more. Financial institutions rely on Eisen to simplify the complex landscape of regulatory outreach, disbursement, and escheatment requirements. It ensures compliance while reducing operational risk.
“Money20/20 has been a cornerstone for Eisen since 2021, where the very idea for our company first sparked in the halls of the Venetian. It all started with conversations about the hardest challenges in FinTech. Each year, it’s helped us refine our vision and better serve our customers. For us, Money20/20 isn’t just about growth — it’s where Eisen began,” said Allen Osgood, CEO of Eisen.
Footprint
Footprint is a Series A identity company that has raised $20M from funds such as QED and Index Ventures. The company provides a single SDK that automates onboarding – KYC/KYB, fraud, security, and authentication – into an easy-to-integrate solution. Footprint works with leading companies across the Banking, Auto, and Real Estate sectors. Its technology portabalises identity, creating a centralised database of de-duplicated authentic identities.
“Money20/20 is at the vanguard of innovation. We’ve tried to be different at Footprint. Whether that be through our recent fraud indemnification program or our approach to labeling good actors. Some may think these are crazy ideas. But it is great to see Money20/20 continue to be where crazy can get a spotlight. That is how I would like to think true innovation happens,” said Eli Wachs, Co-founder and CEO of Footprint.
NALA
NALA is a global cross-border payments fintech company based in the US doing cross-border payments to emerging markets like Africa and Asia. It has two products, a consumer FinTech product enabling migrants to send money home and an infrastructure business called Rafiki, building payment rails for Africa. NALA recently became profitable and raised a $40m series A after achieving 10x revenue growth in 12 months.
“At NALA, we are on a mission to build payments for the next billion. Emerging markets are often overlooked but shouldn’t be underestimated as these regions have seen the fastest economic growth in the world. We have big ambitions for what we would like to achieve and have exciting plans in the pipeline in the coming years,“ said Benjamin Fernandes, Founder and CEO of NALA.
Ntropy
Ntropy is on a mission to organise the world’s financial data. 80% of the world’s financial data is unstructured and locked in transactions, documents, PDFs, and images. This means it is under-leveraged and cannot be used by models at scale. Ntropy was founded to solve this problem for any type of financial data, in any language, any geography, powering humans and more recently agents and agentic workflows in finance.
“Ntropy is processing hundreds of millions of transactions and documents weekly with over 98% accuracy, in under 100ms, 1000x faster, and cheaper than any other provider on the market. You can access Ntropy via our API-s directly, and more recently via NVIDIA NIM-s. This collaboration enables flexibility in deployment and allows our customers to scale immediately. This year’s Money20/20 has been about demonstrating the real value of GenAI and we have been very fortunate to have this exposure together with our partners at NVIDIA, Oracle, and AWS, who are accelerating Ntropy’s mission,” said Naré Vardanyan, Co-founder and CEO of Ntropy.
Zumma
Zumma is a financial copilot that automates and simplifies financial processes for Latin American businesses by leveraging existing tools they already use such as WhatsApp to save them time and money. The company is starting with automating expense management and expense invoicing processes, saving their customers more than $4,000 per employee per year in tax deductions.
“Being part of Money20/20’s Startup Media Session helps us spread the word about our product to the fintech community. The Money20/20 team has been key in our growth by connecting us to key players in the industry,” said Daniela Lascurain, COO and Co-founder of Zumma.
Launched by industry insiders in 2012, Money20/20 is the heartbeat of the global fintech ecosystem. Moreover, some of the most innovative, fast-moving ideas and companies have found their feet (and funding) on its show floor. From J.P. Morgan, Stripe, and Airwallex to HSBC, Deutsche Bank, and Checkout.com, Money20/20 is the place where money does business.
Scott Zoldi, Chief Analytics Officer at FICO considers whether the current AI bubble is set to burst, the potential repercussions of such an event, and how businesses can prepare
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Since artificial intelligence emerged more than fifty years ago, it has experienced cycles of peaks and troughs. Periods of hype, quickly followed by unmet expectations that lead to bleak periods of AI-winter as users and investment pull back. We are currently in the biggest period of hype yet. Does that mean we are setting ourselves up for the biggest, most catastrophic fall to date?
AI drawback
There is a significant chance of such a drawback occurring in the near future. So, the growing number of businesses relying on AI must take steps to prepare and mitigate the impact a drawback or complete collapse could have. Research from Lloyds recently found adoption has doubled in the last year, with 63% of firms now investing in AI, compared to 32% in 2023. In addition, the same study found 81% of financial institutions now view it as a business opportunity, up from 56% in 2023.
This hype has led organisations to explore AI use for the first time. Often with little understanding of the algorithms’ core limitations. According to Gartner, in 2023 less than 10% of organisations were capable of operationalising AI to enable meaningful execution. This could be leading to the ‘unmet expectations’ stage of the damaging hype/drawback cycle. The all-encompassing FOMO of repeating the narrative of the incredible value of AI does not align with organisations’ ability to scale, manage huge risks, or derive real sustained business value.
Regulatory pressures for AI
There has been a lack of trust in AI by consumers and businsses alike. It has resulted in new AI regulations specifying strong responsibility and transparency requirements for applications. The vast majority of organisations are unable to meet these in traditional AI, let alone newer GenAI applications. Large language models (LLMs) were prematurely released to the public. The resulting succession of fails fuelled substantial pressure on companies to pull back from using such solutions other than for internal applications. It has been reported that 60% of banking businesses are actively limiting AI usage. This shows that the drawback has already begun. Organisations that have gone all-in on GenAI – especially those early adopters – will be the ones to pull back the most, and the fastest.
In financial services, where AI use has matured over decades, analytic technologies exist today that can withstand regulatory scrutiny. Forward-looking companies are ensuring they are prepared. They are moving to interpretable AI and backup traditional analytics on hand while they explore newer technologies with appropriate caution. This is in line with proper business accountability, vs the ‘build fast, break it’, mentality of the hype spinners.
Customer trust with AI
Customer trust has been violated by repeated failures in AI, and a lack of businesses taking customer safety seriously. A pull-back will assuage inherent mistrust in companies’ use of artificial intelligence in customer facing applications and repeated harmful outcomes.
Businesses who want their AI usage to survive the impending winter need to establish corporate standards for building safe, transparent, trustworthy Responsible AI models that focus on the tenets of robust, interpretable, ethical and auditable AI. Concurrently, these practices will demonstrate that regulations are being adhered to – and that their customers can trust AI. Organisations will move from the constant broadcast of a dizzying array of possible applications, to a few well-structured, accountable and meaningful applications that provide value to consumers, built responsibly. Regulation will be the catalyst.
Preparing for the worst
Too many organisations are driving AI strategy through business owners or software engineers who often have limited to no knowledge of the specifics of algorithm mathematics and the very signifiicant risk in using the technology.
Stringing together AI is easy. Building AI that is responsible and safe is a much harder and exhausting exercise requiring model development and deployment corporate standards. Businesses need to start now to define standards for adopting the right types of AI for appropriate business applications, meet regulatory compliances, and achieve optimal consumer outcomes.
Companies need to show true data science leadership by developing a Responsible AI programme or boosting practices that have atrophied during the GenAI hype cycle which for many threw standards to the wind. They should start with a review of how regulation is developing, and whether they have the standards, data science staff and algorithm experience to appropriately address and pressure-test their applications and to establish trust in AI usage. If they’re not prepared, they need to understand the business impacts of potentially having artificial intelligence pulled from their repository of tools.
Next, these companies must determine where to use traditional AI and where they use GenAI, and ensure this is not driven by marketing narrative but meeting both regulation and real business objectives safely. Finally, companies will want to adopt a humble approach to back up their deployments, to tier down to safer tech when the model indicates its decisioning is not trustworthy.
Now is the time to go beyond aspirational and boastful claims, to have honest discussions around the risks of this technology, and to define what mature and immature AI look like. This will help prevent a major drawback.
Fred Fuller, Global Head of Banking at Endava, on how banks can effectively communicate AI advancements and demonstrate ROI to investors
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There is no single solution, AI or otherwise, that can prepare financial institutions for the modern world. To build a bank capable of successfully navigating the challenges of the future, a long-term digital transformation strategy is required. Especially relevant in the wake of recent IT outages,
At present, according to Endava’s Retail Banking Report 2024, 67% of banks are still heavily reliant on legacy systems. This leads to wasted budget and decreased efficiency. With limited resources available to modernise their tech stack, company leaders are often forced to choose which technology-type to prioritise. When doing this, 50% have chosen artificial intelligence (AI).
Is AI alone enough?
Can AI overhaul archaic processes or are there too many hurdles in the way? The first hurdle to successful digital transformation in financial services is overcoming the employees’ perception of the process. Time and time again, corporations have failed in the goal to integrate solutions that successfully feed into a long-term tech strategy. Often, this is due to wide-spread change fatigue. When exhausted by continuous efforts to change their day-to-day, workers become resistant to transformation. The best way to overcome change fatigue, and drive digital transformation in financial institutions, is through overhauling legacy systems. And adopting solutions that will stand the test of time.
Legacy Systems
Across the world, outdated legacy systems are holding financial institutions back and costing them billions. From 2022 to 2028, this expense is expected to grow at a rate of 7.8%. Not only do these archaic processes cost money, but they force banks to contend with a multitude of siloes. From departments to data. We live in a world where neobanks are growing in popularity. They are able to provide a frictionless customer experience using their modern tech stack. Traditional organisations must rid themselves of siloes to enable all areas of the business to leverage AI. In turn, this will provide them with strong data collection and support from departments who are agreed on next steps.
At present, three quarters of financial institutions feel they need to modernise their core. Without this change, they lack the secure, data-driven foundation necessary to utilise AI and see return on their technical investments.
The benefits of AI integration
Once a strong foundation has been laid, it becomes easier to see the practical benefits of integrating AI. For example, when data is no longer siloed by legacy systems, using chat bots to support customers with simple queries creates an efficient consumer experience. There are internal benefits too. AI can spot potentially suspicious activity, flagging it before it is too late. Or analysing data to ensure risk management and process automation. Despite its wide-reaching capabilities, AI alone is not the only option for financial institutions…
Routes to the future
Endava’s Retail Banking Report also showcased the variety of solutions that banks are using to improve their tech stack. 45% of respondents recognised data analytics, in and of themselves, as a top area for investment. Meanwhile 30% flagged IoT, and 14% the Metaverse.
There’s a reason for the emphasis on strong data. It not only supports the integration and use of AI-fuelled capabilities, but it is the driving force behind numerous functions of the bank itself. Of those surveyed, 37% aimed to use data to improve customer service. 34% to strengthen security, and 33% to personalise products and improve the customer experience.
As well as attracting and retaining consumers, business leaders can benefit from their access to strong data by attracting and retaining talent. With 39% of failed digital transformations viewing lack of employee buy-in as a factor, financial institutions are encouraged to educate workers on their technology integration plans, and ensure solutions are user-friendly. Fortunately, looking ahead, 20% of banks surveyed seek to use data to improve the workplace.
A bank’s priority – looking ahead
More than ever, banks are reliant on data to keep operations running smoothly. From providing customers with a personalised experience to improving the workplace in the competition for talent, there are a multitude of reasons to ensure the foundations of your tech stack are strong.
Doing so makes integration of new technology a smoother experience for all. To this end, it’s no shock that 50% of banks are keen to embrace AI, using it to benefit customers and speed up processes. However, with many hampered by the legacy technology and the ever-looming threat of change fatigue, integration of any technology should be carefully planned, customer focused and data led.
Lucian Daia, CTO at Zitec, on the rise of embedded finance driving customer loyalty across financial services
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The frenzy of Christmas and Halloween marketing is already in full swing, with date reveals of Christmas market returns to pumpkin patch locations. Retailers are gearing up to execute their strategies as the Golden Quarter approaches. This year, however, retailers have another string to their bow, another key message to snag a customer: ‘Buy Now, Pay Later’ (BNPL).
Business is booming in the BNPL game, with the market quadrupling in size since 2020. It is expected to hit a record level of £30bn in 2024. The payment option is fast becoming a staple in the digital wallets of millions for the major retail milestones of the year.
Halloween is the first major retail moment in the run-up to the festive season as Britain settles back into its winter routine. However, the rise of BNPL points to consumer behaviour that’s fast evolving and anything but predictable.
Retailers sink or swim based on the customer experience they deliver. From the rise of omnichannel strategies to speedy same-day deliveries, click and collect options, and attention-grabbing immersive experiences… There’s no shortage of initiatives to drum up customer loyalty. Now, payment solutions are part of the equation. Embedded Finance is front and centre of this change, integrating financial services (like loans, insurance, debit cards etc.) into businesses that don’t usually handle finance.
Application Programming Interfaces (APIs) offer a “Plug and Play” type functionality. Retailers can offer seamless payment solutions like BNPL or digital wallets directly on their systems. This integration keeps shoppers on the site and reduces the tiresome friction of third-party pop-up systems. Moreover, it offers features like zero-interest point-of-sale loans or app-based rewards. Of course, it allows them to check-out as easily and as quickly as possible too.
Bye-bye Velcro
Bye-bye Velcro, hello snazzy digital wallet that holds payment cards and bank account details all in one place. Digital wallets have become essential components of modern payments and offer a convenient and less risky way for shoppers to buy their items.
Gone are the days of searching for physical cards under stashes of files or keying in repetitive digits on a keyboard. Digital wallets also offer a reduced risk of fraud because of advanced encryption and tokenisation technologies. Beyond security, digital wallets provide retailers with valuable consumer insights.
For instance, if a customer buys a Halloween costume and decorations, retailers can use this data to target them with personalised offers. Such as a discount on themed candy bowls or matching spooky accessories. This level of personalisation is make or break for retailers today. Customers are setting a higher bar than ever for personalised content, offers and experiences that meet their needs and interests.
Speeding up cash flow with BNPL
Another innovation retailers need to have on their radar is instant payments. Unlike traditional systems that mean transactions can take hours or even days to complete, instant payments ensure funds are transferred within seconds.
For retailers, especially those operating on thin margins or managing high transaction volumes, the speed at which funds are made available can be make or break. The quick availability of cash means retailers can better manage their finances, buy new stock and address operational costs at pace.
Contrary to common belief, Brits don’t love queuing; in fact, they hate it. Faster payment options in-store have been pivotal in giving customers the speedy experience they demand so they can get on with their day. Quick transactions not only improve cash flow and reduce delays but enhance the customer experience. Making it ideal for those who’ve left their shopping too late, or forgotten an item on their list. As a result, customers walk away with the right impression.
Ditch the lines and pay with a tap
Retailers should be equipped with mobile point-of-sale (mPOS) systems that allow customers to make payments through their smartphones or other mobile devices, cutting down on wait times and speeding up the checkout process.
Retailers also stand to benefit from digital receipts, detailed sales reports, and real-time inventory management from having this system in place. This efficient processing not only improves cash flow but also provides valuable data for managing stock levels and customer preferences.
Beyond the Golden-Quarter
As retailers prepare for the Golden Quarter and beyond, understanding and leveraging FinTech payment innovations can seriously pay dividends. By adopting technologies such as embedded finance, digital wallets, instant payments, and mobile payments, retailers can improve their operational efficiency, enhance customer experiences, and position themselves for future growth in a digital-first world. Indeed, in recent years marked by economic shocks, huge tech advancements – especially with AI – and increasingly unpredictable consumer behaviour, it is crucial for retailers to stay ahead of payment options.
Providing consumers with flexibility, choices, and ultimately, ways to manage their outgoings and spread the cost will be key. Retailers will need to take a view on which innovations align best with the changing expectations of their customers and who they partner with to help them remain competitive.
DBS Token Services, marks new milestone in financial services with blockchain
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DBS has announced the introduction of DBS Token Services. The new suite of banking services integrates tokenisation and smart contract-enabled capabilities with award-winning banking services. It aims to unlock new transaction banking capabilities and operating efficiencies for its institutional clients with blockchain.
DBS Token Services via Blockchain
DBS Token Services unlocks instant, 24/7 real-time settlement of payments. It integrates the bank’s Ethereum Virtual Machine-compatible permissioned blockchain. This is the core payment engine and multiple industry payment infrastructure for DBS. In addition, smart contracts enable programmability for institutions to govern the use of funds according to predefined conditions. Enhancing security and transparency. Using a permissioned blockchain provides DBS full control over these services. It enables the bank to harness the benefits of blockchain technology while adhering to compliance standards.
The project is the culmination of several years of industry collaborations and experimentation in digital money innovations. The suite of solutions includes Treasury Tokens, Conditional Payments, and Programmable Rewards. It exemplifies how established financial institutions can leverage blockchain technology and smart contracts to deliver new client experiences.
Lim Soon Chong, Group Head of Global Transaction Services, DBS Bank
“To capture the massive shift of human and corporate activity to on-demand digital services, companies and public sector entities are reimagining their operating models and customer engagement strategies. A new generation of ‘always-on’ banking services is essential to support this shift and transformation.
“By leveraging tokenisation and smart contract capabilities, DBS Token Services enables companies and public sector entities. They can optimise liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement. It marks a significant step forward in transaction banking. It demonstrates how established financial institutions can leverage blockchain technology to deliver new ground-breaking features and experiences.”
DBS: Shaping the future of finance with Blockchain
Since 2016, DBS has been a driving force in several industry initiatives led by the Monetary Authority of Singapore. It has been exploring the potential of blockchain technology in enhancing Singapore’s financial landscape. Key initiatives include Project Ubin, Project Orchidand Project Guardian.
DBS Token Services continues to explore broader applications of blockchain enabled solutions. These include the tokenisation of securities and digitalisation of trade finance. These innovations reflect DBS’ ongoing commitment to building a more robust and innovative banking landscape..
Amelia Lowe, Vice President of Operations at SquareTrade, on the potential for AI to revolutionise InsurTech
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We have all witnessed the growth of AI in the past year. It’s quickly becoming an innate part of how we work. In the UK alone, the number of AI registered companies has increased by over 600% in under a decade. While the size of the AI market is expected to grow to over £800 billion by 2035. AI holds the power to radically reshape the way we live, learn, and conduct business. It can unlock possibilities we once only imagined. In the past two years, we’ve witnessed this transformational potential come to life. It’s driving innovation and redefining industries at an unprecedented pace.
We stand on the brink of a new era. AI is poised to become an integral force that not only enhances our daily lives but also paves the way for a more effective way of doing business and connecting with customers. AI holds the key to supercharging the customer experience, by creating seamless, intelligent customer journeys. So how do we do it?
In today’s highly competitive world, great customer service is essential. Customers do not want to feel like just another number. They want their individual needs to be recognised and addressed with personalised responses.
At SquareTrade, we aim to engage with our customers in ways that feel authentic and personal, even when they are engaging with AI. Our objective is to deliver a level of personalised interaction that was once thought of as unattainable with automated systems. Furthermore, ensuring every customer feels appreciated and understood in each exchange.
Enhancing customer experiences with AI for seamless, intelligent journeys
At the core of any customer relationship is the confidence that issues will be resolved quickly and effectively. Your team, and the people behind your company, play a pivotal role in delivering that trust across all customer touchpoints.
When integrating AI into a business, it is essential to align the technology with the company’s core objectives. For us, the focus has been on driving innovation and streamlining processes while ensuring customer service remains uncompromised. Our goal is to ensure, no matter how AI is implemented, the customer experience feels personal and authentic. Even with automated systems, we want to provide a level of personalised interaction that was once unimaginable. We see AI as an extension of our team. In light of that we apply the same values and principles to those we apply to our team, which focus on trust, transparency and respect.
Have you met Sally?
We now live in a world where AI tools and customer experience must work in harmony. According to Statista, 73% of consumers believe AI can enhance customer experience, with 80% reporting positive interactions with AI so far. Clearly, AI has reached a point where customers can appreciate its benefits during their times of need. It can seamlessly recognise and addresses issues productively.
When businesses explore integrating AI solutions, it’s crucial to align them with their unique standards, customer service approach, and company culture. No two AI solutions are alike. For us, it was vital that any AI implementation seamlessly complemented our existing operations. A key example of how we’ve achieved this is through the introduction of Sally, our AI chatbot. Sally provides one of the quickest and most efficient ways for customers to engage with us when visiting our website. This enhances the user experience while staying true to our service values.
We are already witnessing the benefits of introducing Sally. She consistently achieves high success rates in resolving customer incidents autonomously. By deploying her in a strategic and targeted manner, we can reserve human interactions for more complex queries and claims.
AI Training for Operational Excellence
AI’s potential goes beyond customer interactions. It is increasingly being leveraged for training and education within organisations. In an industry like insurance, where no two claims are the same, InsurTech companies need training systems that prepare team members to adapt to a wide variety of scenarios.
Given that individuals learn in diverse ways and at varying speeds, the ability to create personalised learning experiences is immensely valuable. We see AI training tools as the equivalent of providing each employee with a personal tutor. Moreover, one that can adapt to their unique strengths, challenges, and learning styles.
And the learning doesn’t stop when the training does. AI-powered platforms can now continuously assess performance in real-time. If an employee is struggling in a particular area, the AI can automatically adjust the learning program to address those needs. This ensures ongoing growth and development tailored to each individual.
Fraud Detection
AI is poised to revolutionise fraud detection and prevention. It is becoming an invaluable asset to the teams that monitor for suspicious activity. In the insurance industry, AI can be deployed at multiple levels to enhance fraud detection. For example, through intelligent automation that swiftly analyses large datasets and flags potentially fraudulent claims for further investigation. This can save valuable time and resources.
AI can also enable the creation of predictive models that forecast fraud based on historical data and emerging trends. This helps insurance players to stay one step ahead of evolving threats. These models improve risk assessment accuracy by reducing false positives and allowing us to focus more effectively on genuine risks.
Looking ahead, the potential for AI in fraud detection is immense. AI is breaking new ground in areas where traditional rule-based systems fall short. Its ability to process vast amounts of data in real time, identify patterns and anomalies that would be nearly impossible to detect manually, makes it a game-changer in tackling complex problems.
Embracing AI Advancements
AI has the potential to revolutionise countless industries, but its impact is particularly profound in InsurTech. Given the critical role insurance plays in people’s lives, the opportunities for innovation and improvement are vast.
As an industry, it’s essential we recognise AI’s ability to transform customer experiences. As early adopters, we have witnessed its potential firsthand. We will continue to leverage these advancements to enhance personalised and automated processes. We can bridge language barriers, and create new methods of interaction.
However, our focus must always be on finding the right balance. Identifying where these solutions can deliver the greatest impact in serving customer needs quickly and effectively. Moreover, also ensuring that we retain the opportunity for human connection whenever it is needed. As well as ensuring compliance and security are a core part of how we think about implementing solutions to enhance business operations.
WaveBL Completes a new groundbreaking network connectivity Proof of Value (POV) with Swift, the participation of five global banks, and leading ocean carrier eBL Issuer MSC
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WaveBL, the leading blockchain based electronic Bill of Lading (eBL) platform, has completed a groundbreaking Proof of Value (POV). It worked with Swift and the participation of five global banks. Lloyds, Emirates NBD Bank, Federal Bank Limited, and other banks. Furthermore, MSC Mediterranean Shipping Company (MSC), a leading ocean carrier acted as an eBL issuer on WaveBL.
The POV successfully demonstrated the transfer of structured electronic document presentations (including eBLs) originated on the Platform. They were sent to and between Swift members, and back to the Platform, all as part of a Letter of Credit (LC) transaction. The process was executed utilising a series of Swift FIN messages and FileAct transfers from WaveBL to the different banks. The process maintained possession and title management of the electronic trade documents on WaveBL’s ledger of issuance.
Describing the Flow of the POV with WaveBL
The POV involved two eBLs – one straight and one negotiable – both issued by MSC on the WaveBL platform. The eBLs were first sent to an exporter on the WaveBL platform. Here, commercial documents like a packing list, invoice, and certificate of origin were added. These were then sent to the advising bank by the platform over the secure and resilient Swift network, using an MT message and a FileAct document transfer. In turn, the advising bank and the issuing bank exchanged the presentation between them while WaveBL’s ledger maintained the tracking of possession and title of the contained eBLs.
Ultimately, the issuing bank released the documents to the LC applicant, who is the importer, including the endorsement of the negotiable eBL from the issuing bank to the order of the importer on the Platform. All of which was instructed to the platform through a Swift MT message. This streamlined process allows for payments to be received within hours, rather than days. This is often the case with transactions that involve the physical transfer of documents. Similarly, with the eBLs surrendered back to MSC on the platform, the importer was able to collect the goods at the port of destination without delay.
Strengthening the supply chain-trade finance connectivity: The WaveBL Swift gateway
This groundbreaking POV underscores WaveBL’s dedication to making its network fully integrated with the financial system. This allows customers to seamlessly interact with Swift members and among participants themselves. For Swift members, electronic trade documents could soon be exchanged via WaveBL using their existing Swift infrastructure. And without requiring the installation or use of any specialised software or service.
WaveBL anticipates that the concept led through this POV will further its mission of creating seamless connectivity between the supply chain and financial markets. It will drive the shift towards 100% adoption of eBLs, as outlined in the FIT Alliance Declaration of September 2023. WaveBL is also looking forward to becoming the first electronic trade document provider to achieve full connectivity with the entire Swift community. This allows all banks a simple, standardised way to receive and send electronic bank presentations originated on the platform.
Innovative approach by leading banks
The participating banks have all previously demonstrated exceptional innovation by using WaveBL as their entry point to the eBL market. They gained experience by exchanging electronic trade document presentations in live commercial transactions. As part of the POV, WaveBL, Swift and the banks established a joint working group. This was aimed at analysing the methodologies and structure of the Swift MT messages and the electronic presentations proven during the POV. Moreover, their involvement highlights a commitment to advancing trade finance through digitisation and cutting-edge technologies for document exchange. WaveBL is eager to continue working with the joint working group as its expected integration with the Swift network unfolds.
Boaz Lessem, Chief of Legal Regulation and Partnerships, WaveBL:
“As the eBL market continues to grow, this POV solidifies our vision of seamless connectivity between WaveBL and Swift, providing a new, standardised solution for banks that prefer not to use the platform’s interface directly. By leveraging Swift’s trusted infrastructure, banks will now be able to exchange electronic trade documents with ease. Enabling greater flexibility and efficiency in trade finance. I believe this connectivity will lead the way to an increased value proposition for the electronic transformation to eBLs. I thank the Swift team for its ongoing leadership and support as part of this POV, driving forward this important initiative in trade finance digitisation.”
Combining advanced technology with a people-led focus is the name of the game for Bravo Consulting Group. Bravo was founded…
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Combining advanced technology with a people-led focus is the name of the game for Bravo Consulting Group. Bravo was founded in 2007 by President and CEO Gino Degregori. He had his sights squarely set on leveraging Microsoft technologies to deliver cloud services, application modernization, and cybersecurity compliance. Bravo’s aim is to simplify how organisations create, share, and secure their intelligent information. In nearly 17 years of its existence, the business has grown into a premier Microsoft solutions provider serving the federal government, the Department of Defense, the Intelligence Community, and multiple Fortune 500 organisations.
Human-centric leadership and core values
Degregori began his career in software engineering and entrepreneurship. However, he quickly realised that his true calling was beyond just developing software and implementing Microsoft technologies. “I saw an opportunity to build an amazing organisation that provides real value to our customers through our people and innovative solutions,” Degregori explains. “While the cloud didn’t exist in 2007, development, automation, and security were already crucial.”
Degregori founded Bravo on core values that remain the cornerstone of the company today. “Our vision is to attract and create kind leaders who make an impact on our customers, partners, and communities,” he explains. “We lead with empathy, embracing kind leadership. This means prioritising the growth and wellbeing of our team members and clients. We view every interaction from a win-win perspective with a strong sense of accountability.
“It’s not just about implementing technology in your organisation; it’s about truly advancing the mission. Collaborating with great people enables us to deliver outstanding results,” he emphasises. Degregori also hosts The Kind Leader Podcast where he discusses empathetic leadership with industry leaders, embodying the values Bravo champions.
By fostering a culture of empathy and innovation, Bravohas established itself as a leader in cloud services, application modernization, and cybersecurity. Degregori’s commitment to building a people-centric organisation ensures that Bravo not only meets but exceeds the expectations of its clients, driving meaningful and impactful results.
Strategic partnership with AvePoint
Bravo’s commitment to collaborating with exceptional partners has been the cornerstone of its longstanding relationship with AvePoint. For 15 out of its nearly 17 years of existence, Bravo has partnered with AvePoint—a testament to the enduring strength and value of this collaboration. When Bravo first started, the Microsoft ecosystem was rapidly evolving, with many businesses transitioning away from legacy systems. AvePoint’s advanced SharePoint migration and administration tools played a pivotal role in this transition, enabling Bravo to assist over 100,000 users across various verticals in successfully migrating and managing their content and data.
“Our partnership with AvePoint allowed us not only to migrate vast amounts of content and data efficiently but also to reduce costs, which we passed on to our customers,” says Degregori. “It was a phenomenal opportunity to leverage AvePoint’s tools for seamless content and data migration. We recognized early on that AvePoint was poised for significant success, and from then on, our collaboration deepened, enabling us to develop even better solutions.”
This partnership is a key reason customers choose Bravo. By integrating Bravo’s expertise in the Microsoft ecosystem with AvePoint’s suite of tools, Bravo delivers a unique value proposition centred on data management, compliance, and AI-driven solutions. Customers benefit from a holistic approach that not only prepares them for new technologies but also ensures regulatory compliance, cost efficiency, and superior results.
Together, Bravo and AvePoint empower organisations to confidently navigate their digital transformation. Leveraging Microsoft’s advancements in AI and AvePoint’s robust data management tools, they offer cutting-edge solutions that address the evolving needs of modern businesses. This collaboration enables organisations to optimise their data, maintain stringent compliance standards, and harness the power of AI to drive innovation and efficiency.
Expanding horizons through collaboration
For the first decade, Bravo focused exclusively on the federal sector. Recently, Degregori made the strategic decision to expand Bravo’s services into the commercial sphere. “Our strong partnership with AvePoint was instrumental in this successful expansion,” he says. “AvePoint is a global organisation, and through our collaboration, we developed a strategy to penetrate the commercial market. We leveraged our combined services, expertise, and certified professionals at Bravo to build trust and confidence with the AvePoint commercial folks.”
The unique relationship between Bravo and AvePoint has facilitated this long-standing and successful collaboration. Degregori attributes their success to three key factors: communication, clarity, and trust.
“First, strong communication ensures continuous understanding. Second, clarity about our collective goals – focusing not just on our objectives but also on AvePoint’s – allows us to align our efforts effectively. Lastly, trust is paramount. We need to rely on each other through both successful projects and challenging ones. This mutual trust ensures we can support each other through thick and thin,” Degregori explains.
“We are always learning. When things don’t go as planned, we sit down, discuss the lessons learned, and find ways to improve. This continuous learning and mutual support strengthen our partnership and drive our shared success.”
Future growth
The future of Bravo and AvePoint is exceptionally promising as technology evolves at an unprecedented pace. Both organisations are at the forefront, leveraging the Microsoft ecosystem. With Microsoft’s substantial investments in generative AI, their reach is set to expand even further into the Fortune 500 globally.
“This momentum allows us to continuously leverage advanced tools, integrating them to deliver unparalleled value to our customers,” says Degregori. This focus on the human element—the customer—ensures that Bravo remains true to its core values.
“I am immensely grateful for the opportunity to lead an incredible organisation like Bravo and to maintain a long-term partnership with AvePoint. Ultimately, while we discuss technology and solutions, it’s all about people. We’re constantly seeking ways to connect better as partners and employers. This human-centric approach is what drives us to deliver superior solutions.”
This vision and commitment to both technological excellence and human connection make Bravo and AvePoint’s partnership not only resilient but also highly impactful for their clients. Together, they are poised to lead the way in digital transformation, ensuring that organisations are not only equipped with the latest innovations but also supported by a team that values their success.
Gabe Hopkins, Chief Product Officer at Ripjar, on how GenAI can transform compliance
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Generative AI (GenAI) has proven to be a transformational technology for many global industries. Particularly those sectors looking to boost their operational efficiency and drive innovation. Furthermore, GenAI has a range of use cases, and many organisations are using it to create new, creative content on demand – such as imagery, music, text, and video. Others are using the new tools at their disposal to perform tasks and process data. This makes previously tedious activities much more manageable, saving considerable time, effort, and finances in the process.
However, compliance as a sector has traditionally shown hesitancy when it comes to implementing new technologies. Taking longer to implement new tools due to natural caution about perceived risks. As a result, many compliance teams will not be using any AI, let alone GenAI. This hesitancy means these teams are missing out on significant benefits. Especially at a time when other less risk-averse industries are experiencing the upside of implementing this technology across their systems.
To avoid falling behind other diverse industries and competitors, it’s time for compliance teams to seriously consider AI. They need to understand the ways the technology – specifically GenAI – can be utilised in safe and tested ways. And without introducing any unnecessary risk. Doing so will revolutionise their internal processes, save work hours and keep budgets down accordingly.
Understanding and overcoming GenAI barriers
GenAI is a new and rapidly developing technology. Therefore, it’s natural compliance teams may have reservations surrounding how it can be applied safely. Particularly, teams tend to worry about sharing data, which may then be used in its training and become embedded into future models. Moreover, it’s also unlikely most organisations would want to share data across the internet. Strict privacy and security measures would first need to be established.
When thinking about the options for running models securely or locally, teams are likely also worried about the costs of GenAI. Much of the public discussion of the topic has focussed on the immense budget required for preparing the foundation models.
Additionally, model governance teams within organisations will worry about the black box nature of AI models. This puts a focus on the possibility for models to embed biases towards specific groups, which can be difficult to identify.
However, the good news is that there are ways to use GenAI to overcome these concerns. This can be done by choosing the right models which provide the necessary security and privacy. Fine-tuning the models within a strong statistical framework can reduce biases.
In doing so, organisations must find the right resources. Data scientists, or qualified vendors, can support them in that work, which may also be challenging.
Overcoming the challenges of compliance with AI
Despite initial hesitancy, analysts and other compliance professionals are positioned to gain massively by implementing GenAI. For example, teams in regulated industries – like banks, fintechs and large organisations – are often met with massive workloads and resource limits. Depending on which industry, teams may be held responsible for identifying a range of risks. These include sanctioned individuals and entities, adapting to new regulatory obligations and managing huge amounts of data – or all three.
The process of reviewing huge quantities of potential matches can be incredibly repetitive and prone to error. If teams make mistakes and miss risks, the potential impact for firms can be significant. Both in terms of financial and reputational consequences.
In addition, false positives – where systems or teams incorrectly flag risks and false negatives – where we miss risks that should be flagged, may come from human error and inaccurate systems. They are hugely exacerbated by challenges such as name matching, risk identification, and quantification.
As a result, organisations within the industry quite often struggle to hire and retain staff. Moreover, this leads to a serious skills shortage amongst compliance professionals. Therefore, despite initial hesitancy, analysts and other compliance professionals stand to gain massively by implementing GenAI without needing to sacrifice accuracy.
Generative AI – welcome support for compliance teams
There are numerous useful ways to implemented GenAI and improve compliance processes. The most obvious is in Suspicious Activity Report (SAR) narrative commentary. Compliance analysts must write a summary of why a specific transaction or set of transactions is deemed suitable in a SAR. Long before the arrival of ChatGPT, forward thinking compliance teams were using technology based on its ancestor technology to semi-automate the writing of narratives. It is a task that newer models excel at, particularly with human oversight.
Producing summarised data can also be useful when tackling tasks such as Politically Exposed Persons (PEP) or Adverse Media screenings. This involves compliance teams performing reviews or research on a client to check for potential negative news and data sources. These screenings allow companies to spot potential risks. It can prevent them from becoming implicated in any negative relationships or reputational damage.
By correctly deploying summary technology, analysts can review match information far more effectively and efficiently. However, like with any technological operation, it is essential to consider which tool is right for which activity. AI is no different. Combining GenAI with other machine learning (ML) and AI techniques can provide a real step change. This means blending both generalised and deductive capabilities from GenAI with highly measurable and comprehensive results available in well-known ML models.
Profiling efficiency with AI
For example, traditional AI can be used to create profiles, differentiating large quantities of organisations and individuals separating out distinct identities. The new approach moves past the historical hit and miss where analysts execute manual searches limiting results by arbitrary numeric limits.
Once these profiles are available, GenAI can help analysts to be even more efficient. The results from the latest innovations already show GenAI-powered virtual analysts can achieve, or even surpass, human accuracy across a range of measures.
Concerns about accuracy will still likely impact the rate of GenAI adoption. However, it is clear that future compliance teams will significantly benefit from these breakthroughs. This will enable significant improvements in speed, effectiveness and the ability to respond to new risks or constraints.
Ripjar is a global company of talented technologists, data scientists and analysts designing products that will change the way criminal activities are detected and prevented. Our founders are experienced technologists & leaders from the heart of the UK security and intelligence community all previously working at the British Government Communications Headquarters (GCHQ). We understand how to build products that scale, work seamlessly with the user and enhance analysis through machine learning and artificial intelligence. We believe that through this augmented analysis we can protect global companies and governments from the ever-present threat of money laundering, fraud, cyber-crime and terrorism.
The AXA Group aims to protect over 20 million customers through inclusive insurance globally by 2026
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AXA Egypt and Post for Investment (PFI), the investment arm of Egypt Post, are establishing the first micro-insurance company in Egypt. This strategic collaboration is made possible by leveraging the new insurance law and aims to revolutionise the insurance landscape in the country.
Financial Inclusion
This initiative is fully aligned with AXA´s conviction that postal networks play a crucial role in global financial inclusion. Over a quarter of the world’s adult population accesses formal financial services through their post office. AXA notably signed a partnership with the Universal Postal Union (UPU) in May 2024. Moreover, this collaboration with UPU includes a research program. It will showcase successful postal insurance models and the establishment of the Postal Insurance Technical Assistance Facility (PITAF). This will promote financial inclusion and risk mitigation among underserved populations. Through this partnership, AXA is pushing the boundaries of insurance to better protect all. Solidifying its dedication to inclusive insurance practices worldwide.
The Egypt Post, who will be the main distribution channel of this JV, is a well-respected organisation. It has a strong nationwide presence, renowned for its last mile distribution capabilities and robust brand credibility. Additionally, with over 4000 branches, kiosks, and mobile trucks across all governorates, Egypt Post is an integral part of the country’s infrastructure. It caters to the population with unparalleled reach.
“We believe in the power of collaboration to create lasting change, and this joint venture is a testament to our commitment to inclusive insurance. Together, we are revolutionising the insurance landscape in Egypt to better protect and empower communities, setting new benchmarks for millions seeking reliable and accessible insurance protection.”
Garance Wattez-Richard
Micro-insurance from AXA
The product categories will include both retail and group offerings. Embedded and voluntary options will cater to diverse needs. The range of products will cover various areas. These include hospital cash, personal accident, term life, payment protection, credit life, livestock, and group protection, ensuring comprehensive coverage for the customers.
The ambitious goal is to reach 12 million customers within the first decade of operation. Therefore, underlining the commitment to making a significant impact on the lives of Egyptians through tailored insurance solutions.
This collaboration between AXA EssentiALL, AXA Egypt and PFI/Egypt Post marks a significant milestone in the local insurance industry. It paves the way for inclusive and impactful micro-insurance offerings that have the potential to transform the socio-economic landscape of Egypt. As the first of its kind, this micro-insurance company is poised to set new benchmarks. Furthermore, it can become a beacon of hope for millions of Egyptians seeking reliable and accessible insurance protection.
SemFi by HSBC will deliver innovative embedded finance solutions for businesses
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HSBC has launched its new jointly owned venture, SemFi by HSBC. It aims to deliver Seamless Embedded Finance solutions to business clients.
The new technology company is a joint venture between HSBC and B2B global trade network Tradeshift. Furthermore, SemFi will embed HSBC payment, trade and financing solutions across a range of e-commerce and marketplace venues, including Tradeshift’s own B2B network.
SemFi will deliver its solutions in the UK to begin with. Furthermore, it will enable SME suppliers on e-commerce venues to access digital invoice financing from HSBC. Via a seamless experience it also aims to offer SMEs greater flexibility and security in their spend management through the bank’s virtual card solutions.
SemFi by HSBC
“Businesses are increasingly looking for seamless financial solutions that are embedded within their e-commerce journeys. So they can access these when and where they need them.
“SemFi by HSBC aims to deliver such embedded capabilities to help businesses grow. It will seek to bring the best of both worlds to our business customers and e-commerce partners. A startup technology mindset coupled with the global scale and expertise, of an international bank.”
Vinay Mendonca, Chief Executive Officer
The new venture is led by senior leadership drawn from HSBC. This includes Vinay Mendonca as CEO and Shehan Silva as Chief Operating Officer (COO). Additionally, Jo Miyake, Interim CEO of Global Commercial Banking, joins the SemFi board.
HSBC has been steadily building its capabilities and presence in embedded finance. It is driven by business customers seeking connected financial journeys to e-commerce venues.
HSBC supports around 1.3 million businesses worldwide. Moreover, it is the world’s largest trade bank, facilitating over $800 billion of trade flows annually.
Tradeshift supports over $260 billion of annual gross merchandise value for a million business users on its platform.
SemFi is intended to be a technology company and will not operate as a banking entity. Clients will be onboarded by the bank and the bank’s balance sheet will be leveraged for financing.
Our cover story reveals the digital transformation journey at global insurance services company Innovation Group using InsurTech advances to disrupt…
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Our cover story reveals the digital transformation journey at global insurance services company Innovation Group using InsurTech advances to disrupt the industry.
Welcome to the latest issue of Interface magazine!
We’re excited to be publishing the biggest ever issue of Interface this month. It’s packed with insights from the cutting edge of digital technologies across a diverse range of sectors; from InsurTech to Travel via eCommerce, Banking, Manufacturing and Public Services.
Innovation Group: Enabling the Future of Insurance
“What we’ve achieved at Innovation Group is truly disruptive,” reflects Group Chief Technology Officer James Coggin.
“Our acquisition by one of the world’s largest insurance companies validated the strategy we pursued with our Gateway platform. We put the platform at the heart of an ecosystem of insurers, service providers and their customers. It has proved to be a powerful approach.”
Leeds Building Society: Tech Transformation Driven by Data
Carole Roberts, Director of Data at Leeds Building Society, on a digital transformation program driven by the mutual power of people and culture.
“We’ve made the decision to move to a composable architecture. It’s going to give us much more flexibility in the future to be able to swap in and out components rather than one big monolithic environment.”
AvePoint: Securing the Digital Future
Kevin Briggs, Vice President of Public Sector at AvePoint, discusses pioneering data security and management transformation in the global public sector.
“We ensure the security, accessibility and integrity of data for customers with missions from everything from finance and health services, through to national security, innovation, and science.”
Saudia: Taking off on a Digital Journey
Abdulgader Attiah, Chief Data & Technology Officer at Saudia, on the digital transformation program towards becoming an ‘offer and order’ airline.
“By the end of this year we will have established the maturity level for data technology, and our digital and back-office transformations. In 2025 we will begin implementing our retailing concept and the AI features that will drive it. The building blocks will be in place for next year’s initiatives where hyper personalisation for retailing is a must.”
Publicis Sapient: Global Banking Benchmark Study
Dave Murphy, Financial Services Lead, International – gives Interface the lowdown on the third annual Global Banking Benchmark Study and the key findings Publicis Sapient revealed around core modernisation, GenAI, data analytics transformation and payments.
“AI, machine learning and GenAI are both the focus and the fuel of banks’ digital transformation efforts. The biggest question for executives isn’t about the potential of these technologies. It’s how best to move from experimenting with use cases in pockets of the business to implementing at scale across the enterprise. The right data is key. It’s what powers the models.”
Habi: Unleashing liquidity in the LATAM market
Employees at Habi discuss its mission to help customers buy and sell their homes more effectively.
“At Habi, you can talk with the AI agent and you can provide information that streamlines the whole process.”
USDA FPAC: Achieving customer experience balance
Abena Apau and Kimberly Iczkowski, from USDA FPAC on the incredible work the organisation is doing to support farmers across America.
“We’ve created a new structure for ourselves, based on the fact that the digital experience is not the be all and end all, and we have to balance it with the human touch.”
Adecco Group: Digital Transformation driven by business outcomes
Geert Halsberghe, Head of IT, Benelux, at Adecco Group, talks transformation management, cultural consensus, and ensuring digital transformation starts (and stays) focused on solving business problems.
“It’s very crucial to make sure that we aren’t spending money on IT transformation for the sake of IT transformation.”
La Vie en Rose: Outcome-focused Digital Transformation
Éric Champagne, CIO of La Vie en Rose, on ensuring digital transformations are defined by communication, vision, and cultural buy-in.
“I don’t chase after the latest technology just because it seems cool… My focus is on aligning technology with the business strategy and real needs.”
Breitling: Digital Transformation and the omnichannel experience
Rajesh Shanmugasundaram, CTO at Breitling, talks changing customer expectations, data, AI, and digitally transforming to deliver the omnichannel experience.
“The CRM, the marketing, our e-commerce channels — they’ve all matured so much… we’re meeting our customers wherever they are or want to be.”
Sejal Mehta and Andrew Rodgers from Odgers Berndtson’s Global FinTech Centre of Excellence and Randy Bean, a Senior Advisor to Odgers Berndtson and industry author, explore the dynamics shaping leadership in the UK fintech sector
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The UK FinTech sector is undergoing a significant transformation, marked by maturation, consolidation, and a more selective investment landscape. Funding is increasingly funnelled towards profit-generating scale-ups, and away from newer entrants.
At the same time, the sector is shaped by a multi-generational workforce with varied perspectives. Meanwhile rapid advancements in AI foster apprehension and excitement. These converging factors make FinTech one of the most dynamic and competitive spaces to work in today. This presents both challenges and opportunities for its leaders.
From our perspective as global FinTech executive search and leadership advisors at Odgers Berndtson these shifts are reshaping the demands placed on leadership. They are also influencing what it takes to lead effectively in this fast-changing sector. Here, we explore the leadership trends that are emerging as a result.
Ethical FinTech leadership
Venture capital funding is now more selective and private equity investors are increasingly targeting fintechs with solid exposure. This is creating a difficult environment for new start-ups. Those attracting funding are typically cash-positive scale-ups.
Amidst these challenges, more FinTech firms are opting to list on the NASDAQ rather than the London Stock Exchange, as the UK navigates more stringent regulation. The need for payments licences, extensive reporting, and compliance demands weigh heavily on FinTech leaders.
In this landscape, we’re seeing leaders with experience in regulated financial services bring a valuable skillset. The ability to operate within defined regulatory frameworks while generating growth. FinTech boards are looking for leaders with high authenticity and who can make ethical decisions. And while balancing ambition and growth with the realities of working in a highly regulated space.
Founder replacements
We are in the midst of the FinTech sector’s maturation. Start-ups are transitioning into scale-ups, requiring different leadership competencies. For many, this requires the founder to step down or step into a board role and appoint a CEO who can take the business through its next stage of growth.
This requires leaders who are commercially driven, capable of shaping market strategies, and adept at understanding customer needs and product-market fit. Navigating risk and regulation becomes crucial, while the founder’s creative, opportunity-led approach typically no longer dominates the new operational and strategic demands.
Boards and investors are looking for CEOs with a broader skillset and deep regulatory expertise. These leaders must also be able to attract and retain the type of talent that can sustain growth and innovation, while maintaining the ‘DNA’ that made the business so attractive in the first place.
A multi-generational workforce
Intergenerational divides are becoming more pronounced for all businesses and noticeably in sectors like FinTech. Here, younger generations with fresh perspectives are working alongside older, more experienced professionals – often from traditional financial services backgrounds.
This diversity in age, experience, and approach can be a powerful asset, but only if integrated effectively. Typically, Gen Z and Millennials prioritise flexibility, technological integration and experimentation. Meanwhile, Boomers bring valuable expertise in regulatory environments and operational effectiveness, but may be more accustomed to traditional structures and leadership styles.
Increasingly, we see FinTech leaders attempt to bridge these divides by emphasising open communication, promoting mentorship opportunities, and encouraging cross-generational collaboration. With less funding and more regulation, FinTech leaders recognise the need to identify and capitalise on the strengths of a multigenerational workforce if they are to succeed.
Leadership team dynamics
As FinTech companies scale, leadership is no longer just about the capabilities of individual leaders but about the dynamics of the entire executive team. Successful scale-ups understand the importance of assembling a leadership team that brings a diverse mix of skills, and generational perspectives to the table.
We are starting to see FinTech companies think about leadership team dynamics as they scale up. Boards are looking for a blend of strategic, operational and ethical considerations. As well as how well team members work together. Do they solve problems cohesively? Are there any unresolved tensions or conflict? Are they aligned and equipped to collectively deliver on the leadership mandate?
Many leadership teams are not optimising their potential due to misalignment of strengths. For example, we recently worked with a FinTech creating an executive team profile to identify the leadership competencies needed to deliver their mandate. This exercise enabled the team to reallocate executive responsibilities for strategic initiatives based on the required strengths, regardless of traditional job roles.
Polarising views on Gen AI
Leading organisations are experiencing a transformational moment due to accelerated interest in AI and Generative AI. 89.6% are increasing their investments in AI, while 64.2% of companies have indicated that AI will be the most transformational technology in a generation. In response, organisations are hiring for the data and AI leadership roles required to prepare their companies for an AI future.
However, this integration of Gen AI has sparked both excitement and nervousness, particularly around issues of data protection and privacy. Generational differences are especially noticeable. Younger professionals are often less concerned about data privacy, while older generations remain cautious about the security implications.
This divergence in attitudes can create tension within the organisation, as leaders grapple with how best to leverage Gen AI while ensuring compliance with stringent data protection regulations. For some FinTechs, AI is seen as a specialised area requiring dedicated focus. Meanwhile, others believe AI represents a fundamental shift in how business can be conducted and AI strategy should be woven into the fabric of every leader’s responsibilities.
This divide in attitudes reflects the broader challenges we see FinTech companies face in incorporating AI. Leaders must now navigate the balance between embracing innovation and safeguarding sensitive information. They must also ensure AI is not seen as a siloed function. It must be an integral part of their commercial and strategic vision. Given the fundamental changes in the sector, the emphasis on leadership capabilities is changing for both the individual and executive team.
Berkley Egenes, Chief Marketing & Growth Officer at Xsolla, on the legislation changing financial services
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The European Union’s Digital Market Act has sent tremors through digital payments. The legislation is designed to stop Big Tech’s monopoly over vital online services, from search engines to messaging apps. But beneath the surface, one of the most fascinating battlegrounds is how the Digital Markets Act will impact the lucrative world of digital payments. A space long dominated by a few influential players. This will affect how industries, including the video game industry, monetise these services.
Big tech’s digital tollbooth
For years, the platform owners have controlled much of the infrastructure around digital payments. Major platforms have tightly controlled access, charging app developers and merchants fees for every transaction processed. Furthermore, they take hefty cuts from each purchase through their ecosystem. The impact of the Digital Markets Act may vary across different platforms. Some companies will need to adjust their models to fit the legislation. Others may push back or delay changes through legal and regulatory channels.
The Digital Markets Act specifically targets a select group of ‘gatekeepers’, defined by their user base, revenue, and platform reach. Not every platform or company will be obligated to follow the Digital Markets Act’s rules. However, companies like Apple and Google, fall under the Digital Markets Act’s direct scope. The legislation now obliges these companies to open their platforms. This will allow smaller players and third-party services to operate without being strangled by eye-watering fees or exclusionary policies.
The impact on monetisation with Digital Payments
The big question is how this will impact the business models of the gatekeepers and the developers who rely on these platforms. For years, the mobile platforms have depended on hefty commission fees. Often as high as 30%, these monetise digital payments within their ecosystems. These fees have been a central sticking point for developers, particularly video game studios, which sometimes generate billions in revenue through in-app purchases and microtransactions.
Free-to-play mobile games specifically rely heavily on players making in-game purchases, from cosmetic skins to virtual currency. Under the current system, a significant chunk of that revenue is siphoned off by platform holders. They collect commissions on every transaction. This has forced game developers to either raise prices or accept slimmer margins while operating within the confines of strict payment policies.
The Digital Markets Act is disrupting this current model. Game developers have been fighting the ability to direct players to alternative payment methods. They may now have the freedom and access to offer alternative ways to market and monetise their game while still having the player experience on the mobile phone. As a result, for the first time, consumers may be able to choose alternative payment processors. This potentially reduces costs for players and developers alike.
For video game developers, particularly indie studios, the Digital Markets Act could represent a long-awaited relief from the large hold of app store economies. Developers can now distribute, market and sell their digital items and bundle packs through their online web shop or mobile SDK. By exploring these alternative options, developers will be retaining more of the profit per transaction. They could invest in better content or offer custom promotions to players – a win for both creators and consumers in the gaming industry across Europe.
Don’t ignore the challenges
The Digital Markets Act ushers in a brave new world of competition and choice for consumers, but it’s not all plain sailing. While the Digital Markets Act is designed to promote competition, the actual implementation of its provisions is still subject to regulatory developments and potential litigation. This means the full impact of the Digital Markets Act could take time to materialise. Moving towards a more open payment system demands a mountain of technical tweaks and a watchful eye from regulators. The real headache will be getting all these different payment systems to talk to each other while keeping security watertight.
Consumers also have to consider how they will adapt to these changes. While there are many benefits, changing habits takes work. The success of the Digital Markets Act will depend on effective communication, education, and transparency to ensure consumers are aware of the new options and their benefits.
A new era for Digital Payments?
While the Digital Markets Act promises greater choice and a more level playing field, the road ahead will be anything but smooth. While the Digital Markets Act’s potential to break down monopolistic practices is significant, its effects may not be felt immediately. Regulatory processes, litigation, and slow consumer adoption could mean the transition to a more open digital payments landscape occurs gradually over time. Gatekeepers have maintained a firm grip on payment infrastructure for years, charging high fees that have eaten into developers’ profits. But with the Digital Markets Act tearing down some of these walls, game studios may have the flexibility to finally bypass gatekeepers and offer cheaper in-game purchases, subscriptions, and services directly to consumers.
While the Digital Markets Act opens doors for smaller developers and alternative payment options, it also forces companies to rethink their monetisation strategies. This could potentially pass new costs onto consumers in other ways. What is clear is that the digital payments landscape is in flux. How the tech giants, game developers, and consumers adapt to this new reality will define the future of monetisation in the digital economy. The game is far from over, and the real winners have yet to be decided.
FinTech Strategy spoke with Ryan O’Holleran, Head of Sales, Enterprise, EMEA at Airwallex, to learn about the global payments and financial infrastructure provider
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Airwallex, a financial infrastructure provider, offers a range of services. Including multicurrency accounts, payment acceptance card issuing, foreign exchange (FX) payouts, treasury and expense management. In addition to supporting small and medium-sized businesses, the company also provides APIs and a software layer for direct access to enterprise businesses. As well as an enterprise platform product called Scale. Airwallex has found success working across various industries. It works with the likes of Bird (formerly MessageBird) to handle global accounts and backend treasury, and partners with Qantas to offer financial tools for their business partners.
The company also enables faster and more efficient payments through its patchwork network of financial partnerships and licenses. Airwallex has experienced significant growth even during economic downturns. As of August this year, Airwallex globally processed transactions worth more than $100 billion annually and saw a 73 percent year-on-year increase. It is now focused on embedded finance solutions and global expansion.
At Money20/20 Europe, FinTech Strategy spoke with Airwallex’s Head of Sales, Enterprise, EMEA, Ryan O’Holleran, to find out more…
Tell us about the genesis of Airwallex?
“Our co-founder, Jack Zhang, started a coffee company in Melbourne, Australia, which is still around today, with a few friends from university. And while they were building out this coffee shop, they were buying beans from abroad, along with supplies and packaging. They found how hard it was to actually pay for services, send funds abroad and deal with multiple currencies. So, they saw an opportunity to help streamline the financial infrastructure for small businesses. That’s when Jack and his co-founders put Airwallex together and built out an initial SME’s use case to allow multicurrency accounts and FX payouts. Since then, the business has really expanded…
Today, Airwallex provides a set of APIs – we’re really providing financial infrastructure to move money globally. On those APIs, we also have a layer of software that we can offer direct access to enterprise businesses. The third part of this, which is kind of the new product over the last three years, is our enterprise platform product called Scale. Scale allows you to embed those financial services into a product as well as a platform or marketplace. So, you kind of think about it as a direct treasury product, APIs and a platform product.”
Tell us about your role at Airwallex?
“I’m originally from San Francisco, grew up in the Bay area, started in tech, did a couple of startups, and I actually got into payments via Stripe. I joined Stripe back when there were about 200 employees in San Francisco. Spent some time in Chicago and then moved to the UK initially with Stripe. I was there for about five and a half years, as we went from 200 staff to 6,000. At that point, I wanted to get back to something a little bit different. To help more cross-functioning with product and help scale businesses. The opportunity with Airwallex came along where I saw the company addressing many things my customers at Stripe were asking for.
So, the FX piece, mass payouts, treasury, all complimented what Stripe is doing with acquiring. Since I joined the team three years ago, we’ve been scaling across EMEA. We now have offices in London, Amsterdam, Vilnius and just last year launched our office in Tel Aviv to cover Israel. And we have teams in the Americas and APAC where Airwallex was founded.”
What are some of the key challenges financial institutions are facing that you can help them with? What problems are companies asking you to solve? In doing so, what are the challenges for Airwallex?
“We work in different areas. This is where I think we have differentiated the business and also where I see the industry moving. If you look back over the last five, 10 years, there was this approach where you had Stripe and all the major players coming in and saying, we can do things and we can do it really well and you only need to use us, you don’t need to use a patchwork of providers. I think that is starting to shift. You see this with orchestration layers like Primer or Gravy, allowing people to be agnostic on PSPs. And then you’re seeing people think about redundancy. So, the heads of payments we’re talking to this week are looking at two or three providers because they need redundancy or want to use the best provider in each region. They don’t want to be siloed.
Airwallex can be used in a segmented approach. So, if you just need us for payouts, you can do that. If you just need us for FX, you can do that. If you just need us for acquiring, you can do that. Or we could do that globally and you can adjust as you see fit. So, the flexibility of Airwallex I think is one of our superpowers.”
Tell us about some of the successful partnerships Airwallex has been involved in…
“The interesting thing about Airwallex is that since we’re providing financial infrastructure, there’s a huge variety of customers we work with. One of the local ones is Bird (a cloud communications platform that connects enterprises to their global customers). Using our software product they are creating global accounts, handling backend treasury, payroll, suppliers and more. We’ve also worked with Qantas to build out an SMB solution embedding all of the Airwallex financial services and they call it Qantas Business Money.
Elsewhere, Brex in the US were looking for a provider to help with their payout rails. One of the things Airwallex has done is rebuilt the Swift network via local rails. So, we have a patchwork network of financial partnerships and licences where if you are located, let’s say in the US, but you want to pay somebody out in the UK, you get access to faster payment rails having never set foot in the UK or separate rails via Europe having never set foot in the EU. So, you get this mass payoff solution of local rails, which is faster, cheaper, and more efficient than using something like Swift.”
What trends are you seeing across the FinTech landscape? What opportunities do you see for Airwallex?
“I think where we’re seeing a lot of opportunities, in EMEA specifically, in B2B, vertical, SaaS, travel and marketplaces, is this embedded finance solution. It was kind of a buzzword a few years ago and now we’re actually starting to see it develop. I view it as actually embedding all of these financial services – whether it be a wallet, issued cards, or local multi-currency accounts – and being able to monetize that. So, we’re seeing this with a lot of our customers actually wanting to white label our products, embed that and bring payments on platform.”
And what’s next for Airwallex? What future launches and initiatives are you particularly excited about?
“The growth of Airwallex, specifically on a global scale, over the last few years is one thing I’m very proud of because it’s happened during one of the worst economic downturns we’ve experienced. FinTech was almost retracting in terms of budgets and investments. You’re starting to see the tide turn, but we were able to grow over 100 percent year on year, through some of the toughest times for business. And now we’re really starting to see that pick up because the businesses, who actually decided this is going to be a building year for us now, they’re going live, they’re accelerating, they’re growing.
And so we’re seeing the ROI of that investment. It’s a testament to the global financial infrastructure we’ve built. Meanwhile, Airwallex became cash flow positive in 2023. It now processes more than $100 billion in annualised transaction volume. The company now employs over 1,500 people worldwide working across 23 international offices.”
Why Money20/20? What is it about this particular event that makes it the perfect place to showcase what you do? How has the response been to Airwallex?
“The great thing about Money20/20, here in Europe, and in Asia and the US, is the good division between buyers and sellers. So, you have all these service providers like Airwallex, Amex, etc… And then you have the Heads of Payments from companies like Booking.com, Vinted and SumUp who are coming here with their teams to meet with providers. If you think about that from a sales perspective, those meetings are very hard to get outside of this environment. But over a week you get 15 different meetings each day that would normally take months to arrange. So, the ROI from this week is really powerful just from being able to have these conversations. Three years ago, we first came to suss out the event and as we’ve grown the response has grown. People are being proactive and keen to engage with us which is exciting to see.”
Finch Capital report shows UK FinTech sector dominant across Europe
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The latest annual State of European Fintech report by FinTech growth capital firm Finch Capital has been published. It shows the UK dominating Europe with 65% of deals in H1 2024. The UK is maintaining its dominance amid declining funding across the continent.
Highlights include:
Funding in UK FinTech increased 3% year-over-year to £2.3bn, highlighted by Monzo’s £500m deal.
UK sectors such as insurance set to gain from AI adoption, with 80% of actuaries using it for improved risk analysis.
FinTech sector beginning to see jobs market recover in Europe, up 10% YoY.
“The next wave of fintechs is shifting from unicorns to ‘half-a-corns,’ with £500m valuations becoming the new benchmark” Aman Ghei, Partner at Finch Capital
The UK has increased its dominant role in Europe’s FinTech sector. It now accounts for two thirds of the total volume of deals reached across the continent in the first half of this year. According to a new annual report analysing the sector, with investment and M&A anticipated to grow this year and into 2025.
The annual State of European Fintech 2024 report found the UK is strengthening its position at the forefront of the European FinTech sector, despite an overall decline in funding across the continent.
The report highlights the ongoing challenges faced by the sector. It notes that higher interest rates, a focus on cost efficiency and increased scrutiny on the sustainability of business models have driven the UK to account for around 65% of fintech deals in Europe.
Funding in the UK FinTech sector rose 3% YoY to £2.2bn compared with £1.9bn in H1 of last year. The largest deal done in Europe in H1 was UK’s Monzo, which raised £500m in equity.
The European FinTech Picture
Overall, the 9th edition of the annual report, authored and compiled by leading fintech growth capital firm Finch Capital, found that although it remains a challenging environment for European FinTechs, there are clear signs of brighter prospects ahead.
While the UK leads the way, the Netherlands showed resilience, with investment volumes holding steady. Meanwhile, Ireland, Germany, and France all saw major government-backed initiatives aimed at fostering growth through 2025. Signalling strong long-term commitment to the local technology ecosystems.
Despite a notable contraction in funding across Europe, some key sub-sectors helped by higher interest levels, such as challenger banks like Revolut and Monzo, are beginning to show profitable growth.
Higher Rates and Boosted Profits
The report revealed that total capital invested in European fintechs in the first half of 2024 fell by 25% YoY, from £3.2 billion in H1 2023 to £2.4 billion in H1 2024.
However, profitability in sub-sectors like banking is driving larger funding rounds. The top challenger banks are generating close to £600m in profit in 2024 compared to a £125m loss in 2023.
As these banks emerge as success stories, the UK has become a hub for profitable growth, while other European nations work to adapt, the report found.
Mid-Market Fintech M&A Thrives
The report also highlighted the increasing activity in the mid-market M&A space across Europe. Particularly in the UK, which is benefiting from consolidation in the sector.
Funding rounds for fintech unicorns have slowed, the findings show, with investors prioritising companies with solid financial fundamentals and avoiding overly ambitious valuations based on hyper growth and unproven profitability.
European exits under £500 million now account for 32% of global M&A activity, although the market remains 2-3x smaller than the US for larger deals, according to the report.
AI Creating Efficiency
The report also found that, as a leader in fintech innovation, the UK is expected to benefit significantly from the adoption of AI technologies in the coming years, particularly in the insurance sector.
According to research, 4 out of 5 actuaries are now using AI to improve risk analysis and pricing models and 65% of executives say they will invest more than $10 million in AI in the next 3 years, making the industry more efficient.
Commenting on the findings, Aman Ghei, Partner at Finch Capital, said:
“The challenges that fintech faced in 2023 were necessary for the sector to mature and become more sustainable. While funding may be down overall, and unicorn chasing has slowed, there is plenty of opportunity for companies that are capital efficient and have a clear path to profit. With AI transforming the industry and significant dry powder still available, the next 12-18 months will mark a turning point for fintech in Europe. The next wave of fintech success stories will likely be built on sound financials rather than rapid revenue growth alone.”
Hugo Farinha, Co-founder and CTO at Virtuoso QA on why AI is driving organisational change across financial services
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We’ve seen an enormous amount of discussion concerning all aspects of AI since the emergence of Chat GPT made it headline news. However, most articles and conversations focusing on its business impact seem to wilfully ignore the ‘elephant in the room’. Namely, the inevitable organisational change AI will usher in, especially for employees.
AI technology driving change
To ignore change is folly, and likely to have the exact opposite effect that businesses and AI technology vendors want. We can’t pretend workforces won’t be disrupted by such a seismic technological advance. Certain job roles will become obsolete. Business leaders can’t run the risk of creating a culture of fear and uncertainty among employees who are unlikely to be fooled.
It’s true AI could lead to leaner operations, particularly in insurance and finance companies, with fewer employees needed for routine tasks, but only half the story. Smart businesses will almost certainly reinvest cost savings into new growth areas that require specific human talent. Companies that maintain a strong human element in customer service and personalised offerings will differentiate themselves in a crowded market. The rise in AI-driven, agile companies will create faster market shifts and greater competition.
While AI has the potential for productivity and efficiency gains, and even to do the same with less if needed, I actually don’t predict major job culls in the next few years. AI is particularly good at data processing and data analytics, in insurance for example. So, when more data can be processed and analysed, human intervention can make better informed decisions as a result. In the short to medium term, data analysis and decision making will remain firmly in the human realm. But powered by AI.
The Future for Artificial Intelligence
Meanwhile, the technology is still evolving, and organisations need to build a model that layers over the top of AI – powered by it, rather than replaced by it. Despite the hype, we are still a long way from AI becoming an entity that can lead, implement and operate itself to a purposeful end. But it will increasingly power applications overlaid by strategic, human-led frameworks.
To achieve this, leaders must bring their teams with them on the journey. In the field of testing for example, developers have traditionally written code as part of their role. This is a very time consuming and laborious task. Historically skills gaps have led to delays in progress. But the ability to ‘outsource’ to AI has freed up the time of those developers to focus on the purpose of that code in relation to the product. And, ultimately, the customer. Similarly, leaders in all fields need a broader understanding of AI use cases such as these to make effective strategic decisions. For example, on hiring. Understanding when to bring in more people and when to bring in new technology to complement the skills of your existing team means understanding AI’s strategic implications, technical capabilities and limitations.
An Evolving Job Market
From the perspective of the employee, the job market will continuously evolve alongside AI advancements. It will require ongoing adaptation and learning to stay relevant. Skills such as empathy, communication, and negotiation will remain vital. These are differentiators and difficult for AI to replicate. Understanding AI tools and data analysis will be increasingly important, even for non-technical roles. The ability to adapt to new technologies and continuously learn will be essential. Moreover, as AI becomes more integrated, the need for professionals who understand the ethical implications and regulatory requirements will grow exponentially.
Driving growth and job creation in this new world will require a different mindset to the current received wisdom. From both employees and leaders. In addition to the advances and changes already discussed, AI also has the potential to level the playing field, enabling smaller or newer companies to compete more effectively with, and even seriously threaten, established players. With many traditional barriers to entry such as burdensome start-up costs removed, new business models are likely to emerge. In much the same way as they did in the early days of the internet. Investors will be on the lookout for the next ‘giant killer’.
This will create opportunities for those with the foresight to upskill, as well as for those looking to start their careers. Although those opportunities and the jobs of tomorrow may not yet be completely clear. What is clear, however, is that established businesses cannot afford to be complacent. Change is inevitable and empires can be toppled overnight by technology as disruptive as AI. By embracing it early, leaders in those businesses will have the opportunity to spot and fix the gaps and redundancies in their business models that the technology and its capabilities exposes before the market does so more painfully and publicly.
Our mission is to enable and lead the world’s quality-first revolution. QA tools haven’t kept up with the demands of the testing world. Virtuoso is here to deliver with AI-powered, low-code/no-code test automation to support the modern business.
“Virtuoso technology represents the foundation for software quality in the digital world, and we are proud to be a critical, guiding force in the era of AI.”
AXA UK has launched new online InsurTech tools to enable customers to notify claims digitally for both home and car insurance
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AXA customers can now benefit from a new and improved digital service when making an insurance claim. They can use InsurTech tools that allow them to notify losses online. The improved online service allows customers to notify AXA of their claim online anytime they choose. Not only will it be more convenient, but it will also make for a more efficient claims experience. This allows AXA to offer support and resolve claims in a timely manner.
AXA Online Insurance Tools
Car insurance customers can register claims for road traffic accidents, theft of vehicle, lost or stolen keys, misfuelling, storm or flood damage and malicious damage. Using this service gives customers the option of an end-to-end digital notification experience. It offers a broader choice in the ways they can interact with customer service teams.
Home insurance customers can also use the tools to register claims online for theft, escape of water, flood, storm, accidental damage and accidental loss. This is then picked up by the customer service team to take the claim forward.
Making an impact with customers
The improved service is already making an impact with customers. A recent home insurance claim was reviewed and a supplier was instructed within two hours of being registered online. Motor insurance customers have also been able to book in their vehicle for repairs within minutes of notifying AXA of a claim.
“We know that our customers’ expectations have evolved in recent years. They want the claims process to be quick, clear and simple. That’s why we’ve worked hard to ensure that these enhanced digital claims tools offer customers fast and seamless journeys. At a time when they need it most as well as offering increased flexibility and improving their overall experience.”
Suzy Tiffany, Retail Claims Director at AXA UK
AXA has focused on how it can improve customers’ experiences and interactions by providing digital capabilities where possible across its claims journeys. The claims submission service can also be accessed by brokers, enhancing the claims journey for them and their clients.
However, all the usual channels will still be available for brokers and customers to contact the claims teams. Even if they have notified a claim online, they can still pick up the phone and speak to someone if they prefer.
Philipp Buschmann, co-founder and CEO of AAZZUR on how the customer becomes the investor with Embedded Finance at the heart of the wealth management revolution
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Wealth management has traditionally been a game for the well-off. It often requires large sums of money just to get started. For decades, the idea of “investing” conjured up images of Wall Street brokers managing hefty portfolios for a small group of elite individuals. But, thanks to Embedded Finance, times are changing and the barriers to investing are coming down. The technology is reshaping how people handle their money. Here’s what it can do for you.
Tackling the investment problem
Historically, investing hasn’t been easy. Most brokers require a significant minimum deposit to open an account, often in the thousands. Fees and commissions on trades can add up quickly, and if you don’t have a large amount of capital, these costs can erode your profits. For many, these hurdles were enough to keep them from even thinking about investing. It simply didn’t feel like something for “ordinary” people with average incomes.
Even with the rise of online brokers, the stock market has remained intimidating to a lot of people, many of whom felt like they lacked the knowledge or resources to get involved.
On top of the classical challenges we must also discuss the upcoming wealth transfer. The next generation of users have no interest in sitting with wealth managers; at the same time they don’t have the knowhow to trade or invest.
Imagine being able to not only excite your customers but empower them as well. That’s what embedded finance solutions promise. As companies strive towards more inclusive messaging, adopting embedded finance tools has never been more valuable. One of the great perks is that it doesn’t require a complete overhaul of IT infrastructure, instead, it involves a seamless experience that even junior employees can understand and implement.
Embracing the solution with Embedded Finance
I’ve said it’s easy – but how easy? Embedded finance works by bridging the gap between traditional financial systems and the average consumer. By integrating financial services directly into everyday apps and platforms, it makes it possible for people to start investing without even realising they’re doing it. Monzo is an example of it in action. They used embedded finance solutions to enable customers to invest directly in the bank during its fundraising rounds. They raised millions by allowing users of the app to seamlessly invest and become shareholders, a great example of how “the customer becomes the investor”.
Think about how your business manages its money. You most likely use an app to track accounts and make payments. This is no different to customer budgeting, and it’s a window of opportunity for you to tap into. That app can offer you the ability to automatically invest any leftover money at the end of the month into a diversified portfolio. Customers don’t need to download a separate app or set up an account with a brokerage firm. Everything is integrated into the website they’re shopping on. This is the beauty of embedded finance – it makes financial services a natural part of your daily life.
For younger people just starting out on lower salaries and learning how to invest sensibly, there has never been a greater time to be innovative and branch out into financial services.
The second vector for investment is to centre it around a new social frame. Investment’s can be around supporting your ideals, for the environment, or for technologies sake. This means that there are apps/club/activities that can become another home for investment. The same way country clubs aren’t just for food, golf and banter. Embedded finance opens the door for classically aligned companies and charities to think about expanding their business model. I could imagine Greenpeace offering embedded investing. So, could the country club co-invest in art that is displayed (but also invested) in.
Equalising opportunity with Embedded Finance
Embedded finance allows financial services to be delivered in a more personalised, user-friendly way. Apps can now provide personalised investment recommendations based on a user’s spending habits, savings goals, and risk tolerance. And thanks to automation, these services are becoming more affordable and scalable. Instead of paying for an expensive financial advisor, users can rely on AI-driven tools to offer similar advice for a fraction of the cost, or even for free. Wealthfront does this by offering automated financial planning and investment management with AI-driven recommendations and tax optimisation strategies.
GoHenry is another example of a company taking the initiative and embracing its solutions. They allow customers to invest in the company using the Crowdcube platform. People can invest in as little as they want and become shareholders with ease. As a result, loyalty is enhanced and capital surges.
Another example is fractional investing. In the past, buying a single share of a company like Amazon or Tesla might have been out of reach for someone with limited funds. However, this no longer has to be the case as companies like Robinhood allow customers to invest in big stocks like Tesla for as little as £1, making it possible for anyone to grow their wealth without having to stretch themselves and get into debt.
What does the future hold?
As embedded finance continues to evolve, we can anticipate even more innovations in the world of micro-investing and wealth management. The lines between financial services and everyday life will continue to blur, making it easier than ever for people to manage their money, invest, and build wealth – all without needing a financial background or a large amount of capital.
Philipp Buschmann is co-Founder and CEO at AAZZUR, a one-stop-shop for smart embedded finance experience. Recognised as a rising star in the FinTech space, AAZZUR’s mission is to build profitable banking whilst at the same time empowering consumers to have access to better informed financial choices.
Philipp is a serial entrepreneur with extensive experience of working in Challenger Banking, Financial Services, IT and Energy across the world. He took one of his business’s public – Ignis Petroleum was publicly listed in the US and Germany.
Having started as a developer in Financial Services, Philipp has first-hand experience of the banking revolution from both a technology and financial perspective. His interest in behavioural economics helped inspire AAZZUR’s revolutionary work on customer centricity in banking.
Philipp holds an MBA from the London Business School. He is passionate about entrepreneurship and loves exchanging ideas, insights and discussing FinTech’s future. He has spoken at major Fintech events including Money 20/20, MoneyLive, Finovate, Fintech Matters, and the Future of Retail Banking.
Cullen Zandstra, CTO at FloQast on mitigating the risks of AI to deliver benefits to financial services
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There’s a lot of buzz around Generative AI (GenAI). What’s not always heard beneath the noise are the very real and serious risks of this fast-developing AI tech. Let alone ways to mitigate these emerging threats.
Currently, one quarter (26%) of accounting and bookkeeping practices in the UK have now adopted GenAI in some capacity. That figure is predicted to grow for many years to come.
With this in mind, and as we hit the crest of the GenAI hype cycle, it’s critically important that leaders focus closely on the potential risks of AI deployment. They need to proactively prepare to mitigate them, rather than picking up the pieces after an incident.
Navigating the risky transition to AI
The benefits of AI are well-proven. For finance teams, AI is a powerup that unlocks major performance and efficiency boosts. It significantly enhances their ability to generate actionable insights swiftly and accurately, facilitating faster decision-making. AI isn’t here to take over but to augment the employees’ capabilities. Ultimately improving leaders’ trust in the reliability of financial reporting.
One of the most exciting aspects of AI is its potential to enable organisations to do more with less. Which, in the context of an ongoing talent shortage in accounting, is what all finance leaders are seeking to do right now. By automating routine tasks, AI empowers accountants to focus on higher-level analysis and strategic initiative, whilst drawing on fewer resources. GenAI models can help to perform routine, but important tasks. These include producing reports for key stakeholders and ensuring critical information is effectively and quickly communicated. It enables timely and precise access to business information, helping leaders to make better decisions.
However, GenAI also represents a new source of risk that is not always well understood. We know that threat actors are using GenAI to produce exploits and malware. Simultaneously levelling up their capabilities and lowering the barrier of entry for lower-skilled hackers. The GenAI models that power chatbots are vulnerable to a growing range of threats. These include prompt injection attacks, which trick AI into handing over sensitive data or generating malicious outputs.
Unfortunately, it’s not just the bad guys who can do damage to (and with) AI models. With great productivity comes great responsibility. Even an ambitious, forward-thinking, and well-meaning finance team could innocently deploy the technology. They could inadvertently make mistakes that cause major damage to their organisation. Poorly managed AI tools can expose sensitive company and customer financial data, increasing the risk of data breaches.
De-risking AI implementation
There is no technical solution you can buy to eliminate doubt and achieve 100% trust in sources of data with one press of a button. Neither is there a prompt you can enter into a large language model (LLM).
The integrity, accuracy, and availability of financial data are of paramount importance during the close and other core accountancy processes. Hallucinations (another word for “mistakes”) cannot be tolerated. Tech can solve some of the challenges around data needed to eliminate hallucinations – but we’ll always need humans in the loop.
True human oversight is required to make sure AI systems are making the right decisions. We must balance effectiveness with an ethical approach. As a result, the judgment of skilled employees is irreplaceable and is likely to remain so for the foreseeable future. Unless there is a sudden, unpredicted quantum leap in the power of AI models. It’s crucial that AI complements our work, enhancing rather than compromising the trust in financial reporting.
A new era of collaboration
As finance teams enhance their operations with AI, they will need to reach across their organisations to forge new connections and collaborate closely with security teams. Traditionally viewed as number-crunchers, accountants are now poised to drive strategic value by integrating advanced technologies securely. The accelerating adoption of GenAI is an opportunity to forge links between departments which may not always have worked closely together in the past.
By fostering a collaborative environment between finance and security teams, businesses can develop robust AI solutions. They can boost efficiency and deliver strategic benefits while safeguarding against potential threats. This partnership is essential for creating a secure foundation for growth.
AI in accountancy: The road forward
The accounting profession stands on the threshold of an era of AI-driven growth. Professionals who embrace and understand this technology will find themselves indispensable.
However, as we incorporate AI into our workflows, it is crucial to ensure GenAI is implemented safely and does not introduce security risks. By establishing robust safeguards and adhering to best practices in AI deployment, we can protect sensitive financial information and uphold the integrity of our profession. Embracing AI responsibly ensures we harness its full potential while guarding against vulnerabilities, leading our organisations confidently into the future.
Founded in 2013, FloQast is the leading cloud-based accounting transformation platform created by accountants, for accountants. FloQast brings AI and automation innovation into everyday accounting workflows, empowering accountants to work better together and perform their tasks with greater efficiency and accuracy. Now controllers and accountants can spend more time delivering greater strategic value while enjoying a better work-life balance.
Will Rolph, Business Development Manager at Clear Junction, takes a closer look at the tech making digital remittances possible
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Digital remittances are one of the main forces driving financial inclusion. Over 200 million migrant workers send money home every year. FinTech as a force for good can create positive changes for individuals and businesses; remittances are a prime example. Their role in facilitating financial inclusion cannot be underestimated. By increasing people’s purchasing power, raising per capita incomes, and feeding into local and national economic growth.
By 2027 remittances could reach $1.2 trillion, with the potential to unleash profound transformations in their recipient societies. Many factors are driving this growth. These include increasing waves of migration, none are as influential as the proliferation of innovative technology making remittances easier to send and receive. And at much lower cost than traditional money transfer channels beset by high FX fees and sluggish settlement times.
For decades, remittances were dominated by a few players including Western Union and MoneyGram. They have enviable global reach and networks. However, recipients – especially those in rural and remote locations – were faced with a lack of physical offices on the ground where they could collect their remittances. It was common for recipients to have to travel long distances to get their money. The loss of time and convenience is obvious. These often arduous journeys also came with increased risk of theft or loss of funds along the way.
The lack of physical infrastructure soon became a problem that tech was perfectly placed to solve. It did so in a way that allowed mobile payments to leapfrog legacy infrastructure issues with ease.
What’s powering digital remittances?
The tech behind digital remittances is a complex ecosystem that has evolved significantly over time. Furthermore, the pace of innovation shows no sign of slowing down. There are several key technologies and methods involved in advanced remittance solutions.
Electronic Funds Transfer (EFT) is a method of transferring money from one bank account to another electronically. Remittance services often utilise EFT to move funds between the sender’s bank account and the recipient’s bank account or designated payout location.
Payment gateways are another crucial component. These online platforms facilitate the transfer of funds between parties. They securely process transactions, verify payment information, and transfer funds between the sender and the recipient.
Remittance providers often integrate with banks, payment gateways, and other financial institutions via APIs (application programming interfaces). This facilitates access to banking infrastructure and fund transfers. The APIs enable real-time transaction processing, status updates, and seamless connectivity between the remittance platform and other financial services.
Security is paramount when it comes to remittance transactions. Remittance platforms employ encryption tech to secure data transmission and storage. This protects sensitive financial information and prevents fraud. Secure Socket Layer (SSL) encryption, Transport Layer Security (TLS), and multi-factor authentication are commonly used to safeguard transactions and user data.
These technological advances have all played their part in helping remittances to proliferate. People who were out of reach can now access a wide array of sophisticated financial services all from their phone thanks to the neobanking revolution.
Three tech trends taking digital remittances to the next level:
Super Apps
The main innovation that has sent remittances skyrocketing is the phenomenal adoption of smartphones, which has paved the way for the rise of money transfer super apps.
The importance of the smartphone in the global remittance market cannot be understated. By necessity, apps need to be user-friendly and easy to navigate to succeed. Apps play a crucial role in improving the remittance process. They offer the speed, cost efficiency, and security that users have come to expect. Furthermore, remittance apps often provide features that allow users to track their transfers in real-time and manage their transaction history easily. This helps in budgeting and financial planning, especially for those who send remittances regularly.
Most importantly, 4G or 5G networks mean such apps can reach users in remote or underserved areas where access to broadband internet infrastructure or traditional banking services is limited or non-existent. This accessibility is in turn driving inclusivity and promoting financial participation and empowerment among a broader segment of the population.
Eastern Europe serves as a good example of where this technology is particularly life changing. Across the continent, banking penetration rates range between 44% in Albania to 92% in Croatia. So, a key challenge and focus for banks, governments, and tech solution providers is driving greater financial inclusion, and improving remittance flows are key to this.
Blockchain
Just as cryptocurrencies use blockchain technology to track assets, some remittance providers are now leveraging the same technology to streamline the transfer process and enhance security.
Blockchain technology enables secure, transparent, and immutable record-keeping of transactions. This reduces the risk of fraud, enhancing trust between parties. Cryptocurrencies like Bitcoin and stablecoins are sometimes used for remittance purposes, leveraging blockchain technology for fast and low-cost digital cross-border transfers.
It’s easy to see the attraction of blockchain technology for remittance providers. Moreover, it is a fully encrypted, decentralised, and immutable ledger, and as such cannot be altered in any way. Also, because blockchain technology is decentralised, no intermediary bank or financial institution can get involved. For these reasons, blockchain could become crucial to the remittance industry in the coming years.
Artificial Intelligence & Machine Learning
There are few industries not being impacted by AI and ML technologies. Both are increasingly being employed in remittance services to detect fraudulent activities, improve compliance with regulatory requirements, and enhance user experience. Furthermore, these technologies analyse transaction patterns, identify anomalies, and provide insights to prevent fraudulent transactions and ensure regulatory compliance.
Why all of this digital transformation matters
Remittances play a vital role in both individual livelihoods and broader economic development efforts. This makes them an essential aspect of global economic relations and poverty alleviation strategies. Additionally, we can see the tangible, life-changing differences that payment technology evolution can achieve. Moreover, through increased household purchasing power, accessing formal and cheaper financial services, and indirectly through increased revenues for remittance service providers and the businesses people buy from.
Clear Junction is a global payments solutions provider that was established in 2016. The company was founded by a veteran team of financial professionals with many years of experience in cross-border payments and banking. Over the years, we have worked tirelessly to build and develop our own proprietary technology to facilitate an end-to-end regulated payments solution. We are licensed and regulated by the Financial Conduct Authority and have offices in multiple locations across the UK and Europe, including London, Poland and Latvia.
Russ Rawlings, RVP, Enterprise, UK&I at Databricks, on the future of AI in FinTech
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Strict regulation, along with time and cost restraints, means financial services must take a measured approach to technological advancements. However, with the emergence of GenAI, particularly large language models (LLMs), organisations have an opportunity to maximise the value of their data to streamline internal operations and enhance efficiencies.
Embracing GenAI has never been more important for organisations looking to stay ahead of the curve. 40-60% of the global workforce will be impacted by the growth of AI. Moreover, global adoption of GenAI could add the equivalent of $2.6tn to $4.4tn in value annually to global industries. The banking sector stands to gain between $200-340 billion.
But whilst the financial services industry can gain incredible benefits from GenAI, adoption is not without its challenges. Financial organisations must prioritise responsible data management. They must also navigate strict privacy regulations and carefully curate the information they use to train their models. But, for companies that persevere through these obstacles, the benefits will be substantial.
Building customised LLMs for financial services
Consumer chatbots have brought GenAI to the mainstream. Meanwhile, the true potential of this transformative technology lies in its ability to be tailored to the unique needs of any organisation, in any industry. Including the financial sector.
Risk assessment, fraud prevention, and delivering personalised customer experiences are some of the use cases of custom open source models. Created using a company’s proprietary data, these models ensure relevant and accurate results. And are more cost-effective due to their smaller datasets. For instance, banks can use a customised model to seamlessly analyse customer behaviour and flag up any suspicious or fraudulent activities. Or, a model can leverage sophisticated algorithms to assess an individual’s eligibility for a loan.
Another huge benefit of these tailored systems is trust and security. Deploying a custom open-source model eliminates the need to share sensitive information with third parties. This is crucial for organisations operating within such a highly regulated industry. This approach also democratises the training of custom models. Furthermore, it allows organisations to harness the power of GenAI whilst retaining control and compliance.
Using data intelligence to boost AI’s impact
To truly harness the power of GenAI, organisations must cultivate a deep understanding of data across the entire workforce. Every employee, regardless of how technical they are, must grasp the importance of proper data storage. Also how data can be used to improve decision-making.
Organisations can use a data intelligence platform to help implement this. Built on a lakehouse architecture, a data intelligence platform provides an open, unified foundation for all data and governance. It operates as a secure end-to-end solution tailored to the specific needs of the financial services industry. By adopting such a platform, businesses can eliminate their reliance on third party solutions for data analysis. They can create a streamlined approach to data governance and accelerate data-driven outcomes. Users across all levels of the business can navigate their organisation’s data, using GenAI to uncover important insights.
The future of AI in the financial sector
The path to success lies in embracing GenAI as a canvas for crafting bespoke solutions. Whilst no two financial institutions are exactly the same, the industry’s tools must strike a delicate balance between supporting specific use cases and addressing broader requirements, Customised, open source LLMs and data intelligence platforms hold the key, sparking transformative change across the sector. These tailored solutions will empower financial businesses to integrate cutting-edge innovations and ensure security, governance and customer satisfaction. Organisations that embrace this change will not only gain a competitive edge, but also pave the way for larger transformations, re-shaping the financial landscape and setting new standards for the industry.
Databricks is the data and AI company with origins in academia and the open source community. Databricks was founded in 2013 by the original creators of Apache Spark™, Delta Lake and MLflow. As the world’s first and only lakehouse platform in the cloud, Databricks combines the best of data warehouses and data lakes to offer an open and unified platform for data and AI.
PayPal Ventures, the global venture capital arm of PayPal, announced additional investment in Chaos Labs. This investment underscores PayPal Ventures’ confidence…
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PayPal Ventures, the global venture capital arm of PayPal, announced additional investment in Chaos Labs. This investment underscores PayPal Ventures’ confidence in Chaos Labs’ potential and their blockchain products.
Chaos Labs: Edge
Chaos Labs’ recent launch of Edge, a new decentralised oracle protocol, has garnered significant attention within the industry. Edge has already secured a remarkable $30 billion over the last 2 months. It has been adopted by leading exchanges such as Jupiter, the top perpetuals exchange on Solana. And also by GMX, the leading exchange on Arbitrum.
Edge offers a comprehensive, low-latency oracle solution. It combines accurate price data with actionable market intelligence. Its advanced architecture ensures the security and efficiency of DeFi applications. Furthermore, providing insights into market dynamics and security risks. Edge monitors the market for specific risk signals, performs the offchain data parsing and computation, and outputs one actionable data point.
Omer Goldberg, CEO and Founder of Chaos Labs on the PayPal Ventures investment
Omer Goldberg, CEO and Founder of Chaos Labs, said, “We’re excited to receive the strong confidence and additional support from the PayPal Ventures team. Edge by Chaos is the culmination of our entire company’s work and expertise. Edge Price, Risk, and Proofs deliver meaningful and unmatched contextualised risk and price data for assets including stablecoins and other real-world-assets. In addition to the crypto assets and venues that provide access to them.”
Last month, Chaos Labs announced a $55 million Series A funding round led by Haun Ventures, including prominent new investors such as F-Prime Capital, Slow Ventures, and Spartan Capital, and existing investors including PayPal Ventures. Chaos Labs has experienced significant growth, tripling its customer base and securing billions in trading volume, loans, and incentives.
PayPal committed to Blockchain
PayPal Ventures’ investment aligns with PayPal’s ongoing commitment to the blockchain ecosystem. In May 2024, PayPal launched its stablecoin, PYUSD, on the Solana blockchain.
Amman Bhasin, Partner at PayPal Ventures, said, “Our continued investment in Chaos Labs reflects our belief in their vision to create a safer crypto ecosystem. And move more financial services on chain. Chaos Labs has emerged as a leading risk authority in the sector and we are thrilled to witness their evolution as they launch innovative products like Edge to mitigate oracle vulnerabilities.”
About Chaos Labs
Chaos Labs leads the blockchain risk management industry with innovative solutions for the evolving onchain financial landscape. It enables protocols to verify stability across all market conditions, merging offchain observability with onchain risk parameter adjustments. Backed by leading venture capital firms, Chaos Labs continues to set new standards for security and responsiveness in onchain finance. Founded in 2021, Chaos Labs is headquartered in New York City.
About PayPal Ventures
PayPal Ventures is the global corporate venture arm of PayPal. We invest for financial return in companies at the forefront of innovation in fintech, commerce enablement, digital infrastructure, and crypto/blockchain technologies. Through the expertise, experience, and vast network of PayPal Ventures – and the companies we invest in – we are helping to bring transformative solutions to market faster. For more information, please visit: www.paypal.vc
Adam Edwards, Product and Growth Director at Satago on how embedded finance is helping drive digitisation for the B2B financial space
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Small and Medium Enterprises (SMEs) are at the heart of the UK economy. They contribute significantly to local employment and revenue across a wide array of sectors. However, the current economic landscape and consistently high inflation are inhibiting them from reaching their full potential.
Three key challenges which prevent SMEs from investing in growth are tight cash flow, poor access to capital and the late payments crisis. With over £32 billion in late payments plaguing them, SMEs need longer-term, meaningful policy action from the government, alongside better Working Capital solutions.
Investing in Embedded Finance
With a growing SME market needing better support than ever from lenders, banks are rapidly investing in IT adoption. Particularly, Embedded Finance tools, to better serve this sector. Indeed, analysts have forecast a staggering 148% growth in the Embedded Finance market. It is predicted to reach a revenue of $228 billion by 2028.
Banks have been quick to offer flexibility to consumers in the business-to-consumer (B2C) Embedded Finance space. Offering lots of options for flexible finance in response to high demand. However, the business-to-business (B2B) market has in many ways been slower.
There are certainly challenges here – but the opportunities are huge for the lenders that get this right to go on and serve the SME space. So, what can the B2B space learn from how Embedded Finance has succeeded in the B2C sector? And what are some of the benefits and new challenges that this investment could pose?
The role of Embedded Finance in supporting SMEs and founders
Embedded Finance emerges as an innovative approach to bolster SME support. It integrates financial services directly into non-financial platforms. This integration empowers SMEs to seamlessly access critical financial services. These include instant credit, streamlined payments processing, and optimised cash flow management. This enhances operational efficiency and financial resilience.
When we look at B2C financial services, we can see traditional banks working hard to catch up with challenger banks. These competitors have presented consumers with entirely new means to access digital banking, improve their visibility on financial information, and manage their funds and savings with secure API access.
This has forced traditional banks to digitise quickly in the B2C space to remain competitive and keep up with customer expectations. Embedded tools have become a key part of this. While the B2B financial services industry hasn’t traditionally faced the same level of market pressure to innovate – this is now starting to change. We will start to see the impact in a couple of ways.
I predict we will begin to see rapid growth in the number of partnerships between FinTech companies and B2B lenders. Where banks such as Barclays have already been partnering with the likes of Amazon on the consumer side for a long time to offer flexible payment capabilities, we will see a lot more similar partnerships starting to take place in the B2B space, to support the growing SME market. As a result, I anticipate a rise in the number of online marketplaces dedicated to the B2B lending space. We will also see increasingly niche market areas – such as agriculture and dedicated equipment manufacturers, for example.
The opportunities and challenges with Embedded Finance
There are several opportunities to be capitalised on via Embedded Finance in the B2B space. Lenders that have been held back by legacy systems in the past will now be able to offer a more flexible suite of digital finance options to customers, especially SMEs. SMEs, which may be run by a single founder or a small group of stakeholders, are likely to be used to an agile structure. They can take big decisions quickly and will be keen to be able to flexibly access financial tools. Through integration with expert providers, lenders can also benefit from new origination channels and access new pools of customers for bank accounts, financial consultancy and more.
For the fintech partners and integrators, including those providing white-labelled products to banks, there’s a chance to take advantage of the trust customers have in their banking providers. And the lenders’ brand reputations can increase their own revenue and future opportunities for sale.
Meanwhile, SMEs are set to reap the benefits of being able to offer better user and payment experiences to their own customers further up chain. They too, will benefit from better cash flow management, improved financial visibility and increased flexibility via different working capital tools. Just like consumers are able to – all of which will be facilitated by better digital tools.
However, it is worth acknowledging that as the B2B space grows, heightened concerns around fraud risk associated with financial transactions are also likely to emerge. Going forwards, we’ll see more analytics and artificial intelligence built into Embedded Finance. This will feed into underwriting models and support fraud checks. With more complex transactions and shared financial data via Embedded Finance partnerships, the risks of non-compliance could become more perilous. Therefore, there are certainly challenges ahead.
A competition for innovation in the B2B space
For SMEs to thrive, sustained and reliable access to cash flow is essential. Collaborative efforts between the government and the financial services industry are critical. Establishing robust regulatory frameworks and fostering innovation in Working Capital solutions will be vital.
The Embedded Finance market in over the next year and beyond can expect to see significant emphasis on B2B players, such as banks and corporate lenders. They are looking to catch up with the consumer market and serve SME customers with the most secure – and flexible – lending options.
Consumers have realised the benefits of seamless, digital financial services for themselves. We’ll now see demand growing as SMEs expect the same innovation and experience when it comes to their B2B financing. Lenders and banks that want to satisfy this growing pool of customers hungry for flexibility and sustainable lending support, will need to be willing to evolve and digitise, or risk missing out on the competition.
Satago is a leading fintech that enables lenders and corporates to streamline operations, boost revenue, and enhance their business customer experiences. This is achieved through cloud-native Working Capital and Cash Flow solutions, powered by real-time data, Open Banking, and API technology.
Luke Gall, Product & Engineering Director at Access PaySuite, part of the Access Group, on the open banking opportunity for FinTechs
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In the rapidly evolving landscape of financial services, Open Banking is no longer a futuristic concept but a present-day reality. Recent findings reveal that the adoption of Open Banking payments has surged, with 32% of financial services businesses and an impressive 58% of fintechs now offering this innovative payment method to their customers.
This uptake signifies a noteworthy shift for fintechs. Open Banking payments have overtaken Direct Debits (54%) and card payments made over the phone (4%) in terms of availability. The sector continues to expand at a remarkable pace. There are over 26,000 startups currently in operation globally. Understanding and leveraging Open Banking has become an increasingly crucial consideration for organisations to stay ahead in a competitive market.
The rise of Open Banking
Open Banking allows third-party financial service providers to access banking data and initiate digital payments on behalf of customers, provided they have explicit consent. This model not only enhances convenience for users, but also fosters greater competition and innovation within the financial sector. The growing adoption rates reflect a broader acceptance of this technology. It is driven by the potential to streamline payments, enhance user experiences, and offer personalised financial services.
In the UK, FinTech adoption is particularly robust – 84% of individuals use FinTech services daily. The push towards Open Banking is both a response to consumer demand and a strategic move for FinTechs to differentiate themselves. The rise in Open Banking adoption is a signal that financial services must adapt swiftly. For FinTechs, staying ahead involves more than just adopting new technology. It’s about leveraging tech to redefine and enhance service offerings.
Why FinTechs must embrace Open Banking
Today’s consumers demand seamless and efficient financial transactions in order to complete their purchases. Open Banking meets these expectations by enabling quicker and more secure payments. FinTechs can provide this to their customers by integrating Open Banking into their services. This significantly enhances customer satisfaction and fosters loyalty.
The rapid adoption of Open Banking by FinTechs highlights its growing importance. Those that hesitate or overlook this trend risk falling behind. Early adopters of Open Banking have the opportunity to leverage its capabilities to introduce distinctive features. These include instant account verification, real-time payments, and enhanced financial insights. It’s a crowded marketplace for FinTechs, but these advancements can deliver a competitive edge.
By granting access to banking data, Open Banking creates the possibility for FinTechs to work with other financial service providers in a collaborative environment. Around 82% of FinTech startups say this helps them to innovate more quickly and effectively. The ability to partner with others in the industry can encourage the development of novel solutions and services. These can be pecifically tailored to evolving consumer needs.
The role of third-party payment providers
Third-party payment providers play a crucial role in helping FinTechs adopt Open Banking. They do this by offering the infrastructure and expertise needed to integrate with banks and other financial institutions. These providers facilitate secure access to customer data through APIs. This enables FinTechs to deliver innovative services like personalised financial management and account aggregation. And all without the need to build costly systems from scratch.
By leveraging the established networks and compliance frameworks of third-party providers, FinTechs can more easily meet regulatory requirements. Such as those outlined in the Revised Payment Services Directive (PSD2). This allows them to scale faster and focus on enhancing the customer experience. By prioritising simplicity and convenience, FinTechs can not only improve user satisfaction but also ensure their Open Banking offerings meet the high expectations of today’s consumers.
However, FinTechs must recognise not all customers are familiar with the nuances of Open Banking. To ensure a smooth transition and maximise the benefits of this technology, financial service providers, including FinTechs, should invest in educating their customers about its advantages and functionality. This will empower users to confidently engage with Open Banking and fully leverage its potential.
At the same time, safeguarding sensitive financial data is critical to building and maintaining this trust. Robust security measures, such as strong encryption protocols like Advanced Encryption Standard (AES) and Data Encryption Standard (DES), are essential to protect data during transmission and storage. Regular security audits help identify and address vulnerabilities. Meanwhile, transparent privacy policies demonstrate a commitment to data protection.
The future of Open Banking
The trajectory of Open Banking is set to continue its upward trend, as more financial institutions and FinTechs embrace its potential. For FinTechs, this is an opportunity to lead the charge in transforming financial services. By understanding and addressing the key factors associated with adoption, FinTechs can not only stay relevant, but also drive the future of financial technology.
Embracing Open Banking is not just about keeping up with industry trends… It’s also about positioning yourself at the forefront of a financial revolution. The ability to offer innovative, secure, and user-centric services will define the next wave of FinTech success. In this dynamic environment, staying ahead of the curve requires foresight, adaptability, and a commitment to leveraging technological advancements. FinTechs that navigate these considerations effectively will not only thrive but also shape the future of financial services.
Why Access PaySuite? Getting paid should be simple – and that’s where we come in! Backed by The Access Group a top 5 UK software company, Access PaySuite is led by a team of payments experts with over 20 years’ of experience in the industry. Access PaySuite is a reliable, resilient solution that helps your business thrive with every payment.
FinTech Strategy spoke with Zak Lambert, Product Lead for Plaid in Europe, to find out more about the world-leading data network and payments platform
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Plaid offers the world’s largest open finance platform. Plaid specialises in bank connectivity and provides a single API for customers to integrate with banks around the world. They have had innovative success stories working with companies like Western Union and MoneyBox. Plaid see opportunities around current trends such as account-to-account payments, variable recurring payments, and cash flow underwriting for businesses and consumers.
At Money20/20 Europe, FinTech Strategy spoke with Plaid’s Product Lead for Europe, Zak Lambert, to learn more…
Tell us about Plaid…
“I work in product management for Plaid in Europe. We’re the world’s largest open finance platform operating across 20 markets in Europe and North America. Back in 2019 when we first launched in Europe our bread and butter was bank connectivity. Integrating with over 10,000 banks through a single API. We still provide that connectivity in one API for our customers. Millions of users go through that journey every day for a number of different use cases.
“I was part of the team that started Plaid in New York and opened the office there. I did a variety of things from helping customers integrate, building new products, working with sales teams, and anything else that would help us grow, About a year after that, I moved over to London to be the first person on the ground there. Fast forward five years and I’m delighted to be the head of product in Europe. I’ve been with the company for about five and a half years. Overall, it’s just been an exciting journey from a hundred people to more than a thousand now.”
Talk about some of the successful integrations Plaid is involved in…
“We recently announced that we’re working with Western Union across Europe to fund transfers, whether that’s someone depositing in the UK and Germany, Italy or Spain. Plaid is powering account to account payments for Western Union across their various use cases. Particularly when you look at the growing trend around account-to-account payments and pay by bank, we’re thrilled to be working with brands of that caliber. Since launch we’ve seen hockey stick growth for their customer adoption of pay by bank. This shows trust and reliability of the open banking ecosystem which we’re excited to be a part of. We are also delighted to be supporting MoneyBox, one of the largest fintechs in the UK. They handle millions of transactions to fund and create ISAs. Moneybox have launched VRP (Variable Recurring Payments) through Plaid in order to optimise their customer flows and have more reliability in customer recurring payments. With our new flow, users can go through the journey once, set up their consent, and then money can move in the background. It’s like a card on file with a bank account. We see this as a significant trend in the coming years in the UK specifically, and then across Europe as that product set develops.”
What trends are you seeing across the FinTech landscape? What opportunities do you see for Plaid?
The UK has always been an early adopter of open banking but we’re now seeing a surge in demand from mainland Europe. We are currently live in 18 markets in Europe and continue to focus on our reliability and depth in each market to ensure we can meet that demand.
This year, we’ve learned more about how our customers want to use VRP (Variable Recurring Payments). In June, we launched Moneybox’s VRP proposition to enable them to relaunch their Payday Boost offering which was previously restricted by direct debit limitations. Every week we’re having more and more conversations on VRP use cases.
We’re also excited about how open banking and fintech more broadly can help make financial access more inclusive. For example, open banking can help the underserved get more access to credit by using real-time data to inform underwriting decisions. At Plaid, we’ve built specific products to do this such as the Financial Insights Report that companies such as Capital on Tap are already using to inform their decisioning programmes.
And what’s next for Plaid? What future launches and initiatives are you particularly excited about?
“There are three areas I would highlight… First, pay by bank globally for Plaid. You look at Western Union, they’re probably not the first company to adopt something, but the second they adopt something it probably is about to hit mainstream. That’s significant volume. They’re one of the world’s oldest companies. They’ve been fantastic to work with. So, as that trust and familiarity start coming into play, people that aren’t Western Union come and say, okay, we’ve seen this experience. It was really good. We want it now. We’re working with our teams across the globe to bring that to life for North America and Europe in the simplest way possible. It’s really exciting.
“Second, we have the significant opportunity to bring lending into the 21st century. Particularly because of the third thing, which is the Plaid network. We’ve touched hundreds of millions of consumers. We’ve spent a long time building products to make payments easy and to make underwriting easy. And now we’re in the third phase… We have all of these users, this large network, so how can we make this even simpler for people? And just giving smoother experiences when the user is actually in the workflow. So, boosting conversion, delivering network style experiences in the same way that other network businesses do.”
Why Money20/20? What is it about this particular event that makes it the perfect place to showcase what you do? How has the response been to Plaid?
“This is my sixth straight Money20/20 and it gets busier every year! It’s great to learn more about the ecosystem at large. You can see developing trends each year, and it’s always a little bit different. You build relationships at Money20/20 that stay with you for the rest of your life. And it’s a perfect opportunity to meet people in the flesh that you might normally only see on screen. You can get a pretty direct read on what they’re working on and it’s exciting to be here making new connections.”
Henry Balani, Global Head of Industry & Regulatory Affairs at Encompass Corporation, on meeting the demand for improved risk management, operational efficiency, and customer service with pKYC
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The traditional banking and finance industry is evolving. Processes are experiencing a digital transformation as a result of perpetual Know Your Customer (pKYC). The pKYC approach enables modern banks to continuously update and verify customer information in real time. Banks are moving away from the reliance on periodic reviews. This change is driven by technological advancements. And the increasing demand for dynamic and responsive regulatory compliance mechanisms.
Perpetual KYC
Conventional KYC processes commonly involve periodic reviews of customer information at fixed intervals. These reviews are typically conducted every one, three, or five years. While these reviews are thorough and comprehensive, they are also static. This can result in outdated information, potentially overlooking changes in customer risk profiles or new compliance requirements.
On the other hand, perpetual KYC is dynamic and event driven. Through its continuous and automated approach, pKYC enables financial institutions to address risks and compliance needs in real-time. These risks can be determined by continuously monitoring customer activities. Furthermore, automatically updating profiles in response to specific triggers, including changes in personal information, significant transactions, or alterations in beneficial ownership.
Gaining a competitive advantage with pKYC
By leveraging pKYC, banks, and other regulated financial institutions can take advantage of a range of benefits. These are crucial in the modern digital era to gain a competitive edge. Through continuous monitoring, pKYC enables financial institutions to identify and address potential risks promptly. This real-time approach helps mitigate risks associated with financial crimes. Moreover, it ensures compliance with the latest regulatory standards.
pKYC will lead to operational efficiency and cost reduction. By automating many of the manual processes involved in KYC, pKYC significantly reduces the time and resources needed for compliance. This allows financial institutions to focus their efforts on high-risk cases, rather than conducting blanket reviews for all customers, resulting in substantial cost savings.
This process also enables many banks to improve their customer service and management. It also enhances the customer’s experience. With pKYC, customers are not subjected to frequent, intrusive reviews if their profiles remain stable. This results in a smoother and more positive customer experience, potentially increasing overall customer satisfaction and loyalty. Additionally, automated systems minimise human error and ensure consistency in applying KYC policies. This enhances overall regulatory compliance and reduces the risk of non-compliance penalties.
Perpetual KYC implementation: Challenges and considerations
Implementing a pKYC operating model is not straightforward. It requires the right blend of infrastructure and operating process. Every firm’s pKYC journey and ecosystem will be unique and cut across people, processes and technologies.
Data is central to the success of pKYC as reviews based on event changes (aka event driven triggers) will not be effective if client information is outdated, missing or incorrect. Without consistent access to relevant and accurate client information, pKYC is impossible. Corporate Digital Identity (CDI) is fast emerging as a foundation for ensuring valid customer information is collected for successful pKYC operations.
Being able to leverage this data requires an ecosystem of technology, which may be developed in house, utilising third-party RegTech providers, or a combination of both. This technology should drive how data is stored, structured and accessed so that pKYC triggers can be comprehensively managed. Customer lifecycle management systems (CLMs) are particularly relevant to pKYC as they connect all components along the workflow processes.
Importantly, overarching executive sponsorship is needed to ensure a successful outcome in transformation initiatives. Recognising the structural and cross departmental challenge, influential sponsors will align the multiple stakeholders involved in driving this change and will champion a firm’s pKYC strategy and approach to regulators and other key stakeholders.
Ultimately, pKYC must be future-proof and scalable, ready to adapt in line with business strategy and regulation to keep firms competitive.
The future of pKYC
The adoption of pKYC is growing, driven by regulatory pressures and the increasing complexity of financial crimes. Financial institutions are recognising the benefits of a proactive, real-time approach to compliance and risk management. The move towards pKYC is seen as a necessary evolution to stay ahead in a highly regulated and competitive financial environment.
As the technological landscape continues to evolve, integrating advanced technologies such as blockchain and further developments in AI and ML will likely enhance pKYC systems’ capabilities. Ensuring higher levels of compliance and risk mitigation, these technologies are able to provide more robust and secure mechanisms for customer verification and monitoring.
Blockchain technology can be utilised to further improve the initial customer authentication and validation process. As a result, we can expect improvements and advancements in the quality of customer data collected during initial customer onboarding processes. Financial institutions can then leverage AI-enhanced tools that can identify and collect the necessary attributes during document processing stages. This ensures that pKYC will utilise relevant, accurate, and up-to-date data. Perpetual KYC represents a significant departure from traditional, periodic KYC, as it offers a wide range of benefits in real-time risk management, operational efficiency, and customer experience. Although the implementation of pKYC poses certain challenges, it also provides numerous advantages, making it an increasingly attractive solution for financial institutions aiming to enhance their compliance and risk management frameworks and maintain a competitive edge in a rapidly evolving regulator landscape.
Tetyana Golovata, Head of Regulatory Compliance at IFX Payments, on builidng compliance into business culture
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Regulation plays a critical role in shaping the fintech landscape. From Consumer Duty and FCA annual risk reporting to APP fraud, the tectonic plates of the sector are shifting. Whether you consider these regulations as benefiting or hindering the industry, businesses are struggling to keep up.
According to research by fraud prevention fintech Alloy, 93% of respondents said they found it challenging to meet compliance requirements. In a new study by Davies a third of financial leaders (36%) said their firms had been penalised for compliance breaches in the year to June. The FCA brings in its operational resilience rules in March 2025. So, it is more important than ever to ensure your company makes the grade on compliance.
Learning lessons from history
Traditionally, FX has struggled with the challenge of reporting in an ever-developing sector. As regulatory raise the bar on compliance, responsible providers must help the industry navigate the changes and upcoming deadlines.
Fintechs and payments companies are entering uncharted waters. They face pressure to beat rivals by offering more innovative products. Regulators have struggled to keep up in the past. Gaps in legislation have allowed some opportunists to slip between the net, as seen in the collapse of FTX. Because of this, implementation and standardisation of the rules is necessary. This ensures innovation remains seen as a force for good, and to help identify and stamp out illegal activity.
Culture vs Business
Culture has become a prominent factor in regulatory news. We have seen cases of large fines and public censure relating to cultural issues. FCA COO Emily Shepperd observed in a speech to the finance industry, “Culture is what you do when no one is looking”.
Top-level commitment is crucial when it comes to organisational culture. Conduct and culture are closely intertwined. Culture is not merely a tick-box exercise. It is not defined by perks like snack bars or Friday pizzas. Rather, it should be demonstrated in every aspect of the organisation, including processes, people, counterparties, and third parties.
In recent years, regulatory focus has shifted from ethics to culture. Recognising its crucial role in building market reputation and ensuring compliance with rules and regulations. Furthermore, boosting client confidence, and retaining employees. The evolving regulatory landscape has significantly impacted e-money and payments firms. Moreover, regulations are strengthening each year. Each regulation carries elements of culture, as seen in:
Consumer duty: How do we treat our customers?
Operational resilience: How can we recover and prevent disruptions to our customers?
APP fraud: How do we protect our customers?
Culture Drivers
Key drivers of culture include implementing policies on remuneration, conflicts of interest, and whistleblowing. However, for it to become embedded it must touch employees at every level.
This is showcased by senior stakeholders and heads of departments facilitating close relationships with colleagues across a company’s Sales, Operations, Tech and Product teams to build a collaborative environment.
Finance firms must recognise the trust bestowed on them by their customers and ensure the protection of their investments and data is paramount. Consumer Duty may have been a wake-up call for some companies, but progressive regulation must always be embraced and their requirements seen as a baseline rather than a hurdle.
Similarly, the strengthening of operational resilience rules and the upcoming APP fraud regulation in October are to be welcomed, increasing transparency for customers.
Compliance vs Business
Following regulatory laws is often viewed as a financial and resource drain, but without proper compliance, companies are vulnerable to situations where vast amounts of money can be lost quickly.
A case in point is the proposed reimbursal requirement for APP fraud, which will mean payment firms could face having to pay compensation of up to £415,000 per case.
Complying not only safeguards the client and their money, but also the business itself. About nine in ten (88%) financial services firms have reported an increased compliance cost over the past five years, according to research from SteelEye. Embedding compliance earlier in business cultures can be beneficial in the long run, cutting the time and money needed to adapt to new regulations and preventing the stress of having to make wholesale changes rapidly.
Building a cross-business compliance culture
Compliance is a key principle at IFX Payments, and we strive to be a champion in this area. In response to these challenges, the business restructured, establishing dedicated risk and regulatory departments, along with an internal audit function.
Regulatory compliance aims to support innovation by developing and using new tools, standards, and approaches to foster innovation and ensure product safety, efficacy, and quality. It has helped the firm to navigate the regulatory landscape while driving growth and maintaining high standards.
This organisational shift allowed each business line to own its own risk, with department partaking in tailored workshops designed to identify existing, new, and potential risk exposure. Shared responsibility for compliance is the only way to create a culture which values it. We see this as a great way for organisations to drive innovation while sticking to the rules.
Pat Bermingham, CEO of B2B digital payment specialist Adflex, asks what impact will Artificial Intelligence really have on B2B payments?
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Visit any social media newsfeed and countless posts will tell you AI means “nothing will ever be the same again”. Or even that “you’re doing AI wrong”. The volume of hyperbolic opinions being pushed makes it almost impossible for businesses to decipher between hype and reality.
This is an issue the European Union’s ‘AI Act’ (the Act), which came into force on 1 August 2024, aims to address. The Act is the world’s first regulation on artificial intelligence. It sets out how to govern the deployment and use of AI systems. The Act recognises the transformative potential AI can have for financial services, while also acknowledging its limitations and risks.
Within the debate about AI in financial services, B2B payments are an area where AI has huge potential to accelerate digital innovation. Let’s go beyond the hype to provide a true perspective on what AI really means for B2B payments specifically.
Understanding what AI is, and what it isn’t
AI is a system or systems that can perform tasks that normally require human intelligence. It incorporates machine learning (ML). ML has been used by developers for years to give computers the ability to learn without being explicitly programmed. In other words, the system can look at data and analyse it to refine functions and outcomes.
A newer part of this is ‘deep learning’, which leverages multi-layered neural networks. This simulates the complex decision-making power of our brains. The deep learning benefits outlined later in this article are based on Large Language Models (LLMs). LLMs are pre-trained on representative data (such as payment/transaction/tender data). Deep learning AI does not just look at and learn patterns of behaviour from the data. It is becoming capable of making informed decisions based on this data.
Before we explore what this means for B2B payments, let’s make one caveat clear: human supervision is still needed to ensure the smooth running of operations. AI is a supporting tool, not a single answer to every question. The technology is still maturing. You cannot hand over the keys to your B2B payments process quite yet. Manual processes will retain their place in B2B payments. AI tools will help you learn, adapt and improve more quickly and at scale.
The AI Act – what you need to know
The Act attempts to categorise different AI systems based on potential impact and risk. The two key risk categories include:
Unacceptable risk – AI systems deemed a threat to people, which will be banned. This includes systems involved in cognitive behavioural manipulation, social scoring, and real-time biometric identification.
High risk – AI systems that negatively affect safety or fundamental rights. High-risk AI systems will undergo rigorous assessment and must adhere to stringent regulatory standards before being put on the market. These high risk systems will be divided into two further categories:
AI systems that are used in products falling under the EU’s product safety legislation, including toys, aviation, cars, medical devices and lifts.
AI systems falling into specific areas that will have to be registered in an EU database.
The most widely used form of AI currently, ‘generative AI’ (think ChatGPT, Copilot and Gemini), won’t be classified as high-risk. However, it will have to comply with transparency requirements and EU copyright law.
High-impact general-purpose AI models that might pose systemic risk, such as GPT-4o, will have to undergo thorough evaluations. Any serious incidents would have to be reported to the European Commission.
The Act aims to become fully applicable by May 2026. Following consultations, amendments and the creation of ‘oversight agencies’ in each EU member state. Though, as early as November 2024, the EU will start banning ‘unacceptable risk’ AI systems. And by February 2025 the ‘codes of practice’ will be applied.
So, with the Act in mind, how can AI be used in a risk-free manner to optimise B2B payments?
Today’s B2B payment platforms are not one-size-fits-all solutions; instead, they provide a toolkit for businesses to customise their payment interactions.
AI-based LLMs and ML can be used by payment providers to rapidly understand and interpret the extensive data they have access to (such as invoices or receipts). By doing this, we gain insights into trends, buyer behaviour, risk analysis and anomaly detection. Without AI, this is a manual, time consuming task.
One tangible benefit of this data analysis for businesses comes from combining payment data with knowledge of a wide range of vendors’ skills, products and/or services. AI could then, for example, identify when an existing supplier is able to supply something currently being sourced elsewhere. By using one supplier for both products/services, the business saves through economies of scale.
Another benefit of data analysis comes from payment technology experts. Ours have been training one service to extract data from a purchase order or invoice, to flow level 3 data, which is tax evident in some territories. This automatically provides the buyer with more details of the transaction, including relevant tax information, invoice number, cost centre, and a breakdown of the products or service supplied. This makes it easy and straightforward to manage tax reporting and remittance, purchase control and reconciliation.
AI-driven data analysis isn’t just a time and money-saver, however. It also adds new value by enabling providers to use the data to create hyper-personalised payment experiences for each buyer or supplier. For example, AI and ML tools could look out for buying and selling opportunities, and perform a ‘matchmaking supplier enablement service’ that recommends the best payment methods – and the best rates – for different accounts or transactions. The more personalised a payment experience is, the happier the buyer and more likely they are to (re)purchase.
Efficient data flows mean stronger cash flows
Another practical application of AI is to help optimise cash management for buyers. This is done by using the data to determine who is strategically important and when to pay them. It could even recommend grouping certain invoices together for the same supplier, consolidating them into one payment per supplier, reducing interchange fees and driving down the cost of card acceptance.
AI can also perform predictive analysis for cash flow management, rapidly analysing historical payment data to predict cash flow trends, allowing businesses to anticipate and address potential challenges proactively. This is particularly valuable in the current economic climate where cashflow is utterly vital.
By extracting value-added, tax evident data from a purchase order or invoice, AI can rapidly analyse invoices and receipts to enable efficient, accurate automation of the VAT reclaims process. Imagine: the time comes for your finance team to reclaim VAT on recent invoices and receipts, but they don’t have to manually go through every receipt or invoices and categorise them into a reclaim pile or not reclaimable. It sounds like a dream but it will be the reality for business everywhere: AI does the heavy lifting and humans verify it, saving significant time and resources.
The third significant benefit of AI is automated invoice reconciliation. By identifying key information from an invoice and recognising regular payees, AI can streamline and automate the review process. This has the potential to significantly speed up transactions and enable more efficient payment orchestration.
Binding together all supporting paperwork, such as shipping, customs, routes, and JIT (just-in-time) requirements can also be done by AI, and it’s likely to be less prone to human error.
This provides an amazing opportunity to make B2B payments faster, reduce costs and increase efficiency. Businesses know this: 44% of mid-sized firms anticipate cost savings and enhanced cash flow as a direct result of implementing further automation within the next three years. According to American Express, 48% of mid-sized firms expect to see payment processes accelerate, with more reliable payments and a broader range of payment options emerging.
When. Not if.
There are significant opportunities to leverage AI in B2B payment processes, making it do the heavy lifting. It is, however, essential to view these opportunities with a balanced understanding of the limitations of AI.
While all the opportunities for AI in B2B payments outlined here are based on relatively low-risk AI systems, human oversight of these systems is still essential. However, with all the freed-up time and resource achieved through the implementation of AI, this issue can be avoided.
AI in B2B payments is not an if, but a when. The question is, when will you make the jump, hand in hand with technology, rather than fearing it or passing full control over to it.
In order to grow, it is essential for users to see the tangible benefits. For example, by enhancing efficiencies in account payable (AP), businesses can reallocate time and resource previously spent in AP to other areas. Early adopters are starting to test the water but only time will tell how much of an impact AI will make.
Most businesses will likely wait for the early adopters to fail, learn and progress. If something goes wrong in B2B payments, it can have a huge impact on individuals, businesses and economises. Only when the risk is clearly defined and manageable will AI truly become the gamechanger in B2B payments that all the hype claims.
“Adflexhas been at the heart of the B2B fintech revolution from the beginning. We are known for fostering innovation and helping companies harness the power of digital payments. Our technology and expertise bring together buyers and suppliers to make transactions fast, cost-effective and straightforward to manage. We take the pain out of the supply chain by delivering seamless and secure payment integration that adds value to both buyers and merchants.”
Michael Donnelly, Head of Client Success at BlueFlame AI, on how to prepare your firm to attract and retain the next generation of AI talent
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In the fast-paced world of financial services, a new generation is stepping in with high expectations for generative artificial intelligence (AI) in the workplace. Recently, BlueFlame AI conducted a specialised training session for one of our private equity clients, aimed at their newly hired summer intern class. The experience was eye-opening for us. Furthermore, it also provided a great lesson in the growing importance of AI in the industry and the expectations today’s young professionals have as they enter the workforce
AI & LLMs
The comprehensive training session covered vital areas such as AI and Large Language Models (LLMs), a review of the most popular use cases the industry has adopted, and hands-on practical training in prompt engineering. Moreover, our goal was to show this next generation the skills they’ll need to leverage these tools effectively. New roles could revolutionise alternative investment management processes like due diligence, market analysis, and portfolio management.
We also used this as an opportunity to survey the group about their experience of and expectations for AI use in the workplace – and it yielded some striking insights. A significant 50% of the interns reported using ChatGPT daily, with 83% utilising it at least weekly. Furthermore, these numbers suggest young professionals expect these tools to be available to them in their professional lives. In the same way they are available in their personal lives and set to become as commonplace as traditional software in the workplace. The interns’ expectations regarding AI’s impact on their work efficiency are even more telling. An overwhelming 94% believe these tools will enhance their productivity, indicating strong faith in the technology’s potential to streamline tasks and boost performance.
These high expectations have key implications for employers. A significant 89% of interns expect their employers to provide enterprise-grade AI/LLM access. This statistic is a wake-up call for companies that have yet to invest in AI technologies, highlighting the need to stay competitive not just in terms of products and services but also in workplace technology provision.
Talent Acquisition & Retention
Perhaps most important is AI’s potential impact on talent acquisition and retention. One-third (33%) of interns surveyed indicated they would reconsider their choice of employer if they didn’t offer access to enterprise-grade AI/LLM tools. A response that could throw a serious wrench into any Financial Services firm’s hiring plans.
The message is clear for businesses looking to stay ahead of the curve when it comes to supporting their employees. Investing in AI technologies and training is no longer optional. Firms must be ready to meet the expectations of the incoming workforce. They need to provide them with the best technology to maintain a competitive edge in an increasingly AI-driven business landscape. Companies that embrace AI and provide their employees with the tools and training to harness its power will likely see significant productivity, innovation, and talent retention advantages.
AI Revolution
Private and public investment firms stand to benefit greatly from this AI revolution. As this new generation brings its enthusiasm and expectations for technology tools into the workplace, firms that are prepared to meet these expectations will be better positioned to tap into fresh perspectives, drive innovation and reap significant efficiency and productivity gains. And if firms can take a proactive approach to training and commit to developing a forward-thinking, AI-enabled workforce, they will be able to enhance their teams’ capabilities and shape the future of work in the financial sector.
Generative AI and the workplace expectations it has created mark a new paradigm in the market. The next generation of professionals is not just ready for AI – they’re demanding it. Firms that recognize and act on this trend will be well-positioned to lead the pack when it comes to innovation, efficiency and talent acquisition.
Founded in 2023 BlueFlame AI is the only AI-native, purpose built, LLM-agnostic solution for Alternative Investment Managers.
Neobanks are transforming the financial sector as digital-only institutions that offer a comprehensive range of banking services through mobile apps…
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Neobanks are transforming the financial sector as digital-only institutions that offer a comprehensive range of banking services through mobile apps and online platforms. These services encompass current and savings accounts, payments, loans, and investments — all managed seamlessly through digital channels.
With cutting-edge financial technology, neobanks provide faster, more affordable, and more convenient solutions for both customers and businesses. The surge in mobile phone use, cloud computing, and artificial intelligence has fuelled rapid growth.
The neobanking market is even expanding rapidly, with a projected market volume of $10.44 trillion by 2028, according to Statista. This represents a 13.15 percent growth rate from 2024 to 2028.
Innovative Business Models
To offer a broader range of services and better customer experiences, neobanks leverage application programming interfaces (APIs). This model involves integrating various financial applications and services using APIs. It will allow them to manage Know Your Customer (KYC) verifications, do instant refunds, and arrange collections efficiently.
Then, the significant source for neobanks is interchange fees. This model involves charging transaction fees for every transaction and earning a portion of the fees from payment networks like Visa.
Furthermore, credit card business models use credit as a foundation, generating revenue from transaction fees and interest on carried balances to drive growth and profitability. This model starts with credit card services and later offers a bank account.
Other models allow neobanks to offer high-yield savings accounts and certificates of deposits (CDs). Revenue will come from earning interest on the assets and charging fees for services related to these accounts, such as maintenance fees.
Technology Integration
Neobanks have redefined the banking landscape through a digital-first approach, prioritising customer experience, and leveraging technology to deliver innovative financial services. This combination sets them apart from traditional banks and allows them to offer unique and competitive financial services.
A core characteristic of neobanks is their digital-only operations. By eliminating physical branches, they significantly reduce overhead costs. These savings translate into lower fees for customers and increased competitiveness.
Furthermore, neobanks harness the power of cloud computing, data analytics, and artificial intelligence to deliver personalised financial solutions. These technologies enable them to gain valuable insights into customer behaviour, allowing for tailored product offerings and improved operational efficiency.
Neobanks have also pioneered innovative revenue streams. Unlike traditional banks heavily reliant on interest income, they generate revenue through various channels, including interchange fees and partnerships.
Finally, many neobanks embrace open banking principles. This collaborative approach allows third-party developers to create new financial products and services that complement the neobank’s offerings. By collaborating with third-party developers, neobanks create additional value and broaden their reach.
The Global Neobanking Innovators
Advapay expected the total number of neobanks users to increase to 3.6 billion worldwide by 2024. Moreover, they spread relatively evenly across the main regions. For example, neobanks in North America, LATAM, APAC, and the UK each now accumulate a total price tag of 50 billion dollars or more per region.
Revolut, a UK-based neobank, stands as a leading example of digital banking innovation. Expanding its services to over 30 countries, Revolut offers multi-currency accounts, currency exchange, stock trading, and insurance.
The neobank employs various innovative business models including API integration, transaction fees, credit card services, high-yield savings, and certificates of deposit. Revolut’s software as a service (SaaS) approach enhances flexibility, scalability, and rapid product development.
Beyond Revolut, Nubank from Latin America showcases innovation through robust security features, diverse financial products, and blockchain-based loyalty programs. Meanwhile, WeBank in China excels in digital lending, mobile payments, and alternative credit scoring.
Future Prospects
The neobanking industry is rapidly evolving, with 278 neobanks operating globally as of March 2023. This intense competition forces neobanks to continuously innovate to differentiate themselves.
As a result, traditional banks face increased pressure to adapt to these new market dynamics. Neobanks have the potential to drive financial inclusion, foster creativity, prioritise customer needs, and expand globally.
Looking ahead, neobanks can expect a surge in competitors. This will force incumbent banks to either adapt their strategies to defend their market share or become digital attackers themselves to stay competitive in the evolving market.
With competition growing and attention spans shrinking, innovative product launches aren’t something neobanks should do once. Instead, creating agile solutions that are in tune with current consumer needs must be an essential part of their growth strategy.
Technological innovation is disrupting traditional business models, and customers now expect faster, more convenient service. Personalisation is crucial, with customers…
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Technological innovation is disrupting traditional business models, and customers now expect faster, more convenient service. Personalisation is crucial, with customers wanting insurance tailored to their specific needs. Enter InsurTech.
Digital transformation is a must for insurance companies. Early adopters reap benefits, while others risk falling behind. We explore five key benefits of digital transformation in insurance, highlighting strong reasons for companies to embrace the InsurTech revolution.
Digital transformation helps businesses improve workflows and empowers employees to work more efficiently and effectively. Adopting a digital culture can significantly cut down on time spent on tasks, eliminate manual processes, and introduce new features. Even basic automation of important steps can lead to substantial savings on overhead costs.
Research by the Harvard Business Review shows that over 89 percent of large companies worldwide are already implementing digital transformation initiatives, with projections of a 31 percent increase in revenue and a 25 percent reduction in costs.
An example of how digital transformation fosters innovation is the collaboration between Fingent and the California law firm Sapra & Navarra. Together, they developed Ambit, an artificial intelligence (AI) tool that streamlines workers’ compensation claims management. By using AI, Ambit speeds up the claims process and reduces associated costs.
Benefit 2: Enhanced Customer Experience
Improving customer experience and engagement is a key benefit of digital transformation. Data analysis helps insurers understand their customers better. This allows them to develop personalised products and improve customer service.
An example is XYZ Insurance. The company created a digital sales app for agents, launched an online e-commerce platform, and built a self-service app for customers on smartphones. This digital ecosystem streamlines the entire insurance process, from getting quotes and completing applications to uploading documents and making payments.
Benefit 3: Data-Driven Insights
For underwriting, digital transformation means unlocking new ways to analyse data and make decisions. AI is a key player in this change. AI can analyse massive amounts of data using algorithms and predictive analytics. This helps uncover patterns and connections that human underwriters might miss. These insights benefit both insurance companies and policyholders.
AI helps assess risk more accurately. By pinpointing potential problems with greater precision, AI allows underwriters to set appropriate premiums. This reduces the risk of setting premiums too low or too high, leading to a healthier insurance portfolio for the company.
Benefit 4: Increased Agility
Predictive analytics is a powerful tool at the core of digital transformation. It uses complex algorithms and machine learning to analyse massive datasets. This helps insurers uncover valuable patterns and trends to make better decisions in various areas of their business.
One key benefit is risk mitigation. Analysing historical data and current trends lets insurers better assess risk profiles and price policies more accurately. Additionally, predictive modelling helps them simulate future scenarios, such as a major weather event’s impact on their business. This foresight enables proactive adjustments and risk-reduction strategies.
Benefit 5: Improved Compliance
Regulatory technology (RegTech) helps insurance companies navigate compliance challenges. It provides smarter ways to analyse information. This allows them to see potential risks across a much larger dataset than ever before.
Insurers used to check a small sample of policies to find problems with sales or pricing. This took a lot of resources and only covered a tiny fraction of customers. RegTech, combined with advanced data analysis, can streamline this process. By looking at all their policies, insurers can identify potential issues more efficiently.
Conclusion
The traditional insurance industry faces pressure to keep pace with a rapidly changing digital world. Rising customer demands and innovative competitors threaten their position, but digital transformation offers a powerful set of tools to overcome these challenges and unlock new growth.
Digital technologies can streamline internal processes, making them more efficient and cost-effective. This translates to a smoother experience for customers with faster processing times and simpler interactions. Additionally, digital tools let insurers analyse data more effectively and improve risk management and regulatory compliance.
By investing in innovation, insurers can develop new products and services that meet evolving customer needs. This proactive approach strengthens their market position and lays the foundation for long-term, sustainable growth.
Nada Ali Redha, Founder of PLIM Finance, on flexibility, consolidation, and the evolution of digital payments
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Embedded finance, the integration of financial services into non-financial platforms, is no longer a niche trend. It has become a defining characteristic of modern commerce. Consumers are increasingly drawn to the convenience and flexibility it offers, leading businesses across industries to adopt embedded finance solutions. The rise of these platforms, combined with shifting consumer expectations, presents both opportunities and challenges for traditional banks and fintech players.
Customer-centricity with Embedded Finance
At the heart of this transformation is a desire for simplicity. Consumers are opting for solutions that allow them to bypass the inconvenient processes associated with traditional banking. They are avoiding excessive paperwork, account opening delays, or hidden charges. Instead, they are drawn to platforms that offer seamless integration of services. Enabling them to make purchases, manage their finances, and access credit without ever leaving the ecosystem of their preferred brands.
E-commerce giants like Amazon have been quick to recognise this trend, embedding financial services directly into their platforms. This allows them to offer a one-stop solution that caters to all their customers’ needs, from browsing products to making payments or accessing credit options. The appeal is clear: customers stay within the same digital environment, enjoying a frictionless experience that saves them time and effort. This development, however, raises the stakes for standalone payment providers like PayPal and Klarna, as they are increasingly excluded from these in-house ecosystems.
Shifting financial services
For legacy banking providers, this shift presents a major challenge. Traditionally, these institutions have relied on their extensive networks, trusted brands, and regulatory backing to maintain a dominant position in the financial landscape. But as businesses integrate financial services directly into their offerings, banks are no longer the first point of contact for many consumers. A growing number of businesses are bypassing traditional banks altogether, embedding payment and lending options at the point of purchase or within their own apps. This trend highlights a fundamental shift in how consumers interact with financial services, often without even realising it.
In response, payment providers and fintechs must find innovative ways to remain competitive. One potential strategy is for these companies to develop their own marketplaces. By creating an ecosystem of services that includes not only payments, providers can capture more customer loyalty and engagement. This would enable fintechs and payment solution companies to offer a holistic, embedded finance solution. Rather than relying on external platforms or partnerships.
PLIM Finance
A case study for this would be PLIM Finance’s marketplace, which offers a highly customised experience. PLIM connects consumers with their desired services in a way that prioritises personalisation and convenience. As a platform built with user-centric design at its core, it allows consumers to search for treatments based on location, type, and specific clinics, giving them the ability to make informed decisions effortlessly. This is achieved through a search engine that filters results to suit each individual’s exact needs. Enhancing the user experience by eliminating irrelevant options for a streamlined experience. PLIM’s marketplace also encourages partners to create detailed profiles, showcasing their services, reviews, and credentials, which enhances visibility and attracts new clients. By fostering a direct connection between consumers and clinics, PLIM’s marketplace stands out in the embedded finance space. Ensuring a seamless, personalised customer experience that is simple and easy-to-use.
Strategic partnerships
Another potential strategy is deeper collaboration with external partners. By integrating their services into a wide range of businesses, payment providers can continue to capture market share. Without needing to create their own consumer-facing platforms. Strategic partnerships can expand the reach of these payment solutions, allowing them to tap into user bases they might otherwise miss. For example, smaller or mid-sized businesses may benefit from embedding a well-established payment solution into their website or app rather than developing their own in-house system.
However, not every provider will be able to meet the demands of this rapidly changing landscape on their own. As the embedded finance space continues to mature, industry consolidation becomes a very real possibility. Larger players may acquire smaller fintech companies. Integrating their innovative solutions into existing platforms can offer a more comprehensive suite of services. This would mirror the broader trend in the tech sector, where big players often absorb disruptive startups to maintain their competitive edge. Consolidation offers both challenges and opportunities. While smaller companies risk losing their independence, they also gain access to the resources and customer base of their new parent companies.
Evolving financial landscape
This evolving landscape is also occurring at a time of significant economic uncertainty. Financial stress often pushes consumers to reevaluate their spending and financial habits, with many looking for greater control over their cash flows. This is where embedded finance stands out. The flexibility it offers allows consumers to manage their money more efficiently, whether through payment deferrals, buy-now-pay-later (BNPL) options, or quick access to credit. These features are particularly valuable when budgets are tight or income is uncertain.
Moreover, embedded finance solutions empower consumers by giving them more control over how they manage their transactions. For example, BNPL options give individuals the freedom to split payments over time, making larger purchases easier to manage without the immediate financial burden. This level of control resonates with modern consumers, who increasingly seek transparent, flexible financial solutions that can be tailored to their personal circumstances.
For businesses, this presents an opportunity to strengthen customer loyalty by offering embedded finance services that align with consumer needs. By removing barriers to purchasing, businesses can enhance the customer experience, which, in turn, can drive increased sales and long-term engagement. As a result, companies that adopt embedded finance solutions can gain a competitive edge, particularly in sectors like e-commerce, where convenience is king.
Conclusion
In conclusion, embedded finance represents a fundamental shift in how consumers interact with financial services. As more businesses adopt these solutions, traditional banking institutions and standalone payment providers will need to adapt or risk being left behind. Whether through developing their own marketplaces, forging deeper collaborations, or pursuing mergers and acquisitions, the financial services landscape is poised for continued transformation. Embedded finance, with its focus on flexibility and convenience, is likely to become an integral part of the future of commerce—benefiting both consumers and businesses alike.
Digital banking offers increased convenience and accessibility. However, this growth also exposes banks to heightened cybersecurity risks. Protecting data and…
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Digital banking offers increased convenience and accessibility. However, this growth also exposes banks to heightened cybersecurity risks. Protecting data and information is crucial to maintaining customer trust and preventing financial loss.
Cybercrime poses a significant threat to the digital banking industry. According to Cybercrime Magazine, cybercrime costs will increase by 15% over the next five years and reach $10.5 trillion by 2025. These attacks target sensitive information and funds, causing substantial damage to banks.
To mitigate these risks, banks must implement robust cybersecurity measures to safeguard digital systems and data.
1. Strong Authentication
The Payment Services Directive (PSD2) mandates strong customer authentication (SCA) to reduce fraud and enhance online payment security. This directive imposes specific requirements on market participants to meet new obligations. The European Banking Authority (EBA) developed regulatory technical standards (RTS) based on the Commission’s authority under PSD2.
The RTS aims to protect consumers and create a level playing field within the evolving financial technology market. To achieve this, the RTS establishes security measures for payment service providers — including banks and other financial institutions — when processing payments or offering payment-related services.
2. Encryption
Unencrypted data is a common cyber threat. Hackers can easily access this data type and give severe consequences for banks. According to Statista, the average cost of a data breach worldwide is $4.45 million dollars. However, data breaches not only cause substantial financial loss for recovery and ransom payments but also damage a bank’s reputation.
To prevent these issues, all digital banking data must be encrypted. This safeguards information and makes it difficult for cybercriminals to access even if stolen. Encryption transforms data into a coded format that requires a specific key to decipher. Only individuals with the correct key can view the original data.
Encryption involves using an algorithm and a key to convert plain data into encrypted data. The original data can only be recovered by decrypting the ciphertext with the correct key.
3. Regular Cybersecurity Audit
A security audit is a thorough examination of an organisation’s IT infrastructure. This process verifies the effectiveness of security policies and procedures. Security audits assess how well an institution’s cybersecurity program operates. This includes reviewing policies, testing controls, and checking compliance with industry standards and regulations.
Banks and financial institutions face increasingly complex cyber threats. Regular security audits help identify vulnerabilities in systems. By discovering weaknesses, banks can strengthen defences with firewalls, antivirus, and antimalware software. A cybersecurity audit should be conducted by an independent expert to ensure objectivity.
4. Employee Training
The World Economic Forum reports that 95% of cyberattacks involve human error. This means hackers often exploit employee mistakes. They use tactics like phishing to deceive employees into revealing sensitive information. This can lead to data breaches and financial loss. For example, employees might click on malicious links, disclose confidential data, or leave devices unattended.
Therefore, bank employees must have training to recognize that cyberattacks are a constant threat. Moreover, the consequences of a breach can be severe for employees, customers, and the bank’s reputation. Cybercriminals operate in a lucrative industry, for that reason, it is imperative to equip employees with the knowledge to safeguard against these threats.
5. Incident Response Planning
An incident response plan is a formal document approved by bank leadership to guide the organisation before, during, and after a potential or confirmed security incident. The plan aims to reduce the impact of security events, limiting operational, financial, and reputational damage.
A successful incident response plan should be established before a security attack occurs and assigned to specific team members. IBM research shows companies with well-developed and tested response plans save an average of $2.66 million compared to those without such protocols.
To create an effective incident response plan, banks can reference established frameworks. For specific incident handling steps, The National Institute of Standards and Technology’s SP-800-61 and SANS’s Incident Handlers Handbook provide detailed blueprints. Aligning the incident response plan with these resources ensures a focused and effective approach to managing cybersecurity incidents.
Importance of Cybersecurity Measures
The increasing reliance on digital platforms exposes individuals and organisations to growing cybersecurity risks. Malicious actors exploit security weaknesses to steal personal information and compromise digital assets. Forbes reported a staggering increase in cyberattacks in 2023, impacting over 343 million people, with data breaches soaring by 72 percent from 2021 to 2023. These striking figures highlight the urgent need for state-of-the-art cybersecurity in digital banking.
The 2008 global financial crisis exposed vulnerabilities in the traditional financial system. In response, blockchain technology emerged, offering a solution. …
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The 2008 global financial crisis exposed vulnerabilities in the traditional financial system. In response, blockchain technology emerged, offering a solution.
With its ability to address these weaknesses, blockchain holds significant potential to transform the banking industry. This article will explore how blockchain can be used in banking and the benefits it offers for a more secure and efficient financial industry.
Introduction to Blockchain in Banking
Blockchain technology is changing the way data is stored and shared. It’s a digital record spread across a network of computers. This system uses cryptography for security, allowing authorised participants to update the records without needing a central authority.
Once information is added to the blockchain, it’s impossible to alter or erase. To add new entries, network participants verify transactions using complex algorithms.
Traditionally, banks and payment systems rely on intermediaries to facilitate transactions. However, blockchain’s distributed network allows for direct consensus and verification between participants, streamlining the entire process.
Blockchain Case Study: Payment Processing
Central and commercial banks around the world are exploring blockchain for payment processing. This interest extends to cross-border payments, traditionally dominated by companies like SWIFT and Western Union.
Several successful blockchain implementations in banking serve as case studies. In 2015, Commonwealth Bank of Australia (CBA) teamed up with Ripple, a fintech company specialising in blockchain solutions for international payments. Their goal was to build a system using blockchain to speed up settlement processes between CBA’s different branches.
Westpac, another major Australian bank, followed suit in 2016 by partnering with Ripple to create a cost-effective system for cross-border payments using blockchain.
Blockchain Case Study: Trade Finance
Trade finance, handling all aspects of domestic and international commerce, relies heavily on banks to facilitate transactions. Traditionally, this involves managing risk, providing credit, and allowing both exporters and importers to participate. However, the system often suffers from slow and outdated paper-based documentation.
Recognising this need for improvement, leading institutions like Standard Chartered and HSBC have joined groups exploring blockchain technology for trade finance. One example is Voltron, a platform designed by R3 and CryptoBLK to digitise letters of credit.
Pilot projects across 14 countries with over 50 companies and banks participating yielded notable results, reducing letter of credit processing time from five days to less than 24 hours. Building on this success, Voltron rebranded as Contour in 2020, launching a digital trade finance network with R3 and other banks as supporters.
Blockchain Case Study: KYC
Know Your Customer (KYC) processes are a slow hurdle in banking as they can take weeks to complete. The system also suffers from wasted effort, as each bank asks new clients for the same information.
This inefficiency creates high costs for banks. Compliance burdens are heavy, and penalties for not following the rules are significant. The constant changes in regulations make it difficult for banks to stay compliant.
Chris Huls of Rabobank proposed a solution—storing KYC information on a blockchain. This secure and transparent technology acts as a shared platform for customer data. Once a bank completes KYC, a summary can be uploaded to the blockchain. Authorised institutions can then access this information, eliminating repetitive checks.
Benefits Realised
Blockchain technology offers a new way to store and manage data. Unlike traditional databases, blockchain spreads data across a network of computers and creates a public record that’s difficult to tamper with.
Any attempt to change a record in one place would be caught by other computers in the network. This system eliminates the possibility of any single entity manipulating information.
Furthermore, blockchain promotes transparency. Transactions are visible to anyone who wants to see them, with tools allowing real-time tracking. This can lead to faster processing times for consumers, potentially reducing transaction completion to minutes, regardless of location or time.
Inter-bank transfers can also benefit from blockchain’s efficiency and security. Large sums involved in these transactions come with risk and cost during the current multi-day settlement process.
Lessons Learned and Future Outlook
These case studies demonstrate the technology’s ability to streamline transactions, reduce friction, and enhance security. The technology also promotes transparency and immutability of data.
However, a major challenge remains—ensuring customer data privacy. Public blockchains, with their inherent openness, create obstacles. Permissioned blockchains with strong encryption offer some solutions, but cybersecurity concerns still exist. Building trust and widespread adoption requires addressing these data privacy issues.
Regulatory uncertainty presents another hurdle. Currently, there’s no central authority overseeing and regulating blockchain protocols. The need for some form of governance is apparent, but careful consideration will need to be given to the distribution of power within such a system.
Our cover star, EY’s Global Chief Data Officer Marco Vernocchi, tells Interface why data is a “team sport” and reveals…
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Our cover star, EY’s Global Chief Data Officer Marco Vernocchi, tells Interface why data is a “team sport” and reveals the transformation journey towards realising its potential for one of the world’s largest professional services organisations.
Welcome to the latest issue of Interface magazine!
Global Chief Data Officer, Marco Vernocchi, reflects on the data transformation journey at one of the world’s largest professional services networks.
“Data is pervasive, it’s everywhere and nowhere at the same time. It’s not a physical asset, but it’s a part of every business activity every day. I joined EY in 2019 as the first Global Chief Data Officer. Our vision was to recognise data as a strategic competitive asset for the organisation. Through the efforts of leadership and the Data Office team, we’ve elevated data from a commodity utility to an asset. Our formal data strategy defined with clarity the purpose, scope, goals and timeline of how we manage data across EY. Bringing data to the centre of what we do has created a competitive asset that is transforming the way we work.”
PivotalEdge Capital
Sid Ghatak, Founder & CEO of asset management firm PivotalEdge Capital, spoked to us about the pioneering use of “data-centric AI” for trading models capable of solving the problems of trust and cost.
“I’ve always advocated data-driven decision-making throughout my career,” says Ghatak. “I knew when I started an asset management firm that it needed to be data-centric AI from the very beginning. A few early missteps in my career taught me the importance of having a stable and reliable flow of data in production systems and that became a criterion.”
LSC Communications
Piotr Topor, Director of Information Security & Governance at LSC Communications, discusses tackling the cyber skills shortage, AI, and bringing together the business and IT to create a cyber-conscious culture at a global leader in print and digital media solutions.
Topor tells Interface: “The main challenge we’re dealing with is overcoming the disconnect between cybersecurity and business goals.”
América Televisión
Interface meets again with Jose Hernandez, Chief Digital Officer at América Televisión, who reveals how the company is embracing new business models, and maintaining market leadership in Peru.
“Launching our FAST channel represents a pivotal step in diversifying our content delivery and monetisation strategies. Furthermore, aligning us with global trends while catering to the changing viewing habits of our audience,” says Hernandez.
Also in this issue of Interface, we hear from eflow about new approaches to Regtech; get the lowdown on bridging the AI skills gap from CI&T; and GCX on the best ways to navigate changing cybersecurity regulations.
Financial institutions are increasingly turning to artificial intelligence (AI) to gain a competitive edge. AI tools streamline operations, improve customer…
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Financial institutions are increasingly turning to artificial intelligence (AI) to gain a competitive edge. AI tools streamline operations, improve customer support, and automate processes, making banks more efficient and customer-focused.
Research by McKinsey shows that over 20 percent of an organisation’s digital budget goes towards AI. The study links significant investments in AI to a 10-20 percent increase in sales. AI will play a central role in boosting efficiency, customer service, and overall banking productivity.
Introduction to AI in Personalised Banking
Delivering personalised experiences is crucial for customer satisfaction and retention. AI helps banks achieve this by collecting and analysing customer data. This data is then used to create recommendations, product offerings, and even financial advice tailored to each customer’s needs.
AI tools can optimise workflows through a technique called prescriptive personalisation, using past data to predict future behaviour. Real-time personalisation takes this further, incorporating current information alongside historical data.
This allows banks to deliver highly customised virtual assistants and real-time recommendations powered by natural language processing (NLP) models. These AI-powered assistants not only build trust and user engagement but also simplify interactions with the bank.
Tool 1: Predictive Analytics
Predictive analytics, powered by AI tools, unlock a new level of customer personalisation in banking. These tools analyse data to uncover hidden patterns and trends that traditional methods might miss. This knowledge reveals sales opportunities, possibilities for cross-selling, and ways to improve efficiency.
Predictive analytics use past data to forecast customer behaviour and market trends. This foresight allows banks to tailor marketing strategies and sales approaches to meet changing customer needs and capitalise on emerging opportunities.
Tool 2: Chatbots and Virtual Assistants
One key advantage of chatbots is their constant availability. This is especially helpful for customers who need assistance outside of regular operating hours.
AI chatbots learn from every interaction, improving their ability to understand and meet individual customer needs. By integrating chatbots into banking apps, banks can provide personalised banking experiences and recommend financial products and services that fit a customer’s specific situation.
Erica, a virtual assistant developed by Bank of America, handles tasks like managing credit card debt and updating security information. With over 50 million requests handled in 2019 alone, Erica demonstrates the potential of chatbots as efficient assistants for customers.
Tool 3: Recommendation Engines
Banks use AI tools to analyse vast amounts of customer data, including purchases, browsing habits, and background information. This deep understanding helps banks recommend products that truly fit each customer’s needs.
These personalised recommendations extend beyond credit card suggestions. AI can identify potential investments or loans that align with a customer’s financial goals. By providing customers with relevant information, banks allow them to make informed financial decisions.
Tool 4: Sentiment Analysis with AI
AI sentiment analysis translates written text into valuable insights. AI uses NLP to understand emotions and opinions in written communication. By examining things like customer feedback, emails, and social media conversations, banks gain a much clearer picture of customer sentiment.
Tool 5: Voice Recognition
AI-powered voice assistants offer a convenient way to handle everyday banking tasks. From checking balances to paying bills, all a customer needs are simple voice commands.
These assistants use NLP to understand customer requests and respond accurately. Voice authentication adds another layer of security by verifying customer identity during transactions.
Tool 6: Process Automation
Robotic Process Automation (RPA) automates repetitive tasks, boosting operational efficiency. It tackles up to 80 percent of routine work and frees up workers for more valuable tasks requiring human judgement.
RPA bots can handle tasks like issuing and scheduling invoices, reviewing payments, securing billing, and streamlining collections – all at once. NLP empowers these bots to extract information from documents, simplifying application processing and decision-making.
Tool 7: Facial Recognition with AI
Facial recognition helps banks verify customer identities during tasks like opening accounts, accessing information, and making transactions. Compared to traditional passwords, facial recognition offers stronger security and greater convenience. It eliminates the need for remembering complex passwords or worrying about stolen credentials, making banking interactions smoother and less error-prone. This technology also helps prevent fraud by identifying attempts to impersonate real customers.
Capital One AI Case Study
Capital One demonstrates how AI can personalise banking. Their AI assistant uses NLP to understand customer questions and provide immediate answers. Capital One also incorporates AI into fraud detection. Machine learning and predictive analytics help pinpoint suspicious credit card activity to strengthen security measures.
Conclusion
AI tools offer a significant opportunity for banks to improve customer experiences and achieve long-term success. By personalising banking services with AI, banks can better meet individual customer needs. This leads to higher satisfaction and loyalty, which enhances the bank/customer relationship.
AI has the potential for an even greater impact. As banks integrate more advanced AI capabilities, they can create even more engaging and personalised interactions. This focus on ‘hyper-personalisation’ could be the next big step for financial institutions to set them apart in a competitive market.
Neobanking is different from traditional banking which is operated through physical intermediaries. By implementing an interface and various advanced features,…
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Neobanking is different from traditional banking which is operated through physical intermediaries.
By implementing an interface and various advanced features, this type of bank can change people’s views on managing finances by keeping up with rapid technological advances.
In the US, many people have been underserved by traditional banks, facing high fees and a lack of branches. To help, some companies offered prepaid debit cards with checks for bill payments, but these were limited.
The 2010s fintech revolution introduced mobile-first banking through neobank apps. These apps allowed quick account signups with no minimum balance or overdraft fees and offered small, interest-free loans to keep people away from payday lenders.
This model attracted millions of customers, with neobanks profiting from higher interchange fees. However, they also faced challenges such as higher fraud and disputes, impacting their profitability.
In this article, we will discuss the five main benefits of neobanks: convenience, lower fees, a better user experience, faster transactions, and innovative financial products. These advantages will explain why customers are switching to this type of bank.
Convenience
One of the main advantages of neobanks is their ease of access. Customers do not need to visit the bank physically and can carry out all banking transactions anytime and anywhere.
This convenience extends to all processes, from opening an account to transferring money to the destination account. These tasks can be completed in minutes via a mobile phone.
Lower Fees
Apart from accessibility advantages, neobanking offers a competitive fee structure with relatively lower admin fees than traditional banks. This is because traditional banks incur overhead costs to maintain physical branches, while neobanks do not.
As a result, neobanks can pass on savings to customers through lower service rates. Additionally, neobanks save on costs by not requiring workers to operate physical branches.
Enhanced User Experience
Neobanks prioritise user experience by designing intuitive interfaces—making banking straightforward and accessible. They also offer personalised financial insights for each customer.
Neobanking’s mobile applications simplify financial management with budget tools and real-time transaction notifications. These features empower consumers to make informed financial decisions and maintain better control over their finances.
Faster Transactions
Neobanking offers convenience and lower costs while speeding up transactions with advanced technology. This allows users to manage their finances in real time.
For example, customers can quickly transfer money between local and international banks, thanks to the efficient systems deployed.
Innovative Financial Products
Not only are neobanks useful for fast transactions, but they also provide innovative financial products. One such innovation is automatic investment, which allows users to allocate and manage portfolios via a mobile app.
Additionally, neobanks offer unsecured loan products with a quick and transparent application process. This approach not only provides efficiency but also aligns with consumer behaviour in interacting with financial services.
Conclusion
The advantages of neobanking go beyond convenience and cost savings; they also include a consumer-oriented banking approach. By leveraging powerful digital innovations, neobanks offer an accessible and customisable banking platform.
This approach enhances the consumer experience with more innovative financial products and alternative solutions. Neobanking also implements financial transparency policies, allowing consumers to explore and benefit from various banking options.
In the future, neobanks may have a significant opportunity to attract high-value customers who manage large deposits. A mobile app could integrate all their accounts from different banks into one, simplifying deposit management. Additionally, neobanks could use AI to deliver personalised customer service and a premium experience.
Fuelled by the Covid-19 pandemic and a projected market size of $166.4 billion by 2030, InsurTech companies are revolutionising the…
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Fuelled by the Covid-19 pandemic and a projected market size of $166.4 billion by 2030, InsurTech companies are revolutionising the insurance industry.
These firms offer digital alternatives in a typically slow-to-change industry. Furthermore, their innovative solutions have empowered traditional insurers to accelerate digitalisation and streamline processes.
These are the leading firms that have helped this traditional field both adapt and start rapidly catching up to efficiency trends associated with more dynamic industries.
Introduction to InsurTech Innovation
The insurance industry is undergoing a transformative shift fuelled by InsurTech.
Innovating technologies for insurers is about finding novel solutions to longstanding challenges and harnessing emerging trends to shape the future of the industry.
Insurance leaders are almost unanimous in recognising that innovation as not just important, but critical to future success. Moreover, insurers who fail to embrace InsurTech advances, and the wave of digital insurance products and opportunities they represent, risk falling behind in an increasingly competitive and dynamic industry.
Oscar Health
Oscar Health built itself from the ground up with a tech-first approach focused on member service. This unique strategy aims to make healthcare more accessible and affordable for all Americans.
Oscar’s commitment to exceptional service is reflected in its sky-high Net Promoter Score (NPS) of 50 and a near-perfect 97% member satisfaction rate for virtual care. With a presence in over 577 counties across 20 states, Oscar Health’s impact on the InsuTech industry is undeniable.
NEXT Insurance
A leader in small business insurance, NEXT Insurance offers easy-to-understand, digital coverage designed specifically for the self-employed. Also, their recently launched Copilot tool empowers agents to serve micro-businesses efficiently. Copilot streamlines the process for both sides. Business owners can get quotes and bind coverage online instantly, while agents gain a simplified workflow to boost revenue.
Vouch
Since 2018, Vouch has emerged as a prominent force in the InsurTech space by transforming the way business insurance serves high-growth companies. Vouch recently launched AI Insurance, a groundbreaking product specifically designed to mitigate risks for AI startups in this rapidly developing field.
Hippo
Hippo stands out for its proactive approach to homeowners insurance. Partnering with homeowners to implement smart home devices and personalised safety recommendations, Hippo prioritises preventing hazards before they occur. This commitment has secured their position as a top InsurTech firm, protecting over 200,000 homes across most US states.
Bestow
Bestow prioritises simplifying insurance and boosting financial security for everyone. It believes the process shouldn’t be daunting, so they leverage cutting-edge technology and data throughout the entire value chain to streamline everything. Furthermore, its commitment to innovation is evident in the recent launch of permanent life insurance and the addition of AI features to its underwriting workbench.
QuanTemplate
Founded in 2011, QuanTemplate uses machine learning and big data to empower businesses through digital transformation. Its core offering, a data integration, automation, and analytics platform, equips insurance professionals with the tools to unlock valuable insights and gain a deeper understanding of market dynamics.
Dinghy
Dinghy caters to the changing insurance needs of freelancers and businesses with its innovative pay-as-you-go model and focus on online and mobile accessibility.
This focus on accessibility is further enhanced through its partnership with ARAG, providing ‘Freelance Assist’. This is a unique package combining Dinghy’s flexible insurance with ARAG’s online legal resources tailored for freelance professionals.
CoVi Analytics
CoVi Analytics tackles both regulatory compliance and operational efficiency for insurers. Its AI-powered CORE platform automates complex reporting for evolving regulations, while the app suite featuring Policy 2.0 simplifies risk incident capture and boosts operational efficiency.
ManyPets
ManyPets, formerly known as Bought By Many, has emerged as a leading pet insurance provider by taking a unique approach to customer needs.
Born from a focus on analysing social media commentary, ManyPets uses customer feedback to shape its insurance policies. This customer-centric approach extends to its technology focus, making ManyPets the first pet insurance company to offer form-free online claims.
Shift Technology
Shift Technology provides a suite of AI-powered Software-as-a-Service (SaaS) solutions specifically designed to address the insurance industry’s needs. Its focus lies in fraud detection, empowering insurers with robust protection against financial losses, reputational damage, and cyber threats.
Key Factors for InsurTech Success
Several key factors have fuelled the recent surge in InsurTech innovation. Digitisation plays a crucial role by speeding up information processing, leading to cost reductions, efficiency gains, and the development of new, customer-centric products.
Additionally, personalisation is another key factor, enabling insurers to tailor services to individual needs and preferences. They consider factors like age, location, and lifestyle before providing quotes. Finally, advanced analytics capabilities provide valuable insights into consumer behaviour, allowing insurers to better target customers, while also offering real-time risk assessment data.
The automotive industry is transforming vehicles into mobile banking centres with the introduction of embedded finance. This allows drivers to…
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The automotive industry is transforming vehicles into mobile banking centres with the introduction of embedded finance. This allows drivers to seamlessly pay for fuel, tolls, parking, and electric car charges without leaving their cars.
Embedded banking or embedded finance is a technology that is used on many websites for easy transactions. It integrates financial services like payments, accounts, or lending into non-financial products or services. That technology can also be brought into your car.
It turns banking into a part of driving, creating an efficient experience for drivers. With this new system, drivers can easily manage all of these payments automatically making for seamless transactions.
Benefits of Using Embedded Banking
Built-in banking does more than just make payments easier. It can also help drivers choose the right car based on how they drive. For example, if someone often drives long distances, the system might suggest a fuel-efficient car. If another driver drives mostly around town, a smaller car might be recommended. This intelligent system can make buying a new car easier and more personal.
Insurance companies can also benefit from this technology. They can see how people drive and adjust their premiums accordingly. For example, a cheaper insurance premium may be given to a driver with a clean driving record. On the other hand, a driver who has a history of speeding or traffic accidents may get a more expensive premium. This makes insurance fairer and more personalised to each driver.
Car companies that are the first to add built-in banking will have a big advantage. Buyers will want to buy cars with this new and convenient feature, giving these companies an edge. In addition, this technology allows car companies and banks to increase revenue. They could offer special deals or services to drivers who make frequent use of the in-car payment system.
Enhanced Financing Options
Embedded finance simplifies vehicle financing by integrating financial services into the car-buying process. Furthermore, customers can apply for and manage loans directly through their vehicle’s interface, with loan options personalised to their financial profile and driving habits. This innovation improves user experience by making payments, financing, and insurance easier and more secure.
Embedded banking turns cars into mobile banking hubs, leveraging data from modern vehicles to customise financial products. Moreover, insurance premiums can adjust based on driving behaviour, financing can match vehicle usage, and payments for charging or tolls can be automated, enhancing efficiency and customer satisfaction.
Seamless Transactions
Embedded finance simplifies transactions by allowing drivers to pay for services like fuel, tolls, and parking directly through their vehicle’s system. This integration eliminates the need for physical payment methods, making the driving experience smoother and more convenient.
In the automotive industry, embedded finance also transforms how customers handle car purchases and financing. By integrating banking, lending, and insurance services into the vehicle’s interface, automotive companies can offer a more seamless and convenient experience. Using APIs from specialised providers, this approach opens new revenue streams and enhances overall customer satisfaction.
Increased Sales
Automotive companies that adopt embedded finance technologies can experience a significant boost in sales and revenue. By offering integrated financial services, car manufacturers can attract customers looking for modern, convenient solutions.
According to McKinsey, embedded finance can boost sales by increasing conversions, average purchase amounts, and customer loyalty. Research by RBC Capital Markets shows that buy now, pay later (BNPL) options can raise checkout conversion rates by 20-30 percent and lead to higher spending per transaction.
A major global retailer has found that customers using their embedded lending services spend 20 percent more. However, the solution must be easy to use; otherwise, abandonment rates can be high.
The Collaboration of Industries for Embedded Banking
This new technology also encourages teamwork between different industries. For it to work well, car companies, technology companies, and banks need to work closely together. They need to create strong security measures to protect users from potential online threats. This collaboration is important to ensure that the system is secure and reliable.
By connecting cars and financial services, embedded banking will accelerate innovation. It will help create a future where driving and banking are connected. This will lead to a more efficient and customer-friendly world.
New Technology Leaders
Mercedes-Benz is already leading the way with this technology through its partnership with Mastercard. In Germany, Mercedes-Benz customers can start the fueling process from their car and pay with their fingerprints. This is the first time in-car payments have been used at gas stations.
When a driver arrives at a connected service station, the Mercedes Me Fuel & Pay service starts automatically. The driver selects the gas pump, and the system calculates the cost. Payment is made with a fingerprint. After refuelling, the invoice appears on the screen and is emailed to the driver, allowing them to leave without visiting the checkout.
Future Prospects
This new technology will help both the automotive and banking industries. It makes life easier for drivers and promises to change the way we drive by enabling easy payments on the go.
Once all car companies start using built-in banking, the current system of driving will change forever. This technology will turn cars into more than just vehicles to get from one place to another; they will become smart, connected hubs that make life easier for drivers. The future of driving begins with the implementation of embedded finance.
WatchGuard’s Threat Lab cybersecurity research team forecast headline-stealing hacks involving LLMs, AI-based voice chatbots and VR/MR headsets. They also assess…
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WatchGuard’s Threat Lab cybersecurity research team forecast headline-stealing hacks involving LLMs, AI-based voice chatbots and VR/MR headsets. They also assess the impact of the war on talent, AI spear phishing and QR codes.
Watchguard leading on Cybersecurity
WatchGuard Technologies, a global leader in unified cybersecurity, offers an annual batch of predictions covering the most prominent attacks and information security trends that the WatchGuard Threat Lab research team believes will emerge each year. This year, these include malicious prompt engineering tricks targeting large language models (LLMs), managed service providers (MSPs) doubling down on unified security platforms with heavy automation, ‘Vishers’ scaling their malicious operations with AI-based voice chatbots, hacks on modern VR/MR headsets, and more…
“Every new technology trend opens up new attack vectors for cybercriminals,” said Corey Nachreiner, chief security officer at WatchGuard Technologies. “In 2024, the emerging threats targeting companies and individuals will be even more intense, complicated, and difficult to manage. Therefore, with an ongoing cybersecurity skills shortage, the need for MSPs, unified security, and automated platforms to bolster cybersecurity and protect organisations from the ever-evolving threat landscape have never been greater.”
Cybersecurity predictions
The following is a summary of the WatchGuard Threat Lab team’s top cybersecurity predictions for 2024:
Prompt Engineering Tricks Large Language Models (LLMs)
Companies and individuals are experimenting with LLMs to increase operational efficiency. However, threat actors are learning how to exploit LLMs for their own malicious purposes as well. During 2024, the WatchGuard Threat Lab predicts that a smart prompt engineer ‒ whether a criminal attacker or researcher ‒ will crack the code and manipulate an LLM into leaking private data.
MSPs Double Down on Security Services Via Automated Platforms
There are approximately 3.4 million open cybersecurity jobs, and fierce competition for available talent. More SMEs will turn to trusted managed service and security service providers, known as MSPs and MSSPs, to protect them in 2024. To accommodate growing demand and scarce staffing resources, MSPs and MSSPs will double down on unified cybersecurity platforms with heavy automation using artificial AI and Machine Learning.
AI Spear Phishing Tool Sales Boom on the Dark Web
Cybercriminals can already buy tools on the underground that send spam email, automatically craft convincing texts, and scrape the Internet and social media for a particular target’s information and connections. However, a lot of these tools are still manual and require attackers to target one user or group at a time. Well-formatted procedural tasks like these are perfect for automation via AI and machine learning. This makes it likely that AI-powered tools to combat cybersecurity will emerge as best sellers on the dark web in 2024.
AI-Based Vishing Takes Off in 2024
Voice over Internet Protocol (VoIP) and automation technology make it easy to mass dial thousands of numbers. Once a potential victim has been baited onto a call, it still takes a human scammer to reel them in. This system limits the scale of vishing operations. But in 2024 this could change. The combination of convincing deepfake audio and LLMs capable of carrying on conversations with unsuspecting victims will greatly increase the scale and volume of vishing calls. What’s more, they may not even require a human threat actor’s participation.
VR/MR Headsets Allow the Recreation of User Environments
Virtual and mixed reality (VR/MR) headsets are finally beginning to gain mass appeal. However, wherever new and useful technologies emerge, criminal and malicious hackers follow. In 2024, cybersecurity researchers forecast that either a researcher or malicious hacker will find a technique to gather some of the sensor data from VR/MR headsets to recreate the environment users are playing in.
Rampant QR Code Usage Results in a Headline Hack
Quick response (QR) codes provide a convenient way to follow a link with a device such as a mobile phone. They have been around for decades, but mainstream usage has exploded in recent years. Furthermore, Threat Lab cybersecurity analysts expect to see a major, headline-stealing hack in 2024 caused by an employee following a QR code to a malicious destination.
We caught up with Shachi Rai Gupta from ORO Labs to discuss the importance of orchestration in procurement.
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Simplifying procurement in smart ways is the ultimate goal for ORO Labs. Utilising the best of AI, ORO Labs aims to implement procurement orchestration across sectors, creating an experience that is simultaneously automated, augmented, and humanised.
Shachi Rai Gupta is VP Strategy at ORO Labs, with a wealth of transformation and technology experience behind her. Rai Gupta’s sharp eye on procurement has allowed her to witness the rise and fall of various trends, and understand what the sector needs as it – along with technology – evolves.
We caught up with Rai Gupta at the DPW NYC Summit back in June, a special North American version of the event. Procurement trends, especially AI and orchestration, were very much the theme of the day, prompting lively conversations amongst some of the world’s most influential procurement leaders.
Procurement as a net positive experience generator
For Rai Gupta, the trends right now are guided by the fact that procurement has more of a strategic and evolved role than ever, giving the function the opportunity to have a great impact on the enterprise bottom-line and the environment and community at large
“Procurement is morphing into a function where one of its biggest responsibilities is to be a net positive experience generator,” she explains.
“Procurement really is a service function for the whole business stakeholders. We, as procurement professionals, need to see things through the lens of the business. This includes what issues the business is trying to solve, and meeting the business where it’s at for good collaboration.
“It’s also important to make this experience as easy as possible, rather than cumbersome and time intensive. That needs to be catered and customised to the individual business segments.”
Prioritising the planet
Another area Rai Gupta is seeing talked about a lot is sustainability. This topic has, for some, been sidelined a little in favour of advanced technology. But it’s just as important as it’s always been, and it’s vital to keep the discussion alive – especially in procurement.
“More and more, companies are realising the impact they’re having on the environment,” Rai Gupta explains. “It’s an increasing priority on all our agendas. The technology is still nascent in that space, in the sense that there aren’t good ways to do benchmarking or tracking. That’s going to be an interesting space to watch out for.”
The next generation
Another hot topic of the DPW NYC Summit was the talent shortage. We at CPOstrategy discuss this topic a lot with procurement professionals, and there’s no one answer for fixing the issue.
“There’s a dearth of good digital talent,” Rai Gupta states. “The skillset you need today in procurement is very different from what we’ve had before. To be able to leverage that, to really make use of the procurement teams you have and the operational model you want, it’s a different challenge. The structure of your team is more important than ever.
“While that shortage is there, when you do have the right people in place in procurement, that’s where the department shines,” Rai Gupta adds. “That’s where procurement becomes a group of trusted advisors for the business, providing proactive opportunities. We wear a lot of hats in procurement, and we’re stepping up to a new level of evolution.”
Advanced tech for good
And, of course, AI and orchestration are terms on everyone’s lips right now – procurement included. AI is, in Rai Gupta’s words, “a solver”. Many of the blockages and challenges procurement is experiencing as it evolves can be solved, or at least aided, by AI and orchestration. “There’s so much tech out there,” Rai Gupta states. “AI is one such possibility. Every segment of procurement comes with its own risks and requires its own expertise and tool sets.
“To manage that whole ecosystem is where that orchestration comes in. There’s a real beauty in this because it’s collaborative. It makes the whole bigger than its parts.”
The growth of international trade and global mobility has fueled the demand for efficient cross-border payments solutions. Legacy systems are…
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The growth of international trade and global mobility has fueled the demand for efficient cross-border payments solutions. Legacy systems are often slow and expensive, with multiple middlemen and complicated procedures.
With its decentralised and secure nature, blockchain technology offers a compelling alternative. Furthermore, as the cross-border payment market is expected to reach $290 trillion by 2030, blockchain and digital payments are emerging as strong contenders to streamline international transactions.
Introduction to Blockchain in Cross-Border Payments
While blockchains are not designed exclusively for payments, they offer a powerful foundation for streamlining cross-border transactions. Unlike traditional banking systems restricted by national borders, blockchains are global by nature. Also, in a blockchain payment system, payers and payees use a shared network with common data formats. This enables direct transactions to and from anywhere.
Traditional card and banking networks are controlled by individual institutions. Blockchains distribute this authority. Anyone with an internet connection can participate in these permissionless networks. Moreover, this removes the control of centralised systems, making them more accessible for both merchants and customers.
Benefit 1: Speed
Traditional reliance on central authorities can slow down transaction processing. For example, depositing a check on a Friday might not show up in the recipient’s account until Monday because of limited bank hours.
Blockchain technology operates 24/7 and enables much faster settlement times. On some blockchain networks, transactions can be finalised in minutes. This efficiency is especially beneficial for cross-border payments.
Benefit 2: Cost Savings
A report by Jupiter Research shows that by 2030, banks could save over $27 billion in cross-border settlements. This efficiency comes from blockchain eliminating the need for intermediaries. Also, consumers often pay banks or notaries for verification, but blockchain removes this dependency and its fees.
Benefit 3: Security
Traditional and centralised databases use a single point of access, making them vulnerable to cyberattacks. Blockchain technology offers a stronger alternative. It distributes encrypted data across a network of interconnected computers.
This system, called a distributed ledger, makes tampering very difficult. Any change would need to be reflected across the entire network at once. Additionally, blockchain allows controlled access. Only authorised participants can see or modify specific data. This granular control significantly reduces the risk of unauthorised access and fraud.
Benefit 4: Transparency
A key strength of blockchain technology is its transparency. This comes from a fully traceable and tamper-proof transaction record. Therefore, every transaction on the blockchain is permanent and unchangeable.
Once verified by the network, it cannot be altered or deleted. This permanence applies even to attempts to modify a transaction. Moreover, hanging it would require altering every single block after it in the chain, a nearly impossible task.
Benefit 5: Improved Liquidity Management
Liquidity describes how easily you can buy or sell something without affecting the price. For digital currencies, more liquidity means steadier prices with less fluctuation.
Blockchain technology has the potential to change how companies handle liquidity. By offering real-time information on a company’s financial health and available cash, blockchain helps treasurers. They get a complete picture of the company’s cash across all entities, departments, bank accounts, and locations, accessible at any time.
Transparency from blockchain technology empowers treasurers to make more accurate cash flow forecasts. It also helps them allocate cash resources more efficiently, for example, in supply chain finance and refinancing activities.
Benefit 6: Reduced Error Rates
Unlike traditional systems where human errors can occur, blockchain uses a network of computers for verification. Thousands of computers on this network work together to confirm each transaction, making errors much less likely.
Even if one computer makes a mistake, it only affects its copy and is rejected by the rest of the network. This strong verification process creates a highly accurate record of information.
Benefit 7: Better Compliance
Financial regulations create a complex compliance challenge for institutions. Blockchain technology offers a solution with its secure, transparent, and permanent record of transactions. It simplifies compliance processes for regulators, who can monitor and audit transactions more easily.
Blockchain can also streamline customer onboarding and anti-money laundering (AML) efforts. Secure identity management using blockchain streamlines these procedures and guarantees accurate records.
Conclusion
Blockchain technology promises a future of secure, efficient, and streamlined cross-border payments. With its shared record of transactions, it significantly reduces fraud and data breaches. By removing middlemen, blockchain also allows for faster, cheaper transactions with greater transparency throughout.
Banks are adopting artificial intelligence (AI) technology to provide more personalised experiences. A study by the AI Development Company projects…
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Banks are adopting artificial intelligence (AI) technology to provide more personalised experiences. A study by the AI Development Company projects that 75 percent of financial institutions will invest $31 billion in integrating AI into their existing systems by 2025. The trend is driven by customer demand for faster and more convenient banking options.
AI excels at analysing enormous amounts of data. This lets banks find patterns and trends to personalise customer service and boost efficiency. For example, AI-powered chatbots offer 24/7 help with basic questions, freeing up customer service staff for trickier issues. AI can also analyse customer behaviour to predict their needs and suggest relevant services or support, from personalised investment options to flagging suspicious account activity.
Benefit 1: Increased Efficiency
Long wait times and impersonal interactions often leave customers frustrated with traditional bank customer service. Fortunately, AI streamlines the experience by providing quick and accurate answers. It eliminates the need to navigate complex phone menus.
AI personalises interactions and saves customers from endless button-pressing and long hold times. AI in customer service can also analyse vast amounts of customer data. The data helps banks anticipate customer needs and recommend tailored solutions, preventing problems before they arise. This results in higher customer satisfaction and a smoother banking experience.
Benefit 2: Personalisation
AI can analyse vast amounts of customer data, including purchases and browsing habits, to create detailed customer profiles. These profiles help banks recommend relevant products and services that fit individual needs.
For instance, a customer who often pays bills online might be recommended a new budgeting tool. Similarly, someone who regularly saves for travel could receive information about travel insurance or currency exchange. These personalised suggestions can come through various channels, like the bank’s website, email alerts, or chatbots.
Benefit 3: Cost Savings
Cost savings are a major advantage of AI-powered customer service in banking. One key way AI achieves this is through automation. Chatbots powered by AI can handle many routine customer inquiries, freeing up human agents for complex issues. This reduces labour costs while also improving response times.
AI also helps with better staffing management. It can analyse past data to predict how many calls are coming in. Banks can then ensure they have the right number of agents available, avoiding overstaffing or understaffing that can significantly impact costs.
Benefit 4: 24/7 Support
Traditionally, reaching a support agent often meant waiting on hold during peak hours. However, AI in customer service is transforming the industry by offering immediate assistance through chatbots. These virtual assistants provide instant support the moment a customer reaches out.
Unlike human agents with limited working hours, chatbots are available 24/7. This ensures customers get help whenever they need it, regardless of location or time zone. This is especially valuable in the globalised world, where customers might need support outside of regular business hours.
A great example of this success is Photobucket, a media hosting service. After implementing a chatbot, they offered 24/7 support to international customers. This results in a three percent increase in customer satisfaction scores along with a 17 percent improvement in resolving issues on the first try.
Benefit 5: Multilingual Support
AI-powered chatbots offer multilingual support, breaking down language barriers and creating a positive banking experience. These chatbots can figure out a customer’s preferred language at the start of a conversation. This ensures clear communication, no matter what language the customer speaks.
Conclusion
A study by Global Market Insights predicts the conversational AI market will reach $57.2 billion by 2032. This technology is making big strides in banking, particularly by automating routine tasks and inquiries. By taking care of these repetitive tasks, AI frees up human agents to focus on more complex customer issues. This improves efficiency and helps banks manage their operating costs. A streamlined customer service experience builds trust and loyalty, which can lead to business growth for financial institutions.
A revolutionary trend has emerged and revolutionised the banking sector. Neobanking has changed market demand and become a consumer favourite….
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A revolutionary trend has emerged and revolutionised the banking sector. Neobanking has changed market demand and become a consumer favourite.
Neobanks, or digital banks, offer banking services without physical presence. Unlike traditional banks, which require customers to access services on-site, neobanks can process all services online.
These solutions address the challenges of extensive physical infrastructure and aim to offer more user-centric services. Neobanking offers 24/7 operational access, lower fees, higher interest rates, enhanced customer service, innovative features, and more.
Current Trends in Neobanking
One of the many advantages is seamless digital wallet experiences. Customers can use international payments with competitive exchange rates and lower fees than traditional banks. Another advantage of neobank services is instant loans. This feature makes credit more accessible, including to those traditionally underserved.
Cryptocurrencies and blockchain adoption are growing in neobanking. Digital banks integrate blockchain for secure transactions and smart contracts. Cryptocurrencies like Bitcoin and Ethereum enable global transactions without intermediaries. As regulators adapt, neobanking harnesses blockchain’s potential for decentralised finance (DeFi) and offers access to lending, staking, and yield farming.
Technological Advancements
Neobanks apply the latest technological developments to enhance their services, utilising advancements like Artificial Intelligence (AI) to create personalised systems. Through machine learning, neobanks leverage algorithms for credit scoring, risk assessment, and fraud detection, improving their decision-making processes.
These technologies also strengthen customer service through chatbots, enhance risk assessment and credit scoring, and provide personalised financial advice. Furthermore, AI-driven insights enable neobanks to offer more relevant products and services, boosting customer satisfaction and loyalty.
Market Dynamics
The neobanking market is expected to grow at a CAGR of 35.8 percent during 2023-2030 due to increasing financial digitalisation, as predicted by UnivDatos. The neobanking market is expected to grow at a CAGR of 35.8 percent during 2023-2030 due to increasing financial digitalisation, as predicted by UnivDatos.
The growth can be attributed to the convenience neo-banks offer, such as 24/7 access to services through mobile apps, allowing customers to manage their finances anytime, anywhere. Neobanks have lower operating costs, due to the lack of physical branches, also contribute to their appeal.
Furthermore, supportive government regulations and investor confidence are crucial to this growth. Governments have introduced regulatory sandboxes to foster fintech innovation, encouraging entrepreneurs and investors to enter the market. The success of companies like Stripe, Chime, and Revolut highlights the potential of neobanks to meet the demand for efficient and cost-effective financial solutions.
The market is characterised by dynamic and rapidly evolving trends driven by technological advancements. For instance, some neobanks are exploring blockchain technology for secure transactions and offering cryptocurrency services. This technology caters to the growing interest in digital assets.
Future Directions
The future of neobanking is poised for transformative growth. Neobanks will increasingly target international markets, adapting services to local regulations and consumer preferences. Moreover, this expansion is set to broaden financial inclusion and capture diverse customer bases.
Machine learning algorithms optimise product recommendations and credit assessments. This technology will also grow the adoption of advanced security measures such as biometric authentication, multi-factor authentication (MFA), and real-time fraud detection systems.
Partnerships and ecosystem expansion will become key to sustained neobanking. Collaborations with fintechs, e-commerce platforms, and traditional banks will broaden offerings. Additionally, this ecosystem integration will offer customers access to various financial and non-financial services.
Conclusion
Neobanking is a disruptive force in the financial industry. It enhances financial management by providing a seamless system. Customers can quickly meet their various needs within reach, from transactions in diverse payments to cryptocurrencies and blockchain. These banks utilise the latest technology to provide data-driven services and products to ensure customer satisfaction.
The market is rapidly evolving, driven by technological advancements and changing consumer preferences. Therefore, as neobanks continue to innovate and adapt, they make financial services more inclusive and accessible.
McKinsey & Co. is seeing an increase in the number of clients seeking artificial intelligence-linked projects, reports Bloomberg. Faster adoption…
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McKinsey & Co. is seeing an increase in the number of clients seeking artificial intelligence-linked projects, reports Bloomberg. Faster adoption of the technology is helping the consulting titan and its peers boost revenue, across industries like Insurtech, following a period of tumult.
About 40 per cent of the New York-based firm’s client projects involve the technology. The number of AI-related customers in the past 12 months is approaching 500, Rodney Zemmel, senior partner and head of the firm’s digital business, said in an interview.
“We believe the long- or the medium-term economic implications are very real,” Zemmel said. He was a final candidate in the recent global managing partner leadership elections at the firm. According to people familiar with the matter, who asked not to be identified discussing confidential information.
Though there’s some degree of hype around AI, “we’re seeing the organisations that are doing that are getting value from it,” Zemmel said. “It’ll be a little longer, and maybe, a little harder than people think, but we’ve got no doubt that the value is there,” he added.
AI adoption across Insurtech
Among those deploying automation rapidly are the traditional and regulated industries such as banking and insurance, Zemmel said. In a June report, Citigroup Inc. said AI is poised to upend consumer finance and make workers more productive. Additionally, with a high potential for 54 per cent of jobs across banking to be automated. Citi also said that the technology could add $170 billion to the industry’s coffers by 2028.
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon has called AI “critical” to his company’s future success. He also noted the technology can be used to help the firm develop new products, drive customer engagement, improve productivity and enhance risk management.
The surge in automation has come as a relief for the broader consulting industry. It has been battling a slowdown in demand for its traditional services. McKinsey, Ernst & Young and PricewaterhouseCoopers have been cutting jobs to weather the slump. Furthermore, Accenture Plc shares tumbled in March after the company warned it’s seen financial-services customers, including Insurtech, rein in spending on its software.
AI’s rise is also diverting some budgets toward specialist consultancies. Although AI-focused units like McKinsey’s QuantumBlack are growing rapidly, according to Zemmel.
McKinsey – QuantumBlack
McKinsey, which has advised everyone from the U.S.’ Pentagon to China’s Ping An Insurance Group Co., currently has about 2,000 people working across QuantumBlack. It has 7,000 staff in total in tech-related fields, according to Zemmel’s estimates. McKinsey’s headcount stood at about 45,000 globally as of 2023 and revenues were at a record $16 billion.
Zemmel said that the firm is still evaluating how the use of AI will impact its own headcount over the longer run. McKinsey had earlier warned about 3,000 of its consultants that their performance was unsatisfactory and will need to improve.
“We’re certainly planning on being agile about it,” Zemmel said. “One thing that’s clear is everybody in our organization’s going to need to know how to use AI and incorporate in their day-to-day work if they’re going to remain relevant to their clients.”
Alloy, the identity risk management company trusted by over 600 leading banks, credit unions and fintech companies, has released its…
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Alloy, the identity risk management company trusted by over 600 leading banks, credit unions and fintech companies, has released its 2024 State of Embedded Finance Report.
The Report examines the year’s top trends in embedded finance risk management and compliance. Alloy surveyed more than 50 professionals at financial institutions operating bank sponsorship programs in the United States to learn how their businesses are responding to compliance challenges.
The Report is being published at a time when sponsor banks in the US are facing increased regulatory scrutiny. A reported 25.6% of the FDIC’s formal enforcement actions have been directed at sponsor banks since the beginning of 2024.
Alloy’s report found that while embedded finance programs drive significant revenue (over 50%) for sponsor banks, a majority (80%) of respondents reported that meeting embedded finance compliance requirements as a sponsor bank is challenging in the current environment.
“Running a sponsor bank program is inherently complex because you have banks who are highly regulated working with companies that are often new, fast-growing, and creating entirely new ways for consumers to interact with money,” said Tommy Nicholas, CEO and co-founder of Alloy.
“Despite the challenge, we’re already seeing sponsor banks respond to regulatory developments by investing in better controls, training, and adding to their compliance tech stack.”
State of Embedded Finance Report 2024
Here are five of the key findings from Alloy’s State of Embedded Finance Report:
1. Over half of sponsor banks’ deposits and revenue come from embedded finance partnerships.
Partnerships between banks and fintechs are a cost-efficient approach to catalyze growth through increased deposits, seamless UI, and accelerated innovation.
2. As regulatory scrutiny grows, embedded finance partnerships are becoming harder to maintain.
The embedded finance boom resulted in many banks testing the waters of bank sponsorship programs. As the complexity of managing these programs grows, we may see sponsor banks with less sophisticated embedded finance programs and tech stacks leave the space entirely.
3. Respondents cite reputational damage as the top consequence of compliance violations.
Reputational damage often results in increased regulatory scrutiny, including more frequent examinations and document requests. This heightened oversight can strain resources and pose ongoing operational challenges.
4. 90% of financial institutions face challenges when meeting compliance requirements as a sponsor bank.
Lack of control and audibility over fintech partners’ policy controls were cited as top challenges to meeting compliance requirements. Managing compliance across multiple jurisdictions and adapting to evolving regulatory changes were also top concerns.
5. 94% of respondents say they plan to invest in new compliance technology to help them manage their embedded finance partnerships.
As attention surrounding compliance missteps has grown over the past few years, there are new tech solutions available to help bridge the gap between sponsor banks and fintechs.
Download the Report
Respondents included 51 decision-makers from financial institutions operating bank sponsorship programs in the United States.
Surveys were conducted by The Harris Poll, a leading survey platform for over 60 years.
For further insights you can download the full report here
As digital payments continue their rapid ascent, understanding the accompanying cybersecurity challenges has never been more critical. Furthernore, with Statista…
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As digital payments continue their rapid ascent, understanding the accompanying cybersecurity challenges has never been more critical. Furthernore, with Statista forecasting a robust 9.52 percent annual growth rate for digital payments from 2024 to 2028, the urgency to address these security concerns intensifies.
While this growth brings unparalleled convenience, it also introduces new security vulnerabilities that must be addressed. Cybersecurity is fundamental in safeguarding confidential data against hacking, fraud, and data breaches. Implementing effective cybersecurity measures can also maintain trust between businesses and clients while preventing financial loss. To optimise cybersecurity, identifying the current threats to digital payment systems is a must for businesses and consumers.
Current Cybersecurity Threats
Digital banks face various threats that continually evolve as technology advances. By addressing these challenges head-on, banks can protect their users and continue the growth of digital payment.
Many types of cyber threats can disrupt digital payment systems:
Phishing attacks: These attacks use deceptive emails, phone calls, or texts to trick victims into revealing personal information, such as login credentials and financial details. The scam can lead to other types of cyber threats.
Malware: Malicious software that infiltrates systems to steal data, monitor activities, or lock accounts. Various forms of malwares have different functions, such as Trojans, Worms, and Spyware.
Man-in-the-Middle (MitM) Attacks: intercept communications between the user and the bank allowing attackers to steal sensitive information or funds.
Data breaches: Unauthorised access to digital bank databases exposes vast amounts of sensitive information, including personal and financial data.
Ransomware: It is an attack that employs malware to infiltrate computer systems to steal data, monitor activities, or lock accounts. The attackers then demand payment and keep disrupting the devices/websites until they are paid.
Credential stuffing: Attackers use stolen usernames and password combinations from other breaches to gain unauthorised access to accounts.
DDoS and DoS attacks: Distributed Denial-of-Service (DDoS) attacks overwhelm the bank’s servers, making online services unavailable to customers. Unlike the Denial-of-Service (DoS) attack where a single source is used to flood the target, DDoS use multiple sources of compromised devices (botnets).
Insider threats: Employees or contractors with access to sensitive information may intentionally or unintentionally cause data breaches or other security incidents.
Social engineering: Manipulating individuals into divulging confidential information through psychological manipulation.
Zero-Day Exploits: Attacks that exploit previously unknown vulnerabilities in software or hardware before patches are available.
Cybersecurity Measures
Encrypting data is essential to convert the personal information into a secure format. This encrypted data can only be accessed with the correct key or description. This ensures that the data remains secure and unreadable after interception.
Multi-Factor Authentication (MFA) adds a layer of security by requiring some form of verification before granting access to the platform. Tokenisation replaces critical payment data with a unique or random token that cannot be hacked once intercepted.
Biometric verification, such as fingerprint and facial recognition, provides additional security by utilising unique physical characteristics. These include the shape of the face and the outline of a fingerprint, both of which are difficult to replicate.
Financial institutions have also innovated to improve cybersecurity by implementing artificial intelligence (AI). For example, JPMorgan Chase has implemented an AI-driven fraud detection system. This application is used for monitoring transaction activity in real-time. It can also detect potential threats or fraudulent transactions using the data analytics tool.
Regulatory Requirements
Financial companies are obligated to meet regulatory compliance. It is important to build customers’ trust and avoid legal or financial penalties. For global financial institutions, regulatory issues might be more complex as each country has its version of rules. As cyber threats evolve, regulators continuously update and enforce these requirements to address new challenges in digital payment systems.
For instance, UK regulations have set strict rules to ensure the security of digital payments. These include data protection measures, and companies that do not prioritise cybersecurity will face substantial fines. Similar regulations have been implemented across European Union (EU) Member States, compelling financial institutions to enhance cybersecurity to create a safe digital payments environment for consumers.
FinTech Strategy met with Stiven Muccioli, Founder & CEO at BKN301, to discuss digital payment services connecting North Africa, the…
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FinTech Strategy met with Stiven Muccioli, Founder & CEO at BKN301, to discuss digital payment services connecting North Africa, the Middle East, and Europe.
BKN301 Group is a London based fintech provider that offers Banking-as-a-Service, connecting North Africa, the Middle East, and Europe. The company aims to address the financial inclusion gap in these regions. It provides digital payment and banking platforms to unbanked populations. BKN301 has successfully partnered with fintechs in Egypt and Qatar, serving millions of customers and providing access to financial services. They are also focused on expanding their market in Europe. The company aims to become a leader in the industry and bridge the gap between Europe and the Middle East.
At Money20/20 Europe, FinTech Strategy spoke with BKN301 Founder & CEO Stiven Muccioli to find out more…
Tell us about the genesis of BKN301…
“I launched the company in 2021 with the vision to create the biggest tech provider for a digital banking service connecting North Africa, the Middle East, and Europe. We are looking at the demographic sheet of the world… In Europe, we are overserved by the banking system and it’s quite tough to create new projects in the FinTech space. It’s hard to scale past Europe, into the Middle East and North Africa. Ours is an operation in its early stages. There is a huge penetration with mobile devices in the Middle East and North Africa, but at the same time there are a huge amount of people unbanked.
So, we have created the platform to allow digital banks to start fast and with low cost. Basically, we are the ‘backbone’ for the new digital banking era in the Middle East and North Africa. We also work with many companies across Europe. However, we are very focused on the connection between the Middle East, North Africa and Europe. Also, we are focused on the remittances business and cross-border payments because many working abroad in Europe don’t have access to the banking system in Europe. And there are many digital banks in Europe trying to fulfil this gap for new customers.”
Tell us about your career journey…
“I began 15 years ago in the startup business and founded two other companies. The first one, Tippest, was a copycat of Groupon in Italy. This was founded with a group of friends in 2011 and we were able to scale successfully, leading to its sale in 2015. Following that, I moved to the US where I spent some time as an angel investor. In 2016 I came back to Italy to start a new company. It was a corporate venture operation inside of the Iccrea Bank, one of the biggest banking groups in Italy. We created a company named Ventis. It delivered the first super application that merged e-commerce and the digital bank.
We created a platform capable of delivering an e-commerce service, and at the same time digital banking services, payment cards, accounts and more. We managed this part of the business for the Group and reached good numbers. In 2020, we sold the company and today it is the third biggest payment player in Italy.”
Tell us about some of the successful partnerships BKN301 has been involved in…
“We have seen great successes with key partners such as Damen. Damen is a e-payment company in Egypt serving 18 million customers. Thanks to our technology, they are able today to provide a digital payment application to millions of Egyptians. They are now connected and have access to a range of financial services to save money and receive remittances from Europe and across the Gulf. A very successful story in terms financial inclusion.
It’s the same in Qatar where we serve a partner that provides service to labourers and construction workers – there are around 700,000 such workers in Qatar. A good example of financial inclusion because we provide the platform for a low-cost digital banking platform connecting unbanked people to Europe.”
What are some of the key challenges financial institutions are facing that you can help them with? What problems are companies asking you to solve?
“At BKN301, we’re focused on our technology and building an ecosystem based on APIs so we’re able to provide those APIs to digital banks – with us, they save time and money. So, the integration cost is far less than a traditional integration cost. They’re able to work multi-market because we are in different markets and they won’t have any legacy agreement with big corporates. We provide APIs so they can develop and use them for core banking and processing.”
What trends are you seeing across the FinTech landscape? What opportunities do you see for BKN301?
“Every year there is a new wave of news, but we don’t know how long each trend will it last… A couple of years back blockchain was at the core and everyone want to add a feature, sometimes without any reason. Now it’s the same with AI. To build a concrete platform on AI or on blockchain, you need many years, and a lot of investment, to be focused. I don’t believe companies that come out after six months saying they are now AI based. It’s impossible to build a real platform based on AI that quickly. We need to define the real companies. So, which one has the mature technology. It’s a good wave and I think there is a huge need. For example, anti-money laundering controls driven by AI could be a game changer.”
And what’s next for BKN301? What future launches and initiatives are you particularly excited about?
“This year we want to get more established in the market in Europe, so we will be focused on expansion. The goal for us is to become the door, the access bridge, between Europe and the Middle East. We aim to become a backbone for the new financial ecosystem across the region.”
Why Money20/20? What is it about this particular event that makes it the perfect place to showcase what you do?
“Every year there is a new wave of news… A couple of years ago blockchain was at the core and everyone wanted to add some feature on blockchain, sometimes without any reason. And now it’s the same with AI. To build a concrete platform on AI, or on blockchain, you need to be focused for years and have a lot of investment – it can’t be done in six months. So, as with blockchain, we need to define the companies making real progress with established technology based on AI, the same as we did with blockchain. It’s a good wave that can meet a huge need, for example with anti-money laundering controls, and Money20/20 is a great place to learn more about where the industry is at today.”
We chatted with Johan-Peter Teppala from Sievo about why procurement needs to use technology wisely.
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When CPOstrategy attended the DPW NYC Summit back in June, one of the buzzwords of the day was trends. Trends in procurement, trends in technology, and how to combine the two. The event was filled with productive discussions around how procurement can benefit from data and advanced technology. This led to a hopeful vibe throughout the day, despite and because of acknowledgements of procurement’s shortfalls.
We caught up with Johan-Peter Teppala, Chief Customer Officer of Sievo, at the NYC conference. For Teppala, that hopefulness is something he took away from the event. “It is great to see so many companies out there with keen interest in adopting new securities and technologies,” he says. “Procurement has increasing demand to do more with less, which explains also the need for technology to drive efficiency and to deliver more. I think it’s just inertia that’s slowing us down.”
However, advanced technology is helping shift the inertia that’s so prevalent across procurement. “Developments in GenAI have been exceptionally fast, especially recently,” Teppala adds. “With an increasing amount of practical Gen AI use cases, this has become a topic that touches each and everyone in procurement. At Sievo, we are dedicating R&D budgets to AI innovations. We have quickly been able to ramp up many practical use cases for our clients to deliver business value in this area.”
Using data and technology wisely
Teppala continues: “Sievo strives to withhold our position as the leading Procurement Analytics partner for large enterprises. We are driven by the goal to close the data-to-action gap. We believe analytics alone has zero value, it’s the actions that we take that drive the value.” This was a topic that was repeated several times during the DPW NYC Summit.
“As a result, SIevo’s goal is to ensure our customers can use their time most efficiently. We help them make business-impacting decisions and best use their expertise, whilst Sievo automatically surfaces insights that they can take action on. First and foremost, our work is about carving out insights. And once you have those insights, how do you automate those actions to create opportunities? That’s definitely one thing we’re keen to solve.”
Sievo is also focusing its attention on gen AI – how it can be adopted and what the use cases are. “AI for data cleansing has been around for a while,” says Teppala. “Right now, Gen AI is getting really good traction from a technology point of view. It’s not just insights, but adopting AI into chat interfaces, and reaping the benefits with implementable actions. It’s amazing.”
The changing talent landscape
The increased adoption of AI is going to also change the talent landscape within procurement. Another heavily-discussed topic during DPW NYC was the talent shortage and how it has the potential to slow procurement down. However, advanced technology may be the thing that accelerates it once again.
“The talent you need is changing,” says Teppala. “The procurement mandate has widened beyond delivering cost savings. Now, it’s also about driving sustainability initiatives, emission reductions, increasing diverse spending, and preventing supply chain risks. Procurement has to be creative and resource-effective for reaching ideal outcomes. This is a big challenge but also a big opportunity and also impacts the talent needed in procurement.
“You don’t necessarily need to hire superstars who know everything. It’s about teamwork. Building a procurement team out of people who possess all these modern talents, who can support each other. I can’t know whether this is going to solve the talent shortage, but at least we’re shifting towards a different kind of talent as capabilities change.
Teppala concludes: “We need to be thinking more about what kind of team we actually want to build – not just what kind of really good, talented individual we can find.”
The insurance sector is witnessing a growing adoption of digital insurance solutions. Machine learning (ML), artificial intelligence (AI), and embedded…
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The insurance sector is witnessing a growing adoption of digital insurance solutions. Machine learning (ML), artificial intelligence (AI), and embedded insurance are at the forefront of this wave across InsurTech.
According toAcumen Research and Consulting, the InsurTech market is expected to reach $166.4 billion by 2030. This projection is reinforced by a high compound annual growth rate (CAGR) of 39.1 percent anticipated between 2022 and 2030. This growth is attributed to a surge of insurance technology innovations.
Introduction to InsurTech
InsurTech, short for “insurance technology,” combines traditional insurance practices with cutting-edge advancements in AI and blockchain. It plays a key role in transforming the insurance industry by making it more efficient, transparent, and accessible. Furthermore, automation, improved risk assessment, and tailored coverage options ensure the digital insurance industry meets evolving consumer demands.
Digital Transformation
InsurTech is a driving force behind the digital transformation of the insurance industry. This transformation isn’t just about software upgrades or automation. It’s a strategic shift that revamps core operations and how insurers deliver value to customers.
Today’s consumers demand personalisation, speed, and convenience in everything, including insurance. They expect instant access to policy details and quick claims resolution—areas where traditional systems struggle. InsurTech empowers insurers to meet these changing demands by enabling customised interactions and faster service.
Customer Experience
InsurTech companies are transforming customer interactions with insurance. Convenience, speed, and personalisation are now priorities.
This change is driven by a focus on improved customer experience. Digital platforms and mobile apps from InsurTech firms make buying policies, managing them, and filing claims easier. Self-service tools and chatbots provide instant support and assistance, reducing the need for traditional customer service channels.
Efficiency gains with InsurTech
A crucial element of InsurTech’s contribution to the insurance industry lies in claims management. InsurTech streamlines insurance claims by automating tasks with AI and ML. This means faster claim assessments, processing, and payouts for policyholders.
InsurTech also boosts efficiency for insurers by automating tasks, which can lead to lower operating costs. These lower costs could potentially translate to reduced premiums for consumers. Consequently, digital insurance becomes more accessible and cost-effective.
Case Studies
Several insurance companies are demonstrating success through innovative InsurTech solutions.Chapter, for instance, uses online tools to connect users with advisors and advocates. These experts help people navigate the complexities of enrollment. They ensure people understand their options, deadlines, and how to choose the right plan for their needs.
Health plan selection is another area where InsurTech is making a difference.GoHealth utilises a sophisticated platform powered by ML algorithms to match consumers with plans tailored to their unique needs. Licensed agents and dedicated telecare teams offer support throughout the selection process and beyond.
Future Prospects
InsurTech presents a future brimming with possibilities for the insurance industry. However, as more processes become digital, security concerns come into focus. Future Processing’s InsurTech survey revealed that81 percent of respondents believe insurers need stronger cybersecurity policies.
This underlines the need to revisit cybersecurity practices as digital transformation progresses. Looking forward, developments in AI and tools like ChatGPT, along with data privacy concerns, suggest quality will be the foundation of InsurTech’s future. By focusing on high-quality data and strong security, insurers can gain deeper customer insights and significantly improve the customer experience.
For a company like TealBook, data is king. The organisation helps businesses to navigate the complex supplier landscape by offering…
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For a company like TealBook, data is king. The organisation helps businesses to navigate the complex supplier landscape by offering a foundation of high-quality data. This is something that’s often sorely missing in procurement.
“We have a data problem,” Stephany Lapierre, CEO and Founder of TealBook, told us when we caught up with her at the DPW NYC Summit in June. “It’s always been my view that we don’t have a software or people problem – it’s data. If we could achieve better data – no matter the data stack, no matter the maturity, no matter the vertical – it would be truly transformative.”
Creating a data foundation
Lapierre has watched procurement’s attempt to tackle advanced technology without good data. Simply buying software is the easy part. Some have even tried to build their own architecture around that software. However, that’s often unsuccessful and highly manual. This is what led to the creation of TealBook.
“We’re in this pursuit of how we can deliver to the market,” Lapierre states. “We’ve been building a trusted data foundation for eight years.” More recently, the second version of TealBook’s service is significantly more powerful than the first. This allows it to ingest data at speed and set up new data sources within a couple of hours. “The more data sources, the more suppliers we’re covering, the more attributes per supplier. And, the more signals to improve the TrustScore and the confidence behind the quality of our data.”
Never ignore the fundamentals
The fact that quality data is all too often overlooked in procurement in favour of advanced technology was something of a theme at the DPW NYC Summit. The opinion of Lapierre is that there’s little point in implementing advanced tech without first having usable data in place. Many others at the event felt the same.
“It’s like buying a house because you love the house, but paying no attention to its foundation, plumbing, or electrics,” she explains. “Procurement has been buying up technology solutions, wanting to see the workflow, the UI, what it can do. However, people aren’t asking where that data comes from. How is it being evaluated? What about the compliance side of having suppliers populating a portal?
“Procurement has more and more requirements to get more and more data, so filling the gaps becomes more difficult. There are also increasing demands for transparency, and for regulators to have better quality information. When you’re reporting something, you have to really trust that information. That’s how you give confidence to your board or leadership team.”
A shift in focus
The upside of this disconnect is that Lapierre fully expects the pursuit of better data to be a key trend in procurement over the next few years. “I’ve found that no-one talks about the data layer in procurement,” she states. “They brush it under the rug or underestimate how critical it is to use data to feed large language models for better insights. As data becomes more accessible, the need for a trusted data foundation becomes more important. You need good data posture.”
With this very topic being discussed openly at prestigious events like the ones DPW hosts, procurement professionals and leaders are actively working towards solving this blockage. “The problems have to be solved in order to leverage the exponential value of Gen AI, automate workflows, and bring intelligence in across all these functions,” Lapierre continues.
“Consider: what would it mean to your business if you could actually solve that data problem, drive better outcomes, and truly digitise the procurement function?”
Embedded finance is transforming e-commerce for the better. It enables online businesses to offer payment processing, lending, insurance, and other…
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Embedded finance is transforming e-commerce for the better. It enables online businesses to offer payment processing, lending, insurance, and other financial services within their own platforms as a non-finance platform. The convenience and efficient shopping experience offered is changing the way people shop and how e-commerce businesses operate.
The companies that implemented embedded finance have seen significant growth in conversion rates of up to 12 percent, the average order value of up to 30 percent, and as much as a 7 percent incremental revenue. Brain & Company’s 2022 report also projected the embedded finance market value to grow to $7 trillion by 2030, indicating an increasing demand for this service.
Embedded Finance benefits
Embedded finance offers integrated payment solutions for e-commerce businesses. Customers can access financing options at the point of sale without switching to other platforms. This seamless experience makes it easier for buyers to complete their purchases, ensuring revenues for the businesses.
This integration provides better access for financial products, especially digital banking. Commonly, digital bank accounts are easier to set up than their traditional counterparts. It allows non-banking populations can easily make their purchase in e-commerce platforms.
Embedded finance opens new sales and revenue stream opportunities for e-commerce businesses. They provide sellers with working capital loans based on sales data, enabling them to earn additional revenue through interest and fees. The integration also increases customer retention as they are less likely to switch to competitors. This leverage offers long-term success in a competitive market.
Personalisation is another embedded finance’s strong suit. E-commerce businesses can use the customer’s data from their platforms to offer financial products tailored to their needs, creating a better customer experience.
Accenture found that 63 percent of consumers are more likely to buy a financial product from non-financial platforms that they trust. This report emphasises the importance of personalised embedded finance in generating more financial product sales.
Case Study: Amazon
One of the e-commerce platforms that successfully uses embedded finance isAmazon. In 2007, it launched Amazon Pay, allowing users to make purchases on external sites using their Amazon account details. This move not only expanded Amazon’s revenue opportunities but also strengthened customer loyalty.
Over the years, Amazon has continued evolving its embedded finance offerings, including one-click payments, buy now pay later, and lending services. Their latest venture involves a cash advance program in partnership with fintech company Parafin, which provides select sellers easy access to capital without interest or collaterals.
Case Study: Shopify
Shopify also creates a good embedded finance ecosystem with its various financial products. The Canadian e-commerce platform launched Shopify Payments in 2013 to simplify payment. This was followed by Shopify Capital in 2016, a lending product now available in four countries. The latest addition is Shopify Balance, a financial product offering a bank account and a debit card for managing financial activities.
Shopify earns most of its revenue from “merchant solutions” rather than just e-commerce software. This segment, which includes financial and fulfilment services, is growing much faster than its SaaS offerings — 29 percent compared to 8 percent as of Q4 2022, according to the company’s financial report.
Future Outlook for Embedded Finance
The future of embedded finance seems promising, with experts projecting an increase in demand and market share. As customers expect better integrated financial solutions, many companies will continue to adopt this system.
Embedded finance will also continue evolving with new technological advancements like artificial intelligence (AI) and machine learning (ML). Both AI and ML are projected to play a significant role in increasing efficiency, security, and sales for embedded finance in the future.
To maximise the benefits of embedded finance, financial institutions and e-commerce businesses should collaborate to anticipate possible hurdles. Regulatory and compliance challenges are one of the complex issues that may hamper its development.
E-commerce platforms should also ensure their new sophisticated solutions are scalable. As new financial technology is adopted, the platforms should be capable of managing increasing transaction volumes without sacrificing performance or security.
With the growing popularity of digital payments, cybercriminals have found a lucrative target. Cybersecurity data breaches rose sharply by 72%…
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With the growing popularity of digital payments, cybercriminals have found a lucrative target. Cybersecurity data breaches rose sharply by 72% in 2023 compared to the previous record-breaking year. This shows the need for financial technology companies to implement strong banking security.
While digital payments offer benefits, businesses must protect themselves and their customers from cyber threats. Understanding the common cyber threats and implementing effective countermeasures are key to long-term success.
The Importance of Cybersecurity for Digital Transactions
With the increasing reliance on online platforms for financial activities, the risk of cyberattacks has grown exponentially. These attacks can lead to significant financial losses, damage to reputation, and erosion of customer trust. From identity theft to data breaches, the consequences of compromised security can be severe.
To prevent such consequences, cybersecurity measures are required for every financial institution. By applying cybersecurity best practices such as encryption, strong authentication, and regular security audits, organisations can protect customer data, prevent fraud, and maintain operational resilience.
Threat Landscape
Cybercriminals employ various tactics to exploit vulnerabilities in digital systems. Phishing attacks, a common method, deceive users into divulging sensitive information through fraudulent emails or websites. Another prevalent threat is ransomware, where cybercriminals encrypt a victim’s data and demand payment for decryption.
Additionally, unauthorised access to accounts through stolen credentials can lead to financial loss. These cyber threats highlight the need for a security framework to protect digital transactions against malicious activities.
Best Practice 1: Encryption
Cybercriminals can easily exploit vulnerable systems, leading to substantial financial losses and reputational damage. A data breach can cost millions of dollars to rectify, including expenses for recovery and ransom payments. A recent IBM report indicates that the average global cost of a data breach exceeds $4.45 million.
Encryption safeguards sensitive information by transforming it into an unreadable format, accessible only to authorised parties possessing the correct decryption key. This cryptographic process employs complex algorithms and keys to safeguard data integrity and confidentiality.
Best Practice 2: Multi-Factor Authentication
Cybercriminals can easily steal passwords and pins through brute-force attacks, systematically testing numerous combinations until successful. Multi-factor authentication (MFA) offers a robust defence against this threat.
Requiring users to provide multiple forms of identification strengthens account security. This authentication combines different types of verification. This includes information only the user knows, like passwords, items the user possesses, such as security tokens, and unique physical traits, like fingerprints.
By requiring multiple verification steps, banks and financial institutions create a formidable barrier against unauthorised access to sensitive information and funds. Additionally, multi-factor authentication enhances user account management by requiring unique authentication factors for each individual.
Best Practice 3: Employee Training
Organisations with regular cybersecurity training experience a 40% reduction in security incidents compared to those without, according to This emphasis on employee education is justified as human error remains a primary target for cybercriminals.
Hackers frequently exploit employee vulnerabilities through tactics like phishing, social engineering, and other deceptive methods. By training employees to recognize these threats, financial institutions can mitigate the risk of data breaches and financial losses.
Such incidents can result in substantial financial losses and damage to an institution’s reputation. Consequently, comprehensive cybersecurity training is essential for all bank employees to mitigate these risks.
Best Practice 4: Regular Security Audits
A security audit is an evaluation of an organisation’s digital infrastructure, designed to identify vulnerabilities that could compromise digital transactions. This process involves examining security policies, testing safeguards, and ensuring compliance with industry regulations.
Given the escalating complexity of cyber threats, financial institutions must prioritise regular security audits. Banks can uncover weaknesses before malicious actors exploit them by scrutinising systems and processes.
Regular security audits empower organisations to proactively strengthen defences by implementing essential safeguards such as firewalls, antivirus software, and antimalware solutions. To ensure impartiality and objectivity, it is essential to engage an independent expert to conduct these assessments.
Best Practice 5: Incident Response Planning
As the frequency and sophistication of cyber threats continue to rise, the need for robust defences becomes increasingly critical. Safeguarding digital transactions requires a proactive approach, including a well-defined incident response plan.
An incident response plan is a crucial component of any organisation’s cybersecurity strategy. This formal document outlines strategies for preventing, detecting, and responding to security breaches that could compromise financial data. By establishing clear protocols and assigning specific responsibilities, banks can minimise the impact of cyberattacks and protect both their reputation and customers’ assets.
To be effective, an incident response plan must be established in advance and assigned to specific teams. By following established frameworks, such as those provided by the National Institute of Standards and Technology (NIST) and SANS, organisations can develop comprehensive plans. These resources offer detailed guidance on handling various types of security incidents to ensure a coordinated and efficient response.
Conclusion
Protecting digital transactions requires a multi-faceted approach. Implementing cybersecurity measures is essential for protecting sensitive financial data and maintaining customer trust.
Encryption and multi-factor authentication are foundational elements of a strong security posture. Encryption safeguards data by rendering it unreadable to unauthorised individuals, while multi-factor authentication adds an extra layer of protection by requiring multiple forms of verification. These are just two examples of critical best practices financial institutions should adopt.
Financial institutions must prioritise cybersecurity to maintain customer trust and protect their bottom line. By investing in advanced security measures and staying vigilant against emerging threats, organisations can effectively mitigate risks and ensure the integrity of digital transactions.
The growing complexity of financial markets presents new challenges for asset and wealth managers. Therefore, to navigate this evolving environment,…
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The growing complexity of financial markets presents new challenges for asset and wealth managers. Therefore, to navigate this evolving environment, many are embracing artificial intelligence (AI) for assistance with investment decisions. AI acts as a powerful tool, improving efficiency and effectiveness across various aspects of asset management.
From analysing market trends to building diversified portfolios, AI’s strength lies in processing massive amounts of data. Furthermore, it uncovers hidden patterns empowering managers to make data-driven investment choices across financial services.
Introduction to AI in Asset Management
Asset management involves managing investment portfolios for individuals, institutions, and businesses. This includes stocks, bonds, real estate, and other financial assets. The main goal is to grow value over time while minimising risk and meeting client goals.
AI is transforming asset management with its data processing and analytics capabilities. Additionally, AI algorithms can quickly analyse massive amounts of financial data, market trends, and economic indicators. This helps uncover hidden patterns and connections that human analysts might miss. A data-driven approach empowers asset managers to make better investment decisions and develop more accurate market forecasts.
Portfolio Management
AI is transforming asset management by offering powerful tools for better decision-making. Moreover, machine learning (ML), AI analyses vast amounts of historical market data to identify patterns and predict future trends, providing valuable insights for building portfolios.
Natural language processing (NLP) lets computers understand human language. NLP can unlock information from unstructured sources like news articles, social media, and analyst reports. The algorithms then analyse sentiment and extract key information that feeds into portfolio decisions.
AI optimisation algorithms help construct optimal portfolios. These algorithms consider risk tolerance, return goals, and investment limitations. By using these tools, portfolio managers can create portfolios designed to maximise returns while minimising risk.
Risk Management
AI is changing how investment decisions are made. The AI algorithms can analyse massive amounts of historical market data and complex risk models.
The analysis provides a deeper understanding of individual asset risk and the overall portfolio’s exposure. With this knowledge, investment managers can proactively identify potential risks and develop strategies to lessen them.
AI offers real-time risk monitoring. An AI-powered system continuously tracks portfolio performance, alerting managers to any significant changes in risk. This allows for swift adjustments as market conditions evolve.
Automated Trading
Traditional automated trading tools execute trades based on pre-programmed instructions from human traders. These tools function within the parameters set by the user and can’t analyse markets on their own.
AI offers truly independent systems with tools that can analyse markets using technical and fundamental analysis with minimal human input.
AI uses sentiment analysis, ML, and complex algorithms to process vast amounts of information and identify trends. This data-driven approach removes the emotional bias that can affect human traders.
Case Studies
The asset management industry is seeing a rise in firms using AI to improve performance. A recent example isDeutsche Bank’s collaboration with NVIDIA. This multi-year project aims to integrate AI across their financial services. This includes virtual assistants for easier communication and AI-powered fraud detection. The bank expects faster risk assessments and improved portfolio optimisation.
Morgan Stanley is also making strides in AI adoption. Partnering with OpenAI, their financial advisors now have access to a massive research library at high speed. Advisors can explore client portfolio strategies and find relevant information in seconds, leading to better-informed advice.
Future Prospects
APwC report predicts artificial intelligence will significantly boost global GDP, contributing up to $15.7 trillion in 2030. This advancement could reshape asset management in the coming years, leading to entirely new business models and investment strategies.
One future possibility involves fully automated investment platforms powered by AI. These platforms would manage investment portfolios with minimal human involvement and use real-time data analysis to create personalised investment plans.
Moreover, AI could pave the way for more dynamic investment strategies that respond to market changes. By constantly analysing market conditions, AI can automatically adjust investment portfolios to optimise returns and minimise risks. This could lead to more resilient and adaptable investment systems that are better equipped to navigate various market environments.
Standard Chartered has joined a suite of other institutional investors in the Digital Transformation platform United Fintech United Fintech is…
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Standard Chartered has joined a suite of other institutional investors in the Digital Transformation platform United Fintech
United Fintech is a London headquartered neutral Digital Transformation platform. It acquires and forms partnerships with fintech companies in the capital markets space. It is creating a fintech one-stop-shop to innovate with businesses. This is driven by collaboration with other cutting edge technology providers for the benefit of banks, hedge funds and asset managers.
Digital Transformation
The investment supports Standard Chartered’s ambitions to contribute to the advancement of digital transformation. Furthermore, these solutions work across capital markets, wholesale banking and wealth management, and the broader financial services arena.
As part of the investment Standard Chartered has been granted Board observer rights and subject to fulfilment of certain pre-conditions, will be offered a rotational Board seat. Additionally, this will enable it to share existing expertise and contribute to decisions around the platform’s strategic direction.
Stabdard Chartered
“We have been impressed by the growth in United Fintech’s portfolio of innovative, engineering-led technology companies. Standard Chartered share their vision for how technology can transform and disrupt market structure and infrastructure,” said Geoff Kot, Global Head, CIB Business Platforms & Partnerships at Standard Chartered. “We look forward to partnering with them as we continue on our journey of digital transformation.”
United Fintech
“The investment underscores Standard Chartered’s commitment to accelerate digital transformation. Also, it highlights their forward-thinking approach to collaborative innovation,” said Christian Frahm, CEO and Founder of United Fintech. “We are an Asia-focused multinational bank with an expansive footprint in Asia, Africa, Middle East, Europe and Americas. We are thrilled to have them complete our circle of global investors, joining Citi and BNP Paribas. They initially invested in February 2024, as well as Danske Bank, who followed in May.”
About United Fintech
Founded in 2020, United Fintech is an industry-neutral Digital Transformation Platform. Here, global financial institutions and cutting-edge technology providers come together to unleash their full potential and enable the future of finance.
“The financial services sector is a large part of any nation’s economy. Moreover, this sector to continue to thrive, we want to match the knowledge and expertise of our financial service providers with data-driven innovation to create an efficient symbiosis between customers, banks, and technology.”
Our cover story this month focuses on the work of Chief Information Officer Simon Birch and Chief Customer & Transformation…
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Our cover story this month focuses on the work of Chief Information Officer Simon Birch and Chief Customer & Transformation Officer Danielle Handley leading Bupa’s digital transformation journey across APAC and delivering a positive impact with its Connected Care strategy.
Welcome to the latest issue of Interface magazine!
“ConnectedCare is our primary mission and we’ve been spearheading time, investment and creativity to reinvent and reinvigorate customer experiences,” says APAC CIO Simon Birch. “Delivering that ConnectedCare proposition to our customers is made possible by the collegiate focus of the organisation. Ultimately, what we’re able to achieve is supporting our most important colleagues, our healthcare practitioners working across our facilities.”
Reflecting on that transformation goal, Chief Customer & Transformation Officer Danielle Handley believes that stakeholder engagement and alignment, while building relationships across the enterprise, have been key to their early success. “We’ve found the champions within the enterprise who are going to form part of the coalition of the willing to start to lead transformation here at Bupa.”
Vodafone: Personalising Embedded Insurance
Halil Teksal, Global Head of Fintech at Vodafone, discusses disruption in insurance, personalisation, and giving customers exactly what they need at the right time. “The main thing we’re aiming for is simplicity. How can we have really easy-to-use personalised solutions? At the end of the day, that’s what customers want. When they buy a smart device, they want to buy the insurance quickly from a reliable provider. It’s important that we satisfy all of those needs.”
Young businessman writing on adhesive notes on glass partition in modern office, ideas, innovation, planning, strategy
Walden Group: Advanced technology for a healthier tomorrow
Denis Connolly, CIO of Walden Group and CEO of Walden Digital, talks about the incredible work the organisation is doing to leverage data and technology for the overall improvement of the world’s health. “We’ve created all these new initiatives just in the last year or so, moving from technology being a cost centre to being an R&D and development-focused organisation.”
Also in this issue, Samer Fouani, Head of Cyber Transformation & Identity Access Management at TAL discusses the cyber journey for colleagues and customers at one of Australia’s leading insurers; Mark Turner, Chief Commercial Officer at Pulsant, explores how medium-sized businesses can best leverage new developments in AI; Martin Hartley, Group Chief Commercial Officer of emagine, examined the role of artificial intelligence in personalising the customer experience for financial services and Marius Stäcker, CEO of ToolTime, shares his four top tips for successfully implementing new software and driving digital transformation.
We caught up with Danielle McQuiston from Candex to discuss why procurement is risk-averse, and how the business can help.
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Candex, a B2B fintech company, has been going through some exciting changes recently. In the five years that Danielle McQuiston – its Chief Customer Officer – has been with the business, it’s gone from its venture round to A series in 2021 and into B series, which it closed out in 2023. Its goal is to make life easier for procurement professionals across sectors. This is because having trusted services at their disposal is one step towards changing procurement’s risk-averse reputation.
Candex’s value proposition is as a tech-based master vendor that helps enterprise buyers engage and pay small and irregular vendors through an easy, quick, streamlined process. The obvious ‘low-hanging fruit’ use case at most enterprise organisations is to use Candex to avoid setting up new vendors for small, infrequent purchases.
While tackling this low-hanging fruit demonstrates an immediate benefit, Candex is now taking it a step further. It’s helping enterprise clients understand the additional benefits and value that they can get from the solution. We caught up with McQuiston at the DPW NYC Summit in June, an event which featured innovative solutions in procurement. In particular, AI.
Creating and avoiding risk
“The companies that only go for the easy wins still have tens of thousands of suppliers that they hold in their vendor master. They don’t closely manage them and really don’t know them,” McQuiston says. “At some point, these companies have onboarded a supplier to make a small purchase. When they do, they do minimal checks on the vendors since the purchase is small or one-time only. But now that ‘small’ vendor is in the company’s system for anyone to engage with – sometimes forever. These companies are left with little-known and unmanaged vendors taking up 80% of their vendor master. This, in turn, creates risk for the enterprise.”
Candex can mitigate this risk and empower companies to focus more on strategic relationships. It does this by helping companies offboard their non-strategic vendors, and engage vendors only as needed. Businesses can do this with the confidence that Candex applies robust compliance screening and third-party diligence to all vendors as part of its standard processes.
As a result, Candex has started helping clients realise how they can reach their initial objectives of deriving more value by lowering risk exposure. By helping them focus on strategic suppliers, they can increase their working capital, accelerate the speed of doing business, and support their supplier diversity programs.
“All those aspects are where my focus is currently,” McQuiston explains. “Along with that, over the next few years, we will continue to make the process even more user-friendly. We’ll also further develop our solutions to meet the ever-changing commercial, compliance, and security landscapes. We can make the system even more intuitive, and help our customers streamline internal processes so things are faster and more cost-effective.”
The roadblocks
Implementing technology solutions to improve procurement is the name of the game across the sector, after all. It was talked about extensively at DPW NYC in June, where we spoke to McQuiston about Candex and trends. Unfortunately, there’s a roadblock for the sector, which is that procurement is risk-averse.
McQuiston explains. “We work primarily with Fortune 2000 companies, and I can’t tell you how many I’ve met up with who have outright told me they’re risk-averse. They all think that’s unusual, but they all say it and most of them are the same. It doesn’t matter if you’re in pharmaceuticals or consumer goods or banking – everyone is in the same boat regarding risk.”
This is because, as a function, procurement was created to ensure security of supply, controlling both quality and cost. “Procurement was born out of the supply chain world with a focus on direct spend. Out of the need to make sure prices don’t go up – and, in fact, go down,” McQuiston continues.
“Procurement has always been the enforcer of the financial rules. That’s the only way they were able to have an impact on the business initially. Now, procurement wants a seat at the table and is able to more broadly bring value to the business. In return, businesses are asking procurement to ease their role as the enforcer in order to have that seat. This is tough for procurement because, by nature, they’re nervous about losing control since that is how they have added value in the past.”
Hope is here
This may be a challenge, but the march of change isn’t stopping. There’s hope in the air. This is thanks to companies like Candex, as well as the arrival of new technologies. For example, artificial intelligence, which the business world is increasingly looking to leverage.
“AI is the whole theme of this conference,” McQuiston said of DPW NYC. The event spawned many fascinating conversations, not to mention encouraging ones. As the business world utilises technology better, procurement is only going to get better. And AI can help support procurement teams as they look to calibrate their solutions and right-size their approach to risk, efficiency, and value-add for the business.
“I’m very interested to see how innovative solutions like Candex, as well as AI solutions, become disruptors – in a good way,” says McQuiston. “A lot of other solutions that have tried to enter the procurement space have struggled to really break in and push for significant change.
“However I believe that if you solve a real problem and have good technology, you will be successful. AI may be able to really help further support technology solutions in their mission to simplify the procurement stack and positively address user experience challenges,” McQuiston concludes.
From AI to multi-factor authentication, here are 7 cybersecurity solutions keeping financial institutions’ critical data secure.
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Data belonging to 20.4 million UK citizens was affected by cyberattacks made against financial institutions at the end of 2023. This represents a 143% increase from the 8.4 million individuals affected in the previous year. The demand for robust cybersecurity is ever-increasing in financial institutions.
Financial Institutions encompass a wide range of businesses dealing with financial and monetary transactions, including banks, insurance companies, and brokerage firms. These institutions are pivotal for a functioning capitalist society, simplifying transactions, enabling individuals and entities to seek investment or lend money, and assisting in managing assets.
The increasingly digitalised nature of the economy, including the rise of online-only financial institutions like challenger banks, has accelerated the development of financial technologies and their adoption in the market. As a result, Software as a Service (SaaS) for finance, such as digital banking, electronic payment, online investment, and other online-based services, makes financial services more accessible to the consumer. But, with the ease of access technologies provided, new challenges have also emerged, especially regarding cybersecurity.
Financial institutions are enticing targets for cybercriminals. Therefore, cybersecurity has become integral to banking security in protecting data from malicious attacks.
Here are seven top cybersecurity solutions to secure data from online threats.
1. AI-Powered Threat Detection
The ability for AI models to perform pattern recognition on large amounts of unstructured data is opening up an exciting new frontier in threat detection for cybersecurity teams. AI tools can potentially flag subtle differences, anomalies, and patterns that could point to a zero-day threat or the presence of a bad actor in the system.
Some industry experts believe that AI-powered threat detection will be pivotal in helping cybersecurity teams respond to rapidly evolving cyberattack strategies that are increasingly difficult to combat — somewhat ironically, this uptick in the frequency and sophistication of attacks is at least partially due to the availability of AI tools, which hackers are also putting to use.
AI’s adaptive learning and advanced recognition capabilities enable automated responses to threats and can predict future risks by analysing past patterns. This helps reduce false positives and saves security teams time on assessments.
2. Multi-Factor Authentication
Multi-factor authentication has quickly become the standard in security and identity protection as more and more people bank, shop, and administer their lives entirely online. Put simple, it’s a multistep account login in which more information besides username and password must be provided.
Typically referred to as “something you have, something you know”, multi-factor login procedures drastically reduce account hacking, allowing security teams to detect suspicious activity that occurs in the logging processes.
3. DDoS Mitigation
Distributed Denial of Service (DDoS) is a coordinated cyberattack that overwhelmingly sends a request to the server simultaneously, which makes the server slow down or even go offline. DDoS mitigation is important for banking service security to prevent the interruption of vital services.
Cynersecurity teams can perform DDoS mitigation by implementing a load balancer, restricting requests from certain places, and blocking communication from outdated or unused ports, protocols, and applications.
4. Compliance
Compliance is vital to both ensure the security of systems and organisations against cyber attack, but also to prevent legal penalties and repercussions if an organisation is found to be in breach of existing regulations. These regulations ensure that an organisation’s cybersecurity set up is in line with the security and data protection laws in the countries where it operates, with the end goal of mitigating risk to the consumer — or just people in general whose data is collected and kept by the company.
There can be serious legal and financial risks associated with non-compliance — tied to both finance and cybersecurity. For example, in 2021, Natwest was fined over £264 million by the FCA for its extended failure to identify and prevent money laundering. Since the FCA was established, there has not been a year when its total fines issued have been less than £1 million. In the UK, other financial and cybersecurity compliance regulations are DPA 2018, UK GDPR, NIS regulations, and the Computer Misuse Act 1990.
5. Database Activity Monitoring
Database Activity Monitoring refers to any set of tools that monitors and analyses database activity. The goal of this monitoring is to flag and report deceptive, illegal, or undesired behaviour taking place within a system. Ideally, these tools run and operate without any serious impact on user experience.
Because most databases don’t monitor or flag suspicious activity by default, unless you have a tool that handles activity monitoring, making third party solutions a necessity in many cases. According to monitoring software solutions vendor Cyral, most systems also don’t collect enough data to enable “a full forensic investigation of historical breach events.” Also, databases that do often log and store this information inside the database itself. Any attacker that gains access to the database can then, supposedly, have write access to the full collection of tables (as is often the case), meaning they can easily delete any activity rows associated with their presence and theft of data.
6. SQL Injection Prevention
SQL injection is a code injection technique attackers use to steal, spoof, and manipulate data. An effective SQL injection attack can result in attackers gaining unapproved access to sensitive data like including credit card information, PINs, or other private information. In banking security, a failure to prevent SQL injection can result in attackers altering balances, voiding transactions, and even transferring money to their bank accounts.
Cyberattackers inject malicious SQL code into the backend of a target system when they discover defenceless user inputs in a web application or web page. The hackers can then use this opening to locate the IDs of other users within the database, impersonating these users — usually those with data privileges such as the database administrator — to run malicious code within the system.
7. Regular Risk Assessment and Training
Perhaps most importantly, the best defence against the rising tide of cybercrime is a cybersecurity conscious culture. Financial institutions should conduct regular risk assessments manually to identify potential vulnerabilities and threats to their systems and networks.
They should regularly evaluate and revise systems and networks based on analytics and assessments to prioritise cybersecurity initiatives and protect vital assets. Security teams shouls also conduct periodic security awareness training, which can strengthen cyber-readiness among finance personnel. This is particularly important given the rise in generated AI-driven phishing campaigns and other technologically democratised forms of cyber crime.
Case Study – Cybercriminals in UK Businesses
An investment article from IFA magazine reported 300,000 cybersecurity breaches in finance institutions across the UK in 2022 alone, making them the second-highest number of data breaches from all industries after the IT sector. Reports estimate losses in the region of £27 billion per year, with small businesses in the UK affected the most by cyberattacks, usually phishing.
The UK authority encourages its citizens to be more aware of the possibility of cyberattacks, especially phishing and fake charity emails, as online threats are growing exponentially. Ledi Sallilari from the SEO consulting firm Reboot also suggested that more complex passwords can help prevent account breaches.
The rapid expansion of internet usage brings new challenges for cybersecurity. Proper knowledge and awareness about cyber criminals should become mandatory for all Internet users to protect their online data.
Financial institutions, responsible for managing customer funds, need to implement strong cybersecurity measures. With more secure backend systems, they can protect assets and maintain customer trust in an increasingly digital world.
The financial technology sector is witnessing a surge in the adoption of blockchain technology, particularly for its transformative capabilities in customer verification.
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Traditional methods of identity authentication often face limitations in security and reliability, exposing user data to potential breaches. Blockchain, however, offers a compelling solution. This article explores how blockchain technology is changing the way industries approach customer verification.
Blockchain and Identity Verification and Management
Customer verification is critical in ensuring the security of accounts and transactions. Traditional identity management systems relied on trusted authorities to issue and manage credentials. This centralised nature makes them lack transparency and vulnerable to data breaches.
Blockchain presents a transformative solution for this issue. This distributed ledger technology offers a secure and transparent way to store and manage data. Each piece of information is cryptographically linked within a chain of blocks. Each block in the chain contains a unique cryptographic hash, acting as a digital fingerprint. And, lastly, each block’s hash incorporates the hash of the preceding block.
This makes it virtually impossible to tamper with the data once recorded. Any attempt to alter information in a previous block would change its hash, triggering a cascade of changes throughout the chain and exposing the tampering. This inherent security significantly reduces the risk of identity theft and fraud compared to traditional methods.
Another core strength of blockchain technology lies in its inherent transparency. Blockchain technology permanently records every transaction and instance of data entry on a shared ledger, accessible to all participants in the network. This fosters trust by promoting accountability and facilitating immediate verification for activities like dispute resolution.
How Blockchain Improves Efficiency
Customer onboarding for financial institutions hinges on verifying a customer’s identity. Traditionally, this involves multiple document submissions across various institutions. Blockchain technology streamlines this process.
One approach involves storing encrypted personal information (PII) like passports or driver’s licences on the blockchain. Customers would then grant permission to specific institutions to verify their identity. This eliminates the need to repeatedly submit documents for each new financial relationship.
It also creates a more reliable data source for institutions since everyone would be referencing the same information. Additionally, customer control over access simplifies compliance with privacy regulations.
Case Studies
One example of how financial institutions are leveraging blockchain technology for customer verification is Tradle, a Know-Your-Customer (KYC) platform built on blockchain. This platform utilises bots to scan relevant customer information, such as financial data and employment history, providing banks with verifiable background checks to streamline loan approvals.
The gathered information is then secured on the blockchain for both internal bank transfers and external data sharing, ensuring its immutability and trustworthiness. This approach offers financial institutions a secure and efficient way to conduct KYC checks, potentially reducing processing times and fraud risks.
Future Outlook
The future of digital identity management appears to be closely linked with the potential of blockchain technology. A report by Market Research Future predicts a surging market, reaching a valuation of $17.81 billion by 2030, driven by government initiatives that promote blockchain development worldwide.
Blockchain’s core strengths—security and transparency—offer a compelling alternative to traditional identity management systems. Ongoing advancements in blockchain technology and a growing focus on digital identity security point towards a promising future.
Data analysis is critical for predicting risks and returns. The ever-growing size of data has overwhelmed human capacity. This is where artificial intelligence (AI) comes in.
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AI is transforming the financial sector by automating routine tasks and efficiently analysing large and complex data sets. It can analyse vast amounts of data with unprecedented speed. The instant but comprehensive insights that this capability provides lead to significantly improved accuracy.
Introduction to AI in Financial Forecasting
Financial forecasting can be challenging for smaller businesses. They often rely on assumptions and human judgement. This can result in inaccuracy, especially when unexpected events occur.
AI can analyse massive amounts of data to find hidden patterns that drive revenue. It automates routine tasks and enables a more detailed analysis than humans can achieve on their own.
Predictive Analytics
By automating data processing and interpretation, AI empowers financial teams to make informed decisions based on a strong analytical foundation. It goes beyond basic analysis by employing advanced algorithms and machine learning (ML) to extract valuable insights from data.
This not only improves the accuracy of forecasts but also unlocks a deeper understanding of market complexities that were previously out of reach.
Risk Assessment
AI algorithms use advanced data processing to spot patterns, unusual activities, and connections that traditional methods might miss.
By training ML models on past data, AI can learn to identify patterns associated with fraud. These models then analyse new transactions, compare features, and flag potential problems in real-time.
Real-time Data Analysis
Slow reporting and analysis have hindered companies’ ability to adapt. AI-powered systems overcome these issues by enabling real-time analysis and decision-making.
AI’s ability to process massive amounts of real-time market data helps financial experts identify opportunities and adapt to market shifts quickly. This translates to increased resilience and competitiveness for businesses.
Case Studies
Financial institutions are increasingly using AI to improve their forecasting and data analysis for managing operational risk. This trend is likely to continue as IndustryARC expects the AI market to reach US$400.9 billion by 2027, growing at a compound annual growth rate (CAGR) of 37.2% during the forecast period of 2022–2027.
Deutsche Bank‘s collaboration with NVIDIA on “Financial Transformers” shows the potential of AI for early risk detection. These models can identify warning signs in financial transactions and speed up data retrieval, helping banks address potential problems quickly and ensure data quality.
AI also plays a key role in anti-money laundering (AML) efforts. By analysing transaction patterns, customer behaviour, and risk indicators, AI can identify suspicious activities for investigation. This not only improves detection rates but also streamlines the process. Google Cloud’s AML AI is a prime example; it helped HSBC find many more real risks while significantly reducing false positives, saving them time and resources.
Future Prospects
AI in finance is expected to significantly reshape financial forecasting. Analysts and executives will see widespread AI adoption for tasks like data analysis, pattern recognition, and automation. This trend is driven by the projected growth of global AI in the finance market. A report by Research and Markets predicts it will reach $26.67 billion by 2026, growing at a rate of 23.1% each year.
For investment firms, AI can make highly accurate forecasts and execute complex trading strategies, optimising investment decisions and returns. Banks will also benefit from AI’s capabilities. AI-powered data analysis can give banks a deeper understanding of their customers, enabling personalised financial services. Chatbots and robo-advisors used for customer service and financial planning will continue to evolve, becoming more advanced and even more human-like in their interactions.
Cost-effectiveness and digital-first strategies are positioning neobanks as genuine challengers to established financial institutions.
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The financial services industry is experiencing a seismic organisational shift. Increasingly, growth is moving away from traditional brick and mortar banking and towards digital-first banking experiences. Neobanks, financial institutions that operate entirely online and forego physical branches, are at the forefront of this shift.
Catering to a tech-savvy generation, these institutions prioritise convenience and user-friendliness. They focus on providing innovative features, often powered by the latest technological advancements.
How Neobanks work
Neobanks are financial technology companies that provide banking services entirely through mobile apps and websites.
They prioritise a user-friendly experience with features like real-time transaction alerts, budgeting and investment tools, and faster account opening. Neobanks may also offer access to a wider range of trading markets, including cryptocurrencies and stock exchanges.
Their cost-effective model is a key driver of their growth. Consumers benefit from lower or nonexistent monthly fees on core banking services and potentially faster loan approvals with lower interest rates, all managed through user-friendly mobile apps. These factors are fueling the significant growth of neobanks within the financial market.
Current State of Neobanks
Over the past decade, neobanks have carved a significant niche in the financial services industry. Their growth shows no signs of slowing down.
Statista predicts a user base of 376.9 million globally by 2027. This represents a remarkable twenty-fold increase from the 18.95 million users reported in 2017. While the full impact on traditional banking remains to be seen, these trends highlight a shift in the financial services sector.
Successful neobanks typically offer low or no fees on essential banking services like account maintenance, deposits, and withdrawals. They often stand out with faster loan approvals and funding compared to traditional banks, along with competitive interest rates. Additionally, these digital banking features are conveniently accessible through user-friendly mobile apps.
Future Trends
The outlook for neobanking is promising, driven largely by its core strengths – a fully digital experience and streamlined services. Neobanks empower customers to manage their finances entirely online and eliminate the need for physical branches.
While traditional banks have embraced digitalisation to an extent, neobanks offer a more comprehensive online-only solution that attracts a growing customer base.
Several factors are fueling this growth. The massive adoption of smartphones has created a mobile-first generation comfortable with managing finances through apps. Moreover, collaborations between traditional banks and fintech companies are blurring the lines between the two sectors, potentially leading to a more dynamic and competitive banking environment.
Opportunities for Growth
Neobanks are poised to disrupt the financial services industry with their innovative technology and focus on customer-centricity. These new financial institutions offer an attractive alternative to traditional banks. However, success in this competitive environment requires a smart strategy.
For neobanks to gain traction, it’s important for them to maintain strong customer acquisition and retention plans. Offering appealing account opening incentives and rewarding loyalty programs can encourage customers to switch or make neobanks their main financial partner.
Ultimately, neobanks that prioritise security, transparency, and excellent customer service while providing innovative digital banking features are best positioned for long-term success in the neobanking industry.
Challenges Ahead
Despite their emergence, neobanks face several challenges that could hinder their future growth. Cybersecurity remains a top concern, as the financial sector is a prime target for cyberattacks due to the sensitive information it handles. Data breaches can have severe consequences for both neobanks and their customers.
Building brand recognition is also a hurdle for new neobanks. Many consumers are unfamiliar with these digital banking options, therefore it’s hard for new players to establish themselves in a crowded market.
Additionally, relying too heavily on third-party partnerships can introduce risks. Conflicts of interest and less control over the customer experience can arise. This lack of control further hinders brand recognition efforts.
Conclusion
Neobanks are no longer a futuristic concept, but a defining feature of the present financial landscape. This is evident in two key trends. First, mobile apps are becoming increasingly sophisticated. Second, traditional banks are witnessing a global decline in branch networks as they shift focus to online services.
Looking forward, the future of neobanks appears promising. Grand View Research predicts a compound annual growth rate (CAGR) of 47.7 percent for the neobanking industry between 2021 and 2028.
However, a key obstacle to wider adoption lies in the varying levels of technological comfort among different age groups. While younger demographics readily embrace mobile applications, older generations may require more time to adapt.
A closer look at how artificial intelligence, machine learning, blockchain, IoT, and more technologies are transforming the InsurTech space.
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Customer expectations are changing fast. Great digital experiences set the standard, no matter the industry. This means insurance companies are no longer competing only with each other, but with every positive digital experience customers encounter daily.
Technology is changing how the InsurTech space serves its customers
Technologies like artificial intelligence (AI), the Internet of Things (IoT), and cloud computing revolutionise insurance. Outdated systems are being replaced with modern solutions, which offer greater efficiency, security, and data-driven insights.
This digital transformation enables a new generation of insurance services. For example, automated claims processing uses AI to speed up workflows and payouts. Additionally, AI helps detect fraud to protect both insurers and policyholders.
Insurance technology is also improving the customer experience. From personalised plans to user-friendly interfaces, digitalisation is making insurance more accessible and convenient.
AI and Machine Learning
People want more personalised experiences with insurance products and services. InsurTech advances, powered by AI and machine learning (ML), can help insurers meet this demand.
ML algorithms analyse massive amounts of customer data, including behaviour and habits. This allows insurers to tailor insurance products and services to individual needs and create unique customer journeys.
Beyond personalisation, AI has the potential to streamline core insurance processes. AI can speed up claim processing and streamline underwriting. Faster data access and reduced human error lead to more accurate and efficient reporting.
A report by McKinsey suggests that AI could significantly change the insurance industry. It could shift the focus from reacting to problems to preventing them. This proactive approach would benefit everyone involved—brokers, consumers, and insurers.
Blockchain Technology
Blockchain technology offers a powerful solution for data security. It stores vital insurance information, such as claims and payments, in secure blocks on a shared ledger. Any attempt to alter this data would change the entire chain and make tampering easily detectable.
A study by Boston Consulting Group shows 60 percent of insurance companies are actively investing in blockchain. Additionally, 80 percent of C-suite executives in these companies believe blockchain has the potential to significantly improve efficiency.
IoT and Telematics
Many consumers are now willing to share personal data for lower insurance costs. This willingness unlocks the potential of the IoT in the insurance industry.
IoT automates data collection from various sources, like smart home devices, car sensors, and wearables. This data becomes a key source of real-world information for insurance technology. By analysing it, insurers can improve risk assessment accuracy and refine pricing based on individual behaviour.
Telematics devices take personalised insurance a step further, particularly in car insurance. These devices, equipped with GPS and motion sensors, track driving habits in real time. They collect data on speed, location, time of day, and other factors linked to accident claims. This comprehensive data allows insurers to create even more tailored insurance policies.
Case Studies
Several insurance companies are already using InsurTech advances to streamline processes and improve risk assessment.
For example, FRISS uses AI software to quickly detect suspicious claims. Their system analyses data to find possible fraud networks and hidden patterns. With this, FRISS cuts claims handling time by 66 percent and saves insurers money.
Chubb Insurance is another example that shows the value of combining IoT devices with data analysis tools. By constantly monitoring environmental factors with sensors, Chubb can predict potential property damage. This proactive approach lets them offer personalised premiums based on risk profiles, ultimately helping policyholders avoid expensive incidents.
Future Prospects
Grand View Research projects the global InsurTech market size to expand at a compound annual growth rate (CAGR) of 52.7 percent from 2023 to 2030. This rapid transformation will be driven by advancements in various technologies, each presenting both opportunities and challenges.
As more insurance processes become digitalised, concerns around cybersecurity naturally rise. A Future Processing survey underscores this concern, revealing that 81 percent of respondents believe insurers need stronger cybersecurity policies.
The quality of data and security practices will be the cornerstones of successful InsurTech implementation. AI relies heavily on data, while strong security protects sensitive customer information. By prioritising these aspects, insurers can unlock deeper customer understanding and improve the customer experience.
Drawn by increased flexibility and convenience, retailers are embracing embedded finance solutions in the hope of opening up new revenue streams.
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Embedded finance is gaining significant traction among retailers. The term refers to the integration of financial services into non-financial applications and platforms. For example, an app that offers cashback on large purchases, or pay later features with zero interest. This new crop of digital tools is enabling retailers to strengthen customer relationships.
Retailers can create a more convenient shopping experience by providing features like flexible payment options and personalised financial advice directly within their platforms. This approach not only builds customer loyalty but also opens doors to new revenue streams from integrated financial services.
Enhancing Customer Shopping Experience
Embedded finance can keep customers engaged in the retail environment and enhance the customer shopping experience. By embedding payment options directly into their platforms, retailers can offer a faster and more convenient payment process. Customers do not need to leave the retail environment to complete a transaction.
One of the most significant benefits of embedded finance is the ability to offer point-of-sale financing. Customers can apply for funding at the time of purchase, rather than having to apply for credit separately.
Referred to as BNPL (buy now and pay later), this feature makes purchasing decisions easier and more flexible. This flexibility is driving customer loyalty. A study by Vodeno found that 40% of respondents would only choose brands offering BNPL and similar financial technology features like cashback. This number jumps to 50% for young adults.
Increasing Sales
Research by Natwest and BCG shows promising results for businesses that adopt embedded finance. Retailers saw conversion rates jump by 12%, average order value increase by 30%, and revenue rise by 7%.
Embedded finance can be a strategic tool for maximising revenue. Instead of just processing transactions, retailers can offer additional financial services for a fee. For example, a procurement platform could charge for automated reconciliation. This will save businesses time and generate new income.
Successful Implementation and Future Innovations
Several retail companies have successfully implemented embedded finance. These include Amazon with its Amazon Pay. The feature allows customers to use their payment information stored on various platforms. Another example is Walmart‘s mobile app. This platform provides customers with a variety of financial services, from paying for their groceries to managing their Walmart MoneyCard.
John Lewis has also integrated its financial services, offering customers credit cards, insurance, and personal loans directly through their retail platform. There’s also Tesco Bank, which provides a range of financial products, including savings accounts, loans, credit cards, and insurance products.
According to KBV research, the global embedded finance market is expected to reach $384.8 billion by 2029, reflecting a compound annual growth rate (CAGR) of 30%. Parallel to the growth, retailers will continue to innovate, offering more integrated financial services. These can include more sophisticated loyalty programmes, personalised financial advice, new payment options, and enhanced data analytics to better understand and serve customers.
Retailers must embrace these innovations to remain competitive and meet the ever-increasing expectations of modern shoppers. By integrating financial services into non-financial products or services, retailers not only create added value for customers but also increase customer loyalty. In addition, embedded finance also presents opportunities for retailers to increase profits.
Digital payments enable access to financial services by underserved members of society at a time when the digital divide is widening.
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The United Nations emphasises financial inclusion as a driver for economic development, including it as component eight of the Sustainable Development Goals for 2030. The World Bank defines financial inclusion as crucial economic development and social progress that ensures equal access to financial products and services.
In recent years, accessibility to financial services has improved rapidly as financial technology has advanced. The 2022 World Bank report revealed that 71 percent of people in developing countries had access to a bank account in 2021, a 42 percent jump from a decade earlier.
The key driver of this development in financial inclusion is the growth of digital payments, which surged during the COVID-19 pandemic, according to the CFA Institute.
Role of digital payments
Digital payment technologies, such as digital wallets, online mobile banking apps, and contactless transactions, contribute to the growth of financial inclusion. Compared to traditional methods, digital payments offer multiple benefits.
Reduced costs are one reason digital payments have become a significant cause of economic growth. They allow lower barriers to entry for underserved people.
With more people having digital financial accounts, the underprivileged can receive wages, government benefits, or remittances more easily.
Digital transactions provide a safer alternative to physical cash transactions. The digital records for each transaction help people manage their finances and increase transparency in businesses. They also help mitigate the risks of theft or fraudulent activities.
Accessibility
Digital payment solutions significantly improve accessibility to financial services. They eliminate geographical barriers for people living in remote areas as long as there is internet access.
Online platforms make it easier for people to conduct transactions, pay bills, and access credit and insurance services from anywhere. They also allow instant payments that happen in seconds without the need for third parties.
The accessibility of digital payments extends to people with disabilities. Mobile banking apps often include features such as voice commands, screen readers, and accessible interfaces that cater to them.
Case Studies
Many digital payment initiatives have successfully promoted financial inclusion in marginalised communities.
One of them is India’s Jan Dhan-Asdhar-Mobile (JAM) Trinity initiative, which was launched in 2014. The Pradhan Mantri Jan Dhan Yojana programme aims to provide universal access to banking facilities with at least one basic banking account for every household. This programme promotes financial inclusion in rural areas by offering zero-balance accounts with debit cards.
Meanwhile, the Aadhar programme introduces a biometric digital identity for Indian residents, simplifying access to financial services. Lastly, the Mobile Network programme focuses on growing mobile network infrastructure to facilitate digital payments.
Challenges and Solutions
Still, the challenges of achieving financial inclusion through digital payments persist. In 2022, 1.4 billion adults remained unbanked. Meanwhile, increased accessibility also comes with the consequence of more people becoming prone to potentially unscrupulous lending practices, especially since the underprivileged often lack sufficient financial knowledge to avoid such schemes.
Thus, financial education is crucial so that more people can effectively protect their wealth. The government should initiate financial literacy programmes for the people. The programmes could also be conducted through online platforms to reach more communities.
In addition, increasing security technology is also important to overcome the risk of fraudulent activities. AI technology might solve this problem, as it can efficiently detect suspicious patterns and mitigate fraud schemes.
Future Outlook
Digital payments’ future role in driving financial inclusion will become more prominent as mobile and internet penetration increases. Governments should prioritise investment in telecommunications and internet infrastructure to reach their optimal potential.
AI-powered solutions are expected to continue to develop and offer many ways to accelerate digital finance adoption. With the advancement of technology, security and customer experience will also improve.
We chatted to Gabe Perez from RiseNow about prioritising humans during technological transformation.
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RiseNow, as a procurement and supply chain strategy and design firm, is firmly plugged into the needs of the sector’s functions as they evolve. Its growth has been organic thanks to customers demanding exactly what they want. They can’t simply implement tech with the goal of ‘go live’ anymore. They need expert help to define the real outcomes.
RiseNow provides end-to-end guidance for customers. This ensures that when they implement new systems, they explore the whole picture from the beginning. It was a topic discussed in detail at DPW NYC in June, where we met up with Gabe Perez, Chief Strategy Officer.
“What we’re seeing in the market is that people are asking for guidance around operating models,” says Perez. “Our focus right now is trying to keep up with demand. There are a lot of different service providers out there.
“We’re showing RiseNow’s clients how to design, execute, and operate. So we’re really focused on helping customers end-to-end, whether they’re optimising what they currently have, or starting from a new platform.”
Humans first, then technology
As procurement continues to digitise, roadblocks that hinder technology’s effectiveness and promise of value become more apparent. One of these is implementing technology for technology’s sake. Or, simply using tech to digitise already-existing processes versus examining the why behind those processes.
“As David Rogers from Columbia Business School said, the best technology is not the most important part of digital transformation,” says Perez. “People are at the core of it. Procurement has to start focusing more on outcomes and let that drive technology. People are running to technology for answers, but they don’t have the right operating model set up by the right people. Plus, there’s a huge talent shortage.”
Addressing the talent shortage
Outside of technology, the talent shortage across procurement was a repeated topic of conversation during DPW NYC. Just as it is during CPOstrategy’s general conversations with leaders. Procurement has been too vague a concept for too long, and overlooked in the grand scheme of many businesses for decades.
“One of the issues is making roles attractive,” Perez states. “I recommend proposing the problems you’re trying to solve and asking whoever you’re interviewing: ‘how would you solve this?’ Because with all the cool tech we now have at our fingertips, they’re going to come up fresh ideas. The talent exists – they’re just not being engaged and attracted. That’s where tech comes into play.”
And technology moulded by a people-centric focus was another major theme of the day at DPW NYC. “While AI in procurement is a huge topic right now, creativity is still going to come from humans – not artificial intelligence,” Perez points out.
“You need human minds to see the value of things. This is to figure out how money can be driven out of the bottom line and into the top line. Humans are still needed for proving that procurement needs to take risks to be better. AI is a great tool, but it still needs us.”
AI, real-time monitoring, and machine learning are helping fintech firms stay ahead of growing cyber threats.
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The financial sector faces a growing threat—cybercrime.
Cybersecurity Ventures predicts a significant rise in cybercrime costs, with the total impact of hacks, breaches, and data theft potentially reaching as high as $10.5 trillion a year by 2025. As attacks become more common and more severe, mitigating these risks and preventing fraud is paramount for financial institutions and financial technology companies alike.
Luckily, ongoing advancements in technology offer fintech organisations a powerful arsenal of weapons to combat cybercrimes. Adaptive fraud prevention systems use artificial intelligence (AI) to detect and prevent fraudulent activity in real-time. These intelligent systems continuously learn from new data, allowing them to identify evolving patterns and improve cybersecurity.
Introduction to cyber fraud protection
Cybersecurity is crucial in the financial services industry, where sensitive financial data and transactions are a prime target for cybercriminals. Moreover, cyber attacks can inflict significant financial losses, not just through direct theft but also via hefty regulatory fines, legal costs, and reputational damage.
Financial institutions have a responsibility to safeguard customer trust by implementing robust cyber fraud protection measures. This includes advanced technologies like network security, intrusion detection systems, and malware protection.
By securing financial transactions and customer data, these measures not only deter cyberattacks but also mitigate their impact, fostering customer confidence in the bank’s security posture.
Common types of Cyber fraud
The financial sector occupies a bull’s-eye for cybercriminals, ranking second only to healthcare in global cybercrime costs according to theIBM Cost of a Data Breach Report 2023. Financial institutions face an average loss of $5.9 million per cyber incident, highlighting the critical need for robust cyber fraud protection measures.
These attacks come in various forms. One of the most common isphishing scams. These are attempts to trick people into surrendering sensitive information. Meanwhile, ransomware attacks aim to disrupt operations or extort money by encrypting critical data. Distributed Denial-of-Service (DDoS) attacks overwhelm systems with traffic, making essential services unavailable to legitimate customers.
Advanced cybersecurity technologies
The fight against cyber fraud necessitates sophisticated tools, and advanced technologies like AI and machine learning (ML) are playing an increasingly crucial role.
AI fraud detection uses ML algorithms to identify fraudulent activities within vast datasets. These algorithms are trained to recognise patterns and anomalies that deviate from typical user behaviour and transaction patterns. Once the patterns are identified, attackers can be purged from the system before they have a chance to steal anything of value. Cybersecurity systems powered by ML can drastically reduce the amount of time bad actors spend inside a system.
ML algorithms excel at identifying patterns and trends that might signal potential fraud. Also, by analysing big data, these algorithms can adapt quickly to evolving fraud tactics.
They can detect and alert security teams within seconds of suspicious behaviour, such as unusual purchases or login attempts from unfamiliar locations. Thanks to continuous data analysis, businesses can gain an immediate advantage, allowing them to swiftly identify and respond to suspicious activity, ultimately minimising potential losses.
Case studies
The financial sector is actively exploring the potential of AI to combat cyber fraud. Mastercard’s Decision Intelligence technology exemplifies this trend. By analysing historical spending habits, this AI solution creates a personalised baseline for each cardholder’s behaviour.
This approach is a significant improvement over traditional, one-size-fits-all methods, which often lead to false declines. AI’s contextual analysis of transactions allows it to bypass common triggers for false positives, ultimately enhancing fraud detection accuracy.
Future prospects
The future of cyber fraud protection hinges on the continued evolution of technology. One promising area lies in adaptive technologies, such as behavioural biometrics. Additionally, these systems move beyond static passwords or fingerprints, creating a unique user profile based on a person’s interaction patterns.
These patterns are ‘behavioural fingerprints’ that include typing style, mouse movements, and even how an individual holds their phone. Over time, the system learns user habits, building a digital identity that can detect deviations indicative of unauthorised access.
This approach is particularly effective because it’s nearly impossible for hackers to replicate one’s unique behavioural traits, even if they steal the password. This adds a crucial layer of security that traditional methods cannot provide.
Customer service significantly influences the overall customer experience and brand reputation. Artificial intelligence (AI) has taken customer service to new…
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Customer service significantly influences the overall customer experience and brand reputation. Artificial intelligence (AI) has taken customer service to new heights, including in the insurance industry.
Financial technology development has offered a better customer experience with enhanced accessibility and convenience. Mobile banks and digital wallets make it possible to contact the customer service team through online platforms. With the help of AI, FinTech companies escalate their services by offering more personalised, prompt, and efficient service.
AI Chatbots and Virtual Assistants
Conversational AI, which focuses on creating human-like interactions like chatbots and virtual assistants, improves customer service efficiency.
Chatbots are automated programmes that promptly address customer service queries. They can assist customers with inquiries and provide support for product information, account balances, or transaction details. AI-powered chatbots can give an immediate response and handle multiple customers at the same time.
Meanwhile, virtual assistants are voice-activated apps that can comprehend and carry out tasks based on users’ commands. These assistants offer personalised support by understanding the customers’ needs. For instance, they can deliver investment guidance tailored to customers’ risk tolerance and financial objectives.
These AI solutions can also assist human assistants by handling routine tasks, allowing them to focus on more complex work. Thus, the employment of AI assistants can reduce operational costs and effectively allocate resources to more important tasks.
Personalised interactions with AI
This approach can provide more personalised interactions by using algorithms and predictive tools to understand and respond to each customer’s preferences. AI algorithms can analyse large datasets of customers’ past interactions, browsing behaviour, and demographic information.
Meanwhile, predictive analytics tools can be used to anticipate customer needs and offer relevant financial products or services. These recommendations are constantly updated based on real-time client interactions and feedback.
24/7 Support
AI-powered customer service has the benefit of around-the-clock availability. It can operate continuously without being bound by office working hours like human-based customer service. Faster response times and enhanced availability help FinTech companies improve overall customer satisfaction.
Case Studies
Paypal, a digital wallet company, is one of the FinTech companies that has successfully used AI to improve its customer service. After implementing chatbots, PayPal experienced a 20 percent decrease in customer support costs and a 25 percent increase in user engagement. These chatbots can handle routine inquiries, resolve issues, and make personalised product recommendations.
Another example is Citi, a US retail bank that developed an AI-powered Customer Analytic Record (CAR). This programme can consolidate customer data, including financial records, used products, and interactions across online banking. The data is linked to automated decision-making AI software for analysis. The system can then recommend personalised offers to customers via text and mobile banking.
Future prospects
According to David Griffiths, Citigroup’s chief technology officer, AI has the potential to revolutionise the banking industry and improve profitability. With the continuous development of AI technology, the fintech industry can further improve its customer service.
Ronit Ghose, another executive at Citigroup, predicts that in the future, every client will have an AI-powered device in their pocket. This innovation will improve their financial lives with enhanced AI in customer service.
However, there are still concerns about AI’s scalability limitations in handling vast amounts of tasks. In addition, AI’s access to customers’ data makes security an important area to ensure its credibility. FinTech companies should ensure digital compliance to earn customers’ trust.
Integrating blockchain into financial systems promotes trust among stakeholders, from investors to regulators. This potential stems from blockchain’s transparency, immutability, and security.
The technology offers investors clarity and security. It provides a transparent view of transaction histories and asset ownership, which reduces the risk of fraud and increases investor confidence.
For regulators, blockchain serves as a tool to improve monitoring and enforcement of compliance with regulations. Moreover, the immutable nature of blockchain records ensures accurate and permanent logging of financial transactions. Additionally, aiding in audit trails and regulatory oversight, particularly in areas like anti-money laundering and know your customer (KYC) rules.
Securing transactions with immutable ledgers
Blockchain’s immutable ledger ensures that once data is recorded, it cannot be easily altered or tampered with. Each piece of information, like transaction details, is stored in blocks and protected by unique hash values.
Hash values are alphanumeric strings generated for each block, linking it securely to the previous block. This chaining ensures that any attempt to change data in one block would invalidate the entire chain. Therefore, making tampering detectable and preventing unauthorised alterations.
The security of blockchain is reinforced by its decentralised nature. Copies of the blockchain are stored across multiple computers in a network, and consensus among these nodes ensures the integrity and originality of the data.
This robust system not only enhances security but also supports applications like smart contracts. These automate and enforce agreements based on set conditions.
Blockchain for real-time auditing
Blockchain technology enables real-time auditing, thanks to its decentralised and transparent nature. This ensures auditors can verify the authenticity and integrity of financial data without relying on centralised authorities or intermediaries.
This capability not only improves audit efficiency but also strengthens trust and confidence in financial reporting. Furthermore, auditors can track transactions from their inception through to completion in real-time, reducing the risk of errors. By eliminating the need for manual reconciliation and audit trails, blockchain reduces the time and resources traditionally required for auditing processes.
Meeting regulatory demands with blockchain
The technology helps businesses meet complex regulatory requirements more effectively. As data entries are permanent and secure once recorded, blockchain ensures information cannot be altered or deleted. It provides a reliable way to consolidate and verify data needed for regulatory reporting.
For regulators, blockchain simplifies oversight by offering a shared platform where transaction details are transparent and accessible in real-time. Moreover, this decentralised approach eliminates the need for extensive manual checks and balances, making it easier to monitor and enforce compliance across various stakeholders.
The ability to streamline regulatory reporting is particularly evident in industries like reinsurance. Here, blockchain facilitates faster and more accurate reporting among insured parties, insurers, brokers, and regulators.
Case Studies
Several financial institutions have demonstrated improved transparency through their adoption of blockchain technology. For example, J.P. Morgan offers a prominent use case, which launched its Quorum blockchain platform in 2016.
Quorum, based on Ethereum, has been used for various applications like debt issuance and financial transaction settlements. Moreover, this platform enhances transparency by providing a secure and decentralised way to record and verify transactions, reducing the risk of errors and fraud in financial operations.
Similarly, the African Development Bank Group (AfDB) partnered with BanQu to develop the Supply Chain Finance Blockchain. Additionally, this platform aims to streamline supply chain finance for SMEs in Africa, making transactions more transparent and efficient. Also, by leveraging this tech, AfDB improves visibility across the supply chain, ensuring funds are allocated and tracked accurately, thereby enhancing transparency in financial operations.
FinTech Strategy met with Merusha Naidu, Global Head of Partnerships at Paymentology, to discover more about the global issuer processor
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Banks, digital banks and fintechs, around the world, trust Paymentology to issue and process all forms of cards and transactions, at scale. Paymentology offers a cloud-based platform, rich data, a global footprint and proven track record powering industry leaders and game-changers.
A global issuer processor with on the ground teams in 50+ countries across 14 time zones, Paymentology’s founders saw that the payments industry was stagnant and limited, in both capability and ambition.
In March 2021, Tutuka and Paymentology merged, resulting in a ‘payments and card processing powerhouse’. The merger combined the ultra-advanced, multi-cloud platform of Paymentology with the global reach and experience of Tutuka to revolutionise cloud-based processing globally.
Tutuka was traditionally a financial services company, that provided payment processing technologies, software and services, and application programming interfaces (APIs) for e-commerce and digital transacting across countries in Africa, Latin America, Southeast Asia, and the Middle East, while Paymentology processed for legacy banks in Europe and the UK. The merger enabled banks and fintechs to integrate into a single API, go live and issue cards almost anywhere in the world.
At Money20/20 Europe, FinTech Strategy spoke with Global Head of Partnerships, Merusha Naidu, to find out more…
Tell us about the genesis of Paymentology?
“Paymentology is a global neo processor. We work with banks and fintechs to help them issue their own cards, whether prepaid, debit or credit, virtual or physical. The beauty of the platform is that it’s fully cloud native. So, we’re scalable. We’re focused on speed to market so when you are working with a fintech, or a digital bank, it’s all about two things. How do you innovate? And then how do you go live quickly? Those are two areas of the business that we really focus on. Not only is our tech state of the art, with everything built in the cloud, all of our infrastructure is also in the cloud, including things like our connection to schemes.
We were the very first issuer processor to connect to Visa Cloud Connect, via cloud endpoints in Europe. Being first in embracing modern practices, we ensure our processes are next-generation, thanks to our fully cloud-native and digital infrastructure.
What makes us different? We operate across UK, Europe, the Middle East, Africa, Latin America and Asia Pacific; we are truly global, operating across all five regions. One of the things that makes that possible is our tech. A customer can integrate with us once and then launch across five regions if they wanted to, or multi-market rollouts. We offer a huge ability to scale using integration. Our customers are able to replicate that digital first experience across every single jurisdiction. So, whether it’s Kenya and Dubai and then Saudi Arabia and Portugal, they can have the same experience across the world.”
Tell us about your role at Paymentology?
“I’ve been with Paymentology for 14 years. Prior to taking up my current role as Global Head of Partnerships, I was the Regional Head of Asia Pacific. So, when you look at partnerships, I was asked a question recently at a talk: ‘What would my message be to issuers across the industry?’ My message is that you can’t do it alone. If you want to create truly scalable, innovative solutions, you’ve got to work with partners and collaborate with the best in class. We know we are best in class when it comes to issuer processing, but we also create ecosystem partners that close the gap when it comes to creating really valuable payment ecosystems.
Whether it’s top core banking providers, leading cloud services, or premier card manufacturers, these are the partners we collaborate with. This allows us to confidently assure our customers that we work with the best, to deliver the best, across the entire value chain.”
Tell us about some of the successful partnerships Paymentology has been involved in…
“We were the first company to deliver flip card technology for our client Mox. Paymentology embedded its global processing capability into the platform, to enable Mox to launch its ground-breaking feature to ‘flip’ between debit and credit spending on the all-in-one Mox card. This allows you to have one physical card, one virtual card number, but in the background, we link it to two different accounts. It gives the customer real flexibility around how they can spend, because if it’s everyday purchases, they can use their debit account or their prepaid account. If they have larger purchases, they can switch in the app and use their credit facility. So, it really gives customers flexibility and choice – two things at the heart of what we do.
What trends are you seeing across the FinTech landscape? What opportunities do you see for Paymentology?
“Cross-border payments for us is key. Meanwhile, everyone talks about being digital first. For us, tokenisation has helped and we have a superior partner, MeaWallet, to help us deliver this. Elsewhere, crypto has been seen as a sore point but it’s coming back and people again want that flexibility. So, having a way for customers to spend their crypto, converting crypto to free apps and making sure that data is at the heart of all that. It’s about learning about our customers, understanding what our customers want and using our data to make informed decisions, or giving our customers data so that they can make the decisions.”
And what’s next for Paymentology? What future launches and initiatives are you particularly excited about?
“We’re excited about being able to deliver flexibility, control, agility. Because the Paymentology platform is so agile, in the future you will be able to plug in even more different components into the offering. So, a customer can add in rewards and loyalty points. For example, airlines have a platinum MasterCard product, so it opens them up to all of the MasterCard loyalty rewards, airport lounges, all of those benefits. It’s all about being innovative and keeping up with that innovation and growing with customers.”
Why Money20/20? What is it about this particular event that makes it the perfect place to showcase what you do? How has the response been to Paymentology?
“Paymentology is headquartered in the UK so it’s important for us to make sure we’re representing business across Europe. This is the centre of the world for banking innovation. People look to this event to really learn about what’s happening in the industry globally and discover what trends are going to come up. What should we be doing? How can we innovate together and learn from each other? That’s one of the things I really love about Money20/20; the talks in all of the panels are so interesting and I always leave knowing more. Being in the payments industry, and especially being an issuer processor, it’s important for us to learn from the industry and understand where we need to move so that we can stay at the forefront of developments.”
Sage, the leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses (SMBs), has announced an expansion…
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Sage, the leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses (SMBs), has announced an expansion of its partnership with a leading neobank. What’s more, Stripe offers a financial infrastructure platform for businesses, to help improve cashflow management and payment processing for SMBs. The partnership is key to helping businesses to move money easier and faster
Sage partners with neobank Stripe
Stripe is trusted by millions of businesses around the world, ranging from startups to enterprises. The partnership with Stripe provides Sage customers with more options to pay and get paid quickly. Additionally, leveraging Stripe’s financial infrastructure, Sage will offer its customers a trusted solution to help ease cashflow and simplify financial processes. From streamlined checkout and payment processing, to Tap to Pay contactless payments, and auto-reconciling bank transfers.
Also, in partnership with Stripe, Sage intends to expand its payments ecosystem. Therefore, ensuring that a growing number of its customers have access to services that will help them to manage their cashflow.
“This partnership signifies a shared vision between Sage and Stripe. To transform how SMBs pay and get paid, helping our customers to simplify cashflow management,” said Walid Abu-Hadba, Chief Product Officer, Sage. “Furthermore, we are committed to harnessing the power of technology to drive innovation, enhance efficiency, and pave the way for growth.”
Addressing cashflow problems
Supporting customers globally, Stripe’s integration into Sage is currently available in the UK through Sage Accounting, Sage 50 and Sage 200. Also, Stripe is fully integrated into Sage Network, enabling customers to easily plug into the broader Sage ecosystem. Moreover, they can choose additional applications and features such as Sage Connect, automating AR and AP processes to help manage their cashflow and payments.
The expansion of the partnership will see customers benefits including:
Streamlined checkout and payment processing: SMBs with cash trapped in outstanding invoices can make it easier for customers to review their accounts. They can pay with Sage Connect’s customer account portal and Stripe Checkout.
Multiple payment methods: Accept payments from customers through different methods including digital wallets, cards and bank transfers. Additionally, Stripe uses machine learning to surface the most relevant payment methods for customers depending on their location.
Unified payments experience: Collect payments online and in person through Tap-to-Pay, for seamless, in-person, contactless payments No terminal hardware required.
A safe and secure payment experience: Leveraging Stripe’s advanced security protocols and compliance with global financial regulations. Customers can be assured transactions are protected against fraud and data breaches. Providing peace of mind for both businesses and their clients.
Auto-reconciling bank transfers: Saving time with automatic reconciliation. Finally, bank transfers enable customers to pay invoices via bank transfer, streamlining the payment and reconciliation process.
“Sage understands the importance of innovating for its customers. We’re thrilled to be part of its journey,” said Eileen O’Mara, Chief Revenue Officer at Stripe. “Stripe is building a suite of software-defined financial services. Ultimately, we can enable leading platforms like Sage to provide integrated features that make their customers’ lives easier.”
Lastly, this partnership adds to the broad range of payments and banking partners within Sage’s ecosystem.
The financial services industry is witnessing a shift towards digital-first solutions. Advancements in technology and infrastructure have fuelled the rise…
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The financial services industry is witnessing a shift towards digital-first solutions. Advancements in technology and infrastructure have fuelled the rise of neobanking. It offers convenient, cashless transactions through digital banking features.
From just 12 neobanks operating globally in 2015, the number has skyrocketed to 300 as of 2023.Juniper Research expects neobank users to reach 850 million by 2030.
Introduction to Neobanking
Neobanks are digital-only banks. They rely on mobile apps and web interfaces to deliver their services. Customers access and manage their accounts, conduct transactions, and receive support from their devices. This approach allows neobanks to offer lower fees and greater convenience compared to traditional banks. There are ten key features differentiating successful neobanks.
Feature 1: User-Friendly Interface
Neobanks prioritise user-friendly and intuitive interfaces within their core platform—the mobile app. The app lets customers conduct all essential banking functions directly from their smartphones.
Neobanks eliminate traditionally time-consuming processes. Account openings are conducted entirely digitally. They also offer near-instant identity verification, funding, and activation of debit cards and accounts.
Feature 2: Personalised Services
Neobanks leverage artificial intelligence (AI) and machine learning (ML). This data-driven approach helps them understand their customers better. They analyse spending habits and financial behaviours to provide personalised financial advice. This empowers customers to make informed decisions about their money.
Neobanks also use customer data to create targeted marketing campaigns. These campaigns align with individual interests and financial goals. Neobanks’ real-time, personalised approach enhances customer satisfaction and strengthens customer retention and loyalty.
Feature 3: Robust Security Measures
Security is essential for neobanks, as they handle sensitive customer data and countless transactions. Neobanks embrace advanced technologies like AI-powered fraud detection and blockchain encryption. Multi-factor authentication (MFA), encryption protocols, and biometric identification form the first line of defence against cyberattacks.
By prioritising robust security, neobanks can offer the innovative digital banking features customers expect from financial technology. This also ensures they stay ahead of constantly evolving threats and vulnerabilities in the digital banking sector.
Feature 4: Innovative Products
Traditionally, launching new banking features took years. Now, with ML models analysing large amounts of customer data, neobank teams can develop and launch new digital banking features in just weeks. Moreover, this allows them to stay ahead of market trends and meet customer demands quickly.
Feature 5: Seamless integration with other services
According to PYMNTS, consumers are increasingly interested in super apps, with nearly 70 percent wanting a one-stop platform for managing digital finances. This demand pushes banks to embrace open banking.
Neobanks can collaborate more effectively by sharing their APIs with financial technology companies, digital payment providers, and other platforms. Open APIs grant access to a wider customer base, fostering partnerships between banks and e-commerce firms. This integration allows them to meet consumer demand for a more comprehensive digital banking experience.
Feature 6: Low Fees
One key advantage of neobanks over traditional institutions is their cost structure. Without the burden of physical branches, neobanks benefit from lower overhead expenses. This translates to a competitive edge in terms of fees and rates.
Neobanks can charge zero fees for services that typically incur charges at traditional banks. Additionally, they can also provide more attractive interest rates on savings accounts. These factors can be appealing to cost-conscious consumers.
Feature 7: 24/7 Customer Service
The use of AI and chatbots helps neobanks deliver 24/7 customer support. Customers do not have to wait on hold or schedule branch appointments. Instead, they can receive prompt answers to inquiries or resolve issues at any time.
Feature 8: Hassle-Free Account Onboarding
Neobanks are known for their swift account opening experiences. This is achieved through leveraging advanced technology. Intuitive mobile apps and web platforms let customers open accounts remotely within minutes. Also, technologies like AI-powered identity verification and digital document submission expedite the onboarding process.
Feature 9: Automated Saving Feature
One of the unique features offered by many neobanks is automated savings functionality. This functionality allows customers to set up automatic transfers from their checking accounts to their savings accounts. Additionally, these transfers can be triggered by various events, such as on payday or when a certain balance is reached in the checking account.
Feature 10: Cryptocurrency Services Integration
To expand their offerings and cater to a growing interest in digital assets, some neobanks are integrating cryptocurrency services into their platforms. Also, customers can manage their cryptocurrency holdings directly within their neobanking app and simplify the process of buying, selling, and sending these digital assets.
Case Studies
A successful example of neobanks is Revolut. The bank that allows users to buy, sell, and transfer cryptocurrency directly within their app. Revolut also removes any hidden fees associated with traditional cryptocurrency exchanges.
Conclusion
Neobanks’ core strength lies in its focus on flexibility and user convenience. Furthermore, designed specifically for the digital age, they prioritise a seamless user experience. Their focus on mobile-first design and intuitive interfaces makes banking easier and more convenient. This approach allows neobanks to offer a wider range of digital banking features compared to traditional banks’ online platforms.
An efficient and timely claims process is important in the insurance sector. Many companies use insurance technology or InsurTech innovations…
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An efficient and timely claims process is important in the insurance sector. Many companies use insurance technology or InsurTech innovations to streamline this complex process.
The traditional insurance claim process is commonly stressful, lengthy, and vulnerable to fraud. However, by embracing digital innovations, such as AI, big data analysis, and machine learning, insurance companies can simplify this process and give a more positive customer experience.
Role of InsurTech
InsurTech solutions streamline claims processes by using user-friendly mobile apps or websites. Customers do not need to make cumbersome phone calls, paperwork, or office visits. Instead, claims can be initiated and managed seamlessly through the digital platforms.
InsurTech accelerates the claims process, reduces turnaround time, and minimises customers’ stress. It also provides an opportunity for immediate insurance claim submission, such as after a car accident.
Automation
Digital insurance employs advanced technology like AI and automation, unlocking many benefits for customers’ claim processes. Reporting automation tools play an important role in claims processing by simplifying and accelerating the process.
An automated system can be applied for data entry and extraction. AI algorithms can scan and extract document details from police or medical reports and automatically fill out digital claim forms.
Meanwhile, automated chatbots allow customers to access around-the-clock services. Policyholders can ask questions, report claims, and get information more conveniently using this feature rather than relying on office time-bound human employees.
Fraud Detection
InsurTech enhances fraud detection in claims processing by using predictive analytics tools. Fraud detection is important for insurance providers to avoid false claims or exaggerated losses that can lead to significant financial losses.
AI machine learning tools can detect suspicious patterns from a vast amount of data, allowing insurers to identify potential fraud. This helps insurance companies reduce losses from fraud and mitigate potential risks.
InsurTech Case Studies
PwC reveals that 57 percent of insurance companies have invested in AI and machine learning technologies to enhance operational efficiencies.
Lemonade, a digital insurance company for renters and insurance, has successfully used AI to underwrite policies and claims. The company achieved a faster and more transparent claim process for customers. The digital automated process also reduces the processing time and keeps costs down.
Meanwhile, Metromile, an InsurTech company that provides pay-per-mile car insurance, offers AI-assisted automated claims named AVA. AVA can give guidance through damage photo collection and verify coverage. This system can also connect customers to repair shops and offer the option of reserving a vehicle if they have rental coverage.
Future Prospects
InsurTech’s potential impact on claims processing is expected to make a significant shift in the future. AI will be more integrated into the financial industry and will reshape the claim processes.
According to McKinsey’s prediction, claims processing will be largely automated by 2030, with advanced algorithms handling initial routing. IoT sensors and emerging technologies like drones will replace traditional methods for reporting claims. Policyholders will also use video streaming for damage assessments that AI can immediately assess to detect fraudulent activities.
Automated customer chatbots will manage most interactions, while human involvement will only be for complex claims and risk management. Integrated IoT and data aggregation will allow insurers to file accurate claims rapidly during major disasters.
Small businesses are the backbone of the global economy. The World Trade Organisation reports that small and medium-sized enterprises (SMEs)…
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Small businesses are the backbone of the global economy. The World Trade Organisation reports that small and medium-sized enterprises (SMEs) make up over 90 percent of all businesses, employ 60 to 70 percent of the workforce, and contribute 55 percent of GDP in developed economies. Despite their significance, they may face barriers to accessing financial services. Embedded finance services offer small businesses innovative solutions to traditional financial hurdles.
Embedded finance combines financial services with non-financial experiences. Technology companies partner with banking institutions to offer these services directly within their platforms. This means customers can access financial tools, like making payments or managing accounts, without leaving the platform.
Analysts atGlobal Market Insights predict the embedded finance market will reach a compound annual growth rate (CAGR) of over 29 percent between 2023 and 2032. A key driver of this growth is the increasing demand for faster and easier transactions.
Embedded finance allows businesses to offer sophisticated payment and banking services directly to their customers and suppliers. This removes many of the frictions associated with business-to-business (B2B) payments, especially as these transactions are typically made in real-time.
By embedding financial services into their offerings, businesses can increase customer loyalty, increase revenue opportunities, and become more competitive in the market. This integration allows customers to access various financial services without hassle, creating a seamless customer experience.
It also offers small businesses innovative solutions to traditional financial hurdles, such as cross-border commerce and evolving security and privacy requirements. Embedded finance also helps businesses provide services such as loans, insurance, debit cards, and investments through their platforms.
Access to credit
Getting credit remains a major challenge for many small and medium-sized businesses. A Goldman Sachs report found that 70% of small businesses struggle to access funding for daily operations, inventory management, and growth. According to the same report, this lack of financing hinders 76% of SMBs.
Embedded finance offers a potential solution. Businesses can integrate financing options, like credit cards, directly into their services. This provides much-needed financial flexibility for their small business customers. Improved cash flow for small businesses strengthens the partnership between both parties. The larger company becomes a key player in the small business’s growth journey.
Improved cash flow with Embedded Finance
Cash flow is a significant challenge for small businesses as many operate on thin margins. Embedded finance can help small businesses overcome that by integrating payment processes and real-time financial data into business operations.
For example, point-of-sale (POS) systems with embedded payment options allow businesses to receive funds instantly. Meanwhile, automated invoicing and payment reminders can reduce the time and effort required to chase down payment payments.
Enhanced Customer Experience
By integrating payment solutions directly into their platforms, businesses can offer features like one-click payments, installments, and digital wallets. This streamlines the checkout process and boosts customer satisfaction.
Loyalty programmes also become more attractive with embedded finance. Businesses can reward returning customers with discounts, cashback, or exclusive offers, strengthening brand loyalty and driving repeat business.
For example, Deliveroo’s ‘Deliver Money’ feature streamlines food delivery by enabling real-time payments. This eliminates the need for cash and waiting for change, speeding up transactions and creating a smooth checkout experience. Faster access to earnings empowers small businesses to fulfil orders quicker and potentially offer special promotions.
The digital banking industry faces cybersecurity challenges. A Statista report shows a 10 percent jump in global malware attacks in…
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The digital banking industry faces cybersecurity challenges. A Statista report shows a 10 percent jump in global malware attacks in 2023, reaching 6.06 billion incidents.
Cybercriminals are growing more skilled, leading to more frequent data breaches that expose vulnerabilities in banking security. Moreover, effective risk management and strong network protocols are essential to securing digital banking operations.
Introduction to Cybersecurity in digital banking
As online transactions become the norm, strong cybersecurity measures become more crucial. Banks keep sensitive financial data and handle high-value transactions, making them prime cyberattack targets.
Effective cybersecurity is a multi-layered approach. Also, it combines advanced technology, strict policies, and constant monitoring to fight cyber threats. These security measures shield not only a bank’s finances but also customer personal information.
For that reason, cybersecurity is the foundation of trust and reliability in finance. Without strong security protocols, the balance between innovation and managing risk is disrupted, potentially shaking customer confidence in digital banking.
Early Cybersecurity practices
The rise of the internet gave birth to a new genre of malicious activity. Cybercriminals emerged to target this new frontier. They launched worms, malware, and phishing attacks.
In response to these escalating threats, the 1990s saw the introduction of firewalls and antivirus software. Additionally, these early security measures acted as barriers between networks to protect systems from unauthorised access.
Cybercriminals constantly develop new viruses and threats. Likewise, antivirus companies continuously create new software patches and signature updates to stay ahead. Despite that, the possibility of new threats slipping through these defences remains a challenge.
Technological advancements
Fraud is a major challenge for financial institutions. Artificial intelligence (AI) has emerged as a powerful weapon in the fight against this threat.
This technology excels at detecting various types of fraud. AI algorithms can detect suspicious activity in real time, helping prevent fraud before it happens.
AI solutions go beyond simple detection. By creating detailed profiles of each customer and tracking their activities, AI can predict potential risks and prevent fraud proactively.
Current Best Practices
A strong foundation is critical to banking security. This includes constantly checking for weaknesses through risk assessments. Digital banks must update their security protocols regularly to keep pace with changing risks. Collaborations with other financial institutions and government agencies help banks stay informed about the latest threats and how to respond.
Data classification is also essential. Banks need strict controls on who can access sensitive information. Employee security training must be regular to make them aware of threats.
Case Studies
The digital bank Starling Bank partnered with cybersecurity firm HackerOne in 2019. This partnership created a streamlined system for anyone to report weaknesses found in its apps and website.
The initiative initially focused on specific areas and common vulnerabilities. This collaboration revealed valuable insights into weaknesses often missed during standard testing. The project’s findings allowed Starling to develop automated detection tools that proactively prevent security issues.
Future Trends
A report byStatista predicts the global cybersecurity market will hit $271.90 billion in 2029, highlighting the growing need for strong defences in digital banking. While still new, quantum computing presents a future hurdle. Its ability to crack current encryption methods means new, quantum-resistant cryptography needs to be developed for banking security.
However, machine learning and AI are expected to be adopted more widely in cybersecurity. Beyond just reacting to threats, financial institutions will also increasingly focus on proactive threat hunting. This means identifying and stopping potential vulnerabilities before they can be exploited.
The banking industry is slowly adopting artificial intelligence (AI) technology. It offers many benefits for financial institutions, from upgrading customer…
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The banking industry is slowly adopting artificial intelligence (AI) technology. It offers many benefits for financial institutions, from upgrading customer experience to automating menial tasks. However, many are still cautious about using AI in certain areas, such as regulatory compliance management.
Given the continuously evolving legal requirements, good regulatory compliance management is crucial for banks. AI solutions can help effectively manage compliance by automating repetitive tasks, detecting suspicious activity, and providing real-time insights.
Automated compliance monitoring with AI
Artificial intelligence allows banks to perform continuous tasks around the clock with automated compliance monitoring. The previously labour-intensive work can be done more efficiently to ensure the bank follows all regulatory obligations.
The bank’s compliance teams usually handle monitoring processes, but AI automation can reduce costs. The compliance team can also focus on more important tasks rather than repetitive work.
The increased efficiency also means reduced compliance risk and non-compliance damage like fines.
Risk management
Financial institutions face regulatory compliance risks in various areas, which can lead to legal sanctions, financial loss, or a bad reputation. Advanced AI solutions can aid in risk management by identifying and mitigating risks more effectively.
AI-powered solutions can develop more accurate risk models and provide real-time responses. Many banks use this technology to help streamline compliance while improving the security of sensitive financial data. Furthermore, AI can detect compliance gaps and ensure adherence to laws and regulations.
Data analysis
AI can quickly analyse large volumes of data, a novel capability in the industry. A data analysis system can be designed to keep track of the latest regulatory changes and ensure the bank remains compliant.
Machine learning models can identify suspicious patterns and detect anomalies to report any breach of regulation. They can also analyse historical data and predict compliance risks. These allow banks to mitigate risks and address compliance issues before they escalate.
Case studies
Several banks have successfully used AI for regulatory compliance solutions.HSBC, for instance, uses AI-powered Know Your Customer (KYC) verification. This system can analyse customer data quickly, identify potential risks, and alert compliance officers for investigation.This bank also used Google Cloud’s Anti Money Laundering (AML) AI to combat and detect fraudulent activities in real-time. With these, HSBC has reduced the verification time by 80 percent and experienced a significant reduction in false positives.
Meanwhile,Danske Bank has also earned benefits from using fraud detection AI. The bank witnessed a 60 percent reduction in false positives and a notable decrease in fraudulent activities.
Future outlook for AI in regulatory in compliance
AI solutions are predicted to fundamentally change financial institution compliance management in the next five years, according to McKinsey. In the future, implementation for regulatory compliance in banks will be more widespread. Over 80 percent of C-level executives who participated in an Accenture survey planned to commit 10 percent of their AI budget by 2024 to address regulatory compliance.
AI offers many benefits, and as accessibility to this financial technology increases, more financial institutions will be inclined to adopt it, according to theFinancial Stability Review.
Technology will evolve, giving better automation capabilities, more extensive data analysis, and enhanced interpretation. This could further reduce the manual effort required in the banking industry.
As adoption increases, ensuring the AI systems used are ethical and unbiased is necessary. Thus, banks need to provide transparency for AI in banking and adherence to guidelines.
Blockchain payments are becoming more popular. In 2023, the adoption of blockchain payments like cryptocurrencies reached a new height of…
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Blockchain payments are becoming more popular. In 2023, the adoption of blockchain payments like cryptocurrencies reached a new height of 420 million users globally, per a Triple-A report. This number is an 800 percent increase compared to the previous year.
Blockchain is a decentralised digital ledger that records and verifies transactions through a network of computers. Unlike traditional payment methods, blockchain payments occur directly between parties. Each transaction is stored in a ‘block’ linked to previous blocks, forming a chronological chain.
The technology provides enhanced security and speed for cross-border payments. International payments used to be a complex process due to the different currencies and banking systems involved. However, the technology can simplify transaction processes significantly.
Speed and efficiency
Blockchain payments revolutionised traditional cross-border payments by enabling faster and more efficient transfers.
The decentralised network used in blockchain eliminates the need for a central authority. It simplifies the verification for transactions and avoids process delays. The technology also allows direct peer-to-peer transactions with no extra parties.
Thus, settlement speeds are much faster than in traditional banking systems. Unlike traditional ones, blockchain payments can be made within minutes instead of lengthy periods of days.
Cost reduction
Blockchain cross-border transactions come with significantly lower transaction fees than traditional systems. This is mainly due to the absence of intermediaries.
It also allows users to get lower currency fees than traditional modes. Moreover, cryptocurrency options offer no currency fees at all.
Security enhancements with blockchain
The security systems used by traditional banks involve third parties, which often means heightened vulnerability. The additional parties might experience operational issues that can affect the banks. Each third-party involvement adds possible risks to the main payment system. Blockchain payments remove the need for additional parties and enhance security with better transparency.
They use a decentralised network where multiple network participants verify and record each transaction. This makes it nearly impossible for system manipulation incidents to happen.
The technology also allows the use of smart contracts. These are digital contracts stored in a blockchain that automatically enforce themselves when specific conditions are met. These AI-powered contracts reduce reliance on transaction intermediaries and avoid potential fraud or errors. This contrasts with traditional systems, which require third parties to safeguard information
Case studies
Some financial institutions have already used blockchain for cross-border payments. Ripple is a prime example of blockchain technology’s effect on cross-border transactions. Its native cryptocurrency, XRP, plays an important role in this. Cryptocurrency can aid faster and cheaper international transactions. Moreover, its worldwide network of financial institutions allows a near-instantaneous settlement.
In the trade finance sector, cross-border payments play an important role. Platforms like Marco Polo have included blockchain payment options in their services.This simplifies and better secures trade financing transactions.
E-commerce platforms also included these payment options, like Bitcoin, to increase global sales. One of the online platforms that accept Bitcoin payments is CheapAir, an online travel agency. Another one is NewEgg, an e-commerce platform for computer parts and consumer electronics.
Future prospects for blockchain payment systems
Blockchain technology is still evolving and more companies will likely adopt blockchain payment systems. The rising need for faster and more secure global payments is expected to drive the broader adoption of blockchain payments.
Among thefuture trends that involve blockchain payments for cross-border transactions is the rise of central bank digital currencies (CBDCs). CDBCs are a digital version of national currency that is more efficient for cross-border transactions.
More blockchain-based platforms will emerge and further streamline international trade finance processes. These platforms will facilitate end-to-end trade finance, including documentation, tracking, and payment.
The security for blockchain transactions will continue to develop, as zero-knowledge proofs and advanced encryption are increasingly used.
Partnerships with traditional financial institutions and global payment networks will expand. This can further enhance the accessibility and adoption of blockchain payments.
Episode Six (E6), a global provider of payment processing and digital ledger infrastructure, has announced that its cloud-based solution offering…
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Episode Six (E6), a global provider of payment processing and digital ledger infrastructure, has announced that its cloud-based solution offering payments-as-a-service, is now available on the Amazon Web Services (AWS) Marketplace.
Episode Six on AWS Marketplace
AWS Marketplace is a curated digital catalog, Customers can use it to find, buy, deploy, and manage third-party software, data, and services to build solutions and run their businesses. By listing the E6 solution on the AWS Marketplace, E6 is extending its technology offerings to a vast network of over 330,000 active AWS Marketplace customers. Furthermore, it provides them with a seamless way to find, purchase, and deploy its configurable card issuance and virtual accounts platform.
E6, who have created and operate a globally distributed issuer processor and digital ledger infrastructure, will now be available in AWS Marketplace. E6 operates across 14 AWS availability zones including regions such as the United States, Europe, Singapore, Australia, Japan and Indonesia.
AWS customers will be able to simplify how they engage third-party cloud-based technologies to modernise their payment technology, and build digital-first products while using existing AWS committed spend.
Cloud-native platform
E6’s cloud-native platform, TRITIUM®, provides a real-time ledger that can work with an organisation’s existing infrastructure. This empowers AWS clients to build and launch any modern card product, without constraints of legacy technology.
Said Brian Muse-McKenney, Chief Revenue Officer at Episode Six said: “One of the biggest challenges our industry is facing right now is providing critical payment systems with high availability to prevent downtime, while simultaneously having the flexibility and power to quickly deploy feature-rich products. Our cloud-based solution offers AWS customers the assurance that there’s availability, scalability and extensibility, allowing us to enhance our clients’ services, without impacting their core banking systems.”
In addition, AWS customers can now access advanced payment solutions more conveniently, through the AWS Marketplace. This will provide banks, technology companies and brands with greater cost efficiency, helping them stay competitive in their respective markets.
Modernising digital payments
John Mitchell, CEO & Co-Founder at Episode Six, said: “At E6, we’re committed to working with customers to modernise their payment services. This listing is an important development in our partnership as it allows AWS customers the ability to find and deploy the E6 cloud solution seamlessly. The AWS Marketplace is another new channel we’re proud to open to offer customers access to our technology, and to allow them to leverage their AWS committed cloud spend more easily.”
As an AWS ISV Accelerate Partner, E6 is actively co-selling with AWS, and driving accelerated sales cycles as part of connecting with the AWS Sales organisation to support leading FSIs and tech companies that are modernising their payments on AWS.
Neobanks, the digital-first financial institutions operating without physical branches, have emerged as a potent force in the financial services industry….
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Neobanks, the digital-first financial institutions operating without physical branches, have emerged as a potent force in the financial services industry. Leveraging cutting-edge banking technology and a laser focus on customer experience, they are challenging traditional banks’ dominance.
Neobanks operate entirely online, offering a suite of financial services—from current accounts and debit cards to money transfers and budgeting tools—all seamlessly integrated through user-friendly mobile apps. Their core value proposition lies in:
Convenience: With their 24/7 access to banking services, they eliminate the need for physical branch visits.
Lower Fees: Decreased overhead charges for maintaining accounts and conducting transactions.
Seamless User Experience: Intuitive mobile apps prioritise user experience with streamlined account management and personalised financial tools.
Financial Inclusion: Neobanks can foster financial inclusion by offering services to those with limited access to traditional banking.
Neobanking benefits
Compared to traditional banks, neobanks excel in user experience and fees. Neobanks offers quick and paperless online applications and a mobile-first approach, allowing customers to access services quickly anytime, anywhere. Their services incur lower fees, with transparent pricing structures.
Consumers, particularly the tech-savvy generation, are increasingly drawn to neobanks due to the accessibility and convenience they bring to the table. The ability to manage finances anytime, anywhere resonates with nowadays on-the-go lifestyles. They are also cost-efficient, offering lower charges that result in direct savings for consumers.
Neobanking in numbers
In 2020, the global neobank market was valued at US$ 18.6 billion, according to a report by Mordor Intelligence. It is expected to record US$ 333.4 billion in 2026. This figure represents a CAGR of 50.6 percent. With a user penetration of 3.89 percent in 2024, the average transaction value per user is US$21,110 in 2024, according to Statista. In 2028, it is predicted that there will be 386.30 million neobank users worldwide.
Some of the biggest neobanking names include Chime. Serving 14.5 million users in 2022, around nine million relied on Chime as their primary bank., as reported by Forbes. In 2024, the number of users grew to 22 million, more than that of SoFi, Dave, MoneyLion, Varo Bank, and Current combined, also as reported by Forbes.
The aforementioned names are not small players either. Varo, for example, managed over 7 million accounts in 2023. Likewise, SoFi recorded 8.1 million users using its services in the first quarter of 2024, a 2.5 million, or 44 percent, increase from 2023’s last quarter.
The rise of neobanks has forced traditional banks to re-evaluate their strategies. Many banks have undergone a digital transformation, investing in mobile banking platforms and improving user experience to compete with neobanks’ digital agility. Traditional banks are also securing partnerships and acquiring neobanks to absorb expertise and expand service offerings.
Future Outlook
The future of financial services may see a more collaborative landscape between neobanks and traditional banks. Neobanks may find value in partnering with established institutions for broader reach and access to a wider range of financial products. Conversely, traditional banks may leverage neobanks’ technological expertise and customer focus to enhance their offerings.
The FinTech sector has changed how we manage our money. From mobile banking apps to robo-advisors, FinTech offers a new…
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The FinTech sector has changed how we manage our money. From mobile banking apps to robo-advisors, FinTech offers a new level of convenience and efficiency. But with this convenience come challenges and cybersecurity responsibilities: safeguarding the vast amount of sensitive financial data entrusted to these platforms.
Cybersecurity is no longer an afterthought for FinTech companies; it’s an essential foundation for their success. Breaches exposing financial information can have devastating consequences, not just for the companies involved but for their users as well.
Understanding these cyber threats is crucial for FinTech companies aiming to safeguard their operations and customer data. Here are the top 10 cybersecurity risks FinTech firms must be aware of in 2024.
1.Phishing Attacks
Phishing attacks trick people into divulging personal information. Cybercriminals often pose as legitimate companies through emails, texts, or phone calls. They llure victims into clicking malicious links or revealing passwords.
Phishing attacks significantly threaten financial companies because they target the human element rather than technological weaknesses. Hackers impersonate trusted sources like banks or colleagues to trick employees into revealing sensitive information or clicking malicious links. It can lead to data breaches, financial losses, and account takeovers.
2. Ransomware
Ransomware attacks involve cybercriminals holding sensitive data hostage and demanding a ransom from the victim. FinTech companies are particularly vulnerable to ransomware attacks because they rely on digital systems and customer financial data.
These attacks can impair operations, damage reputations, and lead to significant financial losses. They can be devastating, as there is no guarantee that paying the ransom will result in the safe return of the data.
3. Insider Cybersecurity Threats
FinTech companies may face a unique cybersecurity threat from their employees, known as insider threats. These insiders can be malicious, accidentally negligent, or even tricked into compromising sensitive data. Malicious insiders might steal financial information or sabotage systems for personal gain. Negligent insiders could leave data exposed or fall victim to phishing scams, unintentionally giving away access.
4. DDoS Attacks
Distributed Denial of Service (DDoS) attacks overwhelm online systems with traffic, making them inaccessible to legitimate users. FinTech firms are attractive targets for these attacks because they offer multiple entry points (banking systems, online accounts) and prioritise constant service availability.
DDoS attacks can severely hurt a FinTech company’s reputation and finances by causing downtime, raising security concerns among customers, and potentially leading to data breaches during the distraction.
5. Malware
FinTech companies are prime targets for malware attacks, accounting for 19 percent of all attacks and suffering nearly US$18.3 billion in losses in 2017. While the number of traditional banking malware strains is decreasing, it doesn’t represent a decline in overall threat. Instead, attackers are developing more sophisticated malware that uses techniques like obfuscation and slow, staged attacks to bypass antivirus detection.
6. Data Breaches
FinTech companies are under fire due to data breaches exposing sensitive financial information. Hackers exploit security flaws to steal user data, leading to financial losses, identity theft, and damaged trust. To combat this, strong encryption methods like end-to-end encryption and tokenisation can scramble data, making it useless to attackers.
7. Mobile Security Risks
Despite offering convenient access to financial services, mobile apps are a double-edged sword for FinTech companies. These apps are vulnerable due to their popularity, making strong security practices essential. Regular security updates, secure coding from the start, and robust data encryption during transmission are crucial to patching weaknesses.
8. Third-Party Cybersecurity Risks
The reliance on third-party vendors for services and integrations creates a security blind spot for FinTech firms. To address this, thorough vetting through due diligence and vendor risk assessments is crucial before forming partnerships.
9. API Vulnerabilities
FinTech companies rely heavily on Application Programming Interfaces (APIs) to enhance customer interfaces and share information across systems. While APIs are essential for data exchange, they also open doors for cyberattacks.
To fortify their defences, FinTech companies need to focus on secure API design with solid authentication methods (like OAuth or API keys), constant monitoring, and regular security assessments to identify and fix weaknesses before they become exploited.
The use of artificial intelligence (AI) and machine learning (ML) has increased in FinTech for decision-making processes. While beneficial, these systems also present risks if they make inaccurate decisions based on incorrect data. Rigorous testing and monitoring of AI and ML systems are necessary to minimise these risks.
Steps to mitigate threats
The cybersecurity threats facing FinTech in 2024 are varied and complex. FinTech firms must prioritise cybersecurity to protect customer data and maintain trust. By researching technology usage, training employees on cybersecurity, regularly monitoring suspicious activity, and building advanced security systems, FinTech companies can improve their defences against these evolving threats.
Neobanking, the fusion of technology and financial services, is reshaping the banking landscape. As we look towards the future, neobanks may bring transformative changes that will impact financial institutions worldwide.
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Neobanking emerged around 2017 as a new model in banking, offering fully online services without physical offices and branches. It has rapidly evolved, attracting a growing customer base with its convenience and accessibility. As we enter a new banking era, several predictions will shape the future of neobanking.
There are several key trends and predictions for the future of neobanking, such as the growth of AI-powered services, the increasing focus on cybersecurity, the expansion of neobanking services, and more. These insights are essential for financial leaders facing the evolving financial technology landscape.
1. AI-powered Services
Artificial intelligence (AI) is set to transform neobanking. Financial institutions are increasingly using AI to enhance their services. AI-driven features, such as personalised financial advice, automated customer support, and advanced fraud detection, will become standard offerings. These technologies will enable neobanks to provide more accurate risk assessments and deeper insights, allowing human operators to focus on strategic improvements.
2. Integration with Existing Tech
Integrating emerging technologies such as blockchain, Internet of Things (IoT), and 5G also opens new possibilities for neobanks. These technologies can enhance transaction security, provide real-time data insights, and enable more efficient banking operations, further driving the evolution of neobanking.
3. Expansion of Neobanking Services
Neobanks should diversify their service offerings to meet the evolving needs of their customers. Beyond traditional banking services, we can expect innovations in areas such as personal finance management, investment advisory, and integrated payment solutions. These expanded services will position neobanks as comprehensive financial hubs that fulfil various financial needs.
4. Focus on Cybersecurity in Neobanking
As neobanks operate entirely online, cybersecurity becomes increasingly important. Protecting customer data from cyber threats is critical to maintaining trust. They should anticipate a significant investment in advanced cybersecurity measures, including encryption, multi-factor authentication, and continuous monitoring. They must ensure strong security protocols to prevent data breaches and protect their reputation.
5. Strategic Partnerships
To remain competitive, neobanks will likely form strategic partnerships with traditional banks. These collaborations are a win-win: neobanks gain access to established infrastructure and a broader customer base, while traditional banks benefit from cutting-edge technology. Ultimately, such partnerships will enhance customer experiences by combining the strengths of both banking models.
6. Regulatory Adaptation
The shift in the landscape requires regulatory frameworks to adapt. Governments and regulatory bodies will be crucial in ensuring fair competition and consumer protection in this evolving environment. We can expect new regulations that address the unique challenges posed by digital banking, promoting innovation while safeguarding financial stability.
7. Enhanced Customer Experience
The future of neobanks hinges on their ability to deliver a seamless digital experience and bridge the gap in customer service. Building trust and replicating the human touch, strengths often associated with traditional banks, will be crucial in converting users into primary customers. The shift in focus will be vital for driving long-term profitability.
8. Banking-as-a-Service (Baas)
Beyond their core offerings, neobanks may disrupt the financial landscape further through Banking-as-a-Service (BaaS). Using their expertise and technology, they can empower other businesses to offer embedded financial services, creating a win-win situation for both parties.
9. Green Banking Initiatives
Sustainability will become a priority for neobanks. We expect to see an increase in green banking initiatives, such as offering eco-friendly financial products and investing in sustainable projects. They can leverage their digital platforms to promote environmentally responsible banking practices.
10. Global Expansion
Neobanks will expand their reach globally, entering new markets and catering to an international customer base. The expansion will be driven by the increasing demand for digital banking services and the universal appeal of innovative financial solutions.
A neobanking future
The future of neobanking is bright, with a dynamic and evolving landscape supported by AI, advanced security, and broader financial product offerings. As the model matures, the most successful players will likely be those who can adapt to changing economic conditions, solidifying their position as the industry leader.
Blockchain has transformed transaction security. Blockchain platforms use the technology to create a shared digital ledger that records every transaction. This ledger is distributed across a network of computers, making it almost impossible to alter or tamper with the data.
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Blockchain also makes financial transactions more efficient. Traditional financial systems often involve multiple intermediaries, such as banks and payment processors. Blockchain removes the need for intermediaries, speeding up the transaction process and decreasing costs.
Still, blockchain’s high level of security is its most essential feature. It helps prevent fraud and unauthorised access, ensuring that users can trust the safety of their financial transactions. This article explores the top ten blockchain platforms that facilitate secure transactions.
Bitcoin (BTC)
Known for its decentralised architecture and security through the proof-of-work consensus mechanism, Bitcoin stands as the pioneering blockchain platform. It offers users a secure method for peer-to-peer transactions, and the BTC token is a reliable store of value globally.
Ethereum (ETH)
Ethereum revolutionised blockchain technology by introducing smart contracts, enabling the creation of decentralised applications (dApps) and various financial services. It has a vibrant developer community and ongoing upgrades, including the transition to Ethereum 2.0 aimed at improving scalability and reducing energy consumption.
Ethereum is ideal for developers and users interested in decentralised applications and smart contracts.
Ripple (XRP)
Ripple specialises in facilitating rapid and cost-effective cross-border payments and remittances, appealing to financial institutions seeking efficiency. It ensures fast transaction speeds and low costs, positioning itself as a competitive option in the global payment landscape.
Ripple is a practical choice for financial institutions needing fast and affordable cross-border transactions.
Stellar (XLM)
Stellar shares similarities with Ripple, focusing on fast and low-cost cross-border transactions but also targeting individual users alongside financial institutions. It aims to simplify the process of international money transfers while maintaining strong security.
Stellar serves as a viable option for users and institutions seeking accessible and cost-effective solutions for cross-border payments, emphasising simplicity and security.
Hyperledger Fabric
Hyperledger Fabric caters specifically to enterprise needs, offering a permissioned blockchain platform that prioritises security and privacy. Its modular architecture enables tailored solutions for businesses requiring controlled access to data and secure financial transactions.
Implementing and managing Hyperledger Fabric demands substantial technical expertise, limiting its accessibility for non-enterprise users. Enterprises seeking secure and customisable blockchain solutions should consider Hyperledger Fabric for its features and enterprise-grade security.
Cardano (ADA)
Cardano distinguishes itself with a research-driven approach to blockchain technology, emphasising security, scalability, and sustainability. It supports smart contracts and aims to offer a platform that is both secure and capable of accommodating a wide range of decentralised applications.
Cardano’s ecosystem and developer community are still growing, impacting its pace of innovation. However, Cardano remains appealing to users and developers seeking a scientifically rigorous blockchain platform with a focus on security and scalability.
Tezos (XTZ)
Tezos introduces a self-amending blockchain capable of upgrading without hard forks, ensuring long-term stability and continuity. It supports smart contracts and decentralised applications, offering flexibility and security.
While Tezos’ innovative governance model may seem complex to newer users, it offers a compelling option for those interested in a self-amending blockchain with robust security features and a focus on long-term sustainability.
Binance Smart Chain (BSC)
Binance Smart Chain, developed by Binance, emphasises high performance and low transaction costs, making it particularly suitable for decentralised finance (DeFi) applications. It supports a broad range of financial transactions with efficient throughput.
BSC is a preferred option for DeFi developers and users seeking a platform with fast transaction processing and minimal fees, though caution is advised regarding centralization risks.
Polkadot (DOT)
Polkadot excels in interoperability, connecting multiple blockchains to enhance scalability and security across decentralised networks. It offers a scalable platform for developers to build interoperable applications spanning various blockchains.
Similar to Cardano, Polkadot’s ecosystem is still evolving, with ongoing development efforts to broaden its functionalities.
Polkadot appeals to developers interested in building interoperable and scalable decentralised applications across multiple chains.
Solana (SOL)
Solana distinguishes itself with high throughput and low transaction costs, capable of processing thousands of transactions per second. It aims to support scalable decentralised applications, particularly within the DeFi space.
Solana has maintained its appeal among developers and users looking for high-performance blockchain solutions. It continues to be a preferred option for its efficient transaction processing capabilities.
InsurTech is an emerging sector of huge importance. It transforms an old and crucial industry by creating insurance technology that brings major tech advances to enable widespread change.
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The top InsurTech companies aim to revolutionise the industry with a rapidly evolving and advancing series of insurance technologies. All of these seek to make insurance more accessible and customer-centric. This improves insurance products and creates opportunities for new ones.
By adopting a mobile-first approach, InsurTech reduces the need for face-to-face interactions. This means lower operational costs, allowing InsurTech startups to offer more competitive pricing models.
The InsurTech landscape owes its growth to startups. These early-stage companies disrupt the insurance sector by bringing new tools to the game. These include AI, which can handle traditionally resource-exhausting and time-consuming tasks, such as determining the right policies to offer customers.
According to a report by Spherical Insights, the InsurTech market was valued at $3.85 billion in 2021. Based on a CAGR of 52 percent, Spherical forecasts that it will grow to $166.7 billion by 2030. This growth is mainly fuelled by Insurtech startups. Read on to discover the top Insurtech companies to watch in 2024, as they make strides forward into a period of accelerating growth.
According to a report by Spherical Insights, the InsurTech market was valued at $3.85 billion in 2021. Based on a CAGR of 52 percent, Spherical forecasts that it will grow to $166.7 billion by 2030. This growth is mainly fuelled by Insurtech startups.
Read on to discover the top Insurtech companies to watch in 2024, as they make strides forward into a period of accelerating growth.
1. Lemonade
Lemonade brands itself as “an insurance company built for the 21st century.” With Maya, its cutting-edge AI tool, Lemonade can “craft the perfect insurance” coverage in as little as 90 seconds. The AI also contributes to the seamlessness of the insurance claims process, with customers needing to wait only three minutes after claim submission to get paid.
In November 2023, Lemonade was serving2 million active customers. It ticked the first million mark in 2020. Throughout the period, the premium per customer increased by 70 percent.
InQ1 2024, the average premium per customer was $379, an eight percent increase year on year. The in-force premium was $749. The figure represents a 22 percent increase year-on-year and corresponds to total revenue growth of 25 percent.
2. NEXT Insurance
Next Insurance caters to small businesses, offering products such as workers’ compensation and equipment insurance. The company provides coverage for diverse professions, from contractors to entertainers.
Next has developed an AI tool called Copilot, not to be confused with Microsoft’s AI with the same name. The tool allows insurance agents to increase operational efficiency and profitability by streamlining the quoting and binding process. It also helps reduce underwriting delays.
Established in 2016, Next was serving500,000 active customers in 2023, an increase from 420,000 in 2022. It has received $1.1 billion in funding from big-name investors such as Munich Re, Allstate, and Allianz X. Per November 2023, the company has a market valuation of $2.5 billion.
3. Oscar
The Oscar Health team provides digital-based health insurance. The company offers services for individuals and families. Through its app, customers can access remote health care anywhere, anytime. Established in 2012, Oscar has over1.4 million customers across 20 states of the US.
4. Metromile
Metromile revolutionises automobile insurance with its premium-per-mile scheme. Premium rates are based on driving habits, which is claimed to allow customers to save around 47 percent, or $947 per year, compared to traditional car insurance.
Metromile wasacquired by Lemonade in 2022 for $145 million worth of LMND shares. In return, Lemonade took control of “over $155 million in cash, over $110 million in car premiums, an insurance entity with 49 state licenses, and precision data from 500 million car trips.”
5. Asurion
Asurion specialises in technology care. This InsurTech company provides electronic equipment coverage, catering to owners of smartphones, laptops, TVs, and smart home appliances. By using its services, customers gain access to quick repairs of only 45 minutes for their electronics through local repair experts and tech repair stores across the US.
6. Zego
Zego offers smart and flexible insurance coverage for self-employed drivers and fleets. A wide selection of insurance products is available to meet the needs of private taxi companies, haulage truck drivers, and courier vans. Zego became theUK’s first InsurTech unicorn in 2021 after raising $150 million, bringing its valuation to $1.1 billion.
7. Hippo Insurance
Hippo Insurance combines home insurance with smart home devices. The company provides customers with smart home monitoring systems to detect potential issues. These include leak sensors, motion detectors, and smart smoke alarms. In 2024, Hippo provides coverage for 200 US households.
8. Pie Insurance
Pie Insurance caters to small businesses. This InsurTech startup uses advanced analytics tools to determine the best premiums, considering comprehensive possible risks. The company aims to make insurance affordable and accessible to small businesses in the US.
9. Clearcover
Clearcover uses AI technology to speed the claims process up to just seven minutes. The startup has raised a total of$515 million over nine financing rounds. Its latest funding round was in April 2024, when it raised $55 million in a second Series E. The investment round was led by Omers Venture, with several undisclosed investors participating.
10. Shift Technology
Shift Technology is a claims fraud detection platform that uses AI to detect fake claims in real time. This InsurTech platform also detects underwriting risks and improper payments. Its financial crime detection feature ensures compliance with AML and KYC regulations. Shift’s technology speeds up the decision-making process, allowing insurance companies to operate with greater efficiency. With a market capitalisation of $2.89 million per June 2024, the company has raised $316 million since its inception in 2014, raising $219 million in its latest Series D.
These top InsurTech companies are disrupting the market with advanced technologies such as AI tools. With their capabilities to streamline user experience, lower costs, and improve decision-making processes, these InsurTech startups will continue to challenge legacy insurance companies.
FinTech Strategy hears from Till Wirth, EVP of Product at Wise Platform, to find out more about its mission to make international payments fast, low-cost, convenient and transparent
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At Money20/20 Europe in Amsterdam, Till Wirth, EVP of Product at Wise Platform, took part in an impactful session titled “From Personal Payments to Enterprise: The Changing World of Cross-Border.” Wirth’s panel talk focused on the transformative trends in cross-border payments and their implications for both personal and enterprise financial transactions.
“Wise is a global technology company building the best way to move money around the world. Wise Platform is Wise – but for banks, large businesses and other major enterprises.
We allow our partners to embed the best way to send, receive and manage money internationally into their existing infrastructure, creating value for their business and customers.
Over the past decade, Wise (formerly known as Transferwise) has built a global payments infrastructure that has revolutionised how money moves around the world. Now, thanks to Wise Platform, other companies can gain access to our industry-leading, reliable service seamlessly.
We save partners time and money by allowing them to deploy new products and services to customers seamlessly, helping them to speed up innovation and serve, retain, and grow their customer base.”
FinTech Strategy spoke with Wirth to learn more…
Tell us about the genesis of Wise… Why is this an exciting time for the company?
“For us at Wise, it’s all about continuing towards our mission of making international payments fast, low-cost, convenient and transparent for our customers and partners.
It’s an exciting time for us as we’ve moved over £118bn on behalf of our 12.8 million active customers in the last financial year and helped them save more £1.8bn in fees. Over 62% of Wise’s transfers are completed instantly (in 20 seconds or less). Wise Platform, our global payments infrastructure for banks and enterprises is growing quickly, too, which allows us to bring the benefits of Wise to more people around the world.”
Tell us about your role…
“I lead the Wise Platform Product team building the global payments infrastructure for banks, financial institutions and enterprises around the world. For example, my team built the product behind the collaboration we announced with Swift last year.”
What are some of the key challenges financial institutions are facing that you can help them with? What problems are they asking you to solve?
“Consumers now expect their cross-border payments to be instant, convenient and transparent. And they are moving to providers they can trust to provide these services. As a result, we’re seeing banks focusing on retaining and winning back their customers through improving their cross-border payments experience. This is exactly what Wise Platform is helping them to do.
We work with more than 85 partners globally, including Bank Mandiri, Indonesia’s largest bank by assets, Shinhan Bank, one of South Korea’s oldest and largest national banks, and GMO in Japan to provide them with the capabilities, technology and network to enable fast, secure and cost-effective international payments for their customers. Quickly, directly from their own apps, without any major technical overhaul.”
Tell us about a recent success story…
“In June this year, Wise Platform hit a major milestone when our integration with Nubank, the world’s largest digital banking platform with over 100 million customers, went live.
Thanks to our partnership, Nubank’s premium Ultraviolet customers can now access multi-currency accounts and debit cards powered by Wise directly from their Nubank app. Customers benefit from a convenient user experience that we’ve tested and iterated over the years for our own customers to seamlessly manage their finances internationally.”
Why do you think the evolution of collaboration between banks and fintechs is set to continue?
“One of the reasons is that while banks have scale, they can gain agility in non core focus areas by working with fintechs and deliver significant customer benefits quickly.
Most banks have been built to focus on domestic banking, meaning their global cross-border payments are often not a priority. However, fintechs are better able to specialise and focus on one specific customer pain point. This means they can innovate much more quickly.”
Why Money20/20? What is it about this particular event that makes it the perfect place to showcase what you do? What’s the response been like for Wise?
“It’s a great event that brings the industry together and enables us to discuss the progress we’re collectively making. This year in particular, it was great to be on a panel to discuss how the cross-border payments landscape is evolving and the latest trends we’re seeing. We look forward to the upcoming event in the US later this year.”
With more financial transactions shifting to digital platforms, having proper cybersecurity measures becomes a priority.
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Moreover, data is at the heart of every fintech company, which makes them attractive targets for hackers and malicious actors.
Financial technologyhas created new opportunities for customers and businesses in the finance industry. Individuals can now borrow, transfer, save, and invest from the convenience of their homes. Also, the growth of the industry is massive, with fintech revenues projected to grow sixfold from $245 billion to $1.5 trillion by 2030.
However, following that growth are security risks associated with it. Accounting services firm BPM predicts that cybersecurity attacks aimed at fintech companies will only continue to grow in 2024 and beyond. Furthermore, these attacks can end in monetary losses, reputational damage, and brand erosion.
To prevent such cases,fintech security leaders globally have implemented cybersecurity measures.
1. Stripe
Founded in 2010 by Patrick and John Collison, Stripe specialises in payment processing software and application programming interfaces (APIs).
Based in South San Francisco, California, the company offers top-tier encryption and secure transmission protocols. The protocols, which adhere to the PCI DSS standards, are in place to ensure the security of credit and debit card data.
Launched in 2018, Stripe’s innovative tool Radar detects and blocks fraudulent transactions. After its 2.0 update in 2018, the company claimed it helped reduce fraud rates byan additional 25% for its users.
With other services like Stripe Terminal, Stripe Tax, and Stripe Capital, Stripe has become a trusted name in online payment processing. It powers payments for major companies like Amazon, Google, and Shopify, all of which demand high-security standards.
2. Square
Owned by Block, Inc., Square was launched in 2009 by CEO Jack Dorsey and co-founder Jim McKelvey. Square offers an all-in-one financial services platform, including customer booking, e-commerce, payroll, shifts, loan financing, and banking.
In 2021, Square received FDIC approval from the Utah Department of Financial Institutions. Additionally, with end-to-end encryption, regular vulnerability assessments, and secure data storage, Square reached Level 1 PCI DSS certification. This is the highest level for payment processor certification.
3. PayPal
Launched in 2000 from the merger of Confinity and X.com, PayPal is a leader in secure online transactions.
Acquired by eBay in 2002, PayPal became the leading global payment application after eBay discontinued its Billpoint service. It has arguably outpaced competitors like Citibank C2IT, Yahoo! PayDirect, and BidPay from Western Union.
PayPal uses advanced encryption technologies and multi-factor authentication to protect user data. With its continuous monitoring and fraud prevention mechanisms, the company is compliant with industry standards.
According to the company, its fraud detection tools are informed by data from 1 billion monthly transactions. It claims that the toolgets smarter with each transaction.
4. Ant Financial (Alipay)
Ant Financial’s Alipay, is the second-largest international payment processor after Visa.
Founded in 2014 by Jack Ma as an affiliate of Alibaba, Ant Financial offers a range of products. Available services include electronic payment processing, banking, and mobile payments through brands like Yu’ebao, Huabei, and Xianghubou.
Ant Financial combines advanced cybersecurity measures such as AI-driven fraud detection, biometric authentication, and data encryption. Alipay itself also holds the internationally recognized ISO/IEC 27001 cybersecurity certification.
Used by more than 1.2 billion users, Ant Financial is protected by its AI-powered risk engine AlphaRisk. With the tool, Alipay’s fraud loss rate has been kept under0.64 in 10 million, way lower than the industry average.
5. Plaid
Established in 2013 by Zack Perret and William Hockey, Plaid is an embedded financial platform. It facilitates secure online payments and transactions by connecting users’ bank accounts to finance applications.
Plaid ensures authorised access to bank data through secure bank portals, which eliminates the need for user credentials. In October 2020, Plaid introduced “Plaid-Link,” a service that enables real-time payments for loans, insurance, and wages. It securely connects 12,000 US financial institutions, plus many more in Canada, the UK, and Europe.
6. Chime
Founded in 2012 by Chris Britt and Ryan King, Chime partners with regional banks to offer fee-free mobile banking services. Chime uses encryption, access protocols, continuous monitoring, and proactive fraud prevention to keep its payment processes secure.
In April 2020, Chime launched the fee-free overdraft product “SpotMe.” It successfully processed $375 million in Economic Stimulus Payments one week from the scheduled government disbursement.
7. Adyen
Adyen, listed on Euronext Amsterdam, is a Dutch FinTech company founded in 2006 by Arnout Schuijff and Pieter van der Does. Primarily catering to businesses, Adyen offers e-commerce, mobile, and POS payment solutions. The company successfully achieved 1.3 billion euros in revenue in 2022.
Adyen’s cybersecurity measures include encryption, tokenization, secure data storage, and regular security assessments, all backed by Level 1 PCI DSS certification.
8. Sift
Founded in 2011, Sift is one of the cybersecurity companiesproviding AI-powered fraud platform. It uses machine learning combined with data network scoring 1 trillion events per year to offer security solutions.
The company notices that online fraud is a growing problem, especially for retailers and financial institutions. Therefore, Sift’s algorithm distilled over hundreds of millions of user actions to create fraud pattern recognition tool.
Sift has received several accolades, including being named a leader in 2023 Forrester Wave for Digital Fraud Management and G2’s Momentum Leader in Spring 2024.
9. Darktrace
Cybersecurity company Darktrace, established in 2013, uses AI to respond to cyber threats in real time. Since its inception, the tools it created has been deployed over 9,000 times.
With its Enterprise Immune System technology, Darktrace is able to handle Industrial Operational Technology, email, SaaS, cloud, network, and endpoint safety. More than 9,400 organisations, including major financial institutions, rely on its advanced solutions.
The company was included in The Cyber Award’s AI Product of the Year in 2020 and Fast Company’s top 10 most innovative AI companies for 2022.
10. Netskope
Cloud-based cybersecurity company Netskope was founded in 2012 to help organisations apply zero trust principles. The company’s solutions protect data across cloud services and apps, which makes it pivotal for fintech institutions relying on such technologies.
The California-based firm helps financial services companies meet compliance requirements such as FINRA, PCI-DSS, GLBA, and GDPR. Not only that, it provides necessary protection, such as SWG, CASB, ZTNA, DLP, Cloud Firewall and SD-WAN.
In 2024, Netskope is recognized as a leader in the Gartner Magic Quadrant for Cloud Access Security Brokers (CASBs).
What makes these a success
These top cybersecurity firms in fintech have set high standards in cybersecurity. Their efforts have significantly contributed to a safer digital landscape for fintech.
They have also demonstrated collaboration with fellow financial or cybersecurity experts. Collaboration means having access to specialised knowledge that may not be available in-house. This includes latest threat intelligence, security tools, and tailored audits.
Additionally, it is imperative that companies adhere to industry standards and regulations. Compliance is the first step in building trust with users and stakeholders alike.
Despite the convenience it offers, adoption still faces challenges. This article discusses the main opportunities it brings and the challenges it faces.
Opportunities
The advent of embedded finance has brought about new opportunities; they are, among others, as follows:
Supporting growth of financial technology
Embedded finance is a significant booster for the growth of the financial technology sector. Traditional finance has struggled to reach traditionally unbanked communities. By making finances integrated into non-financial apps, these communities can now access financial services.
Promoting peer-to-peer transactions
While the integration of financial services into non-financial apps is important, one of embedded finance’s most important functions is facilitating seamless peer-to-peer transactions.
Increasing payment channels
Embedded finance allows companies and services to accept payment from more channels, allowing them to expand their reach.
Focus on customer experience
Embedded finance has an emphasised focus on customer experience. By integrating multiple financial services into one platform, customers can now access them with ease.
Challenges
As embedded financial services are still in their early stages of development, they face several challenges.
Complexity in integrating multiple services
Integrating multiple services entails some technical complexity.
Regulatory challenges
A platform integrating multiple financial services into one platform might have to navigate diverse regulatory challenges that bind to each service, not to mention the challenges that come from the partnerships with the service providers.
Risk management
By integrating multiple services into one platform users are at an increased risk of having their accounts and data compromised.
Notable Embedded Finance Platforms
Multiple successful embedded finance platforms have emerged in various countries. For example, there is Alipay in China, GoJek in Indonesia, Plaid in the U.S., and Adyen in the Netherlands.
These platforms all owe their success to the same factors. These are user trust, widespread adoption, security, innovation, and an extensive network of partners.
User trust stems from data security. Embedded finance platforms employ tools such as encryption and secure API designs and ensure security compliance to secure user data. Then, they also have extensive networks of partners, ensuring the comprehensiveness of their service offerings.
Due to the convenience they offer, embedded finance enjoys public support. It provides opportunities for companies and services to reach more users. That said, embedded financial services also face challenges such as cybersecurity.
Digital payments are now the preferred payment method for much of the world, and they continue to evolve.
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They were first introduced through the creation of credit or debit cards. These physical cards allowed consumers to spend money without needing cash.
Advances in mobile technology led to online banking apps, mobile wallets, and contactless payments. These methods are even more convenient and are transformative for commerce, online and in physical outlets.
Throughout 2024, there are ten key trends expected to rise as digital payments evolve:
1. Rise of cryptocurrencies in everyday transactions
Cryptocurrencies, or crypto, are digital currencies maintained by a decentralised blockchain system rather than any government or institution. Owning a crypto means possessing assets that are not tangible, hence it is more popular as an investment currently.
Many platforms are gradually integrating crypto into their financial ecosystem. For example, PayPal — the online payment giant — allows users to buy, hold, and sell crypto.
Despite its volatility issues, crypto is predicted to keep growing. It offers fast transactions, easier cross-border payment, and lower transaction fees than traditional methods.
2. Biometric Authentication
The security concerns surrounding digital payments are unchanged, but the method for securing them is improving all the time. This has led to widespread growth in biometric authentication. Biometric authentication allows for more security and convenience than traditional passwords and PINs, which can be forgotten or stolen. It makes impersonation far more difficult.
Biometrics requires users to input unique physical characteristics like fingerprints or facial features (via a camera). Approved in an instant, consumers can make payments easily by verifying with the tap of a finger or by staying still for the camera.
3. Growth of Peer-to-Peer Payments
Peer-to-peer payment apps allow users to send money directly to another user using a mobile device. The convenience of this payment mode made it popular.
Among the most used apps are Zelle, Venmo, and Paypal. Zelle, for instance, gained$307 billion in transactions in 2020, 58% growth on the previous year, and part of a wider trend in digital payments growth during the Covid-19 lockdowns.
This method offers instant transactions advantageous for time-sensitive transactions like splitting bills or sending emergency funds. It also commonly has a low-cost or free transaction compared to traditional banking options.
4. AI fraud detection with digital payments
AI technology has greatly impacted many sectors, including digital payments. Fraud detection with AI is a solution that uses algorithms to analyse large transaction data. This AI tool can recognise suspicious patterns and identify discrepancies that indicate fraudulent activity.
Companies likeVisa introduced AI fraud detection this year. The AI-powered security tools are included in the Visa Protect suite. The fraud detection tool, including digital wallets, can be used for immediate payments.
5. Real-time payments (RTP)
Real-time payments make immediate transactions between accounts significantly better than traditional banking systems, which might take days. This is a preferred option for both consumers and businesses.
Businesses can improve cash flow with faster payments, and consumers can access funds immediately. Currently, the RTP frameworks continue to be adopted by worldwide financial institutions. It is expected to be the standard for various transactions, including payroll and cross-border payments.
6. Voice-activated transactions
Voice-activated payment is an innovative method for users to do transactions simply using speaking commands. A payment system such as this can be more convenient for users than the common typing password method.
This form of authentication is possible through voice recognition tools used in mobile apps. Additionally, voice-activated payments offer a high level of security and a smoother consumer experience. As more companies adopt this trend, it is expected to become even more popular in 2024.
7. QR code payments
QR code payments uses a unique QR code that smartphones can scan to authorise transactions. It is usually connected to consumers’ mobile banking apps or mobile wallets as the source of payment.
This contactless payment offers a seamless payment experience that is highly desirable for users. Businesses also benefit from the simplicity of the method by making transactions faster and seamless.
8. Cross-border payments
Cross-border payments are expected to grow consistently as the world moves on from the restrictions of the COVID-19 pandemic. Also, more businesses are engaging in cross-border payments, and 80 percent expect a transaction volume increase in the next 12 to 24 months.
International payments often suffer from high fees and lengthy transaction times. However, companies are expected to improve their capabilities as cross-border payments increase.
9. Buy Now Pay Later (BNPL)
Buy Now Pay Later (BNPL) services are a more accessible of borrowing for payment than traditional methods like credit cards.
They allow consumers to make purchases and spread the cost over time. This method enables minimal or zero percent financing and no initial credit check.
Many e-commerce platforms have integrated these payment system as they become more popular.
10. IoT devices integration for digital payments
Integrating Internet of Things (IoT) devices with mobile payments helps make the consumer experience more convenient. This innovation allows wearables and smart home appliances to make contactless payments.
Furthermore, IoT devices can also generate data that can be analysed to create a more personalised experience.
Blockchain technology has come a long way since its emergence in the mid-2000s. Initially associated only with cryptocurrencies, it is now known as a tool that revolutionises the finance industry.
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In 2024, blockchain has seen transformative growth. According to a Coinbase report, on-chain projects announced by Fortune 100 companies have increased 39 percent from last year. Furthermore, 56 percent of Fortune 500 executives say their companies were working on on-chain projects.
Major actors in financial services are now embracing blockchain technology. From HSBC, IBM, and Nasdaq to JP Morgan, big names are now driving blockchain innovations. Here, this article explores ten blockchain trends expected to dominate the second half of this year.
1. Decentralised finance (DeFi)
A financial disruptor, DeFi enables peer-to-peer financial services without intermediaries such as banks. DeFi services such as Uniswap, Aave, or SushiSwap offer products and services like lending, trading, and asset management, often at competitive rates.
Under a Decentralised Autonomous Organisation (DAO), governance is placed in the hands of token holders. This results in a more inclusive decision-making process.
2. Smart contracts
Smart contracts are computer programmes that automatically execute agreements when predefined conditions are met.
One example of the financial institutions that have experimented with this is BNP Paribas. In 2020, it announced a collaboration with fintech company Digital Asset to design real-time and settlement applications using DAML smart contracts. It has also been involved in pilot projects for trade finance using blockchain.
Other than finance applications, smart contracts are also used in government services, legal industries, and notaries.
3. Cross-border payments
Most cross-border transactions are complicated and costly. Often, they also involve multiple intermediaries and currency conversions.
Blockchain offers a more efficient and cost-effective solution by allowing funds to be transferred directly between individuals and institutions. Blockchain-enabled payments take only a few seconds compared to traditional payments, which may take 3-5 business days.
Companies like Faster Payments Service, Ripple, IBM World Wire, and Strike have already demonstrated successful blockchain-based cross-border payments.
4. Digital identity verification with blockchain
Last year, 3,205 data compromise cases affected 353 million victims in the US. Nearlyall were data breaches, affecting 349 million victims.
Blockchain-based digital identity verification offers a solution to this problem. Personal identity verification protocols like Civic and decentralised identity networks like Sovrin allow users to control their personal information in a way that prevents identity theft and phishing.
Additionally, these platforms simplify and speed up the data verification process, allowing service providers to reduce the time, cost, and resources spent on manual verification.
5. Asset management
Blockchain’s technological capability can reduce the risk of losses when facilitating asset management. Tokenised securities, for instance, allow users to trade digital tokens representing ownership of assets such as stocks, investment funds, and bonds.
An example of this is Paxos Gold (PAXG), an asset-backed digital token with a total market capitalisation of $327 million.
Blockchain also allows for real-time tracking of asset ownership, transactions, and changes throughout the asset lifecycle management.
6. Fraud prevention with blockchain
With blockchain, organisations can permanently track and verify transactions, which makes it a powerful tool against fraud.
Cryptography and encryption techniques help ensure the authenticity and integrity of information, making it difficult to counterfeit. Institutions like Barclays Bank, JP Morgan, and HSBC have already integrated blockchain technology into their payment infrastructures.
7. Supply chain finance
Blockchain-based supply chain finance models are becoming increasingly popular. This is because it allows supply chain partners to share information more easily.
An immutable digital ledger can track all information, from assets to product quality, saving time and money for all parties involved. IBM Food Trust uses this feature in the food supply chain sector. With a permanent, tamper-proof record of every transaction, from farm to table, the technology helps ensure the authenticity and safety of food products.
The Provenance network also uses blockchain to allow consumers to verify the origins and authenticity of products. This system makes sure that product histories are permanently recorded and easily accessible.
8. Blockchain-based trading
This year saw an increasing ownership of digital assets. The global user base for digital currenciesreached 562 million people, a significant increase from 420 million in 2023. Within virtual worlds and the metaverse, trading volumes have only been increasing since the bullish run in 2023.
Blockchains can also be used to trade various assets, such as luxury goods, real estate, and intellectual property rights.
9. Internet of Things (IoT)
Blockchain can connect IoT devices to ensure safety in interactions between devices and networks. This feature opens up new opportunities for financial services such as micropayments and decentralised insurance.
Hyperledger Fabric, for example, acts as a distributed transaction ledger for various IoT transactions, helping keep track of millions of connected devices.
Another ledger, IOTA, is specifically designed for the Internet of Things (IoT). It secures sales and trading data streams to facilitate micropayments between IoT devices without transaction fees.
10. Insurance
Smart contracts built on blockchain technology can protect health records and detect fraudulent claims. Aside from that, its ability to automate claims processes can minimise human interference.
Etherisc is a company that claims to be a pioneer in parametric blockchain insurance, having used the technology since 2016. It is a decentralised insurance protocol built on blockchain technology that has developed solutions like flight delay insurance and crop insurance.
Another example is Insurwave, a blockchain-based platform developed by EY and Guardtime in collaboration with insurers and shipping companies.
FinTech Strategy and Interface joined Publicis Sapient at Money20/20 in Amsterdam for the launch of its third annual Global Banking Benchmark Survey and spoke with Head of Financial Services Dave Murphy about its findings
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The third annual Global Banking Benchmark Study from Publicis Sapient draws on insights from 1000+ senior executives in financial services across global markets. The study focuses on the goals, obstacles, and drivers of digital transformation in banking.
Global Banking Benchmark Study
The study was launched during Money20/20 Europe in Amsterdam last month. Eoghan Sheehy, Associate MD, and Grace Ge, Senior Principal, highlighted the banking industry is focused on improving existing processes rather than introducing new ones. Data Analytics and AI are identified as key priorities for digital transformation. Additionally, there is a focus on internal use cases and efficiency.
Eoghan and Grace also discussed the challenges faced by the banking industry. These include regulation, competition from companies like Amazon, and the need to attract talent. They emphasised the importance for financial institutions of modernising core infrastructure. Also, building cloud infrastructure to support ongoing digital transformation. Moreover, the study notes the prevalence of the development of custom-made tools and internal use cases for AI implementation. Furthermore, Eoghan and Grace provided examples of repeatable use cases and discussed the success factors for Data Analytics and AI.
Four key takeaways from Publicis Sapient
Four key tracks came out of the study…
Modernising the core will always be important. But modernising the core for its own sake and also building the cloud infrastructure that supports it or allows for it to be modern. A decent chunk of the survey responders are still very focused on this. Executives are stating they want to make sure their people can make the best use of the beautiful core they’ve now built.
GenAI is an area of thoughtful experimentation for the Neobanks. We’re talking about scaled microservices here. Instances where, across Neobanks, you’ll have the same machine learning model and the same GenAI text generator facilitating retail and SMEs. That’s pretty sophisticated and something everyone has to contend with.
Data Analytics transformation is a key priority using GenAI to do so along with bringing new talent into the game.
Payments has been a big theme at Money20/20… We’re seeing lots of activity around ancillary individual product areas.
“The study focuses on how to think about solving problems end-to-end. Banks are dealing with legacy issues and taking a customer first view into solving the challenges. The practical application of AI across the banks is a significant theme as they look to automate decision-making and deliver better credit risk models. AI is finally delivering a set of use cases that truly can impact the way banks operate and build their own technology.” Dave Murphy, Head of Financial Services, EMEA & APAC
Be among the first to receive the study by signing up here
This month’s cover story sees our sister brand Fintech Strategy reporting from Money20/20 Europe in Amsterdam – a pivotal event…
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This month’s cover story sees our sister brand Fintech Strategy reporting from Money20/20 Europe in Amsterdam – a pivotal event in the fintech calendar, drawing over 8,000 participants from 2,300 companies worldwide.
Welcome to the latest issue of Interface magazine!
The RAI Amsterdam Convention Centre was the location for the world’s leading fintech conference. Money20/20 Europe offered a unique blend of insightful keynotes, panel discussions, and networking opportunities that underscored the transformative power of emerging technologies in financial services. We met with SC Ventures, Lloyds Banking Group, OSB Group, AirWallex, Plaid, Paymentology, Episode Six, Mettle (Nat West Group) and more to take the pulse of the latest trends across the fintech landscape.
Under the theme of ‘Human X Machine’, Money20/20 Europe explored the relationship between humans and intelligent machines, focusing on how the partnership between artificial and human intelligence will forge a new era in finance…
Publicis Sapient: Global Banking Benchmark Study
Interface was also proud to partner with Publicis Sapient at Money20/20 Europe for the launch of its third annual Global Banking Benchmark Survey. The survey draws on the insight of over 1000 senior executives in financial services across various global markets and focuses on the goals, obstacles, and drivers of digital transformation.
We spoke with Head of Financial Services Dave Murphy about its findings. “The survey focuses on how to think about solving problems end-to-end. Banks are dealing with legacy issues and taking a customer first view into solving the challenges. The practical application of AI across the banks is a significant theme as they look to automate decision-making and deliver better credit risk models.”
At the launch event for the study, Eoghan Sheehy, Associate MD, and Grace Ge, Senior Principal, highlighted that banks are primarily focused on improving existing processes rather than introducing new ones. Data Analytics and AI are identified as key priorities for digital transformation, with a focus on internal use cases and efficiency.
Eoghan and Grace also discussed the challenges faced by banks, including regulation, competition from companies like Amazon, and the need to attract talent. They emphasised the importance for financial institutions of modernising core infrastructure and building cloud infrastructure to support ongoing digital transformation. The study also notes the prevalence of the development of custom-made tools and the prioritising of internal use cases for AI implementation. Eoghan and Grace also provided examples of repeatable use cases and discussed the success factors for Data Analytics and AI.
STO Building Group: Enabling and Empowering People
Claudia Healey, Chief Human Resources Officer at STO Building Group, spoke to Interface about the HR platform empowering its people in pursuit of a strategic vision… “Culture is the number one priority in a people business like STO Building Group (STOBG). If you’re not nurturing and inspiring your folks, well, they can just vote with their feet. They don’t have to stay. Or they could do worse, they could quit and stay. And that’s something we would never want. Meeting your people where they’re at, understanding their goals and aspirations, and how you can help them reach their potential is vital. Realising how you can really see your people and truly understand what matters to them, is an incredible priority.”
Also in this issue, AI hype has previously been followed by an AI winter, we hear from Scott Zoldi, Chief Analytics Officer at FICO who asks, ‘Is the AI bubble set to burst?’ Elsewhere, we round up the top events in tech and learn how businesses can ensure their cloud storage is more sustainable in an age of rising demand for data and AI. Cloud storage without the climate cost is possible explains Fasthosts CEO Simon Yeoman.
Satya Mishra, Director, Product Management at Amazon Business, discusses how CPOs have become an important voice at the table to drive digital transformation and efficient collaboration.
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Harnessing efficiency is at the heart of any digital transformation journey.
Digitalisation should revolve around driving efficiency and achieving cost savings. Otherwise, why do it?
Amazon is no stranger to simplifying shopping for its customers. It is why Amazon has become a global leader in e-commerce. But, business-to-business customers can have different needs than traditional consumers, which is what led to the birth of Amazon Business in 2015. Amazon Business simplifies procurement processes, and one of the key ways it does this is by integrating with third-party systems to drive efficiencies and quickly discover insights.
Satya Mishra, Director, Product Management at Amazon Business, tells us all about how the organisation is helping procurement leaders to integrate their systems to lead to time and money savings.
Many people shop on Amazon. What is Amazon Business, and how is it related to procurement?
Satya Mishra: “More than six million customers around the world tap Amazon Business to access business-only pricing and selection, purchasing system integrations, a curated site experience, Business Prime, single or multi-user business accounts, and dedicated customer support, among other benefits.
“I lead Amazon Business’ integrations tech team, which builds integrations with third-party e-procurement, expense management, e-sourcing and idP systems. We also build APIs for our customers that either they or the third-party system integrators can use to create solutions that meet customers’ procurement needs. Integrations can allow business buyers to create connected buying journeys, which we call smart business buying journeys.
“If a customer does not have existing procurement systems they’d like to integrate, they can take advantage of other native tools, like a Business Analytics dashboard, in the Amazon Business store, so they can monitor their business spend. They can also discover and use some third-party integrated apps in the new Amazon Business App Center.”
Why would a customer choose to integrate their systems? Are CPOs leading the way?
Satya Mishra: “By integrating systems, customers can save time and money, drive compliance, spend visibility, and gain clearer insights. I talk to CPOs frequently to learn about their pain points. I often hear from these leaders that it can be tough for procurement teams to manage or create purchasing policies. This is especially if they have a high volume of purchases coming in from employees across their whole organisation, with a small group of employees, or even one employee, manually reviewing and reconciling. Integrations can automate these processes and help create a more intuitive buying experience across systems.
“Procurement is a strategic business function. It’s data-driven and measurable. CPOs manage the business buying, and the business buying can directly impact an organisation’s bottom line. If procurement tools don’t automatically connect to a source of supply, business buying decisions can become more complex. Properly integrated technology systems can help solve these issues for procurement leaders.”
Satya Mishra, Director, Product Management at Amazon Business
Beyond process complexity, what other challenges are procurement leaders facing?
Satya Mishra: “In the Amazon Business 2024 State of Procurement Report, other top challenges respondents reported were having access to a wide range of sellers and products that meet their needs, and ensuring compliance with spend policies.
“The report also found that 52% of procurement decision-makers are responsible for making purchases for multiple locations. Of that group, 57% make purchases for multiple countries.
“During my conversations with CPOs, I hear them say that having access to millions of products across many categories through Amazon Business has allowed them to streamline their supplier quantity and reduced time spent going to physical stores or trying to find products they’re looking for from a range of online websites. They’ve also shared that the ability to ship purchases from Amazon Business to multiple addresses has been very helpful in reducing complexity for both spot-buy and planned or recurring purchases. Organisations may need to buy specific products, like copy paper or snacks, in a recurring way. They may need to buy something else, like desks, only once, and in bulk, at that. Amazon Business’ ordering capabilities are agile and can lessen the purchasing complexity.”
How should procurement leaders choose which integrations will help them the most?
Satya Mishra: “At Amazon Business, we work backwards from customer problems to find solutions. I recommend CPOs think about what existing systems their employees may already use, the organisation’s buying needs, and their buyers’ typical purchasing behaviors. The buying experience should be intuitive and delightful.
“Amazon Business integrates with more than 300 systems, like Coupa, SAP Ariba, Okta, Fairmarkit, and Intuit Quickbooks, to name just a handful. With e-procurement integrations like Punchout and Integrated Search, customers start their buying journey in their e-procurement system. With Punch-in, they start on the Amazon Business website, then punch into their e-procurement system. With SSO, customers can use their existing employee credentials. Our collection of APIs can help customers customise their procure-to-pay and source-to-settle operations. This includes automating receipts in expense management systems and track progress toward spending goals.
“My team recently launched an App Center where customers can discover third-party apps spanning Accounting Management, Rewards & Recognition, Expense Management, Integrated Shopping and Inventory Management categories. We’ll continue to add more apps over time to help simplify the integrated app discovery process for customers.
“Some customers choose to stack their integrations, while others stick with one integration that serves their needs. There are many possibilities, and you don’t just have to choose one integration. You can start with Punchout and e-invoicing, for example, and then also integrate with Integrated Search, so your buyers can search the Amazon Business catalog within the e-procurement system your organisation uses.”
Are integrations tech projects?
Satya Mishra: “No, integrations should not be viewed as tech projects to be decided by only an IT team. Integrations open doors to greater data connectivity and business efficiencies across organisations. Instead of having disjointed data streams, you can connect those systems and centralise data, increasing spend visibility. You may be able to spot patterns and identify cost savings that may have gotten lost otherwise.
“It’s not uncommon for me to hear that CPOs, CFOs and CIOs are collaborating on business decisions that will save them all time and meet shared goals, and integrations are in their mix of recommendations.
“One of my team’s key goals has been to simplify integrations and bring in more self-service solutions. In terms of set-up, some integrations like SSO can be self-serviced by the customer. Amazon Business can help customers with the set-up process for integrations as well.”
How has procurement transformed in recent years?
Satya Mishra: “Procurement is no longer viewed as a back-office function. CPOs more commonly have a seat at the table for strategic cross-functional decisions with CFOs and CIOs.
“95% of Amazon Business 2024 State of Procurement Report respondents say the purchases they make mostly fall into managed spend. Managed spending is often planned for months or years ahead of time. This can create a great opportunity to recruit other stakeholders across departments versus outsourcing purchasing responsibilities. Equipping domain experts to support routine purchasing activities allows procurement to uplevel its focus and take on higher priorities across the organisation, while still maintaining oversight of overarching buying patterns. It’s also worth noting that by connecting to e-procurement and expense management systems, integrations provide easy and secure access to products on Amazon Business and help facilitate managed spend.”
What does the future of procurement look like?
Satya Mishra: “Bright! By embracing digital transformation and artificial intelligence to form more agile and strategic operations, CPOs can influence the ways their organisations innovate and adapt to change.”
Anthony Payne, Chief Marketing Officer of HICX, tells us how working collaboratively with suppliers on sustainable procurement practices could act as an organisation’s competitive advantage.
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Sustainability isn’t just a ‘nice to have’ anymore – businesses don’t have much of a choice in the world of 2024.
With ESG regulations now locked in place, organisations must comply or risk significant penalties. In order to achieve sustainability objectives more effectively and efficiently, collaborating with suppliers represents a real opportunity to get there faster.
When businesses work with suppliers to reach sustainability goals, they need access to the most accurate supplier data possible. However, obtaining this data isn’t necessarily straightforward. Ultimately, suppliers own it and need to provide it.
This means it is in a business’s interest to form and maintain a great working relationship with suppliers.
Anthony Payne, Chief Marketing Officer of HICX, the supplier experience platform, discusses the benefits of being supplier-centric and how giving brands a better experience adds value to organisations.
What is the link between businesses collaborating with suppliers, and suppliers being able to give them helpful sustainability information?
Anthony Payne: “There is a direct link. A good supplier experience makes it easier to communicate with suppliers because it allows for collaboration, whereas the opposite can harm communication efforts. For example, when businesses need ESG information, many will survey a broad group of suppliers even though the questions don’t apply to everyone. This is easier for the business. But it means every supplier who receives the survey must investigate whether it applies to them. The experience is more likely to frustrate suppliers than to help them offer the best information.
“Rather, we can help suppliers to help us by communicating better. The way forward is to segment suppliers into groups and send them only relevant requests. This creates a more positive experience in which suppliers are better able to provide helpful information.”
What about their motivation to help sustainability efforts – does this also rely on supplier experience?
Anthony Payne: “Yes, because if the culture of the business-supplier relationship is one in which each party looks out for themselves, then suppliers won’t be terribly motivated to offer the most helpful ESG information. It’s just human nature. Whereas if a business creates an environment in which suppliers can collaborate with them, then they’re more likely to become a customer-of-choice. This is a status worth having. A recent HICX survey showed that while 49% of suppliers would go the extra mile for their biggest customer, as many as 73% would make the effort if this was a customer-of-choice.
“Ultimately, if businesses give their suppliers a good experience, then more suppliers should be willing to provide helpful ESG information – even if it means spending a bit more effort.”
What are some of your most effective strategies and best practices to building a future-proof ESG framework?
Anthony Payne: “Businesses can futureproof their ESG frameworks by viewing suppliers as value-adding partners. This principle suggests three ways to engage suppliers…
“First, have a corporate mindset in which every employee views every supplier as a valued partner. If COVID-19 taught us anything it’s how much we rely on suppliers. When the pandemic hit, non-strategic suppliers such as providers of IT equipment and protective personal equipment suddenly became as central to operations as those who supplied the main ingredients. If we take the view that ‘all suppliers matter’, then it becomes easier to treat them all as partners in the same eco-system and we can work together towards common goals.
“Then, through this lens, we can market to suppliers. In customer marketing, a business would require a certain action from customers – such as getting them to buy a product, read a newsletter or attend an event – and so would motivate this behaviour. Similarly, in procurement, we can appeal to suppliers in a way that encourages them to participate in ESG activities, for instance, by providing helpful carbon emission information.
“One way to encourage the desired behaviour with suppliers is to segment them into the appropriate categories and send them only necessary messages. This is what a marketer would do with customers. By viewing suppliers as partners and introducing supplier marketing and segmentation, you can improve suppliers’ experience and get the most from them.”
What are the biggest barriers that organisations face to delivering more sustainable practices within their organisations?
Anthony Payne: “Once supplier data has been captured, however, the challenge continues because it must be maintained as a golden source of truth. Not having accurate supplier data is a major barrier to delivering sustainable practices because it means that businesses cannot see who all their suppliers are and what they’re doing.
“Thankfully, with robust onboarding and data management in place, businesses can keep their supplier data up-to-date and accurate so that it can inform good sustainability decisions.”
What is the best way for procurement teams to assess and prioritise the suppliers they work with? How do you juggle environmental impact vs value to company?
Anthony Payne: “The best way to assess and prioritise suppliers is to have visibility. Businesses need to know who all their suppliers are and what they’re doing, at any given time. Only once leaders are informed, can they make the best environmental decisions.
“It’s imperative to manage environmental impact with suppliers, regardless of how much value they bring a company. Apart from the moral obligation to protect the environment, businesses also have their reputations to consider. An environmental infringement that gets exposed – no matter how deep in the supply chain it might occur – is very likely to cause reputational damage, which can have a knock-on effect on sales and share price.
“In addition to brand reputation, businesses can also face expensive fines, if their suppliers are found to fall short of environmental regulations.”
What are the challenges and opportunities when it comes to supplier diversity?
Anthony Payne: “The challenge is to source the right suppliers in the first instance and then be able to report on their activity. We know that finding diverse suppliers in the UK can be difficult. While the US market is more mature, supplier diversity is growing here. Considering this, many suppliers that could qualify as “diverse” are not yet certified. Additionally, when diverse suppliers are indeed certified, there is no guarantee that their skillsets will match your needs.
“Thankfully there are ways in which businesses can proactively grow their networks of diverse suppliers. For starters, leaders can equip people within the organisation who work with suppliers, to find diverse suppliers by educating them and putting policies in place. Further, there are practical steps one can follow – such as defining the criteria for what qualifies a supplier as diverse in various territories and then finding the right businesses by searching online directories, desktop research and asking for recommendations.
“Once suppliers that are considered to be diverse are indeed found, they bring much value. Apart from being able to make a positive sustainability impact, the expectations of regulators, shareholders and consumers can be met. The by-product of this is a positive reputation which has economic benefits.
“The opposite logic also applies, and failing to capture supplier diversity value becomes a missed opportunity. For instance, when third-party expectations to support supplier diversity are missed, this can damage brand reputation which hurts sales figures and share price. Also, the unique offerings that diverse suppliers can offer will be missed, and with it the chance to make an impact. Therefore, it’s sensible to make the most of the diverse suppliers that you worked so hard to find.”
Do you have any tips for readers who want to make the most of the diverse suppliers they have sourced?
Anthony Payne: “Yes, you can start by knowing that it’s possible to make the most of the diverse suppliers you find. You can do this by following a stepped approach.
“Start by onboarding new suppliers who are considered ‘diverse’ with processes that reliably capture their information. This way, your diversity programmes can be well-informed. It’s hugely valuable to be able to tell, at the touch of a button, where a particular supplier might be based. Also, what qualifies them as ‘diverse’? And while they might hold diversity status today, how can we be sure it still applies tomorrow?
“With all the right information collected at the start of each relationship, then it’s a good idea to instill processes that drive everyone who works with suppliers to spend more with those who are considered as diverse. As more diverse suppliers join the organisation, then you need to keep their data accurate. Do this by digitally transforming the procurement landscape to make master data a priority. With robust processes, it’s possible to maximise your relationships with all suppliers.”
How optimistic are you about the future of ESG within procurement?
Anthony Payne: “I am very optimistic about the future of ESG within procurement, because, we’re seeing the supplier experience movement grow in the UK and the US. For instance, we’re seeing new job roles come out in this area as the principle is popularised. And we know that having good Supplier Experience Management programmes in place sets up business to procure in the most ESG-friendly way possible.
“And so, with Supplier Experience Management becoming increasingly popular, we believe that the future for sustainability is bright.”
Publicic Sapient CEO Nigel Vaz reflects on the leadership strategies required for successful digital business transformations
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The hardest part of being a business leader and CEO – especially leading through change – are the choices we make every day to move toward that will drive our future success. Often, this will mean letting go of things that made us successful in the past. We must make room for new skills, relationships, ways of working, and opportunities.
The average CEO has 30 years of business experience and makes decisions based on that accumulated experience. But think how much the world has changed in the space of five years, let alone 30. The same thinking and approach are not going to stand the test of time. The modern CEO needs to find and maintain the ability to turn preconceived ideas on their head. As a leader, I’ve always felt it’s important that I adopt the behaviours I advise for our clients. Leaders must be willing to learn, adapt and act with speed.
The Modern CEO
The modern CEO has a complicated, bordering on paradoxical, relationship with change. We dislike uncertainty and volatility, and yet we have an intense distaste for stasis. We would rather avoid geopolitical instability and macroeconomic challenges. However, changes to customer needs, shifting industry landscapes and rapid technological innovation bring opportunities to transform our companies. We must identify paths to value creation and growth, and build better, more efficient businesses. And, the reality is for today’s CEOs, you don’t get to pick one or the other. You have to be ready to lead your organisation in the context of both simultaneously. Leading through either type of change is not for the faint of heart.
In my role as CEO of Publicis Sapient – a digital business transformation company that partners with organisations globally to help them create and sustain competitive advantage – my relationship with change is amplified. I am responsible for driving growth and ensuring our business capabilities are optimised for the digital age. At the same time I’m leading a business that empowers our clients to embrace change by putting digital at the core of how they think, organise and operate. On the Executive Committee of our parent company, Publicis Groupe, I am also weighing in on how to lead on the digital business transformation of the Groupe. This has been accelerated this past year with the pace of AI.
Change Management
The nexus of these different aspects of my CEO role is not uncommon to many of the CEO clients we work with. Like myself, they are leading their organisations and people through a period of tremendous change. Furthermore, they are tasked with making decisions daily on choices that will impact the direction and outcomes for their company.
One of the most critical choices they will make is determining the purpose of their organisation. When there is so much change and challenge surrounding you, the easy path is to react and say, ‘How do I overcome each of these challenges?’ But first you have to be clear on who you are as an organisation and the impact you want to have. Without that sense of direction, you can very easily fall into the mistake of making disconnected, reactive decisions.
Welcome to the latest issue of CEOstrategy where we highlight the challenges and opportunities that come with ‘the’ leadership role
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Our cover story focuses on the work of Nigel Vaz, the CEO of Publicis Sapient – a digital business transformation company that partners with organisations globally to help them create and sustain competitive advantage – and his approach to change management.
Welcome to the latest issue of CEOstrategy!
Tasked with accelerating business growth, while building the synergies across an organisation that can drive innovation to meet diverse customer needs and keep revenues on track, the modern CEO must be mentor, marshall and motivator on the journey to success.
“I lead Publicis Sapient with a set of principles to keep me on track, and which I offer to fellow CEOs as a guide,” says CEO Nigel Vaz. “Embrace change, and view challenges as opportunities for growth and innovation; Foster a culture of continuous learning within yourself and your organisation; Advance the organisational capabilities that will enable your company to deliver on your brand promise; Adopt a data-driven approach to decision-making, utilising analytics and advanced technologies and Stay rooted in purpose to realise your competitive advantage.”
EMCS: Leading a small fish making a big impact
“If you look after your people and you have the right people in place, the customer experience takes care of itself,” explains EMCS Industries CEO Trevor Tasker. “A lot of entrepreneurs say the same, but you don’t always see it in action. If I have to micromanage somebody, I’ve made a hiring mistake. When I’ve found the right person, all I have to do is support them and trust them. If I can’t trust them, I can’t lead them. And being trusted makes my employees so much better at their jobs. It makes choosing the customers you deal with very important as well…”
Moneypenny: People at the heart
We are consistently listed in the best places to work rankings and have created a happy and fun working environment,” says Moneypenny CEO Joanna Swash. “We strive to be authentic, and that starts at the top. If the leadership team walks the walk and talks the talk, then trust is built. Trust fosters a culture where employees are motivated, engaged and empowered with a culture of transparency and honesty…”
Bupa: Choice, care and compassion driving digital transformation
“In a fast-changing world, it’s essential that we harness the power of technology to keep improving health outcomes for our customers,” says Global & UK CEO Carlos Jaureguizar of the digital transformation journey helping Bupa become the world’s most customer-centric healthcare company. “We give our people the tools to give customers the best care, streamline the customer experience and drive innovation.”
Also in this issue, we hear from Rachel Youngman, Deputy CEO at the Institute of Physics, on how organisations can leverage ESG targets to meet the Net Zero challenge; we get the lowdown on a fintech success story from RTGS.global CEO Jarrad Hubble; discover the importance of Strategic Thinking with Institute for Management Development Professor Michael Watkins and count down ten reasons why integrity is key to business success with Serenity In Leadership CEO Thom Dennis.
Global cloud services point-of-sale provider, GK Software, was founded over 30 years ago in Germany. For most of its existence,…
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Global cloud services point-of-sale provider, GK Software, was founded over 30 years ago in Germany. For most of its existence, its focus was on expanding across Europe. However, in 2015, GK broke into the US when its partnership with SAP helped it drive into that vital market. The business has been thriving stateside ever since. Its core business is a point-of-sale software platform – CLOUD4RETAIL – which features the OmniPOS solution. Today, GK is ranked highly in global POS installations and has been among the top three for the last five years.
GK is an organisation committed to continuous improvement and customer engagement. It is evolving, getting into newer technologies like AI in a big way. It’s leveraging its expertise to improve insights into what its retail customers and their shoppers need. This includes everything from price optimisation to loyalty to self-service technologies.
Its ability to provide these services, through its expertise, is what attracted Virginia ABC to GK Software. Virginia ABC was a previous user of SAP’s point-of-sale (POS) solution, but as the authority evolved, it required an updated POS.
GK Software meets Virginia ABC
Enter: GK Software. “As a result of our relationship with SAP and with Paul Williams at Virginia ABC, we were shortlisted in their new point-of-sale solution selection,” explains Max Francescangeli, Regional Sales Director at GK Software.
“With Virginia ABC, we went through quite an extensive selection process. It’s a government agency, so the rules are very strict,” says Francescangeli. “But we were able to prove that we could use our expertise to address and solve all of their problems in spite of the unique environment they operate in. They needed a flexible solution that would interact well with their legacy platforms during implementation. We were certainly able to provide that. So, we were eventually awarded the business and the project has been extremely successful.”
The approach GK takes with its customers during these projects highlights just how much out-of-the-box capability its solution has. GK’s team spent a lot of time with Virginia ABC. The organisation examined its business requirements and using a consultative approach to show how its software could be configured. This was so it could meet the end-state business requirements and take advantage of best-of-breed capabilities that exist within GK’s platform.
“Rather than going there and trying to do a lot of customisation, we wanted to help them take advantage of the software as it exists,” Francescangeli adds. There were also other areas where GK was able to provide a lot of value and expertise to Virginia ABC. These include payment processing and its partner ecosystem. Virginia ABC was previously using a payment provider with limited capabilities, but GK was able to step in and expand the technology set. “We gave them more hardware choices, expanding what they could do with their in-store devices.”
Virginia ABC also needed more advanced reporting and analytics within its environment. So, GK introduced a solution called Advanced Central Electronic Journal and Reporting. Francescangeli continues: “It saved them a tremendous amount of effort, and gave them a lot of flexibility. We implemented that very quickly and they gained business value from it immediately.”
An evolving partnership
GK Software and Virginia ABC worked on initial deployment for the first 12 months of the project, and GK has continued to supply its services ever since. Each year after the first, Virginia ABC has expressed interest in something else GK offers. As a result, the relationship has remained close and Virginia ABC continues to expand the partnership.
“Paul and his team have been champions of ours and we’re champions of theirs as well,” Francescangeli states. “Due to the relationship we have with Virginia ABC, we have been able to secure business from other retailers in the same space because they have confidence that we know how to handle the market.”
“GK checks a lot of boxes retailers are looking for,” Bill Miller, North American VP of Sales at GK adds. “We’re in this inflection point where we offer modern technology that also has a lot of functionality out of the box, and that’s what people want. That’s what Virginia ABC wanted, and that’s what we supplied.”
Our cover story this month focuses on the work of Arianne Gallagher-Welcher. As the Executive Director for the USDA Digital…
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Our cover story this month focuses on the work of Arianne Gallagher-Welcher. As the Executive Director for the USDA Digital Service, in the Office of the OCIO, her team’s mission is to drive a tech transformation at the USDA. The goal is to better serve the American people across all of its 50 states.
Welcome to the latest issue of Interface magazine!
Welcome to a new year of possibility where technology meets business at the interface of change…
“We knew that in order for us to deliver what we needed for our stakeholders, we needed to be flexible – and that has trickled down from our senior leaders.” Arianne Gallagher-Welcher, Executive Director for the USDA Digital Service reveals the strategic plan’s first goal. Above all, the aim is to deliver customer-centric IT so farmers, producers, and families can find dealing with USDA as easy as using an ATM.
BCX: Delivering insights & intelligence across the Data & AI value chain
We also sat down with Stefan Steffen,Executive Leader for Data Insights & Intelligence at BCX. He revealed how BCX is leveraging AI to strategically transform businesses and drive their growth. “Our commitment to leveraging data and AI to drive innovation harnesses the power of technology to unlock new opportunities, drive efficiency, and enhance competitiveness for our clients.”
Momentum Multiply: A culture-driven digital transformation for wellness
Multiply Inspire & Engage is a new offering from leading South African insurance provider Momentum Health Solutions. Furthermore, it is the first digital wellness rewards program in South Africa to balance mental health and physical health in pursuing holistic wellness. CIO, Ndibulele Mqoboli, discusses re-platforming, cloud migrations, and building a culture of ownership, responsibility, and continuous improvement.
Clark County: Creating collaboration for the benefit of residents
Navigating the world of local government can be a minefield of red tape, both for citizens and those working within it. Al Pitts, Deputy CIO of Clark County, talks to us about the organisation’s IT transformation. He explains why collaboration is key to support residents. “We have found our new Clark County – ‘Together for Better’ – is a great way to collaborate on new solutions.”
Also in this issue, we hear from Alibaba’s European GM Jijay Shen on why digitalisation can be a driving force for SMEs. We learn how businesses can get cybersecurity right with KnowBe4 and analyse the rise of ‘The Mobility Society’.
For our first cover story of 2024 we meet with Lloyds Banking Group’s CIO for Consumer Relationships & Mass Affluent,…
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For our first cover story of 2024 we meet with Lloyds Banking Group’s CIO for Consumer Relationships & Mass Affluent, Martyn Atkinson, to learn how an ambitious growth agenda, combined with a people-centred culture, is driving change for customers and colleagues across the Group.
Welcome to the latest issue of Interface magazine!
Welcome to a new year of possibility where technology meets business at the interface of change…
Lloyds Banking Group: A technology & business strategy
“We’ve made significant strides in transforming our business for the future,” explains Martyn Atkinson, CIO for Consumer Relationships & Mass Affluent at Lloyds Banking Group. “I’m really proud of what the team have achieved. There’s loads more to go after. It’s a really exciting time as we become a modern, progressive, tech-enabled business. We’ve aimed to maintain pace and an agile mindset. We want to get products and services out to our customers and colleagues. We’ll test and learn to see if what we’re doing is actually making a meaningful difference.”
AFRICOM: Organisational resilience through cybersecurity
We also speak with U.S. Africa Command’s (AFRICOM) CISO Ryan Larsen on developing the right culture to build cyber awareness. He is committed to driving secure and continued success for the Department of Defence. “I often think of every day working in cyberspace a lot like counterinsurgency warfare and my time in Afghanistan. You had to be on top of your game every minute of every day. The adversary only needs to get lucky one time to find you with that IED.”
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ALIC: Creating synergy to scale at speed with Lolli
Since 2009 the Australian Lending & Investment Centre (ALIC) has been matching Australians with loans that help build their wealth. It has delivered over $8.3bn in loans to more than 22,000 leading Australian investors and businesses. Managing Director Damian Brander talks ethical lending and the challenges of a shifting financial landscape. ALIC has also built Lolli – a broker enhancement platform built by brokers, for brokers.
Sime Darby Motors: Driving digital, cultural, and business transformation together
Sime Darby Berhad is one of the oldest and most successful multinational companies in Malaysia. It has a twin focus on the Industrial and Motors sectors. The company employs more than 24,000 people, operating across 17 countries and territories. Sime Darby Motors’ Chief Digital & Information Officer Tuan Jean Tee shares how he makes sure digital, cultural, and process transformation go hand in hand throughout one of APAC’s largest automotive multinationals.
Also in this issue, we hear from Microsoft on the art of sustainable supply chain transformation, Tecnotree map the key trends set to impact the telecoms industry in 2024 and our panel of experts chart the big Fintech predictions for the year ahead.
This month’s exclusive cover story features a fascinating discussion with Dhaval Desai, Principal Group Engineering Manager at Microsoft, regarding a massive and sustainable supply chain transformation at the tech giant…
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This month’s exclusive cover story features a fascinating discussion with Dhaval Desai, Principal Group Engineering Manager at Microsoft, regarding a massive and sustainable supply chain transformation at the tech giant…
In the past four years, Microsoft has gained more than 80,000 productivity hours and avoided hundreds of millions in costs. Did you miss that? That’s probably because these massive improvements took place behind the scenes as the technology giant moved to turn SC management into a major force driving efficiencies, enabling growth, and bringing the company closer to its sustainability goals.
Expect changes and outcomes to continue as Dhaval Desai continues to apply the learnings from the Devices Supply Chain transformation – think Xbox, Surface, VR and PC accessories and cross-industry experiences and another to the fast-growing Cloud supply chain where demand for Azure is surging. As the Principal Group Software Engineering Manager, Desai is part of the Supply Chain Engineering organisation, the global team of architects, managers, and engineers in the US, Europe, and India tasked with developing a platform and capabilities to power supply chains across Microsoft. It’s an exciting time. Desai’s staff has already quadrupled since he joined Microsoft in 2021, and it’s still growing. Within the company, he’s on the cutting edge of technology innovation testing generative AI solutions. “We are actively learning how to improve it and move forward,” he tells us.
We also have some inspiring and informative content from supply chain leaders and experts at Schneider Electric, Smart Cube, Protokol, Red Helix and Astrocast. Plus, expert predictions for 2024 from leading supply chain leaders, as well as a round-up of the best events this year has to offer!
Our final cover story for 2023 explores how Deputy CIO May Cheng is accelerating a digital customer and product-centric approach…
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Our final cover story for 2023 explores how Deputy CIO May Cheng is accelerating a digital customer and product-centric approach to IT management for the International Trade Administration (ITA).
Welcome to the latest issueof Interface magazine!
Interface showcases leaders at the forefront of innovation with digital technologies transforming myriad industries.
We connect once more with the tech trailblazers at the International Trade Administration. Deputy CIO May Cheng and her team areaccelerating adoption of ITA’s customer and product-centric approach to IT management. In addition, their focus is on Agile, DevSecOps, Value Proposition, and Human Centred Design. “In 2023, we launched 13 products, three MVPs and saw enhancements operationalised. Moreover, the digital model has enabled a partnership between business and IT. The result is clearer lines of shared responsibility, transparency in resources, and a continuous learning culture across the agency.”
Businessman touching data analytics process system with KPI financial charts, dashboard of stock and marketing on virtual interface. With American flag in background.
Royal Papworth Hospital NHS Trust: Digitally transforming patient care
The Royal Papworth Hospital NHS Foundation Trustis centred on bringing tomorrow’s treatments to today’s patients with a clear mission to provide excellent, specialist care to patients suffering from heart and lung disease. We hear from Andrew Raynes who took up his role as CIO in 2017. He is overseeing a digital transformation program bringing value to staff and patients. “Using the global language of interoperability… we’ll see greater efficiency in terms of use of technology and sweating our assets. Furthermore, exploiting the benefits to support seamless care by allowing standards to do the heavy lifting.”
Toronto Community Housing: Supporting tenants with tech
Toronto Community Housing houses tenants in 106 of Toronto’s 158 neighbourhoods. It ensures over 43,000 low and moderate-income families are supported in their continuously managed homes. Luisa Andrews, VP Information Technology Services tells us it’s the best role she’s had in her career. “It’s the most challenging, and where I’ve seen the most progress in a short amount of time. I’m proud of my team and what we’ve accomplished in five years. We, and our partners, have enabled the corporation, through technology, to do what it needs to do for our tenants.”
Marshfield Clinic Health System:
Marshfield Clinic Health System provides care at over 50 locations across the US state of Wisconsin. Chief Data & Analytics Officer Mitchell Kwiatkowski explains its tech mantra to us: “We’re trying to toe that line while examining new technologies as they come out. We’re aiming to understand what they are, how they can help, and implementing things that are mature enough and show promise. I don’t think healthcare is necessarily risk-averse; it’s a highly regulated area that doesn’t always have deep pockets for investment. However, it’s people’s health at stake, so we have to be careful…”
Also in this issue, we get the lowdown on the tech trends for 2024 from Hitachi Vantara innovation guru Bjorn Andersson. We also hear from the WatchGuard Threat Lab research team with their cybersecurity predictions for the year ahead.
A passionate advocate for diversity, inclusion and equity of opportunity, Executive GM Ana Marinkovic leadsa team of 1,600+ small business experts. They lend over $1.2bn a month to Australian small businesses. National Australia Bank (NAB) plays a major role in propelling entrepreneurship across the country. Delivering better outcomes for small business owners sits at the very heart of NAB’s strategy. “Our scale and connectivity help us to tackle some of the biggest challenges facing our business and the communities we operate in,” says Ana.
TUI: Making travel plans mobile
The mobile side of TUI has never been more vital. TUI’s mobile apps were officially launched in 2013 and began as something of a proof of concept. For the entire international industry, moving from web to mobile devices was a huge shift. The initial set of apps were very skeletal and only integrated for UK and Nordic customers.
One of this year’s goals is to accelerate the native journey to make all the customer journeys native. This will further improving the customer experience. After a recent UI refresh, the app look and feel is fresh and sleek, and has plenty of exciting features for customers to enjoy. “Just in the last couple of months we’ve introduced an integration with OpenAI for a travel planner that helps you choose excursions,” Donia adds. “Seeing it grow over the years is so exciting.”
TARA Energy Services: tech fuelling growth
“Continuous improvement is woven into the fabric of the culture at TARA Energy Services,” says its proud Director of IT, Paul Parzen. “Every day, we face new challenges, both operationally in the field and strategically in the boardroom. We must make sure the organisation’s IT strategy for data management, core infrastructure, network architecture, and security is ready to meet them.”
Link Group: Shaking up UK’s pension market via digitalisation
“Some people might say, ‘wow, a pension. That sounds a little boring.’ But at the end of the day, what we do is help people retire in the best way possible and that’s a pretty good place to be.”
Those are the words of Dee McGrath, CEO of Link Group’s Retirement Solutions since May 2019. The company is a global, digitally-enabled business connecting millions of people with their pension assets – safely, securely and responsibly.
Evara Health: Technology delivering care for all
Evara Health’s mission statement is to help people become healthy and live healthy lives, and that means all people. A lot of health organisations don’t serve everybody and their treatments aren’t available under many types of insurance. However, Evara Heath doesn’t turn anybody away. It supports the underserved and the uninsured, and patients are treated regardless of whether they can afford it. Around 25% of patients have no insurance at all, and over half are covered by Medicaid, which isn’t accepted by everyone.
A passionate advocate for diversity, inclusion and equity of opportunity, Executive GM Ana Marinkovic leadsa team of 1,600+ small business experts. They lend over $1.2bn a month to Australian small businesses. National Australia Bank (NAB) plays a major role in propelling entrepreneurship across the country. Delivering better outcomes for small business owners sits at the very heart of NAB’s strategy. “Our scale and connectivity help us to tackle some of the biggest challenges facing our business and the communities we operate in,” says Ana.
TUI: Making travel plans mobile
The mobile side of TUI has never been more vital. TUI’s mobile apps were officially launched in 2013 and began as something of a proof of concept. For the entire international industry, moving from web to mobile devices was a huge shift. The initial set of apps were very skeletal and only integrated for UK and Nordic customers.
One of this year’s goals is to accelerate the native journey to make all the customer journeys native. This will further improving the customer experience. After a recent UI refresh, the app look and feel is fresh and sleek, and has plenty of exciting features for customers to enjoy. “Just in the last couple of months we’ve introduced an integration with OpenAI for a travel planner that helps you choose excursions,” Donia adds. “Seeing it grow over the years is so exciting.”
TARA Energy Services: tech fuelling growth
“Continuous improvement is woven into the fabric of the culture at TARA Energy Services,” says its proud Director of IT, Paul Parzen. “Every day, we face new challenges, both operationally in the field and strategically in the boardroom. We must make sure the organisation’s IT strategy for data management, core infrastructure, network architecture, and security is ready to meet them.”
Link Group: Shaking up UK’s pension market via digitalisation
“Some people might say, ‘wow, a pension. That sounds a little boring.’ But at the end of the day, what we do is help people retire in the best way possible and that’s a pretty good place to be.”
Those are the words of Dee McGrath, CEO of Link Group’s Retirement Solutions since May 2019. The company is a global, digitally-enabled business connecting millions of people with their pension assets – safely, securely and responsibly.
Evara Health: Technology delivering care for all
Evara Health’s mission statement is to help people become healthy and live healthy lives, and that means all people. A lot of health organisations don’t serve everybody and their treatments aren’t available under many types of insurance. However, Evara Heath doesn’t turn anybody away. It supports the underserved and the uninsured, and patients are treated regardless of whether they can afford it. Around 25% of patients have no insurance at all, and over half are covered by Medicaid, which isn’t accepted by everyone.
Our exclusive cover story this month centres around Versuni, home to some of the world’s most renowned home appliance brands
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Versuni: Procurement excellence to drive growth
Our exclusive cover story this month centres around Versuni, home to some of the world’s most renowned home appliance brands. Versuni is a company with a rich history, dating back to 1891, albeit under a different name. Philips Domestic Appliances was renamed Versuni after the Netherlands-based giant sold the business to China-based global leading Private Equity company Hillhouse Capital in September 2021. And so began a process of disentanglement as Versuni embarked on its journey to becoming a successful and independent entity with a simple yet clear purpose of turning houses into homes.
“We refer to ourselves as a 130-year-old company with a scale-up mentality,” explains Hugo Sparidans, Chief Procurement Officer, Versuni. “We combine the legacy we have with Philips with all the goodies here in this new, agile environment where things can happen much faster and with a different mindset fully focused on growth.”
Versuni is now operating under private equity ownership following its separation from Philips two years ago. “My boss called me and said, ‘So, we’re going to spin off Domestic Appliances. Do you have the interest to lead the transition for Procurement within that spin-off, and then potentially after?’ That was an interesting question for me,” Sparidans explains. “I’d had a great career within Philips working for a successful business, but I was now facing the idea of leaving that behind for a trip into the unknown.”
Mars Pet Nutrition LATAM is changing the sustainability game within the pet food sector. Gabriel Guzman, VP Procurement LATAM, and Ana Milena Zambrano, Climate & Sustainable Sourcing Head LATAM, explain how…
Gabriel Guzman, VP Procurement LATAM, and Ana Milena Zambrano, Climate & Sustainable Sourcing Head LATAM, are leading a major ongoing evolution within Mars Pet Nutrition LATAM. Guzman has worked in some of the world’s largest organisations over 25 years, spearheading many high-profile projects during this time. Zambrano’s career spans 15 years across consumer goods and supply chains, with sustainability as a core lifelong passion.
A focus on sustainability and the environment is nothing new for Mars – it’s part of the culture. It’s a business with firm ESG pillars and a clear concept of what sustainability means to the organisation. “We believe the world we want tomorrow starts with how we do business today,” says Guzman. “It is the vision at the heart of our Sustainable in a Generation Plan – one where the planet is healthy, people and their pets are thriving, and society is inclusive.”
We sit down with Trevor Tasker, CEO of EMCS, for the second time to discuss partnership, leadership, and the state of the industry
EMCS Industries is one of the best-kept secrets in its sector. An innovator from day one, EMCS Industries invented the world’s first electrolytic marine growth protection system (MGPS). This set the basic standard for the field, to the extent that everybody else now uses the same or similar technology based on the EMCS Canadian engineered and manufactured antifouling system. Trevor Tasker is the CEO of the company, and he’s not only passionate about what EMCS does, but his rich background in leadership puts him in excellent stead as head of an industry-leading company.
Tasker’s first job at the age of 16 was as a self-employed wedding DJ. Since then, he has honed his entrepreneurial spirit on an international scale in industries such as financial, large scale digital signage, steel manufacturing, and others. He has experience in both building his own businesses, and being an employee, giving him a good foundation of what it means to both lead and be led.
“It allows you to get a good mix of what you like, what you don’t like, how you’d like to be treated, and how that shapes the way you treat others as you move through your career,” says Tasker. He’s worked across a variety of industries but the common denominator has been that he’s always either been in a leadership position within a company or running his own company. He’s conducted business all over the world and collected the tools he’s needed to be the best leader he can.
Joaquin Rivamonte, Director of Procurement at AlphaSense, talks about how he’s bringing scalability to the organisation, and the benefits of procurement working hand-in-hand with the wider business
Joaquin Rivamonte has enjoyed a rich and varied career, one which taught him numerous lessons in preparation for his role with market intelligence platform, AlphaSense. He cut his teeth in the financial service sector; he was the Director of Procurement for some medium-sized investment banking companies in San Francisco, helping support Silicon Valley before the businesses he worked for were bought by bigger banks. One was acquired by JP Morgan Chase, where Rivamonte became VP of Procurement. He was then asked to move to New York, just as Silicon Valley was experiencing the dotcom boom.
Office photos at AlphaSense, 24 Union Square East in New York City.
Rivamonte’s background in building procurement departments from the ground up continued, and eventually, Microsoft took him on. He moved to Seattle to be part of the Microsoft team in 2005, and this was the beginning of his education in how very large procurement departments work. “I did have experience in large groups of people reporting to me already,” Rivamonte says, “but at Microsoft, I had $2-3bn dollars of category responsibility under me.
“I was responsible for putting together the consulting category, which was almost $1bn, and the outsourcing category of about $1.2bn, plus the web development category and a lot of different IT contracts.”
This month’s cover story features Fiona Adams, Director of Client Value Realization at ProcurementIQ, to hear how the market leader in providing sourcing intelligence is changing the very face of procurement…
And below are just some of this month’s exclusives…
ProcurementIQ: Smart sourcing through people power
We speak to Fiona Adams, Director of Client Value Realization at ProcurementIQ, to hear how the market leader in providing sourcing intelligence is changing the very face of procurement…
The industry leader in emboldening procurement practitioners in making intelligent purchases is ProcurementIQ. ProcurementIQ provides its clients with pricing data, supplier intelligence and contract strategies right at their fingertips. Its users are working smarter and more swiftly with trustworthy market intelligence on more than 1,000 categories globally.
Fiona Adams joined ProcurementIQ in August this year as its Director of Client Value Realization. Out of all the companies vying for her attention, it was ProcurementIQ’s focus on ‘people power’ that attracted her, coupled with her positive experience utilising the platform during her time as a consultant.
Although ProcurementIQ remains on the cutting edge of technology, it is a platform driven by the expertise and passion of its people and this appealed greatly to Adams. “I want to expand my own reach and I’m excited to be problem-solving for corporate America across industries, clients and procurement organizations and teams (internal & external). I know ProcurementIQ can make a difference combined with my approach and experience. Because that passion and that drive, powered by knowledge, is where the real magic happens,” she tells us.
ASM Global: Putting people first in change management
Ama F. Erbynn, Vice President of Strategic Sourcing and Procurement at ASM Global, discusses her mission for driving a people-centric approach to change management in procurement…
Ripping up the carpet and starting again when entering a new organisation isn’t a sure-fire way for success.
Effective change management takes time and careful planning. It requires evaluating current processes and questioning why things are done in a certain way. Indeed, not everything needs to be changed, especially not for the sake of it, and employees used to operating in a familiar workflow or silo will naturally be fearful of disruptions to their methods. However, if done in the correct way and with a people-centric mindset, delivering change that drives significant value could hold the key to unleashing transformation.
Ama F. Erbynn, Vice President of Strategic Sourcing and Procurement at ASM Global, aligns herself with that mantra. Her mentality of being agile and responsive to change has proven to be an advantage during a turbulent past few years. For Erbynn, she thrives on leading transformations and leveraging new tools to deliver even better results. “I love change because it allows you to think outside the box,” she discusses. “I have a son and before COVID I used to hear him say, ‘I don’t want to go to school.’ He stayed home for a year and now he begs to go to school, so we adapt and it makes us stronger. COVID was a unique situation but there’s always been adversity and disruptions within supply chain and procurement, so I try and see the silver lining in things.”
SpendHQ: Realising the possible in spend management software
Pierre Laprée, Chief Product Officer at SpendHQ, discusses how customers can benefit from leveraging spend management technology to bring tangible value in procurement today…
Turning vision and strategy into highly effective action. This mantra is behind everything SpendHQ does to empower procurement teams.
The organisation is a leading best-in-class provider of enterprise Spend Intelligence (SI) and Procurement Performance Management (PPM) solutions. These products fill an important gap that has left strategic procurement out of the solution landscape. Through these solutions, customers get actionable spend insights that drive new initiatives, goals, and clear measurements of procurement’s overall value. SpendHQ exists to ultimately help procurement generate and demonstrate better financial and non-financial outcomes.
Spearheading this strategic vision is Pierre Laprée, long-time procurement veteran and SpendHQ’s Chief Product Officer since July 2022. However, despite his deep understanding of procurement teams’ needs, he wasn’t always a procurement professional. Like many in the space, his path into the industry was a complete surprise.
But that’s not all… Earlier this month, we travelled to the Netherlands to cover the first HICX Supplier Experience Live, as well as DPW Amsterdam 2023. Featured inside is our exclusive overview from each event, alongside this edition’s big question – does procurement need a rebrand? Plus, we feature a fascinating interview with Georg Rosch, Vice President Direct Procurement Strategy at JAGGAER, who discusses his organisation’s approach amid significant transformation and evolution.
Nigel Greatorex, Global Industry Manager at ABB, on how digital technologies can support decarbonisation and net zero goals
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Nigel Greatorex is the Global Industry Manager for Carbon Capture and Storage (CCS) at ABB Energy Industries. He explains how digital technologies can play a critical role in the transition to a low carbon world by enabling global emissions reductions. Furthermore, he highlights the role of CCS and how challenges can be overcome through digitalisation.
Meeting our global decarbonisation goals is arguably the most pressing challenge facing humanity. Moreover, solving this requires concerted global action. However, there is no silver bullet to the global warming crisis. The solution requires a mix of investment, legislation and, importantly, innovative digital technologies.
Decarbonisation digital technologies
It’s widely recognised decarbonisation is essential to achieving net zero emissions by 2050. Decarbonisation technology is becoming an increasingly important, rapidly growing market. It is especially relevant for heavy industries – such as chemicals, cement and steel. These account for 70 percent of industrial CO2 emissions; equal to approximately six billion tons annually.
CCS digital technologies are increasingly seen as key to helping industries decarbonise their operations. Reaching our net zero targets requires industry uptake of CCS to grow 120-fold by 2050, according to analysis from McKinsey & Company. Indeed, if successful, it could be responsible for reducing CO2 emissions from the industrial sector by 45 percent.
A Digital Twin solution
ABB and Pace CCS joined forces to deliver a digital twin solution. It reduces the cost of integrating CCS into new and existing industrial operations. Simulating the design stage and test scenarios to deliver proof of concept gives customers peace of mind. Indeed, system designs need to be fit for purpose. Also, it demonstrates the smooth transition into CCS operations. Additionally, the digital twin models the full value chain of a CCS system.
Cybersecurity leader Shinesa Cambric on Microsoft’s innovation journey to identify, detect, protect, and respond to emerging threats against identity and access
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This month’s cover story highlights a cybersecurity program protecting billions of users.
Welcome to the latest issueof Interface magazine!
Interface showcases leaders at the forefront of innovation with digital technologies transforming myriad industries.
Shinesa Cambric is on a mission to drive innovation for cybersecurity at Microsoft. Moreover, by embracing diversity and opening all channels towards collaboration her team tackles anti-abuse and delivers fraud-defence. Continuous Improvement doesn’t just play into her role, it defines it…
“In the fraud and abuse space, attackers are constantly trying to identify ways to look like a legitimate user,” warns Shinesa. “And this means my team, and our partners, have to continuously adapt. We identify new patterns and behaviours to detect fraudsters. At the same time, we must do it in such a way we don’t impact our truly ‘good’ and legitimate users. Microsoft is a global consumer business and any time you add friction or an unpleasant experience for a consumer, you risk losing them, their business and potentially their trust. My team’s work sits on the very edge of the account sign up and sign in process. We are essentially the first touch within the customer funnel for Microsoft – a multi-billion dollar company.”
ABB: Digital Technolgies contributing towards Net Zero
Nigel Greatorex, Global Industry Manager for Carbon Capture and Storage (CCS) at ABB Energy Industries, explains how digital technologies can play a critical role in the transition to a low carbon world. He highlights the role of CCS in enabling global emissions reductions and how challenges can be overcome through digitalisation…
“It is widely recognised decarbonisation is essential to achieving net zero emissions by 2050. Therefore, it’s not surprising that emerging decarbonisation technology is becoming an increasingly important, and rapidly growing market.”
CSI: How can your IT estate improve its sustainability?
Andy Dunn, Chief Revenue Officer at IT solutions specialist CSI, reveals how digital technologies can contribute to ESG obligations: “Sustainability is a now seen as a strategic business imperative, so much so that 74% of companies consider Environmental, Social and Governance (ESG) factors to be very important to the value of their company. Additionally, we know almost three in four organisations have set a net zero goal. With an average target date of 2044, 50% of organisations are seeking more energy efficient products and services.”
https://www.youtube.com/watch?v=tsDaZiSO1ho
“Optimising energy use and consolidating servers and storage infrastructure form a strong basis for shaping a more environmentally friendly and efficient IT estate. It no longer needs to be the Achilles Heel of an ESG policy. “
Mia Platform: Sustainable Cloud Computing
Davide Bianchi, Senior Technical Lead at Mia Platform, explores the silver lining of sustainable cloud computing. He reveals how it can help us reduce our digital carbon thumbprint with collaboration, efficient use of applications, containerisation of apps, microservices and green partnerships.
“We’re already on an important technological path toward ubiquitous cloud computing. Correspondingly, this brings incredible long-term benefits too. These include greater scalability, improved data storage, and quicker application deployment, to name a few.”
Also in this issue, we hear from Doug Laney, Innovation Fellow at West Monroe and author of Infonomics and Data Juice. Also, we learn how companies can measure, manage and monetise to realise the potential of their data. And, Deputy CIO Melvin Brown discusses the people-centric approach to IT supporting America’s civil service at The Office of Personnel Management (OPM).
Doug Laney is Innovation Fellow at West Monroe and a leading Data & Analytics strategist. We caught up with the author of Infonomics and Data Juice to talk tech and how companies can measure, manage and monetise to realise the potential of their data
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Our cover story explores the rise of data and information as an asset.
Welcome to the latest issueof Interface magazine!
Interface showcases leadersaiming to take advantage of data, particularly in a new world of AI technologies where it is the fuel…
How to monetise, manage and measure data as an asset
Our cover star is pretty big in the world of analytics… We meet the guy who defined Big Data. Doug Laney is Innovation Fellow at West Monroe and a leading Data & Analytics strategist. We caught up with the author of Infonomics and Data Juice to talk tech and learn how companies can measure, manage and monetise to realise the potential of their information. In his first book Laney advised companies to stop being fixated on hindsight-oriented analytics. “It doesn’t actually move the needle on the business. In the stories I’ve compiled over the last decade, 98% have more to do with organisations using data to diagnose, predict, prescribe or automate something. It’s not about asking questions about what happened in the past.”
Canvas Worldwide: A data-driven media business
Continuing this month’s data theme, we also spoke with Alisa Ben, SVP, Head of Analytics at full-service media agency Canvas Worldwide. Data has transformed the organisation, and what its clients do. “We look holistically at the client’s business and sometimes the tools we have might be right for them, sometimes not. It’s more about helping our clients achieve their business outcomes.”
TUI Musement: from digital transformation to digital pioneer
At travel giant TUI, handling data effectively is paramount when communicating consistently and meaningfully with up to 25 million customers annually. David Garcia, CIO for TUI Musement, talks about the tech evolution driving the travel giant’s provision of experiences, transfers and tours. It’s a big part of its operational shift from local to global. “As a CIO, I’ve always been interested in how the tech innovations we drive can support the business and add value.”
Hiscox: making cybersecurity more accessible
Liz Banbury, CISO at Hiscox and president of (ISC)² London Chapter, talks to us about how cybersecurity can become a more accessible, realistic career path for almost anybody. “When I was at school, topics like computer science didn’t even exist,” Banbury explains. “In one of my first jobs, over in Hong Kong, we were still using a typewriter! A lot has changed. My key point here is that there’s a lot of cybersecurity professionals who are really good at their job. They are inspiring, and have come from all walks of life. Crucially, they don’t have a maths, computer science, or technological background at all. But they still make great cybersecurity professionals.
Portland Community College: Risk vs Speed in Cybersecurity
Reet Kaur, former Chief Information Security Officer at Portland Community College, discusses the organisation’s transition to the cloud amid a digital transformation journey. “I don’t want to work with people who just say yes all the time. I want my ideas challenged to help forge the excellence in the security programmes I help build.”
DBHDS: Cybersecurity in healthcare
The Virginia Department of Behavioral Health and Developmental Services (DBHDS) exists to create ‘a life of possibilities for all Virginians’ and transform behavioural health. Its focus is on supporting people across the entire commonwealth. It helps them get the support they need in order to take wellness and recovery into their own hands. In an area like healthcare, sensitive information is all over the place, meaning cybersecurity is a priority – and this is where Glendon Schmitz, CISO at DBHDS, comes in. “The security team exists to help the wider organisation achieve its objectives with data. We’re there to protect the business, not the other way around.”
Also in this issue, we schedule the can’t miss tech events and get the lowdown on IoT security from the Mobile Ecosystem Forum.
Melvin Brown, Deputy CIO at the Office of Personnel Management, explains the organisation’s ‘sprint to the cloud’ and its determination to modernise at every level.
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Our cover story highlights the Office of Personnel Management’s ‘sprint to the cloud’ with technology.
Welcome to the latest issueof Interface magazine!
Interface hears from leaders who champion a people-first approach driving successful technology transformations.
Culture Modernisation at the Office of Personnel Management
The Office of Personnel Management (OPM) is a government entity which manages America’s civil service. This month’s cover story explores how an organisation that prioritises people is taking a human approach to IT. Deputy CIO Melvin Brown oversees a portfolio of $500m in programs and a growing workforce of around 300 federal employees and contractors. OPM is undergoing a major cloud transformation… “We want to be cloud-first and cloud-smart as we move forward,” he explains. “So, we created a two-year sprint to the cloud plan where we take all our major applications and move them to the cloud in order to take advantage of all the benefits that brings, from both a security and a utility perspective.”
International Trade Administration: A strategic vision for technology
The International Trade Administration (ITA) strengthens the competitiveness of U.S. industry, promotes trade and investment, and ensures fair trade through the enforcement of trade laws and agreements. We hear from its CIO Gerald Caron who is passionate about involving all stakeholders in ITA’s transformation… “We’re introducing different ways of thinking to drive innovation at the International Trade Administration (ITA). What is the art of the possible? We’re looking to explore possibilities with technology across our business units and build simple foundations for the development of more complex approaches.”
Irwin Mitchell: Technology with a human touch
Also espousing the importance of a people-centric approach, Graham Thomson, Chief Information Security Officer at Irwin Mitchell, discusses his firm’s transformative legal solutions. “We’re far more than just a law firm,” he says. “I think what sets us apart is that we’re very people focused and an organisation that genuinely cares about not only our customers but our people too. People are your biggest asset, and you have to look after them.”
State of Vermont: Using AI for good
We spoke with Shawn Nailor, Secretary and CIO at State of Vermont, about IT modernisation, tackling cybersecurity state-wide, and how AI is being used for the good of Vermonters. “We’ve got to be practitioners in order to give good guidance on how to use advanced technology and where… We want to establish a practice by which we can lead by example and show good applications or AI tools to advance services and the delivery of products.”
Also in this issue, we round up the must attend tech events; get game-changing AI, Metaverse and ‘moonshot’ insights from Lenovo, and learn why people are at the heart of the decision-making process at energy company newcleo.
Amit Thawani, CIO for Consumer Data & Engagement Platforms at Wells Fargo, on the journey towards becoming a customer-centric company
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This month’s cover story reveals how a customer-centric approach to technology is helping Wells Fargo deliver stable, secure, scalable, and innovative services.
Welcome to the latest issueof Interface magazine!
It’s our biggest issue yet! The common theme this month is the focus on the creation of customer-centric technologies that offer reliable, secure and helpful user journeys from travel and banking to health and business.
Interface dives deep for insights on understanding, planning, implementing and communicating change across industries.
Amit Thawani, Chief Information Officer (CIO) for Consumer Data & Engagement Platforms (CDEP) on the technology journey at Wells Fargo: “All tech employees at Wells Fargo are tasked with working towards delivering stable, secure, scalable, and innovative services at speed that delight and satisfy our customers while unleashing the skills potential of our employees.”
TUI: Developing a technology ecosystem
Kristof Caekebeke, CIO for Product & Engagement, is a member of the leadership team that is driving the transformation of the TUI technical ecosystem which has seen Master Domain Owners taking different blocks of the ecosystem under their control to roll out across the organisation.
TUI Group
Responsible for product and engagement, Caekebeke’s focus is on building products out of the thousands of hotels, flights, experiences and cruises TUI is offering. “I’m responsible for every contact point between the customer and TUI. The websites, the mobile apps, the retail systems – any contact point we have between the customer and TUI. It’s a large team of 1,100 tech people.
A digital bank transformation journey with Banco PAN
“Until 2018 Banco PAN was very much an analogue company reliant on legacy paper processes,” recalls Leandro Marçal. Joining the bank in December 2020, to become Technology & Operations Director (CIO/COO), Marçal was tasked with accelerating a digital transformation journey.
“Banco PAN invested in innovation before I arrived,” says Marçal. “It is my team’s job to formalise the path towards becoming a digital bank. Our legacy operation was digitalising. It was an opportunity to improve the customer experience with our checking account and credit card systems.”
Pohlad Companies: The power of people
A pillar of the community in Minneapolis, Pohlad Companies is well known to Minnesotans for its influence, its charity work, and the opportunities it has created for people since the 1950s.
Alongside significant commercial real estate investments, Pohlad Companies owns a custom engineering and robotics company, a group of automotive dealerships specialising in luxury vehicles, a film production studio, and many more businesses. Famously, the Pohlad family also owns the Minnesota Twins, a Major League Baseball team.
This variety is part of what makes Rachel Lockett’s job so exciting. She’s Pohlad Companies’ CIO and has spent a decade in her current role. Lockett began her career as a programmer over 25 years ago and quickly moved into IT leadership management.
Coalfire: Embracing change in cybersecurity
If you wait for something to happen, then it’s often too late. The art of having a finger on the pulse is an essential ingredient to success. Failure to manage change and implement cybersecurity protocols could mean leaving an organisation vulnerable to hackers.
Sreeveni Kancharla, Coalfire’s first Chief Information Officer, is leading the company’s digital transformation with unwavering determination. As a cybersecurity advisor, Coalfire assists private and public sector organisations in managing threats, closing gaps, and mitigating risks. Kancharla ensures that her team stays up-to-date with the latest technologies to guard against zero-day attacks.
Uni of Kansas Health: Cybersecurity at the heart
Speed versus safety. The two topics are intrinsically linked and vital in their own individual way. But can you have both in healthcare when the risks are so great? Ultimately, there is no higher stake than saving people’s lives – it goes above everything and is why cybersecurity is so vital.
Protecting the healthcare system
“There’s nothing more important to me than patient care,” affirms Michael Meis, Associate Chief Information Security Officer at The University of Kansas Health System. “It is one of the highest callings you can imagine, to be able to help people. While the cybersecurity team and me, individually, do not directly care for patients, we enable a lot of that patient care to continue and to be able to achieve some of the goals that the health system has set to provide that healing, research, and innovation within the healthcare space.”
Also in this issue, we ask ChatGPT what the future holds for AI and learn from Zoom how businesses can leverage analytics for insights from their hybrid events.
Dominic Fitch, Head of Creative Change at leadership development specialist Impact International, outlines five forward-looking skills for the next generation of leaders.
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There is no denying that the world of business is evolving at an incredibly fast pace. With the constant launch of new tools and innovative tech, workers are required to embrace a wide range of modern equipment on a regular basis.
As employees continue to up their game, it is only natural that the next generation of leaders will need a set of updated skills too.
Dominic Fitch, Head of Creative Change at leadership development specialist Impact International
Here, with some insights from Dominic Fitch, Head of Creative Change at leadership development specialist Impact International, we take a look at some crucial future requirements that business owners and managers will have to nail to guide their team in an efficient, successful fashion.
1. Technological inclination
In the same way that youngsters jump at the latest technology at the first opportunity, it is important for future leaders to emulate that same drive and curiosity.
The world is becoming increasingly digitalised, and the business sector is no exception. This is why company owners and managers should have a basic understanding of today’s technologies, exploring how modern equipment can actively aid their business. From cloud computing to artificial intelligence and UX development, there are many different tools that can increase your organisation’s chance of success.
Of course, nobody expects you to be an expert in computing coding or programming. But getting precious digital and tech skills under your belt can provide you with more than one ace up your sleeve.
2. Empathy and emotional intelligence
Just like an experienced, Michelin-star chef, future leaders have to juggle and balance several different aspects to create a perfect menu. Yes, technology will play an essential role in developing and driving your company forward. But software and robots have not yet mastered emotional intelligence, which means they cannot help on the more human side of things.
A business owner or manager should always strive to harness their relationship with colleagues and team members. Empathising, sympathising, supporting, and understanding the necessities of your employees is crucial, as this can inspire confidence and a sense of belonging in your people. If workers feel appreciated and cared for, there is a good chance they will go the extra mile to spur the growth of your business.
Hence, taking an interest in your team’s well-being and nurturing a shared feeling of unity is a fundamental attribute to possess.
3. Openness to diversity
One of the most prominent advantages of modern technology is that it’s abating boundaries and favouring connections with people worldwide. Hence, as time goes by, it is becoming more and more important to collaborate with colleagues from all over the globe. This means that, on a daily basis, you are working with teams from different cultures and who may even speak another language.
Engaging with people from all walks of life and with diverse backgrounds can open the doors to endless opportunities. Not only will you benefit from a vast range of experience, knowledge, and expertise, but you will also learn precious lessons on how to enter and succeed in global markets. Therefore, as the world becomes increasingly connected, future managers need to embrace diversity and make the most of its invaluable benefits.
4. Clarity and communication
Clarity and effective communication are timeless features of strong leadership. Managers need to build bridges between their team members and outline the company’s missions in a concise, transparent manner. In this respect, leadership development training is an excellent place to start when it comes to learning how to deliver messages and strategies that are straight to the point.
Future leaders have to be able to identify the right channels to carry this out in a smooth, effective way. With the many digital platforms at our disposal, it is important to choose one that can keep people on the same page at all times. What’s more, as innovations and possibilities arise, future managers need to communicate the essence of the question at hand in a digestible fashion.
Simplifying a complex situation or task is a crucial skill, and it is one that can aid both your team’s productivity and your business’ efficiency.
5. Foresight and adaptability
As technology evolves, artificial intelligence progresses, and the business sector continues to mutate, future leaders need to be flexible. Business owners and managers have to be ready to adapt and make sure they are not fazed by what the future holds. They should monitor trends and look at how to welcome change with a positive attitude.
How can you prepare for upcoming possibilities? One effective way is to run through various scenarios and start outlining all possible outcomes. What’s more, engaging with new circumstances and journeying out of your comfort zone can be an important learning curve. In fact, it will teach you how to deal with unfamiliar situations. If an unexpected opportunity comes about, you will have both the skills and confidence to respond to them with confidence.
To keep in step with the times, business leaders of the future will need to polish their set of skills. From emotional intelligence and adaptability to clear communication and openness to diversity, there are many aspects that will strengthen your leadership. By showing an interest for new software and technological developments, you can make sure your company is expanding its reach and exploring new, successful paths.
In EY’s January 2023 European CEO Outlook Survey, it was discovered European CEOs expect short-term challenges but have reason for optimism.
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Today’s CEO faces unprecedented challenges like never before and is tasked with navigating choppy waters.
Amid global uncertainty caused by a potential recession and on the back of war in Ukraine and disruption caused by COVID-19, it can feel overwhelming for even the most experienced leaders.
A positive horizon?
Despite this, consulting giants EY has discovered reason for optimism in its January 2023 CEO Outlook Pulse survey which includes 390 responses from CEOs across Europe. While the survey found 98% of respondents are indeed expecting a global recession, the majority of European CEOs (52%) anticipate it to be temporary and not a persistent one. These figures are a greater percentage than CEOs worldwide (48%) who point to more long-term optimism for the global economy among European CEOs.
According to the survey, 47% of European respondents believe this recession will be different from previous slowdowns. The recent crisis is more driven by myriad geopolitical challenges and an ongoing fallout from the COVID-19 pandemic compared with previous recessions primarily as a result of financial and credit market factors. Many CEOs are aware of this difference and acknowledge the necessity for new and sustainable approaches that build resilience in uncertain times.
In EY’s last survey in October 2022, ongoing pandemic-related concerns such as supply chain issues were the most important topics. However, since then supply chain pressures have eased to some extent with data from S&P Global Purchasing Managers’ Index (PMI) showing improvement. Only 32% of European CEOs now cite supply chains as the key issue which is down from 41% in October. Given inflationary pressures and the upward movement in interest rates, European CEOs are increasingly focusing on the policies and steps they believe European governments should take to help businesses mitigate the downturn.
About 35% of European respondents, in comparison to 32% globally, consider uncertain monetary policy and increasing cost of capital as the biggest challenge to growth. With inflation beginning to decline in November 2022 after 17 months of upward trajectory, CEOs are closely following central bank activity for potential course changes.
A strategy change
In response to the current recession, EU policymakers are considering more dovish economic recovery proposals instead of top-down austerity rules seen during the sovereign debt crises a decade ago. This includes rethinking debt rules to help countries navigate this downturn. Alongside this, EU governments now face pressure on how to handle the discontent of people protesting against the rising cost of living crisis and questions still remain on how extensively they will intervene. In particular, governments are reluctant to pursue austerity measures as a result of protests from the crisis 10 years ago. Meanwhile, for CEOs, financing will continue to be a challenge as a result of increased capital costs that are set to persist which disrupted growth plans.
European CEOs have learned from previous financial crises and recognise that it is essential to think of new and sustainable strategies to capitalise on the opportunities.
What is the way forward?
According to EY, there are five directives which are worth exploring over the next few years.
Investing in operations European CEOs identify investing internally to boost operations as extremely important. Risk isn’t only about extraordinary events; day-to-day operational failures can also lead to losses, regulatory action and reductions in share prices. Operations such as finance, accounting and supply chain have emerged as the top priority area of investment for European CEOs (41%).
Recognising disruption and accelerating digital transformation
Amid ongoing global pressure to embrace new technologies and a digital transformation, COVID-19 further accelerated a trend toward digitalisation. Around 38% of European CEOs (in line with 37% globally) are looking to invest in digital transformation, data and technology to emerge stronger from this downturn.
Developing a strong environmental, social and governance (ESG) strategy
Businesses need to ensure ESG processes are moved to the centre of business strategy. Sustainability, including net zero and other environmental issues, as well as societal priorities, is one of the key areas that European CEOs identify as a need for more investment.
Nurturing talent
Despite the recession, the labour market remains tight in Europe. European CEOs are weighing cost management options, with 37% considering a move to contract employment and 38% planning on reducing learning and development investments. About one third are also considering a restructuring of their workforce compared with global and Americas CEOs (36% and 42%) considering the same approach.
Portfolio transformation
Looking ahead, portfolio rebalancing is expected to be a key theme as CEOs will be compelled to make bold decisions regarding their business portfolio. During a recession, companies must critically assess what their core businesses are, what their focus should be and where they can create value by spinning out or selling non-core assets. Some 93% of European CEOs consider prioritising restructuring opportunities as an important initiative in the next six months.
Mike Randall, CEO at Simply Asset Finance, discusses how to build a people-first strategy that enables growth.
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As the UK economy continues to balance on the edge of a recession, employee retention is quickly being pushed to the top of CEOs’ lists. Over the past couple of years, the job market has shifted dramatically with previously unheard terms such as ‘the great resignation’, ‘quiet quitting’ and ‘hybrid working’ becoming commonplace. People are rightly prioritising their working situation and job satisfaction levels, questioning whether they believe in the organisations they are committing so much time to.
Consequently, there has been a power dynamic shift in favour of the workforce. Reportedly in the third quarter of 2022 businesses witnessed over 365,000 job-to-job resignations across the UK. In similar fashion, the phenomenon of ‘quiet quitting’ – doing the bare minimum required of a job – has become a growing concern but its rise is prompted by a growing number of employees feeling disengaged in their roles.
Against this backdrop of a highly turbulent job market, and increasingly difficult macro-economic pressures, it’s vital for CEOs to prioritise a people-first strategy to ensure healthy growth for their business in 2023. Data from Deloitte has even revealed that experts believe how engaged a workforce feels can directly correlate to overall business output, with 93% of HR and business leaders in agreement that building a sense of belonging is crucial for organisational performance.
Mike Randall, CEO at Simply Asset Finance
However, creating the right environment and recruiting, maintaining and nurturing the right talent to ensure a people first approach can be daunting. With this in mind, here are four learnings CEOs might want to consider when approaching this challenge:
1. Define your beliefs
Before CEOs and founders can hope to attract the right talent, it is critical to first distil and translate the business vision into something that can be understood by employees. Put simply, this means defining the business’ beliefs.
Some business leaders may already refer to this as an ‘employer brand’, and it can be key to not only securing better talent, but also saving a business money in the long-term. Data from LinkedIn for example, recently found that a strong employer brand can help to reduce employee turnover by as much as 28% and cost-per-hire by 50%. Defining these beliefs – or the tenets a business does and doesn’t stand for – is therefore the perfect exercise to put a vision onto paper, and clearly communicate it to its prospective talent.
2. Build a solid culture
Once these beliefs have been defined, they must be reflected, and built into a strong culture. A business’ beliefs should permeate through the whole organisation – from customer communications, to how staff are treated, to how leaders run the business. Culture should essentially be a representation of a business’ beliefs being put into practice.
Building a strong culture in a business, however, is not solely about these beliefs but also extends into how employees are equipped with the tools they need to succeed. Companies that invest in learning and development for example, have been found to benefit from a 24% higher profit margin than those that don’t, according to the Association of Talent Development. Training and development should therefore be seen as a worthwhile and necessary investment that can solidify your culture and ensure profitability, not just an unavoidable cost.
3. Invest in retention
With research from Oxford Economics estimating the average turnover per employee earning £25,000 a year to be £30,000 plus, there is an evident cost to businesses that fail to invest in retention. Tackling this will mean regularly taking the time to truly understand what makes employees tick – and more specifically, understanding their motivations, attitudes, behaviours, strengths and weaknesses.
As the past few years have evidenced, individuals are no longer deciding where they work solely based on salary, but are also thinking about employer values, flexibility, and benefits. To avoid employee churn, businesses should regularly take time to understand what drives their employees and implement retention strategies to address these drivers. Gathering and analysing employee data will play an important role here over the coming years, and should be built into a long-term strategy to optimise employee satisfaction.
4. Build for the future
A common challenge encountered by modern businesses and startups wanting to take a people first approach, can be their ability to stay committed to it. As a business grows in size and becomes successful, it can be all too easy to let external factors dictate its purpose and for it to lose sight of what it initially stood for. The reality is that when this happens, a business is in its most vulnerable state – as its beliefs become increasingly distant, and worse, employees no longer understand what it stands for.
When creating a people-first strategy its therefore important to think long-term. If there are external factors that will potentially put this strategy at risk in future, it’s crucial to identify them, and put in practical steps to mitigate them where possible. The pandemic, for example, is a prime example of an external factor that interrupted the status quo of many businesses – disrupting employees, customers and operations in general. While they can be unpredictable in nature, having a plan to get through these times can help to get you back on track and reassure talent that a solution is in place.
In this economic climate, defining beliefs, building a solid culture, and retention plan should be at the core of every business’ strategy. It’s only when these things are in place that a business can hope to attract and retain talented people that exude the same passion and values built into the heart of a business. As while a business’ growth may be defined by its leaders, it is delivered by its people who are putting that vision into practice.
Diane Lightfoot, CEO of Business Disability Forum, on changing the narrative around diversity and inclusion in the workplace
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Disability is still often parked in the “too difficult” box when it comes to Diversity, Equity and Inclusion. Employers are often afraid of doing or saying the wrong thing and as a result, do or say nothing.
As a CEO, the stakes feel (and often are) higher. That high profile platform can feel daunting at the best of times; when tackling an unfamiliar topic, it can feel positively overwhelming.
Talking about Disability
What we do and say as senior leaders has a huge impact. Indeed, it is critical in driving change. In 2020, we published our global research report, ‘Towards a Disability-Smart world: Global disability inclusion strategy’ . Conducted with our Partner, Shell, the research found that 91 per cent of respondents across multi-national businesses agreed that identifying a senior global disability champion is essential. Talking about disability and diversity – normalising the conversation so it becomes business as usual, has a massive role to play in creating a culture of “psychological safety” in organisations; one in which employees feel safe to share a difference and to ask for the support they need.
As senior leaders, it is easy to forget our privilege and that the environment we inhabit, and how we think the culture feels, may look very different to others. I often quote a research study by our partner Accenture which showed a marked gap (of around 20% across the board) between senior executives’ perception of how “safe” their employees would feel to raise a sensitive topic (including talking about a disability) and how safe they actually felt.
Changing the narrative
So, what can CEOs do to change the narrative? At Business Disability Forum (BDF), we see time and time again that CEOs or senior leaders who have a personal knowledge of and interest in disability issues – perhaps because of their own experience or that of a close family member – are champions in driving change. Senior leaders are less likely to publicly identify as being disabled – the Valuable 500 campaign often quotes the stat that 1 in 7 C suite leaders have a disability, but 4 out of 5 are hiding it. Yet if you as a senior leader are willing to talk about a disability or long-term condition it is hugely powerful in enabling others to do the same.
Storytelling and sharing personal stories can have a huge impact – for good or for bad! The good: A high profile CEO we work with talks openly about his disabled adult children and the moral imperative that he believes that large businesses have in breaking down barriers and opening up opportunities to people who face greater barriers to employment. The bad: I vividly recall being in a meeting with an organisation (not a BDF member!) to plan a possible disability awareness campaign. At the end of the meeting, the CEO then told an anecdote about having had an operation in the past year and being back at work the next day – unlike one of their counterparts who had taken two weeks off to recover. What message does that send? I’ll warrant that those who overheard that story were less likely, not more, to talk about a disability as a result.
Being a disability ally
But you don’t need to have your own lived experience to be an ally. For many businesses, the pandemic brought many senior leaders “up close and personal” with their disabled employees for the first time. In a survey we carried out to find how out how BDF Members and Partners were responding to Covid19, we found that in 83 per cent of organisations the general response to Covid-19 – including arranging internal communications, home working, and ensuring staff have the adjustments they need – was being led by the Chief Operating Officer or Chief Executive.
Whilst the figure for responsibility for ensuring staff with disabilities and long-term conditions specifically can move to home working was much lower – 31 per cent said this was the direct responsibility of the COO or CEO as compared to 69 per cent for HR – this is still encouraging in giving senior leaders much greater insight into the issues facing their disabled employees. Too often we “don’t know what we don’t know” – but once we do, we can call it out.
I was very heartened by a discussion with one of our members who was planning an office relocation in which the senior champion leading the project told me that he had vetoed one possible option because it had cobbled paving directly outside – inaccessible to wheelchair users and difficult for anyone with a mobility or visual impairment.
Role Modelling
Leadership is also critical in modelling adjustments and different ways of working. As a CEO, you probably have the freedom to quietly get on with making the adjustments you need, whether that is working from home one day a week (and it’s worth remembering that pre-COVID-19 home working was the most frequently requested workplace adjustment), different/flexible working times or buying some ergonomic equipment. You don’t need to go through a process or to ask HR – but if you share a different way of working with the wider team again it can be hugely powerful in making it ok for others to ask for the support they need. And again, people are often afraid to ask for even simple adjustments that could transform the quality of their working life.
Our Great Big Workplace Adjustments Survey 2019 found that 28 per cent of those with adjustments and 34 per cent of those without adjustments (but who would have benefited from them) said they did not make requests because they were worried their employer might treat them differently. Again, actions speak louder than words. If the boss doesn’t take a lunch break, the rest of their team is unlikely to.
I hope that one positive legacy of COVID-19 will be a kinder and more human style of leadership. During the pandemic, we were forced to be more human in the way we worked; viewed in our home setting without the “trappings of office” or our workplace “armour” in terms of a formal dress code. The intimacy of letting people into our homes (albeit via our video camera) was a powerful thing. The blurring of lines between work and home has its downsides but has positives too as we started to see the “whole people” in our teams; ironically, since the pandemic began, many of us have got to know our colleagues better than we did before.
Culture Change
Of course, culture needs to be backed up by practical action. Make sure you equip people managers throughout your business with the tools and knowledge they need to have a conversation about disability, to identify any barriers people may be facing and to know where and how to get practical support. Our free Disability Essentials resources is a good place to start.
As Peter Drucker famously said: “Culture eats strategy for breakfast.” Like it or not, what you do as a CEO not only matters but has a disproportionate impact. Why not use that for the good?
Welcome to the launch issue of CEOstrategy where we highlight the challenges and opportunities that come with ‘the’ leadership role
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Our first cover story explores how Vodafone is leveraging strong leadership to drive the collaborations enabling businesses to champion change management and better use technology.
Welcome to the launch issue of CEOstrategy!
Tasked with accelerating business growth, while building the synergies across an organisation that can drive innovation to meet diverse customer needs and keep revenues on track, the modern CEO must be mentor, marshall and motivator on the journey to success.
“Leadership is purpose, it’s why do you do the things you do…”
Our cover story throws the spotlight on Vodafone US CEO David Joosten; also Director for Americas & Partners Markets at Vodafone Business, he talks to CEOstrategy about leading from the front and setting the standards to deliver growth while keeping employees and customers happy.
“People follow leaders that are honest about themselves. If you can reflect on what you’ve done well, but also where you need to improve it can inspire others to do the same.”
EMCS Industries Ltd: How a CEO can navigate change management
“Why hire talent and then tell them what do? You have so much to learn from the great people you hire. Micromanaging is not management, and it’s certainly not leadership. Let your people thrive!”
Read our interview with EMCS Industries Ltd CEO Trevor Tasker for more thought-provoking insights on leadership from the shifting tides of the marine industry in this maiden issue.
How to be an authentic leader
“At the most basic human level, everyone knows what it’s like to feel heard by another person, and how that changes our behaviour. It can help anger and sadness subside and enable us to start seeing things differently. So, when employees are being listened to by their leaders, it can only help how an organisation operates.”
Dr Andrew White, director of the Advanced Management and Leadership Programme at the University of Oxford’s Saïd Business School and host of the Leadership 2050 podcast series, explores transformative approaches to leadership for the modern CEO.
How can CEOs drive forward culture change around diversity and inclusion?
Diane Lightfoot, CEO of Business Disability Forum, explores the changing the narrative around diversity and inclusion in the workplace.
“Disability is still often parked in the “too difficult” box when it comes to Diversity, Equity and Inclusion. Employers are often afraid of doing or saying the wrong thing and as a result, do or say nothing. As a CEO, the stakes feel (and often are) higher. That high profile platform can feel daunting at the best of times; when tackling an unfamiliar topic, it can feel positively overwhelming. But what we do and say as senior leaders has a huge impact. Indeed, it is critical in driving change.”
https://www.youtube.com/watch?v=g-TRCm1dv6o
Also in this launch issue, we get the lowdown on agile ways of working from Kubair Shirazee, CEO of Agile transformation specialists Agilitea. Elsewhere, we speak with Nirav Patel, CEO of the consultancy firm, Bristlecone – a subsidiary of Mahindra Group and a leading provider of AI powered application transformation services for the connected supply chain – who discusses the challenges facing CPOs and supply chain leaders in our uncertain times. And we analyse the latest insights for CEOs from McKinsey and Gartner.
Standard Bank CIO Bessy Mahopo on the challenges of operating in a fractured market and how the company overcomes them
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This month’s cover story highlights how technology is helping Standard Bank overcome the challenges of a fractured market to both drive business growth and improve services for customers.
Welcome to the latest issueof Interface magazine!
“Time may change me, but I can’t trace time…” sang David Bowie. Changes can be challenging to manage with the path to positive disruption not always a smooth change management journey.
Interface dives deep for insights on understanding, planning, implementing and communicating change across industries.
Standard Bank CIO (CIB – Transactional Banking) Bessy Mahopo explains how one of South Africa’s largest banks is using its own digital transformation successes as a template to support the country’s ongoing technological evolution by overhauling IT from the inside out. “I believe that once we start moving the curve to fifth and sixth generation technology, we’re going to become even more of a value-producer.”
The art of change management with SAP
Maria Villar, Head of Enterprise Data Strategy and Transformation at SAP, talks about the importance of driving change in the technology space and helping businesses thrive with data from the perspective of one of the world’s leading enterprise resource planning software vendors. “My job is about finding out what a good data strategy looks like and continuing to spend time with customers to look ahead…”
Talent transformation journeys with TUI
We caught up with Cerstin Lang, Director for HR Group IT at TUI. She reveals how it’s global For:ward program is driving digital transformation as the travel giant works with training partner Udacity to upskill IT talent. “Our IT goals are focused on developing a structure that supports new ways of working with the right balance to innovate and grow in the future.”
How TransUnion is enabling consumer trust
Alejandro Reskala, CIO Canada, LATAM, Caribbean at TransUnion, about technology transformation at a leading consumer credit reporting agency, its dedication to people, and how it makes trust possible. “TransUnion has always blazed a trail to use technology and data to generate insights that help support financial inclusion.”
Also in this issue, we ask what the birth of ChatGPT means for businesses leveraging tech and learn from Rivery why organisations need to rethink their data strategy with robust operational analytics.
Mark Weil, CEO at TMF Group, discusses the rise of staff attrition in the industry
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At the start of 2023 many companies are still struggling to find employees. The job market favours the applicant far more than before Covid-19 across many sectors. Higher interest rates and lower economic growth so far haven’t reduced the pressure on labour availability.
High staff turnover isn’t just a matter of the cost it creates. The disruption from running with a lot of open roles and with less experienced staff can disrupt client service, increase error rates and lead to more serious compliance and reputation damage.
Mark Weil, CEO at TMF Group
Examining the data
A lot of commentary on the situation has been based on surveys of employees’ intentions rather than their actual decisions. By managing our clients’ financial, legal and employee administration we have access to large volumes of data. This provides insight on the overall recruitment and resignation levels across workforces, from several hundred thousand employees, covering a broad range of sectors and job levels in more than 90 countries.
As a starting point, the data tells us that there was indeed a significant global increase in staff resignation during and after the pandemic. Across the 90 countries, average company staff attrition rose from around 15% annually in mid-2020 to 25% at the end of 2021. That’s a dramatic 67% increase in just 18 months.
Global annualised employee attrition trend
Digging deeper reveals a much more nuanced picture by company and country. In 2021, staff attrition averaged around 20% across the 90 countries but was below 10% in a small number, with Argentina the lowest at 6%. Of those above 20%, India, the UK and Poland topped the list with a rate of 26%. Both India and Poland are now major destinations for companies establishing regional service centres – locations that are supposed to be low cost, stable hubs that support many other countries. So rising staff turnover there will be particularly painful.
2021 average employee attrition by country
When examining the data at company level, annual attrition levels vary even more widely, from a low of around 5% to a high of 40%. Some of that will be a result of challenges in specific industries and companies. Some will arise from the underlying attrition in the labour market of the countries they operate in. To disentangle how much is company versus country, we compare in the chart below the attrition a firm is seeing with the average attrition it should be seeing given the mix of countries where it operates. The wide spread in the data shows that that country averages matter far less than individual company factors. For example, looking at companies whose country mix should give them expected attrition of around 15-20%, we see many at 30%-40% and others at just 5%-10% attrition.
Company actual 2021 attrition versus average for the countries where they operate
Staff attrition is a problem at any time, but becomes a significant threat to a business if it gets too high. How high is a matter of judgement and depends on the particular company. In professional services, for example, when staff attrition is above 20% it starts to impact client service and above 30% it can pose a risk to regulatory and reputational integrity.
The rise in global staff attrition, coupled with big spikes by country and company means that multinational firms will have an increased number of locations where attrition is high and potentially well beyond manageable levels. From 2020 to 2021 the number of employees in company locations experiencing more than 20% attrition nearly doubled, from around 15% to 27%. Looking at where the levels were highest, employees in countries experiencing more than 35% attrition rose from 1% to 7%. That means there’s an increasing number of hotspots, where extremely high staff attrition means companies need to intervene quickly to avoid staff resignations spiralling due to increased workload.
Factoring in country complexity
An important additional factor is the complexity of a particular country to operate in. Many countries have onerous business rules which are enforced vigorously. High staff turnover in complex countries is particularly dangerous because of the added risk of compliance breaches.
We can look at country complexity using TMF Group’s Global Business Complexity Index. It ranks countries annually based on 292 criteria, covering the fiscal, legal and employment environments for doing business in each location.
Jolyon Bennett, CEO of Juice, discusses how sustainability has moved to the forefront of his organisation’s operations
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A green approach is quickly transitioning away something that is ‘nice to have’ to an essential component of a company’s strategy.
To Jolyon Bennett, who heads up UK tech accessories manufacturer Juice, being environmentally friendly is non-negotiable. Bennett has transformed the mobile phone accessories sector, having consistently introduced a series of quality, vibrant and consumer-focused products to market, ranging from portable power banks through to super-fast chargers.
He takes us under the bonnet of his firm’s sustainability drive.
You have recently removed all single-use plastic from your entire product range – why?
Jolyon Bennett (JB): “Why wouldn’t you? Single-use plastic is one of the biggest polluters in manufacturing – it uses 3% of the entire planet’s oil consumption. This year, it’s forecast that there will be 50kg of plastic waste for every single one of the eight billion human beings on planet earth – that’s a lot! Consumers, manufacturers and brand owners like myself all need to get on board with the fact that we’re going to need to use and re-use plastic packaging to make different things.
“Why have we done it? Because it’s totally the right thing to do. We need to stop making so much plastic and we need start reusing what we’ve already got. We need to stop cutting down trees in order to make paper and cardboard – let the trees grow and re-use what we’ve got. It just makes sense on a planetary level to stop consuming quite so much and start being just a bit more content with what we’ve got. Why do we need to make ‘new new new’ all the time?”
What have you used instead of virgin plastic?
JB: “We’re reusing, reusing, reusing. Did you know that recycled plastic – depending on its quality and density – can be recycled and re-used between seven and 200 times. Isn’t that unbelievable? It’s such an amazing material. Plastic is a vibe, and we should be re-using it. Juice is using post-consumer waste such as Evian bottles to make speakers, old milk cartons to make power banks and so much more!”
Why do you love plastic?
JB: “I just think we’ve got a lot of it so why not reuse it? I admire the material because it’s so durable – it’s an incredible scientific breakthrough to be able to make something that’s not only waterproof and heatproof but lasts for up to 3,000 years. There are so many different elements that make plastic a great material. I would prefer it if we didn’t have any, but that’s not going to solve the current (and ever-growing) problem of plastic waste finding its way into our oceans, and burying it isn’t the answer either. The problem is with us humans is that we just shy away from the truth – l don’t want to shy away, I want to face these problems head on and meet the challenge.”
Has Juice taken a financial hit to make this happen?
JB: “As an example, we sell around three million cables a year (based on last year’s figures) and each piece of packaging that we are making using post-consumer waste costs us between $0.15 and $0.25 more, so as a minimum, our increased cost for doing this is almost half a million dollars. But I still think it’s the right thing to do. Money is made up – the world could end and money would no longer matter, so let’s stop making decisions based purely on money and let’s start making decisions based on the right thing to do.”
How do you rate the overall quality of the ‘Eco’ products compared to the ones they have superseded?
JB: “There is absolutely no difference whatsoever, so I rate them just as highly.”
Do customers really want these eco products or is this more for your own conscience?
JB: “I don’t suffer from guilt so in that respect I don’t feel driven by my conscience to do this – doing the right thing has its own gravity and its own way of whisking you forward. Generally, I believe that people and businesses that do the right things will prosper. I’m a firm believer in the philosophy of ‘do the right thing and good things will happen’ so it’s a strategic choice to do something that has a positive impact because positive things attract positive things. While not every consumer or every retailer is especially interested in our sustainability drive, I do think this is shifting slightly. Maybe I do have a conscience, but the reality is that it’s the right thing to do, and the right thing gets rewarded in the end.”
Are retailers keen to stock them?
JB: “We haven’t given them a choice! We changed all of our products because we wanted to and we are adamant that even though the materials we are using are different, our products still perform just as well, if not better.”
Should other tech brands follow suit?
JB: “Of course they should, and we would happily help them do so. We’re willing to introduce other tech brands to our suppliers and guide them through the same process we’ve taken, sharing our knowledge – including the hurdles we’ve overcome – because it’s the right thing to do. I don’t understand why any brand would want to continue producing virgin plastic when they don’t have to, it just doesn’t make any sense to me.”
What advice would you give to other brands wanting to embark on this process of removing single-use plastic from their products?
JB: “Do it. Stop messing about – get on with it and do it. Although it may cost you a bit more in the short term, we’ve proven that consumers do generally buy more of your products if you are making the right decisions towards the environment, so you will reap this extra cost back whilst also doing the right thing.”
What is next for Juice?
JB: “I want Juice to be a brand that limits its impact. We’re currently doing this with our manufacturing and through our supply chain and the way that we conduct ourselves in general. I want to start releasing products that have a positive impact on humans as well as the planet – I’m a firm believer that everyone can win. There will always be a demand for technology, so I don’t believe that we should be fighting against it, however, I would very much like to see people taking their technology off grid.
“My dream is to be able to take every mobile phone on planet earth off grid and start generating our own personal electricity. I want to create products that link to your activity – imagine if you could run 5k and the kinetic activity could generate enough energy to a charge a device such as a phone or a laptop while you do it? I’m interested in organic solutions to current chemical problems such as organic battery cells using salt water and algae as a storage method of electricity – so much so that we’re currently in discussions with a photosynthesis harvesting electronics brand about using photosynthesis as a charging capability!
“I want to get more connected with nature and I think you can have it all – I think we can still enjoy modern technology as well as the beautiful world around us. If we can utilise our intelligence in the right way, we can all live in a perfectly harmonious symbiotic relationship with amazing technology products and a sustainable environment for all wildlife.”
Procurement is in a state of flux. Against a backdrop of economic uncertainty, the procurement landscape is volatile and requires…
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Procurement is in a state of flux.
Against a backdrop of economic uncertainty, the procurement landscape is volatile and requires agility to navigate turbulent waters. But, despite significant disruption could there still be opportunity?
Simon Whatson, Vice President of Efficio Consulting, is optimistic about the future of digital procurement and despite a challenging few years he is confident of a successful bounce back. He gives us the lowdown on the direction of travel for digital procurement in 2023.
As an executive with considerable experience in the space, we’d love to learn more about your background and how you ended up in procurement. Why was this the specialism for you and how did you get involved to begin with?
Simon Whatson (SW): “I think the one-word answer of how I came into procurement was accidental. I studied maths at university, with a year in France, before I began looking for different roles to apply for.
“Eventually, I was offered a position with a big plumbing and heating merchant with global operations. I worked in that supply chain team for two and a half years. Although it was called supply chain, a lot of the work was procurement, which involved negotiating with suppliers. It was after that stint there, that I discovered consulting and joined a boutique procurement consultancy. Now I am onto my third consultancy and I’m very happy here!
“In terms of why I’ve stayed, one of the success factors in procurement is being able to work cross-functionally. Procurement doesn’t own any of the spending that it is responsible for helping to optimise. It must work with other functions and the spend owners. I quite like the people side of that, building relationships, almost selling internally to bring teams together. That really appeals to me and is a key reason why I’ve been very happy in procurement.”
As we move into exploring procurement today in 2023. The space is filled with challenges and complexities. You only need to look at the last few years. Covid, war in Ukraine, inflation – how would you describe the world’s recent challenges and their effect on the industry and what do you feel CPOs and leaders can do to combat these issues?
SW: “I would flip it around and say that these are not so much challenges but rather opportunities for procurement. When I started my career 18 years ago, procurement was often fighting to get a voice and there were complaints that procurement was not represented at the top table, but the war in Ukraine, inflation, COVID and ESG, these are things which are now on the C-suite agenda and procurement is ideally positioned to help companies face those challenges. If you think about COVID and the war in Ukraine, procurement is in a privileged position to help with this.
“I see some procurement functions that prefer to do what they know, which focuses on the process and transactional side. However, there are also many forward-thinking CPOs and procurement professionals out there, that have really seized this opportunity of being on the C-suite agenda and drive the thinking and the solutions to some of these big challenges we’re seeing.”
Although new technology in procurement has been around for well over a decade, digitalisation has become so much more of an important topic. How would you sum up where procurement and supply chain are in terms of digital transformation today?
SW: “It’s a bit laggard, but digital transformation is difficult, and we have to recognise there are some real trailblazers. There are some firms doing some fantastic things in digital to produce better outcomes. If you contrast your experience when you’re buying something in your private life, it’s much easier than 20 years ago. You can get access to a wealth of pre-sourced things, whether it’s food, a holiday, a car, or a book. You can see reviews of what other people think of these things.
“But when you go into your workplace as a business user and you want to buy something, it doesn’t quite work like that yet. You often have to fill in a form, send it off and wait for them to come back to you. They might come back a little bit later than you were hoping and might tell you that they don’t have that part on the supply frameworks. I think people sometimes get confused about how it can be so easy to buy something as large as a car or a holiday on their sofa at home, but when they want to buy something at work, it seems to be quite cumbersome. Digital can help a lot with that, but it is incumbent on organisations and procurement functions to figure out how to recreate that customer experience that we’ve become accustomed to in our private lives.”
With a new generation of leaders growing up with technology, some might say that it could be a key driver in helping to speed the adoption in procurement along. Is this something you would agree with or what would you point to as a key driver?
SW: “I do think that it will act as one of the catalysts for further digital transformation in organisations, because if procurement doesn’t manage to recreate that customer experience that the new generation expects, then they won’t use procurement going forward and will look to bypass it.
“The analogy that I’ve used previously in this case is one of travel agents. I remember as a child, my parents were able to take us on holiday and I remember the whole process. We would walk into town to the travel agent, and look at some of the brochures of options. They often then had to phone the various airlines or resorts on our behalf. They might not be able to get through, so we’d have to come back the next day. I remember as a child being quite excited by the whole process but actually, thinking back, it was quite cumbersome. You compare that to now, with being able to review online, and you can get instant answers to your questions. It’s not a coincidence that travel agents don’t really exist anymore.”
How much of a challenge is it to not get caught leveraging technology for technologies sake? How important is it to stay true to your approach and be strategic?
SW: “We conducted a study of many procurement leaders and CPOs a few years ago, and one of the things that we found was that about 50% of procurement leaders admitted to having bought technology just on the basis of a fear of missing out, without any real understanding of the benefits that technology was going to bring. That was a real shock and a revealing find because technology is not cheap, and its implementation is quite disruptive. If you’re purchasing a system because everybody else is using it, then there could be some pretty costly mistakes. It is really important to make sure that when buying technology, it is because the benefits are fully understood.
“My advice to companies when looking to digitalise is own your data, visualise that data, and manage your knowledge. If you can focus on getting those things right in that order, and make your technology decisions to support that goal, then that’s a much better way of thinking about it rather than just jumping in and buying a piece of technology.”
It’s clear that the procurement space is an exciting, but challenging, place to be. What do you think will play a key role in the next 12 months to push the digital conversation further to take procurement to the next level?
SW: “Looking forward, one thing that procurement needs to do and continue to do is attract the best people. Ultimately, people are what makes an organisation, and it is what makes a function successful. I think procurement has often not looked for the right skills in the people that it employs. Traditionally, it’s looked for people with procurement experience and while they are valuable and required, we also need leadership potential. People who think a bit more outside the box and aren’t so process driven. A lot of what procurement has done in previous years has been process driven, so if you’re just limiting your search of people to those that have had procurement experience, you’re inevitably going to end up with a lot of people who are process driven.
“I think being bolder and recruiting people from different backgrounds with different skill sets is the way to go. If procurement can ‘own’ the ESG space, that will help with the younger generation see procurement make a difference. I think that’s one thing that will be key to success going forward.”
Check out the latest issue of CPOstrategy Magazine here.
Paul Farrow, Vice President of Hilton Hotels’ Supply Management, sits down with us to discuss how his organisation’s procurement function has evolved amid disruption on a global scale
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The hospitality industry has endured a rough ride over the past few years.
Following the COVID-19 pandemic which stopped the world in its tracks and now with millions facing a cost-of-living crisis, it’s been a period of unprecedented disruption for those involved in the space and beyond.
But it’s a challenge met head-on by Paul Farrow, Vice President of Supply Management at Hilton Hotels, and his team who have been forced to respond as the world continues to shift before their eyes.
Farrow gives us a closer look into the inner workings of his firm’s procurement function and how he has led the charge during his time with Hilton Hotels.
Could we start with you introducing yourself and talking a little about your role at Hilton Hotels?
Paul Farrow (PF): “I’m the Vice President of Hilton’s Supply Management, or HSM as we call it. I’ve been with Hilton Hotels for 12 and a half years, and my role is to head the supply chain function for our hotels across Europe, the Middle East and Africa.
“Over the past few years, Hilton has grown rapidly and has now got 7,000 hotels in over 125 countries globally. What is really exciting is Hilton Supply Management doesn’t just supply Hilton Hotels and the Hilton Engine because we also now supply our franchisees and competitive flags. While we have 7,000 hotels globally, Hilton Supply Management actually supplies close to 13,000 hotels. That’s an interesting business development for us, and a profit earner too.”
You’re greatly experienced, I bet you’ve seen supply chain management and procurement change a lot in recent years?
PF: “The past two to three years have been tremendously challenging on so many industries but I’d argue that hospitality got hit more than most as a result of the Covid pandemic. Here at Hilton, supply management was really important just to keep the business operational throughout that tough time, but I’m delighted to say we’re fully recovered now.
“Looking back, it was undoubtedly difficult, and you only have to look at the media to see that we’re now going through a period of truly unprecedented inflation. On top of the normal day job, it’s certainly been a very busy time.”
Hospitality must have been under an awful lot of pressure during the pandemic…
PF: “Most of our teams as a business and all functions have worked together far more collaboratively than ever before through the use of technology and things like Microsoft Teams and Zoom. Trying to work remotely as effectively as possible changed the way we all had to think and the way we had to do. Now we’re back in the workplace and in our offices, we’re actually looking to take advantage of that new approach.”
Inflation, rising costs, energy shortages, as well as drives towards a circular economy means it’s quite a challenging time for CSCOs and CPOs right now, isn’t it?
PF: “Those headwinds have caused and created challenges of the like that we’ve not seen before. The war in Ukraine and Russia has meant significant supply chain disruption and supply shortages of some key ingredients and raw materials. China is a significant source of materials and they’re still having real challenges to get their production to keep up with demand.
“All the local and short-term challenges are around energy and fuel pricing, so throughout the supply chain that’s been a major factor to what we’ve had to deal with. On top of that is the labour shortages. We rely heavily throughout the supply chain and within our business to utilise labour from around the world. In my region, particularly from say Eastern Europe as well as other businesses all fighting for a smaller labour pool than we had before. We are fighting with the likes of the supermarkets, Amazon’s, not just other hotel companies to capture the labour pool we need both in our properties but also within our supply chain supplies themselves.
Hilton operates a rather unique procurement function, doesn’t it?
PF: “We trade off the Hilton name because our brand strength is something that we are able to utilise and we’re very proud of, but we’ve also got additional leverage by having that group procurement model.
“We’ve got essentially two clients. We’ve got our managed estate which is when an owner chooses to partner with Hilton, they’re signing a management agreement because they want the benefit and value of the Hilton engine. That could be revenue management, how we manage onboarding clients and customers through advertising, as well as the other support we give in terms of finance, HR, marketing and sales as well as procurement.”
HSM is a profit centre and revenue driver through its group procurement model but how does this work?
PF: “Our secret sauce is our culture. It’s our people and that filters across all of our team members and indeed all of our functions. The key strategic pillars are the same for health and supply management around culture, maximising performance and so on as they are across the overall global business.
“Across our 7,000 plus hotels, the majority are actually franchised hotels because that’s the legacy of what still is the model in the US. When I joined Hilton 12 and a half years ago, the reverse is true where nearly all of our hotels in Europe, Middle East and Africa, and indeed in Asia Pacific, were and are managed. In the Europe, Middle East and Africa regions right now we’re building up close to a 50/50 split between managed, leased and franchised.”
What has pleased you most about the roll-out of the HSM?
PF: “It’s certainly not been easy because we’ve got 70 countries that sit within our region here in EMEA and Hilton’s penetration in those individual countries is very different. We may have 100 hotels in one of those markets and only one or two in specific countries. Our scale and our ability to get logistics solutions is different by market.
“Getting everyone on board to what we want to achieve to our guests and to our owners means we have to pull different levers. We have very effective brand standards. If you’re signing up to Hilton, you’re signing up to delivering against those brand standards that we believe are right for our organisation.”
What kind of feedback have you had from your clients?
PF: “Integrity is in our DNA, and we work very closely with our suppliers who we value as partners. These are long-term relationships, and we work hand in hand because we have to see that they’re successful so that we can be successful – it’s really important to what we do and we constantly look for feedback.
“With our internal and our external customers, we’ll have quarterly business reviews and so we’ll get that feedback through surveys where we are asking them to tell us what we do well and what we could do better. Our partners are now asking what additional value can you do to bring support to our organisation through ESG? So that’s what’s on the table now when it wasn’t before. But it’s not just that – it’s about the security of supply competitiveness, competitiveness of pricing, and a whole bunch of other very important things as well.”
Looking to the future, what’s on the agenda for the next few years?
PF: “We’re out there meeting and greeting people in person and there’s always new opportunities that make things exciting in what we do and how we work. Innovation’s very high on our agenda and we’re very proud of what we do in food and beverage. In non-food categories, it’s about how we support our owners and our hotel general managers to find that competitive edge and do the next big thing ahead of our competitors.”
Anything else important to know?
PF: “One thing we’ve been able to take full advantage of is how we’ve been able to grow our business by bolting on new customers. I think it’s fantastic that our competitors choose to use Hilton Supply Management because they benchmarked what our capabilities are and how competitive we are.
“Another key part of the agenda is environmental, social and governance (ESG) sustainability. Responsible sourcing and everything that sits within that is front and centre of what we do. Within that you’ve got human rights, animal welfare, single use plastics as well as general responsible sourcing like managing food waste. The list is very long, but they’re all very important.”
Check out the latest issue of CPOstrategy Magazine here.
Here are 10 of the most important leadership skills that CEOs need to demonstrate in 2023.
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In today’s world, a CEO needs to be lots of things to different people. The importance of having the leadership skill to being able to lead through unprecedented disruption was highlighted by the COVID-19 pandemic and helped to define what makes a good CEO.
Here are 10 of the most important leadership skills that CEOs need to demonstrate in 2023.
1. Clear communication
Communicating effectively with employees is one of the most vital skills any leader can have. By adopting a transparent mindset, it leaves little room for miscommunication or misunderstandings. But rather than just being eloquent, CEOs should deliver meaningful content too. A CEO needs to be able to communicate the essence of the business strategy and the methodology for achieving it.
2. Strong talent management strategy
People are the most important component of all businesses. CEOs who are able to recruit and retain key employees have a greater chance of increasing productivity and efficiency. After recruiting good people, the key to retaining them is by harnessing a positive work environment that empowers employees to succeed.
3. Decision-making
As a leader, thinking strategically to make effective decisions is vital to the success of an organisation. Making decisions is a key part of leadership as well as having the conviction to stand by decisions or agility to adapt when those decisions don’t have the required outcome. While all decisions might not be favourable, making unpopular but necessary calls are important characteristics of a good leader.
4. Negotiation
Negotiation is a fundamental part of being a CEO. In a top leadership position, almost every business conversation will be a negotiation. Good negotiations are important to an organisation because they will ultimately result in better relationships, both with staff inside the company and externally. An effective leader will also help find the best long-term solution by finding the right balance and offering value where both parties feel like they ‘win’.
5. Creativity and innovation
Being quick-thinking and ready to explore new options are great skills of a CEO. Creative leadership can lead to finding innovative solutions in the face of challenging and changing situations. It means in the midst of disruption, of which it has been increasingly prevalent, leaders can still find answers for their teams. Creative CEOs are those who take risks and empower employees to drop outdated and overused practices to innovate and try new things that could lead to greater efficiency.
6. Agility
Without agility over the past few years, businesses would have failed. CEOs were forced to embrace remote working following the advent of the COVID-19 pandemic whether they liked it or not. Now, faced against a potential recession, these macroeconomic events are unavoidable and have to be managed carefully. Effective leaders will have their fingers on the pulse and ready to respond to changes.
7. Strategic forecasting
Creating a clear path forward is essential to achieving uninterrupted success. The ability to look into the future and identify trends and issues to then react to is vital. Good CEOs are able to plan strategically and make informed decisions to set goals and plan for the future easily.
8. Delegation
CEOs can’t do everything. A leader tends to be pulled in a number of different ways every day and it is impossible to be on top of everything. This means the importance of bringing in a team of people who are trusted and skilled in their respective areas of expertise. Successful CEOs are expert delegators because they recognise the value of teamwork and elevating those around them.
9. Approachability
An approachable CEO who welcomes conversation and is an active listener will help employees feel at ease raising issues or concerns. This approach will help build strong relationships with staff and customers and encourage a healthy culture which is beneficial to employee retention. Leaders with strong, trusting and authentic relationships with their teams know that investing time in building these bonds which makes them more effective as a leader and creates a foundation for success.
10. Growth mindset
If a CEO arms themselves with a growth mindset it allows them to meet challenges head-on and evolve. This shines a light on improving through effort, learning and persistence. As others may back down in the face of adversity and upheaval, successful CEOs will strive to move forward with confidence. Those with a growth mindset are unlikely to be swayed as they have the tools needed to reframe challenges as opportunities to grow.
In McKinsey’s latest report ‘Actions the best CEOs are taking in 2023’, we examine three of the biggest trends on the c-level agenda
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Anyone can sail a ship when things are going well. But it takes a strong, robust and characterful CEO to steer a business through choppy waters and out the other side.
In McKinsey’s latest report ‘Actions the best CEOs are taking in 2023’, the research and advisory firm uncovered which trends are set to have the biggest impact on how CEOs lead their business throughout the year.
McKinsey’s CEO Excellence Survey surveyed 200 of the best corporate CEOs of the past 15 years. This was completed by whittling down a list of all the current and former CEOs of the 1,000 largest public companies during that timeframe. The list was subsequently filtered based on tenure, including only those who had completed at least six years in the role. From there, the CEOs were continuously shortlisted until the best 200 were determined.
Each CEO was asked to identify the top three trends that are set to determine how leaders tackle the future. Here is an insight into those findings.
1. Actions to deal with digital disruption
CEOs are targeting digital trends in three key ways: developing advanced analytics, enhancing cybersecurity and automating work. OpenAI’s launch of ChatGPT has accelerated the demand of companies looking to embrace advanced analytics for a competitive advantage. Improving cybersecurity is another key action for CEOs with the importance of guarding against external threats paramount amid strengthening and more mature cyberattacks. Lastly, automating work is another key priority to scale efficiency and eliminate boring and manual tasks which free up people’s time.
2. Actions to deal with the risk of high inflation and economic downturn
One CEO who is worried about economic uncertainty told McKinsey: “Act early to lower costs and protect the balance sheet so that you are stronger and leaner when the economy begins to turn more favourably.” McKinsey found that companies that outperformed the 2008 financial crisis cut operating costs by 1% before the downturn while the others expanded costs by the same percentage. The best performers reduced their debt by $1 for every $1 of book capital before the downturn. This can be done by reducing operating expenses, redesigning products and services as well as reassessing strategic and economic assumptions.
3. Actions to deal with the escalation of geopolitical risk
According to McKinsey, there are three actions to help manage the escalation of global and national crises. CEOs are targeting building robust compliance capabilities, creating resilience in supplier networks and investing in monitoring and response capabilities. These actions come following the challenges presented by COVID-19, the war in Ukraine and now inflation concerns. Many firms are choosing to build their trade compliance organisations and improve how they screen different customers and companies. While a defensive approach is the way forward for many, some companies see the turbulent times as an opportunity.
How Minted is leveraging digital technology to make investment in precious metals, accessible, affordable and simple
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Shahid Munir, co-founder of Minted, discusses how his firm is competing with larger banks for a spot at the top table of investment in fintech.
Few industries have boomed like the fintech space over the past few years. With a plethora of new technology at consumer fingertips like never before, banks are being properly challenged by upcoming startups offering an alternative solution. Among these is Minted, aiming to make the buying, selling, transferring and delivery of physical precious metals simple through flexible monthly plans and one-time purchases. The company was founded in 2018 by three close friends – Shahid Munir, Hamzah Almasyabi and Haroon Siddiq – with a shared passion for entrepreneurship, technology and the opportunities the financial industry presented. Their combined drive led to the creation of Minted.
Shahir Munir, Co-Founder, Minted
The rise of Minted
Munir, co-founder of Minted, admits the journey has been a “rollercoaster” since the trio decided to launch their venture. “It’s certainly been exciting,” he explains. “It’s been a great learning curve and was a case of taking an industry where so many people were so used to doing it one way and offering something new. This has been challenging because we have a great product, but no one understood it. We’ve had to go out and educate people first in what has been a journey of growth, but it’s a constant journey.”
A decade ago, financial technology was considered by many as ring-fenced by bigger banks. But Munir stresses he has tried to change that narrative and offer competition which provides tremendous value. “Previously, a bank was the only way you could provide financial products,” he says. “Technology has allowed more innovative and creative solutions to launch and test the bigger banks and what they became bad at which was the customer experience. Now you see bigger banks adopt a lot of the technology and some of the practices used by challenger banks which can only be a good thing. Being in London has also helped because it is one of the leading hubs for fintechs and really supports the financial technology industry.”
Armed with different skillsets, the three co-founders complement each other with a diverse range of experience. With Almasyabi bringing an operations background and Siddiq bringing business strategy, Munir completes the line-up with finance and technology know-how. “I think it’s what sets us apart and makes us different,” he says. “Our backgrounds mean we’re not tunnel visioned and can see clearly when things aren’t working. We have a great thinktank within the business which helps us come up with ideas.”
Making precious metals accessible, affordable and simple
“I recall seeing a meme about how the price of a Freddo chocolate had changed over the years, no longer being its trademark 10p, it was now 200% more expensive and also smaller in size. This led me down rabbit-hole of trying to understand why most items go up in price as years pass and rarely come back down again. I became fascinated with how the government increases the money supply and the concept of inflation – my money buys me less in the future than it does today.
“I met with the other two founders that same night and the thoughts extended from my mind into an intense conversation about quantitative easing, Brexit, cost of living – snacks were being consumed faster than the rate of government borrowing. Where could we park our money, what was better than money? That was when the penny-dropped (pardon the pun). Hamzah proclaimed: ‘What about gold, guys?’”
Digital disruption
Through Minted, customers will have full legal ownership over their gold and can also request to have their gold delivered to a verified address. The gold and silver are stored in a grade 10 vault in the UK with the highest level of security possible. The products are fully insured by Lloyds of London at the current value while in vaulted storage as well as when being transported.
As a digital disrupter, one of the biggest challenges Minted continues to face is a lack of understanding. Customer assurance is an important priority, and the organisation has established several initiatives to gain trust. Minted is registered and regulated by the Financial Conduct Authority (FCA) which means the firm operates to the highest financial standards and guidelines as determined by the FCA. “I feel like we need to go that extra mile,” stresses Munir. “What I think we underestimated at first was the extent to which people needed to ask questions until we launched a live chat facility on the website. This function helps build our knowledge base and allows us to hold the customer’s hand throughout the process. We’ve also found success when we’ve attended face to face exhibition events and had one-on-one interactions. It’s been brilliant to see first-hand the customer perception and look at what we can do better to meet their needs.”
Munir says he has noticed a trend of people starting with a “flutter” to test the water and check out the process. “I think it’s important that people build their confidence and recognise the value in what we offer,” he explains. “Once this is done, we often see those same customers make larger transactions. We know our difference can be a challenge for some people to accept which is why education is such an important topic to us. We have to keep doing explainer videos, use social media and hold community sessions to be there for customers.”
Scaling up
Minted recently launched its own app which offers customers an even easier way to manage their gold and silver, as well as introducing a tool to partner with businesses called Minted Connect. Munir believes the move has helped showcase an advanced, modern way for people to own physical items. “I love the app as it just makes things so much easier for customers via the platform,” he explains. “It’s been fantastic, a one-stop solution that helps stores the precious metals for free and allows them to be delivered at any time. In a world where everything is so digitally enabled it is nice to offer something physical – people don’t even buy cars anymore. Hopefully via customer feedback we can make improvements to the app that will help us develop new features.”
Munir believes gold is increasingly being seen as an alternative for savings and affirms global pressures like the threat of inflation amid economic uncertainty has helped people to realise the full potential of Minted’s offering. “In the past if you wanted to save money, you simply open a saver account and start adding money but with gold it was often a little trickier,” he says. “But with Minted we’ve simplified the process and tried to make it as automated as possible. Gold is a great alternative which has stood the test of time.”
Looking ahead, Minted is showing no signs of slowing down and is expanding into different territories. Munir remains positive for the next few years and what comes next for his organisation. “We’re working towards expanding the team because I feel like we’re at the stage now where each of our departments needs its own team of people to run each department,” he explains. “We’re scaling up and branching into new markets such as Turkey, and focusing in on developing the business to business side too.”
“Disruption should drive digitalisation and cloud uptake rather than hindering it.”
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Sal Laher, Chief Digital & Information Officer at global enterprise software provider IFS, reveals how a single strategy for cloud and digitalisation helps businesses maximise the rewards of growth.
Digitalisation equals transformation
Digitalisation and the business transformation projects that enable it are again on the radar for many businesses, particularly given the current macro-economics and potential recession being predicted. According to recent data from Research and Markets, The Global Digital Transformation Market size is expected to reach $1,302.9bn by 2027, rising at a compound annual growth rate (CAGR) of 20.8% in the period 2021-2027.
This renewed focus on digitalisation is aligned to businesses accelerating cloud migration, including readily available SaaS solutions. The Flexera 2021 State of the Cloud Report finds 92% of enterprises have a multi-cloud strategy and 80% have a hybrid cloud strategy.
Sal Laher, Chief Digital & Information Officer, IFS
Both trends will go hand in hand as digitalisation and cloud migration continue to drive business efficiencies, process change and consumer service demands. Most organisations are aware of the potential rewards both business models can bring. This is because it is not the first time they are being talked about– this major transformational shift has already been in place for a decade. But some, wary of the disruptive impact of recent global events are holding back from implementing them. However, it is the wrong approach.
Disruption should drive digitalisation and cloud uptake rather than hindering it. Even in isolation, either moving to the cloud, or undertaking digitalisation, will enable faster decision-making, supported by greater compute power and more agile processes, generating faster output and enhancing customer service. Yet, to drive competitive edge, organisations need to combine cloud migration with business transformation and look to maximise those benefits. To do this, they must develop a single strategy covering both elements and move forward with a common approach.
Migrating to the cloud for business transformation
By digitalising, organisations have an opportunity to benefit from faster time to insight, enhanced business and customer connectivity, and operational efficiencies. It allows them to more easily collect and analyse data that they can later turn into actionable, revenue-generating insights.
Over time, they can go further and start to tap into the benefits of artificial intelligence, machine learning, big data analytics, and the Internet of Things (IoT). But it is the additional compute power and scalability of the cloud that helps them to maximise these benefits and fulfil the potential of digital technologies.
Cloud migration also includes adopting evergreen application (business process) solutions in the cloud with the many SaaS solutions that are available today. That’s why it is important that they adopt a single plan to migrate to the cloud and drive business transformation all in one. This tandem approach also avoids unnecessary customisation, making a business much more agile to change based on actionable data insights.
Adopting a single plan will, in itself, drive up efficiencies and drive down costs. But critically, the two must be linked to ensure that businesses maximise the benefits of the migration process.
It is cloud, after all, that helps businesses adapt to the new digital world, enabling them, for instance, to leverage out of the box business applications, digital analytics tools and low code platforms that deliver informed decision-making and reduce costs. But cloud doesn’t just maximise the benefits for businesses, it also accelerates them. Cloud has become the fulcrum of digital transformation, mainly due to its ability to enable innovation at scale and allow businesses that have digitalised to rapidly launch enterprise-ready products.
Without cloud, businesses will struggle to drive through timely updates to systems and processes. The costs of stakeholder management may ramp up. Moreover, moving to the cloud without doing it within the step-by-step structure of digital transformation risks mistakes being made, increasing the likelihood of data loss and security breaches through misconfigurations.
Optimising the benefits of digital transformation in the cloud
We have seen how important it is to adopt a single strategy for cloud migration and digitalisation and to execute them in tandem. But organisations also need to maximise the benefits of the combined approach. So how can they best do this?
First, they need to avoid procrastination and delay. The benefits of digitalisation and cloud migration working together are compelling – and senior leaders need to seize the initiative and kickstart the transformation. To get the ball rolling, they need to conduct a benchmarking exercise to better understand where their business stands in terms of its capabilities or gaps. This will help to decide where efforts and resources should be focused.
They then need to align their business processes with IT. That’s key as modern business models increasingly emphasise the digitalisation of processes.
Cloud computing and network security concept, 3d rendering,conceptual image.
They should begin by determining their goals and the systems, technologies, and processes currently in use to achieve them. Next, they need to brainstorm and document core business objectives before developing a cloud and digitalisation migration roadmap to guide their implementation. Measuring performance will also be crucial to optimising results. In choosing which metrics to analyse, organisations should concentrate on those that will most positively impact their bottom line or user experience.
Ensuring employees buy into the process of cloud-based digitalisation will also be key. Organisations should use cloud-based digitalisation as an opportunity to strengthen business processes and help employees switch to new ways of working which maximise the potential of the new technology.
Digital readiness
Given all this, it is vital businesses don’t delay on their journey to digital and the cloud. Unfortunately, CIOs often struggle to know where to start with a cloud and digital migration strategy.
Before they begin, they often look to put a complete strategy in place up front. The truth is that it is not necessary. Instead, they need to get going and prioritise what’s most important. Pick one area, settle on a use case, digitalise, and move it to the cloud, demonstrate results – and then repeat incrementally. That will enable the business to showcase value and create momentum. Over time also, this single coordinated approach, will allow it to tap into a wide range of cloud and digitalisation related benefits – and ultimately to maximise the rewards.
Ian Povey, CIO – Head of Payments Services & Technology, on the strategic transformation taking place at NatWest benefitting both the bank and its customers
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This month’s cover story reveals how innovation is at the core of change for payments processes at NatWest.
Welcome to the latest issueof Interface magazine!
Charles Darwin famously said: “It is not the strongest of the species that survives, nor the most intelligent; it is the one most adaptable to change.” Technology is helping us to evolve. And that evolution is being driven by innovation.
“It may be a cliché, but a transformation journey really has no end… If you fixate on a constant end state without ‘checking in’ you can, and likely will, fail in your objectives.” A wise outlook from a CIO with three decades of change management experience across banking’s payments panorama.
Ian Povey, CIO – Head of Payments Services & Technology, discusses the strategic transformation taking place at NatWest and how that journey of change and innovation is benefitting both the bank and its customers as it evolves to become a relationship bank for a digital world. “Our environment is always changing – we must be on the back of the ‘Change Dragon’ and steering/influencing as a leader and always learning from our teams for new ideas.”
Customer-Centric transformation at FedEx
We also check in with logistics leader FedEx… Custom Critical CIO Cheryl Bevelle-Orange reveals a “technology-forward yet flexible company” embracing innovation and “paving the way for customers to get more relevant information faster about their packages while delivering with excellence”.
https://www.youtube.com/watch?v=galaZZlrEn0
Continuous Improvement in IT at Mazars
Mazars CIO David Marcelino explains his approach to innovation and leading on a successful IT transformation program at one of the world’s largest audit and advisory firms aiming to improve the digital experience for all its stakeholders. “Change Management, adoption, training and awareness are at the core of every single business technology project we deliver.”
Tech innovation at speed with the US Air Force
We also caught up with George Forbes, Director of Digital Operations Directorate at the United States Air Force, who outlines the importance of innovation within the federal government.
Digital Transformation in healthcare at Avellino
Nancy Selph, Global Head of IT at Avellino Lab, discusses how technology is creating new opportunities to improve health outcomes and the importance of leadership in the industry.
Also in this issue, we round up the key tech events and conferences across the globe; we learn how Minted are making it easy for everyone to invest in gold; and we feature the latest on cloud digitalisation from IFS.
We look into the supply chain production process of Easter Eggs and the journey to their final destinations in supermarkets
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Chocolate is arguably the world’s most popular sweet treat. Depending on who you ask, of course.
After, perhaps Christmas, it is the most common time for people to indulge in chocolate if they don’t do so anyway throughout the year.
And synonymous with Easter are the eggs themselves which are loved by children and adults alike all over the world.
The journey to Easter Eggs
The supply chain process is split into eight stages of production: cultivating, harvesting, splitting, fermentation, drying, winnowing, roasting and grinding. Following production, the supply chain process is extended further with logistics which is the final step to providing customers with their favourite seasonal sweet treat.
The journey actually begins with cocoa tree plantations being established which is done by scattering young cocoa trees amongst new shade trees or by planting the cocoa trees between established trees. These are planted in humid tropical climates, with temperatures between 21 and 23 degrees Celsius. This is consistent rainfall periods and a short dry season because these conditions provide good quality cocoa.
Each tree produces 20-30 cocoa pods a year which grows straight from the tree’s trunk and main branches. With this tree also yielding fruit, the crop is carefully pruned, and as a result, it is easier to harvest the cocoa pods. The next step is the labour-intensive task of harvesting the crop.
The harvest is a whole community affair on small West African farms. Large knives are then used to detach the pods from the trees and placed in large baskets on workers’ heads. The pods are then manually split open to remove the beans so they are ready for the two-step curing process. Each pod consists of between 20-40 purple cocoa beans.
The curing process consists of fermenting and drying the beans to develop the chocolate flavour. There are several fermentation methods but the most traditional is the heap method. This requires placing mounds of wet cocoa beans in between layers of banana leaves on the ground for between five to six days. Following this, the drying stage begins. This involves the wet bunch of beans being spread out in the sun or using a more advanced method of special dying equipment.
From plant to factory
Often, a lot of large chocolate brands then buy the cocoa through intermediaries. The beans are then packed into sacks ready to be exported to the brands processing facilities in other locations globally.
After arrival, the beans are cleaned and quality inspected before the winnowing stage takes place. The dried beans are cracked to separate the shell from the nib which is where the small chunks are used to produce chocolate. Afterwards, the roasting phase begins in which the nibs are baked at high temperatures reaching 120 degrees Celsius in special ovens. This is where the colour and flavour is acquired.
Subsequently, the next stage is grinding which creates the basis of all chocolate products. The roasted nibs are grounded in stone mills until a thick liquid chocolate consistency is achieved.
Chocolate to egg
The final step is creating the chocolate egg masterpiece by using highly efficient computer-operated technology which has been used since the mid-20th century. The molten chocolate is placed in heated egg molds which are rotated so there is an even thickness. Following this, the eggs are left to cool and then removed from the molds. Once cooled, the eggs are wrapped in coloured foil and packaged into individual boxes before being sent out for retail. The transportation and exportation throughout the various supply chain stages is vital being a seasonal product. This means they are heavily relied upon for their timings to deliver to large supermarkets and independent stores.
What does today’s CEO need to do to accelerate an organisation’s digital transformation journey?
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Digital transformation journeys are no one-size-suits-all. There is no singular way to welcome a new wave of technology into operations.
Since the turn of the century, digitalisation has had an increasingly influential impact on the way CEOs make decisions. Today’s world is full of disruption and potential risk. And with technology growing in complexity it can be challenging to lead such a revolution against a backdrop of economic uncertainty.
Embracing digital
According to KPMG 2022 CEO Outlook, which draws on the perspectives of 1,325 global CEOs across 11 markets, 72% of CEOs agree they have an aggressive digital investment strategy intended to secure first-mover or fast-follower status.
Advancing digitalisation and connectivity across the business is tied (along with attracting and retaining talent) as the top operational priority to achieve growth over the next three years. This digital transformation focus could be driven as a result of increasingly flexible working conditions and greater focus on cybersecurity threats.
However, the prospect of recession is threatening to halt digital transformation in the short-term. KPMG research found that four out of five CEOs note their businesses are pausing or reducing their digital transformation strategies to prepare for the anticipated recession.
This is reinforced further when 70% say they need to be quicker to shift investment to digital opportunities and divest in those areas where they face digital obsolescence.
When a company’s digital transformation ambition is mismatched to its readiness, it is the CEO’s responsibility to close the gap. According to Deloitte, in order to do this successfully, the CEO must assess the current level of organisational readiness for change.
This covers four key pillars that are mixed together to work out an organisation’s overall readiness: leadership, culture, structure and capabilities.
How CEOs can close the gap
Leadership: CEOs need to ensure their c-suite and other key executives are motivated and equipped to execute the vision. CEOs interviewed by Deloitte in a recent study emphasised the importance of the leadership team supporting the transformation vision and having a positive attitude and willingness to transform.
Culture: A large potential barrier to readiness in the organisation is down to culture. Low cultural readiness takes the form of bureaucratic, reactive and risk-averse ways of working that are at against the collaborative, proactive learning mindset needed for ambitious transformation.
Structure: If a company hopes to operate differently, it could mean the need for organising in an alternative way. CEOs will often need to lead the reorganisation of teams, assignment of new roles, revision of incentives, strategies to collapse organisational hierarchies or layers to increase agility.
Capabilities: CEOs need to equip their organisation with four key capabilities to harness digital for a superior capacity for change. These are nimbleness, scalability, stability and optionality which are often enabled or supercharged by digital technologies which are critical factors for competing in an increasingly disrupted world.
For now, one of the CEOs most important roles when steering the ship through disruption is to be ahead of the latest trends and tackle change head-on. By embracing a new digital future that will provide the company with long-lasting benefits, it will help create a brighter and future-proofed firm for years to come even after the CEO is gone.
Gartner surveyed 400 senior business leaders about the challenges faced and their priorities for 2022-23. We analysed the results
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Priorities change in a business; they evolve all the time to match the societal landscape around them. Following a major worldwide disruption like the COVID-19 pandemic, it’s no surprise that the focus for CEOs has shifted to match the way our outlooks and challenges have changed.
Gartner surveyed 400 senior business leaders about their 2022-23 priorities and found that – for the first time – environmental sustainability has made its way into the top 10. Additionally, workforce issues are a bigger priority than ever before.
Mark Raskino, VP Analyst at Gartner, said of the results: “In 2022, the Gartner CEO and Senior Business Executive Survey showed that, catalysed by multiple macro trends and economic factors, business leaders are reprioritizing some key areas of enterprise purpose and management focus.”
The last time there was such a dramatic change in the priorities of CEOs was in 2009-10, during the recovery from the last major recession. Here, we’ll dig into the key challenges for CEOs in 2023…
Growth
While growth remains the primary challenge, with 51% of respondents stating that it’s in their top three priorities, it’s actually down 8% from 2021-22. Gartner has surmised that the reason for this is that, due to ongoing supply chain disruptions, business leaders are less focused on driving up demand if they don’t necessarily know whether they can supply. Many organisations are working hard to revamp and improve their supply chains, but uncertainty remains and nobody wants to make promises that they can’t keep.
Technology
Technology has also dropped slightly as a top three priority, though it remains the second biggest focus at 34%. While the survey respondents are 5% less concerned about tech-related issues than in 2021-22, it’s still hugely important – especially as the world recovers from the pandemic.
Many businesses have taken the pandemic as a sign that they need better digitalisation, as a lack of that made the transition to home working difficult for some. Additionally, cybercrime is a major concern, especially when ensuring employees have the hardware and software they need to work safely from multiple locations.
Workforce
A focus on the workforce is up 32% from 2021-22, putting it at 31% in third place. This is the second consecutive year that workforce has become more of a priority, and there are multiple reasons for this.
Attracting and retaining employees is a challenge because older generations are retiring and there aren’t always enough replacements for specific roles. Plus, the younger generations joining the workforce are more likely to align themselves with businesses they truly believe in, meaning they are more picky, so organisations have to be the best they can and transparent with it.
Additionally, diversity, equality, and inclusion are bigger focuses than ever, and these have been boosted by the spotlight being shone on such topics during the pandemic. All in all, almost half (49%) of CEOs agreed with the statement that ‘it is very difficult for us to find and hire the kind of people we need in our business’.
Corporate
At 29%, corporate has dipped only a little since 2021-22 – just 5% – and remains a top priority. Corporate includes company structure and culture changes, and this is a focus right now due to the challenges of employee retention, as well as the drive towards digitalisation. Corporate change is required to improve business efficiency and performance, hence its position on this list.
Financial
The financial side of business has decreased in importance to CEOs for 2022-2023, dropping by 27% since 2021-22. However, it’s still in the top three for 20% of respondents. CFOs are making a major push towards finance transformation through technology to boost efficiency in their departments. Despite the ongoing challenge of building digital competencies in finance, 82% of CFOs have reported that their investments in digital are accelerating and exceeding investments in many other areas.
Products & Services
Products and services remain in the top three spot for 15% of respondents, up 43% from 2021. As the world recovers from the pandemic, the products and services a business produces are in the limelight. Competition is more fierce than it’s ever been, so innovation is key to remain in the best position.
Customer
The customer as a priority is up 26% from 2021-22, at 15% – and it’s no surprise. Linking into products and services, and the challenge of hiring the latest generation of workers, costumers have very high standards and hard work is required to impress them and retain loyalty.
In a Gartner survey about customer service trends, 74% of respondents stated that improving operational excellence to create a seamless customer journey is either ‘important’ or ‘very important’, and the survey found that business growth is best achieved through positive customer experience outcomes.
Environmental sustainability
Nine per cent of respondents to the Gartner survey stated that environmental sustainability is a top three priority – up a huge 292% from 2021-22. This is the first time it’s broken into the top 10, which is telling. Businesses are increasingly under pressure to do more when it comes to their own environmental impact. Many leading nations are aiming to be carbon neutral within the next few decades and being more sustainable undeniably leads to growth.
Cost
Also at 9% is cost, which is actually down 24%. Despite it being less of a concern than in 2021-22, cost remains a major focus. Supply chain shortages and the government support offered to help people through lockdowns have driven inflation, and Russia’s invasion of Ukraine has made that worse. As a result, we’re seeing the prices of products from the region shoot up, and those cost increases inevitably become the problem of business leaders.
Sales
While it’s number 10 (6%) on Gartner’s list of priority areas, sales is a 77% bigger priority in 2022-2023 than it was in 2021-22. Sales falls into a similar category to cost; with rising inflation comes an inability for customers to spend as freely as they once may have, making the landscape more competitive. Having said that, as we touched on with growth, sales aren’t necessarily being driven to the same degree due to supply chain disruptions.
Sara Malconian, Chief Procurement Officer at Harvard University & Jim Bureau, CEO of JAGGAER explain how ESG & the Circular Economy is changing the evolution of procurement.
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We speak to Sara Malconian, Chief Procurement Officer at Harvard University and Jim Bureau, CEO of JAGGAER to see how ESG and the Circular Economy is changing the evolution of procurement…
Sara, how have you seen your role evolve as a procurement leader over the years as ESG and supplier diversity come into focus?
Procurement leaders have gone from ‘cost cutters’ to ‘problem solvers’ within their organisations. Our core mandates used to be to drive cost savings and efficiency. We were hyper-focused on getting the most out of the organisation’s spend and supplier relationships. Those priorities haven’t gone away, especially in today’s inflationary environment, but the expectations of the procurement function are significantly higher and broader today.
Procurement functions saved their companies during COVID and the confluence of disruptions that followed. We showed we are a strategic linchpin. We are now looked upon to drive value and impact and strategically guide our organisations to achieve broader goals, including diversity and environmental, social, governance (ESG). Internal stakeholders realised the benefits of procurement and sought help with advancing their department’s agendas or solving their challenges. We listen to their needs, allocate the right resources, and ultimately enable them and the overall organisation to be successful.
I’ve been in procurement for over 20 years, and I can honestly say you’d be hard-pressed to find a more rewarding and exciting career. Procurement professionals have a real opportunity to make a tangible difference within their organisations, communities, and the world through the way we source products and services.
What is Harvard doing to have a positive impact on society? Can you share some examples, Sara?
Across the Harvard community, students, alumni, faculty, and staff are advancing scholarship and teaching on the world’s most significant challenges, and everyone wants to do their part to address inequities. Supplier diversity and inclusion have been a priority for Harvard for years, but we wanted to make even more of an impact and really invest in the growth and development of diverse businesses, especially as the pandemic highlighted inequities and disparities within our communities.
In 2021, we formed the Office for Economic Inclusion & Diversity (OEID), which is dedicated to reaching out to diverse suppliers, giving them opportunities, and providing them with tools, training, and resources to be successful. The office also encourages the use of underrepresented business enterprises (UBEs) in the purchasing of all goods, services, and construction at Harvard and standardises procurement practices with these businesses across the university.
We’re proud of the work this office is doing. We’re actively training suppliers on Harvard’s policies and how they can work with us. We’re creating a central location for them to access bid and RFP opportunities. UBEs can also apply to be mentored by Harvard Business School students.
We’ve created a dashboard to track and analyse spend with diverse suppliers across all of Harvard’s schools and measure progress over time. Everything we’re doing is aimed at increasing spend with our existing diverse suppliers, as well as the number of diverse suppliers that work with Harvard, and helping these suppliers grow their businesses.
Jim, why is prioritizing ESG and supplier diversity important and what steps can companies take today to progress in their journey?
Beyond being the right thing to do, investors, boards, regulators, customers, and employees now expect organisations to prioritise ESG and diversity initiatives and walk the talk. There’s also a clear business impact. Supplier diversity drives competitive bidding processes that lead to cost savings. Working with partners who are sustainable and have different ideas and perspectives fuels innovation and creates a competitive advantage. Sourcing from a sustainable and diverse supplier pool also reduces risk by broadening organisations’ access to multiple resources for various materials, products, and services.
One of the most critical steps companies can take to progress on their ESG journey is to make it clear to suppliers that environmentalism is a priority for their organisation. They will attract suppliers with higher levels of ESG maturity and provide suppliers who are earlier on in their ESG journey with sustainability toolkits and training to help educate them on eco-friendly best practices and sustainability innovations.
This step avoids having to overhaul their supply chain to account for ESG. Strategically managing suppliers by leveraging third-party data, scorecards, and supplier audits are crucial for understanding the ESG risks that suppliers pose and minimizing disruptions by working with them to correct these issues.
Successful supplier diversity programs start with a top-down culture shift. If a company’s culture isn’t diverse, inclusive, and supportive for all its stakeholders, they won’t be able to drive supplier diversity in a meaningful way. Supplier diversity strategy should map back to company goals and include an executive-level champion to sponsor the program internally and help bring in the resources they need.
Outside of leveraging technology to identify diverse suppliers and build a program, businesses can talk with people who have been in their shoes. They can collaborate with like-minded companies at industry events, engage in relevant LinkedIn groups, and connect with organisations such as the National Minority Supplier Development Council.
Once diverse suppliers are on board, organisations can create a supplier diversity policy that clearly outlines how many diverse suppliers need to be invited to bid for each event to ensure teams are executing on the strategy. Leading supplier diversity programs go beyond simply spending with diverse suppliers to providing mentorship and training them on how to respond to RFPs correctly, as well as creating environments where it’s easier for them to engage.
Jim, what role does technology play in helping organisations achieve ESG and supplier diversity goals?
Technology is a key enabler of ESG and supplier diversity initiatives. One of the biggest obstacles to supplier diversity and ESG is a lack of reliable supplier data. Suppliers don’t always keep their information up to date in self-service portals. The data procurement teams have isn’t always enriched to the level they need, with insights on diversity status, certifications, and proof of ESG compliance.
Researching and assessing suppliers is tedious and time-consuming, which leads many organisations to skip the verification step. Without this information, organisations don’t have a true picture of the inclusivity and sustainability of their supplier network, which makes it impossible to identify the right partners to source from to meet their ESG and supplier diversity goals and make an impact.
Technology addresses this challenge by automatically collecting, enriching, validating, and integrating the supplier data needed to obtain this level of supply base visibility and make decisions that drive ESG and diversity. AI-powered tools are available to match buyers with specific diverse suppliers who also have the capabilities to help drive ESG objectives and meet broader procurement criteria.
Software that segments the supply base and helps visualise spending with small and diverse suppliers across a variety of classifications is critical for setting benchmarks and measuring progress and ROI.
Jim and Sara, how do you expect the ESG and diversity conversation to shift and where should procurement leaders focus for the future?
Sara: I expect we’ll see the conversation shift to emphasise measurement. It’s not enough anymore to say you’re committed to ESG – you need to prove it and show demonstrable progress and ROI. Maintaining the momentum on ESG initiatives is hard. Technology is key for setting benchmarks and goals, ensuring accountability for hitting key milestones, and measuring progress and return in a credible way.
Jim: In a declining economic environment, choices inevitably need to be made. I expect the conversation around ESG will center around where companies can focus to maintain progress on ESG initiatives as financial and economic pressures come to the forefront. While some companies may need to scale back in some areas to preserve cash and resources to navigate a downturn, I’d advise them to be careful about slowing ESG down too much as it will be much harder to catch up to current levels after the economy bounces back.
I’d argue that when ESG is done right it can be a strategic lever for navigating a down economy, saving organizations money and resources, driving innovation, and helping them achieve broader business objectives and resilience.
Here are five of the biggest procurement events happening during 2023 that chief procurement officers won’t want to miss.
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Procurement Futures
London, UK | 1-2 February 2023
Held at the QEII Centre in central London, Procurement Futures is a new conference, launching in 2023. It promises delegates the chance to find out how to make supply chains more resilient, with thought-provoking and presentations and discussions designed to inform and inspire.
There is a flexible programme of content that can be tailored to attendees’ preferences, with networking opportunities throughout and a huge variety of sessions to attend and take part in.
This CIPS event has three streams of content: Insights, Ignite and Interact. Insights will showcase presentations and panel discussions from leaders, Ignite will consist of hands-on workshops to help delegates optimise their procurement strategies and Interact will be smaller groups taking part in interactive roundtables and debates.
Speakers across the two days will include Ross Grierson, Director of Procurement, Primark; Patrick Dunne, Director of Group Property, FM & Procurement (CPO), Sainsburys Plc; Rebecca Simpson, Procurement and Supply Chain Director, Balfour Beatty; and Nick Jenkinson, Chief Procurement Officer, Santander. In addition, delegates are ablew to book a one-to-one career workshop, where they’ll get advice on professional development from coaches covering a variety of specialisms.
Tickets are £795 for CIPS member, £995 for a non-member and £2240 for a supplier/solution provider, and there is a discount of 30% for tickets purchased before 30 November 2022.
The third World Digital Procurement Summit is aimed at procurement directors, VPs, managers and other industry specialists. The two-day event will focus on accelerating procurement processes, adopting emerging technologies, finding the right talent, overcoming the barriers to progress and embarking on a journey of transformation. It’s a hybrid event, bringing together procurement experts from various industries, which will maximise knowledge exchange opportunities. The event organisers list five key learning points for delegates:
Exploring the latest advances in data and cognitive technologies to gain greater insights and improve procurement processes
Overhauling the procurement ecosystem with new technologies and strategies to drive business value
Sharing the best practices of monitoring and managing a range of risks to hedge against future disruptions
Developing capabilities and skillset required for the digital transformation of procurement
Defining ESG metrics of the procurement strategy to ensure business continuity
Speakers will include Paul Harlington, Group Procurement Director at TUI Group and Patrick Foelck, Head of Strategy and Transformation Procurement at Roche.
Click here to check out a video from a previous event. Tickets cost €1495.
Returning for its 8th annual event, Women in Procurement & Supply Chain will deliver two days dedicated to leadership and the future of procurement. The event will feature a series of exclusive panel discussions and keynote addresses examining career development, overcoming imposter syndrome, working with confidence, developing an unbeatable talent pool, mentoring, diversity and inclusivity.
It will also address risk mitigation, digital disruption, ESG, sustainability, economic development, ethical sourcing, category management, cultural diversity, strategic sourcing, supplier relationships, procurement with purpose, and supply chain resilience. There are two pre-conference masterclass options on 6 March – that can be booked separately – covering either contract law or leadership skills.
Some of the reasons to attend include:
Discover the path to taking your procurement career to a new level while elevating your organisation with dedicated days on leadership and the future of procurement
Learn best practice strategies to facedown supply chain vulnerabilities and reduce risk exposure
Get ahead of the game with insights into the future of procurement and the impact of globalisation on modern supply chains
Put yourself at the cutting edge of ESG and procurement with the latest updates and trends in procurement with purpose
Speakers for the main two-day conference include Michelle Richard, Director of Procurement, Thales; Karina Davies, Chief Procurement Officer, icare NSW; and Kylie McKinlay, Procurement Partner – Property and Business, Australian Broadcasting Corporation.
Tickets start at $3,495 with discounts available until 25 November 2022.
The Americas Procurement Congress will feature the region’s most progressive CPOs sharing their expertise
With a focus on what makes CPOs tick, the Americas Procurement Congress will feature the region’s most progressive CPOs sharing their expertise in keynote presentations and working groups.
Giving delegates the tools to stay on the cutting edge of procurement developments, there are also sessions aimed at those with responsibilities over governance, procurement capabilities and quantifying data. Unsurprisingly, sustainability will also be a key theme in 2023, and attendees will hear from a diverse range of sustainability leaders about how to transition from traditional metrics to a purpose-driven function.
The agenda for Americas Procurement Congress 2023 will include:
Sustainability of the future
How to transition from traditional metrics to a purpose-driven function
Harnessing the power of digital transformation
Utilizing data as a driver of sustainable value, supply continuity and transparency Agile procurement
New approaches and skills that facilitate speed and agility
Frictionless procurement
Removing friction from the procurement process to support high-velocity sourcing
Beyond Just in Time
Designing future-fit supply networks for an age of chaos and conflict
Gartner Supply Chain Symposium/Xpo 2022 addressed the most significant challenges that chief supply chain officers and supply chain leaders face as they mitigate risk and navigate uncertainty in an increasingly dynamic and challenging environment.
At the conference, the top 5 sessions that CSCOs and supply chain leaders met on included:
Signature Series: The Future of Supply Chain
What the Pivot to Sustainable Profit Means for Procurement Leaders
The Art of the New Age One Page Dashboard: Why Your Current Perfor-mance Measures May Be Doing More Harm Than Good
Manage Supplier Risk With Technology
Procurement Role Redesign: Stop Fitting Square Pegs Into Round Holes
Here are five of the best procurement schools in Europe.
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As procurement becomes an increasingly vital and strategic function within many organisations, people are beginning to realise the full potential of turning it into a career for themselves.
This has subsequently led to many universities noticing the demand in the industry and offering courses which equip students with the relevant qualifications and skills needed to succeed in the supply chain space.
With this in mind, here are five of the best procurement schools in Europe.
1. CIPS
Course: Various Where: Across England
Run by Oxford College of Procurement and Supply, there are 10 Chartered Institute of Procurement and Supply centres in England offering several different qualification levels to choose from. The courses are recognised throughout the world as harnessing leading edge thinking and professionalism across the procurement and supply chain management space.
CIPS offers courses such as level three, four, five and six in procurement and supply with each qualification created to reflect current, emerging and best practice in procurement and supply chain management. Classes focus on exploring legacy purchasing and supply methods as well as techniques and theory to the application in a business environment.
CIPS doesn’t just offer in-person studying as courses are designed to suit individual lifestyles with virtual classrooms, part-time and weekend options to choose from.
2. Politecnico di Milano
Course: MSc in Supply Chain and Procurement Management Where: Milan, Italy
Renowned as being one of the best scientific and technological universities in the world, Politecnico di Milano offers an extensive portfolio of programmes in a variety of different spaces. Its supply chain master’s degree is a 12-month course aimed at equipping students with vital knowledge and skills needed to succeed in the industry.
The course also includes a number of practical activities in the programme such as lessons with international lectures, workshops on soft skills, company presentations, projects with companies, company visits and an international study tour in Rotterdam.
According to Politecnico di Milano, 86% of students were employed three months after graduation while 55% were also working abroad during the same period.
The course was ranked third in the TOP 2021 Eduniversal Best Masters Ranking (Global) and eighth in the QS Supply Chain Management Masters Rankings for 2023.
3. SKEMA Business School
Course: MSc (and MS) Supply Chain Management and Purchasing Where: Lille and Paris, France
Skema offers two supply chain management (SCM) and procurement masters: The premium international MSc Global Supply Chain Management in Lille taught in English, and the MS in SCM and Purchasing in Paris and Lille mainly taught in French. France’s highly-rated supply chain and procurement program has been designed with a progressive shift from theory to practice. The degree covers the entirety of supply chain activities from planning, purchasing, receiving, production, storage to delivery through nine compulsory and six elective courses.
The global MSc has a new cooperation with the leading prestigious business school, MIT in the US, plus another cooperation with Politechnico from Milano. The MSc master’s degree provides soft skills in supply chain and purchasing management as well as going into future trends in digitalisation, AI, sustainability, ethics, globalisation, risk management and agility. The course’s primary goal is to find future leaders who are seeking to make a positive impact on the world of supply chain management and procurement. The MSc is a full time program, complemented by paid internships in the area of the student’s choice, while the MS alternates weeks of classes with professionals at the forefront of their fields.
4. Audencia Business School
Course: MSc in Supply Chain and Purchasing Management Where: Nantes, France
Created in 2009, Audencia Business School’s programme will cover topics such as procurement, global sourcing and supply chain strategies. Other topics to feature includes green logistics, Big Data, digital transformation, negotiation and commercial law. The course will provide expertise from industry insiders as business executives visit and share professional insights during the programme.
The school works closely with the corporate world and is recognised for its responsible management practices. Audencia is triple-accredited, highly ranked and internationally oriented and according to its website, 79% of course graduates are employed before graduation. The course is available as a one-year or two-year master’s programme.
In autumn 2024, the course is set to be renamed to the MSc in Responsible Procurement and Supply Chain Management.
5. Cranfield School of Management
Course: MSc in Procurement and Supply Chain Management Where: Cranfield, United Kingdom
Cranfield School of Management provides students with specialist knowledge and skills in procurement needed to progress their careers
Cranfield’s Procurement and Supply Chain Management course has been co-designed with senior industry executives. This purchasing postgraduate course provides students with specialist knowledge and skills in procurement needed to progress their careers. Possessing one of the largest facilities in Europe, the course places considerable emphasis on how to overcome real-world challenges.
Students will gain an in-depth understanding of supply chain strategy and sustainability, procurement strategy, supplier selection and evaluation, negotiation and contact management. They will also be taught how to use data, models and software to solve problems and inform decisions, inventory and operations management and how to design effective supply chain operations.
Students will have the opportunity to attend a study tour and experience a different supply chain perspective elsewhere in Europe.
The course was ranked 11th in the world on the QS Supply Chain Management Masters Rankings for 2023.
Expert analysis of the tech trends set to make waves this year
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Digital transformation is a continuing journey of change with no set final destination. This makes predicting tomorrow a challenge when no one has a crystal ball to hand.
After a difficult few years for most businesses following a disruptive pandemic and now battling a cost-of-living crisis, many enterprises are increasingly leveraging new types of technology to gain an edge in a disruptive world.
With this in mind, here are what experts predict for the next 12 months…
1. Process Mining
Sam Attias, Director of Product Marketing at Celonis, expects to see a rise in the adoption of process mining as it evolves to incorporate automation capabilities. He says process mining has traditionally been “a data science done in isolation” which helps companies identify hidden inefficiencies by extracting data and visually representing it.
“It is now evolving to become more prescriptive than descriptive and will empower businesses to simulate new methods and processes in order to estimate success and error rates, as well as recommend actions before issues actually occur,” says Attias. “It will fix inefficiencies in real-time through automation and execution management.”
2. The evolution of social robots
Gabriel Aguiar Noury, Robotics Product Manager at Canonical, anticipates social robots to return this year. After companies such as Sony introduced robots like Poiq, Aguiar Noury believes it “sets the stage” for a new wave of social robots.
“Powered by natural language generation models like GPT-3, robots can create new dialogue systems,” he says. “This will improve the robot’s interactivity with humans, allowing robots to answer any question.
“Social robots will also build narratives and rich personalities, making interaction with users more meaningful. GPT-3 also powers Dall-E, an image generator. Combined, these types of technologies will enable robots not only to tell but show dynamic stories.”
3. The rebirth of new data-powered business applications
Christian Kleinerman, Senior Vice President of Product at Snowflake, says there is the beginning of a “renaissance” in software development. He believes developers will bring their applications to central combined sources of data instead of the “traditional approach” of copying data into applications.
“Every single application category, whether it’s horizontal or specific to an industry vertical, will be reinvented by the emergence of new data-powered applications,” affirms Kleinerman. “This rise of data-powered applications will represent massive opportunities for all different types of developers, whether they’re working on a brand-new idea for an application and a business based on that app, or they’re looking for how to expand their existing software operations.”
4. Application development will become a two-way conversation
Adrien Treuille, Head of Streamlit at Snowflake, believes application development will become a two-way conversation between producers and consumers. It is his belief that the advent of easy-to-use low-code or no-code platforms are already “simplifying the building” and sharing of interactive applications for tech-savvy and business users.
“Based on that foundation, the next emerging shift will be a blurring of the lines between two previously distinct roles — the application producer and the consumer of that software.”
He adds that application development will become a collaborative workflow where consumers can weigh in on the work producers are doing in real-time. “Taking this one step further, we’re heading towards a future where app development platforms have mechanisms to gather app requirements from consumers before the producer has even started creating that software.”
5. The Metaverse
Paul Hardy, EMEA Innovation Officer at ServiceNow, says he expects business leaders to adopt technologies such as the metaverse in 2023. The aim of this is to help cultivate and maintain employee engagement as businesses continue working in hybrid environments, in an increasingly challenging macro environment.
“Given the current economic climate, adoption of the metaverse may be slow, but in the future, a network of 3D virtual worlds will be used to foster meaningful social connections, creating new experiences for employees and reinforcing positive culture within organisations,” he says. “Hybrid work has made employee engagement more challenging, as it can be difficult to communicate when employees are not together in the same room.
“Leaders have begun to see the benefit of hosting traditional training and development sessions using VR and AI-enhanced coaching. In the next few years, we will see more workplaces go a step beyond this, for example, offering employees the chance to earn recognition in the form of tokens they can spend in the real or virtual world, gamifying the experience.”
6. The year of ESG?
Cathy Mauzaize, Vice President, EMEA South, at ServiceNow, believes 2023 could be the year that environmental, social and corporate governance (ESG) is vital to every company’s strategy.
“Failure to engage appropriate investment in ESG strategies could plunge any organisation into a crisis,” she says. “Legislation must be respected and so must the expectations of employees, investors and your ecosystem of partners and customers.
“ESG is not just a tick box, one and done, it’s a new way of business that will see us through 2023 and beyond.”
7. Macro Trends and Redeploying Budgets for Efficiency
Ulrik Nehammer, President, EMEA at ServiceNow, says organisations are facing an incredibly complex and volatile macro environment. Nehammer explains as the world is gripped by soaring inflation, intelligent digital investments can be a huge deflationary force.
“Business leaders are already shifting investment focus to technologies that will deliver outcomes faster,” he says. “Going into 2023, technology will become increasingly central to business success – in fact, 95% of CEOs are already pursuing a digital-first strategy according to IDC’s CEO survey, as digital companies deliver revenue growth far faster than non-digital ones.”
8. Organisations will have adopted a NaaS strategy
David Hughes, Aruba’s Chief Product and Technology Officer, believes that by the end of 2023, 20% of organisations will have adopted a network-as-a-service (NaaS) strategy.
“With tightening economic conditions, IT requires flexibility in how network infrastructure is acquired, deployed, and operated to enable network teams to deliver business outcomes rather than just managing devices,” he says. “Migration to a NaaS framework enables IT to accelerate network modernisation yet stay within budget, IT resource, and schedule constraints.
“In addition, adopting a NaaS strategy will help organisations meet sustainability objectives since leading NaaS suppliers have adopted carbon-neutral and recycling manufacturing strategies.”
9. Think like a seasonal business
According to Patrick Bossman, Product Manager at MariaDB corporation, he anticipates 2023 to be the year that the ability to “scale out on command” is going to be at the fore of companies’ thoughts.
“Organisations will need the infrastructure in place to grow on command and scale back once demand lowers,” he says. “The winners in 2023 will be those who understand that all business is seasonal, and all companies need to be ready for fluctuating demand.”
10. Digital platforms need to adapt to avoid falling victim to subscription fatigue
Demed L’Her, Chief Technology Officer at DigitalRoute, suggests what the subscription market is going to look like in 2023 and how businesses can avoid falling victim to ‘subscription fatigue’. L’Her says there has been a significant drop in demand since the pandemic.
“Insider’s latest research shows that as of August, nearly a third (30%) of people reported cancelling an online subscription service in the past six months,” he reveals. “This is largely due to the rising cost of living experienced globally that is leaving households with reduced budgets for luxuries like digital subscriptions. Despite this, the subscription market is far from dead, with most people retaining some despite tightened budgets.
“However, considering the ongoing economic challenges, businesses need to consider adapting if they are to be retained by customers in the long term. The key to this is ensuring that the product adds value to the life of the customer.”
11. Waking up to browser security
Jonathan Lee, Senior Product Manager at Menlo Security, points to the web browser being the biggest attack surface and suggests the industry is “waking up” to the fact of where people spend the most time.
“Vendors are now looking at ways to add security controls directly inside the browser,” explains Lee. “Traditionally, this was done either as a separate endpoint agent or at the network edge, using a firewall or secure web gateway. The big players, Google and Microsoft, are also in on the act, providing built-in controls inside Chrome and Edge to secure at a browser level rather than the network edge.
“But browser attacks are increasing, with attackers exploiting new and old vulnerabilities, and developing new attack methods like HTML Smuggling. Remote browser isolation is becoming one of the key principles of Zero Trust security where no device or user – not even the browser – can be trusted.”
12. The year of quantum-readiness
Tim Callan, Chief Experience Officer at Sectigo, predicts that 2023 will be the year of quantum-readiness. He believes that as a result of the standardisation of new quantum-safe algorithms expected to be in place by 2024, this year will be a year of action for government bodies, technology vendors, and enterprise IT leaders to prepare for the deployment.
“In 2022, the US National Institute of Standards and Technologies (NIST) selected a set of post-quantum algorithms for the industry to standardise on as we move toward our quantum-safe future,” says Callan.
“In 2023, standards bodies like the IETF and many others must work to incorporate these algorithms into their own guidelines to enable secure functional interoperability across broad sets of software, hardware, and digital services. Providers of these hardware, software, and service products must follow the relevant guidelines as they are developed and begin preparing their technology, manufacturing, delivery, and service models to accommodate updated standards and the new algorithms.”
13. AI: fewer keywords, greater understanding
AI expert Dr Pieter Buteneers, Director of AI and Machine Learning at Sinch, expects artificial intelligence to continue to transition away from keywords and move towards an increased level of understanding.
“Language-agnostic AI, already existent within certain AI and chatbot platforms, will understand hundreds of languages — and even interchange them within a single search or conversation — because it’s not learning language like you or I would,” he says. “This advanced AI instead focuses on meaning, and attaches code to words accordingly, so language is more of a finishing touch than the crux of a conversation or search query.
“Language-agnostic AI will power stronger search results — both from external (the internet) and internal (a company database) sources — and less robotic chatbot conversations, enabling companies to lean on automation to reduce resources and strain on staff and truly trust their AI.”
14. Rise in digital twin technology in the enterprise
John Hill, CEO and Founder of Silico, recognises the growing influence digital twin technology is having in the market. Hill predicts that in the next 20 years, there will be a digital twin of every complex enterprise in the world and anticipates the next generation of decision-makers will routinely use forward-looking simulations and scenario analytics to plan and optimise their business outcomes.
“Digital twin technology is one of the fastest-growing facets of industry 4.0 and while we’re still at the dawn of digital twin technology,” he explains. “Digital twins will have huge implications for unlocking our ability to plan and manage the complex organisations so crucial for our continued economic progress and underpin the next generation of Intelligent Enterprise Automation.”
15. Broader tech security
With an exponential amount of data at companies’ fingertips, Tricentis CEO, Kevin Thompson says the need for investment in secure solutions is paramount.
“The general public has become more aware of the access companies have to their personal data, leading to the impending end of third-party cookies, and other similar restrictions on data sharing,” he explains. “However, security issues still persist. The persisting influx of new data across channels and servers introduces greater risk of infiltration by bad actors, especially for enterprise software organisations that have applications in need of consistent testing and updates. The potential for damage increases as iterations are being made with the expanding attack surface.
“Now, the reality is a matter of when, not if, your organisation will be the target of an attack. To combat this rising security concern, organisations will need to integrate security within the development process from the very beginning. Integrating security and compliance testing at the upfront will greatly reduce risk and prevent disruptions.”
16. Increased cyber resilience
Michael Adams, CISO at Zoom, expects an increased focus on cyber resilience over the next 12 months. “While protecting organisations against cyber threats will always be a core focus area for security programs, we can expect an increased focus on cyber resilience, which expands beyond protection to include recovery and continuity in the event of a cyber incident,” explains Adams.
“It’s not only investing resources in protecting against cyber threats; it’s investing in the people, processes, and technology to mitigate impact and continue operations in the event of a cyber incident.”
17. Ransomware threats
As data leaks become increasingly common place in the industry, companies face a very real threat of ransomware. Michal Salat, Threat Intelligence Director at Avast, believes the time is now for businesses to protect themselves or face recovery fees costing millions of dollars.
“Ransomware attacks themselves are already an individual’s and businesses’ nightmare. This year, we saw cybergangs threatening to publicly publish their targets’ data if a ransom isn’t paid, and we expect this trend to only grow in 2023,” says Salat. “This puts people’s personal memories at risk and poses a double risk for businesses. Both the loss of sensitive files, plus a data breach, can have severe consequences for their business and reputation.”
18. Intensified supply chain attacks
Dirk Schrader, VP of security research at Netwrix, believes supply chain attacks are set to increase in the coming year. “Modern organisations rely on complex supply chains, including small and medium businesses (SMBs) and managed service providers (MSPs),” he says.
“Adversaries will increasingly target these suppliers rather than the larger enterprises knowing that they provide a path into multiple partners and customers. To address this threat, organisations of all sizes, while conducting a risk assessment, need to take into account the vulnerabilities of all third-party software or firmware.”
19. A greater need to manage volatility
Paul Milloy, Business Consultant at Intradiem, stresses the importance of managing volatility in an ever-moving market. Milloy believes bosses can utilise data through automation to foresee potential problems before they become issues.
“No one likes surprises. Whilst Ben Franklin suggested nothing can be said to be certain, except death and taxes, businesses will want to automate as many of their processes as possible to help manage volatility in 2023,” he explains. “Data breeds intelligence, and intelligence breeds insight. Managers can use the data available from workforce automation tools to help them manage peaks and troughs better to avoid unexpected resource bottlenecks.”
20. A human AI co-pilot will still be needed
Artem Kroupenev, VP of Strategy at Augury, predicts that within the next few years, every profession will be enhanced with hybrid intelligence, and have an AI co-pilot which will operate alongside human workers to deliver more accurate and nuanced work at a much faster pace.
“These co-pilots are already being deployed with clear use cases in mind to support specific roles and operational needs, like AI-driven solutions that enable reliability engineers to ensure production uptime, safety and sustainability through predictive maintenance,” he says. “However, in 2023, we will see these co-pilots become more accurate, more trusted and more ingrained across the enterprise.
“Executives will better understand the value of AI co-pilots to make critical business decisions, and as a key competitive differentiator, and will drive faster implementation across their operations. The AI co-pilot technology will be more widespread next year, and trust and acceptance will increase as people see the benefits unfold.”
21. Building the right workplace culture
Harnessing a positive workplace culture is no easy task but in 2023 with remote and hybrid working now the norm, it brings with it new challenges. Tony McCandless, Chief Technology Officer at SS&C Blue Prism, is well aware of the role organisational culture can play in any digital transformation journey.
“Workers are the heart of an organisation, so without their buy in, no digital transformation initiative stands a chance of success,” explains McCandless. “Workers drive home business objectives, and when it comes to digital transformation, they are the ones using, implementing, and sometimes building automations. Curiosity, innovation, and the willingness to take risks are essential ingredients to transformative digitalisation.
“Businesses are increasingly recognising that their workers play an instrumental role in determining whether digitalisation initiatives are successful. Fostering the right work environment will be a key focus point for the year ahead – not only to cultivate buy-in but also to improve talent retention and acquisition, as labor supply issues are predicted to continue into 2023 and beyond.”
22. Cloud cover to soften recession concerns
Amid a cost-of-living crisis and concerns over any potential recession as a result, Daniel Thomasson, VP of Engineering and R&D at Keysight Technologies, says more companies will shift data intensive tasks to the cloud to reduce infrastructure and operational costs.
“Moving applications to the cloud will also help organisations deliver greater data-driven customer experiences,” he affirms. “For example, advanced simulation and test data management capabilities such as real-time feature extraction and encryption will enable use of a secure cloud-based data mesh that will accelerate and deepen customer insights through new algorithms operating on a richer data set. In the year ahead, expect the cloud to be a surprising boom for companies as they navigate economic uncertainty.”
23. IoT devices to scale globally
Dr Raullen Chai, CEO and Co-Founder of IoTeX, recognises a growing trend in the usage of IoT devices worldwide and believes connectivity will increase significantly.
“For decades, Big Tech has monopolised user data, but with the advent of Web3, we will see more and more businesses and smart device makers beginning to integrate blockchain for device connectivity as it enables people to also monetise their data in many different ways, including in marketing data pools, medical research pools and more,” he explains. “We will see a growth in decentralised applications that allow users to earn a modest additional revenue from everyday activities, such as walking, sleeping, riding a bike or taking the bus instead of driving, or driving safely in exchange for rewards.
“Living healthy lifestyles will also become more popular via decentralised applications for smart devices, especially smart watches and other health wearables.”
The digital landscape is changing day by day. Ideas like the metaverse that once seemed a futuristic fantasy are now…
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The digital landscape is changing day by day. Ideas like the metaverse that once seemed a futuristic fantasy are now coming to fruition and embedding themselves into our daily lives. The thinking might be there, but is our technology really ready to go meta? Domains and hosting provider, Fasthosts, spoke to the experts to find out…
How the metaverse works
The metaverse is best defined as a virtual 3D universe which combines many virtual places. It allows users to meet, collaborate, play games and interact in virtual environments. It’s usually viewed and accessed from the outside as a mixture of virtual reality (VR), (think of someone in their front room wearing a headset and frantically waving nunchucks around) and augmented reality (AR), but it’s so much more than this…
These technologies are just the external entry points to the metaverse and provide the visuals which allow users to explore and interact with the environment within the metaverse.
This is the ‘front-end’ if you like, which is also reinforced by artificial intelligence and 3D reconstruction. These additional technologies help to provide realistic objects in environments, computer-controlled actions and also avatars for games and other metaverse projects.
So, what stands in the way of this fantastical 3D universe? Here are the six key challenges:
Technology
The most important piece of technology, on which the metaverse is based, is the blockchain. The blockchain is essentially a chain of blocks that contain specific information. They’re a combination of computers linked to each other instead of a central server which means that the whole network is decentralised. This provides the infrastructure for the development of metaverse projects, storage of data and also allows them the capability to be compatible with Web3. Web3 is an upgraded version of the internet which will allow integration of virtual and augmented reality into people’s everyday lives.
Sounds like a lot, right? And it involves a great deal of tech that is alien to the vast majority of us. So, is technology a barrier to widespread metaverse adoption?
Jonothan Hunt, Senior Creative Technologist at Wunderman Thompson, says the tech just isn’t there. Yet.
“Technology’s readiness for the mass adoption of the metaverse depends on how you define the metaverse, but if we’re talking about the future vision that the big tech players are sharing, then not yet. The infrastructure that powers the internet and our devices isn’t ready for such experiences. The best we have right now in terms of shared/simulated spaces are generally very expensive and powered entirely in the cloud, such as big computers like the Nvidia Omniverse, cloud streaming, or games. These rely heavily on instancing and localised grouping. Consumer hardware, especially XR, is still not ready for casual daily use and still not really democratised.
“The technology for this will look like an evolution of the systems above, meaning more distributed infrastructure, better access and updated hardware. Web3 also presents a challenge in and of itself, and questions remain over to what extent big tech will adopt it going forward.”
Storage
Blockchain is the ‘back-end’, where the magic happens, if you will. It’s this that will be the key to the development and growth of the metaverse. There are a lot of elements that make up the blockchain and reinforce its benefits and uses such as storage capabilities, data security and smart contracts.
Due to its decentralised nature, the blockchain has far more storage capacity than the centralised storage systems we have in place today. With data on the metaverse being stored in exabytes, the blockchain works by making use of unutilised hard disk space across the network, which avoids users within the metaverse running out of storage space worldwide.
In terms that might be a bit more relatable, an exabyte is a billion gigabytes. That’s a huge amount of storage, and that doesn’t just exist in the cloud – it’s got to go somewhere – and physical storage servers mean land is taken up, and energy is used. Hunt says: “How long’s a piece of string? The whole of the metaverse will one day be housed in servers and data centres, but the amount or size needed to house all of this storage will beentirely dependent on just how mass adopted the metaverse becomes. Big corporations in the space are starting to build huge data centres – such as Meta purchasing a $1.1 billion campus in Toledo, Spain to house their new Meta lab and data centre – but the storage space is not the only concern. These energy-guzzlers need to stay cool! And what about people and brands who need reliable web hosting for events, gaming or even just meeting up with pals across the world, all that information – albeit virtual – still needs a place to go.
“The current rising cost of electricity worldwide could cause problems for the growth of data centres, and the housing of the metaverse as a whole. However, without knowing the true size of its adoption, it is extremely difficult to truly determine the needed usage. Could we one day see an entire island devoted to data centre storage? Purely for the purposes of holding the metaverse? It seems a little ‘1984’, but who knows?”
Identity
Although the blockchain provides instantaneous verification of transactions with identity through digital wallets, our physical form will be represented by avatars that visually reflect who we are, and how we want to be seen.
The founder of Saxo Bank and the chairman of the Concordium Foundation, Lars Seier Christensen, argues, “I think that if you use an underlying blockchain-based solution where ID is required at the entry point, it is actually very simple and automatically available for relevant purposes. It is also very secure and transparent, in that it would link any transactions or interactions where ID is required to a trackable record on the blockchain.”
Once identity is established, it is true that it could potentially become easier to assess creditworthiness of parties for purchasing and borrowing in the metaverse due to the digital identity and storage of each individual’s data and transactions on the blockchain. However, although it sounds exciting, there must be considerations into how it could impact privacy, and how this amount of data will be recorded on the blockchain.
Security
There are also huge security benefits to this set up. The decentralised blockchain helps to eradicate third-party involvement and data breaches, such as theft and file manipulation, thanks to its powerful data processing and use of validation nodes. Both of these are responsible for verifying and recording transactions on the blockchain. This will be reassuring to many, given the widespread concerns around data privacy and user protection in the metaverse.
To access the blockchain all we will need is an internet connection and a device, such as a laptop or smartphone, this is what makes it so great as it will be so readily available. However, to support the blockchain, we’re relying on a whole different set of technologies. Akash Kayar, CEO of web3-focused software development company Leeway Hertz, had this to say on the readiness of the current technology available: “The metaverse is not yet completely mature in terms of development. Tech experts are researching strategies and
testing the various technologies to develop ideas that provide the world with more feasible and intriguing metaverse projects.
“Projects like Decentraland, Axie Infinity, and Sandbox are popular contemporary live metaverse projects. People behind these projects made perfect use of notable metaverse technologies, from blockchain and cryptos to NFTs.
“As envisioned by top tech futurists, many new technologies will empower the metaverse in the future, which will support the development of a range of prolific use cases that will improve the ability of the metaverse towards offering real-life functionalities. In a nutshell, the metaverse is expected to bring extreme opportunities for enterprises and common users. Hence, it will shape the digital future.”
Currency & Payments
Whilst it’s only considered legal tender in two countries, cryptocurrency is currently a reality and there is a strong likelihood that it will eventually be mass adopted. However, the metaverse is arguably not yet at the same maturity level, meaning cryptocurrency may have to wait before it can finally fully take off.
Golden Bitcoin symbol and finance graph screen. Horizontal composition with copy space. Focused image.
There is no doubt that cryptocurrency and the metaverse will go hand-in-hand as the former will become the tender of the latter with many of the current metaverse platforms each wielding its native currency. For example Decentraland uses $MANA for payments and purchases. However, with the volatility of crypto currencies and the recent collapse of trading platform FTX indicating security lapses, we may not yet be ready for the switch to decentralised payments.
Energy
Some of the world’s largest data centres can each contain many tens of thousands of IT devices which require more than 100 megawatts of power capacity – this is enough to power around 80,000 U.S. households (U.S. DOE 2020) and is equivalent to $1.35bn running cost per data centre with the cost of a megawatt hour averaging $150.
According to Nitin Parekh of Hitachi Energy, the amount of power which takes to process Bitcoin is higher than you might expect: “Bitcoin consumes around 110 Terawatt Hours per year. This is around 0.5% of global electricity generation. This estimate considers combined computational power used to mine bitcoin and process transactions.” With this estimate, we can calculate that the annual energy cost of Bitcoin is around $16.5bn.
However, some bigger corporations are slowly moving towards renewable energy to power their projects in this space, with Google signing close to $2bn worth of wind and solar investments in order to power its data centres in the future and become greener. Amazon has also followed in their footsteps and have become the world’s largest corporate purchaser of renewable energy.
They may have plenty of time yet to get their green processes in place, with Mark Zuckerberg recently predicting it will take nearly a decade for the metaverse to be created: “I don’t think it’s really going to be huge until the second half of this decade at the earliest.”
About Fasthosts
Fasthosts has been a leading technology provider since 1999, offering secure UK data centres, 24/7 support and a highly successful reseller channel. Fasthosts provides everything web professionals need to power and manage their online space, including domains, web hosting, business-class email, dedicated servers, and a next-generation cloud platform. For more information, head to www.fasthosts.co.uk
Todd Salmon, Executive Advisor for Strategic Services at GuidePoint Security, on the cybersecurity challenge of keeping up with the pace of the ever-changing digital world
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This month’s cover story explores how GuidePoint Security, an elite team of highly trained and certified experts, cut through cybersecurity chaos and confusion to put control back in customers’ hands.
Welcome to the latest issueof Interface magazine!
Interface welcomes in 2023 with a need-to-know list of what we can expect from technology this year and how it can allow enterprises to gain a competitive edge in a disruptive and increasingly digital world. Faced with everything from process mining and AI to quantum-readiness and the metaverse we cut through the hype to bring you the facts.
GuidePoint Security: digital transformation in cybersecurity
“Cybersecurity is in such a reactive mode because of the sheer volume of risks and vulnerabilities an organisation faces,” says Todd Salmon, Executive Advisor for Strategic Services at GuidePoint Security. “We see a lot of copycats and repeat attacks happen, but at the end of the day it’s all about creating solutions to help combat those problems.”
GuidePoint’s elite team of highly trained and certified experts, cut through cybersecurity chaos and confusion to put control back in customers’ hands. Helping them make the smartest, most informed cyber risk decisions, and choose and integrate the best-fit solutions to build the most effective cybersecurity program, Salmon discusses the challenge of keeping up with the pace of the ever-changing digital world.
bp: a strategic reinvention
“We are investing in digital to drive process efficiency and improve insights; but also to develop our people with the skills we need for now, and the future at bp. This means we are playing to win while caring for our people through investing in their personal development,” says Head of Strategic Transformation Nick Hales.
“After setting the right foundations through various remediation and compliance initiatives, we embarked on our digital transformation journey,” adds Strategy & Transformation Manager Emmanouela Vlachantoni. “There was a clear opportunity to standardise and streamline our controls environment to reduce complexity and increase insight.”
Fairfax County: winning the IT war with cybersecurity
Meanwhile, across the pond, we learn how Fairfax County in the State of Virginia is reaping the rewards of a cybersecurity program enabling government services and keeping citizens safe. “My role is to educate our leadership to ensure they understand the business value of cybersecurity as it relates to government services. Being accountable for the security of their systems and data is a key factor in developing a successful cyber program,” explains CISO Michael Dent.
Also in this issue, we round up the key tech events and conferences across the globe and, with the help of the experts at Fasthosts, take a deep dive into the metaverse… Can virtual reality become our reality? Read on to find out.
Nick Hales, Head of Strategic Transformation and Emmanouela Vlachantoni, Strategy & Transformation Senior Manager, on the journey to reinvent business processes that are reimagining bp
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This month’s cover story reveals how bp’s Strategic Transformation leaders are on a journey to reinvent business processes that are reimagining the energy giant.
Welcome to the latest issueof Interface magazine!
Our final issue of Interface for 2022 covers some of this year’s hot tech topics: digital transformation, cybersecurity, data & analytics, customer-centricity and more…
“We are investing in digital to drive process efficiency and improve insights; but also to develop our people with the skills we need for now, and the future. This means we are playing to win while caring for our people through investing in their personal development,” says Nick Hales.
“After setting the right foundations through various remediation and compliance initiatives, we embarked on our digital transformation journey,” adds Emmanouela Vlachantoni. “There was a clear opportunity to standardise and streamline our controls environment to reduce complexity and increase insight.”
Fairfax County: winning the IT war with cybersecurity
Meanwhile, across the pond, we learn how Fairfax County in the State of Virginia is reaping the rewards of a cybersecurity program enabling government services and keeping citizens safe. “My role is to educate our leadership to ensure they understand the business value of cybersecurity as it relates to government services. Being accountable for the security of their systems and data is a key factor in developing a successful cyber program,” explains CISO Michael Dent.
Piedmont Healthcare: data & analytics at the heart of growth
The power of data cannot be under-estimated… At Piedmont Healthcare Mark Jackson, Executive Director of Business Intelligence is building a data strategy driving speed to insight at scale. “Tool selection has played an important role in our ability to scale the BI program and deliver rapid insights in a dynamic environment.”
Also in this issue, CalArts CTO Allan Chen explains how an IT strategy based on coordination and collaboration is supporting six schools; Information Tech VP Fausto Sosa de la Fuente reveals the people-centric transformative IT process at construction industry giant CEMEX; and we take a look at the latest insights from McKinsey highlighting the lessons CEOs can learn from successful digital transformations.
John MClure, CISO at Sinclair Group – a diversified media company and America’s leading provider of local sports and news – talks about the evolution of cybersecurity and the cultural shift placing it at the forefront of business change
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This month’s cover story explores how Sinclair Broadcast Group is embracing the evolution of cybersecurity and placing the role of the CISO at the forefront of business transformation.
Welcome to the latest issueof Interface magazine!
Communication, secure and at speed, is a vital component of the transformation journey for both the modern enterprise and its relationship with stakeholders, be they customers or partners. Putting the right building blocks in place to deliver successful change management is at the heart of the inspiring stories in the latest issue of Interface.
Our cover star John McClure progressed from a career in the military and work as a consultant in the intelligence industry to fight a new kind of foe… As CISO for Sinclair Broadcast Group, a diversified media company and America’s leading provider of local sports and news, he talks about the evolution of cybersecurity, the battle to meet the rising velocity and sophistication of cyber-attacks and the cultural shift of the role of CISO placing it at the forefront of business change.
“Sinclair is unique in terms of its different business units and how it operates. It’s my job as CISO leading our cyber team not to be an obstacle for the business; we’re here to help it move faster to keep up with market forces, and to move safely. We’re here to engineer solutions that work for the enterprise but also help us maintain a positive security posture.”
State of Florida: digital government services
We also hear from CIO Jamie Grant who is leading the State of Florida’s Digital Service (FL[DS]) on its charge to transform and modernise the way government is accessed and consumed. He is building a team of talented, goal-oriented and customer-obsessed individuals to drive a digital transformation with innovation at its heart. “Leadership is really about developing the team and investing in the people. And it turns out that when you get their backs, they appreciate it and then you can achieve anything.”
ResultsCX: putting people first
Jamie Vernon, SVP for IT & Infrastructure at AI-powered customer experience solution specialist ResultsCX, discusses what drives customer care in the 21st century, and the part technology has to play.
“We are the custodians of our customers’ customers,” says Vernon. “In this increasingly tenuous relationship with their customers, they trust us. My leadership takes that responsibility very seriously, and charges each of us with doing everything we can to provide a perfect call, or email, or chat, every time, thousands of times a minute, around the clock and around the calendar.”
Jamie Vernon, SVP for IT & Infrastructure at AI-powered customer experience solution specialist ResultsCX, discusses what drives customer care in the 21st century, and the part technology has to play.
“We are the custodians of our customers’ customers,” says Vernon. “In this increasingly tenuous relationship with their customers, they trust us. My leadership takes that responsibility very seriously, and charges each of us with doing everything we can to provide a perfect call, or email, or chat, every time, thousands of times a minute, around the clock and around the calendar.”
Also this month, Sarita Singh, Regional Head & Managing Director for Stripe in Southeast Asia, talks about how the fast-growing payments platform is driving financial inclusion across Asia and supporting SMEs with end-to-end services putting users first, and we get expert advice for the modern CEO from the University of Oxford’s Saïd Business School.
Our cover story this month reveals how Dr Roman Salasznyk, Senior Vice President at Booz Allen Hamilton, and his team are driving innovation at the IT services specialist to deliver digital solutions supporting federal agencies in their quest to drive mission-critical programs
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This month’s cover story charts how IT services specialist Booz Allen Hamilton is delivering digital solutions to support federal agencies in their quest to deliver mission-critical programs.
Welcome to the latest issue of Interface magazine!
Technology is changing lives; from banking to transport and manufacturing to healthcare, the scaling of digital transformation journeys across global industry sectors is enabling and enhancing our lives… Harnessing the power of tech, to manage everything from the evolution of our supply chains to our response to medical emergencies like COVID-19, is changing the game.
Our cover story this month reveals how IT services specialist Booz Allen Hamilton is delivering leading edge solutions to support federal agencies in their quest to deliver mission-critical programs.
“We’ve made a concerted effort to invest and provide leading-edge capabilities to support some of our client’s most pressing public health challenges across the federal government space,” says Salasznyk. “Technology must add value, solve a business problem, and deliver measurable improvements in efficiency and effectiveness.” That efficiency is driven by over 29,000 experts around the world driving digital journeys, developing analytics insights, engineering, and cybersecurity solutions while working shoulder-to-shoulder with clients to choose the right tech to realise their vision and transform.
Nuffield Health: digital transformation for a healthier tomorrow
Nuffield Health is the UK’s largest healthcare charity (independent of the NHS) operating 37 hospitals and 114 Fitness & Wellbeing Centres. IT leaders Jacqs Harper and David Ankers describe the organisation’s incredible digital transformation and how its people-first attitude runs deep. Nuffield’s beneficiary-centric approach means “driving experiences” to be optimal and best-in-class is paramount. “What was really compelling when I joined Nuffield was how much of a difference this business can make to the nation in terms of improving its health,” says Ankers. “And equally, how we as a team can make the lives of practitioners so much easier. There’s a huge amount of value IT can add.”
Also in this issue, we hear from Celonis on why process mining can help companies stop wasting money on tech they don’t need, and we present the latest analysis from consultancy giant McKinsey’s Technology Council highlighting the development, future uses and industry effects of advanced technologies across 14 key trends.
CPOstrategy’s cover star this month is procurement transformation expert, and CEO and Co-Founder of Tropic, David Campbell…
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Right now, procurement excellence is blooming. Experts determined to create change are coming to the fore and aligning procurement with SaaS to bring an end to the do-it-yourself way of working that decimates technology budgets. Tropic is one such game-changer, providing the tools to navigate software procurement’s complexities for competitive advantage.
The CEO and Co-Founder of Tropic is David Campbell, a born entrepreneur. He grew up on a cattle ranch in California and has always had at least one side-hustle on the go. Even as a child, he was running some form of money-making venture at any one time – but he didn’t necessarily consider that entrepreneurial pursuits were his calling until later.
CEO and Co-Founder of Tropic, David Campbell
Campbell studied English at UC Berkeley, and on graduating assumed he’d go into the arts. He’s a lifelong musician and writer, and he moved to a cabin in the woods to write the ‘next great American novel’. This venture, while it didn’t have the exact results he had hoped for, planted the seed in his mind that perhaps entrepreneurialism was for him because he loved setting his own hours and vision, creating a strategy, and executing that…
Elsewhere, we have exclusive interviews with supply chain and procurement leaders at the City of Edmonton and QSC, as well as the results of our first Sustainable Procurement Champions Index. We also have some exciting news from DPW too, ahead of its conference later this month.
Our cover story this month explores how Wei Li, Vice President & GM for AI & Analytics at Intel, and his team are powering Artificial Intelligence to enable the digital journey from data to insights
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This month’s cover story explores Intel’s AI technologies powering the digital journey from data to insights…
Welcome to the latest issue of Interface magazine!
In this issue of Interface, we speak with a diverse group of tech leaders blazing a trail that others can follow to navigate the journey towards transformation.
We met with this month’s cover star Wei Li at the AI Summit during London Tech Week where Intel’s AI & Analytics leader delivered a compelling keynote speech and explained how the tech leader is powering Artificial Intelligence to enable the digital journey from data to insights.
“AI Everywhere means that anybody should be able to apply and use AI,” says Li, explaining the pledge Intel has made to further democratise the use of technologies such as AI. “We provide not only the hardware for AI, but also AI software and solutions for everyone to accelerate their data to insights journey. Software is the bridge between hardware and the millions of developers and billions of users.”
London Tech Week
During London Tech Week Chris Philp MP, the Parliamentary Under Secretary of State at the Department for Digital, Culture, Media and Sport (DCMS), discussed the launch of the UK’s Digital Strategy with an expert panel. We take a look at what this means for Britain’s approach to expanding the reach of its digital economy to drive growth, boost productivity and create more better-paid jobs.
ENGIE: collaboration through data
We speak with ENGIE’s Group Chief Analytics Officer Thierry Grima, who outlines the extraordinary data transformation the global utility giant is going through, and how the ground-breaking data connection of 170,000 global team members is benefiting the business. “As a business, we need to unlock the value of data because it’s no longer a competitive advantage. It’s just a necessity.”
Elsewhere, Jim Brady from Fairview Health Services reveals how his dual role as CISO and VP Information Security & Infrastructure/Operations is uniting security and operational technology to break down silos and drive a transformation with people power at its heart. “I love people, helping them and interacting with them in a positive way. There are several hundred people on my team, but I still spend time with them one-on-one and in small groups, even now that we’re largely working remotely.”
Also in this issue, S. M. Jaleel’s CIO Teoman Buyan explains how the right company culture can drive a positive technology transformation and Sal Laher, Chief Digital & Information Officer at global enterprise software provider IFS, talks about the importance of developing a more environmentally friendly approach to technology that weaves sustainability into the software fabric.
This month’s cover story explores the customer-centric digital transformation journey of leading insurer AXA being led by UK & Ireland CIO Darrell Ryman
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Our cover story this month explores how leading insurer AXA‘s customer-centric digital transformation journey is refining the art of the possible to unite business with technology.
Welcome to the latest issue of Interface magazine!
The opportunity to leverage data & analytics to transform organisations seeking to sharpen their digital focus and better connect with internal and external stakeholders is at the forefront of a revolution in connectivity driving both operational efficiency and growth. In this issue we bring you some inspiring stories that reflect the impact today’s innovations are having on shaping the business journeys of tomorrow…
This month’s cover story explores the customer-centric digital transformation journey being led by AXA’s UK & Ireland CIO Darrell Ryman. “It’s both a challenge and an opportunity for the insurance industry,” he reflects. “Many of the legacy systems firms use are now outdated and based on the nine-to-five business operating model – they’re not designed for the modern digital experience.” Ryman’s IT team is driving that transformation pivot by focusing on three key pillars: developing a digital backbone, becoming a digital business and creating a digital ecosystem.
https://www.youtube.com/watch?v=i6wxgQ2gAmI
XGS
Today’s on demand transactions require custom logistics solutions. We discover how flooring supply chain specialist Xpress Global Systems (XGS) is combining existing data with employee experience to deliver technology solutions that form the core of the company’s humanised approach to digital transformation.
EY
Also in this issue, Ken Priyadarshi CT AI leader of EY Technology, explains how the leading professional services network is developing Digital Twins to deliver big-data and low-latency scenario planning models for financial services: “It’s time for the digital twin to become a mainstream tool for the C-suite and go beyond the traditional manufacturing or operational use-cases.”
Data management driving efficiency and growth
Elsewhere, we learn how specialist insurance broker Howden is achieving success in Asia by establishing a structured, data-driven, engagement and distribution strategy; and reveal the way America’s leading critical infrastructure damage prevention firm, Stake Center Locating, is future-proofing by transferring its expertise from legacy systems to the cloud.
Martin Riley, Bridewell Consulting’s Director of Managed Services, explains why a cyber security strategy can future proof your business and provide the platform for a successful digital transformation
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Regardless of sector, digital transformation has become a business necessity for organisations in 2021. Described as the most important trend in business today, 65% of the globe’s GDP is expected to be digitalised by the end of 2022. And with promised benefits including improved operational efficiency, agility and employee productivity, it’s no surprise that businesses are going digital.
However, while there’s no denying the importance of digital transformation, different levels of organisational maturity can lead to different approaches and this is particularly apparent when it comes to security. Many organisations often take a reactive approach, whereby business and technology transformation are the priority and security is only considered afterwards. However, the risks from putting security on the backburner can be numerous, including higher costs and extended timelines to retrofit crucial security fixes.
Martin Riley
More mature companies have a different approach – one that puts security transformation first, ahead of digital transformation, to ensure the best possible future-proofed outcome. Their success is now providing a valuable proven blueprint for other firms to follow. So, to reap the benefits of this approach where should you start?
Shift your mindset
Before embarking on any transformation, it’s imperative to get your strategy right. Move away from thinking purely about digital transformation and cyber security as separate strategies and instead develop a cyber security transformation strategy. This will ensure that you can reduce risk and improve your cyber resilience, even as your attack surface grows.
It may be that security transformation becomes the driver of your digital transformation. For example, if you have identified vulnerabilities within your legacy IT infrastructure that necessitates a need to move critical data to the cloud.
Take critical national infrastructure as an example… The convergence of IT and Operational Technology (OT) as well as increased legislative requirements, such as the Network and Information Systems (NIS) Regulation, is driving a clear need for cyber security transformation. Organisations need to adapt to gain a holistic view of cyber security across physical OT and cloud systems before transformation can take place.
Understand your risks
Digitalising your business ultimately introduces new risks. For example, new digital channels can broaden your attack service, while poorly configured cloud-based infrastructure can pose easy targets for cyber attackers. There’s also risks from the internet of Things (IoT) which increases sensitive data proliferation (and by association, vulnerabilities), as well as authentication and access risks posed by remote working and connected supply chains. Before embarking on a transformation plan, you need to understand the security implications of any changes.
Assume zero-trust
In order to ensure that security is front of mind in your transformation you need to adopt a philosophy of a zero trust, where no individual or device is trusted. This involves verification by authenticating and authorising based on all available data points, utilising just-in-time and just-enough-access to limit user access and using analytics to drive threat detection. Not only does this help businesses to be prepared for cyber threats, but also articulates the value of security transformation to other departments.
Embed security from the outset
It can be tempting to simply keep investing in a growing number of security technology tools as and when your transformation takes place. However, all too often there is little integration, overlap and there are gaps in the coverage these tools offer. And while a well-configured set of security tools can provide coverage, many drive threat alerts that are false positives or benign positives, leading to fatigue and alert blindness. Instead, ensuring security is a critical part of the initial design of your transformation strategy.
Use security intelligence to your advantage
Move away from a focus on prevention to response and make security intrinsic throughout the business by implementing proactive measures such as Managed Detection and Response (MDR). By combining human analysis, artificial intelligence and automation to rapidly detect, analyse, investigate and actively respond to threats, MDR can encourage alignment of security transformation with digital transformation.
Cyber Technology Security Protection Monitoring
An adaptive and customisable security model, MDR can be deployed rapidly and cost-effectively as a fully outsourced service or via a hybrid SOC. It helps develop a reference security architecture that enables you to safeguard on-premise and legacy systems, cloud-based infrastructure applications and SaaS solutions, whilst also protecting and responding to new security and user identity threats as well as reducing cyber risk and the dwell time of breaches.
Engage third party support
Finally, don’t neglect to seek help from outside your organisation. By engaging a security architect early on in your project lifecycle, you can benefit from robust and detailed analysis and expertise to ensure the correct decisions are made, tracked and traced from beginning to end. They can also help you understand the interdependencies across your IT estate, identify risks and suggest best practice, as well as legal and regulatory obligations to ensure you continue to be able to withstand a range of cyber attacks throughout your transformation.
Reaping the rewards of cyber security transformation
Every business is on a digital transformation journey, regardless of size or objectives. However, as organisations transform, so do technology and cyber threats. Those that fail to adopt a more proactive and efficient system for mitigating risks and handling, responding, detecting and learning from cyber security attacks will find themselves falling behind and the security function unable to keep up.
Ultimately, cyber and digital security should be thought of as inseparable – and those that can plan and integrate both into their transformation projects from the very beginning will be in the strongest position to succeed and future-proof their business.
By implementing a robust cyber security transformation process and proactive security measures, such as MDR that can support secure digital transformation, you can reap the benefits of a stronger, structured system for managing, isolating and reducing threats and continue to pivot, transition and serve in the new digital economy without leaving security on the side-lines.
Bridewell Consulting
Bridewell Consulting is a specialist cyber security and data privacy consultancy. NCSC Certified and CREST accredited, it provides reliable, high-quality security and risk consulting services; helping its customers protect not just their data, but their reputation, customer trust and bottom line. Providing four core service areas: cyber security, data privacy, penetration testing/red team assessments and managed security services, Bridewell’s expert team of professionals possess specialist industry experience and proven capabilities. They can deliver effective cyber security and data privacy services across financial services, pharmaceutical, manufacturing, technology, retail, media, government, aviation and 24×7 critical services. As a vendor agnostic business, Bridewell is able to effectively and honestly engage with business executives and provide advice, guidance and services in a way that is most appropriate for each organisation, ensuring that proposed solutions are aligned with its clients’ strategy, business objectives and the wider IT architecture.
Learn more about emerging trends across the tech panorama in the latest issue of Interface
Going above and beyond to ensure emissions and offsetting the carbon we unavoidably emit as part of daily operations…
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Climate change rarely ceases to be out of the news. Whether it’s unusual weather, a rise in sea levels, or a different angle – the common theme is an increasing danger to humans and wildlife.
Thankfully, a strategy is now in place to reverse the effects of climate change and restore harmony to the planet. Back in June 2019, the UK government became the first country to sign their ‘Net Zero’ target into law – marking it as the first major economy to legislate for net zero emissions. Since then, other governments have followed suit, introducing their own laws and policy changes to help reduce the amount of carbon we emit.
These changes have had a huge impact on the way businesses work, inspiring many to introduce new ways of reducing their carbon footprint. Here, we look at those businesses that are going above and beyond to ensure their emissions are kept as low as possible or are offsetting the carbon they unavoidably emit as part of their daily operations.
Automotive – BMW
Regularly named as the world’s most sustainable car manufacturer, BMW has gained a reputation for its creativity and innovation in terms of reducing carbon emissions. The company’s long list of green credentials speaks for itself – for example, from 2009 to 2019 BMW has been able to reduce its delivery fleet emissions by over 40%. The company has also invested heavily in electric technology, turning to more renewable fuels to reduce carbon emissions even further. As it stands, BMW is currently on track to ensure that a quarter of all the vehicles it sells will be electrified by 2021, with a third in 2025 and half of all vehicles by the year 2030.
Aviation – EasyJet
Airlines are a significant contributor to carbon emissions globally. In fact, it’s estimated that the flights we catch account for some 12% of all transport emissions annually. Yet there are airlines that are making significant efforts to try and reduce this figure – one of which is EasyJet. In a recent report, EasyJet ranked top of the list of airlines trying to cut carbon emissions and tackle climate change and has since become the first airline to operate net zero flights across its whole network.
This has been possible through carbon offsetting initiatives which help to offset the emissions the airline uses during flights. It’s estimated that the company will spend around £25million each year carbon offsetting, lowering their impact on the environment and positioning themselves as market leaders in reducing CO2.
Fast food restaurants – McDonald’s
As one of the most iconic restaurants in the world, McDonald’s are firmly under the microscope when it comes to taking sustainable measures. Luckily, the company is making considerable efforts to reduce its impact on the environment wherever possible. With around 36,000 restaurants located in over 100 countries worldwide, McDonald’s has now began switching to energy efficient appliances to help cut energy waste by around 25%. It also aims to source all its packaging from recycled materials by 2025.
Off-grid energy – Flogas
As one of UK’s leading off-grid energy suppliers who help companies offset carbon emissions, Flogas has quickly become a market leader in the fight against climate change. In its ‘2040 Vision’ manifesto, the company has laid out plans on how it intends to the support the government’s carbon emissions targets by supplying its customers with 100% renewable energy solutions by 2040. As well as aiding its customers, the company has also undertaken several landmark steps in its own carbon reduction strategy such as promising to offset all Level 1 and Level 2 CO2 emissions for 2019 and became one of the first 0ff-grid gas suppliers to add Bio LNG powered delivery vehicles to its fleet. Since then, Flogas has also launched its Carbon Offsetting Initiative for both its commercial and consumer customers.
Manufacturing – Siemens
Manufacturing often requires energy intensive processes that create high levels of carbon emissions. However, this didn’t stop electronics manufacturer, Siemens, from becoming the first global company to commit to carbon neutrality by 2030 through using renewable energy at its factories. It’s also set out sustainability goals within its ‘Serve the Environment’ programme which details how it intends to create zero waste. As it stands, zero per cent of its waste has been sent to landfill from its factory in Newcastle and the business currently boasts a 92% recycle rate overall.
Software – Google
With a reputation for creating innovative software, it comes as no surprise that Google is one of the IT giants leading the way in terms of sustainability. As well as reducing its carbon footprint through company-wide efficiency improvements, Google also uses on-site solar power as a renewable fuel supply. The company then uses carbon offsetting to bring its remaining footprint to zero and goes to great lengths to ensure that the projects it supports help provide long-term global benefits.
Thomas Bradley is a copywriter for Flogas, with over seven years’ communications and copywriting experience. He has extensive experience within the energy, construction, financial services sector, and auto industries.
Interface Magazine talks to Vladimir Arshinov, IT Director at steel producer SIJ Group regarding the company’s massive digital transformation
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Going into 2017, SIJ Group (Slovenian Steel Group) – Slovenia’s biggest steel producer and one of the largest manufacturers of stainless and special steels in Europe had typical IT structure with semi-independent IT departments on each plant. And like many modern enterprises, SIJ was at work drafting a strategy to transform its operations, systems and processes into a more unified structure in a bid to improve productivity, safety and the all-important bottom line.
Vladimir Arshinov is SIJ’s IT
Director and his initial focus in 2017 was trained on the digital
transformation of SIJ’s IT department to a more transparent organization with a
clear workflow. Previously, IT was a department of innovation with each individual
plant having its own independent function, none of which connected with each
other, often across varying geographies. “This meant that lots of efforts were wasted
solving the same issues with different solutions,” Arshinov reveals.
At the end of 2017, SIJ
established a Project Management Office. PMBOK was selected as a master
methodology and the Head of PMO received PMP certification and developed
internal regulation documents, rules and methodology. After finalizing the
initial establishment phase, hiring project managers and the organization of
the operational work, SIJ came to the conclusion that to raise the scope and
complexity of the projects program, they needed a tool. The MS Project
Management Server was duly selected and implemented allowing SIJ to simplify
observation of the progress of projects and control, while ultimately reducing
duration. Project team meetings were almost eliminated, and the distribution,
control and execution of project tasks, were assigned to the project team
members who managed and controlled projects including budget consumption. Each
project member would then be measured for effectiveness.
Turning the IT department
into a leaner function was a massive first step for SIJ as it needed a firm
foundation upon which all future innovation could sit. And so, the next step in
SIJ’s internal IT transformation was aimed at the most sensitive and critical
area: software development. As with many metallurgical companies SIJ had a bulk
of different IT systems, which were supplied or developed in the past and had
to be either permanently supported, or, due to the business requirements,
changed. One concern with the legacy system was the reliance on locally based
productive software developer engineers developing new solutions and then,
after, supporting them, resulting in a massive drop in development speed, as
development and the subsequent support increased. This situation was causing
overloading, burnout and frustration, triggering a desire to change something;
sometimes resulting in employer change. However, SIJ IT considers people as its
major asset and were determined to break the vicious circle of “one system
– one person – forever”.
“What we did from an organizational point of view was to unify all geographically distributed developers from 4 different companies into the several virtual groups in each department,” Arshinov explains. “Each group has a Team Leader role, who assigns tasks to the group members and controls the execution of each individual task.”
Development
at SIJ is now organised according to an agile approach using scrum boards and
Microsoft Project Server to control all the time sheets of the people involved
in the projects, plus their schedules and budgets. SIJ uses
Microsoft Azure DevOps Server for unified storage of inter-company source code
and Change Request Scrum board monitoring and control. Process and technical
solutions now allow SIJ to involve external software development partners into
the development process while controlling their activities, deliverables and
costs. Developers can now use the Azure DevOps Server
with the scrum board and are now able to register change requests in their
system by themselves, where they see the progress of all individual change
requests coming through the process with the integration of the IT Director
informing the exchange and updating the status of the task development.
In October 2019 SIJ revamped
and migrated its Corporate Business Intelligence system to a new MicroStategy
platform. The project took six months and provided SIJ with an extensive
corporate Business Intelligence system with more than 180 different dashboards
covering production, finance, sales, procurement, HR, Legal and investment
functional areas. The overwhelming majority of the data now uploads
automatically and the business intelligence tool has
created a unified reporting system across the group utilizing the same source
of data in order to integrate it. “There was huge involvement of the business
customers with Oracle BI and this year, we moved to this new platform,”
Arshinov explains. “The front end of the system was changed (from Oracle BI) to
MicroStrategy for usability and a unified interface. Now, SIJ has a system that
looks the same no matter the device it’s accessed from. This project allows us
to organize and develop the team that tests the trial usage and develops the
processes of the PMO (Project Management Office) inside the IT function.”
The BI System contains the
entire spectrum of corporate data and allows SIJ to move quickly and
transparently when taking a management decision, while reducing the number of
mistakes, misunderstandings and time-consuming meetings.
The next system to be unified across the group was the Salesforce CRM system, which is now fully integrated. Then, an Oracle supplier portal followed, which opened the possibility of organizing tenders, thus massively simplifying the purchasing process. Oracle Innovation Management is another successful implementation, which, although a relatively small project, has had a big influence on the business transformation and innovation through increased flexibility. “It is also used to motivate people to suggest improvements and new innovative ideas,” he says.
So,
what have been the major successes, according to Arshinov, following the
ongoing digital transformation at SIJ? “The main difference between now and
then was that each individual company was living alone, and I see now that the
IT function in this case is unifying the people and allowing them to speak in a
single language. It doesn’t matter if it’s a steel center or a big plant,” he
explains. Costs have been dramatically reduced too, outsourcing being a prime
example. In 2016, SIJ was spending more than 70%
annual budget for operational external services.
For 2020, that part of budget reduced to 40%. Meanwhile, the capital investments part of the
budget has grown from 4% in 2016 to 56% in 2020.
The
implementation of a Supply Chain Planning system (from Quintiq) incorporating
the Oracle Business Suite, has improved the delivery, safety and performance of
SIJ’s plants. “We improved Delivery Performance OTIFF (on time and in full) of
a stainless steel plant by 12.8% in six months,” he enthuses. “And we shortened
the production cycle by 15,4% from ordering to shipping, which is a brilliant
result within six months of going live.”
In
SIJ Matal Ravne has replaced the melt shop technology system and entire plant
manufacturing execution system to replace the obsolete legacy system – which
had zero planning functionality – with PSI Metals. “First of all, we’re increasing the level of understanding
and the knowledge of the internal IT team, while dramatically decreasing
project cost by involving internal specialists into the supplier team. That
allows us to save several hundred thousand Euros of project budget and it’s a
win-win situation for the supplier as well. First of all, the supplier is
receiving our team, which knows the production and the limitations and has
extensive inside knowledge. At the end of the day, the commercial value, in
this case, is the cheaper price. Cheaper than anybody else is able to receive.”
Another
and no less important project for Sij Metal Ravne is the joint development work
with Comtrade Laboratory Information Management System (LIMS). Laboratories in
metallurgy companies are complicated and highly demanding environments with
unique processes required for quality control of all products and this solution
covers and improves core laboratory processes and will be highly integrated
with the PSI manufacturing execution system from one side and Oracle ERP on the
other.
Through this massive digital transformation, SIJ has also managed to increase quality control through sophisticated AI, which has massively impacted its operations. The acquisition of scrap metal, a major influence on SIJ’s bottom line, can now be influenced through advanced detection systems that can detect impurities, thus representing huge savings when it comes to procurement. “The conservative saving is €1.4m,” he says.
The
digital transformation at SIJ is touching every aspect of the company’s growth and
is certainly an ongoing journey rather than a destination. “We are not an IT
company, that’s understood,” Arshinov says. “But we are supporting services
inside the business, and of course our main concern will always be supporting
the production of steel. But we’re not there yet.”
Leveraging Radius Networks location technology for curbside pickup, in-store order delivery, and payments.
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Technology has and always will be used to solve problems. At the very basic level, technology is developed and used to make things simpler. Just look at our day to day lives and the way that technology has, for the most part, made our experiences simpler and this has changed the way we as consumers engage with retailers and restaurateurs. We now expect and outright demand that the businesses we enter and purchase food and items from offer the same level of seamlessness that we experience in our own homes. The interesting thing however, is that this isn’t necessarily a new challenge for restaurants and retail stores; these businesses have been looking to enable the most seamless and effective customer service since the very beginning. The only real thing that’s changed is the tools that they have at their disposal.
“At the end of the day, I think this goes for business philosophy in general, you really need to understand the problems that your customers have, and then solve them,” explains Marc Wallace, CEO and Cofounder of Radius Networks, a location technology service provider. “In our case, customers are businesses, such as restaurants, grocery stores, retailers or casinos; so we are targeting very specific problems. In most cases, those problems are taking wasted time out of the equation.”
Picture the traditional, and maybe even stereotypical, restaurant environment, where a food order is ready to go to the table and the service staff has to locate and identify the corresponding table to that order. In some instances, more than most, they may even walk throughout the entire restaurant before arriving at the right table with the right customer. Through wireless-enabled location technology, Radius Networks has transformed the customer experience by allowing businesses to track customers, improve profit margins and ultimately increase customer retention.
Customers have, and will always, vote with their feet, and in order to retain those customers, businesses need to be able to remove the pain points. As Wallace noted, wasted time is one of the single biggest pain points in customer service. Radius Networks offers location-based curbside pickup, in-store and table service solutions, as well as mobile payment technology to remove not only the one pain point, but multiple pain points. “We’re addressing other key problems, such as payments. When you dine-in at a restaurant and are in a hurry to leave, trying to get your server’s attention to pay for your bill can be frustrating for the customer. It leaves a bad taste in their mouth at the end of their dining experience,” says Wallace.
“We’ve developed solutions for making payments remotely without contacting the server. The server is notified when the bill is paid, and they can focus their attention on real problems that other customers have instead of shuttling credit cards back and forth.”
At the time of writing, the world has been gripped by the COVID-19 pandemic, a truly unprecedented event that has completely devastated lives and economies all over the world. It has also completely ripped up the rulebook when it comes to food and retail, with lockdown restrictions forcing businesses to either close down entirely, or pivot to delivery services. Radius Networks’ FlyBuy curbside pickup solution was actually launched over 12 months ago, but it has fast become a key technology offering that is solving an unforeseen problem. By automating the curbside delivery service for customers, FlyBuy provides a turnkey, end-to-end solution that uses the customer’s location for a faster, easier order pickup experience. “There was already a pre-existing return on investment (ROI) with FlyBuy because we were reducing the wait times for customers when ordering for pickup, which results in more frequent visits” says Wallace. “Throughout this pandemic, curbside delivery has become the only channel that people can do, so the importance of it has risen dramatically. It was once within a business’s top ten things it needed to consider, and has now risen to the very top of their to-do list.”
Radius Networks is currently offering a free version of both its FlyBuy curbside and buy-online-pick-up-in-store (BOPIS) software for restaurants, retailers, and non-profits during the COVID-19 crisis.
By its very definition, location tracking technology appears to be very intrusive. It is tracking locations and using that data to inform decision making, after all, and naturally that can cause a little fear and a hesitation. Wallace acknowledges these concerns and understands them wholeheartedly. “We had a decision to make early on in the company whether we were going to harvest data and use it for marketing purposes or whether we were going to be a privacy-centric company and focus on providing a solution,” he says. “We chose to be a privacy-centric company, mostly because all of us as individuals wanted that for ourselves.”
“When it comes to us as a location company, are very transparent with our customers and our businesses, so that they can be transparent with their consumer customers about what we’re doing with their location data, what we’re using it for, and how long we’re keeping it.”
This transparency is built into the very DNA of the company. FlyBuy will only ever use the location data to alert restaurant/retail staff that a customer is on the way and onsite to pick up their order, and only after the customer has opted-in to sharing that information. After a period of time has passed, they will then delete that data entirely. Its policy dictates that it does not, and will never, share that data with any third party, giving customers peace of mind that their data is safe and used only as agreed when they opt-in. Wallace believes that, while the reluctance and fear is understandable, consumers have access to services’ policies and can ‘do some homework’ in order to allay them. “I think, given the amount of options we are given today, customers can no longer just assume every location company is tracking or doing something devious with their information. They need to be aware when they approve location usage and when they don’t,” he says. “If they can be sure that sharing their location brings value to them, whether it be to have a car service come to their exact location, or their groceries meet them at their car immediately upon arriving in the pickup zone, they will happily share their location. Once they have established a level of trust in the people that are requesting location permissions, and see the benefits it brings to their lives, there is no problem.”
Radius Networks was founded in 2011, and for the best part of a decade, it has grown from strength to strength as a business, working with the likes of McDonald’s, Five Guys, and Coca-Cola, as well as being recognized in the INC 500, the Deloitte Fast 500, and the CIO Magazine’s Most Promising Digital Experience Solution Provider. But none of these successes would have been made possible, without a solid and sound foundation within the business. “I’ve been told by people ‘wow you guys got really lucky.’ Luck had absolutely nothing to do with it. Our mission is to solve problems for businesses, and right now businesses need our help more than ever. There were a lot of really difficult times over the years where we worked hard and earned the right to stay in the game, and we are once-again earning it right now,” says Wallace.
“Take FlyBuy as an example. I’ve been asked as to whether I thought this piece of technology that we developed over the last few years would ever be as important as it is right now. Yes. Yes I did, and so did everyone else on our team, and that’s key to our success as a company. Every single person at Radius Networks is engaged and believes in what we do.”
In these times of crisis, the spotlight has shifted significantly onto those business fundamentals and Wallace is extremely proud of the business he has built and the people within it. “The business principles that we’ve been practicing over the last few years have paid off. We are a strong company with sound fundamentals and sound financials. We haven’t over extended ourselves, either from an investment perspective or from an expenses perspective and that’s paying off for us now,” he says.
“It is tough in the current environment to point to positives, because you almost feel ashamed to do so. I think we’ve done a lot as a company to help others; we’ve given our product away for free to hundreds of small businesses, thousands of locations, with no obligation, and it’s a testament to the work we have done to get to this point. A lot of companies are doing a lot of good work to help each other right now and they can do so because they are built on solid foundations.”
Those foundations start from the very top. Wallace is a key advocate in communication. Much like Radius Networks communicates in an open and transparent way with its customers, the same rules apply from within. He admits that the pandemic has, ironically, made that communication better in some aspects, but it has always been a key part of what makes Radius Networks tick. “We’re talking to our customers all the time. My team is the best team in the world. They’re working in overdrive right now, communicating at such a high level, and listening to customer needs, because their needs have changed dramatically,” he says.
“As the CEO, I try to have frequent hands-on-deck tag-ups with everybody to give them an update and try to be as transparent as possible about the status of the business and what’s happening. I do this so they can feel comfortable that they have a job today, and they’ll have a job tomorrow. We work together to come up with our team goals, and stay aligned and upfront about everything that may come up along the way.”
Listening to the customer is key. That much is no secret. But when it comes to technology, listening to customers is absolutely essential when ensuring that what you’re offering is what the customers need and what they want. Wallace’s role as the CEO is not to sit at the top of the business and leave it to everyone else. He is very much active and engaged at every level to ensure that everything Radius Networks is doing is driven by the customer. Wallace is proud of the culture within his business and often finds himself sitting on a call with a major customer and beaming at how well his team listens and understands the customer’s needs and how Radius can successfully address them. “I’m so proud that we, as a team, have a culture that takes so much pride in their work,” he says. “Our people have always been solid employees, pre pandemic, but they have become absolute rockstars today.”
The world as we know it has changed forever and we cannot begin to predict what this new world will look like post pandemic. One thing is for certain, communication, and the way in which businesses engage with their customers, will never be the same again. Radius Networks has enjoyed success after success over the past ten years, and as we all experience great uncertainty, the goal for Wallace is to continue providing valuable location technology for many years to come. The key to succeeding, regardless of such uncertainty, remains the same for Wallace and his team. “Persistence,” he says. “It’s about persisting through the bad times, just like the good times, and trusting your business fundamentals and experience. Being transparent with employees and having a good team around you is key.”
Supermarkets share staff and warehouses to combat stockpiling
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Relaxation of regulations allows supermarkets to share staff and warehouses to combat stockpiling, but data access holds the key to preventing future shortages.
Britain’s supermarkets are no longer in a state of competition, but one of co-operation. The government has announced a relaxation of trading laws and competition regulations, in an attempt to allow supermarkets to collaborate and share resources to ensure that the public has access to essential food and goods amidst the impact of the Coronavirus outbreak in the UK.
Since Friday, supermarkets have been allowed to share distribution depots, delivery transportation, retail workers, and even data access, to give Britain’s grocers the most ammunition possible to combat shortages during a time of wildly unpredictable consumer demand. The government is also temporarily lifting the plastic bag tax for online deliveries, in an effort to prevent cross-contamination from delivery crates.
This unprecedented move, which sees typically competitive and battling retailers share access to data and resources, represents the value that technology and data holds in today’s retail landscape. A recent study by retail tech company Ubamarket showed that over half (52%) of UK shoppers are happy to offer their data to retailers provided they can save money – this suggests that if supermarkets are able to use tech solutions to connect with customers, for example through mobile apps, it will provide them with unparalleled access to data on consumer behaviour. This in turn will ultimately allow tech-equipped supermarkets to run their stores more efficiently and better negotiate unpredictable periods such as the one currently faced.
Will Broome, Founder and CEO of Ubamarket, comments on the relaxation of regulation between supermarkets and offers insight into how retail tech can help retailers to effectively negotiate future crises:
“The competition regulations in place in our retail landscape are vital, as they push companies to innovate and offer the very best service to customers. However, despite the havoc that is being caused by the outbreak of the Coronavirus, I for one am very interested to see how supermarkets and grocers across the country will be able to come together, collaborate and share their market insights and resources for the greater good, now that these regulations have been relaxed.
One of the key challenges facing retailers at this moment in time is to mitigate the drastic increase in consumer demand for certain goods and contend with disruption in their supply chains, and it is clear that many supermarkets are struggling to distribute essential goods whilst ensuring that their remaining stock is not unnecessarily depleted.
The implementation of retail technology is one way that Britain’s retailers could safeguard themselves against future cases of fluctuating demand and irregular consumer behaviour. With the help of retail-tech, supermarkets and stores can access far more in-depth and accurate consumer data, helping them to assess their behaviour, manage stock more efficiently and effectively, whilst being able to effectively communicate directly to the consumer base. By effectively using retail technology, retailers will be able to better prepare and deal with unpredictable consumer behaviour and spikes in demand, preventing such a drastic loss of stock which we see today.”
When Malta-based construction and property enterprise Vassallo Group embarked on a company-wide digital transformation, it looked to CIO Carlo Aquilina…
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When Malta-based construction and property enterprise Vassallo Group embarked on a company-wide digital transformation, it looked to CIO Carlo Aquilina to build the entire infrastructure, operations and innovations at the group…
Walk through the streets of the
beautiful island of Malta and you will not be able to escape the work of the
Vassallo Group. Property, hospitality, education and healthcare, the Maltese
construction and property company completely reshaped Malta following the
devastation caused by the Second World War. Indeed, Vassallo Group embarked on
a mission to ‘rebuild the nation’ to its former glory and beyond.
Building on its strengths, the Group carries a legacy that is over 70 years old, and over the years has diversified its operations that have brought about expansion and investment. Today, Vassallo Group, stands at the forefront of several different sectors in the local market that include property and construction, furniture and interiors, elderly and disability care, catering, hospitality, architecture and education. The Vassallo Group is a large, complex enterprise and represents a unique challenge to its IT function, which provides technological solutions and support to all of the companies and their users.
Vassallo Group talks to Interface Magazine
Carlo Aquilina was approached to take on the
role of CIO at Vassallo in 2015, having spent a while building up an IT team at
a manufacturing enterprise. “When I started in manufacturing, IT needed lots of
work. We started from scratch. We built up the whole IT department and the
whole team. When Vassallo approached me, they offered me that challenge again
as they really lacked IT. It was a real challenge, but I built my team and we
started on what needed to be done.”
Vassallo Group previously had a shareholding in
an IT company and this sister company was providing IT, but the level of
support was not sufficient for their local clients, thus Aquilina was asked to
build the IT function that would serve the 1,900-plus employees and its
extensive client base. “When I joined, I was tasked with the project: to start
from scratch. I gave the board of directors a number of options. Should we go
on premise, should we go with another hosting company, should we go hybrid,
should we go cloud? The main ambition was very simple and I was given six
months to come up with a solution where we gave our clients, our clients,
meaning our users basically, a brand new environment with zero downtime. It was
all firefighting in that first year.”
Vassallo went 100% cloud with Microsoft Azure, which Aquilina believed to be the best short-term, and long-term solution. “We’re a Maltese company. We’re not an IT focused company. IT is here to provide service to the business. Our business is not IT. We’re not a gaming company. All of our products are Microsoft, and so it was an obvious choice to move to Azure.” Vassallo agreed to go 100% to the cloud, having drawn a blank against the large capital expenditure associated with on-premise. “With cloud, you don’t invest in anything and everything is top of the range. Of course, it also helps to be paying operational costs and not capital costs. That was the way forward and then they (the board) embraced it. There was a number of partners who approached us to do this, to help us with this migration. I chose CyberSift, which was a start-up, actually.” An advantage to working with a start-up is that they’re not encumbered by a large kind backend and can move audaciously and quickly and this was certainly an appeal to Aquilina and his team. “I knew one of the technicians; a brilliant engineer and that helped. Plus, the price we were given was also from a start-up perspective.”
Vassallo Group. A Maltese institution
CyberSift viewed the chance to work with
Vassallo with similar relish and the then start-up provided a specific engineer
to be onsite with the IT team at Vassallo for the full duration of the
migration. “Whatever I was asking, I was getting,” Aquilina explains. “‘Okay,
we’ll do it for you, but you’ll have to promote us, after.’ Now I’m promoting
them. So, we had engineers working for us and I didn’t need to grow my team. In
fact, we’re a very small team.”
The key thing Aquilina and his team built in
that crucial first year was ‘trust’. “I had the trust of the board of directors
because every time they asked me something, I satisfied their request. So,
there was trust. At the end of the day, it’s a family-owned company. Trust is
very important.”
Aquilina and his team were given six months to
deliver the project and took 2-3 three months to design and implement the
infrastructure. The following three months, they contacted suppliers, before
moving the software. “If it’s on premise or on cloud, there was remote access.
It was teamwork, everyone pulling the same rope. Whenever one of the suppliers
told us, ‘Listen, we’re not available this week. Let’s do it next week. We’ll
slot in someone else. We’ll set meetings. We’ll explain what we are doing.’ All
they needed to know is that we were moving from server A to server B. They did
it for us because it was their software, their app, their solution.”
With any large-scale technological transformation there are challenges although Vassallo seemed to evade many of the pitfalls through great organisation. “I don’t think we had actually the biggest challenges because it was all planned out. We used to meet every day with the engineer who used to work for us and my team. It was a case of ‘What happened yesterday, what happened today, what is going to happen tomorrow and why? Are we on track? Yes. If not, why? What can we do?’ We worked late at night so that we could achieve it. It was all based on trust and teamwork. It was a case of open-heart surgery because the business wanted to work. The business kept on working even though we were doing open-heart surgery. We had that support from everyone. Everyone understood that this needed to be done. We had support from everyone, from all the partners, from Microsoft, everyone.”
Even though digital transformation involves technical infrastructure, software, servers and cloud, people are still integral to a successful outcome. “Yes, they are extremely important,” Aquilina explains. “There are the users, the customers and the IT team. We are a very small team and that really helped, because a huge team would require lots more organisation and more hand holding. It was me who was both sponsoring and managing the project. I had the lead engineer who was doing the actual work, remotely. They had an assistant administrator who was assisting. People are so important.”
Vassallo Group holds an annual internal awards
and in 2016, the IT department was awarded ‘Best Customer Focused Department’
even though it had been, in Aquilina’s terms, firefighting. We were there
constantly, anytime, any day of the week. The team and I were presented with
this trophy, which proved my theory that the company had move to something much
more stable.”
Now Vassallo Group is reaping the benefits of
this transformation. “IT-wise, we are working on a business intelligence
project. Now we have the infrastructure ready and a solid base or foundation, I
want to give something back to the business. We implemented an ERP solution,
which Finance, Logistics and Operations are using. I don’t want the directors
to go into board meetings with huge amount of papers. I want them to go in with
just a laptop. The data is live. We’ve already done that for one of the
companies and it’s working. You can connect to the TV to project live data.
That is business intelligence. We’re working on the other companies too. Now
that they know what they can get, everybody’s bombarding us with requests. Of
course, we’re taking our time and that is ongoing.”
From BI, Aquilina wants to harness the power of
AI in board meetings. “I want to give them the facility to project live data,
but I also want to give them the facility to change the data accordingly. They
will see the results with AI.” Recruitment could be a big beneficiary of these
initiatives too. “What if we employ 100 people? AI will work out the costs,
work out the benefits of employing that many people. Then you can take an
educated decision. ‘Should we employ 100 or 200? Let’s put in 200 more
employees. What’s the cost?’ AI will work out the costs as well as the
benefits. That’s all in progress. However, these are very sensitive tools that
we need to use and if the tool gives you the wrong information, then you will
make the wrong decision. I explained this to the board and they gave me the
time needed to do it properly. We have to be very meticulous. They understood
and told me, ‘Whenever you’re comfortable, we can start using.’ The CIO has to
have 100% trust from the board of directors, because if there’s no trust, they
keep on asking, ‘But why and how?’ That is the way forward.”
Providing technological infrastructure, new
software and cyber security for such a large company means that Aquilina’s
hands are certainly full. “We support about 1,900 employees and 500 users. I
can afford to have a relatively small team because we have a solid base, and a
solid infrastructure. I have a wonderful team. I recruited everyone from
outside the business. I didn’t find anyone here, so they all respect me. We’re
all friends at the end of the day, although I am their manager. We talk about
anything and I help when needed. So, there’s trust from them and the senior
management, which I believe is extremely important. It’s a wonderful place to
work.”
In early 2019, the Voluntary Health Insurance Scheme (VHIS) was introduced in Hong Kong by the Food and Health Bureau…
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In
early 2019, the Voluntary Health Insurance Scheme (VHIS) was introduced in Hong
Kong by the Food and Health Bureau to regulate indemnity hospital insurance
plans offered to individuals, with voluntary participation by insurance
companies and consumers. The VHIS was designed as a means of encouraging and
supporting customers to purchase private healthcare services and for Koh Yi
Mien, Managing Director Health and Employee Benefits at AXA Hong Kong, this
scheme represents a broader transformation of healthcare and insurance
services. “Currently, the demand on healthcare in Hong Kong in the public
sector is incredibly high with very long waiting times and waiting lists,” she
explains. “As a result, people just aren’t getting timely access to treatment.
The private sector in Hong Kong, which is world-class, has capacity. So, if we
can rebalance and shift some of the elective work from public to private, it
will free up more people to use the public service in a timely fashion.”
Yi
Mien also points to a global drive for greater transparency, accountability,
use of data and technology as well as promoting customer choice as key drivers
of change in the insurance space. “It’s no longer a case of simply providing
reimbursement to people when they need treatment,” she says. “It’s about being
the patient’s partner throughout their whole life so that when they need
healthcare, whenever and wherever they are, we are there to help and support
them in their times of need.”
The
modern-day insurance customer is very different from the customer of the past.
We live in times of greater access to information through the advent of social
media and the increasing influence of the Internet and this has resulted in
insurance customers being more knowledgeable about their conditions and asking
more questions of their doctors than ever before. As a result, the balance
between the customer and the healthcare provider is becoming more equitable.
“Customers and patients, as a result, are becoming more demanding,” says Yi
Mien. “Gone are the traditional ideas that doctor knows best. It’s not uncommon
for patients to see their doctor with a list of demands, while expecting to be
serviced.”
Running
parallel to becoming more knowledgeable and demanding is the use of smartphones
and how it has created a culture of service in an instant. When customers
purchase etiquettes or use banking services, they expect the ability to be able
to access and complete these transactions and services via their smartphone
devices. Fewer and fewer people are accessing physical bank branches and the
healthcare insurance sector, despite being still very traditional, is feeling
the effects of this instant demand. “Healthcare is a very traditional sector
sure, but asking patients or customers to book weeks in advance and telling
them they don’t really have any choice is becoming increasingly unacceptable
and so healthcare becomes a commodity,” says Mie Koh. “They, like any other
customer, vote with their feet and want 24/7 access to quality healthcare
without waiting directly from us as the insurer.”
The
informed customer and patient have also transformed the relationship between
customer and doctor. It is no longer a bilateral relationship and the entire
healthcare ecosystem works to provide services from prevention right through to
treatment. The result? Insurers like AXA work with customers before they are
sick and encourage them to maintain their health, but they also work with
clients during their illness and even afterwards AXA will continue to treat them
in their rehabilitation. “During their healthcare journey, customers want some
handholding in order to navigate the very complex healthcare system, to make
sure they get the right healthcare provider, doctor and hospitals that are best
for them in their time of need,” says Yi Mien. “This can only happen if we are
using digital so that it becomes more real time.”
AXA
has been embracing technology for a number of years to be able to serve and
effectively work with its customers. It achieves this by starting with the
definition of a product, because the product sets the rules. Yi Mien highlights
that the rules would often be how AXA would spell out the terms and conditions,
the provisions, but these rules also set the customer expectations. Throughout
late 2018 and 2019, AXA has invested in digital to enable its customers to buy
online, service online, claim online and check-up online. The company also
launched a servicing app called Emma, a ‘digital companion’ that enables even
faster service. Yi Mien describes this app as a true “health companion”. She is
also keen to highlight that the technology is only part of the story. AXA has
built a vast medical network with some of the leading hospitals and doctors and
customers simply having to log into their companion app to be able to access
this network at the touch of a button. “All they need to show is their digital
card, their e-card, and with the QR code, the provider just scans it. All of
the data is downloaded and all they need to do is sign, get their treatment,
and then when they discharge, just sign that they have received the treatment
and off they go,” she says. “The hospital will bill AXA directly so there’s no
out of pocket. The data is also transmitted to AXA which means that we have
more comprehensive and more reliable data.”
Comprehensive
and reliable data is crucial to the technology journey of AXA, but it is also
integral to the customer journey. With a customer’s entire electronic medical
records stored effectively and securely, as Yi Mien notes, why would they go
anywhere else? The data that an insurer handles is often complex in nature, but
this data is processed through artificial intelligence, with AI being used to
process claims more effectively and interpret the information to allow AXA to create
rules and algorithms to better serve its customers. AXA also utilises AI
through its companion app Emma. “Emma is our chatbot,” explains Yi Mien. “Emma
has been built up based on a multitude of Q&As that our customer services
team have recorded and collected over many months and years. As we continue to
build, and more people use Emma, then the quality of the responses she has in
her arsenal will improve.” In the first two months of operations, Emma recorded
an accuracy level of 50%. Yi Mien firmly believes that as more people engage
with Emma and as a result, the chatbot will evolve and become more of a
real-time navigator that can direct customers across the whole ecosystem.
In
the global discussion around AI, the topic of transparency is often a key point
of debate. With governments around the world shining a spotlight on exactly
what data is collected and how it is used, AXA ensures that it maintains an
open and transparent dialogue with its customers. As customers engage with Emma
and the companion app, they can at any time request their transcripts. Should
they choose to speak with a human adviser, all calls are recorded and again
they can access those recordings should they wish. Not only is this an example
of AXA complying with global governing laws, it also highlights that the
customer is at the very heart of every decision it makes and it maintains this
as it continues to implement new technologies. “If you look at banking as an
example, we all are so used to accessing our bank accounts at any time, be it
through our phones or online,” says Yi Mien. “If we want to speak to someone,
we can. If we want to go into a branch, we can. I believe this is the way to go
with insurance as well. We make it easy for our customers to contact us. We are
doing everything we can to allow that.”
“Healthcare
is quite personal, so we are doing what we can to allow customers to speak to
people, should they not wish to use our chatbot. These are very personal
journeys and digital is still in its early days, so we really have to provide
different avenues and channels for our customers to contact us.”
As
Yi Mien notes, AXA designs its customer journey by starting at the product and
going through all the way to treatment. The company makes every decision with
the customer’s perspective in mind. As a doctor by trade, Yi Mien sees that all
new products are designed by doctors because they understand how the patients
move throughout the whole healthcare ecosystem. When AXA designs new products,
it does not operate within a vacuum. It has a customer insight group, where
around 1,000 customers operate as a real-time focus group in which AXA can test
its products with. “When I think about future products, we will test with this
group of people and get feedback to see whether we are aligned with the current
customer need. So, it’s not just technology per se, but actually meets a
customer’s needs,” she says. “One other area to make sure that we are doing the
right thing, because technology also costs money, is to make sure that we are
very robust in what we do. AXA is unique in that we sell life insurance, health
insurance, employee benefits, and we also have P&C. So, being a multi-line
insurer, we have the opportunity of having one approach and cross-selling
across the business lines, which is a fantastic opportunity. We can only do
that through technology.”
Over
the course of her career, Yi Mien has been a champion of the transformative
effect of technology in becoming a greater enabler for healthcare and
healthcare insurance providers around the world. One area in particular that is
close to her heart is the mental health space. In Hong Kong, the waiting time
to see a psychologist is close to two years and if patients were to seek
private care, it is an expensive solution. “Look at a country like Hong Kong,
or Australia, they are so vast that there just aren’t enough practitioners to
cover the breadth of the geography. Digital is the solution,” she says.
“Digital enables people to seek, support and care at the time that is most convenient
for them.”
“In
the past two to three years, there has been a proliferation of digital tools.
Recent studies have shown that digital tools are as good as, if not better,
than in-person therapy because customers prefer to talk to a robot rather than
face-to-face because they feel that the robot is not judging them.”
Another
example that Yi Mien highlights is in the UK, where a VR program has been
developed by programmers that is therapy through gameification. The treatment
is consistent every time and because of its mobile platform, it is accessible.
“We can provide it where you work,” she says. “That’s just one example as to
how we can destigmatise mental health through technology.”
AXA
operates within a broad healthcare ecosystem, an ecosystem made up of partners,
providers and doctors and Yi Mien stresses that in the future of insurance, it
will be impossible for insurers to control the ecosystem. “I don’t foresee a
future where that happens,” she says. “Partnerships are incredibly important.
Things are moving so fast there’s no way we can catch up alone. We need to have
partners, collaborators, who are working together to ensure we are at the top
of our game and at the forefront of innovation.”
“Over the course of our lives, so many different
things can happen and so people will need better care and support. By having a
collection of data that represents our customer’s needs we are able to push or
suggest services that better meet those needs. In order for us to do that, we
need to have players collaborate in the ecosystem. It’s imperative.”
As
AXA continues this digital growth journey, the next few years will be defined
by improving the agility of the digital companion in order to improve the
interaction with customers. AXA will also be looking at developing a digital
marketplace in which customers can go shopping within an AXA owned digital
platform. For Yi Mien, though, the future is clear for AXA and in order to be
successful, she feels it’s down to one thing. “AXA has a clear digital strategy
for sure, where it will transform its digital system and build new IT
infrastructure to transform the customer experience,” she says. “But the
technology is only one part of the story.”
“Unless
we can transform the customer experience to deliver a service they truly value,
then technology doesn’t do anything. It’s important to recognise that
technology is enabling us to transform healthcare, to make it easier, faster,
and cheaper for people to receive care. That means in the long-term, sustainable
healthcare and health services, which fits into sustainable insurance.”
