FinTech Automation’s Post

Deep Dive: The Great Bank Unbundling Fintech’s evolution can be divided into three key phases: 🔹 Act 1: Digitization This phase involved the transformation of traditional banking into digital platforms. The focus was on making banking services available online and through mobile devices, laying the groundwork for further innovations in the financial industry. 🔹 Act 2: Disintermediation The next phase saw a shift towards decentralizing financial services, with apps and platforms providing banking functions independent of traditional banks. This period marked the rise of peer-to-peer lending, digital wallets, and robo-advisors, which reduced the reliance on conventional financial institutions. 🔹 Act 3: Embedded Infrastructure The current phase focuses on integrating financial services directly into non-fintech products through Banking-as-a-Service (BaaS). This has allowed companies across various sectors, like Toast and Shopify, to embed financial services into their offerings, creating new revenue streams. For example, Toast generated 83% of its 2021 revenue from financial services. ✅ The Rise of Embedded Finance Embedded finance involves integrating financial services into software platforms, representing a significant revenue opportunity for technology companies. Financial infrastructure companies enable these capabilities, allowing non-fintech businesses to offer services like payments and lending. ✅ Challenges for Community Banks Community banks, traditionally reliant on physical branches, have struggled in the digital era. The 2010 Durbin Amendment, part of the Dodd-Frank Act, provided these banks with a competitive edge by exempting them from interchange fee caps. This led to partnerships with software companies as a way to distribute financial products efficiently, despite the high costs and complexity of building the necessary infrastructure. ✅ Banking-as-a-Service (BaaS) Emergence BaaS has simplified the process of embedding financial services by providing the technological backbone that non-bank companies need. Instead of building their own banking infrastructure, these companies can partner with BaaS providers, facilitating faster and more cost-effective integrations. BaaS models include: 1. Traditional Community Banks: Smaller banks engaging in BaaS without a tech-first approach. 2. Middleware Providers: Companies that act as intermediaries between banks and non-bank companies, managing compliance. 3. Bank Marketplaces: Platforms facilitating direct partnerships between multiple banks and non-bank companies. 4. BaaS-First Banks: Tech-native banks prioritizing BaaS as their core strategy. 👉 Subscribe for more insights https://lnkd.in/d94JgWBU Source Contrary Research #fintech #payments #business Thomas Leda Timothy Alex Ali Carlos

A unified experience, operational efficiency, and real-time processing are just some of the advantages that a payments hub offers. Read the blog for more on this transformative solution. #fintech #payments #paymentshub

Wirex Chooses OpenPayd to Launch Embedded Accounts Across UK and EEA “At Wirex, we strive to bridge the gap between the traditional and digital economies, so it’s vital that our customers can easily make and receive payments via SEPA Instant and Faster Payments. OpenPayd’s tech stack is not only state of the art and easy to integrate, it’s also proven at scale – processing millions of transactions monthly,” said Pavel Matveev, CEO and Co-Founder of Wirex. “Named IBANs offer our customers an improved user experience and an even more personalised service. They also enable our teams to completely automate back office account reconciliation. OpenPayd is the perfect partner to facilitate the instant, accessible and secure payments our customers need.” https://lnkd.in/eebhJgZi #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Finli Joins the NayaOne Tech Marketplace “We’re thrilled to welcome Finli to the NayaOne Technology Marketplace. Megabanks and neobanks have raised the bar in the financial services sector. Therefore, customers’ increasing demand for modern, efficient, and personalised services is pushing traditional institutions to adapt and integrate advanced technologies rapidly.” Varun Resh Maddali Marketplace Manager, NayaOne https://lnkd.in/eQHETBj9 Lori S. #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Deep Dive: The Great Bank Unbundling Fintech’s evolution can be divided into three key phases: 🔹 Act 1: Digitization This phase involved the transformation of traditional banking into digital platforms. The focus was on making banking services available online and through mobile devices, laying the groundwork for further innovations in the financial industry. 🔹 Act 2: Disintermediation The next phase saw a shift towards decentralizing financial services, with apps and platforms providing banking functions independent of traditional banks. This period marked the rise of peer-to-peer lending, digital wallets, and robo-advisors, which reduced the reliance on conventional financial institutions. 🔹 Act 3: Embedded Infrastructure The current phase focuses on integrating financial services directly into non-fintech products through Banking-as-a-Service (BaaS). This has allowed companies across various sectors, like Toast and Shopify, to embed financial services into their offerings, creating new revenue streams. For example, Toast generated 83% of its 2021 revenue from financial services. ✅ The Rise of Embedded Finance Embedded finance involves integrating financial services into software platforms, representing a significant revenue opportunity for technology companies. Financial infrastructure companies enable these capabilities, allowing non-fintech businesses to offer services like payments and lending. ✅ Challenges for Community Banks Community banks, traditionally reliant on physical branches, have struggled in the digital era. The 2010 Durbin Amendment, part of the Dodd-Frank Act, provided these banks with a competitive edge by exempting them from interchange fee caps. This led to partnerships with software companies as a way to distribute financial products efficiently, despite the high costs and complexity of building the necessary infrastructure. ✅ Banking-as-a-Service (BaaS) Emergence BaaS has simplified the process of embedding financial services by providing the technological backbone that non-bank companies need. Instead of building their own banking infrastructure, these companies can partner with BaaS providers, facilitating faster and more cost-effective integrations. BaaS models include: 1. Traditional Community Banks: Smaller banks engaging in BaaS without a tech-first approach. 2. Middleware Providers: Companies that act as intermediaries between banks and non-bank companies, managing compliance. 3. Bank Marketplaces: Platforms facilitating direct partnerships between multiple banks and non-bank companies. 4. BaaS-First Banks: Tech-native banks prioritizing BaaS as their core strategy. 👉 Subscribe for more insights https://lnkd.in/d94JgWBU Source Contrary Research #fintech #embeddedfinance #banking Brice Ali Alex Michele Nafis Monica Lex Theodora Saleh

Instant Payments: Driving the Second Revolution in Digital Finance The shift to instant payments is not just an upgrade but a complete transformation in how we think about digital finance. Here are 5 key takeaways from the 2024 Instant Payments Report: 1. Market Growth: Instant payments are projected to grow tenfold by 2030, with an increasing number of countries adopting cross-border instant payment systems. 2. Regulatory Push: Europe’s SCT-Inst regulation and the adoption of ISO 20022 are setting new global standards for secure, frictionless payments. 3. Impact on Banks: Banks must overhaul their infrastructure to handle higher transaction volumes, real-time fraud detection, and faster compliance processes. 4. Business Opportunities: Instant payments offer new product opportunities like Request to Pay (R2P) and Confirmation of Payee (CoP), opening doors for service innovation. 5. Customer Expectations: Speed and convenience are becoming the norm, with over 70% of consumers expecting immediate payment processing. Impact on Key Stakeholders: • Banks: They must evolve quickly or risk losing market share to neobanks and fintechs. • Businesses: Instant payments enhance liquidity management, reduce transaction fees, and enable faster cross-border transactions. • Customers: A frictionless, secure, and convenient payment experience will drive higher satisfaction and trust. What are your thoughts on how instant payments will reshape financial services? Share your views in the comments below! 💬 #InstantPayments #DigitalTransformation #Fintech #BankingRevolution #ISO20022 #FutureOfPayments #CrossBorderPayments #BusinessGrowth

🌐🚀Accelerating #FinancialInclusion with #FasterPayments 🌎 Across the globe, Faster Payments are gaining traction, revolutionizing the way we transact. However, their adoption remains uneven, varying significantly across different countries. 🔍 From the BIS insightful analysis reveals that Faster Payments go beyond mere transaction speed. They can unlock a broader realm of financial services, including enhanced access to credit and other essential tools! 🌟 We and our Allies are passionate about advancing Faster Payments. We believe they can and will be a powerful catalyst for financial inclusion, bridging gaps, and empowering individuals and businesses alike🚀 🔗 Read more out the main design features of faster payments that may foster adoption here: https://lnkd.in/evENQVqf #FedNow #RTP #DiscoverDeliver #VisaDirect #MastercardSend Vments INC OurBanc Corporation

In 2017, over 1.7 billion adults remained unbanked. Despite the rise of digital banking, one in four people still lack access to traditional banking services and BaaS is here to bridge this gap.   Nicky Senyard sat down with Fintech Nexus to discuss how Banking as a Service and fintech partnerships can take financial inclusions to the next level. Here's what you need to know: 🚀 Driving Accessibility: BaaS enables user-friendly mobile apps and embeds financial services into non-traditional platforms. With scalability at its core, BaaS is breaking barriers worldwide. 💼 Real-world Impact: From serving freelancers to extending credit to those with no formal history, BaaS initiatives are changing lives. And the market is booming, set to reach $1.486 trillion by 2028. 🛠️ Overcoming Challenges: While growth is promising, regulatory compliance remains vital. Increased scrutiny demands careful alignment with regulations and values. Check out the full story here: https://lnkd.in/e4Xa2fRA Looking to pave the way to a more inclusive future? Reach out to our team today. #FintelConnect #BaaS #FintechPartnerships #FintechNexus 

Fintech Insights: Harnessing the Potential of Instant Payment Infrastructure 💳💸💲 We are pleased to announce the release of our latest white paper, " From vision to reality: planning your new instant payment infrastructure." 📝 The rapid adoption of instant payments is making open finance a reality. More than 60 countries have launched real-time payments infrastructures, with more on the horizon.🌐 This comprehensive guide delves into the essential considerations and best practices for implementing a robust instant payment infrastructure. Catering to financial institutions, business, fintech firms, and payment service providers, the white paper offers valuable insights to navigate the intricacies of instant payments and achieve seamless projects implementation. 🔍 It encompasses crucial strategies, real-world case studies, and expert analysis to empower organizations seeking to embrace the future of instant payments. We invite you to download the white paper and take the first step towards unlocking the full potential of instant payments in the evolving payments landscape. 💱💶💵 Get your hands on the white paper for free by visiting spr.ly/61105lTIe5. It's packed with valuable insights you won't want to miss 💡 #payments #openfinance #RTP #realtimepayments

Fintech has transformed various financial services, such as payments, lending and wealth management, challenging traditional banking models. Behind this disruption are improved system connectivity, computing power and reduced computing data costs. According to a 2021 report by the Bank for International Settlements (BIS), these technological improvements have removed friction and enabled new business models to emerge. With the entry of new niche fintech players, new types of services have been introduced and financial products have been transformed. Words by Nivetha Dayanand with inputs from S. Alex Yang | Sara Hoteit | Johnny Kollin | Charbel Khneisser | Gary Paterson Follow the link for more details: https://lnkd.in/gZP-cCYJ #finance #financemiddleeast #fintech