Author

Paul O'Sullivan

Published

20 May 2025

Estimated Read time

6Mins

Paul O’Sullivan, Global Head of Banking & Lending at Aryza, on how Open Banking is reshaping the financial ecosystem

As Open Banking continues to gain momentum, it is poised to fundamentally reshape the financial ecosystem. Not only regarding how institutions operate but also in how individuals understand, manage, and trust their money. With secure data sharing at its core, Open Banking represents more than just a technological shift. It signals a transformation in the relationship between people and their finances.

This piece explores five key areas where Open Banking is set to make its mark in the years to come…

Transforming Society’s Relationship with Money

Open Banking has the opportunity to reshape society’s relationship with money by providing greater transparency and enabling a more comprehensive view of personal finances. This heightened visibility is made possible by securely sharing financial data with trusted third-party providers. And empowering individuals to monitor spending habits, track expenses, and compare financial products and services more easily.

Providing greater transparency and access to financial data will improve financial education for all by enabling a deeper analysis of trends across various activities. As a result, consumers can make more informed decisions. This can improve overall financial education and help to foster a healthier, more sustainable relationship with money.

Additionally, Open Banking paves the way for more personalised financial solutions, as institutions compete to offer tailored services that meet the unique needs of customers. This increased choice not only boosts consumer confidence in managing their finances but also catalyses innovation within the financial sector. Ultimately, the shift toward Open Banking is poised to create a more dynamic, customer-centric financial services landscape. Moreover, one that will significantly enhance how individuals and businesses manage their money.

The Convergence of Open Banking and AI

The data provided by Open Banking should work hand in hand with AI to offer consumers advice on managing their finances. Whether that means making changes to their habits or finding more affordable products, in turn transforming financial guidance and creating a more personalised and efficient financial ecosystem.

By enabling the secure sharing of consumer data, Open Banking provides the foundation for AI-driven solutions to analyse real-time information and offer tailored recommendations. This coule be suggesting improvements to spending habits or automating routine processes. Such AI-enabled tools will empower individuals to make more informed, data-driven decisions about their money.

This synergy will go beyond surface-level insights, delivering hyper-personalised services that address each customer’s unique financial needs and preferences. The resulting efficiencies, such as automated account management, transaction processing, and even customer support, free human resources to focus on more complex issues. Ultimately, this combination of Open Banking and AI promises to enhance the overall customer experience. It can provide actionable, real-time support that helps individuals navigate their financial journeys more confidently and effectively.

Evolving the Role of Traditional Banks

While it’s still early to say for certain, traditional banks could indeed evolve into more utility-like services in an Open Banking world. We’re already seeing indications of this shift, with more consumers increasingly switching their banking services and using multiple accounts. Open Banking is a disruptive force that fosters greater competition and choice, enabling consumers to pick and choose the financial solutions that best meet their needs.

To remain relevant, traditional banks are urged to embrace Open Banking rather than resist it. By securely leveraging customer data and collaborating with FinTechs and other third-party providers, they can create more specialised, value-added products and services. In doing so, banks can move beyond mere utility status. They can position themselves at the forefront of innovation while enhancing the overall customer experience in an increasingly competitive landscape.

Redefining Financial Trust and Identity

Open Banking is not only transforming technology infrastructure; it’s also redefining core principles such as trust, identity, and control. It will increase transparency by giving individuals a holistic view of their financial data. In turn, empowering them to track spending patterns, compare financial products, and make more informed decisions. Secondly, it enhances consumer control over personal data, as customers can grant or revoke access to trusted third-party providers. Therefore strengthening accountability and fostering greater confidence in the system.

Furthermore, digital identity solutions replace traditional verification processes, enabling expanded access to financial services. This will ensure more people can participate in the banking system with ease. Underpinning these developments are trust frameworks, which establish standardised measures for data sharing, allowing banks, FinTechs and other providers to collaborate while maintaining consistent protection for users.

A key emerging factor is the use of advanced cryptography and multi-factor authentication so that both individuals and financial institutions can operate confidently in a secure environment. This heightened focus on security and privacy can help mitigate concerns around data breaches and identity theft. Further strengthening consumer trust.

By introducing new layers of transparency, giving consumers control over their data, and leveraging digital identity and robust security measures, Open Banking shifts our collective understanding of financial trust and identity. It moves us toward a future where trust is shared among various stakeholders. Security is paramount and individuals play a more active role in shaping their financial journeys.

Harnessing Open Banking Data for Monetary Policy

While often discussed through the lens of consumer empowerment, Open Banking may also prove to be instrumental in supporting smarter economic decision-making at a national level. Financial data through open banking could play a significant role in creating new tools for monetary policy. Particularly as the global financial system becomes increasingly interconnected. By providing governments and regulators with real-time insights into consumer spending patterns and business creditworthiness, Open Banking allows for more precise and targeted policy interventions. This data-driven approach can enable policymakers to respond swiftly to economic shifts. They could tailor interest rates, liquidity measures, and other monetary policy tools to specific sectors or demographics.

Having access to comprehensive, standardised data can enhance the accuracy of economic forecasts and models. This leads to more informed decisions that can foster stability and growth in the economy. However, implementing these advanced tools requires robust data protection measures and regulatory frameworks to ensure the privacy and security of financial information. When managed responsibly, the fusion of Open Banking data and monetary policymaking promises to bolster both economic resilience and consumer trust.

Charting the Path Ahead for Financial Innovation

Open Banking is not just a new chapter in financial services, it’s a complete rewrite of how we engage with money, institutions, and technology. From personalised advice and AI integration to regulatory impact and redefined trust, the changes ahead are both profound and far-reaching. The next decade will be shaped by how institutions adapt, how consumers respond, and how effectively we harness data to deliver meaningful, secure, and transparent financial experiences.

  • Embedded Finance
  • Neobanking

Author

Dan Brightmore

Published

10 April 2025

Estimated Read time

2Mins

Ozone API launches industry-first tool that enables US banks to calculate the cost of building and maintaining their own open banking APIs 

Ozone API, the global leader in open banking technology, has launched an industry-first tool. It forecasts an accurate estimated cost for US banks planning on building their own API infrastructure. It comes in response to the recent Section 1033 rulemaking under the Dodd-Frank Act. This means that American consumers will have the right to access and share their financial data.  

API Build It Calculator

The “Build It Calculator” can estimate the cost to a US bank of building and maintaining its own API infrastructure. It does this by analysing data points including, but not limited to, the desired length of time for project completion, the financial institution’s hosting costs and the value of a bank’s deposits. This information is then fed into a formula built according to Ozone API’s extensive experience delivering open banking infrastructure globally.

Moreover, the final cost even includes the salaries of employees required to support the project. This is calculated in line with the proportion of their annual working hours that would be spent on the API build, implementation and maintenance. 
 
Having already been tested and validated by banks in the US, the tool helps financial institutions understand the complexity and cost involved in building APIs. Furthermore, it also reveals the hidden costs of maintenance, which can often be as much as half the cost of initial implementation every single year.  
 
Using the Build It Calculator, banks of all sizes can estimate both the up-front cost and maintenance costs of building their own open banking APIs in a single phone call with Ozone API. This brings significant clarity to initiatives that often reach eight-figure budgets. 

Open Banking with APIs

“Open banking technology brings huge benefits to financial institutions as well as businesses and consumers, but building API architectures does require significant investment. We are making this tool available to help banks understand the scale of the undertaking and effectively prepare to comply with Section 1033. It’s crucial that banks are armed with accurate data to help them make the best decision, whether that is to build their own infrastructure or work with partners that can offer off-the-shelf or bespoke solutions.”  

Eyal Sivan, General Manager, North America, Ozone API
 
The tool has been rolled out in the US already and is set to expand into new regions globally, including the UK, MENA, LATAM and APAC.   


About Ozone API

Ozone API empowers banks and financial institutions around the world to deliver high performing, standards-compliant open APIs.  
 
As open banking and open finance sweep the world, Ozone API helps banks and financial institutions to adapt and thrive in the new era of open data, by providing the technology to unlock the power of open finance globally.  
 
The UK-based FinTech is the leading standards-based open API platform, supporting all global standards and providing the tools and expertise to help banks and financial institutions comply with regulation and create real commercial value.  
 
With a founding team that led the development of the UK open banking standards, Ozone API continues to shape open finance globally helping regulators, banks and technology platforms to accelerate open finance. Learn more: https://ozoneapi.com/

  • Digital Payments
  • Neobanking

Author

Amber Thetford

Published

4 February 2025

Estimated Read time

4Mins

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

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.

  • Digital Payments

Author

Nell Walker

Published

14 November 2024

Estimated Read time

6Mins

There were many inspiring themes on peoples’ lips at DPW Amsterdam 2024, including collaboration. One of the major reasons procurement…

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.”

Author

Dan Brightmore

Published

13 November 2024

Estimated Read time

2Mins

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 

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.   

Ozone API is also supporting banks in the US market this year, following the US Government announcing new open banking legislation regulations under Section 1033 of the Dodd-Frank Act.  

  • Neobanking

Author

Luke Gall

Published

20 September 2024

Estimated Read time

5Mins

Luke Gall, Product & Engineering Director at Access PaySuite, part of the Access Group, on the open banking opportunity for FinTechs


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.

  • Neobanking

Author

Nell Walker

Published

28 August 2024

Estimated Read time

4Mins

We caught up with Shachi Rai Gupta from ORO Labs to discuss the importance of orchestration in procurement.

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.”