BANKING 4.0 | NOCASH EVENTS

Taurus launches private token standard for banks Swiss blockchain startup Taurus has released what it describes as an open-source token standard for debt and equity transactions in a move designed to boost the digital assets market. Taurus SA, a global leader in digital asset infrastructure, announced the publication of an open-source confidential token standard for debt and equity tokenization in collaboration with the Aztec Foundation. „This initiative marks a significant step forward in enabling financial institutions to issue tokenized versions of financial instruments on public blockchains while maintaining strong privacy expectations of their customers.” – the company said.   The smart contract is designed to give asset issuers powerful and explicit control over who can see what information about assets issued on public blockchains, without sacrificing compliance. Taurus Chief Security Officer Jean-Philippe (JP) Aumasson, who led this initiative, remarked: “Tokenizing financial instruments on public blockchains unlocks immense potential. By enabling private, compliant transfers, we bridge the gap between institutional needs and decentralized technologies. This project underscores Taurus’ dedication to secure, innovative, and open solutions for digital finance.” Aztec Foundation, Executive Director and board member, Arnaud Schenk also highlighted the importance of this collaboration: “Privacy is foundational for financial institutions to adopt blockchain technology at scale. A fully private CMTAT standard as implemented by Taurus represents an important milestone for the industry and demonstrates how on-chain programs can meet both institutional and regulatory requirements. 

Open banking, significant milestone: 17 out of the 30 EEA countries now having over 150 authorised TPPs, more than doubling from just a year ago. This expansion highlights the rapid growth and increasing presence of fintech providers across the region. During 2024, the open banking ecosystem continued to transform across the European Economic Area (EEA) and the United Kingdom (UK). The total number of registered Third Party Providers (TPPs) now stands at 568, with 372 in the EEA and 196 in the UK, according to Konsentus Q4 2024 – TPP Open Banking Tracker. Regulatory permission changes remain a key market indicator. In Q4, 20 TPPs underwent permission changes across the EEA and UK combined, with 9 TPPs gaining new open banking regulatory permissions and 11 TPPs either becoming unauthorised or having their open banking permissions removed. A higher number of TPP removals in the EEA compared to new registrations may indicate a maturing market and emerging consolidation trends. These shifts emphasise the growing importance of thorough due diligence as the open banking landscape continues to evolve. Germany joins Italy in having the highest number of passported-in TPPs (164), following the approval of two additional TPPs to provide open banking services in the country. Latvia and Liechtenstein once again remain the only two EEA countries without home-regulated TPPs. After a surge in the previous quarter, passporting activity remained steady, indicating a period of market consolidation and stability. As a result, all EEA countries now have at least 108 non-domestic TPPs approved to provide open banking services. Mike Woods – CEO Konsentus says: „As open banking adoption deepens, we continue to see significant shifts in how TPPs operate across the EEA. With 66% of EEA-regulated TPPs now able to initiate payments on behalf of account holders, the need for vigilant oversight remains critical to managing associated risks.„ „At the same time, cross-border expansion remains a key driver of ecosystem growth. More than half of EEA TPPs now passport their open banking services beyond their domestic market. This increases the likelihood that a third-party fintech requesting account access will be regulated in a different market from where the transaction occurs.„ „Notably, while the number of home TPPs has remained static over the past year, all growth has come from passported TPPs – rising by more than 16% from 134 to 156. This reflects a strategic push by TPPs to scale their businesses internationally, reinforcing the importance of robust, real-time regulatory monitoring to ensure trust and compliance in an evolving financial landscape."

A new study from Juniper Research has found that the number of Open Banking API calls globally will increase 427%, from 137 billion in 2025 to surpass 720 billion globally by 2029. . The report predicts that artificial intelligence (AI) will become increasingly integrated with open banking offerings; creating personalised banking solutions for users for finance management and customisable loan allowances, driving the growth of API call volume. Juniper Research found that API vendors are increasingly utilising AI for open banking offerings, with generative AI (GenAI) unlocking personalisation at scale. As API quality requirements have increased, across Europe in particular, personalising services through GenAI will prove to be a highly effective strategy for vendors. Research Author Matthew Purnell remarked: “API quality is more than mitigating call failures but also enabling services. Personalised products are a necessity for Open Banking, with AI ideal for the automation of solutions for users. Consequently, vendors must invest in GenAI solutions to not only enhance banking offerings, but to streamline businesses’ workloads.” The report found that 2024 was a significant year for open banking regulatory developments, with the Open Finance African Group Framework launching in key African markets, and Saudi Arabia proceeding with phase 2 of its Open Banking Framework. Accordingly, the research identified Middle East & Africa as a key developing market, with high-growth potential as digital banking improves and regulatory ecosystems develop.

Microsoft unveils Majorana 1 – the world’s first quantum computing chip powered by a new Topological Core architecture that it expects will realize quantum computers capable of solving meaningful, industrial-scale problems in years, not decades. The new architecture used to develop the Majorana 1 processor offers a clear path to fit a million qubits on a single chip that can fit in the palm of one’s hand. „All the world’s current computers operating together can’t do what a one-million-qubit quantum computer will be able to do” – Microsoft said. In the same way that the invention of semiconductors made today’s smartphones, computers and electronics possible, topoconductors and the new type of chip they enable offer a path to developing quantum systems that can scale to a million qubits and are capable of tackling the most complex industrial and societal problems, Microsoft said. “We took a step back and said ‘OK, let’s invent the transistor for the quantum age. What properties does it need to have?’” said Chetan Nayak, Microsoft technical fellow. “And that’s really how we got here – it’s the particular combination, the quality and the important details in our new materials stack that have enabled a new kind of qubit and ultimately our entire architecture.” What said Satya Nadella, CEO of Microsoft „Most of us grew up learning there are three main types of matter that matter: solid, liquid, and gas. Today, that changed. After a nearly 20 year pursuit, we’ve created an entirely new state of matter, unlocked by a new class of materials, topoconductors, that enable a fundamental leap in computing. It powers Majorana 1, the first quantum processing unit built on a topological core. We believe this breakthrough will allow us to create a truly meaningful quantum computer not in decades, as some have predicted, but in years. The qubits created with topoconductors are faster, more reliable, and smaller. They are 1/100th of a millimeter, meaning we now have a clear path to a million-qubit processor. Imagine a chip that can fit in the palm of your hand yet is capable of solving problems that even all the computers on Earth today combined could not! It’s not about hyping tech; it’s about building technology that truly serves the world."

Global fintech investment falls to seven-year low of $95.6 billion in 2024. Payments continues to attract largest fintech tickets. 2024 was another difficult year for fintech, with just $95.6 billion of investment globally across 4,639 deals. Both global fintech investment and the number of deals fell to levels not seen since 2017, according to the Pulse of Fintech H2’24—a bi-annual report published by KPMG highlighting fintech investment trends globally and in key jurisdictions around the world. 2024 Key Highlights Global fintech investment fell from $119.8 billion across 5,382 deals in 2023 to $95.6 billion across 4,639 deals in 2024. The Americas attracted $63.8 billion in fintech investment across 2,267 deals in 2024, of which the US accounted for $50.7 billion across 1,836 deals; the EMEA region attracted $20.3 billion across 1,4645 deals, while the ASPAC region attracted $11.2 billion across 896 deals. Global M&A deal value fell from $60.2 billion to $49.6 billion between 2023 and 2024; while H2’24 was softer than H1’24, M&A deal value rose from $7.4 billion to $14.2 billion between Q3’24 and Q4’24. PE investment declined significantly, falling from $10.5 billion in 2023 to just $2.6 billion in 2024, while VC investment saw a modest drop from $49.2 billion in 2023 to $43.4 billion in 2024. Payments was the strongest area of fintech investment globally in 2024, with $31 billion in investment compared to just $17.2 billion in 2023; other sectors that saw investment rise year-over-year included digital assets and currencies —from $8.7 billion to $9.1 billion, regtech—from $4.4 billion to $7.4 billion, proptech—from $1.9 billion to $3 billion, and wealthtech—from $190 million to $400 million. Corporate VC-participating investment globally fell from $26 .9 billion in 2023 to $19.6 billion in 2024; only the EMEA region saw corporate investment in VC deals rise—from $5.1 billion to $5.8 billion year-over-year. The Americas saw CVC drop from $13.8 billion to $9.9 billion, while ASPAC saw CVC investment drop from $8.0 billion to $3.9 billion. "Many critical elections are behind us and investment and deal activity is beginning to pick up. We are starting to see more deals coming through because of interest rate cuts in different jurisdictions and the lower cost of funding. However, we will have to wait and see if the changing world trading conditions impact inflation, interest rates and consequently these positive signs of market change.” – said Karim Haji – Global Head of Financial Services, KPMG International. "Over the next year, AI-focused regtechs will likely see the most traction among investors as financial services companies look for better ways to respond to the increasingly complex regulatory environment."- said Anton Ruddenklau – Lead of Global Innovation and Fintech, Financial Services, KPMG International.

For the first time in Spain, BBVA will offer AI-powered account and card management with its virtual assistant BBVA has updated its personal virtual assistant Blue, integrated in its app, making it more personalized. Blue now has enhanced abilities to interact with customers using natural language, provide tailored information on their finances, and perform some of the most common account and card transactions. In parallel, BBVA created a co-pilot to facilitate the daily work of branch employees. „With these initiatives, BBVA is moving forward with its strategy to put artificial intelligence (AI) at the disposal of its customers, and mark the beginning of a new stage in digital banking management. The roll-out of the new assistant Blue, with the AI Factory team participating in the technical aspects, will take place on February 20th in Spain and gradually reach all of the bank’s customers.” – according to the press release. The new Blue kicks off with up to 150 queries and transactions available for customers, which translates into answering over 3,000 questions. Based on generative artificial intelligence, the tool aims to humanize BBVA’s digital channels, with much friendlier interactions, while greatly enhancing efficiency when answering customer questions, with more empathetic responses. Another unique feature is its ability to manage digressions in a conversation. „If a user begins a query and needs something else in the middle of the interaction, Blue can adapt to this change without losing track of the conversation. At any point, the customer has the option to cancel the ongoing transaction or request assistance from a human agent.” – the bank explained. Another key aspect of the design is that Blue works solely in the banking domain. Unlike other virtual assistants that can address a variety of topics, this assistant focuses exclusively on the customer’s information and transactions related to BBVA. To ensure its proper functioning, validations and guardrails were put in place that guarantee that all responses are aligned with the bank’s commercial, reputational and legal requirements. BBVA has also added a new AI-based assistant to facilitate the work of its agents, while offering customers better service. The assistant is based on more than 30,000 references, which encompass an entire catalog of BBVA products and services that are updated on a daily basis. This new system is currently available to more than 100 agents, and serves as an essential tool to answer questions and requests for information, while providing agents quick and easy access to updated information on the entire BBVA ecosystem. #AIinBanking, #digitaltransformation

A survey of 34 central banks around the world showed 15% are now less inclined to issue a CBDC, up from 0% in 2022 A new report by OMFIF’s Digital Monetary Institute, produced in partnership with Giesecke+Devrient, reveals how central banks’ opinions on issuing a retail CBDC are evolving. The majority - 75% - still plan to issue a CBDC, with over half allocating more internal resources. The proportion of respondents expecting to issue a CBDC in the next three to five years has grown to 34% from 26% in 2023. Yet, there is some cooling on the issue, with 15% of respondents saying they are now less inclined to issue a CBDC, up from zero per cent in 2022. Meanwhile, 31% have delayed their issuance timeline, citing legislation and a desire to explore a wider range of solutions. This year, the report delves deeper into the rationale underpinning the issuance of CBDCs. It finds that motivations for issuance are split between emerging and developed markets: 44% of emerging market respondents chose promoting financial inclusion as their primary motivation, while 50% of developed markets chose preserving central bank monetary sovereignty. Offline payments are a particularly important consideration for financial inclusion since they help to make a CBDC accessible in remote areas without or with only intermittent access to internet connectivity. Perhaps the most striking element of good news from the survey is that technical challenges are no longer a serious obstacle for the vast majority of central banks. This year’s survey indicates that central banks are vastly more satisfied with their progress on almost every key technical issue than they were last year. The exception to the general improvement is on user experience, where a much higher proportion than in previous years rated this as the most challenging feature of a CBDC to design. "It’s time to make the decisive step to create a public digital payment ecosystem with CBDC," said Wolfram Seidemann – chief executive officer of G+D Currency Technology. "CBDCs hold significant potential for advancing the digital economy. By offering a public infrastructure, central banks can pave the way for innovative financial products and services, while reducing fragmentation in the financial system."

European Commission abandoned Financial Data Access (FIDA) plan after lobby push Commission will abandon plans to introduce rules requiring financial institutions to share information with customers and competitors after strong criticism from industry. According to a document obtained by POLITICO Europe, the Financial Data Access, or FiDA, regulation will be withdrawn within six months as it is “not aligned with Commission’s current objectives” and would introduce a “significant burden and complexity for financial actors” which goes against the EU executive’s goal to simplify rules. The Commission first proposed the FiDA regulation in June 2023 with the aim of giving individuals more power over their financial data. Under it, financial institutions like banks, money managers and insurers would have had to open up the data vaults that hold their clients’ information. EU capitals reached an agreement on the Commission’s draft law in December, paving the way for discussions with EU lawmakers to make the proposals a reality. They said the „better data sharing” rules would enable financial players to target consumers with „highly personalised financial products and services.” But financial lobbyists heavily criticized the proposed rules. In December, six industry associations, representing banks, insurers and asset managers, argued the Commission hadn’t adequately calculated the cost of the proposed rules and that customer and market demand for such data-driven services had not been proven. The group said various key concerns „repeatedly raised” remained „largely unaddressed.”

Neobanks emerged as agile alternatives to traditional banks, but they, too, are vulnerable to disruption. What could #replace them? Perhaps a combination of self-custody finance, DeFi, and decentralized digital identity? Or will they be overtaken by super-apps that seamlessly integrate payments, lending, and investments? Do we really need neobanks? It depends on how we define “banking.” If the future is about complete financial autonomy, they might just be a stepping stone toward a more decentralized model. But if we still value convenience and integrated services, they remain essential. What do you think? Will they adapt or become the next to fade away? 🤔 #fintech #banking #DeFi #futureofmoney

Throwback to Banking 4.0, 2024! 💳 One of the best panels on payment trends—smartly moderated by Daniel Nicolescu with powerful, insightful panelists, like Ernest Püspök, Catalin Cretu, Augustin Dobre, Dariusz Mazurkiewicz, and last but not least Balázs Polonkai . Their energy and expertise made it an unforgettable session. Excited to have them back this year in #Sinaia, with fresh updates and trends for 2026. Because in payments, just like in computing, things evolve every few months. #Banking40 #Payments #Fintech #Sinaia2025 #Innovation #Trends2026