Taranis on pioneering ethical investments and support for fintech success page 14
EVENTS
Cvent discusses how to master personalisation with data integrity page 17
TECHNOLOGY
How AI and biometrics are helping to turn the tide on banking scams page 18
BOOK REVIEW
Crypto Confidential: An Insider’s Account... by Jake Donoghue page 22
Empowering fintech growth
Matouk Bassiouny takes its fintech expertise to the United Arab Emirates page 6
From tradition to tech
Ahmad Wadi of Money Fellows on transforming age-old financial practices into a global fintech solution page 10
Smart living evolution
Sarah Koch at Aevi explores whether unattended services are the future of smart buildings page 8
How to approach DORA
As the fintech industry faces new legislative hurdles, we look at how to stay ahead of the curve
COMPLIANCE COUNTDOWN
Preparation and resilience is key explains Giles Inkson at NetSPI page 9
Sustainability
in the Middle East
Nina Saleh at ecolytiq reveals the right path to a greener future page 20
Tech-driven mortgages
finova outlines how it aims to streamline UK mortgage processes page 21
BRINGING FINTECH TO THE WORLD
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REDEFINING THE RULES
Regulatory changes aren’t just about ticking compliance boxes – they’re reshaping the way businesses think, operate and innovate. As new requirements come into play and legislative efforts continue to evolve, the future of fintech is being actively redefined.
In this edition of The Fintech Times, we explore how companies are not only adapting to these shifts but also leveraging them to push the boundaries of technology and enhance customer experiences.
Polly Jean Harrison dives into the crucial upcoming regulations that every fintech leader needs to grasp. From the Digital Operational Resilience Act (DORA), which will soon impose stringent requirements on financial institutions across the EU, to the Markets in Crypto Assets Regulation (MiCA), set to standardise crypto asset markets, as well as PSD3 and emerging AI regulations, these legislative changes collectively demand significant attention and investment from fintechs aiming to stay compliant while continuing to innovate.
With sustainability continuing to be a significant focus, Nina Saleh from ecolytiq discusses how Middle Eastern banks are
leading initiatives to integrate environmental responsibility into their operations. Her analysis highlights both the progress made and the challenges that remain, particularly in regions where regulatory standards are still evolving.
Regulation isn’t just reshaping the fintech sector; it’s also influencing the real estate industry through the growth of proptech. As a key theme in this issue, proptech – the integration of technology within the property sector – is transforming how real estate is bought, sold and managed.
REGULATION ISN’T JUST RESHAPING THE FINTECH SECTOR; IT’S ALSO INFLUENCING THE REAL ESTATE INDUSTRY THROUGH THE GROWTH OF PROPTECH
The global proptech market, valued at approximately $19.5billion in 2022, is projected to nearly double by 2030, according to Zion Market Research. Some forecasts are even more optimistic, predicting the market could reach nearly $120billion by 2032, driven by a
compound annual growth rate (CAGR) of 16.5 per cent.
This expansion is fuelled by the increasing adoption of AI, big data and digital transformation within real estate. Historically slow to embrace new technologies, the property sector is now leveraging these tools for smarter decision-making, enhanced analytics, and more efficient property management.
Yet, as with fintech, the digital transformation in real estate brings its own set of regulatory challenges, especially as these technologies intersect with data privacy and financial laws.
In this issue, we hear insights into the challenges shaping the future of proptech. Finova, a mortgage origination software specialist, shares how its platform is streamlining the UK mortgage process, balancing efficiency with compliance. Meanwhile, Sarah Koch from Aevi offers a forward-looking perspective on the potential of unattended services in smart buildings – a trend that could redefine property management.
Happy reading! Claire Woffenden, editor in chief, The Fintech Times
Fintech regulation you need to know about
Fintech companies face a regulatory landscape that’s anything but static, with new rules and guidelines emerging that could define the industry’s future. Polly Jean Harrison , features editor at The Fintech Times, sheds light on the crucial upcoming regulations that every fintech leader needs to grasp
Sdriving innovation and maintaining the industry’s integrity.
THRIVE AND GROW
For fintech firms, mastering regulatory challenges isn’t just about compliance – it’s a foundation for growth. Regulation and innovation must work hand in hand for the industry to truly thrive.
Leo Labeis, founder and CEO of regulatory reporting platform REGnosys, stresses the urgency of this, saying that regulation should be a top priority for fintech companies.
ometimes it feels like regulation can be as divisive as Marmite. Some hate it, some love it. Whether seen as a necessary discipline or an obstacle to agility, regulation is unavoidable in the fintech world. While it can be taxing to navigate, robust regulations are essential for
“The need to comply with these evolving regulatory requirements has put regulatory compliance at the top of the agenda for many firms. The risk of non-compliance can lead to financial penalties, operational disruption and market access restrictions.”
He continued: “This year being one of regulatory changes means firms must get on board with modern reporting solutions sooner rather than later to ensure compliance and future-proof their operations.”
Given this, it’s clear that the regulatory landscape is in a state of constant evolution. New rules and requirements are regularly introduced, and this year is no exception. Europe, in particular, is implementing several key pieces of legislation aimed at enhancing both the growth and security of the fintech industry.
FINANCIAL STABILITY
The Digital Operational Resilience Act (DORA) is one of the most urgent regulations set to take effect across the EU, becoming enforceable on 17 January 2025, after two years of preparation. The act is designed to standardise practices and bolster financial stability amid the ongoing digital transformation and rapid growth of the fintech sector. DORA places a strong emphasis on security, requiring firms to implement robust risk management frameworks, conduct thorough ICT testing, and effectively manage third-party ICT risks. “This regulation is critical as it compels fintech to enhance their cybersecurity measures and operational robustness,”
Lasma Kuhtarska, co-founder and chief strategy officer at Noda, a payments processor, said, “which are vital
in mitigating disruptions and protecting consumer data.”
Gil Shiff, co-founder and COO of digital trade financing solution, 40Seas, added: “By complying with DORA, fintechs can not only safeguard their operations but also build greater trust with customers and partners, enhancing their competitive edge in the market.
“Additionally, DORA’s emphasis on transparency and reporting means that fintechs will need to be more proactive in identifying and addressing vulnerabilities. In a sector where innovation is rapid and the stakes are high, DORA provides a structured approach to ensuring that fintechs are not only agile but also secure, reliable, and capable of sustaining long-term growth in the face of unprecedented digital disruptions.”
THE INVESTMENT CHALLENGE
While these regulatory measures aim to strengthen the financial sector, compliance with DORA demands substantial IT and cybersecurity investments, which could be particularly challenging for smaller fintechs.
Will Mitting, founder of Acuiti, a market intelligence company, highlighted this concern: “There is significant work to be done by firms across the market to be ready for DORA. Currently, the operational resources required to meet the requirements of DORA is the biggest challenge facing most firms in the market in terms of their preparations for compliance.
The industry will need to work together with vendors to streamline processes such as information requests in order to reduce the operational burden.”
To raise risk tolerance and ensure resilience, fintech companies must take a proactive approach and begin their preparations sooner rather than later.
“As the January deadline for DORA approaches, banks have the legislation top of mind – and if they don’t – they should,” said Prakash Pattni, MD, financial services digital transformation, IBM Cloud at IBM.
“It’s critical that fintechs align their practices accordingly to support resilience in the financial services sector and business continuity, or risk being left behind.”
PROTECTING CRYPTO CONSUMERS
Another significant regulation in the European Union is the Markets in Crypto Assets Regulation (MiCA), which came into effect in June this year, with additional provisions set to be enforced by 30 December 2024.
MiCA introduces uniform market rules across the EU for crypto assets, covering those not currently regulated by existing financial services legislation. The regulation prioritises consumer protection, promoting transparency and establishing clear guidelines for the issuance and operation of digital assets.
While MiCA theoretically paves the way for innovation and broader adoption of crypto technologies, it also imposes strict compliance requirements that may be challenging for firms to navigate.
“These regulations represent a significant milestone for the crypto industry, but reactions are mixed,” says Meryem Habibi, chief revenue officer at cryptocurrency platform Bitpace. “Industry players fear that MiCA’s rules might stifle innovation, particularly in the stablecoin sector, due to high compliance costs and restrictive measures. Smaller companies may struggle with these expenses, potentially allowing larger players to dominate the market.
However, Habibi also noted the potential benefits of MiCA: “MiCA’s framework also promises benefits by unifying fragmented regulations across EU member states. This could streamline cross-border transactions and foster a more integrated and efficient market. For businesses, strategically
incorporating MiCA’s guidelines into their operations can reduce regulatory risks and enhance market competitiveness.
“While compliance poses challenges, standardised regulations under MiCA could ultimately catalyse innovation by levelling the playing field. A stable regulatory environment is essential for building trust and confidence in the industry. MiCA’s successful implementation may serve as a model for global regulators, marking a pivotal moment in the evolution of the European crypto payment industry.”
CLEAR COMPLIANCE
Despite the criticisms surrounding MiCA, “the importance of having clear, understandable guidelines cannot be underestimated,” said Jess Houlgrave, CEO of WalletConnect, a developer toolkit provider.
“Entrepreneurs and founders in Europe know where they stand when it comes to regulations, this gives them the security to put down roots and build. If we look at the situation in the US, there is mass confusion between officials in government resulting in builders fleeing to Europe and Asia. Although there
technical measures to curb Authorised Push Payment (APP) fraud,” said Frederik Mennes, director of product management and business strategy at OneSpan, a cybersecurity technology company.
“Financial regulators are very actively publishing regulations related to financial services. These regulations currently focus primarily on tackling novel types of financial fraud like APP fraud and mobile banking fraud, as well as strengthening the cybersecurity posture of financial institutions.”
“The regulations generally force financial institutions to invest in countermeasures against financial fraud, as well as to strengthen their overall cybersecurity posture. Financial regulators want to ensure that fraud and security risks remain under control so that the financial system remains trustworthy. Lack of trust in a part of the financial system could have a significant impact on the overall economy in a certain country.”
THE DAWN OF AI
While still emerging, it’s evident that artificial intelligence regulation is on the way, driven by its rapid growth over the last few
“WHILE COMPLIANCE CAN BE PARTICULARLY CHALLENGING FOR SMALLER PLAYERS, IT’S MORE CRUCIAL THAN EVER TO PREPARE AND ENSURE YOU’ RE MEETING ALL REGULATORY REQUIREMENTS”
may be higher compliance costs, some will be happy to accept these if it means they know what they can and can not do.”
PAYMENT HARMONY
In Europe, after the long-awaited implementation of PSD2 (the second Payment Services Directive), PSD3 is now on the horizon. An evolution of PSD2, PSD3, along with the Payment Services Regulation (PSR), is set to significantly impact banks, fintechs, payment service providers and customers, with the goal of “further harmonising the payment market and reducing national disparities”.
Scheduled to take effect in 2025, the proposed changes aim to level the playing field between banks and non-banks, particularly by granting non-bank payment service providers safe access to all EU payment systems.
“This regulation, which is the long-awaited successor of the Revised Payment Services Directive (PSD2), requires financial institutions to implement various
conversational AI platform Druid AI, noted: “AI technology is clearly what’s top of mind for banking executives as a recent PwC survey found that AI skills are in high demand in the industry. With the US leading in AI development, we’re already seeing great development progress here with a great appetite for more personalised experiences with AI and the wealth of resources available fueling this innovation in financial services and other industries.
“Prospective AI regulation proposals are currently on the horizon in the US at the state and federal levels, but ultimately it won’t hinder the ability for businesses to continue to develop and flourish. What it will instead lead to in the US is extra work that’ll be required of individuals and companies that wish to use or sell AI technology so that they can ensure compliance with any regulations on the books. Europe will actually be the area that sees the greatest regulatory and legal challenges due to concerns in the EU with personal data privacy and GDPR rules.”
A BUSY YEAR AHEAD
years, prompting potential crackdowns from industry bodies.
Pete Foley, CEO at AI governance software providers, ModelOp, commented: “The EU AI Act is a much-needed, pioneering regulation that should be on everyone’s radar in the industry. It sets a global standard for trustworthy AI, emphasising transparency, safety, and the protection of fundamental rights. Its risk-based approach is a smart and efficient method for balancing safety and innovation that many risk and governance frameworks advocate – tiering AI initiatives into unacceptable risk, high risk, and limited risk.
“The goal of the legislation is to drive responsible innovation, and organisations must rapidly establish a set of minimum viable governance capabilities to comply with the legislation. It’s a good start, but it is still early.”
AI ACROSS THE POND
In the US, the story is similar. Bill Schwaab, VP of North America at
No matter where you stand in the industry, these upcoming regulations mean you’ll likely have significant work to do. While compliance can be particularly challenging for smaller players, it’s more crucial than ever to prepare and ensure you’re meeting all regulatory requirements.
As Nigel Every, director at global business consultancy, Protiviti, points out: “Regulators have attempted to facilitate innovation in the fintech sector with lighter touch regulation, particularly for newer fintechs, and to balance this against the crucial need to protect the economy and consumers as these firms mature and become important companies in their own right.
“The first step for any fintech will be to implement horizon scanning to identify new and emerging regulation to allow timely forward planning; it will need to be combined with a global repository of applicable legislation mapped to controls and supported by an internal culture of compliance.
“This is somewhat counter to the “move fast and break things” culture of some innovative firms but is now essential to manage through the complexities of today’s regulatory landscape.”
Empowering fintech growth: Matouk Bassiouny ’ s UAE expansion
As the Middle East and North Africa (MENA) region continues to grow and innovate, Matouk Bassiouny has not only established itself as Egypt’s leading legal institution but has also become a key player in the burgeoning fintech sector. Honoured as Egypt’s national law firm of the year 2014, 2016, 2017, 2020, and 2023 by the International Financial Law Review, Matouk Bassiouny’s narrative takes a compelling turn with the establishment of its fintech department. A significant milestone unfolded in 2020, solidifying the firm’s unmatched position for fintech legal services in the region. With the aim of dedicating his professional career to fintech, Mohamed Essam, a Partner in Matouk Bassiouny and head of fintech and emerging companies and venture capital (FECVC), stands as one of the very few attorneys who introduced fintech in Egypt. With nearly a decade of expertise in both technology and financial technology, he continues to shape the landscape of this dynamic industry. Matouk Bassiouny’s foray into the fintech realm underscores its dedication to innovation and adaptability to meet the evolving needs of clients. In less than three years, the department has not only gained credibility but has also firmly established itself among the industry’s major players.
Matouk Bassiouny, renowned for its legal prowess in Egypt, is taking its fintech expertise to the UAE, introducing a one stop-shop service for fintech companies
The FECVC team redefined legal support by pioneering a groundbreaking one stop-shop concept, being positioned as the foremost legal counsel capable of addressing every client need in the legal realm. From doing business reports, incorporations, and operations to fundraising, managing licensing, handling litigation matters, securing venture capital, and even assuming the role of an in-house team, the FECVC team’s comprehensive suite of services eliminates the need for clients to coordinate with multiple legal advisors within each area of law.
The FECVC team stands out significantly in the market due to its exclusive day-to-day involvement in its clients’ matters and business work. By providing an all-encompassing solution, the FECVC team ensures and offers clients the advantage of a singular point of contact while maintaining the versatility to cater to their diverse legal requirements. Further, what distinguishes the FECVC department is its unique
blend of legal excellence and an in-depth understanding of each client’s product. With team members possessing technical backgrounds, their goal is to delve into the intricacies of clients’ products, providing legal protection that surpasses standard legal services. This innovative approach has not only expanded the team’s client base but also instilled a sense of security and confidence in an industry that is constantly evolving.
Having represented over 80 clients in both Egypt and the UAE, the FECVC team boasts a remarkable client portfolio. It has not only solidified its regional influence but also established itself as a benchmark for market practice. The FECVC team’s diverse clientele is a testament to its ability to meet the varied needs of industry leaders, demonstrating a capacity to provide tailored legal solutions across multiple sectors. Experience statements are available upon individual request, attesting to the team’s depth of expertise. The FECVC department currently dominates a significant portion of the market in Egypt and aspires to extend this influence throughout the MENA region.
In a strategic move in 2023, Matouk Bassiouny extended its FECVC department to the UAE, a clear indication of its commitment to fostering the FECVC sector. This forward-thinking move aligns seamlessly with Matouk Bassiouny’s overarching commitment to proactively embrace technological
advancements and adapt to the evolving needs of its clients.
TFT: How does the FECVC department uniquely support emerging fintech companies?
MB: The FECVC team is committed to nurturing emerging companies from inception to reaching the unicorn stage. Recognising the challenges faced by early-stage companies, Matouk Bassiouny takes a pioneering approach by offering discounts of up to 40 per cent for first-stage companies. This initiative is a testament to the FECVC team’s commitment to fostering innovation and ensuring that emerging players have access to top-tier legal services that propel them toward success.
TFT: What are the distinct services offered by the FECVC team across the different areas it works on?
MB: The FECVC department is distinguished by its key services spanning three vital areas: fintech, technology and venture capital. Within these domains, the team operates at the forefront of advisory services, offering unparalleled expertise to guide clients through the intricacies of their business endeavours.
In the fintech and technology sectors, the FECVC team leverages a unique blend of legal excellence and technical understanding. When it comes to venture capital, the FECVC team offers its services from the inception of ventures to guiding companies through angel investment rounds to full exits.
This distinguishes the FECVC team, showcasing its dedication to being a long-term strategic partner and a one stop-shop rather than just a legal advisor.
TFT: What is an example of one of the FECVC team’s clients experiencing the one stop-shop service?
MB: The FECVC department contributed to a transformative success story with one of the leading fintech companies in line with providing a rotating savings and credit association product (ROSCA). As the company approached the FECVC team with a new idea, our team led collaborative product roadmap sessions that conceptualised innovative legal structures, ensured the new idea is legally compliant with the applicable law, and secured necessary governmental approvals.
Matouk Bassiouny’s foray into the fintech realm underscores its dedication to innovation and adaptability to meet the evolving needs of clients. In less than three years, the department has not only gained credibility but has also firmly established itself among the industry’s major players
Afterward, the FECVC team seamlessly facilitated the incorporation of the corporate entity, setting up a distinctive profile within the industry. Our team assumed the role of lead legal counsel, steering the company through multiple investment rounds and actively engaging in day-to-day operations, including contracts and legal documentation. Today, this client stands as a testament to the firm’s commitment to nurturing startups from ideation to corporate excellence in the ever-evolving world of fintech.
TFT: Does the FECVC team extend beyond Egypt and the UAE?
MB: The FECVC team transcends borders, showcasing a truly international approach to its legal services. While being deeply rooted in Egypt, the FECVC team’s impact resonates globally, with the ability to advise on cross-border matters and restructuring including in the MENA region, Netherlands, and the United Kingdom. This expansive reach not only underscores the team’s adaptability to diverse legal frameworks but also reinforces the FECVC team’s commitment to
providing tailored and strategic counselling on an international scale. Clients benefit from the team’s deep understanding of legal intricacies across multiple regions, solidifying Matouk Bassiouny’s position as a trusted partner for ventures with a global footprint. On an important note, the FECVC team’s venture into the UAE marks a thrilling chapter in Matouk Bassiouny’s story. The FECVC team has assumed the role of lead counsel, heading strategic legal services for major fintech players in the areas of cross-border remittance, digital lending, venture capital funds, crowdfunding, ROSCA, and payment companies. This expansion signifies not just a geographic reach but a commitment to contributing to the future of fintech and venture capital in a new and dynamic market. Matouk Bassiouny is enthusiastic about the opportunities this move brings, poised to elevate our contribution and expertise to further empower businesses in the UAE We anticipate a chapter of innovation,
growth, and success as we embark on this exciting journey. Unlock tailored legal support, designed based on your company’s scale and fundraising stage, with our exclusive packages and retainer options. Elevate your journey with the FECVC team’s one stop-shop concept, and rest assured; your success is the FECVC team’s goal!
■ Connect with the FECVC team, via mohamed. essam@matoukbassiouny.com and shape the future of your business.
FINTECH DRIVES SMART LIVING EVOLUTION
Sarah Koch , director of marketing and communications at Aevi , a platform provider for in-person payment orchestration, explores whether unattended services are the future and success of smart buildings
Let’s consider this very real possibility, where your home anticipates your needs, your refrigerator restocks itself, and where EV charging is as simple as parking. This is the future of urban living, and more specifically, the future of smart buildings.
As the European smart city market expands at an unprecedented pace, these hightech havens are poised to become the standard in urban dwellings.
The integration of unattended services within apartment blocks stands at the forefront of this, enabling residents to pay for goods and services at source. How can this be successfully achieved, and what software is required?
Finally, how can unattended payments in smart buildings protect our privacy and ensure our safety?
HOW DO SMART BUILDINGS WORK?
At the core of every smart building project is the internet of things (IoT). Through advanced connectivity and the potential to leverage AI technology, IoT can seamlessly integrate new in-person payment solutions. This is a critical aspect in the effective implementation of unattended services.
pay for services at source, while simultaneously collecting all the data, which can be analysed to further enhance residents’ user experiences, making them even more attractive to investors.
INTEGRATED EV CHARGING STATIONS RIGHT AT YOUR DOORSTEP
Smart buildings are adopting multiple in-person payment methods such as contactless, mobile wallets, and blockchainbased transactions; this is required in order to cover all bases and satisfy the residents’ every need. All payments can be managed through a centralised app, which can handle everything from utility bills to paying for amenities and services, simplifying and even managing the residents’ finances.
Just as smart buildings use digital sensors to connect with software and gather data to enhance the experience for their occupants, self-service payment terminals provided by Aevi’s third-party partners can be integrated into various unattended services within these buildings.
This includes EV charging points in car parks and intelligent refrigerators. This innovative integration allows residents to
The use of EVs is clearly skyrocketing among consumers, especially in urban areas. However, one of the most significant challenges for EV owners is gaining instant access to charging solutions. Smart buildings are able to address this growing need by incorporating charging points within their parking spaces, so residents can easily plug in their vehicles and pay for the charging service directly at the source. These systems use smart meters and mobile apps that can not only track usage, but also allow residents to manage payments with ease. Integrating EV charging into residential complexes allows smart buildings to cater to the growing demand for sustainable transport, while also enhancing property value.
FUTURISTIC HOME APPLIANCES
Perhaps not too far in the future, most of us will become very familiar with this ground-breaking innovation: intelligent refrigerators. In a feat of technological advancement, the
SMART BUILDINGS ARE ADOPTING MULTIPLE IN-PERSON PAYMENT METHODS SUCH AS CONTACTLESS, MOBILE WALLETS, AND BLOCKCHAINBASED TRANSACTIONS IN ORDER TO COVER ALL BASES AND SATISFY THE RESIDENTS’ EVERY NEED
time will soon come where your fridge knows what you need and arranges for it to be delivered without any manual input. These futuristic appliances are equipped with sensors and connectivity features that allow them to interact with other devices and platforms. They stay one step ahead by tracking their contents, monitoring expiration dates, and even placing orders for groceries when supplies run low. Effective payment management is clearly key for these to run efficiently. Residents are able to pay directly through the refrigerator’s interface using secure, in-person payment solutions. This level of automation is designed to not only simplify household management, but also to reduce waste for a more efficient use of resources.
ENHANCED SECURITY AND ENERGY EFFICIENCY
Beyond convenience, unattended
services in smart buildings also enhance security and energy efficiency. Advanced access control systems can grant a higher use of security by using biometrics and mobile credentials to give access to residents and authorised personnel only.
However, the same security systems can also be integrated with multiple building management systems to optimise energy consumption. For instance, smart lighting and HVAC systems can adjust settings based on occupancy and weather conditions, thus significantly reducing energy consumption, lowering the residents’ utility bills and contributing to a more sustainable building.
WHAT’S IN STORE FOR THE FUTURE Smart buildings offer a glimpse into our future, but they come with significant challenges. Chief among these are data security. Unattended payment systems rely on collecting and analysing large amounts of data, making robust cybersecurity and transparent data policies essential. Our homes, where we expect to feel safest, become vulnerable if these issues are not properly addressed. Another challenge is the initial cost of implementing smart technology. Although upfront expenses can be high, the longterm benefits, such as increased convenience, efficiency and sustainability, often justify the investment. As technology progresses, we can expect costs to decrease, making these solutions more accessible to everyone. Looking ahead, the promise of smarter, safer homes is certainly within reach. As we overcome these challenges, we move closer to a future where our homes are not just secure havens, but also exciting centres of advanced convenience, thanks to unattended payment technology.
https://aevi.com
HOW TO APPROACH DORA WITH A PRAGMATIC MINDSET
In a world inundated with various frameworks, adding DORA to the list can be overwhelming and knowing where to begin can be a daunting process.
What’s more, conversations around DORA are mounting, but it’s important to remember that the act is already in force as of 14 December 2022. The key date financial institutions have been working towards since then, is 17 January 2025, when its operational mandates will become effective. With only a few months to go, businesses may be feeling the heat, or concerned for what it means. Despite what the headlines might say, the moment 17 January kicks in, not all organisations will be expected to have everything in place. However, they should be making significant progress, and able to evidence their approach and knowledge of gaps, with a plan to close them.
By Giles Inkson , director of services EMEA, NetSPI
framework by their monetary authorities or TCTs. This may give them up to three years to be ready, or you may be facing the challenge in the first year – the best approach is always to gear towards doing this as soon as possible internally and with 3rd parties and be ready for when the time comes. What is important is that businesses get prepared now, talk to trusted testing partners, and gather threat intelligence as soon as they can.
But what does ‘making progress’ mean in real terms? Let’s delve deeper into the realities of how DORA will impact businesses and some practical strategies for managing the legislative framework more effectively from today.
Don’t panic
Firstly, don’t panic. By the ‘DORA deadline’, organisations will be expected to prove they are making strides in their operational capabilities and processes. For example, they should be able to demonstrate yearly resiliency testing and red teaming in place. They may also be asked to perform a red team exercise aligned with the TIBER
To put DORA’s impact into perspective, consider the sweeping changes to data privacy brought by GDPR. While DORA’s immediate impact may not be as profound (possibly around half of the impact GDPR has had at a financial penalties level), its focus on ICT processes to support enterprise operational resilience is critical in today’s digital landscape.
Build a best practice framework and share knowledge
Businesses need to make sure they have evidence on a rolling basis that they are testing. These tests must encompass both enabling ICT systems and the entire organisation as an entity, as well as its supply chain and the market it serves. This approach not only enhances resilience, but also aligns with DORA’s emphasis on industry-wide knowledge sharing and cooperation between peers.
DORA will create standardised processes and a centralised EU reporting hub to improve the flow of information around significant
incidents. That means if a business, one of its partners, or competitors detects suspicious activity, the industry can offer insight around how to respond. Individual companies contributing to this shared knowledge base will bolster EU-wide situational awareness and harmonisation around real and perceived threats and mitigation activities. In addition, DORA combines long-standing initiatives by the ECB, such as TIBER testing and red teaming, into a legal framework that enforces good practices. These are being administered by three monetary authorities (ESAs): EBA, EIOPA and ESMA. It mandates that all financial institutions, including those new to such requirements like crypto exchanges and small wealth management firms, comply with its standards as well as the big banks and
THE
PROSPECT OF DORA CAN SEEM DAUNTING BUT THE REALITY IS, ‘THOUGH WELL-STRUCTURED,
IT IS LESS COMPLEX THAN PREVIOUS COMPLIANCE FRAMEWORKS
insurers or payment providers. By implementing a robust testing framework and actively participating in knowledge sharing, financial institutions can meet DORA’s requirements effectively and contribute to a more resilient industry overall.
Don’t admit defeat with DORA The prospect of DORA can seem daunting but the reality is, ‘though
well-structured, it is less complex than previous compliance frameworks. To support DORAreadiness, organisations should engage with suppliers offering DORA-compliant testing schemes when the expertise and resources to carry out the tests are not available within an organisation.
A positive sign is that many businesses are already conducting dry runs and preparatory tests. This is helping organisations get comfortable with the process of these tests, and also puts them in a position where they may be viewed favourably by some of the TCTs and ESAs when they are asked to perform the bigger, regulated TIBER tests. This has been a big initiative to encourage organisations to prepare themselves ahead of the compliance deadline. The clock is ticking, but proactive steps now will ensure readiness by January 2025 – think of it not quite as a snooze button for said clock, but waking up naturally before the alarm.
While DORA is mandatory and presents new compliance challenges, it is not a burden; it is structured to be manageable and regulated resiliency testing has proven to be some of the most valuable testing undertaken by organisations who do it. Through building a robust testing framework, sharing knowledge, and leveraging existing compliance schemes, financial institutions can navigate these requirements effectively. Remember, preparation from today and continuous improvement are key to successfully managing DORA compliance.
FROM TRADITION TO TECH
Ahmad Wadi , CEO of Money Fellows , shares his entrepreneurial journey between Egypt and the UK,
transforming age-old financial practices into a global fintech solution
Fintech has become a crucial tool for addressing financial inclusion, especially in regions where traditional banking infrastructure is limited or inaccessible. In markets like Egypt, where a significant portion of the population remains unbanked, innovative solutions are emerging to meet these unique challenges.
Money Fellows is at the forefront of this change, reimagining the concept of collective savings by digitising traditional money circles. The platform not only offers new ways for people to save and access credit but also revitalises and modernises community-based financial practices that have long been embedded in local cultures.
Ahmad Wadi, the founder and CEO of Money Fellows, sat down with The Fintech Times to share his insights on the intersection of tradition and technology, his entrepreneurial journey, and the future of fintech in emerging markets.
TFT: Tell us about yourself and your career journey.
AW: I’m Ahmad Wadi, the founder and CEO of Money Fellows. I studied computer engineering and started my entrepreneurial journey in 2007. My first project, an objecttracking software, caught the attention of companies like Microsoft and Daimler, leading to several collaborations with them. After completing my bachelor’s and master’s degrees at the Technical University of Munich, I launched an online supermarket platform in 2013. In early 2016, I moved to the UK to launch Money Fellows, inspired by traditional money circles from my country, and later returned to Egypt to continue developing the company.
TFT: Introduce us to Money Fellows, what it does and
how the company has evolved.
AW: Money Fellows is the world’s first and largest mobile app for Money Circles. Our goal is to empower communities by providing accessible and innovative financial solutions. We leverage the traditional ROSCA (rotating savings and credit associations) model, adapted with modern technology, to facilitate savings and credit among groups of people.
The idea of Money Fellows came to me back in 2016, when I was in Germany and trying to save money and get access to credit. This wasn’t easy as I wasn’t born in Germany, and I struggled to find ROSCAs. This made me think: Why can’t I modernise and digitise this very ancient and traditional money saving model that I’ve always seen back home – Gam’eya – and give people all around the world the chance to partake in ROSCAs together.
devaluation, whilst constantly working on providing diversified options to mitigate these effects. Another thing would be ‘financial inclusion’, which remains a hurdle, with many unbanked individuals lacking access to essential services; we address this by leveraging mobile technology and engaging communities to build trust. This part of our mission coincides perfectly with that of the Central Bank of Egypt’s financial inclusion growth strategy. An underdeveloped payment infrastructure can hinder user experience, so we form partnerships and multi-front innovate payment methods to improve accessibility for our users. Lastly, limited access to financial data restricts personalised services, which at Money Fellows, we overcome by employing advanced data analytics and ensuring privacy to foster trust. We believe that
AS THE CEO, I’VE FACED SEVERAL CHALLENGES SINCE STARTING OUR FINTECH COMPANY, WHICH CONTINUE TO SHAPE OUR JOURNEY.
ONE MAJOR HURDLE IS THE LACK OF FINANCIAL LITERACY AMONG POTENTIAL USERS, LIMITING ENGAGEMENT AND INFORMED DECISION-MAKING
TFT: What are the latest hot topics and major talking points in your market?
AW: Well, as a CEO of a fintech company in Egypt, I’ve seen how devaluation, financial inclusion, payment infrastructure, and information banking are, both, challenges and opportunities in our mission to provide affordable financial solutions.
Currency devaluation affects users’ financial stability, prompting us to educate them on smart savings strategies such as providing a worthwhile solution that incentivises their savings to help protect their wealth from said
by tackling these challenges, we can enhance financial well-being and drive economic development in the market.
TFT: What are your proudest moments/success stories at Money Fellows so far?
AW: Some of my favourite milestones were when we’ve reached the first 100,000 users, another one was when we hit the $1billion mark, in transactions: both marking major successes in our journey. But by far my favourite would be working with the CBE to design a set of controls that aims to shape the regulatory
framework for our financial model as the pioneer in the market.
TFT: What have been the biggest challenges in your journey so far?
AW: As the CEO, I’ve faced several challenges since starting our fintech company, which continue to shape our journey. One major hurdle is the lack of financial literacy among potential users, limiting engagement and informed decision-making. To address this, we implement educational programmes, transparent communication assets and provide resources within our app. Building trust in fintechs is another challenge, as changing customer behaviour requires us to focus on transparency and security, while sharing success stories to establish credibility. Additionally, the absence of a comprehensive national regulatory framework in our highly regulated industry creates uncertainty and compliance issues, which we tackle by engaging with regulators. By addressing these challenges, we aim to ensure our users have a safe and beneficial experience while driving growth and success.
TFT: What are your future plans?
AW: Our future plans include launching new products and features such as our very own Prepaid Card that will offer users a convenient and secure way to manage their funds. We’re also introducing an Investment Solution, giving users access to diversified portfolios to help them grow their savings and achieve financial goals. Additionally, we’re expanding into neighbouring countries. At the moment, we’re conducting market research in potential markets like Saudi Arabia and
Morocco, forming partnerships with local financial institutions, and adapting our services to meet regional needs.
TFT: What are your interests ‘beyond work’ eg hobbies/ interests etc.?
AW: I try to find balance in life through my personal hobbies and interests. For instance, I have a passion for motorcycle riding. It offers a sense of freedom and adventure, allowing me to explore new territories in a different light, and it helps clear my mind. I guess I’m drawn to activities that provide an adrenaline rush, in a way thrilling experiences keep me energised and focused.
I genuinely believe maintaining a healthy lifestyle is crucial, it’s even a part of the culture we’re cultivating in Money Fellows. I prioritise regular exercise and a balanced diet to ensure sustained energy levels, which helps me lead effectively.
These interests not only enrich my personal life but also contribute to my professional success by keeping me motivated and centred.
AT A GLANCE
Money Fellows is the world’s first and largest mobile app for Money Circles. Since its inception in 2018, it has transformed informal finance by digitising the familiar ROSCA model, earning the loyalty of over seven million users interested in a modern approach to peer-to-peer borrowing and saving.
Money Fellows combines the simplicity of community practices with cutting-edge technology. Through the app, users enjoy a seamless process, efficient and secure payments, and the peace of mind knowing they are in good hands, for choosing a trusted service provider, under the supervision of the Central Bank of Egypt’s Regulatory Sandbox. The app offers a variety of financial solutions, all built on the original ROSCA model; smart cash and credit management, high-yield savings, and a timely payment system. With the efficient credit assessment process set by the CBE and binding contracts with all users, the platform assures that every user enjoys their maximum financial potential, while maintaining privacy and security.
This all-in-one platform is available to all Egyptians over 21 with a valid ID – banked and unbanked, to download for free and start a seamless financial journey. Website: moneyfellows.com
Challenges and trends in the property technology sector, with advice for startups focusing on developing proptech solutions for the real estate market
The proptech sector is experiencing a pivotal shift as rapid advancements in technology reshape how real estate is bought, sold and managed. However, along with these innovations come significant challenges that industry leaders must navigate to ensure sustained growth.
To shed light on these issues, we asked industry experts to share their insights on the biggest challenges, trends and issues currently facing the proptech sector, as well as a roadmap for navigating the challenges and opportunities in proptech.
J“All proptech startups should think about the customer first. Whether they’re buyers, sellers, agents, or investors, solving their problems should be top priority. The sector is highly regulated all over the world, and I think that new-age technologies such as Web3 and AI are the key to any viable and positive change. Companies should be brave in implementing this technology.”
Natalia Karayaneva, co-founder and CEO of AI and blockchain-powered real estate platform Propy
Z“Real estate is struggling financially. Every cost has gone up massively - taxes, insurance, compliance, labour, energy, and, of course, interest rates. At the same time, commercial real estate has seen a collapse in revenue, and residential has only seen modest revenue increases. This means most buildings are just at varying degrees of financial struggle. So, going to these operators and asking for money has never been harder. The companies we see having record quarters over the last year seem to be driving sizable cost reductions in a very measurable and accountable way. If you can’t do that right now, it’s VERY hard to get many buildings to open their pocketbooks.”
Lee Hoffman, co-founder and president of Runwise, a US climate tech company
J“Leveraging AI meaningfully is a major challenge and opportunity. Other issues include commission compression due to the National Association of Realtors (NAR) lawsuit, economic and market volatility, especially in this particular election year. Instead of focusing on more top of funnel tools like lead generation, we should be working to understand the needs of established, successful agents and teams. Identifying what truly matters to them is crucial.”
Sam Kasle, founder and COO at Radius, a proptech real estate brokerage
Z “Developing a proptech solution for the real estate market requires not only an impressive front-end design but also a powerful infrastructure capable of connecting with multiple companies and technologies within the real estate ecosystem. This ecosystem includes operational components like property management systems (PMS) and allin-one platforms. On the other hand, it encompasses price engines and advanced booking systems relevant to short-term rentals. Additionally, integrating payment solutions is crucial for streamlining transactions and ensuring a seamless experience across the entire real estate ecosystem.”
Ran Cohen, co-founder and CEO of BridgerPay, a payment operations platform
3“One significant challenge in the proptech sector is the integration of new technologies with existing systems and processes. Ensuring compatibility can be complex and resource-intensive, and it’s key for proptech businesses to work in collaboration to create user-friendly integrations to streamline the adoption process. Data security and privacy are also critical concerns, given the highly sensitive nature of real estate transactions. Providing integrated technology solutions with usercentric data policies are the way forward.”
Mikus Opelts, CEO and founder at Giraffe360, a proptech startup specialising in real estate visualisation
Z“It’s important to invest in your culture from day one. For us, we knew we needed a culture that supports open and honest dialogue, with a supportive feedback loop. If people don’t feel comfortable suggesting the big, market-disrupting ideas, you’ll never hear them, and you won’t push the boundaries of what’s possible. We’ve worked hard to create a business filled with people willing to challenge the norm. Collaboration across teams and with external stakeholders is crucial to creating solutions that really hit the mark. We let data and collective decisionmaking drive our innovations now and it works well to get to the right solution. Lastly, don’t forget about the power of face-to-face. We have a flexible working model, but you can’t beat a session with everyone in the room to find the big ideas or challenge what’s on the table.”
Ben Ridgway, co-founder, iamproperty, a provider of technology solutions to UK estate agents
3“My advice to proptech startups is that they must tackle a genuine problem, and really understand what their customers are looking to do. And think about how it will work further down the chain. How does the solution you are offering a customer help them with their customers? From the outset, it is crucial to focus on the best business model. Cash flow is a challenge for all innovative firms implementing new technologies and particularly so in the property sector where there can be a huge time delay between a property going on the market and completing. It is essential to consider not only how to be flexible around cash flow for your customers but also how your business can maintain cash flow. It’s a fine balance. It is important that startups don’t try to do everything at once. Focus on one problem, fix it and build out the business at a later stage.”
Annie Fleming, business advisory director at UK accountancy and business advisory firm Johnston Carmichael
3“Something affecting technology globally, and proptech is no different, is that AI is becoming a ubiquitous term within technology. While some companies are harnessing their power very effectively and driving value to their customers, many are slapping the ‘AI’ tag on their company to keep up with the trend and entice investors and customers. While AI can be very valuable, it still has considerable limitations, and not all AI is created equally. It’s important to know what data is being used, how long the AI model has been around, and where and when human intervention is involved.”
Daniel
Berlind, CEO of Snappt, a real estate fraud prevention company
TRANSFORMATIVETARANIS
Pioneering ethical investments and personalised support for fintech success
Taranis Capital, a visionary global ethical fintech-focused fund, has unveiled plans to shake up the industry by prioritising ethical governance, providing comprehensive advisory support, and tapping into the expertise of its newly formed advisory board.
Founded by Nicholas S. Bingham, a seasoned professional with over 25 years of financial market experience, and Mark Walker, an experienced technologist and fintech specialist, the fund aims to champion companies that uphold environmental, social, and governance (ESG) principles, driving positive change and promoting long-term sustainability within the fintech sector.
Ethical considerations have become increasingly prevalent across industries worldwide, and the fintech sector is no exception. The emergence of economic challenges, climate concerns, and social issues has placed ethical governance at the forefront of responsible business practices. This ambitious venture aims to reshape the landscape of fintech investments, elevating ethical standards and offering personalised guidance to foster the growth and success of fintech companies worldwide.
Bingham said: “One of the major aspects of this fund is visiting companies personally. We don’t want to outsource that to anyone else. We would like to gain a full understanding of them as a company.
“Ethical governance, how staff are treated, the staff’s social wellbeing and the projects companies work on are all very important. Even if a company looks attractive to an investor; if their ethical standing is not good then this fund would not want to get involved.
“We don’t only want to put money in to get money back out again. If a company is not of good standing and good governance, then we wouldn’t see it as the right fit for the fund.”
MAKING CONNECTIONS
The formation of a new advisory board marks a significant milestone for Taranis Capital, bringing together internationally recognised leaders from diverse
professional backgrounds and specialities, including banking, financial services, capital markets, and technology.
With this distinguished board in place, Taranis Capital gains access to a wealth of industry knowledge and experience, enabling them to offer strategic guidance and support to fintech companies within their portfolio.
The board members will work closely with Taranis Capital’s leadership team, providing invaluable insights and helping shape the fund’s investment strategy.
David Parker, a fintech specialist with extensive experience in the industry, expressed his enthusiasm for Taranis Capital’s unique approach, emphasising the fund’s ethical focus and commitment to driving growth for fintech companies. “Taranis Capital represents the best of a new breed of funds; ethical, working with owners to drive growth. Having worked in fintech and MENA for the last 20 years this was simply too good an opportunity not to get involved with,” said Parker.
This sentiment was echoed by other board members, who include:
■ Amjad Shacker, an innovative leader, government advisor, management professional, strategist.
■ Daniel Roubeni, international trade, financial management, early-stage VC investment
■ David Birch, digital financial services, one of the top 100 global fintech influencers, Forbes contributor
■ David Parker, global all-round fintech specialist, Ex Saatchi, keynote presenter and chair in fintech
■ Derek Stewart, founder of Paysme, fintech super app, Ex BNY Mellon Fund $2billion AUM, financial services for 39 years
■ Jack Hollander, capital markets
New York, Master of Law, raised over $3billion in alternative investment
■ John W ‘Jack’ Crook , regulatory compliance, NED, government compliance
■ Mike Chambers, chairman of answer pay, pioneered the UK’s Faster Payments scheme, ex-CEO for BACS, experienced NED/Advisor
Bingham hailed the formation of the advisory board as another significant step forward in Taranis Capital’s launch journey.
“I’m delighted that we have been able to attract such a diverse and inspirational group of business leaders. I look forward to drawing on their decades of collective expertise, which will be invaluable as Taranis continues to expand our operations on a global scale,” he said.
WORKING WITH THE FINTECH TIMES
Taranis Capital has also forged an exclusive partnership with The Fintech Times, giving Taranis Capital access to a wealth of industry knowledge and insights. The collaboration provides the fund with valuable research and analysis from The Fintech Times, empowering it to make informed investment decisions and identify promising fintech companies that align with their ethical investment criteria. In return, Taranis Capital opens up its portfolio companies to The Fintech Times, allowing the platform to showcase innovative fintech solutions and share inspiring success stories with its readers.
Walker said: “The venture capital industry has seen a radical shake up in the last few months, with many VCs seeing their high-profile portfolio companies devalued. This is leading to a well needed correction in valuations and assessments of sustainable business models.
“The research, insights and industry connections we have direct access to via The Fintech Times, put us in an excellent position to better assess the long-term future of fintech companies and their business models.”
www.taraniscapital.com
MASTERING PERSONALISATION WITH DATA INTEGRITY IN E VENTS
As the demand for tailored event experiences grows, so do the stakes for data security under regulations such as GDPR
Event technology platform
Cvent looks at how marketers and data professionals can achieve a harmonious balance between deep personalisation and stringent data protection, all amid rising costs and the need for higher ROI. Corporate events have always been about creating memorable experiences, but with advancements in technology and changing expectations, teams delivering them have their work cut out to ensure that everyone who attends feels like the experience was designed specifically for them without having their privacy compromised. To achieve this level of personalisation, your marketing and events teams need to understand the wants and needs of your audiences and consider each stage of the attendee journey to identify opportunities for creating more tailored interactions that boost client relationships while ensuring all processes uphold data security regulations.
EVENT REGISTRATION
This is where technology and data-led insights come in. Personalisation starts with the registration process. The more information you can glean about attendees’ preferences, needs and interests when they sign up via your registration platform, the more you can tailor content, activities and experiences to create more personalised agendas. Whether adding specialist tracks, networking opportunities, on-demand
content, demonstrations, or elements that will improve your event’s accessibility and inclusivity, asking the right questions at registration will set you up for success.
MOBILE EVENT APPS
Event technology’s ability to provide data-led insights doesn’t end after someone’s registered, either.
With a dedicated event mobile app, you can facilitate polls and surveys, manage speaker Q&A, send push notifications, and encourage different interactions, which will all produce data. Your team can then gauge levels of engagement and interest in certain speakers or subjects by the questions raised, poll answers and how many people attended each session.
be saved by focusing efforts on aspects of the event which are most valuable for attendees.
POST-EVENT SURVEYS
After your event, use tech-powered surveys to gather feedback, which can be analysed and compared year-on-year. The data can then be used to predict behaviours and trends, develop content, and gain a deeper understanding of your attendees. Advancements in event survey software allow you to automate survey creation and personalise questions for different audience personas such as sponsors, delegates or exhibitors. With all this technology in play, the possibilities for fintech and financial services events have
Scanning people’s badges as they enter or leave a session is another way to gain valuable data and feedback on who attended and what they thought. Ask for individual feedback while the session content is still front of mind by sending only the scanned badge-holders a personalised request to complete a survey via your event app.
With strategically placed RFID readers, you can also passively scan visitors as they move around the venue. This negates the need to scan every badge on the way into the main keynote session, for example. It also provides a complete picture of how long people spend in certain areas, giving valuable insights into where costs can
Cvent is the preferred choice for over 1,200 customers in financial services and fintech, empowering your team to maximise the impact of your meetings and events”
come a long way. However, the next frontier is deploying the technology securely, integrating it with existing CRM platforms, and ensuring total compliance with data protection laws.
GDPR
When it comes to processing attendee information, the European Parliament’s General
Data Protection Regulation (GDPR), which came into force in May 2018, requires event organisers to ensure that individual consent to collect and use personal data is given; only personal data necessary for the event’s purpose is collected; and attendees have the right to access, correct, delete or restrict the processing of their data.
In addition, organisations delivering events must keep personal data accurate and up-to-date, delete it when it is no longer needed and protect it from unauthorised access, use or disclosure.
This means that when you capture data in registration systems, badge scanning software, mobile apps, or post-event surveys, you must comply or face reputational damage and fines, ranging from €20million or four per cent of annual turnover.
A SINGLE SECURE SOURCE OF TRUTH
Using multiple or siloed solutions for collecting data at each touchpoint will likely evoke sleepless nights and stress-induced migraines. The most effective way to gather data across manifold touchpoints and manage it in a way that supports both innovative personalisation and uncompromised security is to have one fully integrated and compliant in-house system of record.
Cvent is the preferred choice for over 1,200 customers in financial services and fintech, empowering your team to maximise the impact of your meetings and events with a myriad of easy-to-use solutions and holistic data integrity you can rely on.
■ To discover a one-stop-shop solution that’ll enhance personalisation and engagement without risking data security, visit www.cvent.com/uk.
How artificial intelligence and biometrics are helping to turn the tide on banking scams
Fraud remains a huge problem for the UK banking sector as it looks to tackle constantly evolving threats. Despite successfully managing to thwart £1.25billion worth of attempted financial crime last year, the industry still saw almost the same amount, £1.17billion, stolen by criminals.
One of the main reasons why threats have become so hard to defend against is because it’s now so simple for people to transfer money online. While this is helpful for most of us as we conduct everyday transactions, it has also made it easier for victims to lose their money.
Almost 40 per cent of successful fraudulent attempts in 2023 were a result of authorised push payments (APP), meaning the victim willingly sent their money to a scammer. Such incidents include vulnerable members of society falling victim to romance scams or people conned by defrauders who pose as an authoritative body to demand money. It’s estimated that APP scam transactions cost banks almost £460milliin in 2023.
REGULATORY CHANGES
Historically, these loses have been a big headache for banks as the onus was on them to refund their customers who have fallen victim. They then faced the complex task of trying to recover that money from the bank receiving the payment. If the receiver bank was operating outside the UK, and beyond UK regulations, this would be harder still. The same was true when trying to recover money sent to the UK’s neobanks, which include challenger banks such as Monzo, Starling or Metro, as they have been able to operate without the same controls that the major banks have in place.
With the government trying to encourage greater competition in the banking sector, neobanks have a lower burden of regulation compared to their bigger competitors. And this has often meant that they have a lower level of sophistication when it came to detecting accounts that are being used to launder the proceeds of APP scams.
This situation is changing, however. In 2023, an update to the Contingent Reimbursement Model Code (CRM Code) by the Payment
AI-FUELLED FRAUD DEFENCE
for organised criminal gangs looking to launder money. Alongside biometric verification, such as facial and voice recognition as well as fingerprint and iris scanning, these solutions are using artificial intelligence (AI) and behavioural analytics to detect anomalies and unusual activities.
ENABLING NEW SOLUTIONS
As criminal threats evolve, and the financial incentive to reduce this type of crime grows, banks are increasingly looking to roll-out more sophisticated solutions, and quickly. The good news is that many of these solutions can be deployed comparatively easily.
Many don’t need to plug into a bank’s mainframe, for instance. In several cases banks can simply use middleware or APIs to access payment data. This can save financial institutions a great deal of time and effort during the integration phase, which is an excellent development for those neobanks looking to cover off their liabilities as quickly as possible.
By Will Larcombe , co-founder and director of Stellarmann
Systems Regulator means that all banks, including neobanks, now have an obligation to reimburse victims of APP scams. The introduction of this shared liability has created a greater financial incentive for all receiving banks to identify accounts that are being used to launder money. It is now imperative that they monitor and
“IT’S NOW MANDATORY FOR THE BIG BANKS TO PROVIDE ‘CONFIRMATION OF PAYEE’ BEFORE A PAYMENT IS MADE. THESE ALERT THE PAYER TO THE TRUE NAME OF THE BANK ACCOUNT THEY ARE PAYING INTO – SO THEY CAN CHECK”
block suspicious transactions and collaborate with other financial institutions in order to do so.
ANTI-FRAUD MEASURES
To tackle APP scams, we’ve already seen banks taking steps to make customers think before they make a push payment. For instance, it’s
now mandatory for the big banks to provide ‘confirmation of payee’ before a payment is made. These alert the payer to the true name of the bank account they are paying into – so they can check if they match up with who they think they are paying.
The 2023 regulatory changes, however, will likely drive greater investment in anti-money laundering (AML) systems. Many of these solutions are embracing cutting edge emerging technologies, such as behavioural biometrics and machine learning (ML), alongside big data solutions and real time analytics.
These solutions are enabling banks to automatically detect and temporarily block live transactions, if they are deemed to be out of character for the customer in question. This gives banks a window of opportunity to investigate, talk to the customer and potentially cancel the payment.
In addition to AML solutions, banks are also rolling out know your customer (KYC) solutions to ensure that when someone opens a bank account, they are who they say they are – and not just a front
Just how soon a bank can go live with these new solutions will, of course, depend on the institution’s infrastructure and its existing technology stack. It’s also worth noting that, as with any digital transformation initiative, these solutions will also require institutions to roll out a full change project – with new processes likely to be introduced, new roles and responsibilities created, and internal training and external education also required.
But, the emergence of AI and ML, along with the growing sophistication of behavioural biometrics and real times analytics, offers great hope for banks that are looking to keep their customers safe and prevent criminals from accessing their money. The sooner we see these protective measures put in place, they better it will be for everyone concerned.
About Stellarmann
Will Larcombe co-founded technology and change delivery consultancy Stellarmann in 2020 with his business partner Alex Colwell. Part of the Wellcombe Group, the company launched in response to a growing demand for highly skilled, flexible and scalable contract teams to deliver technology and change programmes.
https://stellarmann.com
13-16 OCTOBER 2024 - DUBAI HAR BOUR
THROUGH
SUSTAINABILITY IN THE MIDDLE EAST A PATH TO A GREENER FUTURE
The global financial sector has increasingly recognised the importance of sustainability, and Middle Eastern banks are no exception. This shift is not just a trend, it represents a fundamental transformation aimed at balancing economic growth through long-term financial stability with environmental responsibility, underpinned by Islamic banking’s social practices. These social practices are integral to sustainability due to the principles and values embedded within Islamic finance, which emphasise ethical behaviour, social justice, and environmental stewardship. This focus on good governance practices is crucial for building trust and ensuring the responsible use of resources.
SHAPING AND SUPPORTING NATIONAL TRANSITION STRATEGIES
Though there is significant progress at national levels, the depth of regulation, implementation and enforcement, and local capacity and awareness vary. The absence of uniform standards can create uncertainty and hinder the widespread adoption of sustainable practices.
As a result, the lack of consistent regulatory frameworks is one of the notable challenges to sustainability in Middle East banks. This is not a regulatory challenge unique to the Middle East, but there seems to be promising engagement opportunities for banks in this regional context.
Banks who have made strides, as prominent sustainability regulation ‘implementers’, can be some of the most important voices for adopting these policies or are otherwise in a space to advocate for them, further learning from international standards in the interim.
They are making advances within their own operations to reduce their carbon footprint by implementing energy efficient measures such as reducing energy consumption, minimise waste, and promote recycling in their offices. Some banks are going a step further and investing in green buildings and sustainable infrastructure, demonstrating their commitment to reducing their environmental impact.
NEW GROWTH OPPORTUNITIES
As global demand for sustainable investments rises, banks that prioritise sustainability are better positioned to attract environmentally conscious investors who are seeking assets that align with their environmental values. Their investments provide additional capital for expansion, research and development and innovation, all of which contribute to faster growth and development. By offering green bonds, sukuk and loans, banks are channeling funds towards projects that promote positive environmental impact, such as solar, wind and other renewable energy projects. These projects support the transition to a low-carbon economy and enhance the bank’s portfolio diversity and profitability. They can play a further role in accelerating a legitimate carbon credit market for additional initiatives that make up national climate mitigation approaches. For example, consumers can achieve greater awareness and involvement in the UAE’s efforts to promote and protect mangroves.
DEMAND-SIDE TRANSFORMATION
According to a Visa 2023 Sustainable Commerce study, in the GCC, a significant barrier for the majority of consumers lies with a lack of awareness of the environmental and social impact of consumption choices. Nonetheless, the study also highlights how consumers are taking charge across UAE, Kingdom of Saudi Arabia, Kuwait and Qatar, with over two-thirds recognising that decarbonisation is not solely the responsibility of corporate entities, with young consumers being the major drivers of sustainable commerce. Seventy-
one per cent express a willingness to endorse banks that provide sustainable payment options, whereas 66 per cent of consumers reported choosing a bank based on its sustainability practices in the last 12 months.
Consumers are willing to choose banks and payment service providers based on their sustainability-linked options, from paperless statements to rewards for sustainable behaviour, to green mortgages. More than half of the consumers surveyed expect their bank to guide them in making sustainable financial choices and to help them understand the environmental impact of their purchases.
The challenge is bridging the gap between intention and action. In between these states is a need for knowledge and a clear alignment with consumer values. Running awareness campaigns is essential for educating customers about the importance of sustainability and how they can protect the environment by reducing their own carbon footprint.
Banks can bridge the intentionaction gap and provide call to action features within their online and digital banking platforms/services. They provide an appropriate channel (due to the undeniable connection between consumer behaviour and individual carbon footprints) and a widespread interface for doing so. For example, Mashreq was the first bank in the region to introduce transaction-to-carbon solutions so that information about individual carbon footprints, along with educational content became available to many of their retail customers.
SUMMARY AND OUTLOOK
It can be posited that these banks
are uniquely positioned to accelerate the global transition on account of the underlying values of Islamic banking and the evolving state of sustainability in the region. Strategic national and regional shifts in the Middle East require guidelines for emerging regulatory frameworks and channelling substantial funds towards efforts that promote environmental stewardship and economic diversification. Banks are well-suited to bridge consumer awareness gaps and support the transition to a green economy by leveraging the underlying values of charity and social responsibility. Implementing sustainable practices often requires significant financial investment and technical expertise. For smaller banks or those with limited resources, this can be a considerable hurdle. Moreover, the initial costs associated with sustainable initiatives may deter some banks from pursuing them, despite the potential long-term benefits. However, technological innovations will drive the future of sustainability in Middle East banks, where adoption and partnerships will play a crucial role in advancing sustainability in the banking sector. The banks are likely to see further advancements in green finance as the global demand for sustainable investment continues to grow. Partnerships with fintechs will help banks offer innovative green financial products, attracting environmentally conscious investors and clients alike.
The strong commitment of Middle East banks to fostering sustainable development and addressing environmental challenges is a positive sign of the region’s potential to lead in the global sustainability movement. However, sustainability around the globe is an evolving landscape, marked by both challenges and opportunities. While progress is being made, there is still much work to be done. By continuing to align with global frameworks, adhering to regional regulations and embracing technological innovations, Middle East banks will contribute significantly to global efforts in combating climate change and promoting sustainable development.
By Nina Saleh, commercial strategy & planning at climate engagement fintech ecolytiq
finova outlines how it aims to streamline UK mortgage processes and enhance customer experiences
TECH-DRIVEN MORTGAGES
The UK mortgage industry has seen significant changes in recent years, with technology playing a crucial role in transforming how loans are originated and serviced. As the sector becomes more digitised, financial institutions are seeking innovative solutions to streamline operations and improve customer experiences. One company at the centre of this shift is finova, a provider of mortgage origination software. Chris Little, chief revenue officer at finova, discusses the company’s approach to addressing industry challenges and the technological advancements shaping the future of mortgage services.
Q
more diverse, but our core values remain the same. We have invested in cloud-first technology, embraced the API economy and created new strategic partnerships, but we still address the same challenges for our clients.
We’ve invested in new, cuttingedge tech solutions, either via acquisition or core software development, but our ultimate aim is still to improve and streamline the mortgage origination journey and provide the best digital self-service to our end users.
QSince launch, how has your company evolved?
adopt these technologies risks being left behind. finova has adapted to evolving market conditions by making strategic acquisitions and migrating our core loan servicing platform to Azure. These moves have allowed us to stay at the frontline of technological advancements in our key markets.
QWhat has been the biggest challenge?
Tell us more about your company and its offering finova is a technology provider serving the UK mortgage and savings sectors. Today, we are the largest provider in this area, supporting over 50 lenders, 3,000 mortgage brokers and 200 financial institutions. Our solutions are focused on state-of-the-art SaaS digital originations, and cloud-based offerings such as our servicing platform. finova also owns key IP in the broker CRM space, as well as a mortgage club, finova Payments and Mortgage Services – which means we’re the only vendor in the sector with coverage across all key areas.
Q What problem was your company set up to solve?
Twenty years ago, the average UK mortgage application was a highly manual and labour-intensive affair, clogged with paperwork and slow turnaround times. finova was set up to streamline that mortgage origination journey. Clearly, the market has evolved over the years, and we have consistently updated our offering to adapt to these changes. In 2024, our methods are slightly different, and our solutions are
The company has grown from a handful of staff with two to three clients in its first year to now servicing over 50 banking clients with around 400 FTEs, and that’s w ithout mentioning our strong partnerships in the broker space. We are continually updating our tech and adapting our offering to address the pain points of lenders and brokers.
We are always reaching out to our peers and pursuing partnerships with like-minded companies.
Earlier this year, we extended our successful three-year collaboration with Hexaware, the global tech and business process services company, which has now become the very first independent implementation partner of our origination and servicing platforms. Together, we have pooled our technical expertise to give clients access to a range of top-notch ancillary services, including user acceptance testing and data migration.
finova will always be a software company at heart, but we never shy away from an opportunity to evolve. A lot has changed since our earliest days. When finova was founded, SaaS and the cloud were also in their infancy, particularly within the financial services sector. Now, any organisation that neglects to
As the company has grown, we have worked with numerous clients operating in various areas including all facets of secured lending and savings. We have also moved up the value chain in terms of the size of customer we deal with, often handling multiple projects simultaneously. This naturally brings ‘growing pains’ as the company has scaled to accommodate demand.
I am happy to say that finova has been successful in addressing these issues in recent times via the onboarding of a very talented captive operation offshore team, as well as further enhancing our delivery offering with a large systems integrator to augment delivery and service support.
QWhat are your biggest achievements?
There have been many notable achievements at finova, from numerous product launches to such varied client success stories, so picking one is difficult. However, I was especially proud to recently oversee the rollout of two new upgrades to our core banking platform, Apprivo: ‘SmarterDocs’ and ‘Enhanced Tasks’.
These new additions follow the recent launch of our customer retention portal and are another key step in our journey to ensure that lenders continue to get the most from Apprivo. With several lenders starting to reduce rates on fixed mortgages, having a streamlined tech platform will be
critical, and we are confident that these new modules have come at the right time.
Q How would you describe the culture of your company?
The culture here at finova is very open and inclusive. We employ a diverse mix of individuals from all backgrounds who come together to deliver great client solutions. We are continually nurturing our teams to unite around core values, which are all directed towards delivering exceptional value to our clients. If we can do that, then everything else becomes much easier.
Q
What’s in store for the future?
At finova, we are always assessing the market and asking ourselves three questions – ‘what’s next?’, ‘what’s going to change the dial for our customers?’, and ‘what’s going to keep us ahead of the competition?’. Our answer to some of these questions is Optimo, our new decision engine that combines intelligent pricing, affordability outcomes and streamlined scorecard models to help lenders deliver tailored outcomes for their customers. We anticipate that rapid decisioning will come to the forefront of the UK lending space, and so we have invested significant R&D into refining Optimo to an industry-leading standard. It will support our customers in many ways, from enabling access to tailored personalised pricing by aggregating numerous data sources, to delivering ‘black box’ instant lending decisions based on numerous risk and affordability factors.
We’re excited about Optimo, both in terms of what its new platform can offer to our existing user base, but also the opportunities for wider growth. This technology is not only powerful but can seamlessly slot into any existing system without requiring a complete overhaul – and that’s a very strong USP indeed. www.finova.tech
By Francis Bignell, journalist and LatAm lead at The Fintech Times
CRYPTO’S TRUE COLOURS ON SHOW
At this point, you’ve probably heard of some of the biggest crypto scams the digital assets industry has faced. The Axie Infinity hack through the Ronin Network and FTX’s disastrous collapse are just a couple of big-name cases, but they’re just outliers… right?
Trust has long been the crypto industry’s biggest struggle and a new book by Jake Donoghue, Crypto Confidential, reaffirms these concerns. In it, Donoghue recounts his journey as a crypto insider between 2020 and 2022. While not everyone has had the same experience as him, it does make you wonder: how many people are experiencing a similar draining and possibly devastating story?
Welcome… to the world of crypto
The book places Donoghue as the main character, speaking from his point of view at the time, with certain present-day reflections intertwined. In his author’s note, he explains how he has changed the names of some companies, locations and people to protect their identities. I liked the way the story starts in 2022 – once everything has gone wrong – and acts as a very enticing way of making the reader think ‘how have we got here?’
The tone then changes to one of optimism. Donoghue sets the scene in 2020, when he is invited to take part in a new crypto endeavour by his friend Miles and his cousin Archie. From there, the reader follows the speaker, Miles and Archie on their journey with their crypto project: Portent Protocol, which would allow users to bet on the future price of Bitcoin. I've dabbled in crypto, but only on the surface. Nonetheless, Donoghue’s story is enlightening for someone completely new to the world of crypto, someone like myself who has some experience, or a seasoned veteran, where stories may hit a bit close to home. The way the book is written makes it feel like a novel. The
speaker is telling a narrative about his foray into the world of crypto, but many chapters are finished with reminders that the good times never last and that a storm is waiting.
In a sense, this is what makes the story so compelling. Despite everything seemingly going well (albeit via suspect means), you want to see where it all goes wrong.
Donoghue creates a sense of dread throughout the book as he foreshadows the market’s collapse.
For someone who experienced the events of 2022, the speaker’s optimism about certain events prior, make the eventual downfall
posh PR stuff in crypto. There are no rules. It’s all unregulated.”
The wild west of the modern internet
As the story progresses, you see Donoghue’s descent into the world of crypto, getting addicted to digital assets and everything about them – the good, the bad and the ugly. He explains how rules were constantly bent to keep everyone happy. This even includes auditors – who were willing to be paid in token allocations.
Unsupervised: Navigating and Influencing a World Controlled by Powerful New Technologies by
Daniel Doll-Steinberg
and
Stuart Leaf
Each time you think you’ve heard another person with another role reveals they’re willing to be bribed. Interestingly, when the topic of money laundering is raised, it is done in such a lax way that it makes you wonder if it is in fact fraud they’re committing. The story takes an interesting turn when the speculative public starts to call out Portent Protocol. It feels like one of the only times anyone is held accountable for their actions.
Bring on more projects
Crypto Confidential: An Insider's Account from the Frontlines of Fraud by Jake Donoghue
Available: Kindle & Hardback
that much more powerful, especially during the build up to Portent Protocol’s launch. There seems to be a certain type of naivety in what is taking place – the characters know what they are doing is wrong. For example, when trying to get capital, the speaker explains how he had to rewrite blogs about the project to ensure all new investors were happy. He mentions double digit iterations of the same blog – creating a sense that there is no credibility.
As someone tells Donoghue in the book: “There’s none of that
Donoghue explores how the project ended up having a marketing agency arm (eventually named Moonshot Advisors) and how the hype of NFTs impacted the crypto world in 2021. Throughout the story, there's a sense that the amount of money being spoken about doesn’t feel quite real, with a ‘Wolf of Wall Street’ feel: everything just seems a bit surreal. The highs of the book are paired with reminders of the inevitable downfall of the industry, but the balloon that is this high is massively popped once Donoghue reveals how many lives were tragically impacted and lost by the collapse of Terra Luna and FTX. It is a stark reality check.
The book concludes with the speaker sounding regretful, tired and rundown. Not only does Donoghue’s book act as a warning about the crypto industry as a whole, but it is also educational. There are multiple breaks in the narrative in which the nuances of the crypto industry are explained, ensuring any reader can understand and enjoy Donoghue’s crypto journey. z
Available: Kindle & Hardback
Open Banking and Financial Inclusion: Creating a Financial System That Provides Security and Equity by Ellie Duncan Available: Kindle, Hardback & Paperback
/fintech-times /thefintechtimes /thefintechtimes
info@matoukbassiouny.com Matouk Bassiouny comprises 35 partners and over 230 lawyers across 7 jurisdictions – trained locally and internationally in common and civil law systems – fully conversant in Arabic, English, French and Korean.
