Financial Technology Innovations

From an off-line, in-branch experience driven by account management relationships, consumer #finance is being radically transformed to an all-digital, embedded business. Let’s take a look.   Consumer finance is the largest retail #banking segment, accounting for more than a third of a $2 trillion a year revenue pool (source: Accenture).   Look back several years and products such as credit cards, consumer loans or mortgages used to form the core of this #business with banks being almost exclusively behind the scenes. Today the landscape is entirely different on two fronts: 1) the offering itself 2) the competitive mix that – besides incumbents – includes fintechs, marketplaces, on-line platforms, superapps, payment players and an increasing number of non-FS parties.   Factors such as the decoupling of the customer experience from the infrastructure, the APIsation of the economy, the abundance of data as a result of the dominance of digitization and a trend for customized experiences, have led to a total restructuring of the traditional value chain with the parallel surfacing of new business models.   Perhaps the best example to understand what these new models are and how they are changing the business on its head is the rise of BNPL, which started as a niche segment from specialized players more than a decade ago only to become an industry worth about $316 bn in 2023 (source: WorldPay).   And whereas there is nothing new in a decade-old model that is just facilitating installment payments, the digitization of the end-to-end check-out process has transformed an unattractive, paper-based product to a digital, app-based, embedded offering that has revolutionized e-commerce, banking, payments and beyond.   Such disruption has, in turn, unleashed a wave of #innovation occurring via the emergence of a series of new consumer finance business models, which run across the entire end-to-end value chain and are based on iterations of a few common parameters:   —     Technology converting the check-out process into a seamless and embedded experience   —     Distribution channels (traditional or alternative and very often including software as well)   —     Control of the customer relationship (or not)   —     Licensing and balance sheet funding (own or via a provider / BaaS model)   In such a diverse landscape two distinctive trends are leading the way:   —     players assuming more than one role across the value chain (i.e. both B2B and B2C plays or dual-distribution strategies)   —     a #data-driven approach facilitating decisions through multiple tiers (i.e. credit-risk underwriting or commercial, front-end customization)   As consumer finance matures and evolves into its next milestone, it will increasingly combine platform plays with digitally native, instant, frictionless experiences that are embedded in wider ecosystem offerings delivering value (and monetizing) across several layers.    Opinions: my own, Graphic source: Accenture

Jamie Dimon’s hands-on approach to AI is a masterclass in leadership. Here’s why it matters for every financial leader 👇 JPMorgan is making significant strides with AI. They recently launched an in-house chatbot that performs the work of a research analyst. But the real story here? CEO Jamie Dimon is leading the charge, personally engaging with AI tools to stay ahead. This isn't just about a big bank adopting new tech. It's a lesson in leadership: 1. Top-down innovation: ↳ When CEOs embrace technology, transformation accelerates. 2. Hands-on approach: ↳ Dimon's personal engagement with AI sets an example for the entire organization. 3. Continuous learning: ↳ Even industry veterans are adapting to stay ahead. Why is this so important? - Banks are predicted to benefit more from Gen AI than any other industry, with productivity boosts of 22-30%. - The global Gen AI market in finance is forecast to increase at a compound annual growth rate of 28.1% between 2023 and 2032. - The banking sector's spending on GenAI is projected to reach $84.99 billion by 2030, reflecting a commitment to utilizing AI for enhancing customer experiences and optimizing operations. The message is clear: CEOs must be catalysts for change, regardless of their institution's size. But here's the good news: You don't need to be a trillion-dollar bank to leverage cutting-edge AI. With the right approach, any financial institution can access powerful AI tools and stay competitive. My advice to financial leaders: 1. Educate yourself on AI capabilities. 2. Educate your leadership on AI capabilities. 3. Setup real environments for testing out use cases. 4. Start small, learn fast, scale strategically or get left behind. As Jamie Dimon said: "AI and the raw data that feeds it will be critical to our company's future success." 👉 The next decade will be ‘adapt or die’ for banks. Agree?

𝐓𝐨𝐩 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐓𝐫𝐞𝐧𝐝𝐬 2025 by Capgemini (Part 1) — Open Finance & Instant Payments Adoption The forever-evolving payments landscape is taking on 2025 with new initiatives, innovations and trends. 🔟 𝐓𝐡𝐞 𝐓𝐨𝐩 10 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐓𝐫𝐞𝐧𝐝𝐬 𝐨𝐟 2025: 1. 𝐎𝐩𝐞𝐧 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 2. 𝐈𝐧𝐬𝐭𝐚𝐧𝐭 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧 3. 𝐏𝐎𝐒 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧𝐬 4. 𝐂𝐫𝐨𝐬𝐬-𝐁𝐨𝐫𝐝𝐞𝐫 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 5. 𝐂𝐨𝐦𝐩𝐨𝐬𝐚𝐛𝐥𝐞 𝐂𝐥𝐨𝐮𝐝-𝐁𝐚𝐬𝐞𝐝 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐇𝐮𝐛𝐬 6. 𝐌𝐮𝐥𝐭𝐢-𝐑𝐚𝐢𝐥 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 7. 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞 8. 𝐃𝐞𝐜𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐳𝐞𝐝 𝐈𝐝𝐞𝐧𝐭𝐢𝐭𝐲 9. 𝐑𝐞𝐦𝐢𝐭𝐭𝐚𝐧𝐜𝐞 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 10. 𝐃𝐚𝐭𝐚 𝐌𝐨𝐧𝐞𝐭𝐢𝐳𝐚𝐭𝐢𝐨𝐧 —— #1: 𝐎𝐩𝐞𝐧 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐃𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧 & 𝐁𝐚𝐜𝐤𝐠𝐫𝐨𝐮𝐧𝐝:
Open Finance expands the scope of Open Banking by incorporating not just banking data but also insights from investments, insurance, and pensions. 𝐊𝐞𝐲 𝐈𝐦𝐩𝐚𝐜𝐭𝐬: ► Enables hyper-personalized products and services. ► Greater access to financial services, particularly for underserved markets. ► Banks and FinTechs benefit from streamlined processes and enhanced data insights. 𝐔𝐬𝐞 𝐂𝐚𝐬𝐞𝐬: ► Businesses — Cash forecasting, risk scoring, and KYC automation. ► Consumers — Loan underwriting, payroll processing, and account aggregation ► Peer-to-Peer — Social payments, bill splitting, and A2A transfers. 𝐄𝐱𝐚𝐦𝐩𝐥𝐞𝐬: 🔸 Nubank: Leveraging Open Finance for better credit assessments and financial planning tools. 🔸 Klarna: Driving flexible payment solutions in partnership with global merchants. —— #2: 𝐈𝐧𝐬𝐭𝐚𝐧𝐭 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧 𝐃𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧 & 𝐁𝐚𝐜𝐤𝐠𝐫𝐨𝐮𝐧𝐝:
Instant Payments involve real-time money transfers between bank accounts, bypassing traditional intermediaries. They’re already transforming economies by shortening settlement cycles and reducing costs. 𝐊𝐞𝐲 𝐈𝐦𝐩𝐚𝐜𝐭𝐬: ► Banks — Lower transaction costs and strengthened corporate relationships. ► Businesses — Faster cash flows and real-time treasury management. ► Consumers — Seamless, low-cost transactions. 𝐊𝐞𝐲 𝐀𝐜𝐜𝐞𝐥𝐞𝐫𝐚𝐭𝐨𝐫𝐬: 1. Standardized user interfaces. 2. Cross-border payment linkages. 3. Governance frameworks (e.g., public vs. private ownership models). 4. Advanced infrastructure such as ISO 20022 messaging standards. 𝐔𝐬𝐞 𝐂𝐚𝐬𝐞𝐬: ► A2A Payments, just-in-time supplier payments, and QR-code-based cross-border transactions. 𝐄𝐱𝐚𝐦𝐩𝐥𝐞𝐬: ► #Wero : A European wallet simplifying instant cross-border money transfers. ► #Pix: Brazil’s instant payment system, now piloted in Europe. — 🚨 This is a series of 5 posts — next up 🚨 3️⃣ — 𝐏𝐎𝐒 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧𝐬 4️⃣ — 𝐂𝐫𝐨𝐬𝐬 𝐁𝐨𝐫𝐝𝐞𝐫 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 Get ready, it is just the beginning! —— Source: Capgemini ► Sign up to 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐁𝐫𝐞𝐰𝐬 : https://lnkd.in/g5cDhnjC ► Marcel van Oost and Connecting the dots in payments...

Microsoft just redefined the wealth management desktop at T3 2025, and advisors need to pay attention. Amy Young, CFA, Managing Director of Industry Advisory for Capital Markets, delivered a compelling vision of how #AI will shift advisor workflows from instinct-driven to data-driven. Here's what caught my attention: 🔍 Client meetings are data goldmines - it's not about convenience but capturing rich signals that would otherwise be lost in traditional CRM entries 💼 Microsoft Graph is the secret weapon behind Copilot - it maps relationships between all your Microsoft 365 data (emails, meetings, files) to provide context that makes AI responses dramatically more personalized 🤖 "Agents" represent the next evolution beyond Gen AI - they can automate judgment-based tasks by combining reasoning capabilities with execution powers 📊 Microsoft is building an ecosystem of wealth management partners (like Morningstar) to integrate specialized data into the Microsoft desktop experience 📱 The "center of gravity" for advisor desktops may shift from CRM to AI interfaces like Copilot as these capabilities mature The implications are significant: advisors will spend less time on admin tasks and more time on high-impact client interactions guided by data-driven insights. The ability to proactively identify client needs (like elder care planning) before they become urgent could transform how advisors deliver value. Microsoft's wealth management strategy mirrors what we saw with Salesforce a decade ago - they're positioning to become the intelligence layer connecting the advisor's digital ecosystem. Firms that develop thoughtful data strategies to feed these AI systems will gain substantial advantages in personalization and advisor efficiency. #wealthmanagement #financialadvisors #financialplanning #technology #T32025

Since Covid, there are two revolutions underway that are being driven by India’s youth. The first is a rapid rise in stock market participation, both directly and through mutual funds, and the second is a surge in credit-driven consumption. These intertwined trends are redefining both the investing and spending habits of a generation. Prior to the pandemic, investors under 30 comprised just 23% of the NSE’s registered investor base; but by end 2024, that share soared to an estimated 40%. This increased share needs to be seen in the context that the registered base of investors on NSE has grown more than 3x since Covid. According to an estimate, the under 30 investor accounts for more than half of new mutual fund investors since 2020, with many from smaller towns. The proportion of retail F&O traders under 30 is estimated at almost 45%. All the above data is not based on value, it must be said, but is still very significant. A huge trend in India, not seen before, is that in spite of consistent and considerable selling by FIIs, markets have held up because of strong domestic flows, in part driven by this trend. While earlier generations thought “save now, consume later”, this generation is more about “consume now, invest for later”. The under 30 segment dominates the personal loan business and the Buy-Now-Pay-Later (BNPL) sector. Whether it’s essentials or one time indulgences, everything is available on EMI; it is estimated that over half of BNPL volume emanates from Gen Z and millennials. The personal loan market too is driven by the same segment who are said to account for a significant part of the demand. Whether the personal loan is funding consumption or investments is an important question. What is driving these twin revolutions? One, possibly greater optimism about the future which then fuels risk appetite, leading to taking leveraged bets in equities or funding lifestyle choices with credit. Second, the growth of Digital Platforms which have made access easy and seamless for a new generation which is digitally native. Third, Social Media influence, with “finfluencers” advocating equity investing while lifestyle influencers promote aspirational consumption. Fourth, a solid performance in Indian equities since the pandemic which has possibly led this group to believe that this kind of return is expected. The worst performing month (Oct 24) since Covid saw a 6% fall in the Nifty. Compare that to the larger corrections seen say in 2001, 2008 or 2011. What are the risks? Household leverage is rising and coupled with higher equity exposure, Indian households are becoming more sensitive to market and interest rate cycles and more vulnerable to downturns. Savings – the lifeblood of our economy for long - is falling. Regulations and financial literacy need to help strike a balance between deepening and widening markets, while curbing reckless speculation and over-leverage.

Everyone says AI will transform finance, but no one tells CFOs how to make it actually pay off. AI pilots are everywhere… but measurable ROI is rare. If you’re a CFO or FP&A leader, you don’t need another tool, you need a framework that connects AI to business outcomes. Here are 5 that actually work: 1) The 4R Framework Recognise → Identify real finance pain points. Redesign → Integrate AI and automation into the process. Run → Pilot with real data and defined KPIs. Realise → Quantify time, cost, and error reductions. 2) The VALUE Framework Vision – Automate – Learn – Use – Evaluate. Start small, build literacy, then scale what delivers measurable impact. 3) The 3P Framework People. Process. Platform. Train your team, redesign workflows, and choose scalable tools (Python - available now in Excel, Copilot, ChatGPT Enterprise, Power BI). 4) The ROI Loop Measure → Deploy → Measure again → Reinvest. Treat AI like any other capital project. Expect a return, not a headline. 5) The MIND Framework Model – Interpret – Narrate – Decide. Turn deterministic Python outputs into GenAI-powered insights that drive action. BONUS: The FOUNDATION Framework Before deploying AI, build a clean, automated, and standardised data layer. Then: a) Define the real business problems to solve. b) Deploy a standardised, repeatable solution that uses not only AI, but also automation, data governance, and integration across your systems. Because AI is only as powerful as the data and the discipline behind it. These frameworks can help you move finance from AI hype to measurable value. Sharing 3 More Resources to make this happen: https://lnkd.in/erM6KiNv https://lnkd.in/eTgrPPec https://lnkd.in/eTVnDvKQ

Here are 10 actions for CFOs to improve and transform their finance function. It feels like we've been in a stage of always-on transformation in Finance for the past two decades. And to put it bluntly, it won't stop any time soon. Instead, let's lean into the transformation and discuss what actions CFOs and finance teams can take to improve the finance function. 1. Create a strategic roadmap Create a detailed plan outlining the steps and milestones for enhancing the finance function over the next 1-3 years. Align the roadmap with the company's strategic objectives and allocate resources accordingly. 2. Drive process automation Identify repetitive and time-consuming tasks in finance operations, such as data entry or reconciliation. Integrate financial management software or automation tools to streamline these processes and reduce errors. 3. Use advanced analytics Implement data analytics software to analyze financial data for insights. For instance, use tools to track cash flow patterns, identify cost trends, and forecast revenue more accurately. 4. Enhance your compliance efforts Strengthen internal controls by conducting regular audits and risk assessments. Implement technology-based solutions like AI-driven fraud detection systems to mitigate risks and ensure compliance. 5. Implement rolling forecasts Transition from annual budgeting to rolling forecasts. This allows for more dynamic financial planning, enabling your organization to adapt quickly to changes in the business environment. 6. Go zero-based budgeting Adopt ZBB to scrutinize and justify all expenses from the ground up. This approach can help identify unnecessary costs and allocate resources more effectively. 7. Become a business partner Assign finance team members as business partners to other departments. Foster collaboration by having finance professionals work closely with e.g., operations and sales teams to align financial strategies with business goals. 8. Leverage emerging technologies Explore emerging technologies like blockchain for secure transactions or machine learning for predictive analytics. Implement pilot projects to assess their viability and potential impact on your finance processes. 9. Upskill your team members Identify skill gaps within your finance team and provide training programs to address them. Offer workshops on topics such as advanced Excel skills, data analysis, financial modeling, and regulatory compliance. 10. Track your progress Define KPIs specific to your finance function, such as accuracy of financial reports, time taken for month-end close, or efficiency of invoice processing. Regularly monitor these metrics and implement improvements based on the results. ---------- What initiatives do you have on your roadmap for the rest of 2023? 🧑💼 I'm a partner at Business Partnering Institute 🆘 Need immediate help in your finance team, call us! 🤝 We help increase the influence of your finance team

Banking on Invisibility ? Envisioning the next generation of financial products, services, and paradigms involves anticipating and adapting to evolving trends in technology, regulation, consumer behavior, and global economic conditions. 1. Open banking has enabled brands across the board—from fashion to mobility to healthcare—to act as financial institutions, embedding loans, payments, payroll and more into existing offerings. 2. Digital-First Banking: The next generation of financial services will continue the shift toward digital banking. Traditional banks and fintech companies will offer seamless online and mobile experiences, making banking more convenient and accessible. 3. Automated Regtech and Compliance Automation: Regulatory technology (Regtech) will continue to evolve, automating compliance processes and ensuring financial institutions adhere to increasingly complex regulatory requirements. 4. Behavioral Finance: Understanding consumer behavior and psychology will play a more significant role in designing financial products and services. 5. Sustainable Finance: The financial industry will increasingly incorporate sustainability factors into investment decisions and risk assessments. 6. Blockchain : Blockchain technology will disrupt traditional financial systems, enabling faster, more secure, and transparent transactions. 7. Artificial intelligence will power advanced analytics, personalization, fraud detection, and robo-advisors, enhancing the efficiency and effectiveness of financial services. These trends represent a glimpse into the future of finance, where innovation and technology will continue to reshape the industry. The financial services sector will need to adapt and embrace these changes to remain competitive and meet the evolving needs of customers. Let's imagine - An entirely new form of finance is on the horizon: one that’s abstracted, seamless and connected at its core.

The Digital Banking Maturity 2024 💡 In the years following the COVID-19 pandemic, the banking industry underwent a rapid digital transformation, rushing to add features that catered to customers’ changing needs. Online banking platforms became more sophisticated, mobile apps were enriched with new functionalities, and financial institutions raced to stay ahead of the curve. Digital champions are now shifting their focus toward optimizing core processes and enhancing customer experience 📱 With banks focusing on evolution instead of revolution, they fine tune the banking experience through hyperpersonalization. Banks now personalize the customer journey by using real-time data and AI-driven insights to deliver the right solutions at the right time. Data become the backbone of this trend, with banks leveraging customer transaction histories, spending patterns, and real-time behaviors to offer tailored recommendations and products that fit individual needs. Banks now tailor their communications to reflect individual customer behaviors, preferences, and financial goals. 🔹 Personalized push notifications alerting customers about budgeting tips when they exceed spending limits. 🔹 Tailored product recommendations based on real-time data, such as suggesting investment products to customers who have received a windfall gain. 🔹 Contextual offers for rewards programs and loyalty points that match customers' spending patterns. AI is not only transforming customer-facing tools but is also revolutionizing internal banking operations. By automating tasks like data entry, document verification, and compliance checks, AI accelerates processes and reduces errors, allowing banks to make faster decisions, such as instant loan approvals. In risk management, AI strengthens fraud detection and credit risk assessments by analyzing real-time data and spotting patterns that human analysts might miss. AI also plays a crucial role in compliance, automating anti-money laundering (AML) and know your customer (KYC) processes 🤖 Customers also seek familiar experiences that would make their lives easier. This means enhancing the security and reliability of core banking services while seamlessly integrating personalized offers. The focus is on making every interaction frictionless and intuitive, with no intention of overwhelming customers with novelty. Banks are doubling down on building trust through security. Regulatory compliance enforced by such regulations as DORA, MiFID II, and PSD2/3 ensures that banks maintain operational resilience while protecting customer data. Cybersecurity measures, like Strong Customer Authentication and behavioral biometrics, are now standard features that enhance customer experience and inspire confidence in the bank's ability to safeguard financial data. Source: Deloitte - https://lnkd.in/eiABBrXY #Innovation #Fintech #Banking #FinancialServices #Payments #Lending #KYC #AML #AI #Data #CyberSecurity #UX #CX 

The New Credit Score: How Your Behaviour Now Matters More Than Your Salary Most credit systems still judge people by salary slips and bank statements. But this misses millions of people who do not have formal income, traditional paperwork, or past loans. It creates a system where reliable, consistent individuals are denied access to credit. The shift happening now is huge. Lenders are no longer asking only about income. They are asking how people behave with money. Alternative credit scoring looks at everyday digital signals like: • UPI transactions • Utility and rent payments • Ride history • Mobile recharge patterns • Ecommerce behaviour • Gig income from platforms like Uber and Swiggy • Social and spending patterns Your financial behaviour tells a more complete story than a single document. This approach creates a fairer and more inclusive credit system. Users get faster approvals, access without prior history, and small-ticket loans when needed. Lenders get richer behavioural data, better risk prediction, and higher conversion. The future question is not “What is your salary?” It becomes “How do you behave with money?” A world where everyone gets a fair chance at credit is closer than we think.