With the EU Instant Payments Regulation deadline approaching in November 2025, it’s prime time for European banks to assess where they stand on Open Banking initiatives and embedded finance.

In this video: 

• Find out how CBI’s Name Check service verifies IBANs in real time.
• What they’re doing ahead of the Instant Payments Regulation compliance deadline.
• What the future holds for Open Banking.

Tackling Fraud In a New Way With CBI

In our recent interview, Pilar Fragalà, who is Chief Commercial Officer at CBI, shared insights into how the company is shaping the future of payments and financial services. CBI, based in Italy, operates as an industry utility, working with financial institutions to develop those all important innovations, an approach which sets them apart in the European fintech landscape.

One area where innovation is needed in particular is the onslaught of financial fraud. With €2.0 billion lost in the first half of 2023, it remains one of the most significant threats to the European banking sector. Fragalà highlighted how fraud techniques are becoming more sophisticated, particularly with the rise of AI-driven scams like deepfake fraud and phishing attacks. To combat this, CBI has developed Name Check, a service that verifies IBANs and associated beneficiaries in real time. Launched in July 2023, this tool is already proving effective in reducing fraud and improving payment security. 

In addition, CBI’s IBAN-Name Check service ensures that the correct association between an IBAN and a VAT or fiscal code is verified before payments are initiated. This service has been widely adopted in Italy, covering 98% of the banking sector and supporting over 100 banks. You can read more about that here.

Compliance and the Instant Payments Regulation

There was also a lot of talk about the impact that upcoming regulations in banking are having on this area. The Instant Payments Regulation will bring faster transactions across Europe, and as such compliance with this has become another major focus for financial institutions. Fragalà explained that CBI anticipated these regulatory changes two years before they were formalized. This proactive approach allowed them to develop services that help banks verify payees quickly and accurately, preventing errors and fraudulent transactions in an era where payment speed is increasing.

The compliance deadline for the Instant Payments Regulation is set for November 2025, and CBI is already ensuring that banks and Payment Service Providers (PSPs) have the tools they need to meet these new requirements seamlessly.

Open Banking’s Untapped Potential

Despite its potential to revolutionize financial services, open banking adoption has been slow—largely due to a lack of consumer awareness and trust. Fragalà believes that banks need to take the lead in educating customers, launching awareness campaigns that highlight the real-world benefits of open banking. Security concerns also play a role in the hesitation, so enhancing security measures and collaborating with fintechs to showcase new use cases will be key in driving adoption forward.

CBI is actively supporting open banking innovation through its involvement in the EU Financial Data Access Framework (FIDA) and embedded finance solutions. By providing secure and innovative services, the company aims to unlock the full potential of open banking and make financial services more accessible, efficient, and user-friendly.

CBI’s Strategy for the Future

In the interview we also got an insight into their strategy for the future. As competition in the payments industry heats up, CBI is focused on three core pillars: innovation, collaboration, and interoperability. Fragalà outlined key projects that will shape the company’s future, including:

• Request to Pay – A service that allows businesses to send payment requests directly to payers, increasing transparency and reducing errors in transactions.
• Embedded Finance – Integrating financial services into non-banking platforms, including sectors like insurance and public services, to provide consumers with more data, insights, and seamless financial experiences.

By fostering partnerships across banking, fintech, and other industries, CBI is positioning itself as a leader in open banking and helping businesses, PSPs, and consumers navigate the evolving payments landscape.

The Bigger Picture

Throughout the discussion, Fragalà emphasized the importance of community-driven innovation. As a public consortium owned by its clients, CBI is uniquely positioned to develop services that meet both regulatory demands and business needs. For more thoughts from Fragalà’s colleague, Liliana Fratini Passi head here and catch more interviews just like this on our website. 

The post Open Finance’s Exciting Role in Fighting Payments Fraud | FF News with CBI appeared first on FF News | Fintech Finance.

SmartStream‘s platform AIR has been designed to do just that, streamlining financial data processing with advanced automation and intelligent matching. 

CTO Andreas Burner fills us in on new features such as enhanced cash and Nostro reconciliations, and looks at how large language models can be integrated into a tech stack to enable real-time, conversational data analysis.

Watch the video to find out:

• How AIR’s Affinity component boosts manual reconciliation by up to 30% for large institutions.
• The power of scalability in software.
• More info on an exciting practical use case for conversational AI. 

AI is increasingly being used across financial services to streamline data reconciliation processes and improve efficiency, accuracy, and adaptability. The role of AI in reconciliation is often cited as a developing trend in the industry.

Advancing Reconciliation with SmartStream AIR

In this conversation, SmartStream CTO Andreas Burner tells us that AIR, now in its ninth iteration, has undergone significant improvements, particularly in user onboarding and workflow optimization. The platform’s user interface (UI) and user experience (UX) have also been refined to ensure a more seamless experience. 

The standout feature of AIR 9 it would seem is the introduction of domain models. Given SmartStream’s expertise in cash, securities, reconciliations, and confirmations, these domain models enhance AIR’s ability to intelligently reconcile cash and Nostro accounts. This added intelligence enables financial institutions to manage reconciliations more effectively, reducing manual effort and increasing accuracy, one of the major goals in the industry today.

Harnessing AI for Better Insights

AIR has a number of other AI-driven components, each designed to enhance data processing and reconciliation. One key feature Burner points out is AI-assisted onboarding, which automatically recognizes and processes various data formats—structured, semi-structured, and unstructured—helping institutions quickly integrate new data sources.

Another crucial AI capability is pattern recognition and data matching. Traditionally, these processes are labor-intensive and prone to human error. AIR’s AI tools analyze historical data to detect patterns and suggest matches, significantly reducing the time required for reconciliation while improving accuracy.

Large institutions processing vast amounts of financial transactions typically have teams dedicated to reconciliation. AIR Affinity, a feature within the platform, leverages automated rule-based matching alongside AI-assisted manual matching. By learning from historical data, it can suggest more accurate matches, improving manual reconciliation rates by up to 30%. This not only reduces operational costs but also enhances efficiency, making it a game-changer for high-volume financial operations.

Scalability and AI-Driven Exception Management

In the conversation we also find out about the scalable and adaptable nature of AIR’s cloud native architecture, ensuring it can cater to large and small companies. This elasticity is great for optimising costs. 

Looking ahead, Burner lets us know how SmartStream is exploring the integration of large language models (LLMs) into AIR’s functionality. We hear about a prototype AI agent that allows users to interact with their exception management data through natural language queries—similar to how ChatGPT operates. Instead of generating static reports, users can simply ask questions like, “What is my current risk exposure?” or “Generate a pie chart of outstanding reconciliations.” The AI agent then retrieves and visualizes the data in real time.

This is a big innovation and could change the game for how financial institutions access and analyze reconciliation data. They’re refining this technology in the coming months and years, so there’s no question of their commitment to AI driven automation. 

Catch our other interviews with SmartStream and more financial experts on our website. 

The post A New Era of Data Reconciliation Using LLMs | SmartStream appeared first on FF News | Fintech Finance.

We hear some reflections on his first year as CEO and what they’re hoping for from 2025. Find out more about:

• AIR9, their cloud-native AI solution for cash management and data processing.
• An insight into SmartStream’s strategy for 2025.

Speaking at a key customer event in London, Jaffer emphasized SmartStream’s continued investment in AI-driven solutions, customer engagement, and an expanding ecosystem.

Announcing AIR9: AI-Powered Data Intelligence

Many businesses are looking to enhance their data and get more out of it. Data enrichment is a sought after development. AI could help them to get there.

SmartStream is at the forefront of this innovation and is showing an ongoing commitment to innovation, releasing an exciting new version of their flagship product AIR, version 9. Jaffer explains how this AI-powered technology is designed to enhance enterprise data intelligence, leveraging a cloud-native architecture to provide actionable insights.

The platform includes two key modules: one focused on cash management and another centered on AIR data processing. These advancements align with the broader industry trend of harnessing artificial intelligence to improve decision-making and operational efficiency within financial institutions.

A Year of Growth and Engagement

In this interview we also get some personal insights from his first year as CEO. Expanding on this, Jaffer describes the experience as both productive and enjoyable. He’s been focused on fostering clarity within the organization, reinforcing operational discipline, and driving financial performance.

One huge point of success is SmartStream’s growing customer base, and is keen to highlight the company’s long-standing reputation for helping enterprises extract meaningful insights from their data. This customer-centric approach has been instrumental in strengthening relationships.

Looking Ahead to 2025

aThere’s a big year ahead and as SmartStream moves into 2025, Jaffer outlined plans to build upon the strong foundation established in his first year. Innovation remains a core priority, spanning both software solutions and services that enhance enterprise data management.

Additionally, he highlighted an increased focus on expanding SmartStream’s ecosystem through strategic partnerships. While the initial year concentrated on strengthening internal capabilities and deepening customer engagement, the next phase will see SmartStream broadening its reach through collaboration, ensuring customers benefit from a more integrated and dynamic technology landscape.

With continued investment in AI, a growing customer network, and a push toward greater industry collaboration, SmartStream is poised for another year of innovation and expansion.

Catch more videos just like this one, on our website.

The post New AI Tool is Poised to Make an Impact in Data Intelligence | SmartStream appeared first on FF News | Fintech Finance.

In this insightful interview, Liliana Fratini Passi, Managing Director of CBI, discusses the organization’s pivotal role in driving innovation within the financial services sector. They’ve been on a 30-year journey, providing digital infrastructure for financial services companies and are now focussing on Open Banking and Open Finance through their platform, CBI Globe. 

There are plenty of thoughts here on regulatory compliance and collaboration in Europe. The Italian fintech also has a strong focus on interoperability, and fraud prevention. Tune in to find out more.

The conversation above, provides a comprehensive look into the milestones CBI has achieved, the challenges it faces, and some thoughts on recent technological advances in the likes of AI.

CBI’s Role and Vision

To begin the interview Fratini Passi discusses her leadership at CBI and positions the company as a fintech pioneer. Functioning as an industry utility, developing digital infrastructures for financial institutions, such as cloud and distributed ledger technologies, they also focus on transaction banking and open finance services. Fratini Passi emphasized the importance of cultivating a team-oriented approach, while encouraging creativity and innovation to stay ahead in a fast-evolving financial landscape.

CBI has managed to become a key player in the Italian and broader European markets, providing centralized services that cater to over 400 financial institutions. Its CBI Globe platform, launched in 2019, exemplifies this by offering a compliance solution for PSD2 (Payment Services Directive 2) and supporting the spread of open finance. The platform currently covers 80% of the Italian banking market, and facilitates interactions between payment service providers (PSPs) and third-party providers, handling over 80 million APIs. It’s an impressive statline!

The Power of a Network Economy

A significant theme in the interview was network economics—the value derived from interconnecting numerous stakeholders within a single ecosystem. Fratini Passi highlighted that CBI’s strength lies in its ability to aggregate a wide range of market participants. This ecosystem benefits not only the banking sector but also Europe-wide interoperability initiatives. She drew parallels between the evolution of financial ecosystems and the telecommunications industry’s approach to roaming, underscoring how interconnectedness fuels progress.

PSD3 and Open Finance

The conversation on PSD3 and what it can achieve for financial services is particularly interesting. When discussing the PSD3 directive, Fratini Passi elaborated on how it builds upon the foundations of PSD2, further promoting open finance by enabling more extensive data sharing across the financial sector. PSD3 is seen as a game-changer, aiming to enhance customer experience, improve security measures, and pave the way for instant Euro payments. This regulation will mandate that banks and PSPs offer instant transfers at no additional cost, significantly transforming the payment landscape by October 2025.

CBI is playing a pivotal role in helping institutions comply with these new regulations, developing products that address the security needs and leveraging the opportunities presented by open finance. Fratini Passi expressed that CBI’s strategic initiatives revolve around fostering innovation and security, while capitalizing on business opportunities arising from increased data availability and new customer-centric services.

Addressing Cybersecurity and Innovation Challenges

The conversation also has a discussion about how cybersecurity and technology innovation present opportunities and challenges. The financial sector is of course a prime target for cyberattacks, leading some institutions to adopt advanced security measures. Cooperation between stakeholders is paramount to promoting risk awareness and developing solutions that effectively respond to emerging cyber threats. CBI’s proactive approach includes attending international working groups and participating in key regulatory bodies to ensure compliance and security across the board.

Fratini Passi also highlights the rise of AI, particularly generative AI, and how it is revolutionizing the financial sector. While offering significant benefits, such as enhancing user experience and driving collaboration, it also introduces notable risks, especially in terms of cybersecurity. CBI’s focus is on ensuring responsible innovation, especially as it integrates AI into its service offerings.

Looking ahead, CBI’s strategic plan involves focusing on AI-driven innovation, ensuring that AI’s potential benefits are harnessed responsibly. 

CBI at Sibos

The discussion also touched on the importance of Sibos, which is in Beijing this year. Fratini noted that Sibos provides a unique platform for networking and forging partnerships, which are critical for driving progress in the sector. Recent collaborations, such as with SWIFT on name verification services, highlight CBI’s commitment to innovation and enhancing security on a global scale. At Sibos, CBI aims to stay at the forefront of emerging trends, including AI and digital currency.

The post Powering Open Finance In 80% of Italian Banks | FF News with CBI appeared first on FF News | Fintech Finance.

In Part 2 of this panel conversation from Mambu’s Banking Insights for Growth, we’re looking at what Credit Unions need to do to shore up their future.

After introducing the unique role of Credit Unions in Part 1, this part unpacks the technology behind transformation. Here we get more insights from Sue Mitchell from Mitchell Stankovic and Associates, Karan Maini from Persistent Systems and Anshul Verma from Mambu.

Don’t miss this important discussion.

Unlocking the Potential of Credit Unions Through Digital Transformation

In Part 2 we find out how credit unions can break free from outdated technology infrastructure and move towards digital-first solutions that empower them to better serve their members. We found out in Part 1 that digital transformation was key but here we get a bit more focus on how they can achieve that. 

Overcoming Technology Bottlenecks

Unsurprisingly one of the big barriers faced by credit unions is the limitations of legacy systems. Here, Karan Maini highlights how outdated platforms that were once cutting-edge 15 years ago are now holding credit unions back. To thrive in today’s digital age, credit unions must unbundle these old systems and invest in new technologies that enhance their ability to attract new members, increase loan-to-deposit ratios, and grow their member base. This is where partnerships with Mambu come in, allowing these organisations to adopt cloud-native, modular systems that allow them to scale rapidly and offer a wider range of financial products.

Maini also shares a success story about a credit union in Canada that embraced digital transformation, positioning itself ahead of major banks in the region. The efforts allowed them to expand their services into new markets, while also creating tangible value for its members.

Shared Services and Scalability

For smaller credit unions, the answer may be about sharing services, something Sue Mitchell picks up on in this conversation. By adopting a shared services model, credit unions can pool resources and scale more effectively, overcoming the obstacle that their legacy stacks creates.

She also points out the critical role of cybersecurity in ensuring the sustainability of smaller credit unions. Despite representing over $75 billion in assets, small credit unions are vulnerable to cyberattacks. By adopting shared services and modern, cloud-native solutions, they can enhance their security and operational resilience.

Embracing a Culture of Change

The discussion also touched on the human element of digital transformation. Both Maini and Mitchell emphasised that the shift to new technologies is not just about systems, but also about changing mindsets. Credit unions need to overcome the fear of change and embrace the opportunities that come with modernization. As Maini noted, the fear of not changing has become more pressing than the fear of transitioning to new systems. Mitchell echoed this sentiment, urging credit unions to adopt a forward-looking approach to both technology and business models, leveraging partnerships and APIs to maintain flexibility and innovation.

This segment, just like the first, has provided a wealth of advice and insights for credit unions seeking to get ahead. By addressing technology bottlenecks, adopting shared services models, and fostering a culture of change, credit unions can remain true to their mission of community focus and member service while embracing the future of finance. 

If you’re interested in finding out how other parts of the banking ecosystem can digitally transform, be sure to watch other episodes in the Banking Insights for Growth series. 

The post The Role of Credit Unions Today | Part 2 | Mambu’s Banking Insights for Growth appeared first on FF News | Fintech Finance.

This time, we’re looking at Credit Unions. What makes them special, the role they play and how they can continue to present a unique, market beating offering, particularly in the US. 

To uncover these insights, we gathered a panel of experts including Sue Mitchell from Mitchell Stankovic and Associates, Karan Maini from Persistent Systems and Anshul Verma from Mambu.

A Unique Cooperative Model

Sue Mitchell who is founder and CEO of Mitchell Stankovic and Associates, opens the discussion by highlighting the unique position of credit unions within the financial sector. These not-for-profit entities were originally designed for people to come together and offer each other financial services such as loans and savings. This cooperative model, which has existed for over a century, sets credit unions apart from traditional banks and is particularly popular in America.

Karan Maini, Head of Banking and Capital Markets for Persistent Systems, builds on this by discussing the distinctive membership model. Unlike banks, which serve “clients” or “customers,” credit unions have “members,” reflecting their cooperative and community-centric nature. They could also provide a first point of contact for immigrants or individuals without credit histories to enable them to access loans and other essential services. In areas where large financial institutions may be scarce, particularly in rural or underserved regions, local credit unions provide an accessible alternative for individuals seeking a trustworthy place to manage their money. 

The Place of Credit Unions in the Modern Financial Landscape

In the discussion, Maini also points out that credit unions face significant pressures from the rapidly changing financial landscape. Despite the rise in digital banking, which diminishes the need for localized institutions, there is still a need for them. After all, credit unions offer a level of trust and personal service that many find lacking in large, impersonal financial institutions. Not only that, but in a fluctuating economy where interest rates shift, the ability to offer products like certificates of deposit and other savings instruments enhances their attractiveness to a broader audience. 

But the threat from technology remains. There is also the increasing consolidation of financial institutions. The number of credit unions in the U.S. has dropped dramatically from around 12,000 to approximately 4,000. Digital services have simply vastly increased the scale and efficiency of larger players. However, by focusing on their cooperative roots and emphasizing member ownership credit unions could find a way. With over 85,000 credit unions globally and a strong presence in the U.S., Mitchell notes the sector’s commitment to growing its membership base to one billion globally. This strategy includes deepening intergenerational relationships to ensure credit unions’ relevance in future decades.

Financial Inclusion at the Centre

Anshul Verma​​ who is Head of Partnerships for Mambu in the US, is also keen to focus on financial inclusion, noting that credit unions consistently offer more favorable rates, lower fees, and less predatory loan terms compared to for-profit institutions. There’s also something to be said for the localized nature of credit unions in allowing for a high level of personalization, which Verma argues will become even more critical as digital tools and technology advance. By leveraging data and analytics, credit unions can tailor financial products to meet the specific needs of their members, offering services that bigger financial institutions may not be able to replicate. He also emphasizes the importance of financial literacy, which is integral to the member-driven model of credit unions. Advocacy for member-friendly regulations further aligns with the overall mission of credit unions to promote financial well-being within their communities.

Technology and Digital Transformation

All the panelists agree that the future of credit unions will heavily depend on their ability to embrace digital transformation. There’s no question that this needs to happen and Verma highlights how credit unions are increasingly collaborating with fintechs to offer seamless, omnichannel experiences, ensuring members can engage with their financial institution through multiple platforms. Be sure to watch the video to find out more about how emerging technology could be used to further the success of this corner of financial services. 

There are also a number of thoughts on the social impact of these institutions and how this can be a key differentiator for credit unions. As the world increasingly values corporate social responsibility, Mitchell points out that this is something credit unions have always championed. This includes supporting environmental sustainability, diversity, equity, and inclusion (DEI), and political engagement within communities. Mitchell argues that while credit unions are good at telling individual member stories, they need to do a better job of quantifying and showcasing their broader social impact. Creating detailed social impact reports, which track investments in communities, financial accessibility, and employee involvement, could help credit unions emphasize their role as “social financial institutions” in ways that resonate with today’s socially-conscious consumers.

And there is more to come from this panel. Be sure to watch Part 2 right here on the FF News website. 

The post The Role of Credit Unions Today | Part 1 | Mambu’s Banking Insights for Growth appeared first on FF News | Fintech Finance.

Our deep dive on building societies continues in the latest edition of Mambu’s Banking Insights for Growth. This time Mike Fisher from Mutual Vision and Nick Lawler from Mambu discuss the shift to serving a wider audience online and the efficiency gains in mortgage processing through automation.

We also hear about how modern technology is not just essential for enhancing customer experience but also attracting and retaining top talent, ensuring these smaller institutions remain competitive and innovative.

Mutual Vision is a specialist in building digital banking platforms for specialist lenders and Mambu is one of the leading providers of banking technology, so know what it takes to digitise a bank. Both speakers are perfectly placed to comment on the current landscape.

Be sure to check out Part 1 of this conversation if you haven’t already, and get more great insights on this topic from Mambu’s own blog, which discusses how building societies are embracing technology for community-centric growth.

A changing landscape

The landscape for building societies in this country has changed significantly in recent years with digital banking opening up new revenue streams on the one hand, and forcing these organisations to compete in a far more crowded market, on the other.

Our conversation looks at how technology has transformed the savings and lending process for these institutions. Historically, building societies operated with a strong regional focus, with customers typically opening accounts in-person at local branches. But this model has changed. Regardless of the competition, this shift will have led to new customers in other areas, especially given the opportunity to offer competitive deals, that then get picked up by consumer watchdogs.

On the lending side, technology is increasingly being used to streamline mortgage processes. While many building societies still value personalised, case-specific mortgage approvals, efficiency wins in most cases. Instead of manually gathering data from multiple sources, technology now enables the automation of data collection, allowing underwriters to make quicker decisions.

Both speakers agree that automation is not just about eliminating human input but optimising it. Other examples include tasks like document uploads, and even customer communication regarding account maturities. Despite these advancements, there are still challenges, such as systems that are not fully integrated, leading to redundant data entry and inefficiencies. The goal is to move towards a more seamless, straight-through processing system, where data flows effortlessly between systems, reducing manual intervention.

The power of data

As with any financial institution today, the importance of data in driving decision-making is huge and building societies are no different. The data is there but the challenge lies in its effective use. Technology can play a significant role here by analysing data trends and providing actionable insights such as identifying potential customers for specific products based on their proximity to a branch or other relevant factors. This is definitely an area where many institutions are catching up.

The gradual evolution of technology within building societies is also discussed, with the participants pointing out it is unlikely to lead to a complete overhaul of the industry’s fundamentals. For instance, building societies should continue to maintain their regional focus while leveraging technology to expand their reach and improve customer service.

Talent retention

One fascinating aspect to this conversation is the impact of digital transformation on staff. Lawler stresses that technology should not only enhance customer experience but also improve the work environment for employees. In a post-COVID world, where remote and hybrid work models are increasingly common, having a robust technology stack is essential for retaining and attracting talent. Employees now expect to work with modern, efficient systems, and organisations that fail to provide these may struggle to retain their staff. The participants note that this aspect is sometimes neglected in favour of customer-facing improvements, but it is equally important for long-term success.

There are many more insights here including a look into what the future holds for building societies. Be sure to watch the full video to find out what they say.

And there are lots more fascinating conversations from Mambu’s Banking Insights for Growth series on our website.

The post Building a Bright Future for Building Societies | Part 2 | Mambu’s Banking Insights for Growth appeared first on FF News | Fintech Finance.

Mambu‘s Banking Insights for Growth is all about delivering actionable advice to help institutions better serve their customers. This week’s episode provides plenty of that.

This time Nick Lawler from Mambu speaks to Michael Fisher from Mutual Vision to discuss how Building Societies can attract Gen Z consumers and continue to deliver a competitive and attractive service.

From niche, community-focused products to a more effective use of data, there’s a lot of potential here. Our speakers are perfectly placed to talk about this too. Mutual Vision is a specialist in building digital banking platforms and partner ecosystems for specialist lenders with mutuality at the core and Mambu is one of the leading providers of banking technology, so know what it takes to digitise a bank.

There’s more to come in Part 2 of this conversation, and Mambu also has a new blog on this topic – Head here to read more about how building societies are embracing technology for community-centric growth.

Attracting a new generation of customers

There’s no question that building societies need to attract a new audience and shore up their future. They still command a significant share of the market, with 2023 statistics showing they have 24% of the £58.5 billion total mortgage lending in the UK, and a 19% share of savings.

But the demands of customers are not always being met. In one survey, almost half (47%) of building society customers reported difficulties engaging with their services and 73% of 18-34 year olds said they look for an easy-to-use app when choosing financial products, something not all building societies have.

According to our speakers, there’s a number of things these established organisations can do. Both Fisher and Lawler emphasise the crucial role of technology in meeting the expectations of a tech-savvy generation accustomed to smartphones and seamless digital interactions. At the end of the day they’re competing against digital-first challengers and larger financial institutions.

Despite this focus on technology, Lawler, Market Director for EMEA at Mambu, does acknowledge that while technology is essential, it should be in line with a customer focused strategy, especially since traditional products like mortgages may not immediately attract younger generations.

Instead, products that encourage savings through modernised, user-friendly applications could engage Gen Z. Moreover, innovative savings products, such as those that reward achieving financial goals, could also be compelling. Regardless, there’s no question that technology should be integrated across all touchpoints, ensuring a cohesive and engaging user experience both online and in branches.

Agile Technology Stacks

Another point made in the conversation is that building societies’ physical branch networks remain significant, serving as a differentiator that fosters community connections. But they need to provide excellent customer experiences, supported by technology to streamline processes and enhance interactions. One way of staying attractive is offering niche, community-focused products tailored to local needs, something that larger national banks might overlook.

What is clear is that monolithic systems of the past are inadequate for today’s needs, and building societies must adopt composable architecture that supports diverse functionalities and frictionless user experiences. This approach allows them to leverage the best Fintech innovations without being constrained by outdated systems.

An institution’s capabilities when it comes to implementing and managing new technologies can vary so that’s for them to work out and organisations must balance transformation efforts with ongoing operations. Choosing the right technology stack is crucial, not just for immediate needs but for long-term viability. Our speakers suggest considering managed services or delivery partners to bridge capability gaps and ensure a smooth transition.

The discussion also goes into depth on a number of other points including the strategic use of data to enhance customer engagement and product offerings. It’s also just part one of two! There’s more on this fascinating area of the financial ecosystem coming soon.

The post Building a Bright Future for Building Societies | Part 1 | Mambu’s Banking Insights for Growth appeared first on FF News | Fintech Finance.

We hear how it could be used in other financial arenas and the challenges facing standardisation. Is a rebranding needed to get consumers onboard? And what is the true potential of this technology, particularly as we enter the PSD3 era?

Read on to find out more and be sure to head to Mambu’s latest blog for the full lowdown the transformative power of open finance and the opportunities it presents.

Open Banking Vs. Open Finance

What started as Open Banking has become Open Finance, something with broader implications and potential benefits.

Our two experts begin by making a distinction between Open Banking and Open Finance. While Open Banking primarily deals with payment initiation and access to accounts, Open Finance encompasses a wider range of financial products, including insurance and investments, something you can read more about on the UK’s official Open Banking website. This broader scope presents numerous opportunities, making it a hot topic in the financial industry. Both speakers emphasise that Open Finance aims to unify various financial instruments, providing a comprehensive view of a consumer’s financial landscape.

We also find out what the benefits of Open Finance are for both consumers and financial institutions. Krieger, who is Chief Information Security Officer at Mambu, says that for consumers, the ability to see various financial products in one place can lead to better financial decisions. The consolidation of financial information allows for improved visibility and oversight. Conversely, for financial institutions, having a holistic view of a customer’s financial activities enables them to offer personalised advice and reduce risks. This comprehensive insight can in theory lead to a better customer experience and competitive advantage for banks that adopt Open Finance early.

The Big Challenges

Hexaware’​s VP of Global Digital Banking and Business Development EMEA, Van De Venn, pointed out some of the challenges posed by the implementation of Open Banking and Open Finance, particularly around the standardisation required across multiple industries like pensions and investments. A clear regulatory framework is essential to ensure consistency and safety and both speakers note the importance of consumer education in addressing concerns about privacy and security. Frameworks, such as the PSD2 and subsequent PSD3 regulation, need to allow consumers to control what information they share and with whom, enhancing trust and adoption.

There’s also a possibility that the way the whole thing is framed, doesn’t help its perception, with ‘Open’ not necessarily being the best word to associate with an individual’s private data. Krieger therefore suggests ‘Smart Banking’ is possibly a better way of looking at it. Ultimately, effective communication about these regulations and their benefits is crucial for consumer adoption, along with a feeling of safety.

A number of other factors are discussed in the move towards greater adoption, including technological readiness required to make sure Open Finance works and the possibility of integrating AI to maximise its benefits.

This conversation ends with a call to arms for the financial industry to take customer education around this topic seriously, if it wants to reap the rewards and provide a better service to their customers. This in-depth look at the transformative potential of Open Finance and the steps needed to ensure its successful implementation and adoption, is yet another fantastic addition to Mambu’s Banking Insights for Growth series. Check out the previous episodes on our website.

The post The True Potential of Open Finance | Mambu’s Banking Insights for Growth appeared first on FF News | Fintech Finance.