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3 Reasons CFOs Should Care About Investing in Cloud Based Banking

Shefali Vasave | June 22, 2022 | 720 views | Read Time : 05:30 min

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Consumers today want fast, seamless, and effective services at their fingertips. In a world of virtualization, these demands keep bank C-levels on their feet. What better than cloud technology to address these demands?

Cloud computing uses the internet to access data stored on external servers. Traditionally, banks have been slow adopters of technology and for good reasons. The risks involved in becoming a heavily cloud-dependent organization aren’t few. And banking institutions too, take their own time to assess risks.

Despite this, cloud computing in banking presents a glowing opportunity for financial institutions to transform their operations. On-premise banking infrastructure no longer cuts it. It cannot meet modern challenges that require banks to access applications via the internet. Moving to the cloud isn’t a not an easy bargain, but one with many paybacks that bank CFOs must take note of.

In this article we talk about the intricacies of switching from on-premise to the cloud in a modern context. We also talk about how CFOs can regulate costs and drive long-term financial strategies using the cloud.

 

Ironclad Security

Security is a serious concern for banks when moving to the cloud. Although 90% of banks use cloud computing for non-core processes, core services remain on the premise and off the cloud. This leaves a huge opportunity unused.

With the unique security challenges so common to banking institutions, CFOs can advocate for specialized security enforcement solutions inside and outside the cloud that can meet rigorous security parameters.

  • Fraud detection- It is important to mention here that public clouds are known to be more secure than on-premise infrastructure. This is thanks to the layers of protection that the cloud can be equipped with. Cloud-based banking also offers seamless fraud detection and protection by assessing large amounts of data from a variety of sources. It empowers banking institutions to stay ahead of the curve when anticipating discrepancies beforehand.
  • Blockchain integration- Blockchain is the latest in technological innovation to provide ground-breaking use cases. In cloud banking services, blockchain is outgrowing its cryptocurrency ecosystem. It can be used to add a layer of security to data and cloud architecture.

 

Richer Analytical Insights, Better Financial Reporting


Cloud services for banks arm banking and financial institutions with the ability to breakdown data silos across the organization. This leads to centralizing data and generating 360-degree insight for analytics. Data insights have been proven to transform decision-making, operational efficiencies, and organizational processes. The most significant advantage, however, is product and consumer analytics.

  • Product analytics- A reduction in product deployment cycles is just one of the many advantages that cloud computing in banking has to offer. It simplifies product testing in a way that enables organizations to test new solutions and to meet market demands and challenges while thinking on their feet. One of the most significant advantages is the easy facilitation of cloud banking possibilities that can empower customers of both traditional and non-traditional financial services.
  • Consumer analytics- The cloud offers a hyper-flexible platform that is ideal for processing tremendous amounts of real-time data. For instance, when the cloud replaced an investment bank’s legacy banking infrastructure, it yielded an enormous boost in analytics. The transformation enabled trading teams to explore new strategies, execute experiments, and adopt analysis of data points they did not have before. Barclays, a premier banking institution, was able to free up resources for its risk analysis team by implementing a cloud-based automation process. This is further helping banks and financial firms tailor products that align with consumer demand while also balancing financial risks in a volatile market.

Companies that do not make customer experience a priority will struggle and quickly fall behind.”

Jeff Pedowitz, President and CEO at The Pedowitz Group


Agility in Developing and Scaling New Product Offerings


Agility is not just a buzzword in business. Today’s processes need to be lean and simplified to support growth in a fast-changing market. Cloud computing empowers organizations to be nimble in reacting to competitive market landscapes. In addition, accompanied by the power of data, modern financial institutions can go further than they would have anticipated in designing solutions. The wide-berth of opportunities posed by cloud computing for financial services can help create a highly competitive, agile, and scalable financial organization.


Constraints to Look Out for When Switching to Cloud Computing for Banks

While cloud banking services provide a new vista for banking and financial services, the transition to cloud banking may not be simple. The banking sector is evolving, and the demonstrated capabilities of the cloud come with a significant challenge that senior leaders must take into account.



  • Migration Costs- The upfront cost of using cloud computing in banking is high. This may keep many banking and financial services’ organizations, especially smaller ones, from truly leveraging the cloud for open banking. A thorough financial analysis and planning is required to attain an equilibrium in cost through cloud banking services.
  • Skill Shortage in Cloud- According to an Accenture study, 41% of organizations rank a shortage of cloud skills as one of the top three barriers to adopting the cloud. Achieving a balance of in-house and third party cloud talent is key. A great example of this was demonstrated by the banking industry itself when it transitioned from brick-and-mortar operations to digital and from websites to mobile.
  • Compliance Concerns- Meeting security regulations and banking compliance codes is another significant challenge for cloud banking. Although regulatory authorities are increasingly supporting the cloud transformation, many banking institutions are cautious when it comes to exposing critical moving parts to regulation and the risk of non-compliance.


To Round Off

The cloud offers modern technology that is ready to scale at a day’s notice. With agility on offer, cloud computing in finance is much more than just an on-demand access to computing resources. Banking technology services are poised for a revolution, and cloud banking will play a major role in it. The points covered in this article discuss the immediate benefits that the cloud can offer. But as consumer demands and expectations undergo a whirlwind of activity, banking and financial services must join the bandwagon. They will need to assess how to leverage the cloud for their specific needs in a way that increases ROI and creates a sustainable, thriving organization.


Frequently Asked Questions


What are some storage options for cloud computing in finance?

Public cloud storage is easily scalable as well as economical while private cloud storage offers complete control and greater scalability. Hybrid cloud storage offers the best of both worlds with significant user control and simplified customizations. Banks can explore a combination of cloud storage solutions that align with their security needs.


What are the types of cloud banking services used by banking institutions?

The types of cloud banking services that banks can opt for include:

  • Software-as-a-Service (SaaS)
  • Infrastructure-as-a-Service (IaaS)
  • Platform-as-a-Service (PaaS)


How many banks are now using the cloud?

An IBM banking multicloud survey revealed that over 91% of banking and financial institutions were already actively using cloud technology.

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Practica Capital

Practica Capital is a venture capital (VC) firm investing in Baltic startups and high-growth businesses, which target national markets or have an ambition to become regional, international or global players. We offer a full range of VC financing from pre-seed to late seed/start-up, co-investments in round A and investments in SME’s expansion. Our team is a mix of investment, technology and entrepreneurial backgrounds. Founded in 2011 and run by investment professionals with previous pan-Baltic private equity and investment banking experience in BaltCap, Hanseatic Capital, Evli, SEB Enskilda, MP Investment Bank and entrepreneurs who exited their businesses. One of the founders and senior adviser Anatolijus Faktorovičius is a founder and former CEO of Viltechmeda, medical device producer sold to a NYSE-listed Moog Inc. (USA).

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Transforming B2B Customer Experience with Multichannel Banking Solutions

Article | March 28, 2023

Contents 1. Introduction 2. Maximizing Revenue: Cross-Selling and Upselling Strategies 3. Optimizing B2B Operations: Multichannel Banking and Cash Management Solutions 3.1 Digitizing Cash Management in Multichannel Banking: Key Imperatives 4. Leveraging Data Analytics for Multichannel Banking Optimization 5. Striking Balance between Convenience and Security 6. Multichannel Banking Evolution: Trends and Insights 7. Future Scope 1. Introduction Integrating multichannel banking solutions for a seamless customer experience remains a challenge in today’s digital era as financial institutions and banks are expected to provide services through ATMs, online banking, mobile, and in-branch. To boost efficiency and profitability, adopting multichannel payment processing is crucial. Technology enables merchants to process payments from all channels using a single account, thus, eliminating the need for multiple merchant IDs. Consolidating online sales into one location streamlines business processes, reduces card network fees, and leads to significant cost savings. 2. Maximizing Revenue: Cross-selling and Upselling Strategies Banks and financial institutions can effectively promote their multiple products and services to customers based on their needs, behavior, or demographics. Cross-selling and upselling techniques can encourage customers to hold multiple products, which can lead to business growth, new client acquisition, and increased customer lifetime value. Cross-selling involves offering related products or services to existing customers, such as promoting credit cards and internet banking to savings or current account holders. On the other hand, upselling involves increasing the amount invested in an existing or additional product. Both techniques can significantly boost sales, and revenue, and help achieve business objectives. 3. Optimizing B2B Operations: Multichannel Banking and Cash Management Solutions The evolving demands of corporate clients, rising competition from fintech companies, and the emergence of cutting-edge technologies are providing banks with a distinct prospect to revamp their cash management services and capabilities. 3.1 Digitizing Cash Management in Multichannel Banking: Key Imperatives Unlocking the Benefits of Collaboration Fintechs are becoming highly sought-after collaborators due to their product innovation, which enables banks to offer new and compelling services, solutions, and products that aid in attracting and retaining cash management clients. Tech & Alliances for Dynamic Cash Ecosystem Using innovative technologies and services, a cash management approach focuses on delivering cash efficiency and effectiveness to clients. New alliances and data-driven insights create a thriving ecosystem. Omnichannel Architecture In an omnichannel world, architecture plays a crucial role in delivering a seamless customer experience. While the traditional multichannel approach offers diverse touchpoints, it can also lead to a sub-optimal customer experience. Harnessing Real-time and Predictive Analytics In the realm of cash management, banks are increasingly relying on predictive analytics to mitigate risks, underwrite loans, and detect fraud. However, the potential advantages of real-time analytics for both cash management customers and the banks that cater to them are even more extensive. Integrate Cloud Services Compared to conventional decentralized cash management systems, cloud-based systems offer a greater degree of process and control uniformity in all scenarios, bolstering their resilience against potential capacity limitations stemming from factors such as remote work setups, cyber threats, and sudden surges in transaction volume. 4. Leveraging Data Analytics for Multichannel Banking Optimization Data-driven organizations are 23 times more likely to acquire customers, 6 times more likely to retain those customers, and 19 times more likely to be profitable (Source: McKinsey Global) Using data analytics, banks can gain insights into customer behavior, preferences, and patterns across channels. This helps identify customer needs, optimize channel usage, and personalize the banking experience. Predictive analytics can proactively offer relevant solutions to customers through their preferred channels, improving satisfaction. Banks can also optimize channel offerings by identifying the most effective channels for different customer segments, such as mobile banking for younger customers and branches for older customers. 5. Striking Balance between Convenience and Security Multichannel banking has revolutionized the way customers interact with their banks. With the advent of digital banking, customers can now carry out a wide range of transactions using multiple channels such as mobile apps, online banking, ATMs, and branches. While this has made banking more convenient, it has also created new security challenges for banks. Here are some key considerations that banks should keep in mind when implementing a multichannel banking strategy: Multi-factor Authentication: Multi-factor authentication is a crucial security measure that can help prevent unauthorized access to customer accounts. Banks can implement multi-factor authentication by requiring customers to provide two or more authentication factors such as a password, fingerprint, or facial recognition. Fraud Detection and Prevention: Banks should have robust fraud detection and prevention systems in place to identify and prevent fraudulent transactions. These systems should be designed to detect suspicious activities such as large withdrawals, multiple failed login attempts, and transactions from unusual locations. Encryption: Encryption is a critical security measure that can protect sensitive data such as customer account information and transaction details. Banks should ensure that all customer data transmitted through their multichannel banking platforms is encrypted to prevent interception by hackers. Training and Education: Banks should provide regular training and education to customers on how to use their multichannel banking platforms securely. This can include educating customers on how to create strong passwords, recognizing and reporting phishing scams, and using public Wi-Fi safely. Customer Support: Banks should have robust customer support systems in place to help customers with any issues related to their multichannel banking platforms. This can include providing support through multiple channels such as phone, email, and live chat. 6. Multichannel Banking Evolution: Trends and Insights As financial institutions continue to adjust to the ever-changing needs and preferences of their customers, it is imperative to remain informed about the latest trends and insights in multichannel banking. These critical trends and insights have played a pivotal role in shaping its evolution: Rise of Mobile Banking: The use of mobile banking apps has surged in recent years, with many customers preferring to use their smartphones for banking transactions. As a result, banks are investing in the development of robust mobile banking apps to cater to this demand. Integration of AI and Automation: Banks are increasingly using artificial intelligence (AI) and automation to streamline their operations and improve the customer experience. Chatbots and virtual assistants, for example, can provide customers with quick and personalized responses to their queries. Greater Emphasis on Data Analytics: Banks are using data analytics to gain insights into customer behavior and preferences. By analyzing customer data, banks can develop targeted marketing campaigns and offer personalized recommendations to customers. Expansion of Digital Payment Options: The growth of digital payment options such as mobile wallets and peer-to-peer (P2P) payment apps is driving the evolution of multichannel banking. Banks are partnering with fintech companies to offer these services and stay competitive in the market. Adoption of Blockchain Technology: Banks are exploring the use of blockchain technology to improve security, transparency, and efficiency in their operations. For example, blockchain can be used to facilitate cross-border payments and reduce the need for intermediaries. 7. Future Scope With advancements in technology, financial institutions can continue to offer new and innovative channels to improve the customer experience. The use of artificial intelligence and chatbots is expected to increase, allowing customers to interact with their bank through voice and text commands. The integration of internet of things (IoT) devices with banking channels is another area of potential growth. For instance, customers could use their smartwatches to make payments or check account balances. Additionally, blockchain technology has the potential to revolutionize the way banks handle transactions, reducing the risk of fraud and improving the speed and efficiency of transactions. As financial institutions continue to adapt to the changing needs and preferences of their customers, multichannel banking will play a crucial role in delivering a seamless and personalized customer experience.

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Future of Banking: Examining Components of Digital Banking

Article | July 13, 2022

Contents 1. Evolution of Banking: From Brick-and-mortar to Digital 2. Multichannel Banking and Self-service Solutions 3. Demystifying Retail, Business and Corporate Banking 4. Mobile Banking: Payment Processing Overhaul 4.1 Overview of Fintech Companies in Banking Industry 5. Technology Trends in Digital Banking 6. Digital Transformation in Banking 6.1 Authentic User Experience 6.2 Blockchain Technology 6.3 Personalized Technology Services 7. Digital Banking Platforms Reaching out to SMBs 8. Future Aspects of Digital Banking Solutions 1. Evolution of Banking: From Brick-and-mortar to Digital Digital banking has transformed the traditional banking landscape and brought about a paradigm shift in the way individuals and businesses manage their finances. The cumbersome and time-consuming nature of financial transactions that involved physical visits to bank branches and long queues for basic tasks like account opening and money transfers is now a thing of the past. Between 2017 and 2021, 9% of all branch locations closed down, a loss of around 7,500 branches, according to the non-profit National Community Reinvestment Coalition (NCRC). (Source: Bankrate) With the digitization of banking, there has been a shift toward a cashless economy, with net and mobile banking gaining popularity over physical cash. With digital banking solutions like UPI, internet banking, and mobile banking, customers can access global transaction banking services directly from their own platforms, enabling seamless transactions anytime, anywhere. 2. Multichannel Banking and Self-Service Solutions The shift from traditional brick-and-mortar banking to digital banking has become ubiquitous, making self-service approaches in digital banking solutions vital for customers. These options allow customers to access banking solutions using software resources without human intervention, enabling them to conduct transactions such as checking account balances, making online transfers and withdrawals, paying bills, loan installments, exchanging currencies, and overall managing wealth with ease. Such solutions can be accessed through FAQs, chatbots, customer support portals, and other similar resources. The scope of self-service technology also encompasses internet banking and online shopping. Although the first and most successful self-service solution introduced by banks worldwide was the automated teller machine (ATM), the concept has now been extended to include a variety of digital banking platforms and applications. 3. Demystifying Retail, Business and Corporate Banking Digital banking services and products consist of three main sub-categories: Retail banking, Business banking, and Corporate banking. Retail banking, also referred to as consumer banking or personal banking, is a form of banking that offers financial services specifically to individual customers instead of businesses. It enables customers to effectively manage their finances, access credit facilities, and securely deposit their funds. Business banking refers to a company's financial transactions with a specialized institution that offers tailored financial services such as business loans, credit, savings accounts, and checking accounts, exclusively designed for corporate entities rather than individuals. This type of banking is conducted by a dedicated business banking division within a bank, which solely caters to the financial needs of commercial organizations. Corporate banking entails the provision of financial services to sizable corporations and multinational enterprises, which includes an array of offerings such as cash management, trade finance, corporate lending, and treasury services. With the advent of digital corporate banking, businesses can now effectively manage their financial transactions, process payments, and gain access to various financial tools and resources via digital platforms, ensuring improved efficiency and convenience. 4.Mobile Banking: Payment Processing Overhaul Mobile banking allows remote access to a wide range of banking services. Mobile app simplifies our lives by letting bank and other financial institution users check account balances, pay bills, transfer money, manage investments, and apply for loans with just a few clicks. Mobile banking alerts promote smart financial management, provide customization options, and enable easy monitoring for suspicious activity. A Chase Bank study revealed that 87% of consumers use their bank's mobile app monthly. Some features of a digital banking platform: Transfer money to friends and family within minutes via the ‘Manage Payee’ option on mobile banking apps. Clear utility bills via banks linked with UPI-enabled apps on your phone instead of standing in long queues outside gas stations with cash. Open Demat accounts online via the KYC process and manage all investments, deposits, and stocks in one place. Open bank accounts by uploading documents online; skip visiting banks and filling out forms. Get online assistance from banks 24/7 through chatbots and support systems. Mobile banking enables smooth functioning and boosts transparency in accessing financial data. Check account balances anytime without the need for passbook slips. Mobile banking apps provide customers with innumerable loan options, with banks deducting loan amounts from accounts on a fixed date via the ‘AutoPay’ option. 4.1 Overview of Fintech Companies in Banking Industry Here are some leading digital banking platforms catering to the needs of financial institutions: Alkami Technology: It is a major developer of cloud-based digital banking solutions for financial institutions in the United States. Its solutions enable users to clients their businesses with confidence, react to changing circumstances swiftly, and build vibrant digital communities. The company provides a range of services, including retail banking and business banking, digital account opening, loan origination, and multi-payment fraud protection solutions to assist clients in their transformation. It is dedicated to empowering its clients and supporting them in achieving their goals. Numerated: It is a fast-growing fintech that streamlines the origination process for business banking products. Over 400,000 businesses and 30,000 financial institution associates have processed $50 billion in lending using Numerated. The platform is used by financial institutions with a combined $1 trillion in assets, including Bremer Bank, Dollar Bank, Eastern Bank, MidFirst Bank, People's United Bank, Seacoast Bank, and others. The company has been recognized for its work as one of 2020's Top 250 FinTechs by CB Insights and 2021's Best Overall Business Lending Company by FinTech Breakthrough. Zoot Enterprises: It is a global leader in providing advanced origination, acquisition, and decision management solutions to financial institutions. Its cloud-based platforms offer flexibility for specific business needs, including loan origination, fraud detection, and data acquisition. Zoot enables clients to access hundreds of cutting-edge data sources in real time, delivering decisions in milliseconds. Its origination solution streamlines loan processing, providing powerful tools and robust integrations that reduce data entry, accelerate loan processing times, and avoid costly errors. Geezeo: The company delivers enriched digital banking experiences, processing, and augmenting transactions for over 500 financial institutions. Its insights enhance the overall customer experience, seamlessly integrating within online and mobile banking environments while allowing financial institutions to maintain ownership of their personal financial management (PFM) brand. It focuses on technology solutions that engage audiences with enriched data and offers expertise in digital banking, marketing, and technology. TurnKey Lender: It is a global leader in Unified Lending Management (ULM). Its intelligent software products automate the entire lending process, including traditional and alternative lending, SME financing, grant management, money lending, leasing, trade finance, in-house financing, and more. With customers in over 50 countries, TurnKey Lender is gaining traction as a pioneer in AI software development for lenders in regions like the United States, APAC, and the EU. The company’s solutions are used by all types of lenders, including large/mid-size banks, digital lenders, multi-finance companies, trade finance operators, traditional and non-traditional lenders, and telecoms. 5. Technology Trends in Digital Banking Banking technology is rapidly evolving. Advanced technologies like AI and ML will enable banks to analyze large data sets in real time and offer personalized solutions to customers. The market size of the global digital banking platform was valued at USD 20.8 billion in 2021 and is expected to expand at a CAGR of 20.5% from 2022 to 2030. (Source: Grand View Research) The increasing digital savviness of the global population is prompting the adoption of technological advancements. However, some individuals are still in an adaptive mode due to a lack of time and knowledge. AI and ML technologies enable banks to analyze large amounts of data, make informed decisions through predictive analysis, and improve lending patterns by analyzing consumer spending patterns. 6.Digital Transformation in Banking Financial institutions must leverage big data to automate business processes and reduce costs in light of falling interest rates and banking fees coupled with rising consumer demands. Adopting artificial intelligence, cloud technology, and automation in modernizing their applications could enable banks to develop omnichannel products, services, and capabilities, ultimately improving the user experience. Now, let's examine digital transformation in the banking industry: 6.1 Authentic User Experience (UX) Banks must share genuine customer experiences to retain loyalty. To achieve this, they must embrace the latest trends, technologies, and well-designed UX. 6.2Blockchain Technology To improve customer satisfaction, banks must reduce the intermediaries between them and their customers. This can be accomplished through increased transparency using blockchain technology, enabling untrusted parties to agree on a shared database and eliminating the need for transaction intermediaries. 6.3 Personalized Technical Services Key points about the benefits of personalized services such as automation, AI, and cloud computing in the banking industry: Automation minimizes human intervention and reduces errors, resulting in faster and more efficient service. AI helps banks predict outcomes based on past data, such as identifying fraud and making customer recommendations. Cloud computing enables banks to adopt new business models and create secure applications that meet regulatory requirements. About 27% of Americans use an online-only bank. Of those at online-only banks, 88% reported they are satisfied with the bank’s services. Meanwhile, only 66% of consumers using traditional banks report being satisfied with them. (Source: Bankrate) 7. Digital Banking Platforms Reaching Out to SMBs Digital banking platforms have revolutionized business operations by providing enhanced convenience and adaptability. Fintech firms have customized their platforms to meet the unique needs of small and medium-sized businesses (SMBs), offering mobile apps that facilitate financial management, transaction processing, and access to a range of financial tools and services at all times and from any location. The following is a list of notable digital banking applications that have garnered significant popularity over time: Betterment: It is an online financial advisor that offers personalized, fiduciary advice for retirement planning, building wealth, and achieving financial goals. By utilizing advanced algorithms and technology, it offers automated investment services that are tailored to each client's unique investment objectives and risk tolerance. The platform offers a diverse range of investment options, low fees, tax-efficient investing, and access to financial advisors. Betterment's mission is to make investing accessible and affordable to everyone, with a user-friendly online platform that is easy to use and offers high-quality investment advice. Mercury: It is a startup-focused banking platform that provides a comprehensive range of financial services tailored to companies of any size or stage. The platform offers free checking and savings accounts, debit and credit cards, domestic and international wire transfers, treasury and venture debt, and other essential financial products, all with an intuitive user experience. In addition to its suite of banking services, Mercury also provides vibrant community programs that offer founders the resources, advice, and connections needed to build successful companies. Bluevine: It is a financial technology company that specializes in providing working capital financing solutions tailored to small and medium-sized businesses (SMBs) in the United States. With a suite of financing products, including invoice factoring, lines of credit, and term loans, Bluevine enables SMBs to secure the necessary funding to drive growth and expansion. The company's platform is designed to facilitate a seamless lending experience, with streamlined applications and fast approvals that can be completed in as little as 10 minutes. Novo: New York-based fintech firm, Novo offers digital banking services to small businesses in the United States. Its suite of products includes mobile check deposit, online bill pay, and debit card issuance for employees. The company has also integrated with popular small business software tools such as QuickBooks and Xero, providing businesses with greater financial management capabilities. Relay: Relay is an online banking and money management platform dedicated to giving America's small businesses the tools they need to grow and gain visibility into their finances. The company recognizes that traditional banking services often underserve small businesses. As a result, it has built a platform that gives entrepreneurs the power to control their cash flow by giving them a clear picture of their income and expenses. 8. Future Aspects of Digital Banking Solutions As technology continues to advance, the traditional banking system is expected to undergo significant changes in the coming decades, with neobanks rapidly gaining popularity among tech-savvy customers for their personalized services. These digital fintech companies, often referred to as 'challenger banks', operate without physical branches and offer a range of attractive services, blurring the line between traditional banking and financial systems. As a result, retail banks may adopt an omnichannel approach and leverage the robust infrastructure of fintech enterprises to enhance the customer experience.

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Why Payments-as-a-Service is the first choice for FIs

Article | July 13, 2022

The pace of change within the global payment’s technology space is still at full speed with no sign of slowing down. While traditional incumbents have until recently taken comfort in their size and decades of dominance, new digital-only challenger banks are ramping up and making a huge impact on the global financial landscape.

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BIG TECH IN FINANCE: A DEEP DIVE INTO THE FUTURE OF FINTECH

Article | February 10, 2020

The following article looks at Big Tech and its impact on the financial services sector. Whilst competition from small fintech startups will certainly take away some market share from traditional banks, the impact of “GAFA” could be huge. The fintech movement did more than unbundle banking and its core services — it spurred financial inclusion across Asia, increased overall economic growth, and made significant inroads into the finance value chain. The born-digital companies brought technology to the forefront, attacking the traditional risk-averse sector from various points — digital payments, insurance, P2P lending, and investment management, among other avenues.

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CORE BANKING, FINTECH

Transforming B2B Customer Experience with Multichannel Banking Solutions

Article | March 28, 2023

Contents 1. Introduction 2. Maximizing Revenue: Cross-Selling and Upselling Strategies 3. Optimizing B2B Operations: Multichannel Banking and Cash Management Solutions 3.1 Digitizing Cash Management in Multichannel Banking: Key Imperatives 4. Leveraging Data Analytics for Multichannel Banking Optimization 5. Striking Balance between Convenience and Security 6. Multichannel Banking Evolution: Trends and Insights 7. Future Scope 1. Introduction Integrating multichannel banking solutions for a seamless customer experience remains a challenge in today’s digital era as financial institutions and banks are expected to provide services through ATMs, online banking, mobile, and in-branch. To boost efficiency and profitability, adopting multichannel payment processing is crucial. Technology enables merchants to process payments from all channels using a single account, thus, eliminating the need for multiple merchant IDs. Consolidating online sales into one location streamlines business processes, reduces card network fees, and leads to significant cost savings. 2. Maximizing Revenue: Cross-selling and Upselling Strategies Banks and financial institutions can effectively promote their multiple products and services to customers based on their needs, behavior, or demographics. Cross-selling and upselling techniques can encourage customers to hold multiple products, which can lead to business growth, new client acquisition, and increased customer lifetime value. Cross-selling involves offering related products or services to existing customers, such as promoting credit cards and internet banking to savings or current account holders. On the other hand, upselling involves increasing the amount invested in an existing or additional product. Both techniques can significantly boost sales, and revenue, and help achieve business objectives. 3. Optimizing B2B Operations: Multichannel Banking and Cash Management Solutions The evolving demands of corporate clients, rising competition from fintech companies, and the emergence of cutting-edge technologies are providing banks with a distinct prospect to revamp their cash management services and capabilities. 3.1 Digitizing Cash Management in Multichannel Banking: Key Imperatives Unlocking the Benefits of Collaboration Fintechs are becoming highly sought-after collaborators due to their product innovation, which enables banks to offer new and compelling services, solutions, and products that aid in attracting and retaining cash management clients. Tech & Alliances for Dynamic Cash Ecosystem Using innovative technologies and services, a cash management approach focuses on delivering cash efficiency and effectiveness to clients. New alliances and data-driven insights create a thriving ecosystem. Omnichannel Architecture In an omnichannel world, architecture plays a crucial role in delivering a seamless customer experience. While the traditional multichannel approach offers diverse touchpoints, it can also lead to a sub-optimal customer experience. Harnessing Real-time and Predictive Analytics In the realm of cash management, banks are increasingly relying on predictive analytics to mitigate risks, underwrite loans, and detect fraud. However, the potential advantages of real-time analytics for both cash management customers and the banks that cater to them are even more extensive. Integrate Cloud Services Compared to conventional decentralized cash management systems, cloud-based systems offer a greater degree of process and control uniformity in all scenarios, bolstering their resilience against potential capacity limitations stemming from factors such as remote work setups, cyber threats, and sudden surges in transaction volume. 4. Leveraging Data Analytics for Multichannel Banking Optimization Data-driven organizations are 23 times more likely to acquire customers, 6 times more likely to retain those customers, and 19 times more likely to be profitable (Source: McKinsey Global) Using data analytics, banks can gain insights into customer behavior, preferences, and patterns across channels. This helps identify customer needs, optimize channel usage, and personalize the banking experience. Predictive analytics can proactively offer relevant solutions to customers through their preferred channels, improving satisfaction. Banks can also optimize channel offerings by identifying the most effective channels for different customer segments, such as mobile banking for younger customers and branches for older customers. 5. Striking Balance between Convenience and Security Multichannel banking has revolutionized the way customers interact with their banks. With the advent of digital banking, customers can now carry out a wide range of transactions using multiple channels such as mobile apps, online banking, ATMs, and branches. While this has made banking more convenient, it has also created new security challenges for banks. Here are some key considerations that banks should keep in mind when implementing a multichannel banking strategy: Multi-factor Authentication: Multi-factor authentication is a crucial security measure that can help prevent unauthorized access to customer accounts. Banks can implement multi-factor authentication by requiring customers to provide two or more authentication factors such as a password, fingerprint, or facial recognition. Fraud Detection and Prevention: Banks should have robust fraud detection and prevention systems in place to identify and prevent fraudulent transactions. These systems should be designed to detect suspicious activities such as large withdrawals, multiple failed login attempts, and transactions from unusual locations. Encryption: Encryption is a critical security measure that can protect sensitive data such as customer account information and transaction details. Banks should ensure that all customer data transmitted through their multichannel banking platforms is encrypted to prevent interception by hackers. Training and Education: Banks should provide regular training and education to customers on how to use their multichannel banking platforms securely. This can include educating customers on how to create strong passwords, recognizing and reporting phishing scams, and using public Wi-Fi safely. Customer Support: Banks should have robust customer support systems in place to help customers with any issues related to their multichannel banking platforms. This can include providing support through multiple channels such as phone, email, and live chat. 6. Multichannel Banking Evolution: Trends and Insights As financial institutions continue to adjust to the ever-changing needs and preferences of their customers, it is imperative to remain informed about the latest trends and insights in multichannel banking. These critical trends and insights have played a pivotal role in shaping its evolution: Rise of Mobile Banking: The use of mobile banking apps has surged in recent years, with many customers preferring to use their smartphones for banking transactions. As a result, banks are investing in the development of robust mobile banking apps to cater to this demand. Integration of AI and Automation: Banks are increasingly using artificial intelligence (AI) and automation to streamline their operations and improve the customer experience. Chatbots and virtual assistants, for example, can provide customers with quick and personalized responses to their queries. Greater Emphasis on Data Analytics: Banks are using data analytics to gain insights into customer behavior and preferences. By analyzing customer data, banks can develop targeted marketing campaigns and offer personalized recommendations to customers. Expansion of Digital Payment Options: The growth of digital payment options such as mobile wallets and peer-to-peer (P2P) payment apps is driving the evolution of multichannel banking. Banks are partnering with fintech companies to offer these services and stay competitive in the market. Adoption of Blockchain Technology: Banks are exploring the use of blockchain technology to improve security, transparency, and efficiency in their operations. For example, blockchain can be used to facilitate cross-border payments and reduce the need for intermediaries. 7. Future Scope With advancements in technology, financial institutions can continue to offer new and innovative channels to improve the customer experience. The use of artificial intelligence and chatbots is expected to increase, allowing customers to interact with their bank through voice and text commands. The integration of internet of things (IoT) devices with banking channels is another area of potential growth. For instance, customers could use their smartwatches to make payments or check account balances. Additionally, blockchain technology has the potential to revolutionize the way banks handle transactions, reducing the risk of fraud and improving the speed and efficiency of transactions. As financial institutions continue to adapt to the changing needs and preferences of their customers, multichannel banking will play a crucial role in delivering a seamless and personalized customer experience.

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CORE BANKING

4 Trends Powering the Digital Banking Revolution

Article | July 13, 2022

Contents 1. Evolution of Banking: From Brick-and-mortar to Digital 2. Multichannel Banking and Self-service Solutions 3. Demystifying Retail, Business and Corporate Banking 4. Mobile Banking: Payment Processing Overhaul 4.1 Overview of Fintech Companies in Banking Industry 5. Technology Trends in Digital Banking 6. Digital Transformation in Banking 6.1 Authentic User Experience 6.2 Blockchain Technology 6.3 Personalized Technology Services 7. Digital Banking Platforms Reaching out to SMBs 8. Future Aspects of Digital Banking Solutions 1. Evolution of Banking: From Brick-and-mortar to Digital Digital banking has transformed the traditional banking landscape and brought about a paradigm shift in the way individuals and businesses manage their finances. The cumbersome and time-consuming nature of financial transactions that involved physical visits to bank branches and long queues for basic tasks like account opening and money transfers is now a thing of the past. Between 2017 and 2021, 9% of all branch locations closed down, a loss of around 7,500 branches, according to the non-profit National Community Reinvestment Coalition (NCRC). (Source: Bankrate) With the digitization of banking, there has been a shift toward a cashless economy, with net and mobile banking gaining popularity over physical cash. With digital banking solutions like UPI, internet banking, and mobile banking, customers can access global transaction banking services directly from their own platforms, enabling seamless transactions anytime, anywhere. 2. Multichannel Banking and Self-Service Solutions The shift from traditional brick-and-mortar banking to digital banking has become ubiquitous, making self-service approaches in digital banking solutions vital for customers. These options allow customers to access banking solutions using software resources without human intervention, enabling them to conduct transactions such as checking account balances, making online transfers and withdrawals, paying bills, loan installments, exchanging currencies, and overall managing wealth with ease. Such solutions can be accessed through FAQs, chatbots, customer support portals, and other similar resources. The scope of self-service technology also encompasses internet banking and online shopping. Although the first and most successful self-service solution introduced by banks worldwide was the automated teller machine (ATM), the concept has now been extended to include a variety of digital banking platforms and applications. 3. Demystifying Retail, Business and Corporate Banking Digital banking services and products consist of three main sub-categories: Retail banking, Business banking, and Corporate banking. Retail banking, also referred to as consumer banking or personal banking, is a form of banking that offers financial services specifically to individual customers instead of businesses. It enables customers to effectively manage their finances, access credit facilities, and securely deposit their funds. Business banking refers to a company's financial transactions with a specialized institution that offers tailored financial services such as business loans, credit, savings accounts, and checking accounts, exclusively designed for corporate entities rather than individuals. This type of banking is conducted by a dedicated business banking division within a bank, which solely caters to the financial needs of commercial organizations. Corporate banking entails the provision of financial services to sizable corporations and multinational enterprises, which includes an array of offerings such as cash management, trade finance, corporate lending, and treasury services. With the advent of digital corporate banking, businesses can now effectively manage their financial transactions, process payments, and gain access to various financial tools and resources via digital platforms, ensuring improved efficiency and convenience. 4.Mobile Banking: Payment Processing Overhaul Mobile banking allows remote access to a wide range of banking services. Mobile app simplifies our lives by letting bank and other financial institution users check account balances, pay bills, transfer money, manage investments, and apply for loans with just a few clicks. Mobile banking alerts promote smart financial management, provide customization options, and enable easy monitoring for suspicious activity. A Chase Bank study revealed that 87% of consumers use their bank's mobile app monthly. Some features of a digital banking platform: Transfer money to friends and family within minutes via the ‘Manage Payee’ option on mobile banking apps. Clear utility bills via banks linked with UPI-enabled apps on your phone instead of standing in long queues outside gas stations with cash. Open Demat accounts online via the KYC process and manage all investments, deposits, and stocks in one place. Open bank accounts by uploading documents online; skip visiting banks and filling out forms. Get online assistance from banks 24/7 through chatbots and support systems. Mobile banking enables smooth functioning and boosts transparency in accessing financial data. Check account balances anytime without the need for passbook slips. Mobile banking apps provide customers with innumerable loan options, with banks deducting loan amounts from accounts on a fixed date via the ‘AutoPay’ option. 4.1 Overview of Fintech Companies in Banking Industry Here are some leading digital banking platforms catering to the needs of financial institutions: Alkami Technology: It is a major developer of cloud-based digital banking solutions for financial institutions in the United States. Its solutions enable users to clients their businesses with confidence, react to changing circumstances swiftly, and build vibrant digital communities. The company provides a range of services, including retail banking and business banking, digital account opening, loan origination, and multi-payment fraud protection solutions to assist clients in their transformation. It is dedicated to empowering its clients and supporting them in achieving their goals. Numerated: It is a fast-growing fintech that streamlines the origination process for business banking products. Over 400,000 businesses and 30,000 financial institution associates have processed $50 billion in lending using Numerated. The platform is used by financial institutions with a combined $1 trillion in assets, including Bremer Bank, Dollar Bank, Eastern Bank, MidFirst Bank, People's United Bank, Seacoast Bank, and others. The company has been recognized for its work as one of 2020's Top 250 FinTechs by CB Insights and 2021's Best Overall Business Lending Company by FinTech Breakthrough. Zoot Enterprises: It is a global leader in providing advanced origination, acquisition, and decision management solutions to financial institutions. Its cloud-based platforms offer flexibility for specific business needs, including loan origination, fraud detection, and data acquisition. Zoot enables clients to access hundreds of cutting-edge data sources in real time, delivering decisions in milliseconds. Its origination solution streamlines loan processing, providing powerful tools and robust integrations that reduce data entry, accelerate loan processing times, and avoid costly errors. Geezeo: The company delivers enriched digital banking experiences, processing, and augmenting transactions for over 500 financial institutions. Its insights enhance the overall customer experience, seamlessly integrating within online and mobile banking environments while allowing financial institutions to maintain ownership of their personal financial management (PFM) brand. It focuses on technology solutions that engage audiences with enriched data and offers expertise in digital banking, marketing, and technology. TurnKey Lender: It is a global leader in Unified Lending Management (ULM). Its intelligent software products automate the entire lending process, including traditional and alternative lending, SME financing, grant management, money lending, leasing, trade finance, in-house financing, and more. With customers in over 50 countries, TurnKey Lender is gaining traction as a pioneer in AI software development for lenders in regions like the United States, APAC, and the EU. The company’s solutions are used by all types of lenders, including large/mid-size banks, digital lenders, multi-finance companies, trade finance operators, traditional and non-traditional lenders, and telecoms. 5. Technology Trends in Digital Banking Banking technology is rapidly evolving. Advanced technologies like AI and ML will enable banks to analyze large data sets in real time and offer personalized solutions to customers. The market size of the global digital banking platform was valued at USD 20.8 billion in 2021 and is expected to expand at a CAGR of 20.5% from 2022 to 2030. (Source: Grand View Research) The increasing digital savviness of the global population is prompting the adoption of technological advancements. However, some individuals are still in an adaptive mode due to a lack of time and knowledge. AI and ML technologies enable banks to analyze large amounts of data, make informed decisions through predictive analysis, and improve lending patterns by analyzing consumer spending patterns. 6.Digital Transformation in Banking Financial institutions must leverage big data to automate business processes and reduce costs in light of falling interest rates and banking fees coupled with rising consumer demands. Adopting artificial intelligence, cloud technology, and automation in modernizing their applications could enable banks to develop omnichannel products, services, and capabilities, ultimately improving the user experience. Now, let's examine digital transformation in the banking industry: 6.1 Authentic User Experience (UX) Banks must share genuine customer experiences to retain loyalty. To achieve this, they must embrace the latest trends, technologies, and well-designed UX. 6.2Blockchain Technology To improve customer satisfaction, banks must reduce the intermediaries between them and their customers. This can be accomplished through increased transparency using blockchain technology, enabling untrusted parties to agree on a shared database and eliminating the need for transaction intermediaries. 6.3 Personalized Technical Services Key points about the benefits of personalized services such as automation, AI, and cloud computing in the banking industry: Automation minimizes human intervention and reduces errors, resulting in faster and more efficient service. AI helps banks predict outcomes based on past data, such as identifying fraud and making customer recommendations. Cloud computing enables banks to adopt new business models and create secure applications that meet regulatory requirements. About 27% of Americans use an online-only bank. Of those at online-only banks, 88% reported they are satisfied with the bank’s services. Meanwhile, only 66% of consumers using traditional banks report being satisfied with them. (Source: Bankrate) 7. Digital Banking Platforms Reaching Out to SMBs Digital banking platforms have revolutionized business operations by providing enhanced convenience and adaptability. Fintech firms have customized their platforms to meet the unique needs of small and medium-sized businesses (SMBs), offering mobile apps that facilitate financial management, transaction processing, and access to a range of financial tools and services at all times and from any location. The following is a list of notable digital banking applications that have garnered significant popularity over time: Betterment: It is an online financial advisor that offers personalized, fiduciary advice for retirement planning, building wealth, and achieving financial goals. By utilizing advanced algorithms and technology, it offers automated investment services that are tailored to each client's unique investment objectives and risk tolerance. The platform offers a diverse range of investment options, low fees, tax-efficient investing, and access to financial advisors. Betterment's mission is to make investing accessible and affordable to everyone, with a user-friendly online platform that is easy to use and offers high-quality investment advice. Mercury: It is a startup-focused banking platform that provides a comprehensive range of financial services tailored to companies of any size or stage. The platform offers free checking and savings accounts, debit and credit cards, domestic and international wire transfers, treasury and venture debt, and other essential financial products, all with an intuitive user experience. In addition to its suite of banking services, Mercury also provides vibrant community programs that offer founders the resources, advice, and connections needed to build successful companies. Bluevine: It is a financial technology company that specializes in providing working capital financing solutions tailored to small and medium-sized businesses (SMBs) in the United States. With a suite of financing products, including invoice factoring, lines of credit, and term loans, Bluevine enables SMBs to secure the necessary funding to drive growth and expansion. The company's platform is designed to facilitate a seamless lending experience, with streamlined applications and fast approvals that can be completed in as little as 10 minutes. Novo: New York-based fintech firm, Novo offers digital banking services to small businesses in the United States. Its suite of products includes mobile check deposit, online bill pay, and debit card issuance for employees. The company has also integrated with popular small business software tools such as QuickBooks and Xero, providing businesses with greater financial management capabilities. Relay: Relay is an online banking and money management platform dedicated to giving America's small businesses the tools they need to grow and gain visibility into their finances. The company recognizes that traditional banking services often underserve small businesses. As a result, it has built a platform that gives entrepreneurs the power to control their cash flow by giving them a clear picture of their income and expenses. 8. Future Aspects of Digital Banking Solutions As technology continues to advance, the traditional banking system is expected to undergo significant changes in the coming decades, with neobanks rapidly gaining popularity among tech-savvy customers for their personalized services. These digital fintech companies, often referred to as 'challenger banks', operate without physical branches and offer a range of attractive services, blurring the line between traditional banking and financial systems. As a result, retail banks may adopt an omnichannel approach and leverage the robust infrastructure of fintech enterprises to enhance the customer experience.

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CORE BANKING

A Guide to Banking in the Metaverse: Part 1

Article | July 13, 2022

The pace of change within the global payment’s technology space is still at full speed with no sign of slowing down. While traditional incumbents have until recently taken comfort in their size and decades of dominance, new digital-only challenger banks are ramping up and making a huge impact on the global financial landscape.

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BIG TECH IN FINANCE: A DEEP DIVE INTO THE FUTURE OF FINTECH

Article | February 10, 2020

The following article looks at Big Tech and its impact on the financial services sector. Whilst competition from small fintech startups will certainly take away some market share from traditional banks, the impact of “GAFA” could be huge. The fintech movement did more than unbundle banking and its core services — it spurred financial inclusion across Asia, increased overall economic growth, and made significant inroads into the finance value chain. The born-digital companies brought technology to the forefront, attacking the traditional risk-averse sector from various points — digital payments, insurance, P2P lending, and investment management, among other avenues.

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Practica Capital

Practica Capital is a venture capital (VC) firm investing in Baltic startups and high-growth businesses, which target national markets or have an ambition to become regional, international or global players. We offer a full range of VC financing from pre-seed to late seed/start-up, co-investments in round A and investments in SME’s expansion. Our team is a mix of investment, technology and entrepreneurial backgrounds. Founded in 2011 and run by investment professionals with previous pan-Baltic private equity and investment banking experience in BaltCap, Hanseatic Capital, Evli, SEB Enskilda, MP Investment Bank and entrepreneurs who exited their businesses. One of the founders and senior adviser Anatolijus Faktorovičius is a founder and former CEO of Viltechmeda, medical device producer sold to a NYSE-listed Moog Inc. (USA).

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CORE BANKING, FINTECH

DCI Onboards GoDeposits for BaaS Bank

PRnewswire | March 28, 2023

For 60 years, DCI, the privately-owned developer of core processing, digital banking, and Fintech processing solutions, has dedicated itself to the aggressive pursuit of the future. Through new technology releases, innovations, updates, and vendor integration, DCI continues to deliver the products and services which prove financially advantageous to BaaS banks and traditional processing institutions alike. The market onboarding of GoDeposits, a shining star for DCI banks, is further proof of this commitment. By successfully eliminating the need for middleware, GoDeposits eradicates the need for Fintechs and financial institutions to work around the core processor. Today, DCI's partners are empowered to track transactions through DCI, ruling out the once-essential demand for third-party involvement. No friction in the 90-second application, 100% compliance, all KYC, options for funding, and multi-branding—all through one instance of core and no middleware. This level of cost savings for Fintechs and income opportunities for banks is simply unprecedented. While most have only theorized about such a triumph, DCI got to work in the market, actualizing this vision. Through tried-and-true products and services, experienced staff, and a financially sound company, DCI has once again moved the needle for community banks seeking a forward-looking, customer-driven partner. DCI's President and CEO Sarah Fankhauser shares her excitement for this breakthrough, saying, "I couldn't be prouder of DCI and of our employees' ability to work together, continuously striving for excellence in the marketplace. DCI has been around for 60 years, but we have never stood still. As a community bank processor, we're fighting every day to save community banks and offer them the products and services necessary to compete with the big banks." Unlike its competitors, DCI shares no interest in reinventing old products, infusing VC money, or taking a product off the block to regroup, all while advertising something absent from the market itself. Instead, DCI's focus remains directed toward action, innovation, and ahead-of-the-curve achievement intended to best serve its customers. "There is no group of developers moving at warp speed like the DCI development team," says Tanna Faulkner, Senior Vice President of Digital Channels and Sales. "We are not getting to the future in banking, DCI is there. Now, watch us grow." About DCI DCI is the developer of the award-winning iCore360® core banking software, plus iCoreGO® digital banking and fintech processing solutions for community financial institutions nationwide, including those using other core platforms. DCI is privately owned by a group of bank clients, with several serving as board members and user group leaders. DCI also provides private ATM network/card management, FrontLine® teller software, custom analysis, risk/vendor management, and more. For additional information about DCI, visit www.datacenterinc.com or contact info@datacenterinc.com.

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FINANCIAL MANAGEMENT, FINTECH

Abrigo partners with Charm Solutions to launch AI-powered engine that accelerates SMB lending decisions

PRnewswire | March 24, 2023

Abrigo, the leading technology provider of compliance, credit risk, and lending solutions for financial institutions, today announced the launch of Abrigo Small Business Lending Intelligence. This lending decision and monitoring engine is powered by Charm Solutions, a provider of AI technology that helps financial institutions unlock the full potential of their data, identify growth opportunities, optimize operations, and improve financial decisions. According to FFIEC call report data, small business (SMB) loans made by banks in the U.S. grew to nearly 27 million in 2022. Many institutions have indicated that SMB is a continued, targeted area for growth in 2023, following the successful Paycheck Protection Program during COVID-19, which led many lenders to build or deepen relationships with SMBs in their communities. A barrier to growth for many institutions is efficiency. In a recent Abrigo survey, nearly 60% of financial institutions indicated that efficiency was the top challenge in small business lending. Abrigo Small Business Lending Intelligence is embedded into the Abrigo loan origination platform and provides real-time scorecards that include a loan risk rating score, probability of default, and details of how the score was calculated. Using Charm's dynamic models along with existing processes, institutions can improve their decision-making by incorporating an array of data sources and leveraging analytics to gain actionable insights. The engine leverages self-learning AI to continuously monitor a wide range of current and historical data, loan performance, accounting, and macroeconomic data from more than 1,200 institutions. Abrigo Small Business Lending Intelligence is transparent, providing institutions insight into the data and processes used for its scoring model. Abrigo Small Business Lending Intelligence also provides an early warning system alerting banks to changes that may impact an institution's entire loan portfolio before they become an issue. "By leveraging the power of automation and AI, financial institutions can provide the small businesses in their communities with the funds they need faster while ensuring they have the right risk management controls in place for their lending processes," said Ravi Nemalikanti, CTO of Abrigo. "We are very pleased to partner with Charm to develop this innovative solution that advances our mission to help communities thrive." "We are proud to power the Abrigo Small Business Intelligence platform with our proprietary AI-technology and help thousands of financial institutions make faster and better decisions to grow their SMB loan portfolio profitably and move the economy forward," said Jacob Malmborg, CEO of Charm Solutions. About Charm Solutions Charm Solutions is an AI software platform used by leading lending institutions to quickly and transparently analyze, decision, and monitor SMB loans, and by SMBs to gain insights into their financial health and use Charm's proprietary SMB Score™ report to receive actionable recommendations and efficiently secure the best financing alternatives to grow their business. Learn more at www.charmsolutions.ai About Abrigo Abrigo is a leading provider of compliance, credit risk, lending, and asset/liability management solutions and services that help financial institutions thrive. Abrigo accelerates growth, increases client efficiency, and improves customer experience with an easy-to-use and expansive platform. We ensure customer success with our award-winning client service team, advisory expertise, and innovative technology. With a network of 2,400+ FIs, Abrigo offers unique opportunities for insightful peer benchmarks and best practices. Visit abrigo.com to learn more. Follow Abrigo on social media using @WeAreAbrigo.

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CORE BANKING, FINTECH

Wirex and Novatti Launch Australia's Next-gen Multicurrency Card

Wirex and Novatti | March 15, 2023

Wirex, a major crypto payments platform, announced on March 14, 2023, that it has teamed up with Novatti, a card issuer, to issue cards directly to Australians. This partnership could enable more than 20 million individuals to use their groundbreaking multicurrency card daily. Wirex's pioneering crypto-enabled debit card allows around 5 million users to seamlessly buy, hold, exchange, and sell over 12 traditional and 130 cryptocurrencies at 80 million locations. Recently, Wirex added the TAUD (True AUD) stablecoin to its app as part of its most significant token release. Wirex's partnership with Novatti will allow direct card issuance to Australian users. The collaboration brings advantages such as higher spending limits, up to 8% instant rewards, no FX or maintenance fees, international ATM withdrawals, fiat-to-fiat exchanges, affordable top-ups, and exclusive merchant offers. Strict KYC checks and AML requirements will be in place for all transactions and processes. After experiencing significant success in the UK and EEA, Wirex expanded to APAC in 2019 and has since become their most rapidly growing region. With one of the world's highest levels of crypto adoption, Australia has become an important market for Wirex. The partnership with Novatti will be a bridge between the traditional economy and the digital economy. This will allow Wirex to take advantage of this growing market. Svyatoslav Garal, Managing Director of APAC at Wirex, remarked, "As we grow our operations in Australia, we've strategically chosen to partner with a trusted Australian-headquartered company, Novatti, to issue cards. Being able to expand our product offerings will enable more users to continue taking advantage of the benefits of forward-thinking payments." (Source – Cision PR Newswire) This comes after a recent announcement that Wirex would be able to try out new blockchain projects, bring in cutting-edge solutions, and improve the customer experience. About Wirex Wirex is a regulated digital payment platform that has revolutionized the digital payments industry by developing the world's first crypto-enabled payment card in 2015. Co-founded by Pavel Matveev and Dmitry Lazarichev in 2014, the company aims to make the digital economy accessible to all. With more than 5 million customers and the ability to grow into new areas, including the US, Wirex can use innovative solutions to get people to move toward a cashless society. In 2021, it expanded its offering into the CeFi and DeFi sectors to keep up with the growth of the metaverse. About Novatti Novatti is an award-winning Australian fintech with over 20 years of experience and partnerships across 58 countries. As an end-to-end payments provider, the company offers a range of solutions, including omnichannel payment acceptance, subscription billing, banking via International Bank of Australia Pty Ltd., Visa prepaid/debit/gift cards, digital wallets, cross-border payments, and alternate payments such as Flexepin vouchers and wallets, Novatti BillPay, AUDD (Australian dollar stablecoin), and other payment innovations.

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CORE BANKING, FINTECH

DCI Onboards GoDeposits for BaaS Bank

PRnewswire | March 28, 2023

For 60 years, DCI, the privately-owned developer of core processing, digital banking, and Fintech processing solutions, has dedicated itself to the aggressive pursuit of the future. Through new technology releases, innovations, updates, and vendor integration, DCI continues to deliver the products and services which prove financially advantageous to BaaS banks and traditional processing institutions alike. The market onboarding of GoDeposits, a shining star for DCI banks, is further proof of this commitment. By successfully eliminating the need for middleware, GoDeposits eradicates the need for Fintechs and financial institutions to work around the core processor. Today, DCI's partners are empowered to track transactions through DCI, ruling out the once-essential demand for third-party involvement. No friction in the 90-second application, 100% compliance, all KYC, options for funding, and multi-branding—all through one instance of core and no middleware. This level of cost savings for Fintechs and income opportunities for banks is simply unprecedented. While most have only theorized about such a triumph, DCI got to work in the market, actualizing this vision. Through tried-and-true products and services, experienced staff, and a financially sound company, DCI has once again moved the needle for community banks seeking a forward-looking, customer-driven partner. DCI's President and CEO Sarah Fankhauser shares her excitement for this breakthrough, saying, "I couldn't be prouder of DCI and of our employees' ability to work together, continuously striving for excellence in the marketplace. DCI has been around for 60 years, but we have never stood still. As a community bank processor, we're fighting every day to save community banks and offer them the products and services necessary to compete with the big banks." Unlike its competitors, DCI shares no interest in reinventing old products, infusing VC money, or taking a product off the block to regroup, all while advertising something absent from the market itself. Instead, DCI's focus remains directed toward action, innovation, and ahead-of-the-curve achievement intended to best serve its customers. "There is no group of developers moving at warp speed like the DCI development team," says Tanna Faulkner, Senior Vice President of Digital Channels and Sales. "We are not getting to the future in banking, DCI is there. Now, watch us grow." About DCI DCI is the developer of the award-winning iCore360® core banking software, plus iCoreGO® digital banking and fintech processing solutions for community financial institutions nationwide, including those using other core platforms. DCI is privately owned by a group of bank clients, with several serving as board members and user group leaders. DCI also provides private ATM network/card management, FrontLine® teller software, custom analysis, risk/vendor management, and more. For additional information about DCI, visit www.datacenterinc.com or contact info@datacenterinc.com.

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FINANCIAL MANAGEMENT, FINTECH

Abrigo partners with Charm Solutions to launch AI-powered engine that accelerates SMB lending decisions

PRnewswire | March 24, 2023

Abrigo, the leading technology provider of compliance, credit risk, and lending solutions for financial institutions, today announced the launch of Abrigo Small Business Lending Intelligence. This lending decision and monitoring engine is powered by Charm Solutions, a provider of AI technology that helps financial institutions unlock the full potential of their data, identify growth opportunities, optimize operations, and improve financial decisions. According to FFIEC call report data, small business (SMB) loans made by banks in the U.S. grew to nearly 27 million in 2022. Many institutions have indicated that SMB is a continued, targeted area for growth in 2023, following the successful Paycheck Protection Program during COVID-19, which led many lenders to build or deepen relationships with SMBs in their communities. A barrier to growth for many institutions is efficiency. In a recent Abrigo survey, nearly 60% of financial institutions indicated that efficiency was the top challenge in small business lending. Abrigo Small Business Lending Intelligence is embedded into the Abrigo loan origination platform and provides real-time scorecards that include a loan risk rating score, probability of default, and details of how the score was calculated. Using Charm's dynamic models along with existing processes, institutions can improve their decision-making by incorporating an array of data sources and leveraging analytics to gain actionable insights. The engine leverages self-learning AI to continuously monitor a wide range of current and historical data, loan performance, accounting, and macroeconomic data from more than 1,200 institutions. Abrigo Small Business Lending Intelligence is transparent, providing institutions insight into the data and processes used for its scoring model. Abrigo Small Business Lending Intelligence also provides an early warning system alerting banks to changes that may impact an institution's entire loan portfolio before they become an issue. "By leveraging the power of automation and AI, financial institutions can provide the small businesses in their communities with the funds they need faster while ensuring they have the right risk management controls in place for their lending processes," said Ravi Nemalikanti, CTO of Abrigo. "We are very pleased to partner with Charm to develop this innovative solution that advances our mission to help communities thrive." "We are proud to power the Abrigo Small Business Intelligence platform with our proprietary AI-technology and help thousands of financial institutions make faster and better decisions to grow their SMB loan portfolio profitably and move the economy forward," said Jacob Malmborg, CEO of Charm Solutions. About Charm Solutions Charm Solutions is an AI software platform used by leading lending institutions to quickly and transparently analyze, decision, and monitor SMB loans, and by SMBs to gain insights into their financial health and use Charm's proprietary SMB Score™ report to receive actionable recommendations and efficiently secure the best financing alternatives to grow their business. Learn more at www.charmsolutions.ai About Abrigo Abrigo is a leading provider of compliance, credit risk, lending, and asset/liability management solutions and services that help financial institutions thrive. Abrigo accelerates growth, increases client efficiency, and improves customer experience with an easy-to-use and expansive platform. We ensure customer success with our award-winning client service team, advisory expertise, and innovative technology. With a network of 2,400+ FIs, Abrigo offers unique opportunities for insightful peer benchmarks and best practices. Visit abrigo.com to learn more. Follow Abrigo on social media using @WeAreAbrigo.

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CORE BANKING, FINTECH

Wirex and Novatti Launch Australia's Next-gen Multicurrency Card

Wirex and Novatti | March 15, 2023

Wirex, a major crypto payments platform, announced on March 14, 2023, that it has teamed up with Novatti, a card issuer, to issue cards directly to Australians. This partnership could enable more than 20 million individuals to use their groundbreaking multicurrency card daily. Wirex's pioneering crypto-enabled debit card allows around 5 million users to seamlessly buy, hold, exchange, and sell over 12 traditional and 130 cryptocurrencies at 80 million locations. Recently, Wirex added the TAUD (True AUD) stablecoin to its app as part of its most significant token release. Wirex's partnership with Novatti will allow direct card issuance to Australian users. The collaboration brings advantages such as higher spending limits, up to 8% instant rewards, no FX or maintenance fees, international ATM withdrawals, fiat-to-fiat exchanges, affordable top-ups, and exclusive merchant offers. Strict KYC checks and AML requirements will be in place for all transactions and processes. After experiencing significant success in the UK and EEA, Wirex expanded to APAC in 2019 and has since become their most rapidly growing region. With one of the world's highest levels of crypto adoption, Australia has become an important market for Wirex. The partnership with Novatti will be a bridge between the traditional economy and the digital economy. This will allow Wirex to take advantage of this growing market. Svyatoslav Garal, Managing Director of APAC at Wirex, remarked, "As we grow our operations in Australia, we've strategically chosen to partner with a trusted Australian-headquartered company, Novatti, to issue cards. Being able to expand our product offerings will enable more users to continue taking advantage of the benefits of forward-thinking payments." (Source – Cision PR Newswire) This comes after a recent announcement that Wirex would be able to try out new blockchain projects, bring in cutting-edge solutions, and improve the customer experience. About Wirex Wirex is a regulated digital payment platform that has revolutionized the digital payments industry by developing the world's first crypto-enabled payment card in 2015. Co-founded by Pavel Matveev and Dmitry Lazarichev in 2014, the company aims to make the digital economy accessible to all. With more than 5 million customers and the ability to grow into new areas, including the US, Wirex can use innovative solutions to get people to move toward a cashless society. In 2021, it expanded its offering into the CeFi and DeFi sectors to keep up with the growth of the metaverse. About Novatti Novatti is an award-winning Australian fintech with over 20 years of experience and partnerships across 58 countries. As an end-to-end payments provider, the company offers a range of solutions, including omnichannel payment acceptance, subscription billing, banking via International Bank of Australia Pty Ltd., Visa prepaid/debit/gift cards, digital wallets, cross-border payments, and alternate payments such as Flexepin vouchers and wallets, Novatti BillPay, AUDD (Australian dollar stablecoin), and other payment innovations.

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