ARE CUSTOMERS CHECKING OUT TOO EARLY?
Moshe Winegarten, Chief Revenue Officer, Ecommpay
IMPROVING TRANSACTION SUCCESS RATES WITH PAYMENT ORCHESTRATION
Brady Harris, Chief Executive Officer, IXOPAY
THE POWER OF PEOPLE IN FINTECH’S FUTURE
Stephanie Clarke, Head of International Strategy and Corporate Development, Broadridge Financial Solutions
Unantenne, Global Head of Delivery, Wise Platform
Question: What are our contributors NOT talking about?
Answer: the impact of the most important geopolitical shift in at least 80 years.
If you have cast even a cursory glance over this edition of Financial IT, you could be forgiven for thinking that it is – well – just another edition of Financial IT.
As ever, our contributors come from a variety of organisations and have key messages about how the world could and should be different at the intersection of technology and financial services.
So, what are those messages? Diversity, equity and inclusivity (DEI) are too important to ignore. Even relatively simple changes can improve the success rate of e-commerce transactions. Similarly, it is a relatively straightforward matter to make cross-border payments easier. Open Banking, regulatory changes and compliance represent major business opportunities. Usage of Artificial Intelligence by banks should be much larger than it is currently.
Yet this at a time of an enormous geopolitical shift. Since the inauguration of Donald Trump as President of the United States on 20 January, his administration has returned to ‘America First’ policies last seen prior to the beginning of World War II in 1939.
Here at Financial IT, we would not claim to be geopolitical experts – even though both the United States and the former Soviet Union have long been well represented among our people. Nevertheless, we suggest that the Trump administration has ended the world order that has been in place since the Potsdam Conference of July-August 1945.
This is a much larger change than the fall of the Berlin Wall, the end of Communism in Central and Eastern Europe and the dissolution of the Soviet Union in 1989-1991. It is a much more sudden – and possibly bigger – change than the rise of China as an economic and geopolitical superpower since 1978. The return to ‘America First’ has also been a lot more sudden than the global technological revolution that began with the commercialisation of the Personal Computer in the mid-1980s.
It remains to be seen how other governments respond to a new order where the US government is committed to ‘America First’ policies. By the end of this year, we may have to consider the impacts of ‘Europe First’, ‘China First’, ‘Rest-of-the-Indo-Pacific First’ and ‘Latin America First’ policies. There are many medium-sized countries with several geopolitical options open to them.
Muzaffar Karabaev, Founder, Financial IT
Put another way, we could be returning not to 1945-48, but to 1910 – a world prior to World War I when there were several competing empires that practised ‘Us First’ policies.
All of this gives rise to two questions. First, why are none of our contributors talking about geopolitics? Second, what do the events that have taken place since midJanuary mean for companies that supply technology to the financial services sector and for the banks and insurance companies who buy that technology?
We would suggest that the drive for lower costs, better user experience, easier flow of capital across borders, search for innovative technology and embracing of progressive regulation are all positive trends that remain intact. Individually, each of these is dwarfed by the geopolitical shift that has taken place in the last 40 days or so (these words being written at the end of February 2025). Together, though, they represent some challenge and enormous opportunity for the companies that contribute to and subscribe to Financial IT. Collectively, the changes are still greater than the return to ‘America First’. This is particularly true of the opportunity. In other words, our contributors correctly see ‘business as usual’ – and have had very little to say about geopolitics.
If anything, recent events have caused the opportunity aspect to grow. Higher tariffs will make the trade in goods and services harder and more expensive than previously. A number of governments and economies will need to sustain – in very short order – massive increases in defence spending. No-one is advocating the reintroduction of capital controls. Anything that can be done to make money move between people and countries (and within countries) more efficiently and cheaply will be welcome.
Therefore, we make two predictions with confidence. One is that there will continue to be a cacophony of comment –both informed and uninformed – on recent decisions made by the US government. The other is that the latest changes are very good news for most of the players at the intersection of financial services and technology.
Muzaffar
Karabaev
Founder, Financial IT
Although Financial IT has made every effort to ensure the accuracy of this publication, neither it nor any contributor can accept any legal responsibility whatsoever for consequences that may arise from errors or omissions or any opinions or advice given. This publication is not a substitute for professional advice on a specific transaction.
No part of this publication may be reproduced, in whole or in part, without written permission from the publisher. Entire contents copyrighted. Financial IT is a Finnet Limited publication.
ISSN 2050-9855
Finnet Limited
137 Blackstock Road, London, N4 2JW, United Kingdom
+44 (0) 208 819 32 53
Publisher Chris Principe chris.principe@financialit.net
Editor Suhair Keshodia suhair@financialit.net
Research
Abdu Turdialiyev Jamshid Samatov
Production/Design
Timur Urmanov
PM & Marketing
Nilyufar Sodikova nilyufar.sodikova@financialit.net
Founder Muzaffar Karabaev
The arrival of cryptocurrency has begun a new era of financial power. Crypto offers many opportunities for both individuals and traditional banks. Traditional banks are challenged by the digital age. Crypto presents a solution that can enhance operations, boost customer experience, and create a more efficient banking system. By integrating cryptocurrencies based on blockchain technology into their frameworks, banks can provide an easier experience for their customers.
A significant advantage of cryptocurrencies is that they can facilitate faster transactions. Traditional banks have lengthy processes for sending. receiving
and settling payments. These processes are more onerous when different fiat currencies that need to cross borders are involved. Crypto transactions can be processed in minutes, even seconds. This transaction speed means that we no longer have to be trapped by the lengthy bank procedures. The impact on us daily of the time for payroll, bill payments, and personal transactions can be instantaneous. This efficiency means that real-time transactions are fast, fluid and convenient. This is banking on our terms where we are not trapped by the whims of banks.
The increase of speed through crypto means lower costs, savings that we can
all enjoy. Traditional banking is full of hidden fees and exorbitant transaction charges. This increases significantly with international transactions. Most cryptocurrencies have minimal or no fees, allowing us to keep more of our money. This makes it easier for people do their financial activities without incurring high costs. As the cost of financial services decreases economic opportunities expand, providing financial stability and increased earning possibilities.
The transparency and security of blockchain technology increases the level of between all parties. Using decentralized ledgers allows for real-time verification, transactions tracking and user privacy. This is a barrier that reduces fraud, money laundering, terrorist financing and other criminal activities. Consumers have a safer environment in which to manage their finances. Banks can and do use this technology to improve their own operations. This leads to stronger relationships between bank and customer. Seeing transactions from end to end, moving from payer to payee, provides visibility of the financial process.
Financial education must be a requirement in the school curriculum from the young ages. I understand the benefits of algebra, biology and English literature to develop good thinking strategies. The
importance of financial literacy grows every day. The children of today are digital natives. They are born interacting with technology from as early as 2 years old. The phone is a critical tool for everyone daily lives. Today this starts early in childhood and they are able to send, receive and spend money without every seeing a dollar bill or a quarter. Cryptocurrencies are embraced by our young digital natives. It is critical to enjoying a successful financial future. Educational initiatives and in-school programs are needed early on so that our youth grows up understanding what an interest rate is, loan terms, payback period, cash conversion cycle, cash flow, investing, etc.
With the use of credit and debit cards there is little need for printing currency or minting coins. These are expensive mediums of exchange that losing their role in day-to-day life.
This leads us to the importance of crypto to our daily lives in this new financial landscape. With financial education mandatory starting in early school years, our youth will use financial tools to make informed decisions. This will increase wealth generation and entrepreneurial opportunities. This shift will boost individual prosperity as well as economic growth that a greater number of people can participate in financial markets.
The potential of cryptocurrencies is to create an inclusive financial landscape. For those who have not been part of the traditional banking systems, crypto services their financial needs. The UNBANKED do not need banks or credit cards where their typically small incomes are eaten up by abusive fees. The UNBANKED only needs a way to pay and get paid. The issue for the banks and credit card companies is that their markets are saturated. Currently new customers come mainly from our youth as they reach the age for credit cards and loans. The banks and credit card companies see the approximately two billion that makes up the UNBANKED and can’t help but think of them as a new huge revenue steam of fees visible and hidden. It is criminal that these huge entities look to further reduce the UNBANKED incomes for their never-ending thirst for more profits. The people who can least afford it are marketed to relentlessly on how being banked will improve their lives. The truth is the UNBANKED communities do not
need bank accounts, credit cards or even credit history. These are all bank traps set to deplete people’s worth by making them believe that banks have their best interest at heart. The truth is that no bank has a heart and when they tell you that something they do is to protect you, it is a lie. Plain and simple, when you hear that you should immediately know that in no way are they protecting you, it is all about protecting themselves.
Crypto offers a way out of the bank traps. It is the pathway to financial independence. Crypto removes the barriers to entry, and gives access to new economic opportunities for millions of people and businesses. Crypto enables the paying and getting paid regardless of the time, day, location and bank rules. It is those bank rules that are in place for only one reason to protect the bank and limit your access to the money that you worked to earn.
In the future, crypto and blockchain technology bring real advancements in speed, accuracy, and privacy. Financial transactions will become more efficient through the use of smart contracts. Smart contracts will further automate processes, reduce human error and increase efficiencies. The security measures blockchains reduce the risk of breaches, and offer users a secure financial platform. Crypto allows individuals greater control of their personal data and financial information, reducing misuse that is part of today's digital landscape.
Crypto is integrating into the traditional banking systems, and the benefits are substantial. Faster transactions, lower costs, increased transparency, and enhanced financial literacy will bring a prosperous and inclusive future. The nature of crypto promises a simplified financial experience and the potential for rapid life improvements. This is a transformative era, and both the banks and consumers stand to gain in growth, innovation, and financial well-being.
Cryptocurrency has revolutionized the financial landscape. It pushes for the reassessment of traditional banking practices. Crypto has opened new expressway for financial transactions. Digital currencies present benefits to the traditional banking community for improving their operations. Cryptocurrencies is the way for all of us to be competitive as the world becomes increasingly digital.
by Chris Principe, Publisher, Financial IT
2 THE ELEPHANT IN THE ROOM
Muzaffar Karabaev, Founder, Financial IT
4 CRYPTO BENEFITS BANKING
Chris Principe, Publisher, Financial IT
8 FINTECH’S EDGE IS INCLUSION – NOT REGRESSION
Prasangi Unantenne, Global Head of Delivery, Wise Platform
10 ARE CUSTOMERS CHECKING OUT TOO EARLY?
Moshe Winegarten, Chief Revenue Officer, Ecommpay
12 IMPROVING TRANSACTION SUCCESS RATES WITH PAYMENT ORCHESTRATION
Brady Harris, Chief Executive Officer, IXOPAY
14 THE POWER OF PEOPLE IN FINTECH’S FUTURE
Stephanie Clarke, Head of International Strategy and Corporate Development, Broadridge Financial Solutions
16 HOW TO FACILITATE MORE ACCESSIBLE CROSS-BORDER PAYMENTS
Sean Devaney, VP, Strategy for Banking and Financial Markets, CGI
18 EMBRACING TECHNOLOGY FOR BUSINESS GROWTH
Steve Paul, Deputy Chief Financial Officer, Equals Money
20 BALANCING INNOVATION AND COMPLIANCE: THE PATH TO SUSTAINABLE GROWTH IN FINTECH
Dal Sahota, Director of Trusted Payments, LSEG Risk Intelligence
24 BREAKING BARRIERS IN FINANCE: HOW OPEN BANKING IS TRANSFORMING ACCESS AND OPPORTUNITY
Holly Coventry, Open Banking Lead, American Express
26 2025 IN BANKING: AI, THE GREAT MIGRATION, AND SPOTLIGHT ON REGIONAL GROWTH
Lewis Ide, Vice President, 10x Banking
28 HOW THE REGULATORY LANDSCAPE IS SHAPING THE FUTURE OF FINTECH
Andrew Yates, Co-Founder and CEO, FullCircl, an nCino Company
30 DORA DROPS THE HAMMER: PRIVATE EQUITY’S NEW COMPLIANCE REALITY
Iyran Clunis, Head of EMEA Operations, Allvue Systems
32 NAVIGATING THE UNKNOWN: SMARTER RISK STRATEGIES FOR THE PAYMENTS INDUSTRY
Richard Wilkins, Chief Risk Officer, Cashflows
34 BOLIVIA: LAND OF OPPORTUNITIES
Dr. Marcelo Ortuste, Principal of the Ortuste Law Firm and Honorary Consul of the Republic of Armenia in the Plurinational State of Bolivia
36 HOW THE REGULATORY LANDSCAPE IS SHAPING THE FUTURE OF FINTECH
Graham McMillan, Redgate Software
38 NOT ALL MULES ARE BORN EQUAL
Jonathan Lamb, Senior Engagement Manager, LexisNexis Risk Solutions
Prasangi Unantenne is the Global Head of Delivery at Wise Platform, Wise’s global payments infrastructure for banks, financial institutions and enterprises around the world. Sangi leads the Presales and Delivery teams working closely with partners ensuring a strong product fit and quality implementation of our products. She has 15 years of international experience in financial services across a range of Product Management, Business Development, Delivery and Operations roles in both Issuing and Acquiring businesses.
Fintech has always prided itself on being the rebellious younger sibling of finance – faster, sharper, and willing to break the rules to build something better. And now, more than ever, it needs to hold true to this ethos, as companies look to roll back progress in bringing more voices to the leadership table.
According to a study by Cambridge University, women remain shockingly underrepresented in executive roles, holding just around 7% of founder positions, 18% of executive committee seats, and only 4% of CEO titles in top fintech firms. Meanwhile, findings show that in the broader financial services sector, women's presence in the C-suite has climbed to only 18% in 2023.
So, it’s clear that despite ongoing discussions about innovation and inclusion, the industry continues to allocate leadership roles within a biased, outdated structure, one where women remain significantly underrepresented. On top of this, companies have recently started to cut back on their diversity commitments, quietly pushing DEI initiatives to the back burner.
Fintech should know better. This industry thrives on fresh ideas, bold decisions and new ways of thinking. Not on outdated leadership models that leave half the talent pool untapped. It needs to be focused on building a financial ecosystem that works for everyone. And that means keeping women at the forefront of leadership – as a business priority.
The reason for this is that diversity in leadership isn’t just about fairness, it’s about results and driving success. A study by the Boston Consulting Group found that organisations with above-average diversity in their leadership reported greater innovation revenue and higher EBIT margins. Additionally, results from a research by Korn Ferry show that 87% of the time, diverse-by-design teams make better decisions than homogenous ones and are 70% more likely to capture new markets.
Evidently, it’s clear that companies with diverse leadership teams don’t just perform better.
They innovate faster, make smarter decisions and have a deeper understanding and empathy of customers across different markets.
So, how can fintech lead the way?
Fintech has made some progress in terms of increasing diversity and inclusion in recent years, but there’s still a long way to go, especially when it comes to women in leadership roles. So, now, more than ever, the industry must unite to drive structural change that ensures better inclusivity on a global scale. This means:
• Fixing the hiring and promotion pipeline: Expanding candidate pools, reducing bias in hiring processes and creating clear pathways for women to advance within organisations are crucial. This can include establishing and improving initiatives like dedicated
mentorship programmes, coaching and merit-based career maps.
• Eliminating outdated work structures: Many women leave the finance and tech sector due to inflexible workplace policies. Offering flexible career paths, paid parental leave and results-based performance metrics can help retain more female talent.
• Investing equally in what matters: Women-led fintech ventures receive a disproportionately low share of funding1. More efforts must be made to close this gap and provide equal access to capital.
• Redefining what leadership looks like: It’s time to rethink the common leadership personality traits, such as assertiveness and competitiveness. By also incorporating collaboration, adaptability and strategic risk-taking, companies can unlock a wider pool of talent and drive innovation.
The future of fintech is about embracing diversity of thought and experience regardless of gender. And fintech has a clear opportunity: build inclusive leadership by fostering an industry where women are empowered. This way, the industry can not only lead the way, but ensure a stronger, more innovative and inclusive financial future for everyone.
Moshe Winegarten, Chief Revenue Officer, Ecommpay
Joining Ecommpay in 2022 to scale the company’s robust and innovative products, Moshe is a global payments expert with extensive experience in FinTech across consumer and commercial banking and payments, for companies including Visa, Barclaycard and Accenture. His roles have spanned strategy, product, sales, business development, and customer engagement and management. An established thought leader within FinTech, Moshe has authored a number of papers, as well as spoken at numerous events around the world, promoting FinTech and payments innovation.
Simple modifications to the payment process can enhance conversions and foster customer loyalty, as explained by Moshe Winegarten, Chief Revenue Officer at Ecommpay.
In e-commerce, there is always potential to make improvements to conversion rates. Identifying where to begin and which changes will be most effective, however, can be challenging. A good starting point is understanding why drop-offs occur and tackling the friction occurring at that point in the checkout journey.
A recent Ecommpay study, conducted with IMRG and its retail community, delved into this issue, aiming to help online retailers optimise their checkout processes and enhance the customer journey. The findings are included in the report 'eCommerce Checkouts: UK Retailers Reveal Their Checkout Strategy and Performance,' along with actionable advice for payment professionals seeking to improve customer purchasing experiences, decrease basket abandonment and increase conversions.
The research showed that the average conversion rate is only 58%, highlighting significant room for improvement. Notably, single-page checkouts have a higher average conversion rate of 61% compared to 56% for multi-page checkouts. This indicates that simplicity and efficiency are crucial. But what friction points should merchants address to boost conversions?
Monitoring certain metrics will help merchants promptly identify and resolve issues. The conversion rate itself as well as the cart abandonment rate indicate how well the checkout supports transaction completion. Analysis of the conversion funnel, by tracking customer journeys step by step from adding items to the cart right up to the point where they finalise payment, will highlight exactly where drop offs, and therefore friction, occurs.
One significant finding identified in the Ecommpay study is that checkout abandonment typically occurs at nearly 90% through the payment completion process. By this point in the journey, customers have invested time to input their personal and delivery information. Abandonment at this late stage suggests a significant barrier exists. The stage of checkout typically taking place at this point is, of course, the payment. To enhance checkout conversion rates, online retailers should consider simplifying the process, increasing transparency, and providing a seamless user experience. A streamlined, efficient, user-friendly checkout can make all the difference.
One effective yet simple change that has proven effective is the introduction of a ‘try again’ button. This allows consumers to retry payment after a declined transaction without having to restart the entire checkout process. Our experience with Ecommpay clients shows that this can boost conversion rates from 2% to 4%. And for merchants operating in multiple countries, displaying prices in local currencies reduces confusion; adding locally recognised payment methods also gives customers confidence.
Other strategies include consolidating checkout elements (billing, shipping, payment, and review) onto a single page to minimise clicks and effort. This offers a faster and more positive experience. Similarly, reducing the amount of data customers must input manually by minimising personal detail fields and enabling autofill options, will speed up the process and create a smoother checkout experience.
The Ecommpay study found 59% of orders come from guest customers, so removing the requirement for new customers to create an account further reduces the time, clicks and data input required for a customer to complete a purchase, boosting
the likelihood of finalising the checkout. Express checkout options like Click to Pay or digital wallets including Apple Pay and Google Pay reduce friction still further by enabling purchases with just a few clicks. Transparency, clarity, and simplicity are key to removing payment barriers. Visual cues, such as a progress bar, can help manage expectations, while transparent shipping costs and a range of payment options and currencies reduce frustration and minimise drop-offs. For example, adding a currency choice to Ecommpay merchants’ checkouts increased success rates by an average of 8%. The checkout should also be accessible and user-friendly for all, including those with disabilities and those using mobile or desktop devices.
Adding a wider range of payment and express checkout options to the customer journey does not, however, have to increase the pressure on in-house resources. Onboarding, integration and account management for every payment method, currency and express checkout solution would be unsustainable for many retailers. Working with payment service providers (PSPs) will take away some of the pressure. However, the biggest difference comes when working with a PSP that offers a full-stack solution and dynamic checkout to optimise choice and flow of multiple payment methods.
If one provider can deliver a range of solutions via a single integration, it removes the need for a multitude of partnerships. Open banking, subscriptions, payment orchestration, global payments, express checkout, alternative payment methods can all be offered via one partnership, one integration, one account to manage. This also provides the e-commerce business with the capability to scale globally with access to a huge range of payment methods, whilst also benefitting from increased authorisation rates and drastically decreased transaction costs.
Failed transactions aren’t just a run-of-themill business headache. They create real frustration for customers and can quietly chip away at your bottom line.
But the good news? Success rates are not static, and payment processing doesn’t have to be a resource drain. By leveraging different tools and approaches to optimize transactions, businesses can transform payments into a competitive advantage.
Payment orchestration cuts through the mess of modern payments – fixing broken or outdated integrations, fine-tuning fraud screening, and streamlining checkout flows.
A multi-PSP (payment service provider) approach utilizing multiple payment methods and smart routing can address the problems of transaction failures and abandoned carts.
A strong transaction success rate (TSR) keeps revenue flowing smoothly. This metric measures the percentage of transactions that go through successfully, and you calculate it by dividing successful transactions by total attempts, then multiplying by 100.
A good target? That can depend on your business model, vertical, and customer base, but aiming for 95% is a great target. Even if that’s not where you are right now, just a small increase can have a big impact, especially for enterprise merchants processing billions of dollars. For example, if a business handles 500,000 transactions a month, bumping the TSR from 95% to 96% means 5,000 more completed payments.
Failed transactions can happen for a variety of reasons – whether it’s on the customer’s end, the bank or payment provider’s side, or due to a technical glitch. Some of the biggest culprits include:
1. Network errors or outages between payment systems and banks that lead to widespread transaction failures.
2. Fraud detection systems blocking legitimate transactions, impacting both customer experience and revenue.
3. Card declines due to insufficient funds, expired cards, or suspicious activity, which can increase customer churn.
4. Poor checkout experiences, such as excessive form fields or limited payment options, that result in cart abandonment.
5. Cross-border payment challenges, such as currency conversion issues or high decline rates that often stem from inadequate banking relationships or infrastructure.
Building a payment architecture that avoids all the tech hiccups and keeps customers happy can feel like an impossible feat. With so many payment providers and industry regulations to account for, it’s no wonder that transaction failures are so common.
That’s where payment orchestration steps in. This smart solution reduces declines by unifying disparate payment systems and dynamically routing transactions for the best
chances of success. Payment orchestration platforms offer a suite of tools designed to minimize disruptions and bring customers a smoother experience – such as:
1. Smart payment routing
Smart routing technology detects any outages, network issues, or processing restrictions, and automatically directs the transaction to the best PSP for a given transaction profile.
2. Automated card updates and retries
These advanced tools automatically update inactive cards and retry transactions, allowing businesses to keep sales current with minimal hassle.
3. Advanced fraud detection
Next-generation fraud screening tools use machine learning algorithms to cut down on false positives – transactions that are incorrectly labeled as fraudulent.
4. Support for more payment types
Because payment orchestration platforms use a multi-PSP strategy, businesses have access to a greater number of currencies and payment methods.
Improving transaction success rates is must for any business, especially for those with a global footprint. More successful payments mean better revenue, a smoother customer experience, and a stronger competitive position.
Payment orchestration is the key to making it happen. With an optimized payment tech stack in place, you’ll reap so much more than increased efficiency –you’ll scale faster, reduce churn, and create frictionless experiences that keep customers coming back.
Brady Harris, Chief Executive Officer, IXOPAY
Brady Harris, a visionary FinTech Executive, has over two decades of experience leading high-growth financial technology and SaaS companies. As the CEO appointed following the merger of IXOPAY with TokenEx, he is dedicated to advancing global payment solutions. Harris employs a hands-on leadership style, focusing on operational excellence and strategic growth initiatives. During his tenure at Dwolla and Payscape he oversaw significant increases in payment volumes and user engagement, and fostering cultures that prioritize agility, high performance, and alignment with core values. Additionally, his expertise in mergers, acquisitions, and scaling companies to successful exits is key as IXOPAY positions itself to become the one-stop payment industry solution. Harris's commitment is to not only enhance enterprise value but also to empower his teams and clients in the evolving digital payments landscape.
A fintech revolution is transforming financial services, reshaping markets, and driving unprecedented innovation across the globe. At the heart of this transformation lies the critical role of skilled professionals— individuals whose expertise and creativity fuel and drive both innovation and growth. As we look into 2025 and beyond, the intersection between technological advancement and human ingenuity becomes the lynchpin for navigating the rapidly evolving landscape of financial technology.
Amidst the wave of advancements such as quantum computing, artificial intelligence, and digital asset integration, talent stands out as the pivotal element that enables organisations to harness these innovations effectively. The ability to adapt and lead in this sector hinges on the skills, innovative thinking, and strategic insight of diverse teams. Broadridge is a forwardthinking fintech leader that understands the importance of empowering our workforce to embrace and leverage new technologies. By fostering environments that prioritise collaboration and continuous learning, we have ensured that our teams are equipped to utilise tools like AI and digital assistants to their fullest potential. This focus on people, in conjunction with technology, transforms workflows, enhances productivity, and drives overall growth.
In particular, organisations prioritising reskilling and upskilling are setting themselves apart. As technology evolves, so too must the competencies within the fintech sector. Companies investing in employee development not only remain competitive but cultivate a culture of innovation and adaptability. This commitment is essential as AI and automation become integral to business operations, demanding not just technical proficiency but also strategic oversight and creative problem-solving.
Simultaneously, fintech firms navigating regulatory changes rely heavily on their teams' expertise to ensure compliance and foster ethical growth. Professionals capable of interpreting and implementing complex rules, while utilising AI for enhanced compliance measures, are critical to establishing a trustworthy innovation environment. This proactive stance not only secures investor confidence but also builds a resilient framework where emerging technologies can flourish.
In the realm of digital assets and tokenisation, skilled individuals are pivotal in developing and adopting new financial instruments. Leaders who strike a balance between technological advancement and security pave the way for seamless integration of digital assets into mainstream finance, unlocking substantial economic potential. While technology provides powerful tools for transformation, it is the insights and creativity of talented professionals that drive meaningful change in the fintech landscape.
In conclusion, the future of fintech is inextricably linked to the strength of its workforce, with diversity and inclusivity playing pivotal roles in powering these trends. With International Women’s Day – March 8th – on the horizon, it’s also important to recognise that women are increasingly contributing to this transformation, driving innovation and enriching the industry with diverse perspectives that lead to more comprehensive and effective solutions. As we advance, focusing on nurturing, developing, and leveraging a diverse pool of talent will remain essential in shaping the industry’s trajectory. With the right blend of technology, expertise, and inclusivity, fintech firms are poised to navigate the complexities of a dynamic financial landscape, driving innovation and fostering growth in the years to come.
Stephanie Clarke, Head of International Strategy and Corporate Development, Broadridge Financial Solutions
Stephanie Clarke is Head of International Strategy and Corporate Development at Broadridge Financial Solutions, spearheading the execution of the company’s strategic initiatives while collaborating with the Mergers and Acquisitions team to enhance the international corporate development pipeline. Stephanie also drives the International Market Advocacy Platform strengthening the Broadridge brand and fostering industry growth. Previously Stephanie served as SVP within Broadridge’s Data and Analytics business, supporting Broadridge’s strategy to develop its data, analytics and intelligence solutions for asset managers globally.
Stephanie has been a driving force in defining the post-pandemic workplace, culture and cadence for Broadridge and is also co-chair of Broadridge’s Women’s Leadership Forum. Stephanie represents Broadridge on the Board of British American Business, the bi-lateral chambers of commerce between the UK and the US.
Stephanie is an Economics graduate with over 25 years of financial experience, having previously served as Global Head of Market Intelligence at BlackRock, the world’s largest asset manager. Before BlackRock, she held research and intelligence leadership roles at Merrill Lynch Investment Managers, Mercury Asset Management and Sanwa Bank.
Sean Devaney, VP, Strategy for Banking and Financial Markets, CGI
Sean Devaney is Vice President of Strategy for Banking and Financial Markets at CGI, specialising in payments, regulatory change, and outsourcing. With 20 years in financial services, he has led key initiatives like the UK’s Faster Payments Service and Current Account Switching Service, shaping CGI’s strategy across digitisation, payments, operations, and regulation.
Sean Devaney, VP, Strategy for Banking and Financial Markets, CGI discusses how as organisations look to improve their cross-border payments infrastructure whether financial digitalisation is the right path
As a gleaming endorsement to globalisation, digitalised services have become more sophisticated and embedded within financial operations, and as such the ease at which goods, services and capital can transfer across borders has increased.
We’ve seen growing demand from global organisations for cross-border payments as global economic growth and international trade grow. In fact, the Bank of England estimates that the value of such payments could reach $250 Trillion by 2027.
This doesn’t come without its challenges. The Financial Stability Board (FSB) has highlighted the complexity of these transactions, which are often associated with high costs, low speed, limited access and insufficient transparency. While market opportunities are significant, access to international payment models has to be competitive if businesses are to successfully expand.
The question for organisations keen to grow and capture the international opportunity is then how then can they access more straight forward and transparent cross-border payments?
To understand this, we need to understand the wider landscape. Naturally, the shift to digitalised finance and the desire to spur on economic growth on a global scale are drivers for the increase in cross-border payments. But there are several other changes that are having a transformative effect right now – and will almost certainly have an influence in the coming years.
1. The impact of broader political landscape
Following the UK General Election, the Labour government will have to consider
its options in meeting the G20 Roadmap for Enhancing Cross-Border Payments. The plans by the Labour government to place a cap on payment fees for international digital transactions has faced backlash, notably by European banks that argue this move could discriminatory.
In November, the government released its National Payments Vision which outlined its commitment to creating a transparent regulatory framework to support innovation in the industry.
2. Technological advances
Technology has paved the way for quicker and more cost-effective transactions. Thanks to the UK’s robust technical architecture that is in place, the demand for increased transaction volume can be met. But this isn’t just about developing more technology, it’s about optimising technology to make cross-border payments more accessible.
This isn’t to say we shouldn’t digitalise further, but there is a clear benefit to leverage what is already available. In fact, the Bank for International Settlements’ (BIS) Innovation Hub outlines in its report how the industry is utilising existing technical architecture to facilitate instant cross-border payments. Referred to as ‘Project Nexus’, the interlinking of instant payment systems (IPSs) is aligned with the G20 Roadmap.
3. The cyber landscape
While there are numerous benefits of digitalised payments, they are not without risks. With the potential to gain access to sensitive data, the financial services industry has long been a target by nefarious actors. Though the sector
generally has taken a proactive stance to implement cybersecurity measures to protect against cyberattacks, crossborder payments make this more complex.
These payments have often been self-governed under regional laws, which can naturally lead to inconsistencies. However, the G7 Cyber Expert Group argues clearly for a cross-border coordination exercise for the financial sector. This intergovernmental move is promising, as it will help to bolster and streamline cybersecurity practices for international payments.
What does the future hold?
There are several critical factors that are shaping the future for cross-border payments. With the implementation of new initiatives and the potential for regulatory changes on the horizon, we can expect to see the continued adoption of such payments.
And this is certainly on the agenda. The BIS’ Committee on Payments and Market Infrastructures (CPMI) aims to safely and securely expedite the settlement of international payments, while making them more economical and accessible. By regulating, optimising, and securing financial technology, we can reduce costs, facilitate faster payments, and increase the accessibility of cross-border payments around the world.
Steve Paul, Deputy Chief Financial Officer, Equals Money
Steve joined Equals Money as Director of Finance in 2021, after a career in the commercial and financial sector, where he had directed transformation projects at major UK banks such as TSB and Lloyds. Steve has led teams through: listed company audits; market-leading product launches; renegotiation of contracts worth over GBP100 million; large scale divestments; and Initial Public Offerings. In May 2023, he became Deputy CFO of Equals Money.
Is economic and geopolitical uncertainty holding businesses back?
Research shows that 70% of UK businesses delayed or cancelled planned investments last year, raising questions about the long-term impact this hesitation will have on growth. This year, it’s key that businesses take a proactive approach by investing in areas that will help secure a profitable future. By adopting the right digital tools, businesses can stay ahead of the curve whilst improving their everyday operations.
AI technology can provide many benefits to everyday financial processes, such as reconciling financial data or crossreferencing figures. This efficiency is particularly significant in sectors where every second counts, translating into measurable cost savings and productivity gains. Automating these tasks not only improves accuracy but also allows teams to focus on more strategic, value-adding work, such as forecasting and analysing business performance.
Yet, many businesses still lag behind as inefficiencies quietly drain productivity. On average, UK employees spend 65 minutes a day on tasks that could be automated; this is equivalent to 38 lost workdays per year. That’s valuable time that could be redirected toward strategic growth and innovation. Investing in the right technology isn’t just about efficiency; it’s about staying competitive in an increasingly digital landscape.
Digital transformation has huge potential but making it work means juggling big ideas with the everyday grind. Equals Money’s research found some real sticking points holding businesses back; nearly half (48%) worry about security, 41% aren’t sure about accuracy, and 36% feel out of their depth
with new tech.
Technology adoption is not just about integrating new tools. It’s also about ensuring these tools complement existing systems without disrupting workflows. Without this careful balance, businesses risk creating inefficiencies or operational disruptions that undermine the benefits of digital transformation.
To manage risks effectively, businesses should start with a thorough assessment of their existing systems and processes. From here, they can identify the most impactful areas for digital transformation by exploring the right tools and technologies. A phased rollout is crucial to avoid unnecessary complexity, allowing for controlled testing and gradual improvements, which helps minimise errors and downtime.
In an unpredictable landscape, businesses need the tools to react fast to market changes and what customers want. But uncertainty is slowing things down; 70% of financial leaders put off or scrapped investments in 2024 because of the shaky economy. Playing it safe like this can backfire, with businesses missing out when they don’t have the data they need to keep up with the pace.
Real-time analytics offers a decisive advantage, providing financial leaders with up-to-date data on performance, spending patterns, and market dynamics. With this level of clarity, they can make smarter decisions on everything from cash flow management to staying ahead of regulatory changes and economic ups and downs. For example, spotting cash flow trends in real time means businesses can tackle potential issues before they become major problems – keeping operations smooth and finances stable.
Companies that tap into real-time data gain a real competitive edge, making them more agile and responsive. By adopting advanced analytics tools, businesses can stay ahead of challenges and grab new opportunities with confidence, setting themselves up for long-term success. Plus, with greater transparency, financial leaders
can build stronger trust with stakeholders and customers alike.
You might be wondering – what does this mean for finance jobs? Equals Money’s research shows that 39% of financial leaders worry about redundancies as technology advances. However, the broader reality is that AI will create new, specialised roles focused on leveraging its strategic potential. Businesses must invest in upskilling their workforce to ensure employees are equipped to harness AI’s full capabilities.
By adopting AI-driven insights, businesses can move from reacting to changes to actively shaping their future, ensuring resilience in a rapidly evolving environment. Those who fully embrace the strategic potential of AI will not only stay ahead of competitors but also unlock new opportunities for growth and innovation.
In the digital age, adopting automation, managing transformation projects, leveraging real-time insights, and unlocking AI’s strategic potential are no longer optional –they are fundamental for growth. Businesses must take decisive steps to integrate these elements into their operations, ensuring they remain competitive in the face of continuous change.
By prioritising innovation and aligning it with strategic goals, organisations can secure their place as industry leaders, driving long-term success in 2025 and beyond. The businesses that invest in the right technologies today will shape the future of their industries tomorrow.
For more information on how your business can make data-driven decisions for managing business expenses, visit: https://equalsmoney. com/business-expenses/financial-leaders
Dal Sahota, Director of Trusted Payments, LSEG Risk Intelligence
Dal Sahota is the Director of Trusted Payments at LSEG Risk Intelligence. Dal joined LSEG in April 2024, bringing over 20 years of experience in the financial services industry. He has also held significant product and business transformation roles at UBS and JPMC. Dal is known for his forward-thinking approach, focused on the art of the possible in global payments and finance crime prevention.
In the rapidly evolving fintech landscape, companies face the dual challenge of maintaining their pace of product innovation while simultaneously strengthening their regulatory compliance postures. As fintech firms strive to deliver cutting-edge solutions that address significant customer pain points, it is crucial that compliance is not neglected in their design thinking for sustainable growth and fostering customer trust. Below, we explore this need through five key points, supported by real-life examples.
Fintechs are renowned for their agility and speed to market, often rolling out new products in response to changing consumer demands. However, this rapid innovation can lead to compliance being viewed merely as a secondary consideration. A pertinent example is a trading platform that gained immense popularity for its user-friendly mobile application. However, in 2020, it faced scrutiny from regulators after a series of outages during peak trading hours and allegations of misleading customers about the risks associated with trading options. To address these issues, the fintech had to significantly enhance its compliance measures. The company implemented stricter internal controls and improved its customer communication strategies to provide better guidance on trading risks. This experience underscored the importance of integrating compliance into the product development process from the start. By prioritizing compliance alongside innovation, the fintech not only mitigated risks but also rebuilt customer trust, ultimately stabilizing its operations.
In an industry where trust is paramount, consumers are increasingly cautious about how their data is handled and how their financial transactions are processed. Strong regulatory compliance can foster a sense of security, assuring customers that their financial well-being is prioritized. For instance, a payment service provider (PSP) has established itself as a trusted player in the digital payments space by adhering to stringent regulatory requirements. The PSP has invested heavily in compliance and security practices, ensuring that its platform is PCI-DSS compliant and adheres to various international regulations. When the company expanded its services to include cryptocurrency transactions, it took proactive steps to communicate its compliance measures and security protocols to users. This focus on transparency helped the PSP attract a significant number of new customers interested in cryptocurrency trading, demonstrating that strong compliance can enhance brand reputation and customer loyalty.
The regulatory landscape for fintech is continuously evolving, with new laws emerging to address innovations like cryptocurrencies, digital payments, and alternative lending models. Companies must stay ahead of these changes by proactively adapting their compliance strategies. When a US-based fintech launched its Bitcoin trading feature, it was crucial for the company to ensure compliance with the relevant regulations. The firm not only monitored regulatory
changes but also invested in compliance technology to track transactions and ensure adherence to Anti-Money Laundering (AML) laws. By establishing a dedicated compliance team and implementing automated monitoring systems, the fintech effectively managed regulatory risks while expanding its offerings. This proactive approach enabled the company to grow its customer base and solidify its position in the cryptocurrency market.
While many fintech firms may see compliance as a burden, those that embrace it as a competitive advantage can differentiate themselves in the marketplace. A leading online marketplace for personal loans provided an illustrative example of this principle. The company faced significant regulatory challenges as it transitioned from a peer-to-peer lending model to a bank charter in 2020. To navigate this transition successfully, the lending fintech prioritized building a robust compliance infrastructure. The company enhanced its risk management frameworks, developed comprehensive reporting systems, and established strong relationships with regulators. This commitment to compliance not only allowed the fintech lender to meet regulatory requirements but also positioned it as a trustworthy lender in the eyes of consumers and investors.
Regulatory compliance should not be viewed solely as a hurdle; it can also enhance customer experience. A digital payment network illustrated how compliance can improve user satisfaction. To address concerns related to fraud and unauthorized transactions, the payment network implemented robust Know Your Customer (KYC) and AML protocols. These measures not only protect customers but also enhance the overall user experience by providing a secure environment for transactions. The network's commitment to compliance has contributed to its rapid growth and user adoption, as customers feel confident using the platform for their digital payments.
In conclusion, for fintech companies, the need to strengthen regulatory compliance is not merely a matter of meeting legal requirements; it is integral to their overall strategy for success. As they continue to innovate and solve material customer problems, fintech must ensure their compliance frameworks are as robust as their product offerings. By harmonizing innovation with regulatory diligence, these firms can build lasting trust with customers, navigate a complex regulatory landscape, and ultimately position themselves for sustainable growth in an increasingly competitive environment. Embracing compliance as a core facet of their business strategy will empower fintechs to lead the charge in transforming the financial services industry while safeguarding their future.
In a world where consumer expectations are high, and regulatory scrutiny is intensifying, fintech companies that can effectively balance innovation, and compliance will emerge as the leaders of tomorrow. By prioritizing compliance alongside innovation, fintech can truly revolutionize the financial landscape while ensuring a secure and trustworthy experience for their users.
As the fintech sector evolves, companies that integrate regulatory compliance into their innovation processes will thrive. They will set industry standards, showing that compliance fosters trust, growth, and customer loyalty. These pioneers will lead the way, proving that true innovation respects consumer and financial protections. The future of finance lies in this balance: where trust and technology work together to create a secure, efficient, and transformative financial landscape for all.
As AI adoption and evolution continue to increase, balancing innovation and compliance becomes crucial. AI can drive industry-wide innovation in the 21st century, but it also presents risks if implemented without strict compliance. Therefore, fintech companies must approach this balance with diligence and foresight.
Fintechs must ensure their compliance frameworks are as strong as their product offerings by continuously innovating and solving customer problems. Incorporating compliance into their business strategy will help fintechs reshape the financial services industry while protecting their future. The future of finance depends on trust and technology working together to create a secure, efficient, and transformative landscape.
The Open Banking industry is widely regarded as a hotbed of innovation, reshaping the financial services landscape with a focus on personalisation, transparency and accessibility. But it’s not just for the techsavvy or the financially literate – it’s for everyone. By breaking down traditional barriers, Open Banking is promoting more accessible and inclusive finance and creating exciting new career opportunities in a sector that may have previously felt inaccessible to some.
But with all this potential, the question remains – how do we encourage broader adoption of Open Banking services and inspire more people to explore the career paths it offers?
Open Banking has seen steady momentum, with growth fuelled by rising consumer and merchant demand, support from industry leaders, and government backing. Increased regulatory intervention has also played a crucial role in making it accessible and inclusive to more people.
One example of this progress is the development of Variable Recurring Payments (VRPs), which deliver clear benefits to consumers. Sweeping – the automatic transfer of funds between accounts – was mandated by the Competition and Markets Authority (CMA) in 2021, laying the groundwork for broader adoption. Now, the Payment Systems Regulator (PSR) is working on a Phase 1 rollout for non-sweeping VRPs, with the aim of expanding use cases even further.
This expansion has the potential to make recurring payments not only more secure but also more accessible for consumers and
Holly Coventry, Co-Founder and CEO, Open Banking Lead, American Express
businesses alike, accelerating awareness, understanding and adoption.
Despite its potential, there’s still a lot of untapped opportunity within Open Banking. Our consumer research1 revealed that about a quarter (24%) of people are hesitant about adopting new online payment methods, including those powered by Open Banking. Meanwhile, two-fifths (41%) said they’d be more encouraged to use Open Banking payments if they thought it offered greater security than existing payment methods.
While progress will have undoubtedly been made since this research was carried out, the underlying barriers to increased adoption still exist. To combat it, the industry needs to take proactive steps, driving more widespread implementation and working on optimising user experience to build trust and confidence in the technology.
It’s only by addressing these challenges that the industry can unlock the next wave of growth and bring Open Banking closer to mainstream adoption.
Open Banking isn’t just reshaping finance; it’s also transforming the careers landscape. As an industry that thrives on curiosity, creativity, and collaboration, it welcomes a diverse range of skills and creates new career pathways, making it an exciting space for anyone looking to build a career.
My own journey is testament to the wide array of opportunities that exist within
American Express and the wider sector, as well as how far the industry has developed over time. I joined Amex as an intern over 20 years ago and back then, I didn’t realise just how much my career would evolve.
I remember 6 years ago when I was first asked to work on developing a new Open Banking product, when it still didn’t have a name and I’d only just learned what Open Banking even was. Fast forward to my role today and I’m leading the growth of American Express’ Pay with Bank Transfer product –which has gone from strength to strength since its launch, with significant growth in scale and volume across our customers. My experience is an example of how companies like Amex are fostering talent and championing Open Banking innovation.
Open Banking is rapidly evolving, so the year ahead holds a lot of promise. To capitalise on its potential, the industry needs to work together to channel the spirit of innovation into solutions that are laser focused on consumer and merchant needs.
For those considering a career in Open Banking, now is the ideal time to get involved. The sector offers a raft of opportunities, working toward a shared vision of financial inclusivity. Open Banking has the potential to become the cornerstone of a fairer, more transparent financial system – one that is open to everyone.
Lewis Ide, Vice President, 10x Banking
As the calendar flips to 2025, the financial services sector faces its own set of New Year resolutions. While some of us resolve to hit the gym or read more books, banks and financial institutions are set to embrace real-time capabilities, bid farewell to legacy systems, and prepare for the transformative role of AI.
Welcome to the future of banking – where immediacy, intelligence, and innovation are no longer aspirations but expectations. With 2025 already unfolding, here is what I predict the next twelve months will look like in the world of banking.
The ongoing digital shift in society means banks must be agile, bringing innovative products to market much more quickly than in the past. Whether transferring or exchanging money, applying for a loan, or purchasing a financial product, today’s customers expect seamless and immediate services.
For banks, this is both a challenge and an opportunity. Success in 2025 hinges on the ability to deliver on these heightened expectations, but many financial institutions remain tethered to legacy technology. These aging systems, while stable, lack the flexibility and scalability required in an era of constant technological evolution.
Legacy technology has long been a double-edged sword for banks. On one side, it’s dependable and familiar. On the other, it’s an anchor holding institutions back from the agility required in today’s market. Many banks are stuck processing batch transactions—particularly in corporate banking.
In 2025, we can expect a significant push to migrate away from these outdated systems. The goal in doing so is to build real-time capabilities that reduce cost-to-income ratios so banks can deliver products and services at a price point that satisfies both the business and its customers.
Migration from legacy stacks is no small feat. It can be a complex and resource-intensive process. But this is where another of the big trends of 2025— AI— comes in.
Artificial intelligence has been the talk of the town for the last couple of years as every industry strives to identify how it can be most effectively deployed.
This year, AI will play a pivotal role in the modernization of banking. Generative AI can analyze and decode the labyrinthine structures of legacy systems, creating efficient migration paths and validating them with a level of accuracy and affordability that manual methods can’t hope to match. Companies at the forefront of this innovation are working to bring these tools to market, making it easier than ever for banks to leave the past behind and embrace the future.
One example is TerraAI. TerraAI leverages modern data engineering practices and AI to help banks and financial institutions handle data migrations successfully. They’re also using AI to support document handling, reporting, and reconciliations. Solutions like this are proliferating in the market, and Generative AI is fast becoming indispensable to the modern bank in pursuit of successful transformation.
But leveraging AI to its full potential requires a crucial first step: cleaning up the data in core systems. Many banks struggle with messy, inconsistent, incomplete or siloed data, which hinders the effectiveness of AI models. This might explain why only 32% of banks are currently using AI at their core. By investing in data cleanup and preparation, banks can unlock the full power of AI, opening the door to operational transformation and real-time capabilities.
Core transformation will shift from a nice-to-have technical upgrade to a strategic imperative. It’s core transformation, after all, that will unlock the ability to deliver immediacy by enabling banks to leverage the full potential of AI. Over the next five to ten years, the banks that embrace this transformation will redefine customer-centricity. They will be the ones to set the standard for immediacy, intelligence, and integration in financial services.
A next-generation approach to core banking technology – what we at 10x Banking call the ‘meta core’ – blends the customization and scalability of framework neo cores with the accelerated innovation and time-to-market of configuration neo cores. The meta core can help banks to derisk migration by enabling co-existence with legacy systems, providing a clear and practical roadmap for transformation.
The transformation of core systems via the meta core offers a pathway that minimizes risk while delivering the customization and innovation necessary for success. By transitioning operations and products to the meta core, banks can reduce reliance on legacy systems and ready their infrastructure to tap into the full potential of AI, lowering costs, and improving customer experiences while maintaining stability and continuity.
The banking industry finds itself at a fork in the road and 2025 is about which path to take. One leads to the status quo: stable but increasingly out of sync with customer expectations. The other leads to a future defined by immediacy, intelligence, and integration.
The banks that succeed in 2025 will be those that recognize the urgency of change and act decisively. They will clean up their data, modernize their infrastructure, and build the real-time capabilities that today’s market demands.
The fintech sector thrives on innovation. But let’s be honest – regulation is an ever-present challenge for fintechs to contend with.
As regulations evolve, fintechs must constantly rethink how they build and update their technology. Likewise, they must ensure compliance doesn’t ruin user experience. A balancing act that is increasingly setting the best apart from the rest.
The UK’s future regulatory framework is evolving at pace, with new regulations including the Economic Crime and Corporate Transparency Act. Meanwhile the FCA is embedding the Consumer Duty, emphasising fair treatment of customers and increasing scrutiny on financial institutions’ handling of credit risk, ESG performance, and adherence to KYC, AML and counter-terrorism compliance rules. Meanwhile, Europe’s GDPR and PSD2 laws are forcing companies to rethink data security and open banking.
Across the Atlantic, the U.S. continues to evolve its regulatory landscape, with frameworks like Dodd-Frank and upcoming AI regulations shaping fintech’s next moves. Increasingly the new Trump administration talks of further deregulation. But don’t be fooled into thinking this takes the pressure off fintechs.
Deregulation isn’t just about reducing rules – it's about fostering an environment where financial institutions can operate with greater efficiency and clarity, while upholding stability. For financial institutions, reducing compliance burdens has the potential to unlock meaningful
Andrew Yates, Co-Founder and CEO, FullCircl, an nCino Company
cost savings and enable a sharper focus on growth, customer service and relationship building, and most importantly innovation –fintechs still need to keep evolving at pace.
Traditionally, compliance has been seen as a frustrating, expensive hurdle that slows down innovation. Smart fintechs are flipping this narrative
Compliance can’t be an afterthought for fintechs, not if they want to survive in a competitive space. For fintechs to shape the future direction of innovation, rather than simply react to dynamic regulatory evolution, they must weave compliance into product design from day one. Otherwise, their customers too will risk playing a never-ending game of regulatory catch-up.
The most sophisticated and future-proof fintech solutions for compliance today are utilising a single platform API-powered data ecosystem, delivering the full suite of compliance solutions through a single access point across every stage of the customer lifecycle. This includes automated KYC and KYB checks, fraud, and AML screening measures such as PEPs, sanctions, and adverse media monitoring.
Many fintechs are leveraging biometrics like facial recognition to verify a user’s identity for KYC checks, alongside AI-powered document verification to speed up onboarding.
Regulators still demand transparency, so fintechs must ensure their models are explainable and auditable. After all, no regulator wants to hear, “the computer did it.” With AI, tasks including regulatory reporting and disclosure, data analysis, and risk assessments
can be automated, saving time whilst also reducing errors and improving the customer experience, particularly at onboarding stage. Likewise, machine learning algorithms continuously learn from data, improving accuracy over time. However, at least for the time being, many financial institutions are adopting human-in-the-loop strategies to ensure the best of both worlds. This means compliance teams can focus on more strategic tasks.
The goal for all innovation is keeping regulators happy without damaging the customer experience. Fintechs need to strike a balance—ensuring seamless compliance without making users jump through unnecessary hoops.
Fintechs that embrace compliance as a strategic advantage will be the ones that thrive
Fintech leaders delivering a more balanced and targeted approach to regulation, that helps financial institutions better navigate complex regulation compliance processes, will win out.
It’s not about more or fewer regulations, but about empowering customers to succeed by always staying one step ahead of shifts in requirements. Whether those shifts entail more regulation, less regulation, or simply different regulation. This adaptability ensures that, no matter the landscape, financial institutions can stay nimble, compliant, and prepared.
The modern financial services industry relies heavily on technology, from frontto-back office technologies, and corporate infrastructure to communications and AI. With headlines that telegraph the continuous tightening of cybersecurity measures, the lucrative nature of hacks on financial institutions, and the constantly evolving threat landscape, the sector has never been under more pressure to demonstrate resilience, particularly when it comes to cybersecurity disruption. It is no different in the private capital markets, where fund managers and administrators must ensure they have the right systems, processes, and partnerships in place to mitigate risks and ensure investor confidence.
The Digital Operational Resilience Act (DORA), now in full effect, is the latest regulatory shift shaping the wider industry. Designed to standardise IT risk management across the EU financial sector, it introduces stringent requirements for governance, third-party oversight, and cybersecurity preparedness. While the regulation introduces new obligations, firms that take a proactive approach with their technology providers and partners will find that compliance is not
a burden, but an opportunity to strengthen operational resilience, build investor confidence, and prepare for future challenges. So, what steps should PE firms take with their technology partners to ensure a smooth compliance process?
Financial institutions have navigated regulatory change before, most notably with the rollout of the General Data Protection Regulation (GDPR). Those who took a proactive approach, strengthening data privacy policies and security infrastructure early, were better positioned for long-term success. DORA follows a similar trajectory, underscoring the need for financial institutions to prioritise cybersecurity, risk management, and operational resilience.
PE firms handle sensitive financial transactions and investor data, making them prime targets for cybercriminals. The risks are escalating – in fact, businesses faced an average of 1,876 cyber-attacks per week in Q3 2024, a staggering 75% increase compared to the same period in 2023. Against this backdrop, DORA’s focus on cybersecurity is both timely and necessary.
To stay ahead, firms need to collaborate with forward-thinking technology providers that can offer resilient and robust solutions. This is because DORA sets out several key responsibilities for Critical Third Party Providers (CTPP), focusing on minimising risks associated with third-party dependencies. These responsibilities include risk management – CTPPs must establish and maintain robust risk management frameworks to identify, assess, and mitigate operational risks related to their services.
By aligning with the right technology partners, firms can not only meet DORA’s requirements but also strengthen their reputation as a secure and forward-looking organisation.
Regulatory compliance can be complex, but with the right technology partner, it doesn’t have to be. DORA’s stringent documentation and audit requirements demand a level of oversight that manual processes simply can’t sustain. Automation is key – PE managers should leverage compliance platforms that provide real-time monitoring, streamline audit readiness, and centralise risk management. For instance, although DORA
does not specify any protocols for security, as a technology partner in the private capital markets, we have several pillars to our approach to managing security and risk.
These include a well-defined enterprise risk management program, a third-party risk management program, a global Application Security program, incident management, and annual penetration tests. Furthermore, we recommend cyber yearly tabletop exercises facilitated by a third-party forensics vendor, with third-party risk assessments, external audits, global policies governing risk and security, phishing simulations, and defense in-depth technologies to safeguard against external risks.
Firms using technology-driven solutions will also benefit from reduced administrative burdens, greater efficiency, and stronger collaboration between legal, IT, and compliance teams. The ability to generate audit-ready reports instantly, track risk exposure in real-time, and automate workflows will ensure compliance is maintained without unnecessary operational strain.
But operational resilience isn’t just about technology – it’s about people. Firms must foster a strong risk-aware culture, ensuring that compliance is a shared responsibility
Iyran
Clunis, Head of EMEA Operations, Allvue Systems
Iyran Clunis is an experienced sales leader currently serving as the EMEA Head of Sales at Allvue Systems, an alternative investment platform helping private capital managers, allocators, and administrators scale across all strategies and markets. With over 15 years of experience, Iyran has held key leadership roles at top global firms, including BlackRock, where he served as the EMEA Head of Business Development for Aladdin Alternatives and as EMEA Head of Sales for eFront Insight. Iyran’s expertise spans alternative investments, financial technology, and business development, having also worked with organizations like Moody’s Corporation, FIS, and SunGard Financial Systems.
across the organisation. Defining clear roles and responsibilities within risk and compliance teams is essential, as is providing continuous training to keep employees informed about emerging cybersecurity threats and regulatory developments.
Embedding resilience into day-to-day operations, rather than treating it as a oneoff exercise, will ensure firms are prepared for future challenges.
For firms that embrace DORA’s principles early, compliance will not be a hurdle. On the contrary, it will be a strategic advantage. Those that invest in strong governance structures will not only meet regulatory expectations but also build trust with investors, enhance operational efficiency, and position themselves as leaders in the evolving financial landscape.
Rather than viewing DORA as an obligation, PE fund managers should see it as an opportunity, one that strengthens their ability to withstand disruption, safeguard investor confidence, and drive long-term success. With the right technology and strategies in place, resilience isn’t just achievable – it’s a competitive edge.
Intelligent risk management isn’t just about minimising threats – it’s about asking the right questions and preparing for worstcase scenarios. When risk isn’t handled with skill and logic, it can lead to disastrous consequences for businesses.
A striking example of poor risk strategy involves a jeweller’s transition to eCommerce. Initially stable, the business pivoted to drop shipping unrelated products without proper planning. Selling items it didn’t have at unsustainable prices, it struggled to fulfil orders, leading to financial turmoil. The rapid shift, coupled with supply chain mismanagement, resulted in collapse and significant losses. This highlights the dangers of entering unfamiliar markets without assessing operational risks. This scenario isn’t unique – more than 60% of operational failures in payment systems result in at least $1 million in total losses. A strategic, measured approach – considering supply chain reliability and financial sustainability –could have prevented the downfall.
However, the most successful risk strategies embrace uncertainty rather than fear it. Avoiding all risk can stifle business growth, whereas a well-informed approach enables companies to seize opportunities while mitigating downsides.
Navigating risk in payments requires foresight as the landscape evolves with technology, regulation, and emerging threats. Businesses must balance proactive and reactive strategies – defining risk thresholds, monitoring anomalies, and responding swiftly. Artificial Intelligence (AI) plays a crucial role in fraud detection, but human oversight remains essential for nuanced decision-making.
While AI strengthens security, it also enables sophisticated cyber threats Regulatory scrutiny is increasing, aiming to protect consumers without stifling innovation. Fintech leaders must understand risk appetite, identify vulnerabilities, and ensure operational resilience to withstand disruptions.
Risk management should be a shared responsibility, not just a competitive edge. Industry-wide collaboration strengthens resilience and keeps businesses ahead of evolving threats. A forward-thinking approach – combining technology, human expertise, and cooperation – will shape the future of fintech.
A common tension in financial organisations lies between COMPLIANCE and SALES. The sweeping generalisation is that SALES teams focus solely on growth, while COMPLIANCE only works to ensure regulatory standards and risk thresholds are upheld at the expense of all else. This can create friction, but it doesn’t have to be a roadblock. The solution lies in open communication and mutual understanding.
At Cashflows, we enable SALES rather than restrict it. Instead of saying “no,” COMPLIANCE collaborates with SALES to define clear guardrails – identifying acceptable business types, potential exceptions, and structured deals that mitigate risks while supporting growth. It’s a relationship that needs to be carefully managed – there was a time in payments when the risk office was referred to as ‘The department for Opportunity Prevention’, and that’s not what risk is there for. It’s there to identify the potholes and the obstacles in the road ahead. In this way, it’s the risk office’s job
to tell departments like the SALES team what they can do, rather than what they can’t.
It’s important for us to remind ourselves is that we are all on the same team, which is to say that transparency is essential. SALES teams must understand risk controls, and COMPLIANCE must be agile enough to adapt to legitimate business needs. As with so many walks of life, striking the balance is key. In this case, it makes risk management an enabler of successful business decisions rather than an obstacle.
Intelligent risk management requires curiosity, adaptability, and learning from past experiences. By questioning assumptions and preparing for worst-case scenarios, fintechs can foster a secure, innovative payments ecosystem – one that grows confidently without compromising stability.
To learn more, visit: https://www. cashflows.com/
Cashflows is a new breed of fintech payments company that makes it easy for small corporates and SMEs to accept card and digital payments – online, in store and on the move.
Through its own acquiring platform and payment gateway, Cashflows provides a safe, secure ecosystem for processing payments right across Europe. Cashflows products and services are built with the latest technology and the future in mind, always to meet the specific needs of partners and customers.
Learn more at www.cashflows.com
Richard Wilkins, Chief Risk Officer, Cashflows
Richard joined Cashflows in 2022, overseeing everything from company strategy and risk assessment to stakeholder engagement. He has spent his entire career in risk management, the last 20 years of which have been in Payments. He has previously at Elavon Merchant Services, where he was previously Credit, Risk & Fraud Director for Europe. Prior to Elavon, Richard held senior positions at both Worldpay and Ford Credit Europe
Interview with Dr. Marcelo Ortuste, Principal of the Ortuste Law Firm and Honorary Consul of the Republic of Armenia in the Plurinational State of Bolivia
Financial IT: Can you please tell us about yourself?
Dr. Marcelo Ortuste: I studied in the city of Sucre and was trained at the Universidad de San Francisco Xavier. I obtained a degree in Law, Politics and Social Sciences, earning my professional title as a lawyer. I worked in Sucre for 15 years. For the past 20 years, I have been working in Santa Cruz. On November 11, 1990, I founded the Ortuste Law Firm. We have now completed 35 years of professional service. The firm has professional agreements with law firms around the world: we are also members of TCM Group and WAD. I have always been passionate about civil law, as I consider it the foundation of all legal disciplines. Additionally, I have always been fascinated by private international law, commercial law, and mining law, which I also practice and have learned through personal initiative and the development of my professional career.
Financial IT: Provide a brief description of your business activities.
Dr. Marcelo Ortuste:Aside from the normal activities of the law firm, our family runs the travel agency Travel Time and Casa Armenia, an office and functions centre in Santa Cruz. We also represent several global companies, including petroleum companies from Kazakhstan, such as Petrooil, among others. Additionally, we represent the Dubai real estate broker Eminence and specialist bullion company AgaOne. Furthermore, we are business partners of BSM Brazil, an important luxury jewellery fair.
Financial IT: Discuss your activities as the Honorary Consul of Armenia in Bolivia. Dr. Marcelo Ortuste:I have been the Honorary Consul of the Republic of Armenia in Bolivia since 2022, under the jurisdiction of the Embassy of Armenia in Montevideo, Uruguay. We assist the Armenian community in Bolivia and fosters relationships between the Armenian government and the authorities in this country. In addition, we work to strengthen ties between the business sectors of Bolivia and Armenia.
Financial IT: Does Armenia’s membership in the Eurasian Economic Union (EAEU) impact trade and investment in Bolivia?
Dr. Marcelo Ortuste:Following the pandemic and with the establishment of Armenia’s new Embassy in Uruguay, we aim to integrate Bolivian export producers into the EAEU market: in turn, we look to attract investments from EAEU member countries into Bolivia.
Financial IT: What are the main fiscal benefits for investors in Bolivia?
Dr. Marcelo Ortuste:There are several tax benefits for foreign investors. Additionally, there are international free trade zones, such as in the city of El Alto, and others that will soon be operational, particularly for the industrial sector along the BoliviaBrazil border.
Financial IT: Which commercial sectors are most promising for investors in Bolivia?
Dr. Marcelo Ortuste:In a word: minerals. The outlooks for precious metals and lithium, in particular, are very positive. Agribusiness and livestock farming are also areas of opportunity.
Financial IT: What are the main banking and governmental programs in Bolivia that support investment?
Dr. Marcelo Ortuste:I would highlight the work of the Productive Development Bank. Further, private banking institutions also have a positive attitude towards inwards investment. However, Bolivia still lacks investment funds necessary to develop various industries while ensuring environmental protection.
Financial IT: What are the most challenging financial regulations affecting foreign investors?
Dr. Marcelo Ortuste:There is still work to be done in creating specialized legislation to provide greater legal security for foreign investors. Bolivia is making some progress in this respect. Recently, there have been tax and customs legislation reforms that exempt various sectors from paying duties.
Financial IT: How do Bolivia’s exchange market regulations impact international investment?
Dr. Marcelo Ortuste:Currently, due to a shortage of foreign currency, normal business operations—especially in imports and exports—are being affected. We hope this is a temporary issue that will be resolved soon through collective efforts.
Financial IT: Your legal expertise is valuable to investors. What services can you offer them?
Dr. Marcelo Ortuste: Our firm provides investors with Due Diligence services, debt collection both domestically and internationally, and comprehensive legal advisory services for establishing new companies or foreign branches in Bolivia. We have specialists in all areas of law. Additionally, we offer market research services and organize business meetings with investors interested in Bolivia’s mining sector and real estate development, particularly in the eastern part of the country.
Financial IT: Tell us about your business goals and future directions.
Dr. Marcelo Ortuste: Our goal is to continue growing while maintaining our commitment to quality in our services. For example, we serve as legal counsel for the Embassy of the Federal Republic of Germany in Bolivia We also aim to establish new strategic business alliances to enhance and expand our international client services.
Financial IT: Finally, let’s talk about fintech. What is the state of play in Bolivia?
Dr. Marcelo Ortuste: Bolivia is strengthening its technological ecosystem, with a significant rise in startups, particularly in fintech and SaaS (Software as a Service). These sectors continue to attract investments, as is the case across most of Latin America.
Financial IT: How is cryptocurrency perceived in Bolivia, and what is its future?
Dr. Marcelo Ortuste: As an alternative for conducting business within and outside of Bolivia, cryptocurrency usage remains limited due to a lack of awareness of the advantages.
Financial IT: How does the Bolivian government regulate cryptocurrencies and digital financial transactions?
Dr. Marcelo Ortuste: The government regulates digital finance and cryptocurrencies through its agencies ASFI and UIF.
Financial IT: Thank you.
The fintech sector has experienced exponential growth over the past decade, driven by technological advancements and a shift in consumer preferences towards digital financial services. As with any critical infrastructure, it's important that new and established players alike ensure the security of funds and of people's personal data, and so as the industry and technologies supporting it grows, so does the need for regulation.
It might sound obvious, but at the heart of the financial services industry is data, and this data is kept in databases. Effective database management and data protection are essential for regulatory compliance and maintaining customer trust. Without the proper management, modernization, and protection of these databases, no one can properly comply with protective regulations. Cyber resilience goes beyond just cybersecurity and protection against malicious attacks from bad actors, it also encompasses a significant number of breaches, downtime, or system failures due to poor operational practices and human error.
Regulators worldwide are placing a stronger emphasis on consumer protection, with stricter requirements for transparency, fair treatment, and safeguarding of consumer data. For instance, the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States have set high standards for data privacy and protection. These regulations ensure that consumers have greater control over their personal data and impose significant penalties for non-compliance.
The Digital Operational Resilience Act (DORA) introduced earlier this year is a new regulation aimed at enhancing the operational resilience of financial institutions and their third-party ICT providers, and despite this being an EU regulation, it also affects US subsidiaries operating in Europe, making it a global concern. DORA requires
financial entities to implement robust ICT risk management frameworks, report major ICT-related incidents, and regularly test their operational resilience to protect against disruptions and cyber threats.
While regulations are viewed by some as constraints, it’s my view that in fact they drive innovation by setting clear standards and expectations. For example, the introduction of Open Banking regulations in the UK and Europe has spurred the development of new financial products and services. By mandating banks to share customer data with third-party providers (with customer consent), these regulations have paved the way for innovative solutions such as personalized financial management tools and seamless payment services.
The financial sector is the guardian of huge quantities of business-critical and personal data, and effective database management is essential for regulatory compliance and maintaining customer trust. These regulations are often perceived by organizations as overwhelming or an additional operational burden – but they shouldn’t be. They’re simply setting up organizations to succeed with the introduction of robust and thorough best-practices. As we see with DORA, the regulatory environment is evolving to provide explicit practices that need to be implemented. This helps organisations interpret the rules which in turn allows them to more accurately predict costs of implementation rather than compliance constantly seeking additional funding. And as I hear from Redgate customers, these are things that many of them were doing anyway, for example patching systems regularly, taking backups and ensuring production data doesn’t leak into test environments.
So what can our industry do to stay ahead? Database Administrators (DBAs), data security teams, and Chief Information Security Officers
(CISOs) play a crucial role in maintaining the integrity, security, and performance of an organization’s data. With the introduction of regulations across different geographies, they need to be proactive in their approach to database management and implement frameworks that help identify, mitigate, classify, and report incidents.
DBAs, security leads, and CISOs are often the first to detect anomalies or breaches in the database. Under DORA, they must have robust incident management processes in place to quickly identify, respond to, and report incidents. This includes maintaining detailed logs and documentation of all incidents and responses.
Regularly assessing and mitigating risks associated with data breaches and cyber threats is essential. This includes implementing encryption, access controls, classification of important assets, patch management, and regular security audits. Keeping up with regulatory requirements and ensuring that all data management practices comply with evolving legislation is critical for maintaining operational resilience and avoiding penalties.
The regulatory landscape is undoubtedly shaping the future of fintech. While compliance with regulations can be challenging, it also presents opportunities for innovation and growth. By adopting a proactive approach to robust database management processes and compliance, leveraging technology advancement, and prioritizing data protection, fintech companies can navigate the regulatory environment successfully and continue to drive the evolution of financial services.
The rise and evolution of money mules –individuals used by fraudsters to launder illicit funds – poses a significant challenge to financial institutions worldwide. Paired with growing regulatory pressures and evolving threats in the banking system, the need for a fresh approach is undeniable. Leading this new frontier are pioneering detection models specifically tailored to detect distinct mule behaviours, reflecting the clear differences in mules’ behaviour, based on their intent.
Until now, money mules have tended to be broadly categorised under a single label, leading to a somewhat uniform approach to detection and prevention. Recognising these limitations, LexisNexis® Risk Solutions, working with some of the UK’s largest banks, has developed a far more nuanced classification of money mules, mirroring the complexities and varied behaviours of these facilitators of financial crime. Exploiting these distinctions in a tailored risk model can substantially enhance mule detection, and ultimately, improve the financial integrity of a UK banking sector still settling into a new PSR regulatory regime.
Three distinct mule types emerged from the analysis: Complicit Mules that knowingly launder money; Recruited Mules that are coerced into participation; and Exploited Mules that unknowingly enable money laundering. Each category elicits unique behavioural patterns in the bank accounts they control, which in turn allows for tailored detection strategies. And as tests have shown, overlooking this heterogeneity risks failing to capture a significant volume of preventable fraud.
Complicit Mules, characterised by intentional and coordinated fraudulent activities, are relatively easy to detect. They tend to display distinct activity patterns –sporadic logins and transactions – which don’t align with what you’d expect from a typical
Jonathan Lamb, Senior Engagement Manager, LexisNexis Risk Solutions
banking customer. In contrast, Recruited Mules, often lured by the promise of 'quick cash' online, pose a greater challenge. These may be previously dormant accounts that see a gradual ramping up of activity and changes in transaction frequency and volume, leading up to a mule payment event. Finally, Exploited Mules are the most complex, since they exhibit ostensibly normal account behaviour right up to the point of receiving fraudulent funds. Their detection requires specialised models, making them the proverbial 'needle in the haystack' of fraud detection.
These varied behaviours call for specific machine learning models capable of detecting the subtle account anomalies that can expose mules. The value of doing so was underscored by recent testing that demonstrated tailored models can consistently outperform broader 'catch-all' models in detecting mule transactions, vastly reducing the volume and potential fraud loss value to the organisation.
For instance, when a ‘catch all’ model was trained on a small sample of known complicit mule accounts, it detected 25% of the potential fraud loss. In contrast, a model specifically trained to catch complicit mules trained on the same small sample, detected 51% of the mule transactions, accounting for 75% of the potential mule loss value. The potential benefits of a three-fold improvement in the value of prevented fraud are significant for any size organisation.
Tailored mule models excel in distinguishing key indicators like atypical transaction volumes, irregular transfer frequencies and sudden activity spikes that could be indictive of risk. Such models enable institutions to refine their fraud prevention strategies by aligning resources toward high-risk areas, ensuring a more efficient allocation of investigative efforts. ‘Catch-all' models, on the other hand, will generalise behaviours, leading to higher
false positive volumes and undetected threats. This analysis emphasises the pivotal role such models can play in safeguarding financial ecosystems against increasingly sophisticated fraud.
It bears repeating that continued adaptation of strategies is essential as fraud evolves, too. Renewed industry efforts to detect and close existing mule accounts will most likely prompt a ramping up of recruitment efforts on the part of the herders. A new generation of mules may well be instructed to adapt their behaviours again as detection efforts becomes more accurate.
Faced with this accelerating and shifting challenge, banks must themselves learn to adapt to a proactive, systematic and collaborative prevention strategy. Regulators and banks must therefore align efforts and agree unified standards for mule classification and management. Doing so will foster an environment of transparency and accountability conducive to making a real difference. On the consumer side, public awareness campaigns are critical for educating individuals on the reality of these ‘quick cash’ schemes and the serious implications of being convicted of money laundering, with a view to stemming the flow of new recruits.
Simply put, money mules are the engine room of global networked fraud – stop them and the entire operation grinds to a halt. To truly address this threat, the industry must take a far more nuanced and specific approach to training models. The protection of both consumers and the wider financial ecosystem relies on it. The message is clear – the financial world must take a tailored approach to risk modelling, or risk being left behind.
Europe's #1 Most Dynamic Tech & Startup Metropolis
SCAN TO GET INVOLVED
