Author

Liselotte Munk

Published

22 May 2025

Estimated Read time

6Mins

Liselotte Munk, CEO at core insurance solution provider Fadata, on the benefits of InsurTech digitalisation

Unpredictable market shifts, weather crises, and increasingly digital-only policy holders are all putting demands on the insurance industry and their ability to deliver a modern, efficient service. Insurers recognise that they need to become more agile and digital. Time-to- market is crucial. What better way to tackle these challenges, than revitalising internal IT departments and empowering them to manage digital transformation?    

Insurance Going Digital

Insurance digitalisation has been ongoing longer than we have seen in other industries. Thanks to a shift in mindsets, new tech talent, and a wealth of emerging technologies, digital transformation is ramping up. Insurers reclaiming control of their IT strategy, infrastructure, and execution is fuelling the InsurTech surge. The decisive step to nurture and utilise internal IT skills to enhance digital capabilities is solving many pain points. The challenges associated with traditional external implementation are being overcome. Insurers are becoming empowered with agility, reduced infrastructure expenses, and future proofing. All of which is essential to ensuring competitiveness amid the fast-paced evolution of the insurance market.

Redefining IT’s Role in the Insurance Value Chain

The move to strategic internalisation for digital transformation is as much a strategic and cultural decision as a technical one. Working closely with underwriting, claims, marketing, and distribution to embed digital capabilities across the entire value chain, internal IT departments foster cross-functional collaboration, turning the IT function from a support function into a business enabler. No longer operational backwaters, internal IT departments are central to business strategy. This is why insurers are recognising the need to continually enhance their IT skills to secure future-proofed technology.

Insurance Chief Digital Officers (CDOs) are making strong business cases for high level in-house IT capabilities. They argue internalisation of digital transformation is essential for long term success. It ensures critical knowledge is kept within the business, processes are significantly more efficient, and that the cost savings are unquestionable. On top of that, it should be much easier for insurers to attract, recruit and maintain top tech talent when more engaging and strategic career paths are on offer. Ultimately, this also improves retention.

IT transformation is also changing the nature of vendor partnerships. Instead of traditional “implementation projects,” insurers are now “onboarding” platforms, and internal teams are taking charge of leading configuration and long-term evolution. Shifting focus from one-off rollouts to continuous collaboration, insurers are teaming up with external partners that provide scalable platforms and expert guidance.

IT and Vendor Marriage

Insurers are adept at building substantial internal IT organisations. The complexity and regulation-intensive nature of insurance demands deep integration between technology and business processes. The appointment of high-level roles like CDOs underscores just how imperatively strategic IT is to the industry.

At its core, the decision to internalise control of digital transformation stems from a need for greater influence over platforms that support local regulatory requirements, customer behaviour, and product innovation. The long-term partnership between insurer and core vendor flourishes when it fully incorporates an internal IT team. Insurers are turning to the core platform vendors such as Fadata, that come hand-in-hand with dedicated expert teams, promise collaboration, share KPIs, and deliver the granular understanding required to reflect insurance market-specific nuances. Outsourced executors are being phased out so that insurers can avoid inefficiencies and slow rollouts. These are among the intrinsic problems developed from reliance on a third party with a culture of locking out IT departments or building overly generic solutions that require excessive, often complicated and costly customisation.

Maximise Scalability, Minimise Customisation

Insurers increasingly realise that all important scalability and agility come from adhering closely to out-of-the-box solutions. The trend toward minimal customisation not only simplifies future upgrades but also accelerates implementation timelines. This positions internal teams to rapidly launch new products and respond to market changes without the delays of extensive code rewrites or vendor negotiations. In times of shifting regulatory compliance – DORA being a great example – a standardised system providing the ability to upgrade swiftly is a high priority. And a major driver for internal IT. Insurers need to feel confident that any updates in order to comply can be made fuss-free.

Fadata has already responded to this shift by supporting clients in regaining control of their technology environments. Rather than acting solely as an external implementation partner, Fadata is supporting its clients to create ‘centres of excellence’. These bolster an IT department’s understanding of its core solution, INSIS, to promote independence. The IT departments we work with are already able to seamlessly replicate product in new geographies, and up to 85% of out-of-the-box INSIS features are being copied with the click of a button. 

SaaS Pizzazz – The Digital Future of Insurance IT

The industry-wide shift to SaaS models shines a spotlight on the pivotal role IT plays in digitalisation and business strategy. With infrastructure responsibilities managed externally, internal IT resources can focus on strategic application of technology and drive insurance innovation from within. Inherently upgrade-friendly cloud-based solutions make this much simpler and more viable. These deliver ongoing automatic platform enhancements and maintenance without disruptive overhauls. Which also eliminates scope creep or unexpected integration issues, and helps to avoid IT resource bottlenecks.

Next Generation Digital Mindset

With focus being put on fulfilling the modern expectations of policy holders, which undoubtedly is driven first and foremost by speed and simplicity, insurers are shifting their mindset to a more customer-centric insurance business. Insurers are ready to embrace agile methodologies. These create the seamless digital journeys across mobile, web, and emerging channels that modern customers expect. To be digitally successful, insurers understand that a more hands-on strategy is key. And is why a natural understanding of modern technology is becoming increasingly relevant. IT departments are 100 percent best positioned to manage long-term digital strategy. This highlights the importance of nurturing a skilled IT team that can secure future-proofed technology.

The fast-paced, changeable insurance market calls for faster iteration and product launches with continuous deployment. Insurers are becoming much more open to SaaS platforms, APIs and ecosystems. They recognise that the partnerships which have typically been seen as a threat to internal teams, are conducive with accelerating transformation. These digital trends, which lead to the faster decision making and improved responsiveness that can define success, are challenging legacy processes and partnerships that slow innovation. Insurers looking for competitive advantage are also increasingly turning to data. Greater emphasis is being put on real-time data and analytics. Prioritising the creation of customer data platforms, automated insights, and AI-driven decision-making, all of which require digital backing. Ultimately, internalising IT offers insurers the flexibility, security, and agility they need to thrive in a competitive landscape. With trusted platforms and collaborative partners, insurance companies are becoming better positioned to shape their digital futures – on their own terms.

  • InsurTech

Author

Scott Zoldi

Published

25 March 2025

Estimated Read time

4Mins

Scott Zoldi, Chief Analytics Officer at FICO, explains why there should be no AI alone in decision making processes

Many AI models are black boxes and developed without proper consideration for interpretability, ethics, or safety of outputs. To establish trust, organisations should leverage Responsible AI. This defines standards of robust AI, explainable AI, ethical AI, and auditable AI. Under Responsible AI, developers define the conditions that lead to some transactions having less human oversight and others having more. But can we take people out of the decision-making loop entirely? To answer that question, let’s look at some developments in Responsible AI.

Trust in Developing AI Models

One best practice that organisations can adopt is maintaining a corporate AI model development standard. This dictates appropriate AI algorithms and processes to enable roles that keep people in the loop. This will often include the use of interpretable AI, allowing humans to review and understand what AI has learned for palatability, bias, ethical use and safety. Auditable AI will then codify the human-in-the-loop decisions and monitoring guidelines for operational use of the AI.

Responsible AI codifies all the essential human decisions that guide how AI will be built, used and progressed. This includes approving or declining the use of data, removing unethical relationships in data (i.e., illegal or unethical data proxies), and ensuring governance and regulation standards are met. Responsible AI leverages an immutable blockchain that dictates how to monitor the AI in operation. And the decision authority of human operators, which can include conditions where AI decisions are overruled, and operations move to a ‘humble AI model.’ AI Practitioners are keenly aware that even the highest performing AI models generate large number of false positives. So, every output needs to be treated with care and strategies defined to validate, counter, and support the AI.

A Responsible AI framework

There should be a well-defined process to overrule or reverse AI-driven decisions. If built in a Responsible AI framework, these decisions are codified into a crystal-clear set of operating AI blockchain frameworks well before the AI is in production. When there is a crisis you need clear preset guidance, not panicked decision making. This blockchain will define when humans can overrule the AI through alternate models, supporting data, or investigative processes. This AI operating framework is defined in coordination with the model developers, who understand the strengths and weaknesses of the AI. And when it may be operating in ways it wasn’t designed, ensuring there is no gap between development and operation. When auditable AI is employed, there are no nail-biting decisions in times of crisis. You can rely on a framework that pre-defines steps to make these human-driven decisions.

Companies that utilise Responsible AI frameworks enforce usage adherence by auditable AI, which is the operating manual and monitoring system. Embracing Responsible AI standards can help business units attain huge value. At the same time they can appropriately define the criteria where the businesses balance business risks and regulation. Domain experts/analysts will be given a defined span of control on how to use their domain knowledge and the auditable AI will monitor the system to alert and circumvent AI as appropriate.

Drawback prevention begins with transparency

To prevent major pull-back in AI today, we must go beyond aspirational and boastful claims to honest discussions of the risks of this technology. We must define how involved humans need to be. Companies need to empower their data science leadership to define what is high-risk AI, and how they are prepared or not to meet responsible/trustworthy AI. This comes back to governance and AI regulation. Companies must focus on developing a Responsible AI programme, and boost practices that may have atrophied during the GenAI hype cycle. 

They should start with a review of how AI regulation is developing, and whether they have the tools to appropriately address and pressure-test their AI applications. If they’re not prepared, they need to understand the business impacts of potentially having AI pulled from their repository of tools. And get prepared by defining AI development/operational corporate standards. 

Companies should then determine and classify business problems best suited for traditional AI vs. generative AI. Traditional AI can be constructed and constrained to meet regulation using the right algorithms to meet business objectives. Finally, companies will want to adopt a humble AI approach to have hot backups for their AI deployments. And to tier down to safer tech when auditable AI indicates AI decisioning is not trustworthy.

The vital role of the Data Scientist

Too many organisations are driving AI strategy through business owners or software engineers who often have limited to no knowledge of the specifics of AI algorithms’ mathematics and risks. Stringing together AI is easy. Building AI that is responsible and safe and properly operationalised with controls is a much harder exercise requiring standards, maturity and commitment to responsible AI. Data scientists can help businesses find the right paths to adopt the right types of AI for different business applications, regulatory compliances, and optimal consumer outcomes. In a nutshell: AI + human is the strongest solution. There should be no AI alone in decision-making.

  • Artificial Intelligence in FinTech
  • Blockchain

Author

Dan Brightmore

Published

6 March 2025

Estimated Read time

5Mins

Read in brochure format

Our maiden cover story follows the irresistible global rise of Revolut and the customer-focused growth agenda for the leading global…

Our maiden cover story follows the irresistible global rise of Revolut and the customer-focused growth agenda for the leading global financial technology company.

Read the launch issue of FinTech Strategy here

Revolut: All-in-one digital money management

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.”

Read the launch issue of FinTech Strategy here

Author

Dan Brightmore

Published

8 January 2025

Estimated Read time

4Mins

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

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.    

Marcin Glogowski, SVP Managing Director for Europe and UK CEO

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. 

Alan Carlisle, Chief Compliance Officer

  • Cybersecurity in FinTech
  • InsurTech

Author

Adam Zoucha

Published

13 December 2024

Estimated Read time

4Mins

Adam Zoucha, MD EMEA at FloQast, on how businesses will modernise financial processes in 2025

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.

  • Artificial Intelligence in FinTech
  • Digital Payments

Author

Dan Brightmore

Published

15 November 2024

Estimated Read time

2Mins

FinTech Connect shapes the future of financial services with the UK’s only full FinTech ecosystem event at London’s Excel December 4-5

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.

Book your place now!

Visit Fintech Connect to book your place at The Excel now.

For a 20% discount use the code: FS20

The Global FinTech Ecosystem. Connected.

  • Artificial Intelligence in FinTech
  • Neobanking

Author

Nell Walker

Published

14 November 2024

Estimated Read time

6Mins

When we’re talking about technology in procurement, the importance of partnership is a major component for success. No business is…

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.”

Author

Dan Brightmore

Published

1 November 2024

Estimated Read time

5Mins

Money20/20, operates the world’s leading fintech events in Europe, Asia and USA and is “the place where money does business”….

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.

  • Digital Payments
  • Neobanking

Author

Sejal Mehta, Andrew Rodgers & Randy Bean

Published

11 October 2024

Estimated Read time

5Mins

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

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.

  • Artificial Intelligence in FinTech
  • InsurTech

Author

Dan Brightmore

Published

3 October 2024

Estimated Read time

4Mins

Finch Capital report shows UK FinTech sector dominant across Europe

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.”

  • Digital Payments
  • Neobanking