That’s according to Tomas Navickas, co-founder of myTU, a digital banking provider with a unique focus on efficiency and sustainability. 

We spoke to him for our latest FF News Virtual Arena, in which he explains their focus on AI-driven automation for fraud detection, compliance, and customer support. Watch the video to find out more about…

• Their extreme efficiency, serving 50,000 clients with just $1,000/month in infrastructure costs.
• How AI could drive more effective fraud prevention.
• Their fresh approach to strategic team growth.

A bank with a product first mindset

In this Virtual Arena Tomas Navickas, co-founder of myTU, shares the story behind the creation of their digital banking platform, which has a product-first mindset. With a background in software development and payments spanning nearly two decades, Navickas was introduced to his co-founder, Roman, who had the vision for a digital bank when such institutions were still rare. The goal was to create a sustainable digital banking model, avoiding the cash-burning strategies of venture-backed fintechs, and to prioritize financial accessibility and education, particularly for younger users.

As for the market need that inspired myTU, Navickas explained that while digital banks are improving accessibility compared to branch-based banking, trust remains a key hurdle. A lot of digital banks still rely on cash rewards to attract customers, but this doesn’t necessarily translate into long-term trust or engagement with higher-value financial products like loans or mortgages. myTU in response aims to offer an efficient and convenient banking solution for individuals, families, and travelers while maintaining financial sustainability and operational efficiency.

AI’s role in digital banking

The conversation then shifted to AI’s role in digital banking. It’s certainly a major topic of conversation, with many banks considering how it will play a role. Navickas highlighted that when myTU started, advanced AI models weren’t as readily available as they are today. Initially, automation was achieved through traditional coding methods, identifying and optimizing processes like transaction categorization and multilingual customer support. However, with the advent of models like OpenAI’s ChatGPT, myTU was able to significantly enhance fraud detection, transaction analysis, and customer communication. AI’s ability to make nuanced, context-aware assessments—rather than relying on rigid rule-based systems—has greatly improved fraud prevention by identifying suspicious patterns and anomalies in invoices, pricing, and transaction behavior.

AI has enabled a real shift in the way they do things, allowing teams to focus on reviewing and refining AI-driven decisions rather than making every decision manually. However, he cautioned that AI without proper oversight can be overly aggressive in flagging transactions, requiring careful prompt engineering and fine-tuning to balance security with usability.

Extremely efficient banking

One of the most striking aspects of myTU’s model is its extreme efficiency. With a customer base of 50,000, the company maintains a cloud infrastructure cost of just $1,000 per month. Navickas attributed this to their commitment to lean architecture and in-house development, avoiding unnecessary reliance on third-party services. Unlike many startups that rapidly scale their teams and software dependencies, myTU follows a philosophy of building efficient, sustainable technology, inspired by earlier software development practices that prioritized minimal resource consumption.

While myTU keeps some services in-house, such as customer support and software development, certain tasks like card printing are outsourced due to high security and regulatory requirements. However, their overall philosophy remains one of in-house efficiency, allowing them to operate with just 25 employees, including a development team of only five people.

The discussion continues with thoughts on the impact of APIs, and myTU’s vision for scaling in Europe (and the challenges they might face there). Be sure to catch the full interview above, and watch more of our Virtual Arena interviews, right here on our website. 

The post The Future of Fraud Prevention… And Why The Human Touch is Still Needed | myTU | FF Virtual Arena #350 appeared first on FF News | Fintech Finance.

Financial institutions are cautiously increasing the data collected from customers—both actively and passively—which is used to enhance identity verification and transaction security.

Chris Briggs, Chief Product Officer at Mitek Systems and Kathryn Robinson, Commercial Global Lead at NatWest discuss the focus that banks have to enhance security and KYC processes.

Briggs and Robinson agree that banks need to reduce friction while ensuring robust security and that digital verification and fraud prevention tools such as biometrics, such as voice, fingerprint or facial recognition, offer quick and efficient processes but these technologies aren’t always available to those without digital resources. 

Fraudsters have been exploiting gaps between different banks’ security measures, and moving their tactics to areas of lower resistance, however the inclusion of AI in fraud facilitates both the creation of fraud and its detection through advanced algorithms. 

Fraud techniques like face swaps and social engineering are countered by AI-driven checks and secondary verification processes. Biometrics, such as fingerprints, voice facial recognition aim to simplify customer interactions but are not foolproof and require measures like liveness checks and layered fraud prevention strategies. 

Deepfakes are a more sophisticated type of fraud that banks are seeing emerge at a very rapid pace and AI chatbots that interact with fraudsters delay their effort and are considered as potential future strategies for direct fraud prevention.

Mitek’s solution focuses on minimising false positives and ensuring fraud strategies do not hinder genuine customers, emphasizing that banks must offer inclusive, flexible solutions that cater to diverse customer needs, balancing efficiency and security.

The availability of this advanced technology to anyone amplifies the reach and impact of fraud campaigns. A broad-based topic, the world is seeing a lot more emerge in the regulation around AI, biometrics, the use of biometrics and their effectiveness, when they can be used and not.

In conclusion, combatting fraud requires continuous adaptation, with a mix of technology and human intervention, customer education, and regulatory compliance.

The post Customer Onboarding and Fraud: The Challenges | Mitek and NatWest | FF Virtual Arena #349 appeared first on FF News | Fintech Finance.

Our latest Virtual Arena explores that challenge. We find out how banks can recycle expired payment cards, and involve the end-customers for the benefit of the local community.

Joining us are industry leaders Maya Reisinger from G+D and Joe Pitcher from Mastercard to talk about the environmental benefits and challenges of card recycling, and the need for collaboration to scale impactful solutions.

Watch this insightful conversation to find out more about…

• How recycling could drastically reduce plastic waste from billions of cards annually.
• How Mastercard are working to address cost, security, and expertise gaps in recycling programs.
• The exciting technology G+D are working on to help banks showcase ESG commitments effectively.

What is Card Recycling?

Of course, first things first, it was important to know what card recycling entails. Maya Reisinger, who is Product Management Director of the Convego Beyond portfolio at G+D, introduced this as a method of repurposing expired payment cards instead of discarding them in landfills. She emphasized the flexibility in this approach, noting that some banks integrate recycling into their ESG commitments without publicizing it, while others use it as a tool for customer engagement. G+D are committed to helping banks be more sustainable with a number of focused offerings. 

Joe Pitcher is Vice President of the sustainable cards program at Mastercard & also happens to be Chair of the Greener Payments Partnership, so he made for an ideal contributor to this conversation. He elaborated, describing card recycling as a shift from traditional disposal methods to redirecting these materials into reusable streams. It’s important of course to ensure consumers and institutions are clued up on sustainable practices and mentioned Mastercard’s research into advanced recycling methods, such as chemical recycling, to further innovate in this space.

Why is Card Recycling Worth Pursuing?

Both speakers stressed the environmental and symbolic value of card recycling. Reisinger explained that recycling aligns with the industry’s broader sustainability goals, reducing waste and the carbon footprint associated with virgin plastic production. 

Pitcher quantified the potential impact, noting that recycling even a fraction of the billions of cards produced annually could eliminate significant amounts of plastic waste. Just think, there were 17.45 billion credit, debit, and prepaid cards in circulation worldwide as of the end of 2023. That’s a lot of plastic. He framed these efforts as small but crucial steps towards sustainable goals, signaling the banking industry’s commitment to sustainability.

The Challenges Facing Banks in Card Recycling

Implementing card recycling programs presents hurdles for banks, including concerns over data security, cost management, and finding the right recycling partners. Pitcher pointed out that many banks lack expertise in recycling, making it difficult to know where to start. Mastercard has addressed this by partnering with TerraCycle and creating scalable programs to simplify participation and reduce costs.

Reisinger added that banks often struggle to allocate resources to such initiatives, as recycling is not their core focus. G+D helps by tailoring solutions to individual banks’ needs, from secure card collection to partnerships with local recyclers. A partnership they have with Santander are an example of this, where G+D manages card shredding and recycling whilst the bank can document compliance with ESG standards.

A Shared Vision for Sustainability

Both Reisinger and Pitcher highlighted the importance of collaboration in overcoming barriers and driving scale. Pitcher emphasized the role of economies of scale in making recycling programs more cost-effective, urging banks to pool efforts under unified programs. Reisinger reinforced the need for external expertise, noting that G+D leverages its global partnerships and experience to streamline processes for banks, making recycling programs feasible and impactful.

The discussion also touched on the broader sustainability landscape. G+D is the first payment card provider to pledge the end of using virgin plastic in payment card products by 2030. In parallel, Pitcher noted Mastercard’s mandate to eliminate first-use PVC from card production by 2028, encouraging the use of recycled or bio-based materials. Reisinger also discussed G+D’s lifecycle analysis approach. This means ensuring sustainability considerations run all the way through to product design and material choices from the outset.

Card recycling won’t solve all environmental challenges, but it turns a challenge into opportunity and it represents a significant step forward for the financial sector. It may even increase customer trust in their bank. 

To watch more great conversations like this one, on all areas of banking, payments and fintech, be sure to check out more of our Virtual Arena’s on ffnews.com. 

The post The Huge Potential of Card Recycling in Banking | G+D and Mastercard | FF Virtual Arena #348 appeared first on FF News | Fintech Finance.

It’s a really interesting look at how we can build globally competitive companies in Europe. Watch the interview to find out how…

• Hoxton Ventures combine European focus with Silicon Valley principles to scale startups internationally.
• How growth-focused valuations differ compared to the U.S. market.
• His thoughts on the future of cybersecurity.

Hussein Kanji is a founding partner at Hoxton Ventures, with significant experience in the VC industry, both in the U.S. and Europe, and offered a fascinating perspective for fintech professionals, bankers, and enthusiasts.

A Career Rooted in Early-Stage Investing

In the interview, Kanji began by explaining his role at Hoxton Ventures, a firm he co-founded a decade ago, specializing in seed-stage investments. His career path led him from building companies on the U.S. West Coast to joining a major American VC firm, and ultimately establishing Hoxton Ventures in London. His focus on early-stage investing stems from his entrepreneurial roots and a belief that the early phases of a company’s journey are the most rewarding, albeit risky. Kanji emphasized that identifying promising startups at this stage requires a blend of art and science. With three IPOs from 17 investments in their first fund, their record demonstrates their expertise.

The Early-Stage Appeal

When asked why he chose the risky early-stage market, Kanji highlighted its intellectual stimulation and potential to shape the future. He reflected on his early encounters with venture capitalists, noting how their role as financial enablers rather than creators aligned with his strengths. This inspired his shift from entrepreneurship to investing. Early-stage VC, according to Kanji, allows for profound impact by helping startups build a foundation for growth, often leading to transformative outcomes.

A European Venture Firm with a Silicon Valley Mindset

Kanji outlined Hoxton Ventures’ distinctive approach: combining a European presence with Silicon Valley principles. The firm prioritizes guiding startups to scale in the U.S., recognizing it as the world’s largest accessible market. This strategy often involves encouraging founders to focus on America early, despite the challenges of relocation and expense, as the U.S. market can exponentially increase a company’s size and valuation.

Another cornerstone of their strategy is leveraging Silicon Valley’s accumulated expertise. By maintaining connections with the Valley, Hoxton ensures its portfolio companies remain competitive on a global scale. Kanji emphasized the importance of understanding what “best-in-class” means by benchmarking European startups against their American counterparts, benefiting from decades of industry knowledge concentrated in California.

Challenges in the European VC Landscape

Kanji candidly discussed the challenges European startups face compared to their U.S. peers. He highlighted the cultural and structural differences that impact valuations, particularly in public markets. For example, high-growth companies like Darktrace struggled to achieve U.S.-equivalent valuations in the UK, partly due to the London Stock Exchange’s preference for dividend-paying, profit-oriented firms.

This discrepancy underscores a broader issue: the need for Europe to adopt a growth-first mindset to attract and retain high-potential startups. Kanji believes Europe is still in its early days as a tech ecosystem but is making strides. While the region produces unicorns, the challenge lies in scaling these into $100 billion or $500 billion giants. He suggested this requires fostering a more ambitious investment culture and addressing structural issues in capital markets.

Fintech, Cybersecurity, and Infrastructure: Key Trends

Though Hoxton hasn’t invested heavily in consumer fintech, Kanji expressed admiration for companies like Revolut and Monzo. He acknowledged a missed opportunity with Monzo in its early days but noted Hoxton’s strength lies in fintech infrastructure. One of their portfolio companies, Vitesse, exemplifies this focus. Vitesse simplifies financial operations for insurance firms, enabling efficient fund transfers while maintaining control—a critical innovation in the insurance industry.

On cybersecurity, Kanji commented on Darktrace’s privatization, viewing it as undervalued in the UK public markets. He suggested the company could achieve a higher valuation in the U.S., reflecting the difference in market attitudes towards growth and profitability. He also highlighted the strategic appointment of Darktrace’s CEO, Poppy Gustafsson, as the UK’s Investment Minister, signaling the country’s intent to improve its investment climate.

The Path Forward for European Startups

Kanji concluded by reflecting on the evolution of Europe’s tech ecosystem. While optimistic about the region’s potential, he stressed the importance of building world-class companies capable of competing globally. The key, he argued, lies in fostering a supportive investment environment that prioritizes long-term growth over short-term profitability, paving the way for more transformative success stories.

It’s a candid and thoughtful exploration of the venture capital landscape. You can catch other conversations just like this one on our website.

The post What if European Startups Had a Silicon Valley Mindset? | Hoxton Ventures | FF Virtual Arena #347 appeared first on FF News | Fintech Finance.

There’s a huge amount of funding still going into the fintech sector, which is growing all the time. This list of the hottest 250 startups in Europe from Sifted, shows that there are still plenty of neobanks and fintechs doing the business. Now, a lot of funding is going into AI right now, but even within fintech, areas like wealth management are seeing a lot of investment.

That’s why it’s so important to hear from those on the funding and investment side. Catch more interviews just like this one over on our Virtual Arena page.

Watch the full interview to find out more about:

• Compliance as a competitive differentiator.
• Jump Capital’s investment philosophy.

The emerging threats around payment fraud and what’s needed to prevent it.

From Investment Banking to Fintech Investment

Of course, whenever we do a profile like this, we do like to get a good look up inside their career. After giving us the lowdown, Gupta provided valuable insights tailored for fintech professionals, bankers, and enthusiasts keen on the industry’s evolution. Gupta began his career in investment banking, working on mergers and acquisitions, where he gained deep exposure to deal processes. From there he transitioned to corporate development at Scientific Games, driving growth through multiple acquisitions. But it was his interest in supporting early-stage companies through their growth trajectories that led him to Jump Capital.

Here, he specializes in fintech investments, leveraging his extensive experience to identify and back transformative startups.

Jump Capital’s Investment Philosophy

Founded 12 years ago, Jump Capital focuses on early-stage investments (seed to Series A) across three main verticals: enterprise software, IT infrastructure, and fintech. Gupta dedicates his time exclusively to fintech, seeking out innovative solutions that address pressing “hair-on-fire” problems exacerbated by macro trends like regulatory changes or shifting consumer behaviors.

As for what they’re looking for, the firm looks at two main things.

1. Identifying software solutions that offer measurable ROI to address significant business challenges.
2. Backing founders with unique insights and resilience, traits essential for navigating the unpredictable startup landscape.

Fintech Compliance: From Cost Center to Competitive Advantage

One of the big talking points in financial services is always compliance. But Gupta discusses a paradigm shift when it comes to how compliance is perceived in the industry. Traditionally viewed as a back-office cost, compliance can now be seen as a differentiator, particularly amid increasing regulatory scrutiny. He explained how robust compliance frameworks can drive sustainable growth and position firms competitively. Gupta noted that many compliance processes remain manual and outdated, presenting a ripe opportunity for innovative software to streamline and enhance these functions.

Payment Fraud: Emerging Threats and Innovations

There’s also a lot of talk about payment fraud, where Gupta sheds light on two pressing areas: chargeback disputes and push payment scams. He noted the growing prevalence of “friendly fraud,” particularly among younger consumers, and the need for banks to adopt more sophisticated tools for dispute resolution. Gupta highlighted the regulatory developments in the UK that mandate banks to reimburse victims of push payment fraud, a trend he anticipates will influence the US market.

He pointed out the delicate balance fintechs must strike: introducing enough friction to deter fraud without disrupting user experiences. Innovative solutions, such as systems that pause high-risk transactions for verification, are paving the way for more secure and user-friendly financial ecosystems.

Gupta’s insights underscore Jump Capital’s commitment to identifying and nurturing fintech solutions that address critical industry challenges. It’s a great insight into one of the companies driving the industry forward.

The post How to Differentiate as a Fintech Startup | Jump Capital | FF Virtual Arena #346 appeared first on FF News | Fintech Finance.

Discovery Bank are seeing a startling rise to prominence through their shared-value model, which rewards customers for positive financial behaviour, and have been branchless from day one.

Watch the interview to hear more about this fascinating approach and…

• Their latest customer milestone, two years ahead of schedule.
• Why they’re the World’s First Behavioural Bank.
• What their AI-powered co-pilot looks like.

Ahead of Schedule

Speaking to Ali Paterson, Hylton Kallner, CEO of Discovery Bank, was happy to talk about recently celebrating the milestone of reaching one million customers—an achievement realized two years ahead of schedule. They’ve been making waves in an emerging market and it’s impressive to see.

South Africa’s banking system, Kallner explains, was already robust and well-regulated before Discovery Bank entered the market. Unlike some regions where fintechs emerged to address systemic failures, South Africa’s banking sector was stable and mature. However, their own research revealed a clear demand for digital banking, with nine out of ten South Africans expressing a preference for online solutions. Despite widespread branch infrastructure, the rise of smartphone penetration—even in rural areas—created a fertile ground for a fully digital banking experience.

Discovery Bank seized this opportunity by launching a branchless, full-service digital bank, eliminating the traditional constraints of physical infrastructure. This approach not only appealed to customers looking for convenience but also enabled the bank to focus entirely on user-centered technology and design.

Building a Bank from Scratch

Like a lot of neobanks, one of Discovery Bank’s key advantages was its lack of legacy systems, which allowed it to build its technology stack from the ground up. Kallner described this as both a challenge and a luxury. The bank uses an SAP platform for industrial-strength back-end operations while designing bespoke front-end systems to create seamless customer experiences. Features like instant account opening with full compliance checks reflect this focus on simplicity and efficiency.

In addition to its digital offerings, Discovery Bank introduced a hybrid service model that combines advanced technology with highly qualified human support, including private banking services. This dual approach provides the flexibility of digital banking alongside personalized assistance, setting it apart from many fintech challengers.

The World’s First Behavioral Bank

Discovery Bank’s most distinctive feature is its “behavioral banking” model, which rewards customers for healthy financial habits. The bank tracks five key metrics, such as spending less than you earn and maintaining sufficient retirement savings. Unlike traditional credit scoring, this approach is income-agnostic, recognizing that financial behavior, not income level, determines risk.

By incentivizing positive behaviors, Discovery Bank aligns its goals with those of its customers. For example, clients who manage their finances responsibly benefit from better interest rates, discounts on travel, and Discovery Miles—a rewards currency that can be used for shopping or flights. This shared-value model, inspired by Discovery Group’s broader focus on wellness, fosters a mutually beneficial relationship between the bank and its customers.

Gamification and Engagement

Core to Discovery Bank’s strategy is gamification. Customers can set personalized goals related to spending, health, and even driving habits, earning rewards for meeting these objectives. Weekly challenges and a game-like reward system have led to high levels of engagement, with some customers maintaining streaks for nearly a decade.

Kallner noted that this gamified approach not only incentivizes good behavior but also deepens customer loyalty, creating an ecosystem where financial and personal well-being are interconnected.

AI: Enhancing Service Behind the Scenes

Of course, we had to find out what role AI is playing in their banking strategy too and Kallner highlighted the transformative role of AI in their bank, particularly in operations. Discovery Bank has implemented AI “co-pilots” in its call centers, equipping bankers with instant access to product knowledge and solutions. This technology has significantly reduced training time, improved first-call resolution rates, and enhanced customer satisfaction.

For customers, this means faster, more accurate service, while bankers can focus on empathy and value-added advice rather than routine queries. Kallner pointed out that AI democratizes private-banking-level service, making it accessible to a wider audience.

Scaling for the Future

Looking ahead, Discovery Bank sees significant potential for growth, both within South Africa and across the continent. Kallner emphasized the scalability of the bank’s digital-first platform, noting its ability to expand without adding substantial human resources. However, regulatory challenges and compliance requirements will play a key role in determining the pace and extent of cross-border expansion.

Kallner also hinted at the transformative potential of cloud-based platforms, which eliminate the need for physical infrastructure in new markets. While he refrained from committing to specific growth targets, he expressed confidence in the platform’s capacity to scale significantly.

It’s an impressive journey that reflects a bold vision for the future of banking, and one that could very easily be replicated around the world.

We hope you enjoy this insight into this particular challenger and be sure to check out our other interviews with fintech leaders on our website.

The post This Bank Rewards You for Positive Financial Habits | Discovery Bank | FF Virtual Arena #345 appeared first on FF News | Fintech Finance.

Admiral Pioneer, the insurer’s venture-building arm, is investing in the next generation of insurance technology. In our most recent FF Virtual Arena, we spoke to CEO Emma Huntington, to find out more.

Partnering with the likes of Flock, and leveraging technology like generative AI, they are looking at ways they can enhance claims processes and customer experiences.

Join the discussion as we find out:

• How to remain relevant to younger consumers.
• Which of their portfolio companies they’re most excited by.
• How Generative AI and data-driven insights could be used in insurance.

Read on to find out more.

The Vision Behind Admiral Pioneer

To begin the discussion, we find out their motivations behind launching this venture initiative. We’ve spoken to a number of established companies who have done a similar thing, including KPMG, PayPal and FIS, and it’s always good to get an insight into what’s behind it all. In a similar fashion Admiral Pioneer was created to diversify Admiral Group’s business portfolio by fostering new, high-potential ventures.

For Admiral, they’re being quite selective. The goal, according to Huntington, is to nurture one or two commercially strong businesses that align with Admiral’s core values of customer-centricity and operational excellence. They also provide an entrepreneurial space for Admiral’s talent.

Host Ali Paterson, described Admiral Pioneer as being a “speedboat” maneuvering with agility while tethered to Admiral’s “big ship.” Huntington echoed this analogy, using instead the sandbox metaphor for experimenting with innovative products, distribution methods, and customer segments, in service of supporting the main enterprise.

Navigating a Shifting Insurance Landscape

Insurance is undergoing a transformation. Funding in B2B SaaS is on the rise, and GenAI is being used more than ever. Reflecting on the rapid evolution of the insurance industry, Huntington highlighted several key drivers of change:

• Post-Pandemic Transformation: The challenges of launching Admiral Pioneer during the pandemic underscored the importance of adaptability and maintaining strong internal relationships in a remote environment.
• Insurtech Disruption: The rise of insurtechs has pushed traditional insurers to innovate. Huntington likened this wave of change to the impact of Open Banking on the financial sector, with insurtechs giving greater flexibility, personalisation, and usage-based models in insurance.
• Customer Relevance: Traditional insurance isn’t typically top-of-mind for consumers, but emerging technologies are enabling insurers to provide more meaningful, everyday interactions.

Collaborating with Insurtechs

Given these trends, Admiral Pioneer is all about partnering with insurtechs, and Huntington points out the mutual benefits of combining the tech-savvy agility of startups with the insurance expertise of incumbents. There are some pitfalls to these partnerships however, including misaligned expectations and timing mismatches. For instance, while insurtechs focus on scaling quickly, insurers may require more time to integrate solutions. Clear communication and aligned goals are critical to successful collaboration.

Huntington shared an example of Admiral Pioneer’s partnership with Flock, an insurtech specializing in fleet insurance. By setting clear expectations and aligning on values and culture, this collaboration has yielded promising results since its launch in mid-2023.
Who are the core companies in Admiral Pioneer’s portfolio

There are a few specific ventures in Pioneer’s portfolio, aimed at addressing specific customer needs. Here’s the main ones.

1. Veygo: Focused on learner and temporary drivers, this business provides tailored insurance options, including subscription models to match consumer habits. Veygo caters to both young drivers and their parents, helping build confidence and independence.
2. Admiral Business: Initially launched as a tool insurance product, this offering has expanded to cover tradespeople, small businesses, and professional liabilities. The venture leverages customer and broker feedback to continuously refine its products.
3. Fleet Insurance: Admiral Pioneer’s expertise in motor insurance extends to fleet insurance, supported by partnerships like the one with Flock, to offer innovative, data-driven solutions.

Generative AI and the Future of Insurance

Of course, the potential of generative AI (GenAI) has the potential to transform the insurance value chain. Huntington identified a few key use cases in the chat above, including:

• Claims Management: Streamlining processes with automated data collection and analysis to enhance the customer experience.
• Pricing and Underwriting: Leveraging AI to improve accuracy while combining human expertise and data science.
• Customer Engagement: Personalizing interactions and service design based on deep customer insights.
• Vehicle Data Utilization: Exploring opportunities in motor insurance by integrating data from connected and autonomous vehicles.

Despite its potential, Huntington stressed the importance of robust governance and ethical considerations when deploying AI, ensuring customer trust remains paramount.

Adapting to Changing Consumer Behaviors

We also get some insightful thoughts on shifting attitudes among younger generations, particularly in how they engage with insurers. With preferences for platforms like WhatsApp and Snapchat over traditional channels, insurers must adapt to meet customers where they are. This extends to exploring trends like embedded insurance, where products are seamlessly integrated into everyday platforms.

Watch more great conversations like this one on our website.

The post Investing in the Future of Insurance | Admiral Pioneer | FF Virtual Arena #344 appeared first on FF News | Fintech Finance.

In the latest FF Virtual Arena, we spoke to Fred Blumer, CEO of Mile Auto, an exciting Insurtech startup that leverages mileage data to offer fairer pay-per-mile auto insurance for drivers. It’s built as a response to consumer trends such as the rise in remote work and it aims to make insurance more tailored to the individual.

We also cover how this technology has potential environmental benefits on top of potential lower premiums. Watch the video to find out more and catch more conversations with founders on our website.  

Fred Blumer’s Journey: From Telematics to Insurance Disruption

The discussion began with an insight into Fred Blumer’s career so far. He’s CEO and co-founder of Mile Auto and Porsche Auto Insurance and has over two decades of experience in the connected vehicle industry. Early on he co-founded Hughes Telematics, designing systems for major automotive manufacturers like Mercedes-Benz and Nissan. A turning point came when he realised the significance of mileage data in determining insurance risk. While vehicle data streams offered insights into driving behaviours, Blumer identified a privacy concern: consumers might not want insurers to have access to sensitive data like location or driving habits. This epiphany led to the creation of Mile Auto, which just looks at mileage data.

The Appeal of Pay-Per-Mile Insurance

Low-mileage drivers often lose out when getting insurance from traditional insurers, due to subsidising high-mileage, higher-risk drivers. Mile Auto flips this model, offering a fairer pricing structure for those who drive less, such as remote workers, empty nesters, and families with extra vehicles. By focusing only on mileage and traditional underwriting data, Mile Auto ensures a transparent and privacy-conscious approach. Customers simply submit odometer photos monthly, avoiding invasive GPS or behavioural tracking.

The low-mileage segment is substantial: 60% of U.S. vehicles travel fewer than 10,000 miles annually, representing a $200 billion market opportunity. During the pandemic, when remote work became the norm, Mile Auto saw significant growth as consumers re-evaluated the cost of insuring cars that sat idle.

Balancing Data and Privacy

Blumer emphasised that while insurers have traditionally been enamoured with vast amounts of vehicle data—speed, acceleration, location, and more—this approach often overlooks consumer privacy concerns. He shared anecdotes from his earlier career, where sensitive data was subpoenaed for non-insurance purposes, underscoring the risks of over-collection. Mile Auto’s approach prioritises minimal data collection, using computer vision and machine learning to ensure accuracy without compromising privacy.

Interestingly, most Mile Auto customers prefer submitting odometer photos over sharing data directly from connected vehicles, citing mistrust in automakers’ data-sharing practices. This reinforces the importance of transparency in building consumer trust.

Partnership with Porsche

Another exciting topic in the conversation was around Mile Auto’s collaboration with Porsche Financial Services highlights its ability to customise offerings for niche markets. Porsche Auto Insurance, launched in 2019, caters to Porsche drivers’ unique needs, including agreed value coverage (critical for cars that appreciate over time), access to OEM parts, and certified repair shops. This bespoke product aligns with Porsche’s brand values and its customers’ passion for their vehicles, resulting in high satisfaction and retention rates.

Blumer noted that this partnership stems from a shared philosophy: respecting customer privacy while delivering tailored solutions. Unlike insurers that track driving behaviour, Mile Auto’s model resonates with Porsche customers, who value performance without invasive monitoring.

Technology, Trust, and the Future

Blumer’s reflections on technology underscored its dual role as both a driver of innovation and a potential threat to consumer trust. By prioritising privacy and transparency, Mile Auto is charting a course that respects customers’ values while delivering measurable benefits.

Mile Auto and its partnership with Porsche are prime examples of how data-driven insights, when used judiciously, can disrupt traditional industries for the better—offering a fairer, more customer-focused alternative to conventional auto insurance. Watch more episodes of FF Virtual Arena right here. 

The post Tailoring Automotive Insurance to Consumer Driving Habits | Mile Auto | FF Virtual Arena #343 appeared first on FF News | Fintech Finance.

Curt Persaud, Alison Hunte and Andrew B. Morris speak to Ali Paterson about their genesis during the pandemic and the vision around tackling financial inclusion and underdeveloped infrastructure. We get an insight into what to expect and what really sets it apart ahead of the next edition in January 2025.

Untapped potential

Throughout the conversation co-founders Allison Hunte and Curt Persaud, and Chief Content Officer Andrew B. Morris shared insights into the origins, challenges, and ambitions of this burgeoning initiative.

The idea for Fintech Islands was born during the pandemic, when Curt Persaud and Alison Hunte recognized the untapped potential of fintech to address critical challenges in the Caribbean, such as limited digital access to financial services, and a low financial literacy which has been a problem for some time.

They believe fintech has transformative potential to empower unbanked and underserved populations across the islands. Their complementary skills—Curt’s tech expertise and Alison’s event-planning prowess—laid the foundation for a collaborative platform aimed at addressing the region’s financial inclusion and technology gaps. The next stage was building a multidisciplinary team that included experts like Andrew, whose experience with global conferences brought additional depth to the project.

Improving fragmented infrastructure in the Caribbean

One of the major opportunities for development highlighted was the Caribbean’s fragmented financial infrastructure, which creates significant hurdles for cross-border transactions and banking access. Curt noted that the region often lags in technology adoption, partly due to consumer distrust and a lack of localised solutions. However, this presents a ripe opportunity for entrepreneurs and investors to address these gaps, provided there is greater international interest and financial backing. By viewing the region as a unified market rather than disparate islands, investors could unlock greater returns while driving innovation that benefits the entire Caribbean.

Andrew also emphasises how Fintech Islands serves as a catalyst for this transformation by fostering connections between global leaders and local innovators. Over the years, the event has attracted influential figures, from CEOs of unicorn fintechs to central bank governors and government officials. This year’s agenda has been streamlined to feature two concurrent stages and six thematic tracks, covering topics like AI in financial services, blockchain, open banking, and inclusive design. Andrew underscored the global perspective of the event, with speakers from Africa, Latin America, and beyond, reflecting the interconnected nature of the fintech ecosystem.

What sets fintech islands apart?

What truly sets Fintech Islands apart, however, is its distinctive blend of professional engagement and cultural immersion. Alison described the deliberate effort to integrate the Caribbean’s rich culture into the event, fostering meaningful connections through shared experiences like snorkelling, exploring caves, and savouring local cuisine. This approach has resonated deeply with attendees, creating a relaxed but impactful networking environment that strengthens both professional relationships and the event’s community spirit.

We also hear about the significant opportunities for technology vendors and startups to engage with the Caribbean market. Andrew pointed out that Fintech Islands offers unparalleled access to high-level decision-makers at a fraction of the cost of larger global events. With a growing demand for digital transformation across the region, vendors can make meaningful connections and drive tangible change.

As the event gears up for its 2025 edition in Barbados, the team remains committed to positioning the Caribbean as a global hub for innovation, talent, and investment. Whether you’re a fintech founder, investor, or regulator, Fintech Islands offers a unique gateway to new partnerships and markets, all set against the vibrant backdrop of Caribbean culture. Visit the event’s website to find out more and book yourself a space. And be sure to check out more great conversations like this one on our website.

The post Something’s Happening in the Caribbean in 2025… | Fintech Islands | FF Virtual Arena #342 appeared first on FF News | Fintech Finance.