Author

Ozge Celik

Published

20 November 2024

Estimated Read time

4Mins

Ozge Celik, Head of Product at Turkey’s largest FinTech Papara, on how personalisation is making everyday financial transactions more manageable and embedded into our lifestyles

With unlimited choice from a global marketplace, customer expectations are continuing to reach new heights. Undeniably, we are seeing financial services – being led by the FinTech sector – undergoing a seismic shift towards personalisation and catering to this new form of demand. Users are no longer content with generic services. Furthermore, they want tailored, hyper personalised experiences that reflect their individual needs and preferences. This is particularly true for their banking experiences. Yet, many traditional banking institutions are struggling to keep up with these demands due to their legacy systems and traditional cookie-cutter approach. Whereas the FinTech industry, with its agile frameworks and state-of-the-art technologies, is demonstrating its capability to rapidly position solutions that cater to this demand.

The growing trend for personalisation

Personalisation in consumer services is not a novel concept, but its application within the financial sector is a relatively recent development. Despite its infancy, its impact on the industry is profound. Banking has always been a cornerstone of our daily lives, from withdrawing cash to transferring funds. As such, it is unsurprising that users increasingly view their financial services as an extension of their personal identity.

Over the past decade, we have seen the introduction of customisable physical bank cards, personalised digital tools on mobile banking apps and instant messaging services. Banks and fintechs are striving to meet users’ needs, reshaping the loyalty landscape that has traditionally favoured established banks. These institutions, with their often rigid and cumbersome systems, are being compelled to re-evaluate their user engagement strategies and the solutions they offer.

Leading the customisation charge

Startups and FinTechs are riding the crest of this wave of customisation. Traditional financial institutions frequently overestimate the costs associated with data collection and the development of meaningful personalised tools. FinTechs, on the other hand, harness their technological capabilities to sift through vast amounts of data, identifying individual preferences and behaviours. This insight enables them to better create personalised products and services that resonate with consumers on a deeper level. Offering such tailored experiences is not merely a competitive advantage; it is quickly becoming essential to attract and retain users.

The rise of the super app

The emergence of the super app epitomises this new paradigm. The inconvenience of managing multiple mobile banking apps is becoming a thing of the past as consumers increasingly favour a unified platform that addresses all their financial needs. This demand extends beyond financial services. The success of super apps like Alipay and WeChat Pay, which integrate services from ride-hailing to grocery shopping, illustrates how this model has become ingrained in everyday life. While the same level of adoption may not be universal due to various market factors, FinTechs are taking note and developing intuitive apps that combine financial and non-financial functions to deliver a seamless and efficient user experience.

FinTech’s personalisation extends to every facet of the financial journey. From customised budgeting tools and investment portfolios, to personalised insurance products and bespoke lending solutions, providers are redefining what it means to have a financial service that truly fits the individual.

The implications for personalisation in traditional banking

To stay relevant, banks must embrace digital transformation and consider partnerships with FinTechs or face the risk of further falling behind. Collaboration between established financial institutions and FinTech disruptors can yield the best of both worlds: the trust and scale of traditional banks combined with the innovation and agility of fintech.

As FinTechs continue to meet and exceed the hyper-personalised needs of consumers, they are establishing a new benchmark in the financial services industry. By making everyday financial transactions more manageable and integrated into our lifestyles, they are not merely responding to consumer demands but are also anticipating them. As this trend progresses, we can expect to witness further disruption, with fintechs at the helm, steering us towards a more personalised and accessible financial future for all.

About Papara

We are not a Bank; we are Papara, we are here for you.

We are a financial technology company that offers a new financial application experience. Keeping the user in mind against the traditional financial solutions, we strive to build the next generation financial super app. Our amazing community always suggest features and gives us constant feedback.

We integrate the most innovative technology to help our users control their money while being completely transparent.

In 2015,we started our services with the permission we received from the Banking Regulation and Supervision Agency to operate as an “Electronic Money Institution”.

Papara is the first non-bank to issue a Mastercard logo prepaid card in Turkey and currently a Mastercard, Visa, and Interbank Card Center member. In our seventh year of operation, we have acquired 21 million users and expanded our team to 1.000 happy people dedicated to creating the best financial experience.

Today, millions of our users choose Papara’s innovative products to make millions of transactions every month.

  • Neobanking

Author

Dan Brightmore

Published

19 September 2024

Estimated Read time

6Mins

FinTech Strategy spoke with Zak Lambert, Product Lead for Plaid in Europe, to find out more about the world-leading data network and payments platform

Plaid offers the world’s largest open finance platform. Plaid specialises in bank connectivity and provides a single API for customers to integrate with banks around the world. They have had innovative success stories working with companies like Western Union and MoneyBox. Plaid see opportunities around current trends such as account-to-account payments, variable recurring payments, and cash flow underwriting for businesses and consumers.

At Money20/20 Europe, FinTech Strategy spoke with Plaid’s Product Lead for Europe, Zak Lambert, to learn more…

Tell us about Plaid…

“I work in product management for Plaid in Europe. We’re the world’s largest open finance platform operating across 20 markets in Europe and North America. Back in 2019 when we first launched in Europe our bread and butter was bank connectivity. Integrating with over 10,000 banks through a single API. We still provide that connectivity in one API for our customers. Millions of users go through that journey every day for a number of different use cases.

Building on the core bank connectivity capabilities, we’ve spent the last few years building localised value added services. We launched underwriting services to help companies such as YouLend provide more credit with less risk. We optimised our Pay by Bank offering so companies like Western Union can provide instant transfers with higher thresholds, and companies like PokerStars can provide seamless and instant payouts.

Tell us about your role at Plaid?

“I was part of the team that started Plaid in New York and opened the office there. I did a variety of things from helping customers integrate, building new products, working with sales teams, and anything else that would help us grow, About a year after that, I moved over to London to be the first person on the ground there. Fast forward five years and I’m delighted to be the head of product in Europe. I’ve been with the company for about five and a half years. Overall, it’s just been an exciting journey from a hundred people to more than a thousand now.”

Talk about some of the successful integrations Plaid is involved in…

“We recently announced that we’re working with Western Union across Europe to fund transfers, whether that’s someone depositing in the UK and Germany, Italy or Spain. Plaid is powering account to account payments for Western Union across their various use cases. Particularly when you look at the growing trend around account-to-account payments and pay by bank, we’re thrilled to be working with brands of that caliber. Since launch we’ve seen hockey stick growth for their customer adoption of pay by bank. This shows trust and reliability of the open banking ecosystem which we’re excited to be a part of. We are also delighted to be supporting MoneyBox, one of the largest fintechs in the UK. They handle millions of transactions to fund and create ISAs. Moneybox have launched VRP (Variable Recurring Payments) through Plaid in order to optimise their customer flows and have more reliability in customer recurring payments. With our new flow, users can go through the journey once, set up their consent, and then money can move in the background. It’s like a card on file with a bank account. We see this as a significant trend in the coming years in the UK specifically, and then across Europe as that product set develops.”

The UK has always been an early adopter of open banking but we’re now seeing a surge in demand from mainland Europe. We are currently live in 18 markets in Europe and continue to focus on our reliability and depth in each market to ensure we can meet that demand.

This year, we’ve learned more about how our customers want to use VRP (Variable Recurring Payments). In June, we launched Moneybox’s VRP proposition to enable them to relaunch their Payday Boost offering which was previously restricted by direct debit limitations. Every week we’re having more and more conversations on VRP use cases. 

We’re also excited about how open banking and fintech more broadly can help make financial access more inclusive. For example, open banking can help the underserved get more access to credit by using real-time data to inform underwriting decisions. At Plaid, we’ve built specific products to do this such as the Financial Insights Report that companies such as Capital on Tap are already using to inform their decisioning programmes.

And what’s next for Plaid? What future launches and initiatives are you particularly excited about?

“There are three areas I would highlight… First, pay by bank globally for Plaid. You look at Western Union, they’re probably not the first company to adopt something, but the second they adopt something it probably is about to hit mainstream. That’s significant volume. They’re one of the world’s oldest companies. They’ve been fantastic to work with. So, as that trust and familiarity start coming into play, people that aren’t Western Union come and say, okay, we’ve seen this experience. It was really good. We want it now. We’re working with our teams across the globe to bring that to life for North America and Europe in the simplest way possible. It’s really exciting.

“Second, we have the significant opportunity to bring lending into the 21st century. Particularly because of the third thing, which is the Plaid network. We’ve touched hundreds of millions of consumers. We’ve spent a long time building products to make payments easy and to make underwriting easy. And now we’re in the third phase… We have all of these users, this large network, so how can we make this even simpler for people? And just giving smoother experiences when the user is actually in the workflow. So, boosting conversion, delivering network style experiences in the same way that other network businesses do.”

Why Money20/20? What is it about this particular event that makes it the perfect place to showcase what you do? How has the response been to Plaid?

“This is my sixth straight Money20/20 and it gets busier every year! It’s great to learn more about the ecosystem at large. You can see developing trends each year, and it’s always a little bit different. You build relationships at Money20/20 that stay with you for the rest of your life. And it’s a perfect opportunity to meet people in the flesh that you might normally only see on screen. You can get a pretty direct read on what they’re working on and it’s exciting to be here making new connections.”

  • Digital Payments

Author

Dan Brightmore

Published

25 July 2024

Estimated Read time

6Mins

FinTech Strategy met with Merusha Naidu, Global Head of Partnerships at Paymentology, to discover more about the global issuer processor

Banks, digital banks and fintechs, around the world, trust Paymentology to issue and process all forms of cards and transactions, at scale. Paymentology offers a cloud-based platform, rich data, a global footprint and proven track record powering industry leaders and game-changers.

A global issuer processor with on the ground teams in 50+ countries across 14 time zones, Paymentology’s founders saw that the payments industry was stagnant and limited, in both capability and ambition.

In March 2021, Tutuka and Paymentology merged, resulting in a ‘payments and card processing powerhouse’. The merger combined the ultra-advanced, multi-cloud platform of Paymentology with the global reach and experience of Tutuka to revolutionise cloud-based processing globally. 

Tutuka was traditionally a financial services company, that provided payment processing technologies, software and services, and application programming interfaces (APIs) for e-commerce and digital transacting across countries in Africa, Latin America, Southeast Asia, and the Middle East, while Paymentology processed for legacy banks in Europe and the UK. The merger enabled banks and fintechs to integrate into a single API, go live and issue cards almost anywhere in the world.

At Money20/20 Europe, FinTech Strategy spoke with Global Head of Partnerships, Merusha Naidu, to find out more…

Tell us about the genesis of Paymentology?

“Paymentology is a global neo processor. We work with banks and fintechs to help them issue their own cards, whether prepaid, debit or credit, virtual or physical. The beauty of the platform is that it’s fully cloud native. So, we’re scalable. We’re focused on speed to market so when you are working with a fintech, or a digital bank, it’s all about two things. How do you innovate? And then how do you go live quickly? Those are two areas of the business that we really focus on. Not only is our tech state of the art, with everything built in the cloud, all of our infrastructure is also in the cloud, including things like our connection to schemes.

We were the very first issuer processor to connect to Visa Cloud Connect, via cloud endpoints in Europe. Being first in embracing modern practices, we ensure our processes are next-generation, thanks to our fully cloud-native and digital infrastructure.

What makes us different? We operate across UK, Europe, the Middle East, Africa, Latin America and Asia Pacific; we are truly global, operating across all five regions. One of the things that makes that possible is our tech. A customer can integrate with us once and then launch across five regions if they wanted to, or multi-market rollouts. We offer a huge ability to scale using integration. Our customers are able to replicate that digital first experience across every single jurisdiction. So, whether it’s Kenya and Dubai and then Saudi Arabia and Portugal, they can have the same experience across the world.”

Tell us about your role at Paymentology?

“I’ve been with Paymentology for 14 years. Prior to taking up my current role as Global Head of Partnerships, I was the Regional Head of Asia Pacific. So, when you look at partnerships, I was asked a question recently at a talk: ‘What would my message be to issuers across the industry?’ My message is that you can’t do it alone. If you want to create truly scalable, innovative solutions, you’ve got to work with partners and collaborate with the best in class. We know we are best in class when it comes to issuer processing, but we also create ecosystem partners that close the gap when it comes to creating really valuable payment ecosystems.

Whether it’s top core banking providers, leading cloud services, or premier card manufacturers, these are the partners we collaborate with. This allows us to confidently assure our customers that we work with the best, to deliver the best, across the entire value chain.”

Tell us about some of the successful partnerships Paymentology has been involved in…

“We were the first company to deliver flip card technology for our client Mox. Paymentology embedded its global processing capability into the platform, to enable Mox to launch its ground-breaking feature to ‘flip’ between debit and credit spending on the all-in-one Mox card. This allows you to have one physical card, one virtual card number, but in the background, we link it to two different accounts. It gives the customer real flexibility around how they can spend, because if it’s everyday purchases, they can use their debit account or their prepaid account. If they have larger purchases, they can switch in the app and use their credit facility. So, it really gives customers flexibility and choice – two things at the heart of what we do.

“Cross-border payments for us is key. Meanwhile, everyone talks about being digital first. For us, tokenisation has helped and we have a superior partner, MeaWallet, to help us deliver this. Elsewhere, crypto has been seen as a sore point but it’s coming back and people again want that flexibility. So, having a way for customers to spend their crypto, converting crypto to free apps and making sure that data is at the heart of all that. It’s about learning about our customers, understanding what our customers want and using our data to make informed decisions, or giving our customers data so that they can make the decisions.”

And what’s next for Paymentology? What future launches and initiatives are you particularly excited about?

“We’re excited about being able to deliver flexibility, control, agility. Because the Paymentology platform is so agile, in the future you will be able to plug in even more different components into the offering. So, a customer can add in rewards and loyalty points. For example, airlines have a platinum MasterCard product, so it opens them up to all of the MasterCard loyalty rewards, airport lounges, all of those benefits. It’s all about being innovative and keeping up with that innovation and growing with customers.”

Why Money20/20? What is it about this particular event that makes it the perfect place to showcase what you do? How has the response been to Paymentology?

“Paymentology is headquartered in the UK so it’s important for us to make sure we’re representing business across Europe. This is the centre of the world for banking innovation. People look to this event to really learn about what’s happening in the industry globally and discover what trends are going to come up. What should we be doing? How can we innovate together and learn from each other? That’s one of the things I really love about Money20/20; the talks in all of the panels are so interesting and I always leave knowing more. Being in the payments industry, and especially being an issuer processor, it’s important for us to learn from the industry and understand where we need to move so that we can stay at the forefront of developments.”

  • Digital Payments

Author

Dan Brightmore

Published

9 July 2024

Estimated Read time

3Mins

FinTech Strategy and Interface joined Publicis Sapient at Money20/20 in Amsterdam for the launch of its third annual Global Banking Benchmark Survey and spoke with Head of Financial Services Dave Murphy about its findings

The third annual Global Banking Benchmark Study from Publicis Sapient draws on insights from 1000+ senior executives in financial services across global markets. The study focuses on the goals, obstacles, and drivers of digital transformation in banking.

Global Banking Benchmark Study

The study was launched during Money20/20 Europe in Amsterdam last month. Eoghan Sheehy, Associate MD, and Grace Ge, Senior Principal, highlighted the banking industry is focused on improving existing processes rather than introducing new ones. Data Analytics and AI are identified as key priorities for digital transformation. Additionally, there is a focus on internal use cases and efficiency.

Eoghan and Grace also discussed the challenges faced by the banking industry. These include regulation, competition from companies like Amazon, and the need to attract talent. They emphasised the importance for financial institutions of modernising core infrastructure. Also, building cloud infrastructure to support ongoing digital transformation. Moreover, the study notes the prevalence of the development of custom-made tools and internal use cases for AI implementation. Furthermore, Eoghan and Grace provided examples of repeatable use cases and discussed the success factors for Data Analytics and AI.

Four key takeaways from Publicis Sapient

Four key tracks came out of the study…

  • Modernising the core will always be important. But modernising the core for its own sake and also building the cloud infrastructure that supports it or allows for it to be modern. A decent chunk of the survey responders are still very focused on this. Executives are stating they want to make sure their people can make the best use of the beautiful core they’ve now built.
  • GenAI is an area of thoughtful experimentation for the Neobanks. We’re talking about scaled microservices here. Instances where, across Neobanks, you’ll have the same machine learning model and the same GenAI text generator facilitating retail and SMEs. That’s pretty sophisticated and something everyone has to contend with.
  • Data Analytics transformation is a key priority using GenAI to do so along with bringing new talent into the game.
  • Payments has been a big theme at Money20/20… We’re seeing lots of activity around ancillary individual product areas.

“The study focuses on how to think about solving problems end-to-end. Banks are dealing with legacy issues and taking a customer first view into solving the challenges. The practical application of AI across the banks is a significant theme as they look to automate decision-making and deliver better credit risk models. AI is finally delivering a set of use cases that truly can impact the way banks operate and build their own technology.” Dave Murphy, Head of Financial Services, EMEA & APAC

Be among the first to receive the study by signing up here


  • Artificial Intelligence in FinTech

Author

Dan Brightmore

Published

23 April 2024

Estimated Read time

3Mins

Read in brochure format

Publicic Sapient CEO Nigel Vaz reflects on the leadership strategies required for successful digital business transformations

The hardest part of being a business leader and CEO – especially leading through change – are the choices we make every day to move toward that will drive our future success. Often, this will mean letting go of things that made us successful in the past. We must make room for new skills, relationships, ways of working, and opportunities.

The average CEO has 30 years of business experience and makes decisions based on that accumulated experience. But think how much the world has changed in the space of five years, let alone 30. The same thinking and approach are not going to stand the test of time. The modern CEO needs to find and maintain the ability to turn preconceived ideas on their head. As a leader, I’ve always felt it’s important that I adopt the behaviours I advise for our clients. Leaders must be willing to learn, adapt and act with speed.

The Modern CEO

The modern CEO has a complicated, bordering on paradoxical, relationship with change. We dislike uncertainty and volatility, and yet we have an intense distaste for stasis. We would rather avoid geopolitical instability and macroeconomic challenges. However, changes to customer needs, shifting industry landscapes and rapid technological innovation bring opportunities to transform our companies. We must identify paths to value creation and growth, and build better, more efficient businesses. And, the reality is for today’s CEOs, you don’t get to pick one or the other. You have to be ready to lead your organisation in the context of both simultaneously. Leading through either type of change is not for the faint of heart.

In my role as CEO of Publicis Sapient – a digital business transformation company that partners with organisations globally to help them create and sustain competitive advantage – my relationship with change is amplified. I am responsible for driving growth and ensuring our business capabilities are optimised for the digital age. At the same time I’m leading a business that empowers our clients to embrace change by putting digital at the core of how they think, organise and operate. On the Executive Committee of our parent company, Publicis Groupe, I am also weighing in on how to lead on the digital business transformation of the Groupe. This has been accelerated this past year with the pace of AI.

Change Management

The nexus of these different aspects of my CEO role is not uncommon to many of the CEO clients we work with. Like myself, they are leading their organisations and people through a period of tremendous change. Furthermore, they are tasked with making decisions daily on choices that will impact the direction and outcomes for their company.

One of the most critical choices they will make is determining the purpose of their organisation. When there is so much change and challenge surrounding you, the easy path is to react and say, ‘How do I overcome each of these challenges?’ But first you have to be clear on who you are as an organisation and the impact you want to have. Without that sense of direction, you can very easily fall into the mistake of making disconnected, reactive decisions.

Read the full story here