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 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.

In this episode of the Fintech Show we’re joined by Boaz Yaari from Sharegain and Yorick Naeff from BUX for a fireside chat on the evolution of retail investing and the new revenue streams that banks can unlock.

Together, they explore the changing landscape of retail investment, predict future trends like non-purpose lending, and we find out how their companies got started. 

There’s no denying the boom that retail investing has experienced in recent years, particularly in the wake of the pandemic. Now, many consumers are looking for ways to grow their wealth and take control of their savings and investment journey, rather than relying on banks to do that for them. US stock trading volumes saw an enormous spike in 2020 and 2021 due to the immense rise in retail investing. Even neobanks are adding investment products to their offering, with great interest. Monzo got 200,000 sign ups to their investment account waiting list in just two days.

It’s in this context that both Yaari and Naeff started their companies. Both CEO/co-founders here reveal the stories that led them to where they are now. Boaz traces his path from FX derivatives trading to securities lending, recognising an untapped opportunity akin to Airbnb but for securities lending. Despite skepticism from others, Yaari’s pattern recognition and determination spurred him on to pursue Sharegain.

On the other hand, Naeff’s background in financial services and tech converged when he observed the barriers hindering retail investors from entering the market. Collaborating with a colleague, they conceptualized BUX to democratize retail investing, leveraging the rise of mobile applications. Their shared vision aligned perfectly with the evolving market, particularly the increasing demand for accessible and intuitive investment platforms. 

The retail investment boom

The conversation, which took place in our studio, delves into the dynamic shifts within the retail investing landscape. Our speakers emphasize the growing influence of private investors, particularly younger generations with a savings and investment-driven mindset. They predict a trend toward non-purpose lending, foreseeing a revolution in the lending space that could empower investors to leverage their portfolios for various financial needs. 

Highlighting the symbiotic relationship between Fintech and traditional financial firms, Yaari and Naeff stress the advantages of agility and expertise exchange. Yaari underscores Sharegain’s unique position in securities lending, while Naeff emphasizes BUX’s collaboration with industry giants like BlackRock to tailor investment packages for retail investors.

Stick around until the end also, because they have great advice to offer aspiring founders also. That includes the importance of assembling the right team, focusing on long-term growth, and staying resilient amidst challenges. 

Yaari reflects on Sharegain’s pivot towards sustainability and profitability, a testament to the team’s adaptability and perseverance. Similarly, Naeff celebrates the creation of a new market for independent agency lending, underscoring the transformative power of innovation in overcoming market barriers. It’s a really exciting area that could present new revenue streams for banks. 

Tune in to find out more. 

The post The Worlds of Retail Investing and Lending Collide | Bux and Sharegain | The Fintech Show #143 appeared first on FF News | Fintech Finance.

Risk management in banking is as big of a concern as ever, with liquidity under pressure from high interest rates and challenging economic conditions. In this video we hear about the market dynamics affecting lenders right now and what is needed to effectively manage a growing portfolio.

There are also understandable concerns about fraud, something which poses a threat to any financial institution. The cost of fraud is huge, and according to this McKinsey report, “In 2022, the FTC reported that scams were up 49 percent from 2021, with consumers losing nearly $8.8 billion.” Nascent technology is also potentially exacerbating the issue, with AI driven fraud increasingly coming to the forefront.

Our speakers are perfectly placed to discuss the issue, as Lenvi recently released their own report oAn being prepared for Fraud. Their 2023 European Fraud Readiness Report uncovered attitudes towards and concerns around Fraud in European Receivables Finance in particular.

Some of the findings include almost 90% of respondents feeling that fraudulent activity has increased in the last year. 70% said fraud is a significant risk to their receivables finance business in particular. Most concerning is that almost one in three respondents believed their company detected no more than half of the attempts made to defraud their business.

Alongside this research, Sales Director Amin and Head of Customer Success Tanner, bring decades of experience in financial services, banking and receivables finance to this insightful conversation.

The discussion delves into Riskfactor’s functionality, highlighting its ability to leverage data from core operating platforms to detect changes in behaviour, indicative of fraud. By streamlining this whole process it means employees are better placed to take action and be more efficient.

There’s also talk about how partnerships with third-party software vendors play a crucial role in expanding the reach of their software to global markets. We hear about their European expansion and the recent release of Version five, which boasts improved user interfaces and enhanced data functionality.

Despite economic uncertainties and an uptick in fraud, there’s a lot of optimism here as a growing emphasis on automation and improving internal processes in receivables finance could change the game. Risk factor’s risk-based approach and ability to cater to diverse client segments, especially SMEs, position it as a valuable tool in navigating evolving market dynamics and managing portfolio growth efficiently.

Riskfactor could play a pivotal role in your business and this video explains why. Watch to find out more.

The post This Automation Tool is a Must for Combatting Fraud | Lenvi | The Fintech Show #142 appeared first on FF News | Fintech Finance.