EDITION 53
THE FINTECHTIMES.COM
THE WORLD'S FINTECH NEWSPAPER
FEATURE STORY Is AI overrated? The role of AI in fintech’s future
DIVERSITY Embracing youth in fintech boardrooms page 8
page 14
EVENTS FinTech Connect 2023: 10 years of innovation and collaboration page 18
BOOK REVIEW Why DeFi Matters: By Ian Horne page 22
IN THIS ISSUE
Financial wellbeing
Kevin Coop, CEO of DailyPay, on creating financial wellness packages page 17
Navigating the path to CEO
We talk to Peter Reynolds, CEO of ThetaRay on the transformative role of AI page 10
Standout moments A year in fintech: We take a look at our memorable moments of 2023 page 12
Broadening credit’s potential How AI will transform the credit industry
page 15
AI: secure by design
Collaborative global guidelines reshape the future of artificial intelligence development page 16
Fintech leaders reflect on the pivotal moments and trends that have defined 2023 and cast their gaze ahead to 2024 Read online at thefintechtimes.com
Strategic PR for fintechs
SkyParlour’s Angela Yore on helping businesses in the fintech industry shine page 20
Brazil in focus AI and crypto trends in Brazil and beyond with Lendel Lucas, CEO of iVi Technologies page 21
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E D I TO R ’S W E L C O M E THE FINTECH TIMES
BRINGING FINTECH TO THE WORLD Editorial Enquiries editor@thefintechtimes.com Chief Executive Officer Jason Williams Editorial Director Mark Walker Editor in Chief Claire Woffenden Art Director Chris Swales Features Editor Polly Jean Harrison Marketing Karen Phiri Business Development Deepakk Chandiramani Stephen McMaugh Terry Ng Ania del Rosario Nigel Tate Journalists Francis Bignell Tom Bleach
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This Newspaper was printed by Park Communications Limited, London using its environmental print technology, on 100% recycled paper. Copyright: The Fintech Times 2023. Reproduction of the contents in any manner is not permitted without the publisher’s prior consent. ‘The Fintech Times’ and ‘Fintech Times’ are registered UK trademarks of Disrupts Media Limited.
Looking back on 2023 ...gearıng up for 2024
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s we put the finishing touches to this final edition of The Fintech Times for 2023, it’s a time of both reflection and anticipation. The past 12 months have been nothing short of transformative for the fintech industry and, as we stand on the threshold of 2024, it’s clear that the pace of change shows no signs of slowing. For this issue’s ‘View from the Top’ feature, we’ve had the privilege of engaging with a plethora of fintech leaders from around the globe. They’ve shared their insights and perspectives, reflecting on the pivotal moments and trends that have defined the past year in fintech. As the industry continues to evolve with growth, resilience and adaptability, they’ve also offered us glimpses into their ongoing journeys and cast their gaze ahead to anticipate the innovative prospects of 2024 – check out The Fintech Times website throughout December for even more perspectives. We also share our own reflections from the year gone by, on page 12, picking out some of our highlights from a whirlwind
year of globetrotting in pursuit of fintech knowledge. In this issue, our second theme delves into the hot topic of artificial intelligence (AI). According to Moody’s Analytics, fintech is the leading sector for AI adoption and readiness, particularly in risk and compliance. Its research reveals that almost one in five professionals working in the fintech space actively employs AI. This adoption rate is double that of all other surveyed sectors. AI is no longer just a buzzword or a futuristic concept; it’s the beating heart of fintech innovation. From customer service chatbots
AI IS NO LONGER JUST A BUZZWORD OR A FUTURISTIC CONCEPT; IT’S THE BEATING HEART OF FINTECH INNOVATION that understand your financial needs better than ever to predictive analytics that mitigate risks and optimise investment decisions, AI is reshaping the industry in
profound ways. There is a strong appetite across all sectors to harness the potential of AI technologies for enhancing productivity. This is particularly evident in the areas of data screening and augmenting staff performance, where businesses are actively seeking to leverage AI capabilities for substantial gains. But how significant will artificial intelligence be for fintech in 2024? Polly Jean Harrison, features editor at The Fintech Times, examines the role of AI in fintech’s future on page 8. While for this issue’s CEO interview, we chatted to ThetaRay’s Peter Reynolds as he spearheads a company working to reshape the narrative on artificial intelligence’s potential benefits. Finally, on page 16, Tom Bleach delves into the global collaborative efforts to monitor the safety of AI projects and initiatives. Wishing you a prosperous and innovative year ahead! Claire Woffenden, editor in chief, The Fintech Times
www.thefintechtimes.com
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VIEW FROM THE TOP THE FINTECH TIMES
TOM POPE ◆ TINK
SCOTT DAWSON ◆ DECTA
STACEY STERBENZ ◆ AMERICAN EXPRESS
EVE PICKER ◆ SMALLCHANGE.CO
JOHN BARBER ◆ INFOSYS FINACLE
JANTHANA KAENPRAKHAMROY ◆ TAPOLY
BABS OGUNDEYI ◆ KUDA TECHNOLOGIES
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AUDREY HALL ◆ BRIGHTWELL
KATE LEAMAN ◆ AVATRADE
VIEW FROM THE TOP THE FINTECH TIMES
FINTECH FORECAST
INDUSTRY LEADERS SHARE THEIR ‘VIEW FROM THE TOP’ WITH INSIGHTS INTO THE TOP TRENDS OF THE PAST 12 MONTHS AND WHAT WE CAN EXPECT FROM 2024 Stacey Sterbenz, general manager, UK Commercial, American Express
“Business-to-business (B2B) payments have lagged behind consumer payments when it comes to innovation and leveraging technology. In 2024, we will see an increase in the digitisation of payments as business continue to see the benefits of automation. To help maintain healthy cash flow, businesses will look to find efficiencies in their payments processes. Payments automation has been gathering momentum as businesses turn to technology to improve efficiencies and free up finance teams’ time. “Our recent research found those businesses who have automated payments are reaping the benefits; nearly half (46 per cent) have saved time, and two fifths (39 per cent) have seen fewer errors as a result. We’ll continue to see businesses leveraging data and analytics to better understand customers’ behaviour, helping them identify the most efficient digital payment options that help improve working capital. We expect the need for greater efficiency to continue to be a driver of innovation for businesses next year.” Babs Ogundeyi, group CEO and founder of fintech Kuda Technologies
“Startups will unfortunately still have limited access to capital in 2024, meaning that we’re likely to see more M&A next year – with more emphasis on acquisitions than mergers. However, one industry that will forge ahead – much like it did this year – is AI. What will be different in 2024 is that there will be more movement around AI in other sectors. As such we can expect an increase in use cases of AI on a relative scale. Startups will harness AI across a range of industries, from healthcare to retail to fintech, and so this rapidly
advancing technology will show no signs of slowing down any time soon. “Fintech will undoubtedly carry on innovating and utilising new technologies to expand offerings for customers. As the world continues to digitalise, fintechs and neobanks can capitalise on this new banking journey. Thankfully the sheer amount of tech redundancies that were prevalent in the first half of the year has slowed, and this will continue to slow in 2024, as companies and investors alike proceed with a cautiously optimistic approach.” Tom Pope, SVP payments and platforms at open banking platform Tink
“If you look back over the last 50 years, every payment method that found mainstream adoption – cheques, cards, mobile wallets, buy now, pay later – reached a tipping point in its momentum where that adoption became all but inevitable. We believe Pay by Bank has reached that point. Only two years ago, Pay by Bank availability was limited to fringe use cases in select markets. But now we’ve reached the point where it’s becoming available to merchants everywhere. For example, Adyen, one of the biggest payment platforms in the world, is making it available to all its UK merchants and rolling it out across Europe. And the number of leading companies across all areas of financial services that now have open banking at the core of their offering is increasing all the time. Plus, the Pay by Bank user experience – already competitive – is only going to get better. So, we think there is a clear advantage for merchants that are early adopters. By tapping into the demand that already exists for a simple, secure and streamlined payment experience (at low-cost), merchants can
differentiate themselves in 2024 from the competition with Pay by Bank.” Audrey Hall, CPO at cross-border payments fintech Brightwell
“The Covid-19 pandemic has accelerated the shift away from cash, as consumers and businesses increasingly adopt digital payment methods. This trend is likely to continue in the years to come, as more and more people become comfortable using digital payments. There has been a surge in the number of domestic players launching products that allow users to send funds from one wallet to another. This is making it easier and more convenient for people to send money to friends and family domestically and internationally. Consumers and businesses are increasingly demanding quicker payments. “This is driving innovation in the cross-border payments space, as companies are developing new technologies to enable faster and more efficient payments. In 2024, blockchain, artificial intelligence and machine learning will play a more prominent role in streamlining cross-border payments. With the rise of digital transactions, cybersecurity measures will also become paramount to protect consumer data and prevent fraud. New payment solutions, such as real-time payments and embedded finance, will gain traction, offering greater convenience and efficiency.” Janthana Kaenprakhamroy, CEO of Tapoly, an on-demand insurance provider for SMEs and freelancers
“In 2023, we witnessed the insurance industry undergo remarkable shifts. First and foremost, digital transformation became a nonnegotiable aspect of survival. Insurers that embraced technology gained a substantial advantage over their peers.
Data emerged as the industry’s new currency, with insurers leveraging it for underwriting, risk assessment and improving customer experiences. Cyber insurance took centre stage as cyber threats continued to surge. Sustainability and ESG factors became significant considerations, prompting insurers to integrate environmental and social goals into their operations. Regulatory scrutiny intensified, emphasising the need for compliance and transparency. “Looking ahead to 2024, we anticipate further dominance of AI and automation, enhancing efficiency and reducing costs. Personalised insurance products will thrive, driven by data analytics and AI. The insurance industry will play a more prominent role in addressing climate change, with sustainable products gaining traction. Collaboration and partnerships will drive innovation, while regulatory evolution will continue to shape the industry. The hybrid workforce model will become standard, impacting operations.” Eve Picker, founder and CEO of SmallChange.co, an equity crowdfunding platform
“We are still coping with the effects of the pandemic three years after Covid hit. First, we have become increasingly reliant on technology to keep our work contact-free. Second, the economic upheavals of the pandemic taught us to be lean, lean, lean. Soaring interest rates are underscoring this lesson. The upshot is that over the past 12 months, many investors are not investing; they are just trying to hang on. Given the ongoing chaos in the fintech and investment worlds, we all might welcome positive predictions, but we won’t necessarily act on them.” www.thefintechtimes.com
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VIEW FROM THE TOP THE FINTECH TIMES
Einat Steklov, CEO and co-founder of financial wellness company Kashable
“In periods of high inflation, individuals are experiencing rising living costs, increased costs of goods and services and higher interest rates on existing debts. New payment options are rising in popularity that are going to influence payment behaviours. With the rise of buy now, pay later (BNPL) services, consumers have choices to spread their payments over time for short-term financial relief. This shift in payment behaviour is expected to expand access to credit and prompt changes in how consumers, particularly younger generations, approach debt. Notably, flexible payment options and lenient approval criteria of BNPL services compared to traditional credit opens the door for a broader range of consumers to access credit, potentially contributing to a rise in consumer debt if managed irresponsibly. “In times like these, we see an increasing number of employers enhancing their benefits with a financial wellness aspect to support their employees. Employers are bolstering their benefits by providing more financial education, coaching, and low-cost loan programmes. These programmes are carefully vetted by employers to ensure access to responsible credit while also providing a secure mechanism for employees to repay their debt directly from their paycheck. As consumers navigate the challenges of inflation, debt management tools are expected to focus on providing more personalised solutions for consumers to manage their finances effectively.”
EINAT STEKLOV ◆ KASHABLE
Meeri Savolainen, founder & CEO at insurance platform INZMO
“Over the last year, AI and machine learning have played a pivotal role in transforming fintech processes. From an insurtech perspective, this has included streamlining fraud prevention processes and enhancements in the claims handling process even during emergency situations and natural disasters like hurricanes. 2024 will see a continuation of this with the fintech landscape poised for further transformation thanks to the ubiquitous adoption of AI and machine learning, and with the technology promising an even more customer-centric and efficient future. 2024 will also see a ‘war for talent,’ particularly for AI trainers, AI engineers and AI analysts and will also usher in new shifts in job functions. Expect to see a host of new AI associated roles all focused on navigating the evolving fintech terrain and maximising the technology to help deliver on new and innovative services. “We should also expect to see the regulatory organisations working in parallel, adapting to the new risks introduced by the emerging technologies and creating new standards in order to keep companies compliant and to safeguard customers. As such, ongoing and open communication between startups and regulators is crucial to ensure a balance between innovation and compliance.” Miroslava Betinova, head of fintech at banking-as-a-service fintech Griffin
“The lessons learnt in 2023 should be the driving force for 2024. Fintech isn’t dead. It just grew up. We have seen a downturn in VC funding, a slowdown in rocketing valuations and a lot of great talent having to find a new home in 2023. In spite of all of this, we continue to see many exciting launches that embed
MEERI SAVOLAINEN ◆ INZMO
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financial services into every aspect of life – they just happen to come with fewer laptop stickers and swag. Innovation continues to drive added value – as long as it is built around compliance. “This year, we’ve seen the regulator pause and stop many fintechs due to a number of compliance woes which can be traced back to poor onboarding, KYC and due diligence. Embedding a superior onboarding tool in your fintech offering will always help to fight fraud and money laundering at its roots, without giving it a chance to sprout beyond. It’s fascinating how many industry experts (VCs inclusive) can’t tell the difference between electronic money institution (EMI) and bank licences. There is still a lot of confusion around the different propositions these licences have the ability to drive. This is also a cause of some of the regulatory incidences we saw in the fintech space in 2023. EMIs can issue e-money accounts and move funds. However, EMIs need a bank to safeguard these funds. Only a fully licensed bank can provide a true BaaS offering, including protection of funds and earning interest.”
Kate Leaman, chief market analyst at online broker AvaTrade
“In 2023, fintech has evolved with exciting resilience. Decentralised finance (DeFi), shook things up, demonstrating a new way to think about accessibility and openness in finance. The industry has also embraced artificial intelligence and machine learning more than ever, making services smarter and customer experiences smoother. Nonetheless, cybersecurity has become a top priority, as the industry works tirelessly to keep everyone’s financial data safe. There’s also been a heartening shift towards sustainable and ethical financial choices, making it clear that fintech isn’t just about technology; it’s about making a positive impact. “In 2024, there’s expected to be an increase in the adoption of blockchain technology, including its application for personalised services as well as more secure and efficient transactions through DeFi. Contactless payments are also expected to grow, with the use of mobile wallets, contactless cards, and even biometric payment methods increasing in use. MAXIMILIAN LEHMANN ◆ NIUM
MIROSLAVA BETINOVA ◆ GRIFFIN
Kevin Coop, CEO of fintech DailyPay
“Rising interest rates on capital will impact how technology companies are reacting to disruptive technologies, and the everincreasing demands on companies to defend against cyber and security threats continue to absorb more time and budget. On the other hand, the digital revolution continues to offer accelerated opportunities to improve customers’ lives and enhance the infrastructure that allows companies like DailyPay to deliver on-demand pay for earned wage access. The opportunity to change lives and positively impact our partners’ ability to serve their end-users is an example of how technology can impact our industry in a really outstanding way.”
KEVIN COOP ◆ DAILYPAY
VIEW FROM THE TOP THE FINTECH TIMES
Additionally, the growth of digital banking will evolve as banks offer more personalised services, utilising AI, and with the potential rise in digital-only banks, offering userfriendly and cost-effective banking solutions. Much like 2023, as financial services become digitised, cybersecurity will remain imperative and companies will likely invest in advanced security technologies to safeguard customer data.” Scott Dawson, head of sales and strategic partnerships at payments infrastructure company DECTA
“The industry has had an interesting year, with many organisations feeling the impact of economic and political events globally, from high costs and even higher inflation rates to low consumption. AI is the one standout topic in 2023 that got everyone talking and while the basis of the technology has been around for many years, it was in 2023 that it really took off and became a household term, and that is in large part thanks to ChatGPT, which celebrates its first anniversary at the end of 2023. “The payments industry has been using artificial intelligence and machine learning for years – every time you make a payment, anti-fraud checks are carried out by what are effectively AIs, and it’s been this way for years. As with so many things, we need to get serious about increasing productivity through building upon the AI systems that have been producing value for years rather than chasing a moonshot. That being said, the technology hasn’t changed the world as much as we thought it would – both the threats and benefits of AI are being somewhat oversold as it is not able to address the key difficulties that many organisations experienced this year. Looking forward to 2024 we’ll be looking at the regulation of AI. It is not so much the technology that is regulated but
ADAM ZOUCHA ◆ FLOQAST
the structure of it, which is indicative of the fact that regulation will never be able to keep up with technology that evolves this quickly, or foresee what it might be capable of.” Jovi Overo, managing director, UK, Unlimit
“We will see additional developments in open banking in 2024. Customers today demand a frictionless experience from their apps, so as businesses improve, streamline, and iterate their products, competition will drive adoption. I predict that fintechs will focus a large portion of their efforts on lowering payment friction in the upcoming year. Fintechs are likely to examine their present user experience closely and expect more from their software, including faster payment processing times, more user-friendly interfaces, and instant feedback systems that allow them to get real-time feedback from customers. “Anything that facilitates the customer’s payment process is sure to succeed commercially. Artificial intelligence, which is starting to change the financial services industry, will have three main effects: it will automate complex financial operations for fintech companies, provide personalised services for customers, and advance anomaly and pattern recognition. While automating consumer services will help build public trust, automating more complex financial processes would boost operational efficiencies across the business and free up staff to engage on high-value projects with greater consequences. Automation of AI will be essential to the technology’s advancement in the market, but I believe this will also raise rigorous compliance-related concerns.” Adam Zoucha, MD EMEA at tech unicorn and accounting automation company FloQast
“It’s likely finance teams will continue to undergo digitisation over the coming 12 months. A dynamic approach to financial transformation will put organisations one step ahead. Tools that advise on financial preparation, compliance roadblocks and strategic planning will ensure businesses are ready for the next phase of their growth journey. And, with the inflationary needle moving in the right direction, the IPO market may continue a recovery into 2024. Organisations looking to IPO will need to supercharge their processes. Compliance processes will need to be robust to stand up to investor scrutiny. Not only does compliance help companies avoid corporate and individual liability, but it enhances investor confidence by demonstrating a commitment to transparency and accountability.”
JOVI OVERO ◆ UNLIMIT
Maximilian Lehmann, SVP & head of enterprise growth at real-time payments firm Nium
“While generative AI has a long way to go until it is fully regulated and integrated in financial services, its application will drive cross-border payment innovation forwards in 2024 and beyond. When thinking about global payments, AI can be used to optimise treasury operations, especially FX exposure. Currently, currency conversion rates can fluctuate significantly, making it challenging for businesses and individuals to predict the cost of their transactions and how much liquidity is needed. AI algorithms can analyse vast amounts of market data, including economic indicators and news events, to predict future exchange rates with greater accuracy and then act on it by automatically buying, holding and selling currency positions. This will allow businesses to make informed decisions and significantly improve their financial exposure and liquidity pools. Another area that will see tremendous upside is transaction fraud monitoring. “Already today, AI-powered fraud detection systems can analyse vast amounts of transaction data in real-time, identifying patterns and anomalies that may indicate fraudulent behaviour and enhance security by flagging those transactions. Soon, however, generative AI will be able to react instantly and write rules and code to counter fraudulent attempts and patterns in real-time without human intervention.” John Barber, vice president of Infosys Finacle Europe
“The primary learning from 2023 is that generative AI is bringing in a paradigm shift in how banks embrace AI. In the banking industry where you have vast troves of data, diverse customer-facing roles and ongoing digital evolution, banking leaders have a unique opportunity to harness gen AI’s immense potential. But there is also an inherent understanding that tech advancements like these need robust
ethical frameworks and meticulous oversight to navigate. Many banks have had noteworthy pilots. For example, you have JPMorgan Chase creating a gen AI-powered service, which will provide investment guidance and personalised selection of securities for customers. In another instance, following extensive testing involving 1,000 financial advisers over several months, Morgan Stanley has been preparing to launch a generative AI-powered chatbot – the bot will provide valuable insights and administrative assistance to financial advisers. “While the results from banks’ use of this technology have been impressive and will no doubt spur others on to implement it, there remains a level of trepidation to move too fast. In 2024, the banking sector is poised to unlock the transformative capabilities of gen AI in customer engagement, sales and marketing, and software engineering. The integration of automation, AI, and generative technologies is set to shape the industry’s trajectory, offering a future in which banks can provide unparalleled innovation and value to customers.”
YANKI ONEN ◆ WAMO
Yanki Onen, CEO of digital business account provider wamo
“In 2024, I believe we’ll see a huge shift in the business banking sector. SMEs in particular have had a rough 12 months and more than ever they’re in need of tailored support from banks to help them weather the storm. Banking is a services industry, but often banks forget that part. Relationships, trust and personalised support are the cornerstones of successful business banking. As we move into next year, I think we’ll start to see this prioritised as SMEs search for banking partners that truly understand their problems. As entirely digital products are becoming the new norm, human touch and empathy will define the new era of business banking, empowering entrepreneurs and SMEs to thrive.” www.thefintechtimes.com
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Is AI overrated? How significant will artificial intelligence be for fintech in 2024? Polly Jean Harrison, features editor at The Fintech Times, examines the role of AI in fintech’s future
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rtificial intelligence (AI) has become a ubiquitous term, not just in fintech but in everyday conversations. Despite its recent surge in popularity, AI has a long history of application in various industries, including fintech. So why the hype? As Cetin Duransoy, US CEO at fintech savings platform Raisin, says: “Chat GPT has turned AI into a universally discussed (and feared) topic. Probably because it looks like magic, if you don’t understand how it works. While over-the-top scenarios capture public imagination – using AI instead of a lawyer in court or consulting it instead of a medical doctor – this technology is not human. AI is still a prediction engine built on statistical models. The current iteration of Chat GPT has the processing power of a squirrel, certainly not the intelligence of a human. “We are witnessing the overhype now because of the recent inflexion point with predictive modelling. These massive jumps in capability appear to come out of nowhere, and that causes a lot of consternation. “The latest leap is the result of two important developments: the data sets used to build statistical models that train AI have become bigger and less structured, and
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our approach to modelling has leapfrogged as computing power has become faster and cheaper. “Technological innovation is nonlinear, and this may mean the hype around AI will fade until the next big leap occurs. The human fear of technology-induced obsolescence has been playing out since the industrial revolution – we are just observing the latest instalment.”
JUMPING ON THE HYPE TRAIN
With artificial intelligence dominating current discussions, what strategies are fintech companies adopting to incorporate it into their operations as they approach 2024? Is AI transitioning from a ‘nice-to-have’ to an essential component? Uya Smirnov, head of the AI department at software development company Usetech thinks so. They said: “Artificial intelligence is no longer a trend that has been actively talked about recently. It is a necessity for businesses that want to keep up with the times. This is confirmed by international exhibitions and conferences. For example, this year our company took part in GITEX GLOBAL, where the giants of the technology industry were represented. Many companies presented AI-based solutions, and so did we. Visitors showed a deep interest in these
solutions, which make it possible to optimise workflow, increase productivity and automate routine processes, thereby increasing business profitability.” Eric Bierry, CEO at Sopra Banking Software, agrees with this, commenting: “AI is no longer optional for any company that works with banks.” He continued: “We’ve spent the past year preparing banks, operationally, to introduce AI to customer-facing interactions. While companies in other industries can experiment directly with their customers, banks have to mitigate risk and ensure that any new capabilities they introduce have reached peak maturity before going primetime. “The industry is currently in the midst of a large-scale transition towards conversational banking, defined by banks’ ability to provide intuitive, hyper-personalised financial recommendations to their customers. “Allowing technology to manage these interactions while maintaining the human-centricity that consumers are used to in their current interactions won’t be possible without AI. “Before banks begin furiously implementing their AI roadmaps, however, they need a foundation to
support what they’re doing – not to mention, one that complies with industry regulations in every region that they operate. “Our role is making sure they have an end-to-end banking platform that supports a wide range of core banking services, including deposits, payments, lending, compliance and regulatory reporting, as well as any new AI capabilities they conceive of.”
FIGHTING FRAUD
One significant application of AI is in the arena of fraud detection and prevention, a particularly valuable weapon for financial institutions and fintech companies. According to Juniper Research, global spending on AI-enabled financial fraud detection and prevention strategies is projected to surpass $10billion by 2027, a substantial increase from slightly over $6.5billion in 2022. Carol Hamilton, chief product officer at Provenir, an AI-powered credit risk decisioning platform, expands on this: “As financial fraud and risk vectors are constantly evolving, AI’s ability to learn from real-time data to respond to evolving risks makes it an ideal fit to take on the fraud fight. The process starts when onboarding a new customer where AI can help prevent fraud with early detection. AI is particularly powerful as it continually monitors
F E AT U R E S T O R Y THE FINTECH TIMES
to adapt to changes in fraud risk over time, enabling organisations, through the use of data and advanced analytics such as machine learning, to deploy preventive measures to minimise the impact. “By adopting dynamic AI-infused strategies, financial institutions and fintechs can transition from traditional policy-based approaches to those that leverage machine learning algorithms to radically improve the speed and accuracy of fraud decisioning.” Vashon Gonzales, CEO of, Paygeon echoes this view, with the company’s B2B payments platform utilising AI in its operations. He said: “Beyond streamlining processes, AI will be a cornerstone in risk assessment and fraud detection, aligning seamlessly with our mission to provide cutting-edge fintech solutions through the innovative use of our smart corporate card. Our entire platform is powered by AI, making our corporate card the first “smart” card in the market with its unique ability to pay invoices and other bills as well
as dispute fraudulent ones automatically for startups using an unsecured line of credit.”
EFFICIENCY, EFFICIENCY, EFFICIENCY
Elsewhere in fintech, there are many other use cases for artificial intelligence, particularly for streamlining certain processes and helping to make operations faster. “There are a few areas where AI is becoming pretty important. Could we do our business without it? Yes. But we’re using AI to do business faster, better, and cheaper,” said Tristan Barnum, chief marketing officer at Wildfire Systems, a white-label monetisation platform. “For example, we have a process that used to involve a handful of people reading through tons of text, gleaning out the important bits, and formatting that into something our platform could use. AI has taken over almost the entirety of this process, doing it 99 per cent faster and more accurately, with a single person overseeing it and validating its output. We’ve also invested in access to generative AI tools for all of our employees to use creatively (this goes hand in hand with an AI policy) so they can leverage it in their own jobs, multiplying their throughput, and alleviating the tedium that nearly everyone experiences doing certain aspects
of their work. This is a great way to encourage innovation throughout the organisation, as everyone l oves sharing their latest AI ‘wins’, which then sparks ideas in others, so the innovation ripples through the whole organisation.” Thomas Mehlkopf, head of working capital management at Taulia, a provider of working capital management solutions, added: “AI is reshaping the landscape of working capital, and its momentum is poised to accelerate in 2024. Businesses are increasingly recognising the pivotal role of AI in enhancing operational efficiency, refining financial planning, detecting fraud, and mitigating bias. “At Taulia and SAP, we’re embracing AI and are already seeing its substantial potential by seamlessly connecting data across end-to-end business processes. In the landscape of working capital and supply chain resilience, we leverage AI to anticipate the liquidity needs of suppliers, tailoring solutions to meet their specific requirements. We also deploy GenAI and AI
forefront when engaging with AI, meaning that it must align with regulatory requirements and be fed with accurate and honest data. By approaching AI implementation from this perspective, businesses are behaving responsibly, while embracing the potential of new technology.”
NOT A SILVER BULLET
Despite the hype surrounding AI, for some companies, it’s not all it’s cracked up to be. Far from being a magic wand, in order to make the most of it a huge amount of planning is involved in its implementation and the ethics around it. “AI is certainly at the ‘peak of inflated expectations’ of the hype cycle in fintech,” suggests Nico Simko, co-founder and CEO of Clair, a fintech company offering free, consumer-friendly on-demand pay. “We’ve been exploring ways to leverage AI at Clair but feel that increased access to data is more powerful than the technology itself. The predictive models we’ve deployed have so far performed worse than when we focus on increasing the number of inputs to
its initial stages, with vast potential for further innovation in the future. Pavel Shynkarenko, founder and CEO of Solar Staff, a freelance workforce management solution, said: “AI is the new electricity. It is the same technology without which, in a couple of years, we will not be able to imagine the existence of the world. But as with any great technology, it needs time – the current spread of AI is insignificant, and such solutions may lose out to those created earlier. When the first cars came along, they were worse than horses. When email came along, telegrams and faxes were still more reliable. AI is going through a similar period right now. Christoper Alexander, chief analytics officer for Web3 company, Pioneer Development Group, also added: “AI is not so much overhyped as it is misunderstood. Current AIs do not have superhuman intelligence, but they do have superhuman endurance. AI today takes the role of dozens of low-level analysts who work 24
“THE INDUSTRY IS CURRENTLY IN THE MIDST OF A LARGE-SCALE TRANSITION TOWARDS CONVERSATIONAL BANKING, DEFINED BY BANKS’ ABILITY TO PROVIDE INTUITIVE, HYPER-PERSONALISED FINANCIAL RECOMMENDATIONS TO THEIR CUSTOMERS”
capabilities to resolve customer disputes or bank statements reconciled faster.” “However, amid the buzz surrounding AI, it is important for businesses to navigate through the noise. An integral part of AI implementation involves weaving ethics and regulatory compliance into the fabric of its usage. Prioritising responsibility should always be at the
our regular models. We envision powerful future use cases for underwriting and user scoring, so we’ll continue to test AI in ways that make sense for our business as the technology evolves. “Ultimately, we expect AI will help us connect the dots on multiple inputs for predictive models on creditworthiness, that we haven’t been taking into account today. We hope this will allow us to underwrite a broader set of people for our zero-cost advance feature and start extending longer-term forms of credit to those with high income and expense variability. So, it may be over-hyped today, but there is true potential!”
THE NEW ELECTRICITY
Nonetheless, AI can serve as an incredible asset for businesses, and it’s important to note that it is still in
hours a day, seven days a week. Current AI is a world-changing productivity tool, but it won’t cure cancer on its own. However, it might greatly increase the odds of a human being succeeding as a result of its presence. “With all new technologies you see the early adopters drive immense excitement. Soon after launch the utility of the technology better aligns with the expectations set by the enthusiasts. With AI, the use cases are so profound that they have an outsized effect on people’s imagination. I think the more distant future is being meshed with probable near term and AI is taking up more attention than it warrants. Given how it can change the future, I think this is probably better than being ignored.” www.thefintechtimes.com
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CEO INTERVIEW THE FINTECH TIMES
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ecoming a CEO does not happen overnight. Despite the perceptions that come from LinkedIn, where one day you’re not at the helm of the company and the next you are, the reality is, the transition takes time. Not only do you need to possess the ability to lead, but you need to have a deeper understanding of the company and culture you’re working for. This isn’t always easy to do by yourself, but knowledge-sharing is an imperative way of making this more possible. Peter Reynolds, CEO of ThetaRay, a cloud-based, AIpowered financial crime detection solution provider, is a testament to the value of learning from previous CEOs as he spearheads a company working to reshape the narrative on artificial intelligence’s potential benefits. Francis Bignell, journalist and LatAm lead at The Fintech Times, sat down with Peter Reynolds to delve deeper into his journey. THE FINTECH TIMES: Firstly, introduce us to ThetaRay PETER REYNOLDS: ThetaRay helps banks and fintechs move money across the world, considering the very onerous anti-money laundering (AML)/ regulatory environment that exists today. We enable them to allow good money to flow around the world very easily, while stopping bad money. This category, one we established, is called Trusted Global Payments – putting the required trust behind global payments and global transactions. We are a very global organisation with people all across the world and offices in New York, Tel Aviv, Madrid, London and Dubai. In terms of our products, we offer AI-based transaction monitoring
and sanction screening. This is the ability to look at all transactions and customers, simultaneously monitoring and asking questions, such as are they the right kind of transactions and are they the right kind of customers? We then have some very exciting modules on top of that list, such as Entity Resolution, Network Analysis and Customer Risk Rating. TFT: How would you describe
your leadership style and the culture at ThetaRay? PR: The company, the culture and my style are all very purpose-led. ThetaRay provides technology to banks and fintechs to help grow their businesses while complying globally with very complex AML rules. But we’re also helping these financial institutions uncover illicit activity. So it could be terrorist financing, it could be money laundering, or it could be human trafficking. TFT: Could you tell us about
your career path? How did you get into this industry and what are you most proud of? PR: When I joined ThetaRay, I joined as chief revenue officer and becoming CEO was something that was important to me and a very proud moment. I studied in London, did a law degree, and then went into banking at HSBC and fell into software sales afterwards, going to what was Thomson Financial at the time, but now, Thomson Reuters. I then progressed through a variety of software companies. I joined a New York-based derivative risk management company where I was selling out of London, and started as a sales guy, working my way up to sales leadership and then general management. I then got involved in the Israeli fintech scene with my first role running sales for a
company called Fundtech. I then moved to an insurtech called Earnix before arriving here at ThetaRay. In fact, a venture capital firm called Jerusalem Venture Partners was invested in Fundtech. Earnix and ThetaRay. So working with them through that journey is something that I’m also very proud of. At the last two companies, I’ve also worked with the same chairman, Erel Margalit. I’m also proud that I’ve managed to keep in touch with all of the CEOs of my previous workforces, and have grown through that. Many have become personal friends and I think that shows that as you progress through these companies, you’re adding value to the fact that you leave and stay in touch with your old CEO bosses. When becoming a first-time CEO, having a bench of previous CEOs that I can go to for help is very useful. Some CEOs I’ve worked with in my career had an amazingly positive and mentoring impact on me. As such, I set myself the standard that I can also help mentor people and help them get where they want to go. I believe in the ability to help talent grow, mentoring people and giving them a similar opportunity. TFT: How did you find the shift
from chief revenue officer to chief executive officer? PR: When it breaks on LinkedIn that you’re CEO, everyone thinks it’s news. But it’s something I’ve been working on for many years. When I joined ThetaRay, having known the investors, chairman and the previous CEO really well, it was a very managed transition into the role. I started doing more, taking on more responsibilities. This included some of the things that maybe as a CRO you haven’t done as much before, such as working with investors and helping set the strategy of the company.
Navigating the
Growing up in your career, you kind of feel you know everything, especially in a sales role. However, I think the biggest or the most important strength of being a CEO is actually to understand the bits you don’t know and to be able to go to people and talk about ‘Well, here’s what we’re doing and this is what I’m trying to do – give me your advice around that.’ TFT: What have been the biggest
hurdles in your career so far? PR: The most challenging part, and I want to clarify that I don’t see it as a negative, was when we undertook our fundraising efforts. We raised a large amount of money ($57million) at a time when raising was harder. Nowadays, to raise you have to own a category and you have to have amazing growth – almost unusual growth. You also need to have very strong financial economics. Plus, you’re juggling fundraising alongside your regular day-to-day responsibilities. And there are a lot of moving parts, especially when you enter into due diligence and you have to choose the right partner. Fortunately, we were quite lucky because we had several different options in terms of who we could raise with. I previously thought this would be a great position to be in because you can now choose, but as the CEO doing a raise, faced with so many different options, it is quite challenging because you know you have to choose the best partner. All in all, the process of raising money at a time when it’s hard to raise money is definitely a challenge and something that you need a very strong team for. I would be surprised if many first-time CEOs who had
CEO
path to
In a conversation with Peter Reynolds, CEO of ThetaRay, The Fintech Times delves into his insights on leadership and the transformative role of AI 10
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CEO INTERVIEW THE FINTECH TIMES
fundraised didn’t tell you that that was one of the most challenging things they’ve done. That said, we are incredibly happy with our new investor (Portage) that led the round. TFT: What are your interests
and passions out of work? PR: It’s very important that people have a headspace outside of work. You can get very carried away in high-growth companies and always be working. I think most people got to that stage during the Covid era, where they just sat at their desks all the time; I’m not a fan of this. So I lead by example. I have a very involved family life; a wife and daughter to keep me very busy and grounded and make sure I do my fair share of chores around the house, which is nice. I also have a couple of dogs that I walk and I like listening to podcasts too. I’m also very pro people having an interest outside of work. I’m a trustee of a phenomenal charity
called Tofauti. It’s a charity set up by an England hockey player, called Crista Cullen, who won an Olympic gold medal. She set up a charity in Kenya to help deal with human-animal conflict and farming issues. I really like helping there – they’ve got some very cool
What the industry is going to spend its time doing is checking how good your AI is, and how much of a problem your AI can solve rather than it being a buzzword that people say
products that they implement in Kenya and I help them raise money. I believe, as a company, you need to give your team the ability to have outside interests, which includes time to do so. So I give up a few hours every month for this charity and I give them advice and raise money and I get really into it. I think by having a passion outside work, you bring a bigger passion to work. You’re just a more well-rounded person in what you’re doing. TFT: What have been your
highlights of 2023 and what have been the biggest lessons learned? PR: Shifting focus from the fundraising success, in the sales industry, hiring people can be a hard thing to get right – you can end up making a lot of costly mistakes when doing it. I wanted to create a culture whereby we could take young business development people already in the business and move them through into the sales world. The aim was to help us promote existing talent into key roles and this year we’ve really put this into practice with great success. We’ve had a lot of young people come through into sales roles and it has taught me that
if you build the right culture – one that people can thrive in – and you provide them with knowledge, they can use this to grow to the next stage of their career. It really is a win win. TFT: How do you think the
AML landscape will evolve in the future? PR: So number one, you’ll find AI changes the game in terms of being able to detect financial crime efficiently. I also think if people can understand that AI is going to help stop human trafficking rings, terrorist financing money going around the world and poaching too – it would be a huge positive. This will help break down the misconception that AI will ruin and take over the world. I think there’ll be a positive move to AI in terms of what it can do. It will be interesting for software companies as they are going to be judged on the effectiveness of their AI (in terms of their results and ability to implement it). Currently the way you develop AI seems to be you spend many years taking an academic approach to the tech, as we did (that takes five to 10 years and costs tens of millions of dollars), or you can just get your marketing team to write it on a slide... What the industry is going to spend its time doing is checking how good your AI is, and how much of a problem your AI can solve rather than it being a buzzword that people say.
AT A GLANCE ThetaRay’s AI-powered SONAR transaction monitoring solution, based on artificial intelligence intuition, allows banks and fintechs to expand their business opportunities and grow revenues through trusted and reliable cross-border payments. The solution also improves customer satisfaction, reduces compliance c osts, and increases risk coverage. Financial organisations that rely on highly heterogeneous and complex ecosystems benefit greatly from ThetaRay’s low false positive and high detection rates. Company: ThetaRay Founded: 2013 Category: Software development Headquarters: New York, US and Tel Aviv, Israel Website: www.thetaray.com Linkedin: www.linkedin.com/ company/thetaray
www.thefintechtimes.com
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S TA N D O U T M O M E N T S THE FINTECH TIMES
Memorable Events in Fintech A YEAR IN FINTECH
JANUARY
Toronto for 2023, its theme ‘collaborative finance in a fragmented world’ addressed current financial dynamics and topics including sustainable finance, risk management and trust.
“Financial technology is the future, and we are determined to make it ours” was the rallying call from the chief of Hong Kong on the opening day of the city’s two-day Asian Financial Forum (AFF) in January. In its 16th year, the forum returned as an in-person event in Hong Kong for the first time in two years following the onset of the Covid-19 pandemic. Restrictions along the city’s shared border with the mainland of China were lifted at the same time.
OCTOBER
FEBRUARY
LEAP23, the technology conference in Riyadh, Saudi Arabia, celebrated record-breaking attendance, making it one of the world’s best-attended global technology events. The conference was closely aligned with defining the Saudi Vision 2030; an economic diversification framework set to transform Kingdom’s service sectors and manoeuvre its dependence away from oil.
MARCH
Over 850 attendees and 150 expert speakers from the financial industry came from across the globe to the Queen Elizabeth II Centre in Westminster, London to attend MoneyLIVE Summit 2023. While the PAY360 conference, hosted by The Payments Association at Old Billingsgate Market in London, welcomed 2,000 senior representatives from banks, merchants, government, investors, fintechs and more to discuss all things payments.
APRIL
Innovate Finance Global Summit (IFGS) 2023 at the Guildhall in the City of London hosted a huge number of fintech and financial services companies. The ninth successive year of IFGS attracted more than 50 countries and over 1,500 people to the City 12
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of London’s historic Guildhall. More than 60 UK exhibitors also demonstrated the latest technologies for the future of finance.
MAY
EPiC 2023, a pitching competition for mid to late-stage global fintech startups, saw hopefuls take a 60-second elevator ride in Hong Kong’s tallest building in a bid to sell their ideas to investors and industry leaders. In its seventh year, the annual Hong Kong Science and Technology Parks Corporation (HKSTP) event put the spotlight on Hong Kong’s investment and innovation opportunities with the top fintech gong going to FinCrime Dynamics.
JUNE
Money20/20 Europe marked its 2023 return to RAI, Amsterdam with eight stages, 300-plus speakers, 200 sessions and 8,000 people from almost 90 countries across three days. Plus, Fintech Week London 2023 returned for the third-year running - this time at Tottenham Hotspur Stadium in North London.
JULY
Moneyhub, Hargreaves Lansdown and Joiin were among the winners at
the inaugural Fintech Awards South West, held under the wings of the world famous Concorde in Bristol. The Fintech Awards South West celebrate and recognise the outstanding achievements of fintech companies in the South West of the UK, including Bristol, Cornwall, Dorset, Devon, Gloucestershire, Somerset and Wiltshire.
AUGUST
The 2023 UK Fintech Trade Mission to Australia’s Intersekt Festival is a mission organised by the Department of Business and Trade (DBT) provided participating companies with an opportunity to network, pitch sessions and connect with key stakeholders and decision-makers in Australia’s fintech ecosystem. The signing of the UK-Australia Free Trade Agreement (FTA) and the UK-New Zealand FTA bolstered the opportunity for UK-based companies in the APAC region.
SEPTEMBER
Sibos, organised by Swift, first began in Brussels in 1978 and has since reached citied like Amsterdam, Copenhagen, Sydney, and Boston. Back at the Metro Toronto Convention Centre (MTCC) in
Dubai, a city known for its grandeur and innovation, took centre stage in the global sustainability movement with the Future Sustainability Forum 2023, aiming to be a catalyst for change and a beacon of hope in the face of climate change. While, Seamless Europe at the Messe Berlin convention centre in Germany’s capital served up insightful discussions and thought-provoking presentations on the future of finance, technology and innovation.
NOVEMBER
From Singapore to Manchester, with London and Dubai thrown in for hot measure, November provided a deep dive into the world of blockchain, cryptocurrencies, digital assets, embedded finance, talent, growth and financial inclusion. Singapore’s FinTech Festival drew a healthy audience of 66,000 participants from 150 countries and regions, surpassing the 62,000 attendees from the previous year.
DECEMBER
Fintech Connect’s mission is to connect the global thought-leaders across the fintech ecosystem in an exhibition and conference like no other. Empowering financial institutions with cutting-edge technology, tools and innovation is under the spotlight in FinTech Connect’s landmark 10th year. More then 3000 global attendees – from forward-thinking startups to the C-suite of major financial institutions – have made their way to London.
S TA N D O U T M O M E N T S THE FINTECH TIMES
TFT’S 2023
TAKEAWAYS
CLAIRE WOFFENDEN, EDITOR IN CHIEF, THE FINTECH TIMES “In 2023, my fintech journey has taken me to destinations across the globe, including the bustling financial hubs of Hong Kong, Toronto, Berlin, London, Amsterdam and more. I’ve gained valuable insights into the emerging trends in financial technology and enjoyed learning about the global fintech landscape. But the most memorable moments for me have been closer to home with the past 12 months witnessing a strong focus on the growth of regional fintech ecosystems across the UK. In February, the Centre for Finance, Innovation, and Technology (CFIT) chose Leeds for its official launch. This marked a pivotal moment for the UK’s financial innovation sector – CFIT’s establishment was a direct response to the Kalifa Review of UK Fintech, which provided a roadmap for maintaining the UK’s leadership in fintech innovation. CFIT’s mission is to establish a central force that harnesses expertise from across the financial innovation space, setting strategic priorities and driving sector growth and
fostering national connectivity that breaks down barriers to growth – reflecting the impressive expansion of UK fintech sector beyond London. I also enjoyed the opportunity to attend the inaugural Payments Association networking event in Newcastle in November, as well as other regional conferences throughout the year – events that highlighted fintech’s success across the entire UK. One overarching theme that has consistently stood out to me across all the events I’ve attended and the industry conversations I’ve had is the overwhelming shift in focus towards artificial intelligence (AI). It’s as if skipping a discussion about AI in your presentation these days is like showing up to a fancy dress party without a costume – you’ve definitely missed the memo, and everyone’s looking at you like, ‘What are you even doing here?’. Amid all the excitement about AI, it would be great to see more people remember that while technology is a powerful tool, it’s not the destination itself. What’s even more important is thinking strategically about how we can harness these technological advancements to create solutions that truly address the needs and challenges of our industry, our society, and our planet. I look forward to seeing how 2024 progresses!”
FRANCIS BIGNELL, JOURNALIST AND LATAM LEAD, THE FINTECH TIMES “2024 has been a crazy year for fintech and when I think back on the past year, three things have really stood out to me. The first is definitely the state of cryptocurrency and its regulation. I remember at the backend of 2021, crypto was at an all-time high and it really seemed like the sky was the limit – it was all anyone spoke about. Since then, though, it’s felt like the positive hype has somewhat been replaced by negative press – especially after the crypto disasters that have taken place. The call for regulations has never been stronger, and in the US especially, regulators have been battling with crypto exchanges, resulting in some threatening to move their headquarters out of the country. The notable one for me is Coinbase. Earlier this year, Coinbase acquired a license to operate in Bermuda and there were talks of it moving its HQ there. Only a couple months later, Coinbase was battling the SEC again following lawsuits. Those few months of crypto tension really stood out to me. I suppose my standouts have really focused on regulations as another massive standout for me was consumer duty regulation being launched by the FCA. A year in the making, the rules to protect UK consumers were finally published, and I think the impact they’ll have is great! Lastly, on a personal note. For private reasons, I was unable to attend events the past few years, but in June 2023 I was finally able to make it to one: Fintech Week London. Being in and among some of the best minds in fintech was inspiring and I’m looking forward to next year and the opportunities it will bring!”
POLLY JEAN HARRISON, FEATURES EDITOR, THE FINTECH TIMES “A memorable moment for me in 2023 was being on one of the main stages at Money20/20 Europe in Amsterdam as I chatted to Philip Belamant, CEO and cofounder of Zilch, about its new adsubsidised-payments-network (ASPN) platform launch as well as its rapid growth in the industry. It was definitely a highlight of my career so far. It was also excellent to be part of the Rise Up programme at Money20/20 once again, having some incredible conversations about diversity within fintech was just fantastic. On a wider fintech front, like many I know that consumer duty is going to be a huge turning point for consumer protection, particularly the new crypto marketing rules which I also had the pleasure of speaking about on stage at Fintech Week London at Tottenham Hotspur Stadium. Artificial intelligence (AI) has become a household name this year is and it’ll be interesting to see how this plays out in fintech in the coming year, and seeing whether AI is really all it’s cracked up to be. Financial super apps has also been an interesting note this year, with Twitter’s transition to X under Elon Musk’s lofty ambitions to be an all-encompassing everything app, it feels like many other big brands are looking to break into a similar model - who will win?! I am also obsessed with QR codes, so any news involving QR payments always stand out to me, and Southeast Asia’s QR code solutions have been taking the industry by storm. I’ve also been watching the evolution of BNPL with great interest, and how the sector moves beyond its hype from a few years ago and cements itself as a viable payment option is something that I’ll continue to keep track of in 2024.”
TOM BLEACH, JOURNALIST, THE FINTECH TIMES “This year has been a fintech rollercoaster. Much of my year has been about documenting the struggles of the industry thanks to various macroeconomic factors. But as the Bank of England increased its base interest rate several times over, I’ve enjoyed seeing how fintechs are combatting and surviving this difficult landscape. The FCA’s new consumer duty regulations were also an extremely important development but the cynic in me wonders if all firms will receive the support they need to comply with new rigorous regulations and get the best out of them. I’m also sorry to admit I have enjoyed watching the crypto drama unfold throughout the year. The US regulatory battle with various crypto firms came to a head at the end of November, and I will continue to keep a keen eye on how this landscape develops throughout 2024 (while continuing to pray for the revival of my lockdown crypto investments!). It’s impossible to discuss 2023’s memorable moments without touching on AI (said every fintech panel session this year…) and it looks to me that it is genuinely the next revolutionary technology and I’m excited to see how it changes the way we live in the near future - and markedly less excited about how quickly ChatGPT ships me off to the job centre. This year has also opened my eyes to the true extent of fintech spanning the width of the globe. Speaking to a number of fintech firms and individuals in and around the Hong Kong Science Park; at GITEX Africa in Morocco; at Seamless Middle East in Saudi Arabia; as well at numerous points around London, has highlighted that governments everywhere are recognising the immense opportunities in fintech and that the global race to become the leading fintech hub is really heating up!”
www.thefintechtimes.com
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DIVERSITY THE FINTECH TIMES
Embracing youth in fintech boardrooms Fiona Hathorn, CEO of WB Directors – the Women on Boards network, explains why it’s time for firms to close the generational gap in the boardroom
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iversity has become a big talking point in the fintech industry. Gen Z and millennials make up more than a third of the global workforce and a large proportion of the customer base. However, very few boards of directors hear from young people as the majority are in their mid to late 50s. When it comes to the boardroom, extensive experience and a proven track record of success has long held sway. Despite attempts to diversify candidates the most sought-after people are still those with existing board or C-suite expertise, while aspiring, younger directors struggle to break in. In fact, according to the UK Spencer Stuart Board Index, the average age of non-executive directors has increased from 59.9 to 60.9 years despite Gen Z and millennials making up more than one-third of the global workforce. While experience is an important factor and it is entirely appropriate that board and non-executive director roles are filled by people with corporate longevity, boards are starting to recognise the importance of having diverse perspectives represented in the boardroom. This includes the voices of younger generations. WB Directors recently collaborated with KPMG on its Leaders 2050 initiative, which provides companies with a framework for how to include 14
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the ‘voice of young professionals’ in decision-making. Particularly when it comes to the climate and decarbonisation. KPMG found that 95 per cent of organisations believe they need to improve the integration of young voices in decision-making, yet only 28 per cent believe young professionals are heard at leadership levels. There is a sound business case to incorporate generational diversity in the boardroom. Organisations must be agile and open to change to maintain their competitive edge. While many areas of the business have undergone transformations, the boardroom has moved at a slower pace. For decades it seems that the duty of company boards was to protect financial wealth and maximise profit growth over and above everything else but societal shifts and changing expectations have meant that boards now have to respond to the expectations of a broader range of stakeholders, including employees, customers, and communities.
BENEFITS OF YOUTH Young people can bring a different energy and enthusiasm to the boardroom, which can lead to more innovative and forward-thinking strategies, as well as a better understanding of the needs and desires of younger consumers. Younger generations can also offer valuable insights into the latest trends and developments in their industries, which can be helpful for long-term strategic planning. They are more likely to be open to trying new technologies and digital tools, which can help boards stay up-to-date and competitive in today’s fast-paced business world. Companies are also finding that young board
members also have a more optimistic and forward-thinking perspective, which can be a valuable asset to boards that are looking to drive change and innovation. Furthermore, having younger people on boards can help companies understand the values of an increasingly purpose-driven and changing consumer landscape. From a commercial standpoint, this helps a company to position its brand with the consumer and from a culture perspective, embracing the views of younger employees can help re-engage workers as well as attract a younger talent pool. The companies we work with are also seeing an unexpected benefit – giving younger employees direct access to the senior management team and the running of the business provides them with invaluable insight into the complexities and nuances of navigating some of today’s most pressing issues and in turn, greater appreciation for the obstacles and challenges involved in running a business.
“YOUNG PEOPLE CAN BRING A DIFFERENT ENERGY AND ENTHUSIASM TO THE BOARDROOM, WHICH CAN LEAD TO MORE INNOVATIVE AND FORWARDTHINKING STRATEGIES” RENEWABLEUK This element is certainly one of the gains RenewableUK has reported since it set up its shadow board – a cohort of younger staff to work alongside their main board. Among other topics the shadow board has been developed to help companies scale up even faster on renewables and accelerate the UK’s transition to a net zero future.
Tapping into the drive, creativity and originality of this tech-savvy generation is proving invaluable to RenewableUK and its members. What helped to make the RenewableUK initiative a success is a partnership with WB Directors to ensure that shadow board members have the support and learning about how to engage effectively in a board environment as well as the skills to take back to their day jobs and help position themselves for the promotion opportunities they merit.
HIGHLIGHTING THE IMPORTANCE OF DIVERSITY It’s clear that business is reliant on diversity – of experience and of thought – and having input from different demographics has many positives. When we start to reimagine board-ready candidates through a lens of ‘talent’ versus ‘experience’ – the possibilities are rather exciting. Here’s how to ensure your shadow board makes a meaningful impact: ■ Ensure a diverse mix of genders,
ethnicities and professional disciplines and you will reap the benefits of a strategy that is richer, more innovative, more in touch with society. ■ View the opportunity as a way to nurture your greatest talent and position them as future leaders by investing in the right skills training, particularly around what it means to operate in a non-executive capacity. Done well, your shadow board can be a form of succession planning. ■ Coach, rather than manage – this will empower your younger staff and ensure you get the best from them. ■ Actively listen and embrace the views of your shadow board. Whether about new technology or social responsibility, be humble, fully engaged and prepared to act on what you learn.
FINANCE THE FINTECH TIMES
Broadening credit’s potential AI will transform the credit industry by putting the customer first, says Adrian Nazari, founder and CEO of personal finance company Credit Sesame
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n 2023, a good credit score is your golden ticket to a world of opportunities and opened doors – when your score is up, lenders view you as money-smart which leads to better loans, great interest rates and the freedom of higher credit limits. It can tip the scales in your favour when apartment hunting or searching for jobs. Yet many Americans still don’t understand what factors determine their credit score, let alone how to improve it. In the early 2000s, most people checked their credit score once a year, mainly from the big names Equifax, Experian and TransUnion, but as we neared 2010, the fintech world started shaking things up. Suddenly, we had online tools to check our scores on-demand, get advice and view full reports whenever we wanted. By the late 2010s, our credit data was everywhere and in many formats. With all this information came a new problem for consumers. Banks and technology companies were flooding us with tons of credit data. There were myriad ways to measure scores and heaps of report details that kept changing. It started to feel less about just getting your score and more about navigating a maze to figure out what it all means. The overabundance of data leads to cognitive overload for the everyday consumer, resulting in a sort of action paralysis. Managing and optimising our credit can seem daunting in a digital era where finances are intricately interwoven with our daily lives. However, the evolution of technology has presented us with previously unimaginable solutions. Among these recent advancements is the development of personal AI credit advisors that have the potential to revolutionise how consumers engage with their finances and simplify an outdated, confusing system giving power and knowledge back to consumers.
CONSUMER DISSATISFACTION WITH THE CREDIT INDUSTRY
Such an overwhelming landscape leads to ambiguity, leaving many feeling lost in the convoluted credit universe. This sentiment resonates with the Consumer Financial Protection Bureau (CFPB) findings. Its 2022 report spotlighted that a whopping 75 per cent of consumer financial market grievances revolved around credit or consumer reporting. The prime concern? Inaccuracies on consumer credit reports are often at the heart of these complaints. In line with this, two 2022 publications echoed these concerns. First, the Wall Street Journal highlighted that Equifax had dispatched flawed credit scores for millions. Sometimes, these deviations swung by 20 points or more, enough to make or break loan applications or influence interest rates. Secondly, our own survey at Credit Sesame uncovered startling revelations: approximately one in six Americans remain oblivious of their credit scores, and a staggering 40 per cent were unaware that these scores determine lenders’ trust in their repayment abilities. While the financial industry is a powerhouse of innovation and is moving at lightning speed to improve their data and accuracy, there’s a challenge with the tools consumers have that are not keeping up – tools that are still just about a number and some product recommendations.
AI-SIMPLIFIED CREDIT MANAGEMENT
At the intersection of AI and credit management, there’s immense potential waiting to be unlocked. AI and machine learning can intricately analyse spending habits, payment histories, and more,
offering bespoke recommendations to boost credit scores and overall financial health. Given the pace at which the financial sector is innovating, there’s a stark disparity between the advanced tools available to industry professionals and the dated, rudimentary tools offered to the average user. This gap represents a significant challenge, yet simultaneously, a monumental opportunity. We’re determined to place consumers at the forefront, harnessing our robust AI capabilities to ensure they stay on par with industry advancements. From my experience, I’ve always believed that while credit might seem daunting to many, simplifying it is the key. Traditionally, lending has been optimised for lenders. They take in billions of data points to ensure they make the right decision for their own interests. But, leveraging AI can make those same data points easy to understand for the consumer. What it really takes to demystify the entire credit process is a deep understanding of the mechanics of lending and credit scores, combined with an ability to break it all down into straightforward and uncomplicated pieces.
Given the pace at which the financial sector is innovating, there’s a stark disparity between the advanced tools available to industry professionals and the dated, rudimentary tools offered to the average user We’re at an inflection point in the personal credit continuum: the next phase for the industry will be to leverage AI to find the key areas that a customer should understand and solve right away and get real time, bespoke advice on
various kinds of actions to help improve their score. That’s exactly what our AI does for our customers. Taking all of this into account, Credit Sesame has introduced Sesame Ring™, our latest innovation that helps demystify the complex world of credit. We distil complex data into visually captivating and understandable formats. Users can quickly gauge their Sesame Grade™, credit score specifics and a summarised credit report with the Sesame Ring. Furthermore, we also equip them with actionable plans, intelligent alerts, comprehensive credit monitoring and assistance with dispute resolutions. Think of it as a free personal credit advisor who is available 24/7.
THE FUTURE OF CREDIT
Peering into the future of credit management, there’s a palpable need for tools specifically designed for consumers, not the corporations and big banks. Our AI tools have shown us that almost all customers have a problem on their credit profile they can fix (even high score customers), a product they can sign up for that will save them money or provide better benefits. These tools sift through billions of data points to identify how a person is managing their credit and provide them with actionable steps they can take to improve it while empowering them to grasp their full-picture credit information seamlessly. Elevating credit data accessibility via user platforms and pushing for more transparency from credit agencies is the need of the hour. This will facilitate a clearer understanding of one’s credit status and guide the journey toward improvement, and ultimately better quality-of-life. It’s essential for individuals to access these reports and truly understand the nuances of credit scores, manage their finances wisely and make educated decisions. It’s imperative that everyone can understand their score and are provided with the tools to improve their overall financial fitness. Looking ahead, AI will be a game-changer in providing consumers an advantage and ushering them into the vast realm of finance confidently. The ultimate goal? To empower consumers to achieve their financial goals – whether that is a new home for their family or driving off the lot with a new car. www.thefintechtimes.com
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R E G U L AT I O N THE FINTECH TIMES
AI SECURE BY DESIGN
Collaborative global guidelines are reshaping the future of artificial intelligence development by placing cybersecurity at the forefront while allowing ethical decisions to be determined on a jurisdictional basis, explains Tom Bleach, journalist at The Fintech Times
Cybersecurity is key to building AI systems that are safe, secure and trustworthy. “By integrating ‘secure by design’ principles, these guidelines represent a historic agreement that developers must invest in, protecting customers at each step of a system’s design and development. Through global action like these guidelines, we can lead the world in harnessing the benefits while addressing the potential harms of this pioneering technology.”
THE CRITICAL ROLE OF CYBERSECURITY
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oping to maximise potential by safeguarding AI technology from cyber threats and bad actors, the UK National Cyber Security Centre (NCSC) and the US Cybersecurity and Infrastructure Security Agency (CISA) have joined forces to create guidelines for secure AI system development. The new guidelines look to support developers of AI systems when making cybersecurity decisions at every stage and level of the development process. The new UK-led guidelines have also become the first of their kind agreed globally; with agencies from 17 other countries confirming they will endorse and co-seal the new guidelines. NCSC explained that the new guidelines will help developers ensure that cybersecurity is both an ‘essential precondition of AI system safety’ and must be considered as a priority through every part of development, known as the ‘secure by design’ approach. Lindy Cameron, CEO of NCSC, explained: “We know that AI is developing at a phenomenal pace and there is a need for concerted international action, across governments and industry, to keep up. “These guidelines mark a significant step in shaping a truly global, common understanding of the cyber risks and mitigation strategies around AI to ensure that security is not a postscript to development but a core requirement throughout.” Primarily, the guidelines focus on enhancing the security of new AI technology and leave the ethical questions to each jurisdiction to decide for themselves.
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KEEPING BAD ACTORS AT BAY
Dr John Woodward, head of computer science at Loughborough University, discussed the need for increased oversight in the world of AI: “AI will have many benefits that we are aware of, but there will also be some hidden dangers. “One of the major challenges of regulation regarding artificial intelligence is obtaining agreement between countries. Of course, each country wants to have a competitive edge over other countries and we will all see the risks and benefits of artificial intelligence differently. “Behind closed doors, how will we know how artificial intelligence is actually being used? In some circumstances, it will be very difficult to monitor the development of products supported by artificial intelligence.”
Although the new guidelines are non-binding, they have been launched to keep the space safer as the evolution of AI continues to accelerate across the globe.
“ONE OF THE MAJOR CHALLENGES OF REGULATION REGARDING ARTIFICIAL INTELLIGENCE IS OBTAINING AGREEMENT BETWEEN COUNTRIES” Alejandro Mayorkas, US Secretary of Homeland Security, also commented on the significance of the new guidelines: “We are at an inflection point in the development of artificial intelligence, which may well be the most consequential technology of our time.
Dan Morgan, senior government affairs director for Europe and APAC at information security firm SecurityScorecard, explained the importance of the new AI guidelines: “This agreement marks a significant step towards harmonising global efforts to safeguard AI technology from potential misuse and cyber threats. “The emphasis on monitoring AI systems for abuse, protecting data integrity, and vetting software suppliers aligns with our mission to provide comprehensive cyber risk ratings and insights. “While the agreement is nonbinding and primarily carries general recommendations, it represents a collective acknowledgement of the critical role of cybersecurity in the rapidly evolving AI landscape. The focus on integrating security in the design phase of AI systems is particularly noteworthy, as it aligns with our approach of preemptive and comprehensive risk assessment. “As a global leader in cybersecurity ratings, SecurityScorecard recognises the challenges posed by the rise of AI technology, including risks to democratic processes, the potential for fraud, and impacts on employment. We believe that collaborative efforts like this international agreement are essential to address these challenges effectively. “We look forward to seeing how this framework will evolve and how it will influence AI development and cybersecurity practices. SecurityScorecard remains committed to partnering with global stakeholders to advance cybersecurity standards and practices, particularly in the AI domain, to foster a safer digital world for everyone.”
PA Y M E N T S THE FINTECH TIMES
Unlocking financial wellness How employers can help their workers weather uncertain economic times Kevin Coop, CEO of DailyPay
E
ven with inflation cooling, the average American worker is still facing daunting challenges to pay bills and avoid the vicious cycle of debt. According to a report from the Federal Reserve’s Economic Well-Being of US Households in 2022 report, nearly four in 10 (37 per cent) Americans don’t have enough money to cover a $400 emergency expense, an 11 per cent increase from a year prior. An estimated 12 million Americans are forced to resort to using predatory and financially crippling payday loans to pay bills and make ends meet. The sobering fact that the average payday loan user is under the age of 25 and makes less than $40,000 per year should be a wake-up call to employers everywhere. We can’t let the younger subset of the workforce drown in debt. It’s no wonder that according to ADP Research Institute’s People at Work 2023: A Global Workforce View study, feelings of job insecurity are highest
among Gen Z, where half (50 per cent) say they don’t feel secure in their job, double the proportion of those 55+ (24 per cent). A result of these economic challenges is increased financial stress for our workforce. A Bankrate survey in April showed that 52 per cent of US adults said money has a negative impact on their mental health. When employees are stressed they are more likely to call in sick and are less productive, causing an obvious negative impact on the business.
Creating a financial wellness package that truly makes a real impact on people’s lives is no longer an option. It’s a necessity. However, these challenges open up an opportunity for employers to step in and help. In fact, a recent study revealed more than half (51 per cent) of employees believe their employers have a responsibility in improving and maintaining their financial wellness. This means creating a financial wellness package that truly makes a real impact on people’s lives is no longer an option. It’s a necessity.
SO WHERE TO BEGIN?
A great place to start is earned wage access – a financial wellness benefit offered by employers that empowers employees with choice and control over their earned pay. At DailyPay, the recognised leader in earned wage access, we are flipping the financial system by building a financial technology platform that starts working the minute work starts. DailyPay’s mission is to create a new financial system that works for everyone. The company has built a technology platform that empowers users to take control of their finances and no longer rely on financially crippling options such as payday loans and overdraft fees. We partner with America’s leading employers in just about every industry, from restaurants to healthcare to retail, many of which are still operating in a tight labour market. These employers have been able to successfully leverage benefits such as DailyPay to attract and retain talent. In a recent Arizent/Employee Benefits News study, commissioned by DailyPay, 30 per cent of employers say they’ve seen a reduction in employee turnover since implementing DailyPay while 42 per cent of employers say they have seen higher satisfaction/morale since implementing DailyPay. Best of all, the impact on the user is significant. In a study by the Aite Novarica Group commissioned by
DailyPay, nearly nine out of 10 users (88 per cent) had less trouble with bills and loan payments after using DailyPay. By putting money in the hands of the people when they need it and when they earn it, we can break the negative cycle of financial stress that has endured for too long. As we enter a new year, it is time for employers to recognise the golden opportunity to play a significant role in the financial lives of their employees. Through earned wage access they can break the never-ending cycle of debt so many employees face, and change pay for good.
About DailyPay DailyPay is an on-demand pay platform that delivers early access to earned wages and works with all HR/HCM/payroll systems. It works to ensure that money is always in the right place at the right time for employers, merchants and financial institutions. DailyPay is headquartered in New York City, with operations based in Minneapolis and Belfast. Web: www.dailypay.com Linkedin: www.linkedin.com/ company/dailypay-inc
www.thefintechtimes.com
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EVENTS THE FINTECH TIMES
Spotlight on:
FinTech Connect 2023 The fintech community heads to London to mark a decade of innovation and collaboration
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inTech Connect 2023 is celebrating its 10th year, bringing together more than 3,000 thought leaders from across the global fintech ecosystem for a two-day event in London’s Excel. This year’s ecosystem show spans four key verticals: digital experience, payment technology, Web3 and regtech with discussions on the Bank of England’s regulatory framework for stablecoins, the impact of generative AI on operational efficiency in financial institutions, and keynotes from industry giants like Booking.com, shedding light on the latest payment innovations. Fireside chats will also explore the challenges and opportunities within the payments space, particularly in the realm of online travel giants. While attendees can look forward to insights into the role of blockchain in real-world assets, the significance of NFTs in luxury brands, and discussions on central bank digital currencies (CBDCs). Additionally, the convergence of blockchain and AI for Web3 applications will be examined in-depth, offering a glimpse into the future of decentralised technology.
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BENCHMARKING INSIGHTS
Ahead of this year’s event, the third quarter of 2023, FinTech Connect conducted a survey that encompassed 81 fintech leaders representing regions including the UK, Benelux, the Nordics and the rest of Europe. According to the FinTech Connect Industry Benchmarking Report 2023, the fintech landscape is currently dominated by AI, with 86 per cent of those it surveyed investing in AI to enhance their competitiveness. Keeping a strong consumer focus is a top priority for 76 per cent of firms, as they aim to understand the evolving consumer base. Automation is also on the rise, with over 50 er cent of companies already automating recurring tasks. Geopolitical factors are influencing strategy, with 23 per cent citing political uncertainty as a critical factor. The emergence of Web3 services is anticipated, as 55 per cent predict that financial institutions will offer successful Web3 services within two to five years.
However, 67 per cent believe that more regulation is needed for cryptocurrencies to thrive, while 42 per cent see focusing on more pressing business challenges as the main obstacle to blockchain adoption. The relationship between AI and payments remains uncertain for 41 per cent of respondents. Open banking progress is facing hurdles, with 38 per cent identifying the lack of interoperability as the main challenge preventing its full success. Finally, the UK and Ireland are recognised as the epicentre of payments innovation, with 55 per cent of respondents acknowledging the region’s leadership in this area.
WHAT’S ON OFFER AT FINTECH CONNECT 2023
■ The Founders Forum:
“Open banking progress is facing hurdles, with 38 per cent identifying the lack of interoperability as the main challenge preventing its full success”
Industry pioneers and thought leaders share their vision and experiences shaping the future of fintech. Key Speakers include C-suite from TrueLayer, PayFuture, mmob, TechPassport and Exate.
■ Start Up LaunchPad Stage:
Live demos and presentations that showcase the next big things in fintech. ■ FINTECH Circle Investors Pitch Session: Promising fintech startups pitch their ideas to a panel of renowned investors, providing a glimpse into the future of finance. ■ Winners of Harrington Starr 1% Workplace Awards: Fintechs share their strategies on building a one per cent workplace, outlining how they attract, engage and retain world-class talent. ■ Workshop – The Art of FinTech PR: Fintech PR agency SkyParlour shares secrets on crafting compelling stories and making headlines in the fast-paced fintech world.
EVENTS THE FINTECH TIMES
INDUSTRYINSIGHT MORE THAN 200 SPEAKERS REPRESENTING THE LEADING MINDS IN FINTECH WILL PRESENT AT FINTECH CONNECT 2023, INCLUDING...
JEREMY TAKLE, CO-FOUNDER AND CEO OF PENNYWORTH
BHAVNA SARAF, HEAD OF PAYMENTS PRODUCTS & PROPOSITIONS, SANTANDER
After building banks all over the world, Jeremy left a career at Barclays to found Pennyworth, a digital private bank for the aspiring affluent. The firm is on a mission to bridge the financial value and advice gap by bringing financial planning and banking together in one app, using open banking and AI to help people reach their financial goals.
In this newly created role, Seraph ensures that technology innovations translate into practical solutions for customers while delivering value to Santander’s shareholders. Prior to working at Santander, she worked at HSBC, Citi and Lloyds and has incubated and scaled a startup.
THE FINTECH TIMES:
What are you looking forward to at FinTech Connect? JEREMY TAKLE: FinTech Connect offers a great opportunity to hear lots of interesting people talk about what they’re doing and what’s at the forefront of their minds and what they think is happening in the industry. But more interestingly, it’s also the place to see what’s not being focused on and where those white or abandoned spaces are. Within fintech, there’s always a lot of ‘trends’ but these can suddenly move on and it’s almost as interesting to see what’s no longer on the agenda. TFT: What do you think are
the hot topics in fintech? JT: There are two hot topics for the upcoming year: AI, which is transforming various aspects of fintech, and wealth management, an area that still offers untapped opportunities for disruption. Wealth management has been slower to disrupt because it relies heavily on traditional advisors, making it more manual and less
digitised. There’s a significant gap between what people do with their banking and savings apps and what their advisors help them with. This gap presents a massive opportunity for innovation, especially among Gen X and Baby Boomer demographics. TFT: What challenges is the
fintech industry facing in the coming year? JT: One of the challenges in the fintech industry is the limited funding going into core financial services innovation. While there’s excitement around technologies like AI and quantum computing, they often focus on the periphery of finance. The core of finance, where traditional banks, insurers and wealth managers still dominate, remains largely untouched. Regulatory issues and the current funding cycle contribute to this challenge. I think there’s an opportunity for the fintech industry to focus in on research and development, and the reengineering of that core finance.
TFT: What are you looking forward
to at FinTech Connect this year? BS: I’m looking forward to networking with my FI peers and fintechs to compare notes on experiments and commercialisation that is taking place in the industry. Sometimes when you’re sitting in your own silo of a bank, you don’t get a window to see what else is happening in the market, so it’s always really nice to have in-person meetings where you can exchange questions and brainstorm solutions to the challenges we face in the industry. I’m particularly interested in gaining insights into customer problems that emerging technologies can solve. I’m also keen to hear about developments related to central bank digital currencies (CBDCs), especially with the Bank of England at the event, to see how these technologies can be applied to legacy infrastructure. TFT: What are your thoughts
on the future of the fintech industry in the coming year? BS: I believe the fintech industry holds tremendous opportunities in
the coming year. The pace of innovation has been remarkable, with advancements in CBDCs, regulatory compliance, liability networks, stablecoins, open banking, NFTs and Web3. The key challenge is to harness these technologies to solve customer problems effectively. Being an entrepreneur myself and having had the founder journey, I’m all about experimentation as if you don’t experiment you don’t really know where the sweet spots are. But I am also interested in ensuring we put the necessary guardrails around to commercialise and scale any opportunity rather than just doing experiment after experiment. Innovations should address real customer needs and not just be solutions in search of problems. TFT: How do you view the role
of AI in the fintech industry? BS: AI, particularly generative AI, has enormous potential in fintech. However, to fully leverage this technology, we need to integrate it with legacy infrastructure effectively. Generative AI’s true power can be realised when we incorporate computational logic into it. This helps ensure that it can provide solutions with logic rather than just regurgitating information found on the web. While generative AI is promising, the challenge lies in applying it to legacy systems with disparate data sources. Balancing innovation with legacy constraints is crucial for successful integration. But I think it’s good to start getting our hands dirty and use it for some productivity experiments.
www.thefintechtimes.com
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FINTECH PR THE FINTECH TIMES
UNDERSTANDING THE VALUE OF STRATEGIC PR FOR FINTECH BUSINESSES The challenge of establishing a strong, credible presence in the fintech market can be daunting, especially in an environment where startups are constantly vying for attention
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ngela Yore, MD and co-founder at SkyParlour, a specialised communications agency for fintechs, has raised the profile of hundreds of brands from dynamic startups to market leaders in the fintech, tech and ecommerce sectors. Now she sheds light on the multifaceted role of strategic PR in helping fintech businesses shine. Have you ever considered the transformative power of strategic public relations (PR) for your fintech business? I’m not talking about run-of-the-mill PR, but the kind that is tailored, robust, and laser focused. This distinction is crucial. Incorporating a specialised fintech PR agency into your toolkit can be the gamechanger between stakeholders understanding your vision and product or not. It can be the key to securing investments, differentiating yourself from the competition, and shining in the fintech arena. So, what exactly is strategic PR, and what value does it bring to a fintech company?
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GARNERING ATTENTION
We all know the fintech space moves fast. Each day there are new players with innovative products cropping up, and all are shouting for airtime. A specialist PR agency works with fintech firms to tell their story, enabling them to rise above the cacophony and gain the exposure they deserve. When done right, effective PR is about education, not selfpromotion. It’s the art of conveying a business’s brand, product, service, and spokespeople in a way that captivates stakeholders. In this space, that often means translating complex concepts into clear, appealing narratives. 20
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COMPELLING 2CRAFTING VALUE PROPOSITIONS
Fintech businesses can partner with PR agencies to construct clear and compelling value propositions that serve as the foundation for future communications. These propositions are imperative for ensuring that all external messaging conveys a company’s benefits as a throughline. It’s important to focus not just on the product or service features but also on their utility – how they can address potential customers’ problems or enhance their circumstances more effectively than competitors. This approach helps to better stimulate customer acquisition and support internal sales and marketing teams.
“IT’S IMPORTANT TO FOCUS NOT JUST ON THE PRODUCT OR SERVICE FEATURES BUT ALSO ON THEIR UTILITY ” And remember that communications with the target audience should be tailored to their interests. Speak their language. There’s no point in going into the technical minutia if target customers are non-techy folk, for example.
CREDIBILITY 3REINFORCING AND TRUST
A significant aspect of a PR agency’s role is to secure media exposure in relevant publications, websites, and news outlets for their clients. Generating positive media coverage in pertinent platforms can boost brand visibility, attract potential customers, investors, and partners – and, when well-executed, position a fintech company as an industry leader. This strategic communication and media placement also help
establish a business as a reliable and trustworthy player in the market. This trust is critical to any industry, but for fintechs dealing with significant sums of money, it’s integral to their operations.
AN 4ACHIEVING AWARD-WINNING STATUS
Businesses often turn to PR agencies to identify and apply for industry awards, rankings, and recognition programmes, as they provide an impartial outsider’s perspective useful for the application process. Specialised agencies offer an advantage in this regard, given their familiarity with industry trends, terminology, and the unique opportunities and challenges within the sector. Winning or being shortlisted for industry accolades can significantly enhance a company’s reputation and visibility, making it more appealing to potential stakeholders. The ‘awardwinning’ status can also project a company as more trustworthy, promising, and genuinely innovative.
5CRISIS MANAGEMENT SUPPORT
No company is immune to unforeseen events or crises. Despite a fintech company’s best efforts, incidents like data breaches, service interruptions, and regulatory compliance issues can occur and raise public concerns. Strategic PR plays a pivotal role in mitigating reputational risks. PR professionals excel in brand building, and they can craft effective crisis communication strategies to address concerns swiftly, allowing a fintech business to maintain transparency with all stakeholders and dispel negative assumptions following a crisis.
6ATTRACTING INVESTMENT
For growing fintech businesses, attracting investment – from seed
funding through to Series D – is often top of the agenda. Strong PR efforts can help attract investors and facilitate new partnerships within the industry. Media coverage, interviews, and thought leadership articles can all highlight a company’s achievements, growth potential, and unique value proposition to the right stakeholders. Promoting a fintech company’s C-suite through opportunities like speaking engagements at industry conferences, contributing articles to reputable publications, or participating in relevant panel discussions underscores their expertise and enhances the company’s visibility and credibility – working holistically to allure potential investors.
7PARTNERING WITH PURPOSE
Strategic PR empowers fintech companies to shape their public image, allure customers and investors, navigate crises, and establish a formidable presence in the fiercely competitive fintech landscape. Collaborating with a specialised agency brings an in-depth understanding of the sector, industry connections, and market insights that can significantly elevate a fintech’s PR and marketing strategies, positioning them at the forefront of the competition.
About SkyParlour SkyParlour is a full-service communications agency for fintech. Formed in 2009, the company focuses on creating successful brands and influential leaders. Web: www.skyparlour.com
SPOTLIGHT THE FINTECH TIMES
AI AND CRYPTO TRENDS IN BRAZIL AND BEYOND THE FINTECH TIMES: Tell us
more about iVi Technologies LENDEL LUCAS: I’m one of the founders and the CEO of the company. iVi Technologies operates at the intersection of finance and technology. We are a quantitative investment company with proprietary technologies initially developed by one of our founders, a PhD in computer science with expertise in applied mathematics. These technologies have since been continuously enhanced and refined by a diverse, multidisciplinary team spanning technology, artificial intelligence (AI), business, finance, and blockchain. Established with the primary objective of integrating advanced technological solutions into traditional investment practices, the company currently has three quant funds (Brazilian equities, crypto and tech US (Nasdaq)). We also operate a startup company that has developed an app aimed at democratising our quant strategies, which are optimised by AI. These strategies were previously only accessible to qualified and professional investors, but our app is changing that. Initially launched in Brazil, we have a roadmap to expand to Europe and the US. The app provides intelligent investment strategies powered by our technology, handling both the initial allocation and monthly rebalancing, making the entire investment process accessible and user-friendly for everyone. TFT: What crypto and AI
trends are we seeing in Brazil? LL: Currently, Brazil boasts a higher number of crypto investors compared to the traditional market, with this figure continually on the rise. According to Receita Federal – the Brazilian equivalent to the IRS
Lendel Lucas, CEO of iVi Technologies, on the growth of crypto investors, the role of artificial intelligence in investment democratisation and the unique challenges in the region – the number of people investing in cryptocurrencies grew 174 per cent between July 2022 and July 2023. Brazilians also exhibit a keen enthusiasm for embracing new technologies, creating a compelling case for the integration of AI in the realm of investments. With the expectations of the ETF launch, the market is optimistic for 2024 and this news is being interpreted as the gateway for the crypto adoption by the traditional market. Altcoins are expected to rise moderately and Bitcoin’s dominance continues to form new highs for the year. For the next few months, we believe that this movement will continue, with all eyes focused on Bitcoin.
“CONCERNING AI, WHILE BRAZIL MAY NOT LEAD IN DEVELOPMENT, IT REMAINS OPEN TO ITS UTILISATION AND EAGER TO EXPLORE ITS POSSIBILITIES.” TFT: What is iVi Technologies
doing to improve the AI and crypto sectors in Brazil and LatAm? LL: We introduced the sole quantitative fund incorporating AI technology in both the stocks and crypto market in Brazil, establishing ourselves as trailblazers in this industry. Many people want to invest in crypto, but don’t have the ability or the time to constantly keep track of the market in order to know what’s the best portfolio for them.
That’s one of the main reasons why people are afraid to invest – they don’t know where to start. With our algorithms, anyone can venture into this industry with the peace of mind that they are not making a bad deal, even if they have no knowledge or experience in crypto. In a way, we are opening the doors to people who wouldn’t be investing if they didn’t have the help to select their portfolio. TFT: How does the Brazilian AI
and crypto sector compare to that of the rest of the world? LL: Brazil has shown remarkable receptiveness to cryptocurrencies, including favourable legislation. Notably, it became the first country globally to launch a Bitcoin ETF. The trend of crypto adoption continues to gain momentum. Concerning AI, while Brazil may not lead in development, it remains open to its utilisation and eager to explore its possibilities. Unlike countries like Australia and the US, Brazil has few cryptocurrency ATMs. However, we are seeing a slight increase, whereas in 2020 there were none, now we have 25. Last year, a law with guidelines for regulating the provision of crypto in Brazil was passed, giving an extra security and level of reliability to the sector. TFT: What unique challenges
are there in Brazil? LL: In both the AI and crypto space, the unique challenges faced by Brazil are rooted in the novelty of these technologies.
Despite the growing enthusiasm for cryptocurrencies and AI tools, significant adoption barriers exist. To overcome these challenges, active efforts must be made to disseminate knowledge and information. This includes educating the public about the benefits and potential risks associated with AI and crypto. It also involves addressing concerns related to security and privacy and fostering a supportive regulatory environment. By enhancing awareness and understanding, regions and countries can create an environment where individuals are not only well-informed but also more willing to embrace these transformative technologies. Thus, unleashing their full potential for economic growth and innovation. TFT: What are your
plans for the future? LL: Our future plans are centred around an ambitious roadmap and growth strategy. We are set to introduce a new product, harnessing the power of our AI quant technology, not only in Brazil but also in the US and Europe. This expansion will encompass both the crypto and traditional investment sectors, offering a broader range of opportunities for investors. For QINV, the next two years hold exciting prospects, as we aim to strengthen our partnerships with the world’s largest exchanges. Our ultimate goal is to become the leading investment app of its kind on a global scale, further solidifying our presence and reputation in the financial technology sector. This strategic vision reflects our commitment to innovation, excellence, and making advanced investment strategies accessible to a wider audience. www.thefintechtimes.com
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BOOK REVIEW THE FINTECH TIMES
Uncovering ‘Why DeFi matters’
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ecentralised finance or DeFi is not new in the fintech world. While it has been around for years its growth surged during the pandemic when cryptocurrency was all anyone talked about. Although the crypto hype has died down somewhat, the adoption of DeFi continues to expand. According to research from Nansen, the blockchain data researcher, despite turbulent market conditions, the number of DeFi users has increased since 2022 from 4.7 million to more than 6.5 million. The number of unique DeFi users has also increased by nearly 700 per cent over a two-year period, with just 940,000 users at the start of 2021. It’s evident that DeFi is growing despite the ‘crypto slump’, which raises the question of why there are so many unique users and why this technology is significant. That might seem like a blunt question but that’s what Ian Horne’s book Why DeFi Matters sets out to answer. The book delves into what cryptoassets, Web3 and the metaverse really mean for finance. After all, with a historical lack of regulation in the sector, some of those who have been in the industry for a long time could call the legitimacy of DeFi into question. I would argue those who feel that way should read this book. Why DeFi Matters does a great job of creating different entry points. What I mean by this is that a complete novice in the world of crypto or a seasoned vet could pick up the book and both could start at different places and understand what is going on. You have an option of starting from the beginning, to understand the inception of Bitcoin in relation to the financial crash in 2008 and how that evolved into the world of crypto we now know today. It doesn’t harp on about history too long but gives just enough insights that you feel ready for the next chapter, feeling prepared for how it links to the next stage. Arguably my favourite part of the book comes in chapter three. While the content in the later chapters may answer the question Why DeFi Matters, chapter three is a list of 22
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By Francis Bignell, journalist and LatAm lead at The Fintech Times keywords and descriptions that can be found in relation to DeFi. As Horne explains, there are a variety of words that are crucial to understanding the importance of the sector that did not quite fit in the build up of DeFi’s existence. As such, chapter three ensures everyone is on the same page (literally!). Those who aren’t in the space can learn about new terms ranging from things like proof-ofstake, to forking (I’ll admit I didn’t know what the latter meant). The way the chapter is written is by a brief ‘what is the term’ followed by a more
WHY DEFI MATTERS: WHAT CRYPTOASSETS, WEB3 AND THE METAVERSE REALLY MEAN FOR FINANCE by Ian Horne
Available: Kindle, Hardback & Paperback
indepth ‘why it is important’ section, making the content easily digestible. With all the potential jargon that may appear later cleared up, the book proceeds to follow up on what DeFi protocols do and how they relate to crypto, decentralised autonomous organisations (DAOs) and more. What I appreciate about the subsequent chapters is the distinction from cryptocurrencies. Due to cryptocurrencies’ decentralised nature, it can be quite easy to make the mistake that DeFi is a synonym for
crypto. While the book clarifies this early on, its layout cements this idea. The topics of NFTs and the metaverse follow. Perhaps it’s just me, but due to the NFT hype dying down, it feels like we can easily forget about what NFTs are truly capable of. The way this discussion then transitions into the metaverse is genuinely exciting, as it ignites enthusiasm about the future and the possibilities that exist in the financial world. Maybe this is why DeFi matters; it sets the stage for the future of finance. This notion becomes even clearer when you consider TradFi and how centralised organisations can leverage the technology. Not to mention central bank digital currencies (CBDCs) – the book covers both of these topics too. Ultimately, I thoroughly enjoyed the book. It feels like it leaves no stone unturned, at least as of 2023, when it comes to discussing DeFi and its applications. As mentioned earlier, what Horne does extremely well is make the book accessible. Each chapter takes a different approach, and none relies too heavily on what was said before. That means if you’re interested in a certain topic, such as NFTs, you can go directly to that chapter and understand how it fits into the larger picture of DeFi. Nonetheless, there is a nice chronological feel to the layout of the book, and I don’t think you could get better chapter progression. You might often find it easy to discard box-outs in a book. If the first few don’t grab your attention, you may end up ignoring the majority. But this is not the case in Why DeFi Matters. In fact, I found them to be a fantastic addition. The book concludes by saying “technology won’t fix our problems, but DAOs and DeFi may in time offer better platforms for incentivising activity that helps encapsulate the ambitions, skills and creativity of people from all walks of life”. That sentiment is incredibly important, not only in DeFi but in fintech as a whole. The idea that tech can only act as a gateway to the solution of our problems rather than the solution itself, is the perfect ending.
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BOOKS TO GET AHEAD IN FINTECH
The Great Transition: The Personalization of Finance is Here by Emmanuel Daniel Available: Kindle, Hardback and Paperback
Bankers Like Us: Dispatches from an Industry in Transition by Leda Glyptis Available: Kindle and Hardback
Redecentralisation: Building the Digital Financial Ecosystem by Ruth Wandhöfer and Hazem Danny Nakib Available: Kindle and Hardback
The Metaverse Economy: How Finance Professionals Can Make Sense of Web3 by Arunkumar Krishnakumar & Theodora Lau Available: Kindle, Hardback and Paperback
Unsupervised: Navigating and Influencing a World Controlled by Powerful New Technologies by Daniel Doll-Steinberg and Stuart Leaf Available: Kindle and Hardback
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