Transforming Financial Services with Data-Driven Insights

  • “Banks and financial services institutions face increased competition not only from peer organizations within the industry, but also now from FinTech startups, Neobanks, and others. The way to compete is to deliver highly personalized services and innovative offerings. And increasingly, the way to do that is using AI/ML to derive data-driven insights upon which those services and offerings can be based.
  • The potential for industry disruption is enormous. Open banking enables the exposure of customer financial data via APIs, extending an organization’s reach far beyond traditional financial services institutions. The open banking market is expected to reach $43.15 billion by 2026, growing at a compound annual growth rate (CAGR) of 24.4% through 2026, according to Allied Market Research.”

Five Findings From FinovateEurope 2022

  • “Embedded finance is the buzzword of 2022, but unfortunately it’s still understood too narrowly, focusing on the not-so-innovative expansion of distribution channels. And embedding financial products into customer journeys isn’t easy, a challenge that mmob — another “Best of Show” winner — tries to solve with its partnership platform. But there’s a bigger opportunity around bank-as-a-service solutions (as Crassula demoed)
  • Embedded finance is just one of the many open finance use cases that, if done well, should offer customers more choice, relevant products at the point of need, automated and invisible services, and more control of data for better financial outcomes. It also needs more fintech innovation in the areas of digital identity, data aggregation and analytics, and actual value-added services built on top of those”

Apple Acquires U.K. Financial Health Startup Credit Kudos

  • “Credit Kudos lets businesses assess loan applicants by analyzing banking data, such as user transactions, and offers a service for potential borrowers to assess their credit worthiness.
  • Apple has been escalating its push in payments in recent years, launching the Apple Card in the U.S. in 2019 and rolling out Apple device installment plans on the credit card later that year.
  • It also offers the Apple Cash card for digital peer-to-peer payments and is working on a service for Apple Pay that would let people buy things and pay them off later in installments
  • In February, Apple confirmed plans to release its much-anticipated Tap to Pay feature on the iPhone later this year, giving merchants an alternative to Block Inc.’s Square technology.”

Klarna launches new Klarna Kosma division for its open banking platform

  • “Klarna Kosma is an API that other companies can integrate in their apps and services. These companies can leverage Klarna’s API to access account statements, initiate payments, fetch banking information and refresh this data regularly.
  • Klarna is better known for its “buy now, pay later” products. In some countries, Klarna lets customers connect to their bank account to give spending insights and establish a sort of credit score before letting customers buy something in multiple installments. With today’s move, Klarna is opening up its in-house product to other customers.
  • In addition to Account Information Service (AIS), Klarna Kosma customers can also programmatically initiate payments with compatible banks. That has always been the long-term promise of open banking. If payment initiation takes off, it could replace card payments or e-wallets like PayPal. We’re not there yet, but Klarna definitely wants to have a product ready if we get there.”

Sibos 2021: Swift, Deutsche Bank, Société Générale and C3.AI to collaborate on AI platform

  • “On day two of Sibos 2021, representatives from Swift, Deutsche Bank, Société Générale and C3.AI took to the virtual stage to explore how collaboration and establishing a community between banks can support the deployment of artificial intelligence (AI) at scale.
  • Aggregating data, however, can ensure that the utilisation of this data is accurate, and decisions are based on predictive systems. Further, aggregating non-personally identifiable information (non-PII) data between banks in a secure, encrypted manner can ensure clear forecasts to create the ‘next best product’ and then, the ‘next best offer,’ which is what the AI platform will aim to do.”