FinTech has been an incredible boon to people around the world during the recent pandemic, and has allowed millions of people who previously had no access to banking or lending to leave the 1.7 billion unbanked. Companies are being founded not just in traditional finance and tech hubs like San Francisco, New York and London but in cities like Tel Aviv, Stockholm, Hangzhou and even sub-Saharan Africa.

This comes at a time when there is also a growing problem of cybercrime. 1% of global GDP, or $1 trillion dollars, was lost due to cybercrime in 2020, an increase of 50% when compared to 2018. Despite having a reputation for having the very highest levels of security outside of the military, financial institutions are not exempt – banks and insurers pay on average $18.5 million annually to combat cybercrime, around 40% more than other kinds of business. The reason is obvious: financial companies have direct access to their customers’ money. This is also the case for FinTechs, who also deal with sensitive financial information but who in many cases are much smaller companies than established banks, meaning that they may not have the same ability to deploy bank-grade security systems.

This is a particular problem for companies based outside of traditional tech hubs, and doubly so for start-ups in the developing world. There is already a significant a skills shortage in the cybersecurity industry, and this is much more pronounced outside of the English-speaking, developed world – somebody with cybersecurity experience knows that they can often make more in Silicon Valley than they can in their home country. That leaves the areas that could be producing much-needed innovation for under-banked populations without the security that they need. This particularly the case with encryption technology – this is a complex area that is often vital for keeping customer data safe but can usually only be accessed through expensive hardware security modules that require extensive expertise to use correctly and to be compliant with regulatory regimes around the world.

So how can start-up FinTechs around the world access the same encryption technology as their big brothers in more developed areas?

Cloud-based encryption bridges the gap

The use of cloud-based technology has accelerated during the recent pandemic, especially among FinTechs, 55% of which say that they use multiple cloud platforms. This technology has clear advantages for smaller companies: it scales well in terms of both cost and capacity, can be deployed quickly, tested in sandbox environments and is often much easier to use than extensive data centres or homebrew solutions.

Cloud-based services allow much smaller companies to deploy encryption, PCI standards and tier-one payment security, all handled by experts via a fully managed service. This means that start-ups can focus on their core business knowing that security and compliance is taken care of, which in today’s cybersecurity climate will be a major relief for the company and their customers.

To learn more, visit: www.myhsm.com/webinar-breaking-down-the-barriers-to-cloud-based-payments-solutions/

Yesterday, Mastercard announced the creation of a global startup engagement program dedicated to digital assets, blockchain, and cryptocurrency companies, a step which it called a continuation of its “digital assets work.” The program has launched with seven start-ups, which the company aims to work with to “expand and accelerate innovation around digital asset technology and make it safer and easier for people and institutions to buy, spend and hold cryptocurrencies and digital assets."

“Mastercard isn’t simply buying into the concept of digital assets, they’re working almost as though they’re an incubator in order to help the digital assets space expand. That says a lot about where their strategy team is. One of the best ways to expand your footprint in a segment is to help develop start-ups, which have an advantage of being nimble and as able to quickly respond to trends. Funding those initiatives allows a corporation easy access to integrate that new technology into their own, either as a partner or a target for an eventual acquisition. If Mastercard is investing here, they understand the long-term advantages of playing in the digital assets space,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.

According to the Mastercard statement, “Founders of the digital asset and blockchain companies participating in the new Start Path program aim to address a host of pain points including asset tokenization, data accuracy, digital security and seamless access between the traditional and digital economy. Each startup is focused on solving a unique industry challenge and, throughout the program, will leverage Mastercard’s expertise to support the continued growth and development of their solutions.”

“Right now, as the industry continues to emerge and more central banks plan to develop and beta test CBDCs, the indications that digital assets will be a transformative innovation have never been greater. Blockchain has proven its mettle. It isn’t a flash in the pan. Amazon has just announced that it’s hiring a Digital Currency and Blockchain Product Lead. Mastercard is making arrangements. Despite what a handful of naysayers might say, digital assets are the future of finance,” noted Gardner.

According to Mastercard Executive Vice President of New Digital Infrastructure and Fintech Jess Turner, “Mastercard has been engaging with the digital currency ecosystem since 2015. As a leading technology player, we believe we can play a key role in digital assets, helping to shape the industry, and provide consumer protections and security. Part of our role is to forge the future of cryptocurrency, and we’re doing that by bridging mainstream financial principles with digital assets innovations.”

“We’ve had this discussion ad nauseum. Those that can, must. I’ve been speaking for years, saying that we must work together to shape the industry we want to build. While we wait for regulators to develop and mainstream guidelines, it is up to us to do our part to encourage proper security and consumer protections within the digital assets space,” Gardner said.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“While, according to their release, more than 250 startups have participated in their Start Path program since 2014, it is cool to see Mastercard make an official acknowledgment of the digital assets space. Digital assets have completely upended how the world is going to relate to finance. Every time a major corporate player makes an announcement like this, they are, in essence, prosecuting the case in favor of a blockchain future,” said Gardner.

nCino, Inc., a pioneer in cloud banking and digital transformation solutions for the global financial services industry, today revealed new research on the views of senior executives within financial institutions on their ongoing digital transformation journeys. All surveyed executives plan to increase spend or volume of digital transformation projects over the next 12 months, highlighting the importance for the sector.

“As the banking industry continues to evolve, this research highlights several emerging themes that are accelerating or playing a role in the transformation of both new and traditional financial services,” said Jennifer Geary, General Manager - EMEA at nCino. “We’re excited to see how technology is providing a foundation for change, and that investments are being planned to improve processes that can benefit both consumers and financial institutions.”

Transformation to meet customer demands

More than three quarters (78%) of respondents believe their organisation is unprepared to react and adapt to unforeseen challenges. Covid-19 is one such example which the executives surveyed argue negatively affected their ability to service customers. As a result, over one in three (35%) executives are focused on improving their organisation’s resilience to future disruption through implementing new agile technology.

Over half (52%) of consumers now demand a more personalised experience from their bank and, as a result, financial institutions have had to re-evaluate how they tailor the customer journey. However, almost half (47%) of executives say they do not have access to the right information to deliver an exceptional customer experience, with almost two in five (39%) struggling to unify their customer data across platforms and channels.

It is therefore unsurprising that a third (33%) of senior executives expect to increase spend on digital transformation projects that focus on improving customer retention rates. In addition, 31% of executives say establishing a strong customer experience is a significant reason for implementing artificial intelligence and machine learning tools.

Investment in transformation set to rise

Transforming their organisation through new agile technology is of paramount importance to all executives surveyed, whereby all state they are increasing investment over the next year.  Investment levels, however, vary. Over a fifth (22%) are looking to increase spending between £1 million and £5 million over the next 12 months. A slightly larger number of respondents (28%) are expecting a £500k-£1m increase. Despite spend increasing across the industry, cost pressures are the main barrier organisations face when looking to implement new technology.

Speed at the heart of transformation projects

Improving the speed of delivery of products is the main factor (40%) driving increased spend in digital transformation projects. With customer satisfaction now a top priority and the demand for loans rising during the pandemic, it is paramount that organisations overcome delays in updating their product offerings. For example, when making lending decisions for customers, over a quarter (26%) of senior executives struggle to make timely decisions. The CIBLS loan scheme, which supported U.K. businesses to stay afloat throughout the pandemic, highlighted why it is so important for the loan approval process to be fast to benefit both the economy and customer satisfaction.

Transformation benefits are not clear

There is a lack of understanding of the benefits new technology can bring to financial institutions; in fact, 31% of respondents state this is the main barrier for implementing it within their organisation. It is therefore unsurprising that over a quarter (28%) of senior executives feel there is a lack of internal knowledge or expertise around the benefits of new technology and therefore, limited internal desire for new projects.

Transform for good

Nearly half (44%) of financial organisations are adopting technology to respond to environmental, social and corporate governance (ESG) trends. In fact, a third of executives (33%) are looking to increase spend on digital transformation to improve their organisations’ ESG efforts. Other areas organisations are focusing on include the reduction of paper consumption (42%), travel (36%), and branches (27%). Over the last year, it has become evident that some financial institutions can easily continue the service provided to customers through replacing paper and regular branch visits with digital channels. This has had a positive impact on the environment and therefore, is being implemented into ESG initiatives. While only 37% of organisations are establishing carbon neutral goals, less than 1% noted they were doing nothing in response to the pressures of ESG.

“Financial institutions need to prioritise between short-term and long-term objectives and work to align their products and services with their clients’ expectations and needs. Having the right strategy is important, but so is having the right partner and technology that can offer the flexibility and agility needed to react, adapt and continue to delight clients through any unforeseen challenges or opportunities,” concludes Geary.

Planck, an AI-based data platform for commercial insurance, announced today it has partnered with Duck Creek Technologies (Nasdaq: DCT), a leading provider of SaaS insurance core systems, to offer integrated data insights and analytics that provide an accurate view of key insurance risk parameters. An integration between Planck and the Duck Creek Platform gives insurers the ability to drive service and underwriting excellence, by connecting the most up-to-date data insights for the small to medium business sector into their existing workflows and processes.

“Planck has solved the insurance industry’s long-standing need for accurate, real-time business insurance insights,” said Ernie Feirer, Head of U.S. Business at Planck. “By partnering with Duck Creek, we facilitate the delivery of those insights to the software platform where carriers manage risk.”

Planck draws on a wide range of sources for data including online images, text, videos, reviews, and public records, to generate risk-related commercial insights using just a company name and address. Planck’s holistic approach to manufacturing data provides an accurate view of key insurance influencing parameters. Carriers, MGAs, and brokers leverage Planck’s platform for underwriting new and renewing policies, instant quoting, lead generation, and claims.

“Planck’s platform uses AI to generate insights that can make commercial underwriting much faster and more predictable, resulting in the best outcomes for insurers,” said Elizabeth Del Ferro, Vice President, Partner GTM at Duck Creek Technologies. “Their solution is a fantastic value-add for carriers, and Duck Creek is thrilled to welcome them into our rapidly-growing partner ecosystem.”

Planck and their team of data experts provide insurance-related insights and analytics for more than 50 major business segments including restaurants, construction, retail and manufacturing, and multiple insurance lines including workers compensation, errors & omissions, and general liability. The Planck data integration package now available on the Duck Creek Content Exchange sends business entity inputs from the Duck Creek Platform to Planck's API, enabling transmission of up-to-date and accurate underwriting metrics to streamline commercial insurance processes, including submission prefilling & validation, underwriting recommendations, premium audit, renewals, and more, to increase gross written premium while reducing loss and expense ratios. For commercial insurers using the Duck Creek Platform, the Planck partnership offers a simple and convenient avenue to easier and more accurate underwriting powered by AI, while using a single API call across these multiple use cases.

The pandemic has taken a financial toll on people and families across the UK; research commissioned by Ofwat as part of the #ListenCareShare campaign shows that 41% of customers are worried about money over the next six months.

But accessing financial support isn't easy; most customers have to fill out multiple Income and Expenditure assessments (I&Es) before a payment plan can be set up, while simultaneously, creditors struggle to validate the information from customers' various I&Es. On both sides, the current system is inefficient and costly.

This is where IE Hub comes in; they are building an Income and Expenditure Network, a service that connects customers with multiple creditors digitally, storing their I&E information and making this easily shareable with multiple creditors in a simple click. Their Income and Expenditure Network is increasing engagement and operational readiness in the field of credit and collection. Marking a simple and more efficient process for creditors and reducing stress for busy, worried customers.

IE Hub puts efficiency at the heart of the process. Customers can update their information via a secure portal, which provides a single hub from which customers can contact and manage multiple loans from different creditors. For creditors, IE Hub makes it easy to source relevant customer data quickly and simply.

"July 19th may have marked the next phase of lockdown easing but many are still counting the costs of the pandemic, having faced reduced income, increased borrowing, or redundancy," a company spokesperson for IE Hub has said. "We are yet to see the full impact in collections but with so many customers set to struggle, collections operations need to gear up in readiness. At IE Hub we are working with our partners to increase capacity and improve the customer experience."

To access a free trial and find out more about how IE Hub could work for you, email Mark@iehub.co.uk to contact Mark McElvanney, the Sales Director at IE Hub.

VizyPay, an award-winning leader in the payment processing industry for small businesses, today announced the promotion of Kyle McCann to Director of Business Development. The brand new position will focus on driving the business forward through the expansion of vendor partnerships.

McCann started at VizyPay as a sales agent in 2017 and eventually took on a Technical Supervisor role in 2018. For this, he focused on merchant support and point of sale (POS) technology troubleshooting. After four years combined in these roles, the company created the Director of Business Development position for McCann to leverage his background in customer service and technology to seek out new business opportunities and identify emerging fintech trends.

“I’m very honored to have this role with VizyPay, as it touches multiple areas of the business,” McCann explained, “I truly believe in what we are doing here and have big plans to grow the company. It’s more than a fintech company, it’s a unique vision, culture and life that I’ve adopted here, and I cannot wait to hit the ground running and continue to build on what we’ve already started.”

In this new role, McCann works to identify new vendor partnerships while overseeing existing ones. The position focuses on drawing insights from vendor partners to identify fintech industry trends and assess if they are suited for VizyPay’s customers. This also includes gathering feedback and analytics from the company’s merchant customers on how the products and services are performing. McCann’s goal is to take these insights and feedback to boost VizyPay’s offerings—whether that be through adopting a new vendor and its technology or tweaking existing proprietary technologies. Ultimately, he ensures all proprietary and vendor technology fits within the existing business model, is fiscally responsible and gets the job done for all the small business customers.

McCann also works closely with VizyPay’s fintech development team to tackle revamping existing or adopting new technologies for the company’s customers. He acts as the main point of insight for which product features would benefit the company most while alleviating internal costs. This collaboration aligns the company internally and prepares for further scaling and to meet long-term goals. Furthermore, McCann oversees which of the products and services are being signed-on and promoted on a company-wide level through coordination with the marketing department.

“I knew a role like this would be integral to the progression of our business,” said VizyPay’s CEO and co-founder Austin Mac Nab, “The role was built with Kyle in mind, as he shows a great talent of being forward-thinking and caring for our customers and vendor partners. He’s really working to alleviate any stressors and ensure the business partnerships and offerings are running smoothly from all ends.”

To enhance its global asset management clients’ decision-making processes through data visualization and analysis, Broadridge Financial Solutions, Inc. (NYSE: BR), a global Fintech leader, today announced it will work with Snowflake, the Data Cloud company, to enable clients to seamlessly consolidate and analyze trading and portfolio data in the cloud in a way they couldn’t before. 

Snowflake’s integrated data platform provides customers with data storage, processing and analytics solutions in the cloud. Enhancing Broadridge’s trading and portfolio management solution with Snowflake technology will enable Broadridge clients to bring together data from Broadridge, client, and third-party systems into Snowflake’s Data Cloud for analysis and direct access, and provide a complete picture of their data for a more informed decision-making process. This augments Broadridge’s existing data solutions that provide clients access to individualized self-service analytics, customizable digital reports and interactive dashboards. 

“Data aggregation has continued to be a pain-point for asset managers. There is a strong and ever-growing need to interact with increasingly complex data sets from many sources with speed and efficiency, and our relationship with Snowflake will help our clients overcome these data challenges,” said Eric Bernstein, President of Broadridge Asset Management Solutions. “This is a continuation of Broadridge’s data strategy and strengthens our leadership position as a technology partner that can empower data-driven results for the asset management industry.” 

“We are excited to support Broadridge as they enable asset management clients with a seamless data experience,” said Matt Glickman, VP of Customer Product Strategy, Financial Services, at Snowflake. “With Broadridge as a part of the Snowflake Data Cloud, asset managers will be able to work more efficiently and can have their data work harder for them, allowing for greater collaboration and better results.”