Javier Guevara Torres’ Post

🌟 Unlock the Future of Digital Banking with C-Innovation's upcoming report! 🌟 I am thrilled to introduce the soon-to-be-released C-Innovation USA Regional Report, offering a comprehensive view of the trends and innovations of digital banking players in the USA. Secure your copy with our exclusive early bird discount! https://lnkd.in/eJhzV5xd (Corporate Members will access as usual the document via the client area) 🌐 A Market Characterized by Banking Partnerships 🌐 The digital banking landscape in the USA is unique, distinguished by its significant reliance on partnerships with traditional banks. This dynamic ecosystem comprises a mix of fully licensed fintechs, corporate-backed digital brands, and firms that collaborate with licensed banks to navigate the regulatory complexities and deliver innovative financial services. Key Insights: 🔹 High Presence of Partnerships: Neobanks in the USA leverage partnerships with traditional banks to streamline operations and expand their market presence effectively. 🔹Challenges in Obtaining Bank Charters: The regulatory landscape has prompted several companies, including Robinhood, Brex, Monzo Bank, bunq, and Rakuten, to withdraw their bank charter applications, while others to expedite the process and avoid the complexities of obtaining a charter, have opted for the acquisition route. Revolut, after engaging with regulators, has also decided to hold off on its application. 🔹N26 exited the USA in 2022. The company struggled with elevated customer acquisition costs and brand recognition challenges, largely due to an insufficient value proposition and a lack of a comprehensive marketing strategy, which required a significantly larger budget than previously anticipated. 🔹 Foreign Players Eyeing the USA Market: Despite the competitive landscape, international players are keen to enter and capture a share of the US market. Companies like Klarna and OakNorth have found success, while others like bunq and Openbank are adopting targeted strategies to navigate challenges and capitalize on opportunities. Monzo Bank, determined to seize new opportunities, has raised $610 million in its recent funding round, increasing its valuation to $5.2 billion. In FY2024, Monzo USA generated £715k in revenue despite incurring a loss of £9 million, signaling significant growth potential. 📊 For a comprehensive view of these trends and innovations, don't miss out on the C-Innovation USA Regional Report. This report provides in-depth analysis and strategic insights into the digital banking players in the USA. 🎁 Early Bird Discount Available! Secure your copy now and stay ahead with the latest trends in the digital banking sector. 👉 https://lnkd.in/eJhzV5xd #DigitalBanking #Fintech #BankingInnovation #CInnovation #Neobanks #FinancialServices #BankingPartnerships #USA #bankingindustry #businessmodels #banking #openbanking #Banken #revolut

10x Banking Inks Strategic Alliance Agreement with Deloitte U.K.-based core banking platform 10x Banking announced a strategic alliance agreement with Deloitte. As part of the agreement, 10x will build a series of Centres of Excellence in the U.S., U.K., and India to facilitate collaboration between the two firms. 10x Banking won Best of Show in its Finovate debut at FinovateEurope 2023. SaaS core banking platform 10x Banking has inked a strategic alliance agreement with Deloitte. Effective in both the U.S. and the U.K., the agreement will power greater cooperation when it comes to helping financial institutions around the world access transformative technologies. As part of the strategic alliance, the two firms will launch a series of 10x Centres of Excellence in the U.S., the U.K., and India. The centers will facilitate collaboration between 10x Banking and Deloitte, and should be fully-staffed with their initial 100-member teams by the end of the year. Courtesy of the alliance, the 10x platform will also be fully integrated into BankingSuite from Converge by Deloitte. BankingSuite is a modern composable platform that enables banks to build new digital capabilities at pace. Introduced in 2022, Converge combines Deloitte’s software, industry expertise, and partner ecosystem to help Deloitte’s clients maximize the opportunities of digital transformation and emergent technologies. This collaboration, between 10x and Converge, will focus initially on serving credit unions, building societies, and mutual banks to help them fulfill their digital transformation goals faster and with less cost. “By working with Deloitte, we will enable banks and mutuals across the U.S., U.K., and beyond to modernise their legacy tech and deliver financial products and services fit for the 21st century,” 10x Banking Founder, Chair, and CEO Antony Jenkins said. “With Deloitte’s global experience and our leading technological solutions, we have a strategy in place to enact widespread change in the pursuit of making banking ten times better.” Founded in 2016 and headquartered in London, U.K., 10x Banking made its Finovate debut at FinovateEurope 2023. The company won Best of Show for its demo of its 10x Bank Manager, which offers a no-code interface to enable product teams to “build products, offerings, brands, and even enter new markets at speed,” as Product Marketing Manager Nicole Sanders explained at the conference. “Code less. Innovate more.” 10x Banking began 2024 partnering with mortgage origination platform Mast. The partnership will enable real-time connectivity between the two platforms, giving lenders streamlined data exchange and real-time mortgage servicing. Mast CEO Joy Abisaab said that working with 10x would “empower U.K. lenders to unlock new levels of operational efficiency and enable the delivery of exceptional customer experiences.” 10x Banking has raised $297 million in funding. The company includes JPMorgan Chase and BlackRock among i...

🌟 Opportunities and Challenges in the US Digital Banking Landscape ! 🌟 📈 The USA's digital banking landscape is rapidly evolving, offering a myriad of opportunities and challenges. The upcoming C-Innovation report dives deep into this dynamic market, providing strategic insights essential for Neobank, digital and traditional banks. 🔍 Dynamic & Profitable Market ● The banking sector in the USA is characterized by diverse revenue streams and significant profit potential. ● It offers substantial growth opportunities for both established players and new entrants. ● The USA holds 15% of global banking assets among the top 50 banks, underscoring its financial strength and leadership. 🌐A Market characterized by Banking Partnerships ● The US digital banking ecosystem features a mix of fully licensed fintechs, corporate-backed digital brands, and firms collaborating with licensed banks. ● Neobanks prominently utilize partnerships with traditional banks to navigate the market effectively. ● Due to the complexities of obtaining bank charters, notable companies have withdrawn their applications, including Robinhood, Brex, Monzo Bank, bunq and Rakuten. Revolut has engaged in discussions with regulators but, has opted to hold off on its application. N26 left the USA in 2022. 🔥 Intense Competition & Innovation: ● It is marked by fierce competition and continuous innovation. Companies like Chime are adapting to competitive pressures and enhancing their offerings. ● Investment Platforms like Robinhood and Wealthfront are integrating banking services and redefining holistic financial management. ● Similarly, p2p platfomrs, such as Venmo and Cash App are expanding their product offerings to capture a larger share of the digital banking market. ● Foreign players are also pursuing the USA. While some, like Klarna and OakNorth, are finding success, others like bunq and Openbank are adopting targeted strategies to overcome challenges and capitalize on the American landscape. ● Despite challenges in entering the US market, Monzo Bank is determined to seize new opportunities. The recent $610m funding round has raised its valuation to $5.2bn, setting the stage for significant growth. In FY2024, Monzo USA generated £715k in revenue and incurred a loss of £9m. New Entrants focused on Niche Market: ● New-generation neobanks, such as Totem Technologies, Inc. and Greenwood, are catering to niche segments like black, Latinos and Indigenous communities providing tailored financial solutions. 📌 Leverage C-Innovation insights, as we benchmark 16 Personal and SME Banking Brands, to develop strategic growth plans and competitive strategies. Understand the evolving market dynamics and capitalize on emerging opportunities. Explore more and order your copy today 🔗https://lnkd.in/eJhzV5xd #DigitalBanking #Fintech #CInnovation #financialservices #Monzo #Klarna #revolut #banques #banca #bankingindustry #businessmodels #banking #openbanking #Banken #neobank

As we approach 2025, a new era of open banking is dawning in Europe and in many emerging countries. Three key regulations - Instant Payments, Digital Wallets, and PSD3 (including Payment Services Regulation and Financial Data Access framework) - are set to transform the financial ecosystem. Banks, aggregators, fintechs, consumer associations, and regulatory bodies must prepare for this seismic shift. BPC SmartVista Digital Banking has already anticipated these points with one unified platform with Low code to No code but let's dive a bit deeper. The Digital Revolution of Money (Nothing new and it is moving faster) The future of money is undeniably digital. As we progress towards complete digitization, we're witnessing the emergence of new forms of money, such as stablecoins. These digital assets are designed to work seamlessly with traditional money systems, facilitating easy transfers between banks, payment providers, and wallet accounts. The Crucial Role of Payments in Financial Organizations Within banks and fintech companies, the payment function is not isolated; it's deeply intertwined with various organizational facets and closely tied to the underlying infrastructure. A robust and flexible core banking layer, capable of storing value and enabling real-time funds transfer, will be a critical success factor - not just for financial services, but for companies across various industries. Digital Wallets: Beyond Financial Services The potential of digital wallets extends far beyond traditional banking: 1 - Utilities companies can leverage digital wallet accounts to manage customer reward points, enabling seamless conversion between different types of rewards. 2 - Insurance companies can create digital wallet accounts for customers, allowing them to store money, receive immediate refunds, and pay for insurance contracts. This increased interaction can enhance customer experience and provide valuable behavioral data. The Foundation: Core Banking/Ledger and Digital Platforms A modern core banking layer is crucial, handling essential functions like customer data, KYC, accounts, deposits, withdrawals, balances, and transaction history. The payment function relies heavily on this infrastructure to facilitate fund movement and accurate transaction recording. To bridge the gap between legacy systems and digital experiences, financial players are adopting platform strategies. A Digital Platform serves as an incremental layer of a company's digital assets, continuously evolving over time. Companies embracing this approach are better positioned to develop new digital products and respond swiftly to market changes. As we stand on the brink of this new era in open banking, it's clear that adaptability and innovation will be key to success. Those who embrace these changes and leverage new technologies will be well-positioned to thrive in the evolving financial landscape. #BPC #OpenBanking #DigitalWallets #FinTech #PSD3 #FinancialInnovation

Are you with financial or banking industry? Then here is a great case study for you to take a look. Cheers!

#Banks globally have seen record profits over the past two years, what will 2025 look like for the sector? And how should #financialservices firms respond to narrowing net interest margins? Check out some of the key takeaways from our #bankingpredictions2025 report! #digitalbanking #conversationalAI #payments #bankingproducts

A digital banking app was shut down in just 6 months! But how did Goldman Sachs' Digital Bank "Marcus" make a huge score? Banking Industry Insight: Accenture found that 40% of digital banking projects fail due to poor integration with legacy systems, resulting in a fragmented customer experience strategy. STRATEGY in Dx Flywheel Framework: Develop a roadmap that aligns market trends, customer needs, and technology to drive continuous innovation. In the Banking industry, due to a lack of STRATEGY, a real-life failure of a digital product in Royal Bank of Scotland (RBS). In 2019, Royal Bank of Scotland (RBS) launched "Bó," a digital-only bank designed to compete with fintech disruptors like Monzo and Revolut. However, within less than a year, Bó was shut down, marking a significant failure in RBS's digital strategy. Bó failed to attract the expected number of customers, with only about 11,000 sign-ups. Top 3 Strategic Reasons for Failure: Bó lacked unique features that could distinguish it from established digital challengers. Bó was rushed to market without adequate testing or refinement. Bó's purpose and target market were not clearly defined, leading to confusion both internally and externally. What should be the solution? On the other hand, Goldman Sachs successfully launched "Marcus," its digital consumer bank, which has seen significant growth since its inception in 2016. Marcus created Great Results for the Business such as - Customer Growth: Marcus has attracted over 13 million customers globally. Revenue Growth: Marcus has generated billions in deposits, contributing significantly to Goldman Sachs' revenue diversification. Brand Enhancement: The success of Marcus has strengthened Goldman Sachs' brand as an innovative player in consumer banking. Top 3 Strategies, that Made Marcus Successful: Strong Market Research and Customer Understanding: 90% of Marcus customers cited high satisfaction with the platform’s simplicity and value. Robust Technology and User Experience: 80% of users reported a seamless experience with the Marcus app. Clear Strategic Vision and Focus: Marcus contributed to a 20% increase in Goldman Sachs' consumer deposits within the first two years. P.S. Among those strategies, which one will be most affordable for you to apply to your company? Reference Sources - RBS Shuts Down Its Digital Bank Bó Less Than Six Months After Launch, The Guardian Article - "How Marcus by Goldman Sachs Became a $60bn Bank", Financial Times - "Retail Banking: Roaring Into the 2020s" McKinsey & Company - Accenture, "Banking Technology Vision 2020: Building a Future-Proof Bank, #digitalproduct #digitaltransformation #businesstransformation #johnmasudparvez #dxFlywheelFramework

🌐Benchmarking Success: Comparative Insights into Digital Banking Performance in 2024 As the digital banking landscape evolves, major players like Nubank, Revolut, Monzo Bank, and Starling Bank continue to adapt and innovate. C-Innovation's latest blog by Linda Souak dives deep into their performances, shedding light on key indicators and strategic insights. 📈 Key Performance Insights: ● Nubank astounds with a remarkable financial turnaround, posting $1,030m in profits and an impressive revenue surge to $8,028m, demonstrating effective cost management and aggressive market penetration. ● Revolut transitions from red to black, achieving profitability in 2021 with smart diversification and technological advancements, expecting to boost revenue to $1,875 million for 2023. ● Monzo's growth and market expansion have been steady, but profitability has been elusive. However, with last year's achievement of monthly profitability, there's optimism about maintaining this trend in the 2024 financial statements. Monzo aims for this year to signal a clear path to sustained profitability. ● Starling Bank showcases a sustainable growth model with a profit of $179m, supported by strong customer deposits and a focus on both retail and business sectors. 📊 Market Valuations and Customer Engagement: ● Nubank leads with a market cap of $51.8 B and a customer base of 95 million, demonstrating a high ARPU of $84.5. ● Revolut has the lowest ARPU at $30.3, potentially reflecting its previous strategy of attracting a high volume of users with low-cost services, while it holds a significant valuation of $25.7B, as last week emerged that Schroders Capital Global Innovation Trust has revalued its stake in Revolut upward by 45%, underscoring its solid market positioning and the optimism surrounding its financial trajectory ● On its side, Starling is in a phase of stabilization following the departure of its CEO in June 2023. With Raman Bhatia now at the forefront as the new CEO, the challenge lies in maintaining the strong performance figures the bank has shown, including robust growth in deposits and customer engagement, along with impressive ARPU statistics. 🔍 The Rising Trajectory of Digital Banks: Digital banks' sustained growth and effective operations showcase their financial solidity and strategic savvy. Their skill in customer retention, revenue generation, and regulatory navigation strengthens their market valuations and competitive stance. Today's trends indicate these institutions are not merely surviving; they're thriving, evolving, and innovating for today's financial consumer. 💡 Dive into the full analysis to understand how these digital banks are setting the benchmarks for success. https://lnkd.in/e_Ku9aE2 #cinnovation #financialservices #banques #banca #bankingindustry #fintechs #businessmodels #digitalbanking #banking #strategy #openbanking

RapidCompute is the leading in-country cloud service provider, which feels excited to announce a strategic partnership with Sunshine Technologies to deliver a comprehensive suite of Sunline’s banking and data analytics management solutions tailored to the unique needs of the country’s financial sector. This collaboration is set to empower commercial banks, Digital Retail Banks (DRBs), and other financial institutions by integrating Sunshine Technologies’ cutting-edge banking service, digital banking, and data analytics management solutions with Rapid’s robust, secure, and scalable cloud infrastructure. Sunshine Technologies offers a wide range of Sunline’s products, including Core Banking & Digital Banking Solutions such as Deposit, Investment Management, and Loan solutions. Additionally, their portfolio includes advanced digital platforms like BaaS, Digital Financial Platform, and Open API Platform, all designed to enhance operational efficiency and customer experience for banks. By partnering with Rapid, Sunshine Technologies ensures that their innovative banking solutions are backed by a resilient cloud environment that meets the rigorous demands of Pakistan’s financial sector. Rapid’s cloud services, known for their security, scalability, and compliance with local regulations, perfectly complement Sunshine Technologies’ offerings, paving the way for accelerated transformational shift in the industry. Adeel Farooqi, Product Development Manager of RapidCompute, highlighted the importance of this collaboration, stating: “This partnership is a milestone in our mission to support Pakistan’s financial sector with world-class technology solutions. By combining Rapid’s cloud expertise with Sunshine Technologies’ advanced banking solutions, we are poised to drive significant improvements in operational efficiency and customer satisfaction across the financial industry.” This alliance between Rapid and Sunshine Technologies is not just a business collaboration; it is a powerful synergy aimed at redefining the banking landscape in Pakistan. The partnership will play a crucial role in supporting the country’s broader digital banking agenda, ensuring financial institutions can operate securely, efficiently, and with enhanced agility. Amina Ahmed, CEO of Sunshine Technologies, shared her thoughts on the partnership, stating: “We are thrilled to join forces with Rapid to bring our solutions to the forefront of Pakistan’s financial sector. Our partner Sunline, as a Global Banking IT Solutions Expert, is committed to collaborating with Pakistani stakeholders to unlock the full potential of digital banking and achieve financial inclusion for all citizens. With this partnership we aim to instigate a transformative shift in the banking landscape of Pakistan, infusing it with cutting-edge technology and offering Banking as a Service. We aspire to pioneer new standards of efficiency, security, and customer-centricity in the banking sector.” #lougheeloug

BaaS with AI: Unlocking Limitless Opportunities for Innovation The concept of Banking as a Service, first coined by Chris Skinner in 2009, has gained significant traction in recent years. BaaS empowers banks to open up their infrastructure and services through APIs, enabling other businesses to seamlessly integrate banking capabilities into their own products and services. This shift has unlocked a world of opportunities, allowing companies across various sectors to leverage the expertise and resources of financial institutions without the need to build their own banking capabilities from scratch. As the financial industry continues to embrace these cutting-edge technologies in BaaS and AI, the possibilities for enhancing customer experiences, streamlining operations, and driving growth are truly limitless. Alongside the rise of BaaS, the financial industry has also witnessed the transformative impact of artificial intelligence. AI-powered tools and technologies are revolutionizing digital marketing, customer engagement, and data analysis within the banking and fintech realms. From personalized chatbots to predictive analytics, AI is enabling financial institutions to enhance customer experiences, improve operational efficiency, and gain a competitive edge. Several companies are at the forefront of leveraging BaaS to drive innovation and expand their reach. Railsr has developed its own proprietary infrastructure to offer a variety of BaaS products, including faster payments and Buy Now Pay Later (BNPL) functionality. Finastra offers an open developer platform and an app marketplace through its Fusionstore serving 90 of the top 100 world banks. Marqueta issues physical, virtual, and tokenized credit cards, debit cards, and prepaid debit cards, and serves digital banks and non-bank customers in many industries. BBVA has integrated its BaaS platform into the Uber app in Mexico, enabling Uber drivers and delivery partners to receive earnings and access loans and gas discounts. As the financial industry evolves, the integration of BaaS and AI will undoubtedly play a pivotal role in shaping the future of finance. By embracing these transformative technologies, financial institutions and their partners can unlock new avenues for growth, enhance customer experiences, and drive the industry forward. #BankingasaService #AI #FinTech #Innovation #FutureofFinance #DigitalTransformation #CustomerExperience _______________________ Sources Banking as a Service (BaaS) Examples and FAQs - Tipalti https://lnkd.in/gVh8PcNS Banking As a Service (BaaS) Explained & Industry Outlook 2023 https://lnkd.in/gm24kBm6 Banking's long road to BaaS - FinTech Futures https://lnkd.in/g5jWNrhN BaaS and Generative AI : Finastra's Insights for 2023 https://lnkd.in/g5rrTKMn