There’s a lot of talk about how Generative AI can be used to improve customer experience, but what are the implications for internal software and back office processes? 

In this episode of The Fintech Show, Trisha Price from Pendo, Marnix van Stiphout from ING, and Søren Andreasen from Nordea discuss the transformative impact AI is having in this area. 

Tune in to this informative episode to find out how:

• AI can automate KYC and CDD processes.
• Banks are leveraging AI to tailor user interfaces based on roles and experience.
• Tech can help surpass challenges posed by legacy systems.

Leveraging AI for Digital Transformation

AI adoption in all industries is growing and this is certainly true of financial services. According to the FCA, in the UK, 75% of firms are already using artificial intelligence (AI), with a further 10% planning to use AI over the next three years. Many organisations are now thinking about how it can be used to boost internal processes and the day to day lives of employees. But just implementing these tools doesn’t necessarily guarantee success. Trisha Price, who is Chief Product Officer at Pendo, points out that the success of this depends on how well financial institutions use data. 

She highlights three types of data that are crucial: quantitative (how employees use applications), qualitative (how they feel about them), and visual (tracking user behavior like repetitive clicks, which indicate frustration). By analyzing these data points, financial institutions can refine employee and customer experiences, ensuring that the software investments they make, actually do yield productivity gains and business value.

AI’s Role in Banking Operations

So how can AI be used in banking? We’ve looked at this before and got more great thoughts in this episode. 

Marnix Van Stiphout, Chief Operations Officer at ING, acknowledges that while machine learning has been integral to banking for years—powering services like instant lending—generative AI (GenAI) presents new opportunities. One area he sees particular promise in is streamlining Know Your Customer (KYC) and Customer Due Diligence (CDD) processes, which traditionally require significant manual effort. AI-driven automation can gather and analyze vast amounts of data, enabling faster decision-making and reducing operational costs.

Søren Rode Jain Andreasen, Head of Digital Customer Engagement Hub at Nordic bank Nordea, echoes this sentiment, noting that many banks, including their own, are already using AI internally to enhance efficiency. AI-driven automation shortens process cycle times and improves customer experience while maintaining data security. It’s also being used internally for everything from risk assessments to capital requirement models, and GenAI is quickly becoming another essential tool.

AI Powered Decision Making

Of course, we’re also interested to learn how AI is shifting the role of bankers by acting as a decision-support tool. Price talks about how AI-driven assistants can analyze customer data to suggest personalized product recommendations and pricing strategies. Beyond insights, AI agents are beginning to take on tasks traditionally handled by employees, further streamlining operations and improving customer interactions.

Van Stiphout emphasizes the strategic question of whether to build or buy AI solutions. He suggests that banks should develop AI tools in-house if they directly impact client satisfaction. However, echoing Price’s earlier thoughts, he stresses that successful AI implementation depends on data readiness—ensuring that data is clean, structured, and accessible.

Another key challenge in banking is legacy systems, something Andreasen clocks onto. Advisors often have to navigate multiple platforms, increasing the risk of errors when transferring data. The good news is AI can help automate these processes and detect inconsistencies, reducing error rates and enhancing operational accuracy.

Personalization Through AI

We talk about personalisation a lot and this is something that has come up before, in interviews with the likes of CX bot, Zingly.ai. But it’s not just personalising the customer experience that could be valuable. 

Price also discusses AI’s role in creating personalized experiences for employees too. Consumer platforms like Amazon and Netflix have shaped expectations for personalization, and financial institutions must follow suit. AI can tailor software based on the user’s role, experience level, and language preferences. For instance, an underwriter and a retail banker should have distinct interfaces suited to their tasks. Similarly, first-time users might benefit from a simplified experience, while seasoned professionals require quick access to advanced functionalities.

She also highlights AI’s role in localization, enabling automatic translation of banking interfaces to serve diverse customer bases. This ensures seamless communication and improves accessibility for global users.

As shown by this discussion AI is no longer a futuristic concept it’s a present day reality and it’s changing the way banks operate. Watch the video to find out how it could work for your organisation and check out our website for more great videos just like this one.

The post The Right Data is at the Core of Any Bank’s AI Strategy | Pendo, ING and Nordea | The Fintech Show #150 appeared first on FF News | Fintech Finance.

As the space matures, priorities are changing. Seamless onboarding is one major goal but compliance is also key.

Watch the episode to find out about:

• Open APIs are presenting very real opportunities to scale.
• How Zenus Bank are enabling LATAM super apps to offer U.S. banking services.
• The challenges facing Open Banking growth?

The Evolution of Banking-as-a-Service (BaaS)

The BaaS market has matured. For one, it is growing. It was valued at $15.9 billion in 2023 and is expected to expand to $64.7 billion by 2032. Commenting on the demand for this technology, Tuum co-founder Uibo suggests that banks are now under pressure to stay relevant in an increasingly competitive landscape, seeking new revenue streams while leveraging their existing infrastructure.

Initially, many BaaS providers targeted fintechs with relatively simple offerings but as the market evolves, compliance and economic viability have become critical focus areas. Now, successful players in this space, like LHV and Zenus, are focusing on solving real problems and delivering high-value integrations to their specific customer segments.

Rowlands from LHV, builds on this by emphasizing the importance of seamless onboarding for scaling operations. Efficient KYC (Know Your Customer) and KYB (Know Your Business) processes allow fintechs to expand quickly across multiple jurisdictions without administrative bottlenecks. LHV, who saw significant growth in 2023 and 2024, embraces an open approach and its APIs are publicly available to ensure transparency and ease of integration. Rowlands believes that fostering collaboration in this way is essential for driving industry progress.

Viera, who is Chief Compliance Officer at Zenus, provides a real-world example of how their offering enhances customer engagement while expanding market reach. Super apps in Latin America, for instance, can now offer U.S. banking services directly to their users, creating a frictionless experience. Zenus’ approach allows for deep customization via APIs, ensuring a tailored and branded user experience.

The Role of Technology in Scaling Modern Banking

Modern banking platforms need cloud-native, API-first architectures, Uibo says. By leveraging microservices and asynchronous processing, institutions can achieve the scalability required to support high transaction volumes while maintaining 24/7 availability. These technological advancements ensure that BaaS providers can meet growing customer demands without compromising reliability.

Viera also explains how Zenus Bank has strategically evolved from a digital bank into a flexible platform supporting diverse business models. By offering embedded banking solutions, Zenus differentiates itself and gains access to new demographics, particularly in international markets.

Through strong B2B relationships, the bank can extend its services beyond traditional banking, making financial services more accessible across various industries.

Rowlands shares LHV’s journey in open banking, highlighting its well-established presence in Estonia, where LHV powers payments infrastructure across physical and digital channels. Now, the bank is bringing this expertise to the UK, launching a retail bank and providing payment initiation services to fintech clients who want to generate revenue this way. There are challenges to commercializing open banking however. Many providers struggle with compressed margins and fierce competition. The way forward, he argues, is moving beyond basic transaction services and solving more complex problems like fraud prevention and payment orchestration—areas where businesses are willing to pay for real value.

Tuum’s Unique Advantage in Banking Infrastructure

Uibo positions Tuum as a company with a deep-rooted understanding of banking infrastructure, shaped by decades of experience. It’s certainly true that they have consistently pushed technological boundaries, from building real-time transactional core banking systems in the early 2000s to developing microservices-based platforms. This expertise gives Tuum a competitive edge in delivering scalable and secure banking solutions tailored to today’s needs.

We also hear about the critical role of data in payment processing from LHV’s Rowlands. With multiple payment schemes and varying acceptance rates across banks, fintechs need better insights to optimize transaction flows. LHV helps clients navigate these complexities, advising on the best payment routes and minimizing potential pitfalls like IBAN discrimination.

There are a number of key takeaways here and the discussion underscores how modern banking is opening up new revenue streams through agile, technology-driven ecosystems. Be sure to let us know what you think of the episode above and catch more great conversations just like this one, on our website.

The post How BaaS Can Open New Revenue Streams for Banks | LHV, Tuum, and Zenus Bank | The Fintech Show #149 appeared first on FF News | Fintech Finance.

In the latest episode of The Fintech Show, we spoke to Owain Chambers, Senior Business Development Manager at Lenvi, to find out how standby servicing could have an increasingly critical role to play in protecting capital market investments. 

Over the past few years, global challenges and economic uncertainties have heightened the scrutiny and demand for these services. Chambers gives us the lowdown on all this and explains their proactive approach, which combines advanced technology and expertise, to provide peace of mind and operational resilience. 

For our first interview with Lenvi where we learnt more about the role of automation in combating fraud, head here. 

The Role of Standby Servicing  

For those who are unaware, standby servicing functions as a form of insurance for institutional investors and lenders, safeguarding substantial capital investments in case the loan originator or servicer faces operational or financial difficulties. These transactions often involve significant sums—ranging from millions to billions of pounds. Should an originator fail, the standby servicer steps in to secure the loan portfolio, ensuring the seamless continuation of operations for end borrowers while protecting investor capital. This dual purpose not only stabilises the market but also instils confidence in capital providers.

Chambers highlights that this service has evolved from being a “tick-box exercise” pre-pandemic to an indispensable safeguard, as unforeseen global events have underscored the fragility of financial systems and heightened scrutiny on standby servicers.

Heightened Scrutiny and Growing Demand  

The pandemic was a watershed moment for standby servicing. During COVID-19, uncertainty about the future heightened investor vigilance, prompting deep evaluations of backup servicers’ capabilities. Events like the Liz Truss mini-budget and geopolitical tensions further underscored the necessity of having reliable contingency measures. Chambers notes a marked increase in invocation events—three in the past 18 months compared to a single event previously—reflecting both market instability and Lenvi’s growing footprint in this space.

This intensified scrutiny, according to Chambers, is a welcome and necessary development. The stakes are high when billions of pounds are at risk, and investors need assurance that standby servicers can handle complex portfolios and ensure uninterrupted operations. This scrutiny drives innovation and reliability in the sector, strengthening its role as a financial stabiliser.

Lenvi’s Expertise and Unique Position  

Lenvi certainly have servicing expertise to add to their advanced technology capabilities. With £24 billion in assets under management at their HQ in Cardiff, Lenvi handles a diverse range of asset classes, from residential mortgages and consumer loans to niche areas like litigation finance and invoice factoring. The integration of technology into their servicing model gives them an edge, enabling efficient portfolio management and swift responses during invocation events.

Their invocation processes—essentially the transfer of servicing duties from a failing originator to Lenvi—are a testament to their preparedness. Chambers details how Lenvi contracts for a 30-day transfer window but often completes the process much faster, even in as little as seven days. This efficiency is rooted in meticulous pre-invocation planning, which includes deep dives into lender operations, systems, and customer management practices. By ensuring they can replicate or improve upon the original servicing model, Lenvi minimises disruptions for all stakeholders.

Lessons from Real-World Invocation Events  

Chambers shares insights from recent invocation events, which highlight the unpredictable nature of the market. One event occurred overnight, requiring Lenvi to compress its standard 30-day transition plan into just 10 days. Success in such scenarios stems from Lenvi’s robust due diligence and agile processes, which ensure readiness to adapt to sudden changes.

Each invocation presents unique challenges, regardless of portfolio size or asset class. For instance, redirecting payment streams from insolvent accounts or managing complex products like litigation finance requires specialised knowledge and rapid problem-solving. Chambers underscores that preparation—understanding a lender’s operations in-depth before a crisis occurs—is the key to successful outcomes.

The Broader Importance of Standby Servicing  

While invocation events remain relatively rare, the peace of mind they offer to investors cannot be overstated. With external factors like economic instability, regulatory changes, and geopolitical tensions influencing financial markets, having a robust standby servicer is akin to holding an insurance policy for multimillion-pound investments. For institutional investors, it ensures capital protection and continuity, even amidst systemic shocks.

Chambers reflects on the evolving role of standby servicing as an indispensable component of the financial ecosystem. As global uncertainties persist, the demand for skilled, tech-enabled, and proven servicers like Lenvi will only grow. Through their expertise and preparedness, Lenvi exemplifies how backup servicing can provide stability in an increasingly unpredictable world.

Catch more editions of The Fintech Show, on our website. 

Lenvi’s standby servicing team have been shortlisted for Overall Servicer of the Year with the Global Capital European Securitization Awards 2024 – which is now open to public vote to determine the winners, click here to cast your vote.

The post A Banking Lifeline: Standby Servicing in Turbulent Times | Lenvi | The Fintech Show #148 appeared first on FF News | Fintech Finance.

In the latest episode of The Fintech Show we’re joined by Ken Hart from Snowdrop Solutions, Waleran Guinard from BNP Paribas and Alexey Gabsatarov from Kroo Bank to look at how AI-driven transaction enrichment is transforming banking.

The cleaning and enriching of transaction data has the potential to enhance customer trust and bring about more personalised banking services. Tune in for the latest on how banks can utilise this, avoid errors and much more.

The Problem: Confusion in Banking Transactions

Many are discussing how AI, as big of a topic as it is, can actually be brought in to enhance banking. Some estimates of the value it could bring to the sector reach the heights of $1 Trillion.

Solving the problem of unclear transaction data is an area that could immediately benefit. Customers encountering cryptic merchant names or confusing details on their statements can cause unnecessary anxiety, lead to disputes, and overwhelm customer support systems. For example, a transaction might display the legal name of a franchise instead of the familiar brand name, making it difficult for users to recall the purchase.

This lack of clarity results in mistrust and frustration. The problem for banks, Guinard, who is Group Head of Customer Cards notes, is that disputes over such transactions waste both customer and bank resources. So resolving this problem is massive for banks.

The Solution: Advanced Transaction Enrichment

In the episode, CEO Ken Hart describes how Snowdrop Solutions address this challenge through a sophisticated API that leverages AI to clean and enrich transaction data. By processing over 1.4 billion messy transactions monthly with 98-99% accuracy, the solution transforms ambiguous data into clear, user-friendly formats. This includes accurate merchant names, precise locations, and additional attributes like the type of establishment (e.g., “romantic Italian restaurant”).

Guinard also elaborates on how BNP Paribas have incorporated these solutions, going beyond basic name corrections. They integrate enriched data, such as logos, Google Maps locations, customer reviews, contact details, and merchant websites, directly into their digital platforms. This approach enhances usability and fosters a deeper connection with customers.

Building Trust Through Quality Data

According to Alexey Gabsatarov who is CTO at Kroo, the foundation of effective AI models lies in the quality of data. So by partnering with Snowdrop, Kroo Bank has seen measurable improvements: a 15% increase in customer engagement and a noticeable reduction in complaints. Clean, enriched data not only resolves ambiguities but also instils confidence in users, encouraging them to trust and engage more with their bank.

Hart further explained the emotional benefits of clarity, noting that removing uncertainty reduces customer anxiety. When users feel in control of their finances, they’re more likely to explore additional banking products, deepening their relationship with the institution.

Customization and Accuracy With AI

The speakers also delved into the technical aspects of how AI is powering these solutions. Of course, with all the hype, we all want to know how AI will actually change the customer experience. 

Gabsatarov outlined the importance of training models on focused, high-quality datasets to avoid irrelevant or erroneous outputs. Unlike generic large language models, specialised AI systems are tailored to deliver precise results, such as ensuring correct business names or categorising merchant types.

Hart addressed the problem of AI “hallucinations,” where models generate plausible but incorrect information. Snowdrop counters this issue by grounding their tools in real-world data, such as Google Places’ database of over 200 million verified locations. This ensures that enriched transaction data remains accurate and trustworthy.

Unlocking New Possibilities

Beyond clarity, enriched transaction data opens up opportunities for personalization and convenience. Hart and Guinard shared examples of how this technology can enhance banking services: 

• Travel Features which automatically suggest multi-currency accounts or loyalty programs for users travelling abroad.  
• Expense Insights providing detailed spending breakdowns (e.g., “How much did I spend at Amazon in February?”) through AI-powered queries.  
• There is also the possibility for memorable experiences which help users recall past visits to specific merchants, complete with contact details and reviews, to make repeat interactions seamless.

There are further insights in this great episode, so be sure to watch the full thing above. And catch more fintech content just like this, on our website. 

The post Enriched Data at the Heart of the Digital Banking Revolution | BNP Paribas, Kroo, Snowdrop | The Fintech Show #147 appeared first on FF News | Fintech Finance.

The Paytech Show is back and this time Kirill Lisitsyn from Torus, Nurlan Zhagiparov from DNA Payments and Tommaso Ulissi from Nexi Group discuss the transparency of fees in the payments value chain, and how unique local payment methods are changing the way we pay.

Rising processing costs and regulatory pressures mean things are tough for merchants and acquirers alike. Innovative, omnichannel solutions and technology-driven efficiency are needed to meet the demand. Find out how these industry leaders are approaching the challenge.

Complex Card Transactions and Fee Transparency

Kirill Lisitsyn, co-founder and CEO of Torus, believes there is a need for greater transparency in card transaction fees. It’s a significant issue for both payment players and merchants and isn’t always touched upon.

As cashless payments grow, merchants face increased costs from processing fees, primarily driven by interchange and scheme fees, which are often opaque. The UK’s payment services regulator found Mastercard and Visa increased their scheme and processing fees by more than 30% over the past five years. Lisitsyn explains that merchants struggle to understand these fees, which are passed along the value chain with added margins, often resulting in confusion or distrust. This lack of clarity strains relationships between merchants and acquirers, as merchants suspect potential overcharging while acquirers grapple with unpredictable fees from card schemes.

The booming card payment industry adds another layer of complexity. Although the market sees stable double-digit growth, competition remains fierce, particularly in e-commerce, leading to squeezed margins. To stay profitable, acquirers must finely tune their understanding of revenue and cost drivers. However, limited control over these costs—particularly scheme fees—makes it challenging. Tools like those Torus offers aim to provide payment companies with insights to better predict, analyze, and optimize these fees, ultimately helping them deliver fair pricing and build stronger partnerships with merchants.

Challenges of Supporting European Merchants

Nurlan Zhagiparov, co-founder of DNA Payments, adds further context to the hurdles European merchants face, particularly around funding. He points out that many merchants also struggle to access capital due to market fluctuations and rising borrowing costs, pushing payments companies to consider incorporating lending solutions. By facilitating lending, payment firms can not only enhance merchant support but also diversify their offerings in a competitive market.

Zhagiparov also emphasizes the importance of operational efficiency in an environment of rising labor costs and demand for multiple payment methods. To stay viable, payment providers must streamline operations, reduce costs, and support an increasingly varied range of payment options to meet European merchants’ needs. He observes that more players are adopting omnichannel solutions—platforms that seamlessly combine in-store and online payment capabilities. Such solutions provide merchants with the flexibility they need while enabling payment providers to keep costs down.

Adapting To The Local Market

Tommaso Ulissi, Group Head of Strategy and Transformation at Nexi Group, highlights the significance of adapting to local preferences. Each market presents unique payment methods, regulatory demands, and customer expectations, all of which must be factored into a payment provider’s strategy. Local adaptation not only supports compliance but also resonates with merchants’ needs for effective, relevant payment solutions, helping them succeed in their own markets.

Alternative Payment Methods (APMs) continue to grow, spurred on by global and post-pandemic shifts. However, despite predictions about the “death of cards,” Lisitsyn argues that cards remain dominant in most markets. While APMs have seen success, particularly by capturing a share of cash transactions, they have not yet outpaced card usage. This ongoing evolution of payment preferences means that while payment providers must keep pace with trends, cards will likely continue to play a central role.

Regulatory Pressures and Market Consolidation

The other major mover is the tightening of regulatory environments. Zhagiparov notes that Open Banking initiatives are increasingly becoming a popular payment method. These regulations, along with market consolidation through mergers and acquisitions, are reshaping the payment landscape, offering cost savings and efficiency. He observes a clear shift from traditional banks to tech-driven payment providers. Many banks are divesting from payment processing to focus on core banking services, opening up opportunities for tech-forward companies to step in with modern, often cloud-based, solutions.

Merchants, for their part, are urged to remain vigilant about payment pricing, advocating for transparency to avoid hidden costs and complex pricing structures. This transparency push is in line with broader industry trends, where merchants are increasingly demanding straightforward and competitive solutions from their providers.

Enhancing Innovation Across the Payment Value Chain

Of course, there’s rarely a one size fits all solution. Due to the multifaceted nature of the ecosystem, no single player can serve all needs. From terminal management and authentication to routing and processing, the chain is highly segmented, necessitating a cooperative approach to innovation. For merchants to benefit, innovation must be scalable and tailored to practical use, with solutions designed to enhance conversion rates and make transactions smoother. By delivering cutting-edge solutions across the value chain, providers can add value and ensure fair remuneration for each participant.

Lisitsyn further discusses how Torus’s globally scalable platform integrates with card scheme data, offering tailored insights for issuers, acquirers, and e-commerce acquirers alike. The approach aims to empower payment players to expand without sacrificing focus, supporting their growth while addressing their specific challenges in various regions.

Watch the episode to find out more, and stay tuned to further episodes of The Paytech Show on our website.

The post Transparency in the Payments Value Chain | Nexi Group, Torus, DNA Payments | The Paytech Show #83 appeared first on FF News | Fintech Finance.

Payments orchestration presents a way forward for helping merchants and banks tackle the ever widening payments ecosystem.

In the latest episode of The Paytech Show we speak to Tom Voaden, VP of Commercial at BR-DGE, who discusses how they’re addressing gaps in traditional acquiring banks’ technology.

It’s an interesting look at how data could enable both merchants and banks to optimize their payment ecosystems and leverage actionable insights for improved service delivery.

Bridging the technology gap

Over the past few years, BR-DGE have worked directly with enterprise merchants, serving as an intermediary between them and their traditional acquiring banking partners. In this episode, Voaden goes on to explain how the role of BR-DGE has grown due to the gaps in technology offered by traditional banks. With many new payment methods emerging merchants need better systems. BR-DGE’s orchestration platform now allows merchants to enhance their payment processes without needing to switch from their traditional banks.

Interestingly, Voaden highlights how this need to solve technical challenges led to a shift in the dynamic between BR-DGE and acquiring banks. Initially focused on merchant needs, BR-DGE began working with banks directly, providing orchestration solutions that helped them stay competitive in a fast-changing market. Banks are under pressure from new fintech entrants like Stripe and Adyen, who offer cutting-edge technology. At the same time, regulatory requirements like PSD2 and the forthcoming PSD3 have consumed significant development resources, leaving traditional banks struggling to keep up with innovation. 

This is where BR-DGE comes in. Benefits of their orchestration platform include helping banks route transactions across different endpoints or integrate network token solutions, ultimately supporting them in modernizing their legacy tech stacks.

The key to payments orchestration

A major takeaway from Voaden’s discussion is the versatility of orchestration platforms. While many view them as all-encompassing solutions, he emphasizes that orchestration can be modular. BR-DGE’s platform can seamlessly integrate with a bank’s existing front end or even sit behind their gateway infrastructure, tackling specific pain points without requiring a full-scale transformation. As is often needed this flexibility allows acquiring banks to take a step-by-step approach to improving their payment systems.

BR-DGE also have a white-label offering, enabling banks to rebrand and customize the orchestration platform. By doing so, banks can maintain control over the user experience, offering their merchant customers a tailored interface while relying on BR-DGE’s core technology for routing, tokenization, and data management. This white-label solution has allowed BR-DGE to scale its offerings, allowing banks to onboard merchants rapidly via API.

The data within

Voaden also touches on how orchestration provides a more holistic view of the merchant’s payment ecosystem. Traditionally, merchants had to manage multiple tools—fraud prevention, alternative payment methods (APMs), and acquirers—across different platforms, resulting in fragmented data. With orchestration, all relevant data is unified in one place, benefiting both merchants and acquirers. This integrated data enables acquirers to assess the performance of APMs and fraud tools in a 360-degree manner, allowing them to adjust their offerings to better serve merchants. Getting independent analysis and actionable insights of customer and merchant data is undeniably the future of payments. 

There’s an increased level of trust in orchestration across the ecosystem and Voaden is particularly bullish about the potential of data generated through orchestration. As transaction volumes grow, so does the data available for analysis, offering valuable insights into the performance of various payment channels, geographies, and transaction types. This data not only benefits merchants but also helps banks benchmark their performance, refine their strategies, and improve their services. Voaden envisions that data will become one of the most valuable aspects of payment orchestration, as it allows for more informed decision-making and enhanced partnerships between merchants, PSPs, and acquirers.

It’s a really interesting look at a growing area, one which will be around for years to come. To catch more episodes like this, head to our website.

The post The Transaction Symphony: Staying Competitive with Payments Orchestration | BR-DGE | The Paytech Show #82 appeared first on FF News | Fintech Finance.

The implications are huge, harnessing fan loyalty and football’s growing revenues to provide a compelling offering for consumers and new revenue streams for financial services.

One company is getting in on the action. In a brand new episode of The Fintech Show, we sat down with Andaria CEO Nirav Patel to find out more, and uncover the true potential of embedded finance.

Watch the episode above and read on to find out more.

New Revenue Streams for Sports Clubs

Embedded finance has become one of the biggest buzzwords in financial services. Many use it without discussing the true potential or application of the technology but fintech company Andaria has embraced it fully, focusing on creating real operational and financial value for their clients. For those unaware, embedded finance allows companies to offer financial services to their customers without needing their own banking licenses. Patel explains that when Andaria steps in, they absorb the regulatory and operational burdens, while clients benefit from seamless technical integration and revenue generation.

The most attractive proposition here is that something like this can allow businesses to unlock new financial opportunities while leaving Andaria to manage day-to-day financial operations. In the context of liquidity, Andaria’s embedded finance network enhances cash flow. Using the example of his own football team of choice, Patel points out how Andaria’s system allows near-instant transactions. Fans purchasing goods and services within the club’s ecosystem would see their payments processed in real-time. Not only this but the club receives its funds immediately rather than waiting days for settlement, therefore improving liquidity.

Data is key

The major benefits of embedded finance go beyond simple transactions— the key ingredient that is exciting companies across the world is that it becomes a source of valuable data. By capturing detailed transactional insights, businesses can better understand their customer base. Knowing greater detail about the demographics within your fan base opens up new avenues for targeted marketing and sponsorship deals.

Such data-driven insights can also have a powerful impact on commercial negotiations. If a sports club knows that a significant portion of its fan base consists of young professionals living in central London, it can use that data to strike better sponsorship deals with companies looking to target that demographic. The key is that payments become more than a simple exchange of money—they offer a wealth of information that can be used to drive more personalized and effective business strategies.

Enhancing the Fan Experience

Andaria’s solution also resolves a complaint many could have with poorly thought out strategies for embedded finance. Rather than pushing fans to third-party apps, Andaria integrates financial services directly into clubs’ existing apps, streamlining the user journey, reducing friction and keeping fans engaged with the club’s ecosystem. Additionally, by tying payments to loyalty rewards—such as offering points for each transaction made with a branded card—Andaria helps clubs maintain strong, ongoing connections with their fanbase.

Patel acknowledges that sports fans may already have multiple payment cards, so making the branded card appealing requires thoughtful incentives. Loyalty rewards connected to their favorite team can make all the difference, encouraging fans to continue using the club’s card as a primary or secondary payment option.

It’s a fascinating use case of this growing technology and hearing about Andaria’s future plans is inspiring. Be sure to watch the episode to find out more and catch more of The Fintech Show on our website.

The post Is Embedded Finance the Future of the Football Fan Experience? | Andaria | The Fintech Show #146 appeared first on FF News | Fintech Finance.

In this fascinating episode of The Fintech Show, get an insight into how banks effectively serve SMEs today and in turn what those businesses are looking for from their bank.

James Holian from NatWest, Niall Devlin from Bank of Ireland and Edgardo Torres-Caballero from Tuum discuss the advanced technologies and data analytics that are needed to meet the diverse needs of SMEs and how banks can get tooled up to leverage them.

Of course, this has to be balanced with a human banking experience and our guests point out how essential this is to staying competitive in business banking. There’s thoughts on how SMEs adapt to the current economic climate and how partnerships and collaboration with fintechs are more prevalent than ever. It’s a must watch.

Digital Transformation continues

Digital transformation has had a seismic effect on modern banking already, but it’s always continuing. In this episode of The Fintech Show, Tuum CRO, Torres-Caballero, emphasises the necessity for financial institutions to make sure they’re ready for advanced technologies that meet the evolving needs of their customers.

He highlights that embracing digital platforms is vital for launching services rapidly and meeting customer requirements. By integrating APIs, banks can improve onboarding processes and risk validation, while fintech partnerships can enhance the overall customer experience. He also points out that digital transformation allows banks to bolster their data analytics capabilities and explore the potentials of artificial intelligence.

Moving away from a one-size-fits-all approach, this technology actually allows banks to better serve SMEs with differing needs. Modern, cloud-based technology is also essential for maintaining up-to-date, cost-effective systems that support sustainable growth and operational efficiency.

The balance between humans and digital banking

Both James Holian, the MD of Business Banking at NatWest, and Niall Devlin from Bank of Ireland discuss the diversity of small businesses and the necessity for banks to offer both digital and human support. Holian says that NatWest aims to be the number one bank for small businesses in the UK by combining the best technology, whether developed in-house or sourced externally, to create exceptional customer propositions.

He makes the suggestion that banks today are essentially technology companies, with their products and services increasingly digitized and highlights NatWest’s commitment to providing dynamic, responsive services, facilitated by partnerships with various fintechs. Echoing Torres-Caballero’s thoughts above, this approach helps them leverage data to offer tailored financial advice and support for borrowing and growth, even amidst uncertain economic conditions.

Devlin, the Head of Business Banking at Bank of Ireland, takes us back to the most important stakeholders in this relationship and reflects on the resilience of businesses in the face of challenges such as Brexit, COVID-19, and global political instability. He notes that the current high interest rate environment presents an opportunity for banks to help businesses maximise their liquidity. He also underscores the critical role of technology in enabling efficient and effective banking services, from simple transactions to complex applications.

However, he does point out how important in-person services are, through branches and regional business centres. This dual approach ensures that Bank of Ireland can meet the needs of all customers, regardless of their technological proficiency. Interestingly, there’s also some thoughts about the bank’s efforts to support entrepreneurship through partnerships and educational initiatives.

Balance is key it would seem! Tune in to find out more and be sure to catch more of our great flagship shows on our website.

The post Building a Bank for Smaller Businesses | NatWest, Bank of Ireland and Tuum | The Fintech Show #145 appeared first on FF News | Fintech Finance.

In this episode of The Fintech Show, we find out what’s changed and how institutions of all sizes can now differentiate themselves in an increasingly competitive market.

Our stellar line up of industry experts includes Bianca Zwart from bunq, Peter-Jan Van De Venn from Hexaware and Arunan Tharmarajah from Wise.

Together they discuss growing pressures from tech-savvy consumers, differentiation through innovation and the impact of regulatory changes. We get some real business cases and hear about the partnerships that are making transformation possible.

Read on to find out more.

Differentiating features

In this episode of The Fintech Show, three industry experts delve into the primary drivers and implications of digital transformation in the banking sector. We were pleased to speak to Peter-Jan Van De Venn, VP Global Digital Banking at Hexaware (FKA Mobiquity), who emphasizes the critical role of customer demand in pushing banks to innovate. Hexaware are the experts when it comes to helping banks find ways of differentiating in a competitive market.

Typically consumers’ expectations are shaped by their experiences with tech giants like Google and Facebook, and increasingly challenger bank offerings. Of course, many banking apps share common functionalities—referred to as “must-haves”— so as a result, he says banks should focus their budgets on the remaining 20% of features that can differentiate them in the market. This strategic allocation enables banks to innovate effectively and economically, ensuring they stand out while maintaining a solid business case.

We were also delighted to speak to Bianca Zwart, Chief of Staff at bunq, the second largest neobank in Europe and a real trailblazer for customer centricity in the banking space. She discusses their mission to build a user-centric banking experience, something they’ve been focusing on since 2015.

She interestingly points out that the traditional banking sector’s slow adaptation to user needs has opened the door for more agile, user-focused competitors. There’s no question that neobanking’s growth has been colossal and they’re gradually taking a greater market share. The rising demand for better, more adaptable banking solutions is forcing all players in the industry to innovate rapidly, fostering increased competition and diversity.

Getting payments right is key

We also spoke to Arunan Tharmarajah, Head of European Banking and Payments at Wise, one of the key players in making payments more accessible. They have both provided an innovative solution to a problem and are now helping more traditional institutions to innovate themselves. Tharmarajah gives us insights into how banks can address the challenges posed by the evolving financial landscape, particularly in cross-border payments.

He goes on to explain that some banks prefer to partner with specialized firms like Wise for cross-border transactions, allowing them to focus on domestic services. Wise offers a solution that integrates with traditional banking infrastructure, ensuring seamless, low-cost international transactions. He also discusses the broader implications of regulatory changes, which are increasingly accommodating non-bank entities in the payment systems. This shift is expected to enhance competition, lower fees, and improve customer experiences globally.

Tharmarajah emphasizes the need for banks to adopt a customer-centric approach, moving away from siloed, product-focused models to more holistic, technology-driven solutions that meet the diverse needs of modern consumers.

All our speakers are very much in agreement that focusing on user-centric innovation, strategic partnerships, and efficient use of technology, will be key to banks survival in this competitive landscape. Finally the user comes first in banking.

We hope you enjoy this episode and stay tuned for more coming soon.

The post Banking Transformation in the Wake of Challenger Disruption | Hexaware, bunq and Wise | The Fintech Show #144 appeared first on FF News | Fintech Finance.