Nordic Fintech Magazine Spring 2025

SPRING 2025 1

p.30-37

Unbreakable, The Financial Frontline of a Nation at War

p. 12-13

How the Baltics are Quietly Changing Global Financial Services p. 42-43

How Quantum Technology is Transforming Financial Services p. 48-49

Your Data, Evolving with AI Right Now

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NFM NORDIC FINTECH DISTRIBUTION COMMUNITY Nordic Fintech Magazine exclusively works together with selected Nordic Community Partners for insights and distribution, giving us unparalleled reach with audiences across the Nordics and Baltics

Editor in Chief: Chris Crespo Journalists: Chris Crespo, R. Paulo Delgado, Jesper Henriksen Contributing Voices: Ian Kalla, Dharmesh Mistry, Kamilė Šulcaitė, Julija (JJ) Jegorova, Linas Beliunas, Dave Wallace, Tina Luse Layout: Vratislav Pecka Production: Ditte Gerner Dyhr Exclusive partner:

Published & Distributed by Nordic Fintech Magazine Contact: Stian Faber, Head of Partnerships stian@nordicfintechmagazine.com

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Thank you to all the fintech heroes contributing to this magazine!

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Content

p. 6-7 p. 8-9

p. 10-11 p. 12-13

Welcome to the spring Edition of Nordic Fintech Magazine!

The Future of Finance Belongs to AI That Can Think and Act The Growth and Future of Latvia’s Fintech Ecosystem: A New Era of Innovation and Collaboration How the Baltics are Quietly Changing Global Financial Services

p. 14-15

Why Resilience is Your Next Competitive Edge

p. 16-17

Global Wallet AstroPay Opens Copenhagen Hub for European Expansion

p. 18

Transforming Finance: Payhawk’s Impact on the Baltics and Beyond

p. 19

Lithuania’s Fintech Ecosystem: A Model of Public-Private Synergy Driving Global Expansion

p. 20-21

MAGNETIQ BANK: setting the standard of future B2B banking

p. 22

ZTL Simplified B2B Payments in the Nordics. Now, It’s Ready to Scale.

p. 23

Introducing automation in Fintech companies 5 key steps

p. 24-27

p. 28-29 p. 30-37

p. 38

Banking at Speed: The Acceleration of Innovation in Financial Services ConnectPay Turns Payments into Flows

Unbreakable, The Financial Frontline of a Nation at War EMBank’s Vision for Lithuania’s Fintech Evolution

5

p. 39

From Startups to Success: Legal Support in the Baltic Fintech Revolution

p. 40

CRIF Helps Fintechs and Banks Handle Data Overload

p. 41

How MySQL is Transforming Financial Services

p. 42-43

Beyond Quantum Computing: How Quantum Technology is Transforming Financial Services

p. 44

The Evolution of Core Banking Is Underway

p. 45

Lithuania’s Fintech Rise and Tribe Payments’ Role

p. 46

DECTA Launches FinTech Fast-Track for New Acquirers and Issuers

p. 47

The Customer Experience Problem Financial Institutions Don’t Want to Talk About

p. 48-49

Your Data, Evolving with AI Right Now

p. 50

Fimento Launches Self-Service AI Model for Transaction Categorisation

p. 51

Why Flexibility, Speed, and Trust Matter More Than Ever in Business Banking

p. 52-53 p. 54-55

p. 56-57 p. 58

Introducing Hybrid Payments - On The Verge Of Digital Dominance Stablecoins: The Silent Revolution Transforming Financial Services (And Why They’re Overtaking CBDCs) A Fintech PR Playbook to build credibility and get media coverage Green Finance Institute Leads Lithuania-Based Fintechs Through the Regulatory Labyrinth

p. 59

Fintechs to Watch

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Editorial

Welcome to the spRing Edition of Nordic Fintech Magazine!

It started with a simple mission: serve the Nordic markets. That was always the goal for Nordic FinTech Magazine. We wanted to tell the stories of the innovators, the disruptors, the people shaping the future of finance in the region. But what we didn’t expect, what truly surprised us, was how quickly our focus expanded.

By Chris Crespo

7

T

he moment we took a closer look at each of the five Nordic markets, we saw something incredible. Each country had

its own distinct approach to fintech, its

Chris Crespo Head of Content at Nordic Fintech Magazine

own way of pushing the boundaries of digital finance. That diversity fascinated us. But then came the invitation, an open door to explore the Baltics, and we walked through it.

From that moment, we were hooked.

The Baltics are different. There’s a spirit here, an energy, a drive that’s impossible to ignore. Maybe it’s rooted in history, in the resilience that at the fall of the Soviet Union brought together 2 million people in the Baltic Way, A human chain, showing solidarity in protest against Soviet occupation, spanning the geogrpahies of all three countries.

It’s message was deafening: ‘We want to be free, sovereign and independent”.

Maybe it’s the deep-seated belief in innovation and ownership. Whatever it is, it’s working. Today, the region is home to a thriving fintech ecosystem with 676 companies employing thousands of talented fintech heroes across the region.

These numbers tell a compelling story. The Baltic fintech sector is growing, creating jobs, and positioning itself as a major player in the global financial sector. It’s not just about the numbers, though. It’s about the impact these companies are making, not only in their home countries but aroudn the world.

Over the past three years, we’ve built strong connections here, and what stands out the most isn’t just the technical expertise, it’s the commitment to making a global impact. There’s a sense of brotherhood and sisterhood in how these economies develop, in how

ship into an opportunity for reinvention,

tech and finance play in sustaining an

knowledge is shared, and in how differ-

Ukraine is proving that resilience breeds

economy during crisis and laying the

We also bring insights into the

ent players in these ecosystems, both

innovation. We had a unique opporut-

groundwork for recovery.These are the

technologies that are transforming

private and public, uplift one another.

nity to speak to representatives from

stories that need to be told.

everything from how financial services

That’s why we’re thrilled to be part

the Ukrainan Financial Ecosystem to

And that’s why this issue is so special.

organizations fight fraud to how they

of Baltic Fintech Days. Lithuania, Latvia

gain an understanding of how war can

In addition, we’re tackling some of the

streamline operations, reduce waste,

and Estonia, are coming together to:

impact a country’s financial system.

most groundbreaking topics in fintech,

boost resilience, and create hyper-per-

Give Baltic fintech companies a

During our conversations with six

not just in the Nordics and the Baltics,

sonalized customer experiences.

stage to showcase their thought

key representatives from the Ukrainian

but globally. AI has exploded past

leadership.

financial sector, including the National

even the boldest predictions, and we’re

we hope this issue sparks curiosity,

Brand the region as Europe’s

Bank of Ukraine, leading commercial

featuring insights on how it’s overhaul-

challenges perspectives, and offers a

next major fintech hub.

banks, international institutions, and fin-

ing banking, making processes faster,

deeper understanding of the dynamic

Attract international investors

tech pioneers, we learnt firsthand how

smarter, and more efficient. We’re also

forces at play in fintech today. Because

and partners looking for cut-

they are navigating immense challeng-

breaking down stablecoins and how

whether it’s the Nordics, the Baltics, Ukraine or beyond, one thing is clear:

•

• •

and unprecedented speed.

So, as you flip through these pages,

ting-edge collaborations.

es. Even under extraordinary pressure,

they’re reshaping the very concept of

The same spirit of freedom and liber-

they are maintaining economic stability,

money. We continue to explore the fas-

the future of fintech is being rewritten,

ation that surged through the Baltics 35

adapting financial infrastructure, and

cinating an perplexing world of quan-

and we are honoured to have a front

years ago is now emerging in Ukraine.

pushing forward with innovation. Their

tum as the financial landscape is being

row seat.

Just as the Baltic nations turned hard-

efforts highlight the critical role fin-

is being supercharged with innovation

Stay disruptive.

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The Future of Finance Belongs to AI That Can Think and Act A few years ago, the idea of AI-powered financial advisors, fraud detection systems that operate independently, and hyper-personalized banking experiences felt more like science fiction than reality. Predictions suggested we wouldn’t see real progress in agentic AI until 2030. Yet here we are in 2025, and these AI-driven transformations are happening now, faster and more powerfully than anyone expected.

By Chris Crespo

A

lfred Mukudu, Head of

One of the most compelling applica-

Go-to-Market Strategy &

tions of agentic AI is hyper-personaliza-

Business Development for

tion. Mukudu points to NatWest Bank

Financial Services at AWS,

has had a front-row seat to this shift.

“I’ve read forecasts where the assumption was we’d start getting to agentic AI around 2030, but already in 2025, we’re finding useful applications,” he says. AWS has been rolling out agent capabilities across industries, not just for developers but for real business and consumer-facing applications.

AI has already made waves in financial services, particularly behind the scenes.

Automation has improved fraud detection, streamlined customer service,

It’s about giving financial institutions choice, whether it’s encryption, deployment strategies, or selecting the best large language model for their needs.

in the UK as a prime example. “They enabled over two million people to save for the first time just by personalizing messaging at scale,” he says. Instead of sending out generic emails, NatWest uses AI to tailor financial guidance to each customer’s individual behaviors.

“We’re talking about true one-to-one personalization, where ten different customers get ten different messages

Alfred Mukudu

based on what matters to them.”

Head of Go-to-Market Strategy & Business Development for Financial Services at AWS

Mukudu highlights three key ingredients:

To make agentic AI work at scale, 1.

Data Infrastructure. “You need access to a knowledge repository,

and helped firms meet compliance requirements. But there’s a gap. Most

Mukudu breaks it down simply:

whether it’s standard operating

AI implementations are passive, waiting

“Think of agentic AI as an AI system

procedures, database access, or

for inputs rather than taking initiative.

that can independently perform tasks

clean data,” Mukudu says. With-

“The difference with agentic AI,” Mukudu

and make decisions. Unlike tradition-

out strong data management,

explains, “is that it’s not just answering

al generative AI, which responds to

AI agents can’t make informed

questions. It’s actually doing things.”

prompts but lacks the ability to take

Financial institutions are under

action, agentic AI can execute work-

pressure. Customers expect seamless,

decisions.

2.

Actionable APIs and Microservices.

AI has to be able to do more than

flows autonomously.”

personalized interactions. Regula-

For example, today’s chatbots can

just analyze data. “Microservices

tors demand airtight security and

tell you how much vacation time you

and good APIs are critical so these

compliance. Fintech challengers are

have left. But an agentic AI system? It

agents can execute tasks seam-

pushing the boundaries of automation.

doesn’t just provide the information. It

Traditional AI models, as powerful as

books your leave, finds flights, and even

they are, still require too much human

arranges transportation. This leap from

AI is making decisions 24/7, you

intervention. That’s where agentic AI

passive AI to proactive automation is

need the right oversight. Mukudu

changes the game.

where financial services are heading.

stresses that firms must train

lessly,” Mukudu explains.

3.

Governance and Upskilling. When

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Alfred Mukudu, Head of Go-to-Market Strategy & Business Development for Financial Services at AWS

their teams. “Agents rely on

powerful,” Mukudu emphasizes.

today will be the leaders of tomorrow.

Those who hesitate? They will be play-

good prompt engineering, so

Looking forward, Mukudu is particu-

upskilling employees is key to

larly excited about AI’s expansion into

maximizing automation.”

edge computing. “With AWS Outposts,

Mukudu sums it up with a clear

Local Zones, and Wavelength, we’re

message. “Agentic AI is not just about

AWS is actively shaping the future

extending cloud capabilities closer

efficiency. It’s about rethinking how

of agentic AI in finance. Mukudu

to where customers are,” he says. AI

financial services interact with people,

describes the company’s approach.

running at the edge, on devices, in

making every experience smarter,

“We’re democratizing access to these

branches, and within networks, means

faster, and more personal.”

technologies. It’s about giving financial

faster decision-making and more

institutions choice, whether it’s encryp-

seamless interactions.

tion, deployment strategies, or select-

Further down the line, emerging

ing the best large language model for

technologies like quantum computing

their needs.”

and blockchain will push agentic AI

With platforms like AWS Bedrock

even further. Mukudu is confident that

(a fully managed service that simpli-

these developments will “fundamen-

fies building and scaling generative

tally transform how we interact with

AI applications), a vast selection of

financial services.”

compute instances, and purpose-built

Agentic AI is no longer just a

database services, AWS is ensuring

concept. It is happening now. From

that financial institutions can deploy

automating workflows to delivering

AI in ways that suit their operational

hyper-personalized financial experi-

needs. “The ability to choose how you

ences, it is already transforming the

implement AI is going to be super

industry. The firms that embrace it

ing catch-up.

About Amazon Web Services (AWS) is the world’s most comprehensive and broadly adopted cloud, with more than 200 fully featured services available from data centers globally.

Millions of customers—including the fastest-growing startups, largest enterprises, and leading government agencies—are using AWS to lower costs, increase security, become more agile, and innovate faster.

10

The Growth and Future of Latvia’s Fintech Ecosystem: A New Era of Innovation and Collaboration Latvia’s fintech ecosystem stands at the cusp of a transformative moment. The past year has been a crucial one for both the FinTech Latvia Association and the broader Latvian fintech sector. As we celebrate the launch of the third annual Fintech Pulse report (please check it online here: fla.lv/pulse2024), I am proud to reflect on our many achievements and the exciting developments on the horizon.

By Tina Luse, Managing Director of the FinTech Latvia Association

W

ith the momentum

testament to Latvia’s rising status as an

create a more secure and transparent

we’ve built, Latvia is not

integrated fintech destination.

regulatory environment for alternative investment markets. The objective is

only cementing its po-

This rapid expansion underscores

sition as a fintech hub

the increasing importance of Latvia

to foster collaboration between fintech

but is also spearheading initiatives that

as a hub for financial technology and

businesses, improve investor protection,

are paving the way for a dynamic future

innovation. More importantly, it high-

and promote regulatory certainty. By

of innovation, collaboration, and growth.

lights the value of our mission: to foster

working together, these platforms aim to

financial inclusion, democratize access

advocate for responsible regulation that

A Flourishing Ecosystem:

to investment opportunities, and en-

benefits both the industry and the wider

Expansion and Innovation

hance financing options across various

public, ensuring that the sector con-

One of the most significant milestones

financial verticals. With this influx of

tinues to thrive and evolve in line with

this year has been the dramatic growth

new members, we are accelerating the

European standards.

in our membership. The number of

development of a robust ecosystem

This initiative aligns perfectly with our

members within the FinTech Latvia

capable of driving significant change

core mission at FinTech Latvia—ensur-

Association has doubled, reflecting the

both locally and globally.

ing that Latvia not only remains at the

expanding scope and diversity of Latvia’s

A particularly noteworthy develop-

forefront of innovation but also leads

fintech sector. We have welcomed new

ment within our growing membership

the way in setting a global example

members from across the financial

is the collaboration among investment

of a well-regulated, transparent, and

technology spectrum: established digital

platforms within the Association. At

inclusive fintech landscape. Through this

lending platforms, prestigious law firms

the end of this year, these platforms

memorandum and similar efforts, we

serving fintechs, and market leaders

came together to sign a memoran-

are confident that Latvia will continue

in business lending, crowdfunding,

dum aimed at shaping the future of

to attract both investors and entrepre-

RegTech, and even a fully fintech-ori-

regulated fintech. The memorandum

neurs, fostering an environment of trust

ented bank. This growing diversity is a

calls for the unification of platforms to

and collaboration.

Tina Luse Managing Director of the FinTech Latvia Association

11

foster cross-border collaboration, and highlight the value of regional cooperation in advancing the fintech industry.

The Baltic Fintech Days will serve as a platform for thought leadership,

As a region, we are stronger together.

knowledge-sharing, and business development across the Baltics and beyond. As a region, we are stronger

Tina Luse

together, and this event will highlight the

Managing Director of the FinTech Latvia Association

collective potential of the Baltics as a global fintech powerhouse. Our goal is not only to showcase the fintech innovations emerging from our countries but

Probably One of the Most Accessible Regulators in Europe

also to provide a platform for startups,

The importance of a strong regulatory

investors, and regulators to collaborate,

environment cannot be overstated.

exchange ideas, and shape the future

This year, Latvia took significant steps

of fintech in Europe. With a dynamic

forward with the successful passage of

regulatory environment, a highly skilled

the national law for the MiCA (Markets

workforce, and strong political support,

in Crypto-Assets) regulation, a crucial

the Baltics are quickly becoming one of

milestone for the country’s fintech land-

the most sought-after regions for fintech

scape. With this regulatory framework

entrepreneurs. See you in Vilnius on 2nd

in place, Latvijas Banka—the Central

and 3rd of April, 2025!

Bank of Latvia—is now empowered to welcome new market participants with

Closing Remarks

aspirations for pan-European expansion

Looking ahead, we recognize the im-

in the crypto space. Moreover, it has

portance of restoring Latvia’s reputation

already been offering free pre-licensing

as a safe and competitive jurisdiction

consultations since mid-2024.

for financial services. This year, our

Latvia’s regulatory clarity and open-

ecosystem has been preparing for

ness are increasingly being recognized

the upcoming Moneyval assessment,

as key factors that make the country an

which evaluates anti-money laundering Photo: Tina Luse

attractive location for fintech businesses. As I’ve repeatedly heard from companies, “Working with Latvijas Banka feels

In addition to MiCA, Latvijas Banka con-

measures. This process ensures that Latvia remains a trusted environment for both investors and fintech companies, fostering sustainable growth

like working with another fintech— just from the public sector.”

(AML) and counter-terrorism financing

and reinforcing our commitment to Strengthening International and

This prestigious platform allows us to

maintaining the highest standards of

Regional Collaborations

represent Latvia’s fintech interests on a

regulatory compliance.

tinues to provide unparalleled support

In line with our growth, we have also

pan-European stage, further amplifying

to fintech innovators through initiatives

deepened our international collabora-

our voice within the European Union

With the guidance and leadership of

such as pre-licensing consultations, in-

tions. For several years now, we have

and beyond. I am especially impressed

Latvijas Banka and the support of the

novation sandboxes, and capped super-

been proud members of the European

about the ECSP crowdfunding platform

Prime Minister, we are actively shaping

vision fees for crypto service providers.

Digital Finance Association (EDFA).

working group operational under the

the next phase of Latvia’s fintech devel-

umbrella of EDFA.

opment strategy. Our vision is clear: to

These efforts ensure that companies entering the EU market can do so with ease and clarity, making Latvia a safe,

About

competitive, and accessible jurisdiction for fintech entrepreneurs.

Among the most significant developments past year was the groundwork being laid for non-bank payment providers to gain access to the SEPA (Single Euro Payments Area) payment system via the Central Bank, which at the moment is already fully operational.

This move signals Latvia’s commitment to ensuring that fintech companies have the tools and infrastructure they need to operate on an international scale.

Since January 2021, Tīna leads the Fintech Latvia Association. The aim of the Association is to unite the providers of financial services of the non-banking sector based on financial technologies in order to ensure the representation and implementation of their interests at the national and international level, promoting sustainable development and growth of the Latvian financial sector.

But our ambitions don’t end there.

With our regional partners, we are

build a robust, sustainable, and inclusive

also focused on how to enhance the vis-

fintech ecosystem that attracts talent,

ibility of the Baltics as a key player in the

fosters innovation, and provides ample

global fintech scene. A prime example

opportunities for all stakeholders.

of this regional collaboration is the Baltic

We invite new players—whether

Fintech Days — a unique event that will

they are entrepreneurs, investors, or

bring together the fintech ecosystems of

innovators—to join us on this excit-

Latvia, Estonia, and Lithuania. This event

ing journey. Together, we can build a

reflects our shared vision of creating a

future where Latvia not only thrives

sustainable, competitive, and dynamic

as a fintech hub but also serves as a

environment for financial technology

model for other nations striving to cre-

in the region. By uniting the expertise

ate dynamic and sustainable financial

and resources of all three countries, the

ecosystems.

Baltic Fintech Days will showcase inno-

Join us, and you could be the next

vations emerging from our ecosystems,

success story in this thriving community!

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How the Baltics are Quietly Changing Global Financial Services A decade ago, if you had asked most people to name the world’s leading hubs for fintech innovation, you would have heard answers like Silicon Valley, London, or Singapore. But today, there’s another name that’s impossible to ignore: the Baltics.

Lithuania, Latvia, and Estonia have quietly built one of the most vibrant fintech ecosystems in the world, revolutionizing the way payments work.

By Chris Crespo

J

uha Sillanpää, Group Country

have taken a forward-thinking approach,

backed by a robust digital identity sys-

Manager, Finland and Baltics

making it easier for companies to test,

tem. This approach is shaping the future

at Visa, sees the region as a “hot-

refine, and scale new payment solutions.

of global business operations.

bed of payments innovation” and

And let’s talk about the startups. The

The Baltics have fully embraced

an example for the rest of the world. So

Baltics have become a launchpad for

blockchain technology, using it for

what makes the Baltics so special? And

globally recognized fintechs. With gov-

everything from financial transactions to

what can other markets learn from this

ernment-backed incubators, an influx

secure digital contracts, driving trans-

rising fintech force?

of venture capital, and a strong talent

parency and efficiency.

pool, the region’s fintech ecosystem is

Unlike other regions where regulation

Why the Baltics Stand Out

booming. Companies are scaling fast,

can feel like a roadblock, the Baltics use

Walk into a café in Vilnius, and you’ll like-

setting trends that the rest of the world

regulatory sandboxes to their advan-

ly find people tapping their phones to

is watching closely.

tage. These controlled environments

pay without thinking twice. Digital pay-

allow fintechs to test their products in

ments are second nature here, thanks

Lessons from Baltic Innovation

real-world conditions while ensuring

to a highly educated and tech-savvy

Imagine sending money to a friend and

compliance. It’s a win-win for both inno-

population. This has created the perfect

having it land in their account instantly.

vation and consumer protection.

environment for fintech solutions to take

That’s already a reality in the Baltics. Re-

“Innovation thrives in environments

al-time payments are the norm, setting a

where businesses can test, learn, and

high standard for markets still struggling

iterate quickly. The Baltics have nailed

with slow bank transfers.

this approach,” says Juha.

off at lightning speed.

But it’s not just about the people, it’s also about policy. “The Baltics have created a unique environment where

Then there’s Estonia’s e-residen-

fintech startups thrive,” says Juha. The

cy program, which has completely

New Players: Threat or Opportunity?

Baltics have a regulatory system that

changed the way business is done.

“With fintechs popping up left and right,

actively encourages innovation. Instead

Entrepreneurs from anywhere in the

you might expect Visa to see them as

of stifling fintech startups with bureau-

world can establish and run a company

competition. But that’s not the case”

cracy, governments and central banks

digitally, with secure online transactions

affirms Juha. Many of these newcomers

13

bring fresh perspectives, contributing to the overall evolution of payments. In fact, many of them end up becoming valuable partners, enhancing Visa’s services and improving the payment experience for everyone.

“Of course, competition is real. But rather than resisting change, Visa embraces it” he adds. The pressure from new entrants keeps everyone on their toes, driving continuous innovation and better solutions for businesses and consumers alike.

“At Visa, we don’t see fintechs as threats.

We see them as partners who can help drive the industry forward,” says Juha.

Innovation thrives in environments where businesses can test, learn, and iterate quickly.

The Baltics have nailed this approach.

Juha Sillanpää Group Country Manager, Finland and Baltics at Visa

Visa has a history of engaging with fintech startups, understanding

different continents to ensure that the

that fostering innovation helps drive

network operates every day of the year.

industry progress. By providing fund-

Just over the past five years, Visa

ing, expertise, and access to a global

has invested over €11 billion in tech-

network, Visa ensures that the most

nology, including to reduce fraud and

promising ideas don’t just stay ideas,

to enhance network security.

but that they become reality.

“Last year, Visa proactively prevented an estimated EUR 39 billion in global

Visa’s Role in Fintech Growth

fraud, contributing to our network’s

“Think of Visa as the backbone of fintech

fraud rates being among the lowest

innovation” says Juha. Its suite of APIs

rates of any payment method. However,

makes it easy for startups to integrate

I strongly and personally believe that

payment processing, fraud prevention,

in order to successfully combat fraud,

and other critical services, allowing them

we need ensure that we as an industry

to focus on what they do best, innovating.

collaborate closely to stay ahead of the

Scaling globally is a major challenge

cybercriminals,” Juha Sillanpää adds.

for startups, but Visa removes that bar-

At the same time, financial inclusion

rier with its vast infrastructure, enabling

remains a challenge, with millions still

fintechs to expand beyond their home

lacking access to digital payments.

markets and reach customers world-

Ensuring fintech solutions reach un-

wide with seamless payment options.

derserved communities is essential for

At the same time, navigating regula-

broader economic participation.

tions can be complex, but Visa’s deep

Cross-border transactions add an-

expertise in security and compliance

other layer of complexity, as different fi-

helps startups stay ahead of regulatory

nancial networks don’t always integrate

requirements while protecting them

smoothly, creating friction in global

from fraud and cyber threats. “Our role

payments. Meanwhile, the rise of digital

extends beyond payments, focusing on

currencies raises questions about how

enabling innovation,” says Juha.

they fit into traditional finance while

And for those just getting started,

maintaining security and regulatory

Visa’s Fintech Fast Track Program offers

compliance. “The goal is not just faster

crucial support to startups looking to

payments but also smarter, safer, and

navigate the complexities of scaling and

more inclusive payments,” says Juha.

regulation. It provides funding, mentorship, and strategic partnerships, helping

The Road Ahead

fintechs accelerate their growth and

The Baltics have proven that size

bring their solutions to market faster.

doesn’t matter when it comes to innovation. This small but mighty region

Juha Sillanpää Group Country Manager, Finland and Baltics at Visa

Challenges in Payments

is setting global benchmarks in pay-

As payments speed up, so do fraud

ments, and companies like Visa are

risks, requiring constant innovation to

ensuring that the momentum doesn’t

stay ahead of cybercriminals. Visa em-

slow down. “The payments industry is

ploys over 1 000 full time cybersecurity

evolving at lightning speed. The Baltics

specialists globally and operates 3

are at the forefront, and Visa is proud to

Cybersecurity Fusion Centres on three

be part of that journey,” says Juha.

14

Why Resilience is Your Next Competitive Edge In an era of digital banking and instant transactions, resilience in financial services has become a boardroom priority. Having launched full fintech infrastructures for financial services firms, I’ve seen first-hand how even minor disruptions erode customer trust and invite regulatory scrutiny.

By Ian Kalla, Head of Fintech at FinanceEstonia and Commercial Lead at XYB

have hammered home a clear

T

failure points: IT glitches, third-party

lesson: robust infrastructure

dependencies, and operational mis-

and operational endurance

steps. The impacts – frozen transactions,

are now essential for competitive

reputational damage, and regulatory

advantage. In a market that prizes

scrutiny – demonstrate the industry’s

reliability, resilience is emerging as the

growing systemic risks. Reliance on a

next big differentiator.

handful of critical IT providers means a

he past year’s disruptions

These incidents highlight common

single failure can ripple across instituOn-Paper Risks Turning into Reality

tions, raising concerns about financial

Recent high-profile outages have ex-

stability. In other words, a single outage

posed glaring resilience issues even in

at a key tech partner – or a botched

major banks. In early 2025, a third-party

software update – can quickly become

service failure left thousands of Cap-

everyone’s problem. The wake-up call

ital One customers unable to access

from these outages is loud and clear,

is how it elevates the treatment of

accounts or receive direct deposits. Over

and it has accelerated efforts to fortify

third-party tech partners. Financial firms

two dozen other financial institutions

operational resilience across the sector.

now must ensure that their software vendors, cloud providers, and other

relying on this provider were affected.

The same week, Barclays suffered

DORA and Its Implications

ICT suppliers adhere to the same high

a “technical glitch” that knocked out

The Digital Operational Resilience Act

resilience standards. Importantly, DORA

customers’ access to accounts for nearly

(DORA), in effect since January 2025, aims

introduces an oversight framework

24 hours. The timing could not have

to standardise resilience requirements

whereby if a tech provider is deemed

been worse – it hit on January payday,

across the financial sector. Covering

“critical” to the financial system, it can

leaving some people unable to pay bills

banks, insurers, and investment firms,

be directly supervised by EU regulators.

or withdraw wages. In October 2024,

DORA enforces stricter ICT risk manage-

This is a game-changer: major cloud

a Bank of America outage saw online

ment, incident reporting, and resilience

and core banking service providers

balances suddenly drop to $0 due to a

testing. This means banks and insurers

could find themselves under regulatory

widespread systems outage. Panicked

now need to prove they can prevent,

watch to ensure they don’t become

account holders flooded support lines

respond to, and recover from disruptions

single points of failure. In sum, DORA is

until the issue was resolved, illustrating

in a systematic way – no more ad-hoc

forcing a culture change: operational

how quickly a technical hiccup can es-

fire-fighting or hoping vendors never fail.

resilience is moving from box-ticking

calate into a consumer confidence crisis.

One of the biggest shifts under DORA

compliance to a strategic priority

15

Ian Kalla, Head of Fintech at FinanceEstonia and Commercial Lead at XYB

modernisation. Apart from that, we believe there’s plenty of room for further innovation around resiliency.

Collaboration for a Robust Financial Ecosystem At the FinanceEstonia DORA seminar on January 17, industry leaders from legal, audit, banking, and technology sectors discussed how financial institutions can work with service providers to implement resilience-first strategies. The consensus?

Resilience in financial services is a team sport. No single bank or provider can ensure stability alone – it requires coordination across the entire ecosystem.

Financial institutions must work closely with their technology vendors, cloud platforms, and fintech partners to identify single points of failure and design them out. This means jointly mapping out dependencies, sharing incident data, and coordinating on contingency plans. Likewise, fintech and tech providers need to proactively support their clients’ resilience goals – whether by adapting products to meet new compliance requirements or by participating in industry-wide drills and information-sharing schemes. When a critical outage hits, a well-coordinated response between a bank and its vendors can make the difference between a brief hiccup and a prolonged crisis.

As we look ahead, it’s clear that resilience is becoming an essential pillar of digital finance’s value proposition. Regulators have set the direction with DORA and similar rules, but it’s up to the industry to turn compliance into creativity.

The next generation of financial services will be defined not only by the features and rates on offer, but by the trust that

that’s jointly owned by financial institutions and their tech partners.

The next generation of financial services will be defined not only by the features and rates on offer, but by the trust that comes from consistent uptime and crisis-proof operations.

Ian Kalla Head of Fintech at FinanceEstonia and Commercial Lead at XYB

The Role of Fintech Enablers

– such as automated incident reporting

comes from consistent uptime and

and built-in compliance tracking – help

crisis-proof operations. Far from being

financial institutions meet regulatory

a hindrance, the new resilience regime

requirements seamlessly.

can become a driver of innovation.

Fintech enablers play a critical role in

Beyond raw infrastructure strength,

Forward-looking firms see DORA not

brewing resilience into their offerings.

fintech enablers are uniquely positioned

just as a compliance headache, but as an

Next-generation banking platforms are

to introduce resilience-oriented value

opportunity to streamline risk manage-

increasingly built with failover capa-

propositions. For instance in XYB, we’ve

ment and upgrade aging systems for the

bilities, automated resilience testing,

positioned the platform as a way for

digital age. By embracing collaboration

and modular architectures that allow

banks to modernise their core systems

– banks working hand-in-hand with

financial institutions to recover rap-

with no risk and zero downtime. The

fintech enablers – we can build a

idly from disruptions. For example,

component-based design lets banks

financial ecosystem that doesn’t just

cloud-native core banking platforms

upgrade piece by piece, rather than via

survive disruptions but thrives through

now offer real-time redundancy,

risky “big bang” migrations. This ap-

them. In that sense, resilience is more

ensuring continuous service in case

proach directly addresses one historical

than a defensive strategy; it’s the new

of outages. This minimises downtime

cause of outages – the complexity of

competitive edge that will separate the

risks compared to legacy infrastructure.

legacy cores – by enabling both com-

leaders from the laggards in the financial

Similarly, embedded resilience features

ponent optionality as well as progressive

services arena.

16

Global Wallet AstroPay Opens Copenhagen Hub for European Expansion In 2020, AstroPay was only a checkout solution - a button on a web page that allowed you to pay for items. Since bringing on new CEO Marc Sacal - whose extensive financial background includes co-founding Arcus, a payments company that raised over $20 million in VC funding before being acquired by Mastercard, as well as experience at Goldman Sachs—AstroPay has grown into a global wallet with millions of users worldwide.

By R. Paulo Delgado

T

he company’s vision is to

tech investment into Denmark in 2023

make cross-border finance

made up a total of 37.5% of all fintech

as easy as possible, with a

investments in the Nordics for that year.

particular focus on digital

The number of people working in fin-

nomads and freelancers who work internationally.

“Our ultimate goal is to build a global bank where access to financial services isn’t limited by the currency you use or where you live. The world is becoming increasingly digital, and we’re ensuring banking keeps up,” says Sacal.

Copenhagen will be AstroPay’s

The future of banking must be global-first, real-time, and currencyagnostic, ensuring that work, travel, and finance move seamlessly across borders. AstroPay is building that future.

European base Sacal strategically set his sights on Denmark, and specifically Copenhagen,

tech experienced 6X growth between 2015 and 2022, making fintech even larger than the insurance industry.

During Sacal’s time in Copenhagen, he grew impressed by the combination of strong work ethic and international culture in the city. Denmark’s central positioning is also favorable, attracting the best talent from the Baltics, Northern Europe, and Scandinavia.

The Institute for Management Devel-

Marc Sacal CEO, Astropay

for AstroPay’s European base because of

opment (IMD), an independent academic institution from Switzerland, prepares a global talent ranking report each year.

the zone’s “global-first” approach and its

top easiest country to do business in,

The report looks at Talent Competitive-

ability to attract global talent.

snatching the number one spot for

ness between 67 countries, based on

nine consecutive years. The country is

31 indicators and three categories. The

the international community there is

known for its highly innovative environ-

categories include how much the coun-

remarkable. Denmark’s compact size

ment and strong infrastructure.

try invests in talent development, how

“I lived in Copenhagen for a year, and

drives organic integration of people

Investments in fintech are booming

much appeal it has for overseas talent,

from all over the world, giving it an

in Denmark, with Q1 2024 attracting

and the degree of availability it has for

inherently global mindset and making it

more investments into fintech than the

competencies in the talent pool.

an ideal base for AstroPay,” he says.

entirety of 2023. Despite the risk-averse

When the World Bank ran its re-

attitude experienced globally in 2023

number five globally, beating Germany,

nowned Doing Business Report,

for fintech investment, Denmark still

the USA, and the EU average by far.

Denmark consistently ranked as the

outperformed its two neighbours. Fin-

In its 2024 report, IMD ranked Denmark

AstroPay also chose Denmark due

Marc Sacal CEO, Astropay

17

Merchants who sign up for AstroPay would be able to accept payments from AstroPay users, which Sacal says is much cheaper than card payments and other wallets like PayPal.

to its regulatory clarity and speed-to-

The problem with global banking today

links, QR codes, and wallet-to-wallet

in their own currency while the creator

market advantages, which will help en-

The global workforce is undergoing a

payments. It also supports a variety of

receives it in their currency.

sure compliance while quickly expand-

transformation, says Sacal, with digital

local payment methods, and mer-

“Our go-to-market strategy, focus, and

ing financial services responsibly. The

work untethering people from tradi-

chants can accept AstroPay directly

design is very much focused towards

company has secured an EMI license in

tional financial systems. Today, 28% of

on their websites.

that user profile,” he says.

Denmark, enabling it to offer key financial

the global workforce is remote, up from

services under strict regulatory oversight.

just 12% a decade ago, and 1.5 billion

Plenty of room for new players

Seeking partnerships

The EMI license allows AstroPay to

people are freelancers, half of whom

AstroPay’s entrance into a market

AstroPay is actively seeking new

work with clients across borders.

with several dominant players such

partners in three distinct categories:

as Revolut and Wise is bold. However,

Banking, merchants, and enablers.

operate within a well-defined framework, ensuring transparency and con-

This shift is fueling an explosion in

sumer protection. For services beyond

demand for borderless financial ser-

Sacal believes that plenty of room

The banking partners will allow

the EMI’s scope, AstroPay will collabo-

vices. Meanwhile, 18% of global GDP is

exists for new entrants. “The total

AstroPay to provide further banking

rate with licensed banking-as-a-service

now digital, reflecting a world where

addressable market of this space is

services, such as IBAN accounts.

providers, maintaining full adherence to

people increasingly earn, spend, and

huge. It’s like saying that Barclays and

European financial regulation.

move money online.

HSBC can’t co-exist. That’s impossi-

would be able to accept payments

ble,” he says.

from AstroPay users, which Sacal says

Sacal was also impressed by what he

“However, financial infrastructure

Merchants who sign up for AstroPay

is much cheaper than card payments

calls Denmark’s “design thinking” and

remains outdated - global payments

how products in the region focus on

are slow, costly, and riddled with

- the digital nomad and international

usability and seamless integration. “The

friction. The future of banking must be

freelancer. Every aspect of its design

Under the enablers category fall

place we intend on winning is in Ast-

global-first, real-time, and currency-ag-

and experience aims to address this

any partners interested in creating

roPay’s design features, and how beauti-

nostic, ensuring that work, travel, and

segment of users more heavily than

something of mutual value. For exam-

ful and seamless the app is,” he says.

finance move seamlessly across bor-

any other player.

ple, AstroPay recently partnered with

The statement is reminiscent of

ders. AstroPay is building that future,”

Steve Jobs’s approach, whose relent-

says Sacal.

less search for beautiful design and

AstroPay’s global wallet allows

excellent user experience has often

users to send money to each oth-

been cited as the driving force behind the iPhone’s success - and Apple’s turnaround from a struggling company into the global empire it is today.

AstroPay also brings a unique focus

“We’re focusing a lot on our ideal cus-

and other wallets like PayPal.

payroll and HR giant Deel so that Deel

tomer profile, the digital nomad. These

can pay contractors and employees

are usually content creators or freelanc-

using AstroPay.

ers working abroad,” Sacal says.

“We did a soft launch in Denmark

er easily and rapidly in more than

He describes an example of a content

and we are now ready to start building

10 currencies. The company offers

creator streaming live on a platform who

for Europe. Once we have the partner-

personal and business solutions, fa-

then puts up an AstroPay QR code to ac-

ships in place, we’ll start the marketing

cilitating payments through payment

cept payments, allowing people to pay

machine in Europe,” he says.

18

Transforming Finance: Payhawk’s Impact on the Baltics and Beyond Business finances are messy. Scattered employee spending, manual data entry, and managing cross-border payments can bury finance teams in paperwork and complexities. Even worse, without real-time oversight, small issues like untracked expenses or unexpected exchange rate fees can snowball into massive outlays.

Lithuania, Estonia, and Latvia leveraging supportive regulations and digital-first mindsets. We’re seeing some key shifts: widespread AI adoption in financial services, the rise of embedded finance, and accelerating open banking innovation. In this regard, Payhawk is focused on collaborating with organizations like Unicorns Lithuania to share our unicorn experience while helping local companies implement advanced financial management tools.

Can you share a specific customer success story?

DECATHLON Bulgaria’s expansion from one store to twelve locations created significant expense management challenges. After implementing Payhawk, their accounting department now saves two full working days per month on expense processing. They’ve reduced emergency payment requests by equipping managers with corporate cards with preset monthly limits.

How do you ensure you stay ahead in a rapidly evolving fintech market?

By R. Paulo Delgado

P

The Baltic region is emerging as a European fintech powerhouse, with

Our approach to innovation is what we call ‘pragmatic innovation’—we balance

ayhawk solves these issues by

technological possibilities. Second, our

entire financial ecosystem—from

breakthrough technology with practical

providing spend management

ERP integrations—built meticulously

transaction capturing and document

impact for finance teams. This starts with

solutions in a unified platform

from the start—create seamless data

processing to policy enforcement and

deep customer understanding. We

that helps companies manage

flow between financial systems that

master data management—and

maintain this through quarterly hack-

legacy solutions simply can’t match.

integrated card issuance that elimi-

athons where even junior developers

We spoke with Saulius Žlabys, VP

Third, our rapid innovation cycle allows

nates shared office cabinet cards.

can pitch ideas directly to our CTO. We

Payments and Country Manager at

us to consistently outpace competitors

Payhawk Lithuania, about their solution,

with new capabilities that solve

How do you see the fintech landscape

gimmick but to solve genuine finance

customer challenges, and future plans.

emerging customer needs. Looking

changing in the Baltic region?

challenges.

their spending easily.

invest heavily in AI not as a marketing

ahead, we’re evolving from spend Tell us more about your company.

Payhawk was founded in 2018 with a clear mission: to simplify and streamline

management to comprehensive finance enablement with AI agents that automate manual financial processes.

business finance through innovative spend management solutions. We’ve

What are the biggest challenges your

grown from a small startup to a fintech

clients currently face, and how do you

unicorn serving businesses across

address them?

Europe, the UK, and the US. Our focus

Our clients face three critical

is on providing an all-in-one financial

challenges: First, the lack of real-time

solution that combines corporate cards,

visibility into company-wide spending.

expense management, and accounts

Second, disconnected financial

payable automation–essentially

systems create reconciliation night-

streamlining financial operations and

mares with receipts, transactions, and

payments under one roof.

approvals scattered across platforms.

Third, physical card management

What unique value does your company

remains surprisingly manual in many

bring to the fintech industry?

organizations. Payhawk addresses

First, our deep finance knowledge

these through a unified platform

enables us to build solutions that

offering real-time spend visibility,

address real-world challenges, not just

AI-enabled workflows that manage the

Saulius Žlabys, VP Payments and Country Manager at Payhawk Lithuania

19

Lithuania’s Fintech Ecosystem: A Model of Public-Private Synergy Driving Global Expansion How did a small country with fewer than 3 million people transform into one of Europe’s most dynamic fintech hubs? Was it a stroke of luck, or was it a carefully crafted strategy?

investments. A perfect example is TransferGo, which in 2024 secured a

Kamilė Šulcaitė

$10 million investment from Taiwa-

Head of Strategic Partnerships, Rockit Vilnius

nia Capital Management. Backed by Taiwan’s National Development Fund, this funding will accelerate TransferGo’s expansion and further enhance

By Kamilė Šulcaitė

T

en years ago, Lithuania’s

tools to launch, scale, and expand in-

real-time cross-border payments. The

for blockchain and digital asset firms.

deal highlights Lithuania’s reputation

Companies like Wavebridge and Dafin

as a global fintech magnet.

Labs are already setting up shop here,

At the same time, major global

fintech scene was almost

ternationally. At ROCKIT, we’ve played a

players like Revolut, Payhawk, Paystrax,

non-existent, with fewer than

key role in this evolution, fostering col-

Shift4, Tribe Payments, Curve, SumUp,

50 companies in the sector.

leveraging Lithuania’s innovation-driven yet compliance-focused approach.

laboration between startups, investors,

and Railsr have established operations

Balancing Innovation and

Back then, Lithuania was not seen as a

and institutions to create a dynamic

in Lithuania, drawn by its strong regu-

Regulation for Growth

fintech destination, and global players

and globally competitive fintech hub.

latory framework and fintech-friendly

A key reason why fintech thrives in Lith-

infrastructure. Meanwhile, homegrown

uania is its ability to balance security

rarely considered it for expansion. So, what changed? Today that landscape

Public and Private Sectors Driving

champions like Ondato, SME Bank,

with business-friendliness. In many

has transformed, with nearly 280 fintech

Innovation Together

TransferGo, AMLYZE, Vinted, Heavy Fi-

markets, compliance is often seen as

companies now operating in Lithuania

What makes Lithuania stand out? It’s the

nance, ConnectPay and Paysera contin-

a challenge, but Lithuania has turned

and serving approximately 10% of the EU

fact that the public and private sectors

ue to scale, proving that local startups

regulatory excellence into a competi-

market, attracting international players

never looked like separate worlds. Since

can grow into global powerhouses with

tive advantage.

and investors to its thriving ecosystem.

2016, when fintech started booming

the right support.

This transformation was the outcome

here, it became evident that these two,

Institutions like the Bank of Lithuania, Financial Crime Investigation Service

of a bold national strategy that priori-

traditionally distinct areas could work

Expanding Across Asia and the U.S.

(FNTT), the Ministry of Finance, the

tized fintech as a core driver of econom-

as one well-synchronized team. This

Lithuania’s fintech ambitions extend

Centre of Excellence in Anti-Money

ic development. At the center of this

partnership is fast, agile, and adaptable,

beyond Europe. Recognizing the im-

Laundering (AML Center), and Fintech

strategy was the clear understanding

just like a high-growth startup but with a

portance of expanding into the world’s

Hub LT ensure that Lithuania remains

that Lithuania had the potential to create

serious financial jurisdiction’s long-term

biggest financial markets, the country

one of the safest and most transparent

a digital-first, innovation-driven financial

strategy and regulatory foresight.

has strengthened partnerships in both

jurisdictions for fintech operations. This

Asia and the United States.

focus on security has attracted leading

sector, and making it a reality required

The Bank of Lithuania, together with the Ministry of Finance, created one

In March 2024, Lithuania officially

fintech players, reinforcing Lithuania’s

of the most progressive and busi-

entered Silicon Valley with the launch

position as one of the most trusted

government support, and entrepre-

ness-friendly regulatory environments

of InnoHub - an initiative by Innovation

fintech destinations in the EU.

neurial ambition, Lithuania converted

in Europe. Agencies like Invest Lithu-

Agency Lithuania. This hub is designed

For fintech companies looking to scale,

fintech into a key pillar of its national

ania and Innovation Agency Lithuania

to connect Lithuanian fintech startups

disrupt, and conquer global markets,

economic growth plan, ensuring that it

actively attract fintech players, while

with U.S. investors, accelerators, and

Lithuania is the place to be.

wasn’t just an emerging industry but a

the Memorandum of Understanding

leading financial institutions, paving

core pillar of its financial sector.

both speed and decisive action.

By aligning regulatory openness,

on National Fintech Guidelines for

the way for deeper collaborations and

With the Bank of Lithuania orches-

2023-2028 ensures a clear, open, and

cross-border expansion.

trating the efforts, Lithuania introduced

stable regulatory framework for busi-

an accessible and fast-track licensing

nesses to thrive.

process, setting a strong foundation for

Meanwhile, South Korean fintechs, especially crypto companies, are increasingly choosing Lithuania as their

fintech businesses to operate across

Homegrown Success Powering

EU base. Thanks to its precise regula-

Europe. This regulatory foresight,

Global Expansion

tory alignment with MiCA (Markets in

combined with state-backed innovation

Lithuania is attracting fintech talent.

Crypto-Assets Regulation), Lithuania

programs, provided fintechs with the

It is also securing major international

is fast becoming a go-to destination

About Kamile Sulcaite is the Head of Strategic Partnerships at ROCKIT, fostering collaborations across the Baltic fintech ecosystem, uniting innovators, industry leaders, and policymakers to drive growth.

20

MAGNETIQ BANK setting the standard of future B2B banking Magnetiq Bank is redefining the landscape of B2B banking, particularly within the FinTech and e-commerce industries. The bank’s mission is to become the first choice for FinTech payment institutions, serving as a strong partner and bridging the gap between regulators and FinTech companies. Built on the belief that banking should be simple, accessible, and efficient, Magnetiq Bank embraces the latest digital trends to provide a seamless and user-friendly experience.

By Jesper Henriksen

T

his transformation was

industry. Just a few months later, in

and the advancement of financial

initiated in December 2023

October 2024, Magnetiq Bank made

innovations. Our goal is to provide

following the acquisition by

history as the first Latvian bank to join

best-in-class service to our clients who

Latvia’s leading investment

Fintech Hub LT, demonstrating its ded-

require technologically advanced and

bank, Signet Bank AS, which became

ication to innovation and collaboration

visionary payment and banking solu-

the sole shareholder and parent

in the FinTech sector.

tions to help their business solidify and

company of AS Magnetiq Bank. In June

”Magnetiq Bank was established to

grow,” explains Jakub Więcław, chairman

2024, Magnetiq Bank became the first

address the increasing demand for

of the board at Magnetiq Bank and a

bank to join the Fintech Latvia Associ-

financial products and services tailored

seasoned financial and banking technol-

ation, reinforcing its role in the FinTech

to FinTech, e-commerce businesses,

ogy professional with more than

21

payment cards into mobile applications,

15 years of experience in driving FinTech innovation and strategic

leveraging their financial capabilities

business growth in Europe.

through Magnetiq Bank infrastructure.

This shift underscores the bank’s commitment to fostering financial innovations and enhancing the availability

Jakub Więcław Chairman of the board at Magnetiq Bank

of digital products in the banking sector.

Innovative Banking Solutions Magnetiq Bank distinguishes itself by offering a comprehensive suite of services designed to meet the unique needs of its clientele, including delivering knowledge and fostering relationships to navigate regulatory challenges effectively.

Other areas would be Banking as a Service (BaaS), which empowers

We recognize the critical importance of time-tomarket in the FinTech industry. That’s why we’ve streamlined our onboarding process, enabling clients to move from the initial meeting to a signed agreement in just one to two months.

Jakub Więcław

Electronic Money Institutions (EMIs),

This approach allows companies to offer banking services without directly managing the associated complexities, positioning Magnetiq Bank as a pivotal partner in such initiatives.

Unlike traditional banking models, Magnetiq Bank proactively monitors e-commerce transactions in real time.

This approach enables the bank to act as a partner rather than merely a service provider, as it plans to offer quick loans and working capital based on live transaction data. This daily monitoring ensures financial solidity and will provide clients with timely support to fuel their growth. ”At Magnetiq Bank, we believe in

to-Peer (P2P) lending platforms, and

access payment systems and introduce

constant evolution. We’re driven by

Crypto-Asset Service Providers (CASPs)

embedded financial services, position-

continuous development, combin-

by providing access to licensed bank-

ing themselves at the forefront of future

ing innovative and efficient financial

ing infrastructure. This allows these

banking trends.

solutions with cutting-edge technolo-

Photo: Nordea

Small Payment Institutions (SPIs), Peer-

businesses to launch, manage, and

The new direction within banking is

gy. Our goal? To unlock new potential

scale their products more effectively.

finding its way around the globe, where

and growth for our clients. That’s our

Furthermore, Magnetiq Bank delivers

companies from Starbucks to Uber and

commitment to modernizing financial

secure and efficient payment solutions

Shopify are embrasing the possibilities.

services,” Jakub Więcław, summarizes.

specifically tailored for e-commerce

The market has in international media

merchants and payment service pro-

been estimated to grow at a rate of 29

Strategic Expansion Plans

viders. These solutions facilitate trans-

pct. annually for the next 5 to 7 years.

Magnetiq Bank has outlined ambitious plans to expand its services within

actions in over 100 currencies, enabling global reach and enhancing operational

Embedded Banking Services and

Poland and the Baltic regions over

efficiency. Finally, to ensure the safety

a Partner Approach

the next 12 months, with aspirations

of client funds and build trust, Magnetiq

The bank envisions a future where large

to penetrate other European markets

Bank provides segregated accounts,

corporations will be even more prone

subsequently. The bank’s focus on

keeping these funds separate and pro-

to enhance customer loyalty through

quality, regulatory compliance, and

tected in accordance with regulatory

embedded banking and credit card

a comprehensive service portfolio

requirements.

services. For instance, via integration of

positions it well to attract significant players in the FinTech industry.

Rapid Onboarding and Integration “At Magnetiq Bank, we recognize the critical importance of time-to-market in the FinTech industry. That’s why we’ve streamlined our onboarding process, enabling clients to move from the initial meeting to a signed agreement in just one to two months—far faster than the 5-7 month industry average in the Baltics. Our deep expertise ensures a seamless and efficient experience,” says Jakub Więcław.

To further ensure a seamless experience, Magnetiq Bank offers an almost DIY product through APIs, allowing clients to connect with minimal assistance from the bank. While customisation is available, the primary focus is on simple integration, enabling faster deployment than competitors. Companies leveraging Magnetiq Bank infrastructure can

About Magnetiq Bank, a Latvian bank, is dedicated to meeting the unique needs of FinTech, startups, and e-commerce service providers.

We offer banking infrastructure, segregated accounts, and payment solutions to support your business growth. Our goal is to foster the development of the startup and e-commerce sector by leveraging innovative technologies and providing exceptional customer service. As a part of the Signet Bank group, our sole shareholder is Signet Bank AS – the leading investment bank in Latvia, which is committed to financing local entrepreneurs and attracting investments for their businesses.

Despite the relatively small population of approximately 6 million in the Baltics, the region’s FinTech sector is burgeoning, and Magnetiq Bank is poised to support and capitalize on this growth.

“It is hardly an exaggeration to claim that Magnetiq Bank is setting a new standard in future banking by aligning its services with the evolving needs of FinTech and e-commerce businesses.

Through innovative solutions, rapid onboarding, and a client-centric approach, the bank is not only addressing current market demands but also anticipating future trends in the financial industry. As it expands its footprint across Europe, Magnetiq Bank is poised to become a leading partner for businesses seeking advanced and reliable banking solutions,” concludes Jakub Więcław.

22

ZTL Simplified B2B Payments in the Nordics.

Now, It’s Ready to Scale.

Six and a half years ago, the founders of ZTL recognised that B2B payment solutions were broken. Whereas consumer payments had advanced tremendously, the same couldn’t be said for payments in businesses.

By R. Paulo Delgado We decided to rebuild

remittance agreements with their banks

payments from the ground

and can get up and running in minutes.

up, and our focus has been

Although a cost-saving factor exists,

the same ever since we began,” says

the greater appeal is the immense

Andreas Bjerke, CEO and Co-Founder of

reduction of complexity, errors, and

ZTL, a payments facilitator focusing on

wasted time.

B2B payments in the Nordics.

The company’s slogan—“Make pay-

Additionally, system providers such as ERPs or accountants can start

ments your business”—is both literal and

offering their own embedded payment

figurative. It refers to how system owners

offerings. As a regulated financial in-

who want to embed a payment solution

stitution, ZTL has a fully-fledged KYC/

can take over the full B2B payment cycle,

AML solution in place, which alone

instead of depending on legacy banking

represents a massive barrier to entry

methods and infrastructure.

for anyone wanting to handle business payments directly.

The problem with traditional B2B

Andreas Bjerke CEO and Co-Founder of ZTL

payment systems

Transparent and competitive pricing

Traditionally, system owners like ERPs

ZTL also offers highly competitive rates,

have been mere redistributors of bank

especially in cross-currency payments,

payment services. Companies must

which rival banking rates by far. “You

subscribe to bilateral and costly remit-

need a PhD these days to understand

offering is ZTL’s forex rate lock-in for

tance agreements with banks that follow

bank fees. There’s no transparency on

invoices with a forward maturity date.

a time-consuming onboarding process.

your bank statement. At the bottom,

No pre-funding or cash collateral is re-

stability and excellence in its prod-

You need technology,” says Bjerke.

The company has focused heavily on

“In some cases, companies must

it says, ‘Bank costs,’ and you have to

quired to secure a rate for a future-dat-

uct for the last 6.5 years. By building

even send information by physical mail,”

especially go to the bank to get any

ed payment. The payer simply accepts

a cloud-native infrastructure, ZTL

says Bjerke.

breakdown of those costs,” says Bjerke.

the forecasted rate, and ZTL will honour

remains agile and able to handle high

On the contrary, ZTL’s pricing is trans-

it. ZTL then executes the payment at

transaction volumes without significant

remittance agreement, it’s locked into

parent, and it’s possible to see the exact

this rate with zero fees and only adds a

increases in overhead.

that bank’s pricing structure, including

financial implications of any transac-

tiny markup on the rate itself, which yet

tions down to the last cent.

remains highly competitive.

Once the company receives its

the complex schedule of fees which, for the most part, are opaque and

One especially groundbreaking

expensive.

In the immediate future, ZTL is focused on ensuring a strong foundation in the Nordics. Beyond that, the

Built to scale from the beginning

company is looking at possible oppor-

Until ZTL came along, banks faced

ZTL is fully operational in Sweden,

tunities in the data market, considering

little competition in this space, unless

Denmark, and Norway. The company

the immense volume of transactions it

it was from other banks. Open Banking

built its technology from scratch as a

handles and the potential insight that

and PSD2 made it possible for a com-

fully cloud-native solution, meaning it’s

data could bring.

pany like ZTL to fill in the gap created by legacy systems.

One API for all B2B payments ZTL offers a toolkit of APIs that removes the complexity of B2B payments. Companies no longer need complicated

Legacy technology causes bottlenecks, so we went cloud-native from the start.

ready to scale.

“It’s very rewarding to be where we

“Legacy technology causes bottle-

are now, where everything is working.

necks, so we went cloud-native from the

We don’t spend a lot of time building

start. The typical modus operandi for a

new things on the platform. It’s now all

bank if they have a problem, such as an

about optimizing, calibrating, and

Andreas Bjerke

AML issue, is to recruit a hundred more

making sure it runs even more smooth-

CEO and Co-Founder of ZTL

people. That doesn’t solve the problem.

ly and scalably,” Bjerke says.

23

Introducing automation in Fintech companies 5 key steps Automation of infrastructure, software delivery and security is crucial for the Fintech industry to enable faster innovation and higher operational reliability. But how is the best way to do this when dealing with complex systems, large volumes of sensitive data and rigorous compliance requirements?

By Iver Integrate security throughout the

Niclas Karlsson VP Bank & Fintech at Iver

development process (DevSecOps)

4

By following DevSecOps principles, security can be built

into every stage of software development and delivery. Use automated code review and security testing tools as part of the CI/CD workflow. Automated scans of both code and infrastructure should be performed to detect vulnerabilities early in the development cycle.

Ensure continuous improvement and adaptation

5

Automation is an ongoing process. It is important to

continuously evaluate and improve automation strategies. Regular review of tools, processes and security measures is necessary to adjust and optimize workflows based on technological advances and regulatory changes.

A

utomation plays an import-

security strategy. Identify repetitive

all environments, development, test

ant role in minimizing the risk

manual processes and other bottle-

and production, are consistent and

of human error in an environ-

necks that can be automated, and

properly documented.

ment where regulations and

analyze how security is managed at

security requirements are strict.

different levels, from code to network.

automated software delivery

Niclas Karlsson, VP Bank & Fintech at Iver, has gathered some important

Implement Infrastructure

steps to get started with automation as

as Code (IaC)

a Fintech company.

Introduce CI/CD pipelines for

2

3

The next step is to automate the software delivery process by

To automate infrastructure, you

implementing Continuous Integration/

should implement an Infrastruc-

Continuous Delivery (CI/CD). Here, there

Evaluate current infrastructure

ture as Code (IaC) system. Using

are specific tools you can use to integrate,

and workflows

specific tools, infrastructure can be

test and deploy new code automatically.

Start by conducting a thorough

described in code form, making it easy

Automated tests, including unit tests,

review of the current infrastruc-

to create, manage and scale infrastruc-

integration tests and security tests, should

ture automatically. It also ensures that

be part of the pipeline to minimize risks.

1

ture, software delivery process and

About Iver is a leading Nordic full-service provider of cloud-based IT services with cutting-edge expertise in operations, cybersecurity, cloud and innovation. Iver helps Fintech companies to effectively get started with automation. The strategy is customized based on specific business needs and the industry’s strict regulations to ensure that processes are scalable, reliable and secure.

24

Banking at Speed: The Acceleration of Innovation in Financial Services

25

My writing this year has centered on the unprecedented acceleration of innovation, particularly in technological capacity—processing power, storage, and bandwidth. Futurist Brian Wang recently declared that we are “on the event horizon of the singularity” and that “we will get 4060 years progress in about 6 years.” His analysis (www.nextbigfuture. com/2025/02/on-the-event-horizon-of-the-singularity.html) offers compelling calculations supporting this projection.

By Dharmesh Mistry

Dharmesh Mistry

H

owever, as I’ve often empha-

existing knowledge. For early bank-

as bankers could physically travel

sized, understanding the past

ing, this meant the standardization of

between financial centers.

provides crucial context for

accounting principles and the wider

the future. I believe it’s essen-

dissemination of financial concepts that

Digital Computation and

had previously been guild secrets.

Connectivity

tial to examine why progress is accel-

The emergence of silicon processors

erating at such a remarkable rate—and why even Wang’s bold predictions might

Physical Connectivity

in the 1960s, followed by the internet,

underestimate what we’ll achieve before

The industrial revolution brought

fundamentally changed our relation-

2030, especially in financial services.

transformative transportation tech-

ship with information. Physical distance

nologies—steam engines, railways,

ceased to be a barrier to collaboration

Knowledge Preservation and

automobiles, and eventually aircraft.

as we gained the ability to process

Democratization

These innovations enabled the phys-

and share information globally. The

The printing press in the 1440s rev-

ical movement of both ideas (through

banking sector was among the earliest

olutionized information storage and

books and publications) and innova-

adopters of this digital revolution—

dissemination. Before Gutenberg,

tors themselves. For banking, this era

from the first ATMs and electronic

knowledge was constrained by labo-

saw the birth of modern financial in-

payment systems to sophisticated

rious manual copying onto scrolls and

stitutions capable of operating across

trading algorithms. Core banking

parchment. Mass production of books

continents. Branch banking expanded,

systems digitized customer accounts

dramatically expanded literacy, creat-

international wire transfers became

and transactions, while market data

ing a broader foundation for innovation

possible, and the foundations of a

became available in real-time rather

by enabling more minds to build upon

truly global financial system emerged

than with daily delays.

26

Ubiquitous Digital Access

scoring and fraud detection to person-

finance (DeFi) protocols are recreat-

The proliferation of fiber optics,

alized financial advice and automated

ing core banking functions—lending,

mobile broadband, and smartphones

customer service. These systems can

borrowing, trading, insurance—without

has connected billions of individuals

analyze patterns in financial data that

traditional intermediaries.

worldwide, creating a truly global col-

human analysts might never detect,

laborative network. For banking, this

identifying both risks and opportu-

transformation has been profound—

nities with unprecedented precision.

mobile banking has reached remote

Banking, fundamentally an information

villages where physical branches nev-

business, is being reimagined through

er existed, creating financial inclusion

this intelligence lens.

on an unprecedented scale. Real-time

We no longer live in a world where financial innovation depends on the occasional breakthrough product or service.

For banks, this presents both existential threats and extraordinary opportunities.

Those that adapt quickly could become infrastructure providers for this new financial ecosystem, securing their relevance in a radically different landscape. Those that resist may find their core value proposi-

payments and cross-border transfers

The Reinvention of Money: Distributed

that once took days now complete

Ledgers and Digital Assets

in seconds. The COVID-19 pandemic

Perhaps the most profound transfor-

accelerated digital adoption in banking

mation underway is the reinvention

by years, demonstrating how connec-

of money itself through distributed

reconciling transactions. Distributed

Growth in Banking

tivity could dramatically transform

ledger technology. Throughout history,

ledgers create consensus through

After decades of Moore’s Law, the

consumer behavior and service deliv-

money has evolved from physical

cryptographic protocols, potentially

doubling of computational power pro-

ery models.

commodities to paper representa-

eliminating the need for many traditional

duces exponential leaps that dwarf

tions to digital entries in centralized

banking functions while dramatically

the incremental increases of previous

Intelligence Amplification

databases. Now, we’re witnessing the

reducing settlement times and costs.

eras. In banking, we’ve moved from

We stand at the threshold of an intel-

emergence of truly digital native as-

Central Bank Digital Currencies

batch processing of transactions to

sets built on blockchain technology.

(CBDCs) are accelerating this trans-

real-time settlement, from quarter-

ligence revolution. Today’s AI systems,

Dharmesh Mistry

tions systematically unbundled by more agile competitors and protocols.

Exponential vs. Incremental

primarily housed in centralized data

This evolution represents more than

formation, with major economies

ly financial reviews to continuous

centers, mirror the mainframe com-

a technological shift—it’s a fundamental

developing sovereign digital currencies

monitoring, from statistical models

puting paradigm of decades past. Yet

reimagining of financial infrastructure.

that combine the programmability of

updated monthly to machine learning

AI capabilities are rapidly dispersing

Traditional banking relies on centralized

cryptocurrencies with the stability of

systems that adapt in real-time.

into banking applications—from credit

ledgers with trusted intermediaries

fiat money. Meanwhile, decentralized

This acceleration affects every

27

banking domain—payments, lending,

have responded by investing in agility

investing, risk management, and cus-

through modular architecture, API-driven

tomer experience. More significantly,

services, and cross-functional teams.

However, the current pace of change

financial technology is converging with

tures that keep pace with techno5.

Banking faces a profound choice:

logical evolution

retreat to core functions protected by

Data as Core Asset: Moving be-

regulation, or embrace this technologi-

yond data as a byproduct to data

cal acceleration to create financial ser-

advances in other fields: biometrics

demands more than agility alone.

as a strategic resource that appre-

vices that are more inclusive, efficient,

enabling seamless authentication,

Banks must develop “technological

ciates rather than depreciates with

personalized, and embedded in daily

quantum computing threatening cur-

antifragility”—the capacity to actually

use (moving beyond software IP)

life than anything previously possible.

rent encryption while enabling new risk

benefit from disruption rather than

models, and augmented reality creat-

merely survive it. This means we need:

Traditional banking horizon planning—

help create a financial ecosystem that

ing immersive financial interfaces.

1.

Continuous Innovation Labs:

often structured in 3-5 year strategic

truly serves all participants in ways

Establishing permanent innova-

cycles—must evolve into a continuous

we’re only beginning to imagine.

eration, I question whether Wang’s

tion teams with the freedom to

approach that integrates innovations in

The financial sector must recognize

dramatic predictions are actually too

experiment without immediate

real-time. Financial institutions can no

that we’re not merely experiencing faster

ROI pressures

longer wait for established technology

change—we’re experiencing a funda-

Ecosystems Rather Than Products:

roadmaps to unfold predictably.

mental transformation in how money,

Given this compounding accel-

conservative for banking. We may witness the transformation of finan-

2.

Those that choose the latter path may

Building platforms that exter-

cial services within this decade more

value, and trust operate in a digitally

profound than all the changes of the

nal developers can build upon,

The New Banking Paradigm

previous century combined.

extending capabilities beyond

We no longer live in a world where finan-

internal resources driving continu-

cial innovation depends on the occasion-

ous innovation

al breakthrough product or service. Tech-

Strategic Implications for

Adaptive Regulation Partnerships:

nology itself can now perform much of

In recent decades, banking technology

Working proactively with regula-

the cognitive heavy lifting that previously

has often resembled a game of leap-

tors to develop frameworks that

required rare human insight. The primary

frog—institutions that missed leadership

protect consumers while enabling

limitations facing banking today are not

in one innovation cycle (like early internet

innovation

computational or technical—they are

Talent Transformation: Reimag-

limitations of imagination, organizational

the next (mobile banking), benefiting from

ining workforce development to

culture, and collective will to harness

hindsight. Most forward-thinking banks

create continuous learning cul-

these accelerating capabilities.

Financial Institutions

banking) could overtake competitors in

3.

4.

accelerated world.

About Dharmesh has 35 years experience in banking technology and innovation. He has both worked inside banks driving vision and innovation as well as outside as a serial entrepreneur, investor and writer.

28

ConnectPay Turns Payments into Flows ConnectPay is a licensed EMI in Lithuania whose purpose is embodied in its name— connecting anything payment-related for its customers, in any way possible.

By ConnectPay We’ve essentially built

card issuing (including loyalty cards or

chant and a customer, or an investor

in-house tech for every

fan cards), acquiring, or open banking.

and a borrower,” says Galdikas. Conect-

service that an EMI is

“ConnectPay closes the payment

Pay achieves this by creating tech that

allowed to offer, and we help our

loop, thus significantly reducing costs

“just works,” and which basically any

customers connect those up in whatever

of inter-ecosystem transactions for that

entity can use inside its platform.

way suits them best,” says Marius

entity,” says Galdikas.

Galdikas, CEO of ConnectPay.

Unlike other backend fintech providers, ConnectPay has a strong focus on

Payments as components

businesses that don’t necessarily have a

embedded finance for businesses in

ConnectPay operates through a lens of

fintech connection, such as online mar-

various sectors, including other fintechs.

“payments as components”—modular,

ketplaces or sports clubs with a fan base.

It offers solutions for loyalty programs,

scalable functionalities that can be

It looks for entities with a user base of

crowdfunding, and even sports clubs—

seamlessly integrated into an app or

40,000 or more, at which point that entity

pretty much any entity that hopes to

platform as the business grows.

would start to see significant savings from

integrate some form of payment into its

“We want to turn payments into an ac-

using an in-house payments solution.

app or website. Solutions might include

tual commodity, making any transaction

accounts with multi-currency support,

frictionless, whether it’s between a mer-

The Lithuanian fintech focuses on

By closing the payments loop, clubs can save on interchange fees and

29

We want to turn payments into an actual commodity, making any transaction frictionless, whether it’s between a merchant and a customer, or an investor and a borrower.

Marius Galdikas CEO of ConnectPay

ConnectPay additionally handles all KYC

over competitors that rely too heavily

and compliance issue processes as part

on vendors. An overreliance on third

of their standard offering. “It all operates

parties can significantly slow a com-

under our license, so we’re extremely

petitor’s ability to innovate and re-

careful to ensure the transactions are

spond to unique customer needs.

compliant,” says Galdikas.

“That’s why we decided from the start

For crowdfunding and other alternative

we can tweak any tool for any custom-

all the plumbing for fund movements.”

er at any time,” says Galdikas.

ConnectPay’s technology onboards investors and project owners, captures funds from investors, transfers them to project owners once fully funded, and facilitates interest and repayment flows back to investors.

Offering what banks can’t

chargeback risks while also gaining

ConnectPay fills a gap that traditional

insight from fan spending data. That

banking can’t—the area of fast trans-

aggregated data can then help the

actions. “A bank’s primary business is

club—or any business—make better

lending. They take in money and lend it

decisions regarding what its customer

elsewhere to earn interest. Banks make

base is interested in.

money when they hold your money, not when it flows,” says Galdikas.

A one-stop solution in Europe

Banks have little incentive to invest

ConnectPay, one of the top four EMIs in

heavily in tech that facilitates high-ve-

Lithuania, is passportable across the EEA,

locity fund movements, which is why

allowing it to serve any European entity. It

companies like ConnectPay can capture

can act both as an issuer and an acquirer

market share in this sector.

for online transactions.

For all embedded finance clients,

to do everything in-house—because

finance platforms, ConnectPay “does

ConnectPay has also built its entire tech stack in-house, giving it an edge

About ConnectPay is an all-in-one financial platform for online businesses, offering embedded financial solutions with built-in compliance. Its wide range of modules include SEPA and SWIFT payments, multi-currency IBAN accounts, wallets, Banking-as-aService, white-label debit cards, and merchant services. A smooth onboarding process, customized client solutions, and a single set of APIs enable businesses to utilize innovative payment solutions to meet the needs of their digital customers. ConnectPay holds an EMI license, issued by the Bank of Lithuania, and is a member of the monetary authority of the Eurozone.

Marius Galdikas CEO of ConnectPay

30

Unbreakable, The Financial Frontline of a Nation at War

By Chris Crespo

31

Why We Are Telling This Story At Nordic Fintech Magazine, we are driven by a single belief: financial services are more than just a means to an end. They are the infrastructure that supports modern life, enabling people to work, pay, save, and build for the future. When the full-scale invasion of Ukraine began in February 2022, we, like the rest of the world, watched in shock. We saw images of destruction, of cities reduced to rubble, endless lines of cars headed towards the border with families fleeing their homes.

B

ut in the face of war, we

blackouts, 20-hour power outages,

also saw something else,

bombings, and air raid sirens, continue

an untold story. A different

to do their jobs well. And these stories

frontline. A battle fought not

deserve to be told to the world as ex-

with weapons, but with technology,

amples of resilience and the unbreak-

resilience, and human ingenuity.

able spirit of Ukrainians.”

As a fintech publication, we are not

The insights we gathered from those

first responders. We do not provide

on the frontlines of Ukraine’s financial

humanitarian aid or military assistance.

sector provided an unparalleled look

But we do have a platform. And when

into how, against all odds, the country’s

we saw how Ukraine’s financial system

economy continues to function, offer-

continued to function against all odds,

ing not just stability, but hope.

we knew we had to tell this story.

With the invaluable help of ProMon-

These are the unsung heroes of Ukraine’s resistance, the people

ey and its founder, Karolina Aleksan-

who ensured that citizens could still

drova, we were granted exclusive

buy food, businesses could still pay

access to interview key figures shaping

salaries, and soldiers on the frontlines

Ukraine’s financial resilience. These

could still receive donations. This is

included representatives from the

their story.

National Bank of Ukraine (NBU), PrivatBank, the country’s largest universal

Prepared for the Worst

bank, Oschadbank, the largest com-

When the first explosions rang out in

mercial bank, and iPay, one of Ukraine’s

the early hours of February 24, 2022,

foremost payment providers. We also

Ukraine’s financial sector faced an im-

spoke with Monobank, the nation’s first

mediate and unprecedented challenge.

and largest neobank, and Raiffeisen

Banks had to make split-second deci-

Bank Ukraine, the leading foreign bank

sions to protect their employees, secure

operating within Ukrainian territory.

financial data, and ensure that millions

“The war in Ukraine has been ongo-

of Ukrainians could still access their

ing for three years, and all this time,

money. In an instant, the country was

alongside the military front, Ukrainians

thrust into chaos, and the stability of its

have been carrying the financial front

economy depended on how quickly its

on their shoulders, keeping the econ-

financial institutions could adapt.

omy running and securing the stability

For the average Ukrainian, life

and future of the country,” Aleksan-

changed overnight. ATMs became

drova told us. “Who are these peo-

a focal point of anxiety, as people

ple? They are men and women who,

rushed to withdraw cash, unsure if the

every day, despite all the challenges,

banking system would hold.

Chris Crespo Head of Content at Nordic Fintech Magazine

32

Businesses, already reeling from the impact of the COVID-19 pandemic, suddenly found themselves in a wartime economy. Customers feared that electronic payments would fail, salaries would not be processed, and their life

Elena Lukyanchuk Head of Operations at Raiffeisen Bank Ukraine

savings could vanish. In this moment of uncertainty, Ukraine’s financial sector had to prove its resilience.

Before the first missile fell, before the world truly understood what was coming, some in Ukraine’s banking sector were already preparing.

“The stress and the preparation began a few months before,” said Elena Lukyanchuk, Head of Operations at Raiffeisen Bank Ukraine. “We started working on our business continuity plans in October 2021.

We created five scenarios, from localized conflict to full-scale invasion. Nobody believed in the worst-case scenario. But we prepared anyway.”

PrivatBank Branch in Kiev

That preparation would prove critical. When the invasion began, Raiffeisen already had backup teams in

became a common occurrence, some-

place, trained employees in alternative

times for hours or even days at a time,

roles, and had begun securing cloud-

the financial system faced a pressing

based infrastructure.

question: how could people continue to

Dmytro Musiienko, Board Member at PrivatBank, recalls a moment that highlighted the urgency of action. “I clearly remember the day a missile landed near our data center in Dnipro. That was when we realized, 18.5 million customers could lose access to their money in an instant. We had to act fast.”

Banks were forced to adapt rapidly.

In those early days, **branch networks had to be assessed for safety, alterna-

We created five scenarios, from localized conflict to full-scale invasion.

Nobody believed in the worst-case scenario. But we prepared anyway.

Elena Lukyanchuk Head of Operations at Raiffeisen Bank Ukraine

access their money? Without electricity, ATMs became useless, payment terminals failed to process transactions, and even bank branches, which traditionally served as a point of access to the financial system, became inoperative.

“To meet these challenges, we established Power Banking,” said Oleksii Shaban, Deputy Governor of the National Bank of Ukraine (NBU). “Power Banking has repeatedly proved its ability to

tive work setups had to be implement-

ensure payments were going through,”

operate and provide necessary services

ed, and emergency coordination with

said one senior executive who asked

to customers during blackouts.”

the National Bank of Ukraine became

to remain anonymous. “The war didn’t

Power Banking was a unified effort

critical**. The ability to maintain financial

pause financial obligations. If anything,

among Ukraine’s financial institutions,

transactions, ensure the safety of de-

it made them more urgent.”

coordinated by the NBU. The goal was

posits, and provide people with access to their funds became top priorities.

Despite the shock of the initial days, Ukraine’s banking professionals found

“War changes everything overnight,”

strength in their shared mission. “We had

said Anatoliy Rogalskiy of Monobank. “But

no choice but to keep going,” said Elena

people still need to buy food. Businesses

Lukyanchuk. “Because if we stopped,

still need to operate. The financial system

everything else would stop, too.”

had to work, no matter what.”

The challenge was not just opera-

How Banks Became a Lifeline

tional, it was psychological. Banking

During Ukraine’s Energy Crisis

professionals, many of whom had

One of the most pressing challeng-

families to protect and personal fears

es was power. When Russian missile

to manage, had to keep working

strikes targeted Ukraine’s energy

under the most extreme conditions.

infrastructure, entire cities were thrown

Many worked from bomb shelters or

into darkness, overnight. The hum of

improvised office spaces. “Every day,

electrical appliances was replaced by

we woke up to sirens, checked on

an silence, broken only by air raid sirens.

our loved ones, and then logged in to

In this new reality, where power outages

simple but ambitious: equip branches with generators, Starlink terminals,

Power Banking has repeatedly proved its ability to operate and provide necessary services to customers during blackouts.

Oleksii Shaban Deputy Governor of the National Bank of Ukraine (NBU)

Oleksii Shaban Deputy Governor of the National Bank of Ukraine (NBU)

33

PrivatBank Information on availability of Power Banking

Evgeny Velikanov General Manager of iPay

The war forced businesses and consumers alike to be more flexible with how they pay.

Evgeny Velikanov General Manager of iPay

National Bank of Ukraine coordinates

“Before the war, banks were not allowed

the financial system. The Power Banking

to store customer data outside of

initiative allowed us to keep payments

Ukraine. But with the growing risks of

running, even in the most difficult con-

missile attacks and cyber threats, the

ditions.” In areas where electricity was

National Bank made the unprecedent-

cut off for days or even weeks, these

ed decision to allow data migration

branches provided a sense of normalcy

abroad. This gave us the green light to

amidst the chaos.

move swiftly to cloud-based systems, ensuring the security and continuity of

A 45 Day Digital Transformation Even with physical banking secured,

our banking services.”

This decision was crucial. As cyberat-

another and perhaps even more

tacks and infrastructure damage

threatening challenge to the integrity

increased, cloud-based banking

and independent internet connec-

of the financial system loomed: data

ensured that Ukraine’s financial system

tions so that banking services could

security. Banks needed to ensure that,

remained intact. The transition to cloud

continue, even in the worst conditions.

even if their physical locations were

services was a fundamental necessity

destroyed, customers could still access

to safeguard the financial system

their accounts.

against the escalating threats of war.

“Our bank branches became lifelines,” Musiienko added. “People came not just to withdraw money, but to charge their

PrivatBank, the largest universal bank

phones, connect with loved ones, and

in the country with over 18 million cus-

find warmth during winter blackouts.”

tomers, made one of the boldest moves,

Anton Tyutyun, Deputy CEO of Os-

migrating 3,500 servers and over six

chadbank, described the scale of their

petabytes of customer data to a secure

commitment: “We have the biggest

cloud environment in just 45 days.

branch network in Ukraine, so we

“Normally, this would take two years,”

equipped 800 branches with indepen-

Musiienko said. “We had no choice but

dent power. Beyond banking, this was

to work at an accelerated pace. The risk

about survival.”

of losing everything was too great.”

For many Ukrainians, bank branch-

Raiffeisen Bank Ukraine followed

es went from being mere financial

suit. “We were the second bank in

institutions to becoming a symbol of

Ukraine after PrivatBank to move

resilience. Evgeny Velikanov, Gener-

everything to the cloud,” Lukyanchuk

al Manager of iPay, emphasized the

explained. “If physical systems were

importance of this collaboration. “The

destroyed, we could still function.”

financial ecosystem in Ukraine is very

Dmytro Musiienko highlighted the

strong. Banks, fintech companies,

crucial role played by the National Bank

and regulators work together, and the

of Ukraine in enabling this transition.

I clearly remember the day a missile landed near our data center in Dnipro. That was when we realized, 18.5 million customers could lose access to their money in an instant. We had to act fast.

Dmytro Musiienko Board Member and Chief Retail Business Officer at PrivatBank

Dmytro Musiienko Board Member and Chief Retail Business Officer at PrivatBank

34

Kiev City Center

Cyber Warfare and the Battle to Keep Ukraine’s Banks Online

pared digital defense can be just as critical as physical infrastructure.

Beyond physical destruction, Ukraine’s

“We had a lot of attacks, but because

financial institutions faced a digital war.

of our early investment in cybersecurity,

“A hybrid war is being waged against

we were never taken offline,” said Elena

us,” said Oleksii Shaban. “In addition to

Lukyanchuk. “From the very beginning

military aggression, cyberattacks on

of the full-scale invasion, we knew cyber

financial infrastructure have surged.”

threats would escalate. We reinforced

War changes everything overnight, but people still need to buy food.

Businesses still need to operate. The financial system had to work, no matter what.

Cybersecurity became a top priority,

our defenses, ran constant monitoring,

and Ukraine’s banking sector adapted

and worked closely with cybersecurity

with speed and efficiency. Oschadbank

experts to ensure our systems remained

took significant measures to strengthen

resilient. It as much about protecting

its defenses against cyber threats. ‘We

data as it was about maintaining trust

faced relentless DDoS attacks from

and ensuring Ukrainians had uninter-

Anatoliy Rogalskiy

the first days of the war,’ said Anton

rupted access to their finances.”

CMO of Monobank

Tyutyun, Deputy CEO of Oschadbank.

“To counter this, we implemented

How War Forced Ukraine’s Payment

The ‘Jar’ savings feature within the

new security protocols, reinforced our

Sector to Innovate Faster

Monobank app, originally designed as a

network infrastructure, and ensured

In the midst of war, when tradition-

simple way for customers to put aside

continuous monitoring. We could not

al infrastructure came under attack,

extra money, unexpectedly transformed

afford any downtime.” DDoS (Distributed

Ukraine’s financial sector had to find

into a powerful wartime crowdfunding

Denial of Service) attacks overwhelm

new ways to keep money flowing.

tool. The feature allows users to round up

systems with massive amounts of

Digital payments became a necessity.

transactions and save small amounts over

traffic, making services inaccessible. By

With power outages disrupting physical

time, but as the war escalated, Ukrainians

reinforcing their cybersecurity mea-

banking channels, many Ukrainians

found a new use for it, supporting those

sures, Oschadbank and other financial

turned to mobile banking, QR payments,

on the frontlines. “People started using

institutions managed to keep their sys-

and contactless transactions to conduct

Jars within the app to raise money for

tems operational despite the ongoing

their daily financial activities. The war be-

protective gear like helmets and

cyber warfare. Despite countless cyber

came an unlikely accelerator for fintech

bulletproof vests for their friends and

threats, the country’s financial institu-

adoption, pushing the country further

family fighting on the frontlines,” said

tions have so far managed to defend

into a cashless economy.

Anatoliy Rogalskiy, CMO of Monobank.

their systems, proving that a well-pre-

For Monobank, the shift was dramatic.

“Soon, it became a key tool for

Anatoliy Rogalskiy CMO of Monobank

35

Raiffeisen Bank Ukraine Contact Center Employees, taking calls from customers from shelters during air raids

grassroots fundraising efforts. Entire communities came together to pool resources for those defending Ukraine.”

payments so that clients could continue

had housing, financial support, and job

to operate under difficult conditions.”

security waiting for them.” In the first few

With card-based transactions remain-

days of the full-scale invasion, the bank

Through this functionality, Monobank

ing stable despite wartime disruptions,

arranged for hundreds of employees

has helped raise over two billion euros in

Ukraine’s financial sector proved its

and their families to be relocated to

support of the resistance, showing how

adaptability once again. The country had

safer regions within Ukraine and even

digital finance can be repurposed in

already been a leader in digital banking

abroad, ensuring continuity of oper-

times of crisis to directly aid national

before the war, but the crisis cemented

ations while providing much-needed

defense. Ukrainians quickly adapted,

its reputation as one of the most innova-

stability to their workforce.

using the ‘Jar’ savings feature not only

tive fintech ecosystems in the Europe.

for personal finance but also to collect

Yet, not everyone had the option to leave. Many employees continued

donations for protective gear, supplies,

The Fight to Keep Bank Employees

working in cities under siege, often from

and assistance to those in need.

and Customers Safe

bomb shelters or underground loca-

As the war raged on, Ukraine’s financial

tions. “Our contact center employees

and power becoming unpredictable,

institutions faced not only the challenge

worked from shelters, taking calls and

contactless payment solutions became

of keeping their systems operational but

supporting customers even as air raid

critical. Anton Tyutyun of Oschadbank

also ensuring the safety and well-being

sirens rang above them,” Lukyanchuk

explained how even large retailers

of their employees. Many bank workers

recalled. “It was incredible to see their

adapted: “Even large retailers used Tap

lived in cities under constant bombard-

dedication. They knew that people

to Phone during blackouts because it

ment, yet they continued their work to

depended on them, so they adapted to

worked when everything else failed.” The

keep financial services running. Evacu-

the circumstances and kept going.”

technology allowed merchants to turn

ating staff from hard-hit regions be-

Meanwhile, with internet connectivity

Evgeny Velikanov from iPay shared a

their smartphones into payment termi-

came a logistical challenge. With roads

similar story. “There were days when

nals, ensuring transactions could still be

damaged, checkpoints everywhere, and

our team members had to work without

processed without additional hardware.

the ever-present risk of missile strikes,

electricity, relying on backup batteries

QR payments and alternative pay-

moving people to safety required care-

and mobile networks just to keep

ful coordination and bravery.

payment systems operational,” he said.

ment channels also saw a rapid increase in adoption. “The war forced businesses

For Raiffeisen Bank Ukraine, ensuring

“No one knew if they would have to flee

and consumers alike to be more flexible

employee safety was a top priority. “At

at a moment’s notice, but they still

with how they pay,” said Evgeny Ve-

every border crossing, our employees

showed up every day, because they

likanov, General Manager of iPay. “We

were met by teams from our sister

understood the importance of what we

introduced alternative ways of making

banks,” said Elena Lukyanchuk. “They

were doing.”

36

We have the biggest branch network in Ukraine, so we equipped 800 branches with independent power.

Beyond banking, this was about survival.

Anton Tyutyun Oschadbank’s Deputy CEO

Beyond the immediate operational challenges, leadership played a crucial role in maintaining morale. Oschadbank’s Deputy CEO, Anton Tyutyun, believed that leaders had to be present, not just virtually, but physically. “I have gone to Kharkiv five times through the war,” he said. “I wanted my team to know that we were in this together. It was important for them to see that senior management was not sitting safely in another European country but was right there with them, facing the same realities.” His visits sent a powerful message: resilience was not just about infrastructure or systems, but about people. By standing shoulder to shoulder with employees in one of the hardest-hit cities, Tyutyun reinforced the sense of unity and shared purpose that kept Ukraine’s financial institutions running.

Despite the unimaginable hardships, the collective effort of Ukraine’s banking employees ensured that financial services never stopped. Whether working from underground bunkers, relocating entire operations, or standing by their teams in war-torn regions, they demonstrated a level of resilience that went far beyond their job descriptions.

Their commitment proved that Ukraine’s financial system was standing strong in the face of the invasion.

The Future of Ukraine’s Financial System As Ukraine’s financial system continues to operate under the immense pressure of war, it continues to evolve. The urgency of wartime has accelerated innovation in ways that might have taken a decade under normal circumstances.

Banks and fintech companies alike have adapted, learned, and pushed forward, not just to keep the economy running

Anton Tyutyun Oschadbank’s Deputy CEO

37

The War Economy: Voices from the Financial Frontline Scan the QR code to hear the untold stories of fintech in a nation at war.

but to lay the foundation for the future.

just focused on maintaining operations;

have collaborated with regulators, and

The experience of the past two

we’re looking at what’s next,” said Elena

international partners have stepped in

years has reinforced the necessity for

Lukyanchuk. “The lessons we’ve learned

to provide support. The war has erased

digital-first banking. Many financial

in resilience, security, and customer

traditional boundaries, proving that in

institutions are already preparing for a

service will define the next generation

times of crisis, solidarity is more power-

post-war reality where online banking,

of banking in Ukraine and beyond.”

ful than competition.

AI-driven risk assessment, and block-

The circumstances of war have forced

This unity is not just limited to

chain-based transactions become

the entire financial sector to operate

Ukraine. The support of the global

standard. PrivatBank, for example, is

with a sense of urgency that cannot be

fintech and banking community has

expanding its cloud-based operations,

ignored. Decisions that might have taken

been instrumental in keeping the

ensuring that even in peacetime, it

years were made in days, and new sys-

system afloat. Countries across Eu-

remains resilient against any future

tems that would have required extensive

rope, particularly in the Nordic region,

crises. Monobank is looking to fur-

piloting were implemented in weeks.

have played a key role in ensuring that

ther integrate fintech solutions that

The war, in its brutality, has forged a

Ukraine’s financial sector remains stable.

support small businesses, helping to

financial system that is faster, stronger,

“All of Ukraine, not only bankers are very

rebuild the country’s economy from

and more agile than ever before.

grateful for your support, for your trust

the ground up. Oschadbank, having

But beyond the technological

and for your permanent belief in our vic-

established itself as a critical pillar of

advancements, the true strength of

tory” concludes PrivateBank’s Dmytro

Ukraine’s financial stability, is enhanc-

Ukraine’s financial sector lies in its peo-

Musiienko.

ing its cybersecurity measures and

ple. The resilience, hope, and unity that

Far beyond a national success story,

reinforcing its infrastructure to with-

have emerged from these difficult times

Ukraine’s financial system has become

stand potential future threats.

have transcended individual institutions.

a global example of resilience, innova-

Employees from competing banks

tion, and an untameable spirit of

have worked together, fintech firms

perseverance.

For Raiffeisen Bank Ukraine, innovation remains a top priority. “We’re not

38

EMBank’s Vision for Lithuania’s Fintech Evolution Lithuania has rapidly emerged as one of Europe’s leading fintech hubs, attracting companies worldwide with its progressive regulatory approach and thriving financial ecosystem. European Merchant Bank (EMBank), licensed by the European Central Bank, plays a key role in this evolution.

We recently interviewed EMBank’s CEO Sarp Demiray, sharing in on how EMBank is fostering fintech growth and driving financial innovation.

actively engages with the fintech community by joining industry organisations, hosting discussions, and sponsoring major events like Baltic Fintech Days, which will take place in Vilnius this April.

Innovation & The Future of Fintech The fintech sector is evolving rapidly due to AI advancements, regulatory shifts, and customer expectations. Banks and fintechs must be agile and open to collaboration to stay ahead.

“Success in fintech banking depends on being smart and adaptable. The industry is fast-moving, and the ability to integrate cost-effective tech solutions will be a game-changer,” says Demiray.

EMBank’s approach revolves around four core principles: partnership, trust and integrity, smartness, and proactive agility. As fintechs scale, EMBank aims to build deeper, more integrated relationships, leveraging technology to enhance efficiency and create greater value for clients.

By R. Paulo Delgado

A Long-Term Commitment to EMBank’s Fintech-Focused Strategy

Lithuania’s Fintech Ecosystem

Fintech Growth

EMBank was founded to serve SMEs

& EMBank’s Role

As Lithuania’s fintech sector continues

and fintech companies—two segments

With over 250 fintech companies, Lith-

to expand, EMBank is well-positioned to

often underserved by traditional banks.

uania leads the EU in fintech licensing

support long-term growth through cut-

and regulatory innovation. EMBank works

ting-edge financial technology, strategic

with at least 30% of these companies, re-

partnerships, and active engagement in

inforcing its pivotal role in the ecosystem.

industry developments.

Demiray sees fintechs as more than just clients; they are strategic partners.

“We consider ourselves ‘experienced bankers in mind, but entrepreneurs at heart.’ We aim to create services and products that bring value to fintechs or their clients, helping them differentiate themselves in the market,” he explains.

To achieve this, EMBank has invested in technology-driven banking solutions, such as APIs and seamless integrations, to support fintech operations. Beyond transactional banking, the bank is

Success in fintech banking depends on being smart and adaptable. The industry is fast-moving, and the ability to integrate costeffective tech solutions will be a game-changer.

“The goal should be to expand the

regulatory alignment, and a commit-

laborative approach benefits everyone,”

ment to innovation, EMBank is set to

Demiray notes.

remain a key player in shaping Lithua-

Beyond banking services, EMBank

Sarp Demiray CEO of EMBank

expanding its offerings into financing, compliance, fraud management, and

This customer-centric approach

interest-sharing solutions—critical tools

has led to high satisfaction levels, with

that fintechs need to scale.

EMBank’s latest fintech client survey reporting a 94% approval rate. The bank

Bridging the Banking Gap for Fintechs

has steadily expanded, reaching EUR

Fintech companies often struggle to

215 million in assets and growing to a

access banking services, as traditional

multinational team of over 70 employ-

institutions view them as high-risk and

ees in just five years.

limit their access to essential financial infrastructure. EMBank takes a different approach by aligning with fintechs’ needs.

“The key is to show genuine interest in their business and provide tailored solutions. Our teams, with global exper-

Sarp Demiray CEO, EMBank

tise, understand the fintech mindset and speak their language,” says Demiray.

With a fintech-centric strategy, strong

market, not just gain market share. A col-

Photo: EMBank

nia’s financial landscape.

39

From Startups to Success: Legal Support in the Baltic Fintech Revolution In today’s dynamic financial landscape, the Baltic region has become a vibrant center for fintech innovation.

clinics for start-ups as well as training

By Jesper Henriksen

establish themselves in the competitive

E

and other events on a wide range of relevant topics. That way Sorainen helps startups avoid common pitfalls and fintech ecosystem.

stonia, known as one of the

Modern Solutions for Modern Problems

most advanced digital countries

Like its innovation and technology-driv-

in the world, has more unicorn

en clients, Sorainen also employs cut-

companies per capita than any

other country in Europe, offers an en-

trepreneurial-friendly business environment, and has the best tax system in the world, according to the OECD’s International Tax Competitiveness Index.

Lithuania’s fintech market stands out for its cost-effective business environment, cutting-edge digital infrastructure, and thriving fintech ecosystem with a

ting-edge technologies and AI to share

As fintech evolves, we remain committed to staying at the forefront of legal and technological developments.

experience and know-how between its offices and teams. Taking innovation a step further, Sorainen launched its in-house AI tool, AiVar, in August 2024.

AiVar automates routine legal tasks, aids in content creation, and supports strategic planning, boosting productivi-

Hetti Lump-Kivisaari

ty and efficiency.

Counsel at Sorainen

“As fintech evolves, we remain

skilled talent pool, making it one of the

committed to staying at the forefront of

most attractive fintech hubs in Europe.

legal and technological developments.

Latvia is favorable for its political

erations – technology in combination

Our investment in AI and our deep

climate, zero corporate income tax on

with finance seems to be everywhere,”

understanding of the Baltic market as

reinvested income, strong government

explains Hetti Lump-Kivisaari, Counsel

well as financial services regulations

and central bank support, and fin-

at Sorainen, specialising in advising

uniquely positions us to support fintech

tech-friendly regulations.

financial institutions on legal and regula-

companies in achieving their goals. At

tory matters.

Sorainen, we don’t believe in just

Becoming a Pan-Baltic powerhouse

“At Sorainen, we are dedicated to

Hetti Lump-Kivisaar Counsel at Sorainen

Recognising these opportunities early on,

delivering actionable and practical legal

Sorainen became the first fully integrated

advice that meets our client’s exact

pan-Baltic law firm, working in unity for a

needs and exceeds expectations in cli-

single goal – helping clients succeed in

ent experience by leveraging our deep

business. Also, Sorainen has a recognised

understanding of the law, extensive

traditional compliance, incorporating

affinity for supporting fintech companies

experience in working with the financial

market knowledge, licensing require-

from their inception throughout their

sector and strong, smoothly-working

ments, and technical expertise.

lifetime on all legal matters.

team. We help our clients effectively

“Effective legal advice requires un-

navigate through legal requirements,

derstanding each client’s unique needs

ogies in providing financial services is

licensing, development of new products

and expectations,” Hetti Lump-Kivisaari

growing rapidly, presenting new legal

and expanding to new markets.”

notes. “At Sorainen, we go beyond

“Currently, the use of new technol-

Resilience Act came into force in the EU,

Beyond Compliance: Comprehensive

solutions aligned with client’s strategic

affecting almost the entire financial sec-

Legal Advice

goals. Our focus on fintech stems from

tor. In Europe and the Baltics, crypto-as-

Navigating this evolving regulatory envi-

understanding its potential to transform

set issuers and service providers must

ronment requires strong local, regional,

financial services. “

comply with the new EU regulations. We

and global insights. For fintech compa-

To further support new ventures,

nies, legal support now extends beyond

Sorainen organises free pan-Baltic legal

also see many interesting new coop-

long-term close partnerships with our clients to help them succeed,” Hetti Lump-Kivisaari concludes.

legal and compliance to deliver holistic

challenges. The Digital Operational

providing legal advice—we develop

About Sorainen is an international business law firm known for its integrated team approach, dedicated to helping clients navigate complex legal and tax matters. With 300 lawyers and tax specialists, it provides comprehensive support across the region. Since 1995, Sorainen has played a key role in major local and international mandates.

40

CRIF Helps Fintechs and Banks Handle Data Overload

management, and fraud prevention.

Scratch around the surface of the internet and you’ll soon discover that the world generates over 400 million terabytes of data per day, or 147 zettabytes per year.

be provided as a service, on-cloud, or

CRIF’s proven solutions can predict certain behaviors and warning signals, enabling financial institutions to reduce negative impacts and the associated costs.

“Another strength, particularly in the Nordics, is that we have many customers operating across multiple countries, and we can provide solutions that are multicountry, multilanguage, and multicurrency, capable of managing millions of transactions within a single production environment. These solutions can on-premise,” comments Sangiorgi.

By R. Paulo Delgado

Another strength, particularly in the Nordics, is that we have many customers operating across multiple countries, and we can provide solutions that are multicountry, multilanguage, and multicurrency, capable of managing millions of transactions within a single production environment.

B

anks and fintechs hold vast amounts of this data but struggle to extract value from it. CRIF, a leading credit bureau

and data analytics and solutions provid-

er, helps them unlock its potential.

“Data has always been in our DNA,” explains Claudio Sangiorgi, Business Development Manager for International Markets at CRIF. Despite its many iterations and transformations over the years, CRIF has always maintained its focus on data.

The company’s primary mission is to help businesses make sense of data by refining what’s already there—such as parsing account data for risk signals or

Claudio Sangiorgi

sales opportunities—and enriching the

Business Development Manager for

data through external sources.

CRIF’s origins

International Markets at CRIF

comprehensive decision-making man-

generative AI when it emerged. The com-

agement platform for businesses, par-

pany has already leveraged generative AI

Looking to the future

Founded in 1988 as a credit bureau, CRIF

ticularly in the financial sector. It serves

to help clients automate processes and

CRIF’s priorities for the coming year

has grown into a global business with

as both a business rules management

improve data quality, such as by making

include expanding its AI and ML capabil-

over 6,600 employees and annual reve-

system and a decision-scoring engine.

complex data more accessible.

ities to deliver more advanced decision-

nues of over €800 million. The company

The company also made the plat-

For example, CRIF has used large lan-

ing solutions. It also wants to enhance

offers a comprehensive range of services,

form user-friendly so that it wouldn’t

guage models (LLMs) to extract valuable

its open banking services to provide

including data analytics, decision-making

require a team of highly skilled IT

insights from the typically unstructured

greater value to its clients.

tools, and consultancy services.

personnel to configure it.

documents involved in the credit pro-

“Our aim is to strengthen our part-

In 2023, Forrester Wave recognized

cess. By transforming unstructured data

nerships with clients by offering tailored

CRIF as a leader in AI decisioning plat-

AI and Innovation

into structured data, this information can

solutions that address their specific

forms for its StrategyOne product.

“We established an innovation hub called

then be accurately processed by tried

needs and challenges, ultimately helping

CRIF designed StrategyOne as a

InnovEcos to study, analyze, and test the

and tested tools.

them to mitigate risks, reduce losses, and

most innovative trends and solutions,

Claudio Sangiorgi Business Development Manager for International Markets at CRIF

increase revenue,” explains Sangiorgi.

creating a network with fintechs and

CRIF in the Nordics

exploring emerging technologies such as

In the Nordics, the company has no-

logical advancements and maintaining a

quantum computing,” says Sangiorgi.

ticed an uptick in interest for subjects

client-centric approach, CRIF believes it

For several years, CRIF has also been

that were previously a higher priority

can continue to make a significant

providing ML- and AI-based decisioning

for Mediterranean countries, such as

impact on the fintech ecosystem and

solutions, making a natural move into

collection, NPL (non-performing loan)

drive positive change for its clients.

By staying at the forefront of techno-

41

How MySQL is Transforming Financial Services Open-source technology is revolutionizing IT in financial services, and its influence continues to grow. MySQL, the world’s most popular open-source database, plays a critical role in this transformation. With its proven scalability, security, and performance, MySQL Enterprise Edition is helping over 700 financial institutions navigate digital innovation while maintaining compliance and data protection, including companies like J.P. Morgan, Stripe, Visa and PayPal.

By MySQL by Oracle

F

or other clients like the Mum-

satisfaction and differentiate them-

facilitate data analytics and reporting,

bai Stock Exchange, MySQL

selves in a crowded market through

providing valuable insights into cus-

enabled them to meet a 900%

effective digital transformation strat-

tomer behavior, market trends, and risk

trading growth, KB Kookmin

egies. Investing in MySQL can lead to

management.

Bank improved customer loyalty, and

new service offerings and streamlined

RBL Bank boosted security, compli-

operations, ultimately reducing costs

Tools and resources

ance and operational efficiency.

and boosting profitability.

By choosing MySQL Enterprise Edition,

Scalable, secure and flexible

Ready for the future

a comprehensive suite of tools and

Financial organizations operate in a

Moreover, MySQL helps financial

resources designed to optimize their

fast-paced, high-risk environment

institutions meet rigorous compliance

database performance, ensure high

where regulatory compliance, cyber-

standards, ensuring they keep pace with

availability, and maintain data integ-

security, and operational efficiency are

industry regulations and maintain the

rity. This includes advanced security

paramount. MySQL Enterprise Edition

trust of their customers. With its robust

features, performance monitoring

provides a secure, flexible, and scalable

security features, including encryption,

and diagnostics, backup and recovery

platform that meets these demands—

access control, and auditing capabilities,

solutions, and expert support from

whether deployed on-premises, in the

MySQL safeguards against cyber threats,

MySQL engineers. The platform’s

cloud, or in hybrid environments, making

minimizing the risk of data breaches and

scalability allows it to handle growing

it an ideal choice for diverse operational

reputational damage. Financial services

data volumes and transaction loads,

needs and cloud strategies.

can deliver new features and services

ensuring that financial institutions can

MySQL Enterprise Edition delivers a

faster, enhancing innovation without the

meet the demands of their customers

robust and secure platform for manag-

lengthy wait times often associated with

and the market.

ing their critical data and applications.

traditional systems.

financial institutions gain access to

It enables them to protect valuable

In addition, MySQL can support the

With its proven track record, scalability, and security, MySQL Enterprise

information, mitigate cybersecurity risks,

development of innovative financial

Edition is the trusted choice for financial

and adhere to evolving regulatory frame-

products and services, such as mobile

institutions looking to modernize their

works, such as GDPR, PCI DSS, and PSD2.

banking apps, personalized financial

infrastructure, drive innovation, and

By leveraging MySQL’s capabilities,

management tools, and real-time

achieve their business objectives in a

organizations can enhance customer

fraud detection systems. It can also

rapidly changing digital world.

42

Beyond Quantum Computing: How Quantum Technology is Transforming Financial Services Quantum is once again back in the news with Microsoft’s announcement of the Majorana chip, a major breakthrough in quantum computing. Built with topological qubits, this chip promises greater stability and reduced error rates, bringing practical quantum applications closer to reality. This development could have profound implications for financial services, from security to trading efficiency.

By Dave Wallace

Q

uantum technology extends

Quside Technology, has been a strong

beyond computing, offering

advocate for QRNGs in financial ser-

Later, where attackers steal encrypt-

groundbreaking applica-

vices. He said “By leveraging quantum

ed data today to break it with future

tions in financial services,

mechanics, Quside’s QRNG technol-

quantum computers, has accelerated

from cybersecurity to insurance risk

ogy enhances the security of banking

the adoption of these quantum-safe

assessment and trading optimisation.

transactions, fraud detection systems,

technologies. Financial regulators are

While quantum computing captures

and authentication processes. Finan-

actively encouraging early adoption.

headlines, quantum cryptography,

cial institutions integrating QRNGs can

Dave Wallace

sensing, and machine learning are

future-proof their encryption methods,

Quantum Sensing for Insurance

already reshaping the industry.

protecting customer data and transaction

& Risk Modelling

Founder, Podcast host, Writer and Advisor

integrity from emerging cyber threats.”

Quantum sensors are set to revolu-

Quantum Number Generation

The threat of Harvest Now, Decrypt

tionise risk assessment in insurance,

& Financial Security

Quantum Cryptography

providing ultra-precise measurements

One of the most critical components

& Financial Data Security

of environmental conditions, asset

of financial security is the generation of

Cybersecurity is a top concern for

longevity, and catastrophe modelling.

truly random numbers, which underpin

financial institutions, and quantum

Quantum-enhanced gravimeters can

encryption and authentication systems.

cryptography offers a formidable de-

detect ground shifts, improving flood

Traditional random number generators

fence. Quantum Key Distribution (QKD)

and earthquake risk models, while

rely on algorithms that can, in some cases,

ensures encryption keys remain un-

quantum-based material sensors can

be predicted or compromised. Quantum

hackable, with leading banks like HSBC

monitor structural integrity in buildings,

Random Number Generators (QRNGs) use

and JPMorgan already trialling QKD

aircraft, and vehicles. These insights en-

fundamental quantum mechanics to pro-

networks to secure transactions and

able insurers to price policies more ac-

duce genuinely unpredictable numbers,

customer data. Meanwhile, Quantum

curately and shift from reactive claims

significantly strengthening cryptographic

Random Number Generators (QRNGs)

processing to proactive risk mitigation.

security. These are available today from

enhance cryptographic strength by

Parametric insurance, where pre-

companies like Quside and can be imple-

generating truly unpredictable encryp-

defined sensor data trigger payouts,

mented on legacy infrastructure.

tion keys, strengthening fraud preven-

stands to benefit enormously from

tion and authentication processes.

quantum-enhanced environmental

Steve Takhar, Chief Revenue Officer at

43

As quantum advancements redefine financial security, trading efficiency, and risk modelling, firms that embrace this transition will lead the industry.

Dave Wallace Founder, Podcast host, Writer and Advisor

misation problems exponentially faster

cards to enhance conventional servers

and Microsoft’s topological qubit

than classical computers. High-fre-

without major system overhauls. How-

research. To stay ahead, financial

quency trading (HFT) firms are exploring

ever, traditional core banking systems

institutions must establish dedicated

quantum algorithms to detect real-time

may require quantum-safe middleware

quantum task forces, allocate five to

market patterns and arbitrage oppor-

to bridge compatibility gaps.

seven percent of IT budgets to quantum readiness, partner with quantum

tunities. Quantum computing’s ability to

A McKinsey study highlights a 73

process vast financial datasets simul-

percent workforce gap in the quantum

hardware and software providers, and

taneously offers an edge in algorithmic

finance sector. In response, HSBC has

engage with regulatory sandboxes to

trading, potentially reducing trade exe-

established quantum research labs in

shape industry standards. As quantum

cution latency and increasing returns.

London, Hong Kong, and New York.

advancements redefine financial

Portfolio optimisation, currently a

Meanwhile, institutions like Imperial

security, trading efficiency, and risk

computationally intensive task, could

College London and MIT are develop-

modelling, firms that embrace this

also be transformed. Banks like BBVA

ing cross-disciplinary quantum finance

transition will lead the industry. The time

and hedge funds are already experi-

programmes to bridge the skills gap.

to act is now.

menting with quantum computing to

While quantum sensing and QRNG

construct optimal asset allocations,

solutions offer immediate returns

balancing risk and return with unprece-

through enhanced security and risk

readings. These readings will improve

dented efficiency. Monte Carlo risk simu-

modelling, quantum computing invest-

underwriting accuracy and reduce false

lations, essential for stress testing, could

ments remain speculative. Goldman

triggers. Quantum sensing will likely

be conducted in seconds rather than

Sachs estimates a three to five-year

become integral to insurance pricing

hours, enhancing financial institutions’

timeline for commercial quantum

and climate risk forecasting.

ability to respond to market volatility.

advantage in financial modelling, sug-

Quantum Computing in Trading

The Quantum Future of Financial Services

& Portfolio Optimisation

Integrating quantum technology into

Quantum computing has the potential

existing financial infrastructure remains

not a distant prospect; it is already

to revolutionise trading and investment

a challenge. Quside’s QRNG solutions

unfolding through HSBC’s secure

management by solving complex opti-

demonstrate one approach: using PCIe

networks, Quside’s QRNG deployments,

gesting a phased investment strategy aligned with technological maturity.

The shift to quantum technology is

About Dave Wallace is a digital transformation expert with over 25 years in financial services. As co-founder of HeathWallace, he led global initiatives to enhance customer experiences in banking and insurance. A recognized thought leader, Dave shares insights on fintech, digital innovation, and customer engagement.

44

of core banking was to make available

The Evolution of Core Banking Is Underway

all the product settings needed to create any product in one place from day one. “And we wanted to do it cheaper, easier, and faster than ever before,” Wootton says.

As a cloud evangelist for nearly 20 years, Wootton also chose to leverage all the benefits of cloud-native technology to ensure real-time data availability, scalability and speed.

Adaptability to change is key to survival

SaaScada is a UK-based, data-driven, cloud-native core banking technology provider on the verge of opening its Series A funding round.

The company’s origins trace back to a desire by its two founders—Steve Round and Nelson Wootton—to ensure that quality banking products were accessible to everyone.

In building SaaScada Wootton and Round were determined to deliver a pure core without straying into the customer-facing technologies. Wootton describes it as a “skinny core” banking solution that covers the product engine, ledgers, and payment integrations at a low cost.

This approach enables banks to redirect money and resources toward

By R. Paulo Delgado

customer experience and innovation.

By using open APIs to build out the tech Suddenly, the reason for excessive

stack, SaaScada’s clients can also pick

against you when you’re on

banking costs became clear—the tech-

and choose best-of-breed partners,

a low income. Banks don’t

Everything is stacked

nology underlying banking was ancient,

and can quickly add new tech partners

want to deal with you because you’re

cumbersome, and expensive. Things

to the stack when new technologies

not profitable for them,” says Wootton.

had to change.

To address this problem, Wootton and

So Round and Nelson took a fresh

Round created a bank account in the UK

look at core banking and built a new

to serve this demographic. In doing so,

core offering, using disruptive technol-

they ran head-on into the costs and

ogies that go against everything legacy

difficulties of core banking.

technology had to offer.

The Baltics is an incredibly innovative part of Europe with a strong reputation for being pretty leading edge in financial services.

become available.

New territories SaaScada is ready to expand, with sights set on the Nordics, Baltics, Middle East, and Asia.

“The Baltics is an incredibly innovative part of Europe with a strong reputation for being pretty leading edge in

Nelson Wootton CEO and Co-Founder at SaaScada

financial services,” he says. “The bonus in the Baltics is the approachability of

Product DNA

its regulators and their willingness to

By looking at the fundamentals of prod-

support innovation.”

uct configuration, it was clear that most

In common with many parts of the

products were fundamentally made up

world, the Baltics are also encumbered

of the same features—their DNA is not

by legacy technology, says Wootton.

that different. For example, charging

“Engineering costs are also rising

interest for a loan and paying interest for

significantly.” Both of these conditions

a savings account.

make the zone a ripe area for a com-

“It seemed madness that these two sides of the coin would need two sets

pany like SaaScada, which offers a lowcost solution to legacy issues.

of code. But that is just what legacy

“Every region has its own flavour,

cores have been delivering for de-

and it’s important to understand the

cades,” says Wootton.

local needs before expanding into any

The next logical step in the evolution

area,” he says.

The company is in the final stages of acquiring its first client in the region. It will be attending Baltic Fintech Week in April

Nelson Wootton

to further understand the Baltic ecosys-

CEO and Co-Founder at SaaScada

tem and explore potential synergies with front-end builders and other complementary product providers.

45

Lithuania’s Fintech Rise and Tribe Payments’ Role For years, businesses have struggled with outdated payment systems that weren’t built for today’s digital world. Transactions were slow, expensive, and inefficient. Legacy infrastructure made it difficult to integrate new payment methods, creating frustrating customer experiences. High maintenance costs drained resources, while evolving regulations added complexity. As digital banking and e-commerce expanded, these limitations became more apparent, leaving many companies unable to scale.

By Tribe Payments

F

ounded in 2018 as an issuer and

licensing, making it easier for firms to

increase speed, security, and flexibility.

acquirer Processor, Tribe Pay-

launch new financial products.

Tribe’s approach aligns with this shift,

ments has evolved its payment

Tribe is one of many companies

helping businesses customize and scale

platform to give customers the

thriving in this environment. Alongside

their payment solutions efficiently. Cli-

power to deliver frictionless, safe cus-

its Kaunas office, it has a presence

ents often highlight Tribe’s expertise and

tomer experiences at any and every point

in Chișinău, Moldova, and in 2024, it

collaboration. According to Stuart Green,

of the entire transaction flow, enabling

expanded into Asia with an office in

CEO of SetldPay, “From the research we

merchants, banks, fintechs, issuers, and

Singapore. This move reflects its am-

did, Tribe was the most advanced solu-

acquirers to easily access a full ecosys-

bition to establish a global footprint in

tion available, but beyond the technolo-

tem of products, allowing them to build,

the fast-evolving payments industry.

gy, the trust we have in Tribe’s team, built

customise, and launch innovative solutions quickly, without sacrificing quality.

from past experiences, was key.”

How Payments Are Evolving

Headquartered in London, Tribe’s

As digital wallets, contactless payments,

Expanding Beyond Europe

largest office is in Kaunas, Lithuania, a

and real-time transactions become the

Despite expanding internationally,

country that has become a key fintech

norm, financial institutions need to offer

Tribe remains closely connected to its

hub. The company employs around 150

faster, more flexible payment options. In

Baltic roots. It continues to invest in

people there, focusing on technology

the Baltic states, where digital adop-

Lithuania and sponsors Baltic Fintech

development, compliance, and client

tion is high, customers expect smooth,

Days 2025, reinforcing its commitment

support. Unlike many competitors,

instant transactions, whether shopping

to the region’s fintech growth.

it integrates with all six major card

in-store or online.

Tribe also gained industry recogni-

About Founded in 2018 as an Issuer and Acquirer Processor, Tribe has evolved its payment platform to give customers the power to deliver frictionless, safe customer experiences at any and every point of the entire transaction flow, enabling merchants, banks, fintechs, issuers, and acquirers to easily access a full ecosystem of products, allowing them to build, customise, and launch innovative solutions quickly, without sacrificing quality.

Tribe is Europe’s only processor working with Mastercard, Visa, American Express, UnionPay International, Discover and JCB, offering unrivalled global connectivity through just one integration.

Tribe stands out as one of the few providers that enables fintechs to seamlessly become both issuers and acquirers through its proprietary, flexible platform, allowing the customer the opportunity to deliver new value propositions easily. Other innovative solutions in its portfolio include POS/SoftPOS, Digital Wallet, and Risk Monitor.

Tribe’s mission is to deliver payment technology that eliminates the trade-off between scale and speed, leveraging its modular, scalable, and secure cloud-based platform, which is PCI Level 1 compliant.

schemes—Visa, Mastercard, UnionPay,

Tribe has responded with solutions

tion last year, winning “Payment Tech-

American Express, Discover, and JCB—

like SoftPOS, an Android-based system

nology Provider of the Year (SME) at the

making it one of the most connected

that turns any smartphone into a pay-

Payments Awards and “Best PayTech

payment providers in Europe.

ment terminal. This eliminates the need

Digital Solution Provider” at the Banking

for traditional card readers, reducing

Tech Awards. These highlight its role in

Lithuania’s Fintech Hub

costs for merchants and making con-

shaping modern payments infrastruc-

adapt risk falling behind. Tribe’s focus

Progressive regulation, government

tactless payments more accessible.

ture and delivering advanced solutions

on technology, flexibility, and custom-

for fintechs, banks, and merchants.

er relationships positions it as a strong

support, and a strong talent pool. The

A growing number of financial insti-

Bank of Lithuania has introduced a

tutions are moving towards API-led,

regulatory sandbox and fast-track

cloud-based payment infrastructures to

The payments industry is evolving rapidly, and companies that fail to

player in the next phase of payments innovation.

46

DECTA Launches FinTech Fast-Track for New Acquirers and Issuers Payment technology company DECTA will be launching a Fintech Fast-Track Program to help new acquirers and or issuers get started with no set-up fee and a generous discount for the first six months of payment processing. Since DECTA has gone through the process of launching new ventures many times, the company will be able to provide hands-on guidance, industry expertise and strategic connections at every step of the journey.

By R. Paulo Delgado Challenges of breaking into payments

DECTA sets the winning company up

There’s no such thing as launching an

on its technology for no setup fee. For

acquiring or card-issuing business rap-

the first six months, the company can

idly, even if you have the tech in place—

use DECTA’s acquirer or issuer process-

which many don’t.

ing at a massively discounted rate. The

FINTECH FAST TRACK

“Companies must secure licenses and establish direct connection to card processors such as Visa and Mastercard,” says Nikita Melnikovs, Board Member at DECTA.

Acess to DECTA's advanced payment processing with no setup fees and reduced monthly pricing.

Launching a card-issuing program is a complex, resource-heavy process requiring regulatory approvals, technical infrastructure, and compliance expertise. Businesses must have an EMI or EMD license,

company also receives hands-on guidance from industry experts, which itself equates to savings in the early stages.

“With our support, a challenger fintech has better opportunities to remain lean, and to use the improved margins for marketing and customer acquisition instead of operating costs,” says Melnikovs.

Why choose DECTA?

integrate a card processor, implement 3D

DECTA is an experienced fintech in all

Secure, enable IBAN issuance, and set

aspects, from compliance to tech. While

up card personalization—each with strict

the Latvia arm focuses on payment

security and compliance demands.

technology, acquiring processing, issu-

Constantly evolving regulations and

ing processing, white-label gateways,

fraud prevention add further complexity.

and digital banking platforms, it has

Without the right expertise, inefficien-

gone through the process of launching

cies are inevitable, making experienced

issuing and acquiring businesses for hundreds of its clients.

partners such as DFECTA essential for a Have previously applied or consid-

The program is open to companies with

ered applying for a Visa or Master-

any regional focus, not only Europe.

eas, including experts who work directly

card memberships

However, companies in the Baltics,

with Mastercard and Visa. Many team

Have previously applied or consid-

would benefit from DECTA’s proximity.

members have previously launched

business plans to DECTA. Each quarter,

ered applying to the Visa Fast-Track

“The company doesn’t even have to

successful client entities, so there’s a lot

DECTA will select one winning acquirer

or Mastercard Fintech programs

have clients yet, but we do need to see

of experience to bring to the table when

Want to challenge the existing

that the business plan reflects strong

companies work with us,” says Melnikovs.

fintech market

vision and commitment,” says Melnikovs.

Must be legally incorporated in the

“We’re interested in partnerships and

Fast-Track Program at Baltic Fintech

EU, APAC, LATAM, or MENA

mutual growth with the right company.”

Week in April 2025.

smooth, compliant launch.

•

How the fast-track program works Companies interested must submit their

and issuer for the fast-track program.

•

•

The criteria include: •

Have an EMI or PI or similar financial license

•

“We’ve got a strong team in all key ar-

DECTA will be officially launching its

47

The Customer Experience Problem Financial Institutions Don’t Want to Talk About Imagine walking into a bank, asking to open an account, and the clerk hands you a 20-page paper form, sighing heavily, you ask how long it will take, and they shrug, maybe a few weeks.

just to roll out an update. That is the difference between capturing new customers today and losing them to fintechs tomorrow.

Customer Experience Is the New Battleground Here is where it gets interesting, banking

By Chris Crespo

A

functionality is being commoditized. With open APIs and Banking as a Service,

bsurd, right? But in digital

ing to innovate, they are failing to do the

any fintech can tap into the same core

banking, this happens every

basics. And the cost is astronomical.

features. What is left to compete on, customer experience.

day. Pages take too long to The Cost of Bad Customer Experiences

Goldin sees hyper-personalization

are buried in menus designed by sadists.

For years, banks have thrown billions at

as the next big frontier. “It starts with

And customers walk.

load. Forms break. Features

technology while ignoring one brutal

the basics, seamless onboarding, fast

Here is a number that should terrify

fact, a better UX can increase conversion

transactions, intuitive navigation. But

banks, 88 percent of users will not return

rates by up to 400 percent. But instead of

once that is in place, you can move to

to a site after a bad experience. Anoth-

designing seamless experiences, most

true personalization, using real-time

er one, every one euro invested in UX

banks are still wrestling with fifty-year-old

data to shape the experience around

yields one hundred euros in revenue.

infrastructure, terrified to touch it in case

the customer’s needs.”

Yet, somehow, banks still cling to legacy

the whole thing collapses.

systems as if they are family heirlooms.

Goldin and Plumery are tackling this

But here is the catch, a one-second delay in page response can reduce

Ben Goldin, CEO and Founder of

head-on. “Traditional banks are told

conversions by seven percent. “Our

Plumery, has seen this firsthand. “We

they need to replace their entire core

focus has been to build Plumery’s ar-

talk to banks who already built some-

banking system to innovate,” he says.

chitecture to optimise speed.” Custom-

thing, but it is fundamentally not on

“We say, no, you do not.” You just need to

ers do not just want banking that works,

par with customer expectations,” he

decouple your digital experience from

they want it to work instantly. And banks

explains. “Not just functionally, but in

that legacy mess.

that ignore this reality are setting them-

reliability and performance too.”

In other words, banks are not just fail-

Customers do not just want banking that works, they want it to work instantly. And banks that ignore this reality are setting themselves up for failure.

This approach of progressive modernand replace everything at once. Instead,

The Future Innovate or Get Left Behind

they can build modern, flexible digital

The lesson here is brutal but simple,

layers on top of their aging cores. Think

banks do not need more features, they

of it like renovating a house, you do not

need better experiences. Customers

need to bulldoze it to add a new kitchen.

have zero patience for outdated, clunky

And speed matters. “We help cus-

interfaces. They want the speed and flu-

tomers launch an MVP in two to three

idity of a fintech, not the digital equivalent

months,” Goldin says. For context, many

of a fax machine.

banks take twelve to eighteen months

CEO and Founder of Plumery

Plumery is proving that it is possible.

By focusing on CX-first design, progressive modernization, and real-time

Ben Goldin CEO and Founder

Ben Goldin

selves up for failure.

ization means banks do not have to rip

of Plumery

personalization, they are giving banks,

About Founded in 2016 as a private consultancy collaborating with leading global banking companies, Plumery became a registered brand in 2017 and evolved into an independent product company in 2022. Backed by renowned venture capital firms, Plumery now offers a modern, cloud-native digital banking experience platform.

Headquartered in the Netherlands, Plumery operates with a diverse team that embodies a unique combination of seasoned expertise and vibrant innovation. This blend has been cultivated through years of experience at start-ups, scale-ups, and established financial institutions, and most notably at globally leading financial technology companies, where they were instrumental in creating disruptive digital banking solutions and platforms that now serve 300+ banks globally.

Operating across Amsterdam, Lisbon, and Vilnius, Plumery’s mission is to empower financial institutions worldwide, regardless of size, to craft distinctive, contemporary, and customer-centric mobile and web experiences.

Plumery’s Digital Success Fabric platform provides banks with the foundation for success beyond fast-time-to-market by expediting the development of their digital front ends while significantly cutting costs compared to in-house initiatives or solutions with high total cost of ownership (TCO).

EMIs and fintechs a fighting chance in a world where customers expect noth-

The only question left is, will financial

ing less than seamless, intuitive and

institutions continue to leave money on the

delighful experiences.

table and customer loyalty at the door?

48

Your Data, Evolving with AI Right Now In 2013, a major retailer made headlines for predicting a teenager’s pregnancy before her family knew. How? By analysing purchase patterns; unscented lotion, supplements, cotton balls, and using data-driven AI models to infer what was happening in customers’ lives. The revelation was both astonishing and unsettling, triggering a global conversation about how businesses use data.

By Chris Crespo

F

ast forward to today, and com-

from data without ever exposing the un-

panies are still struggling with

derlying information. “It’s a breakthrough

the same core challenge: data

for industries that rely on data-sharing

is abundant, but insight remains

but face regulatory constraints, like

elusive. Organisations have spent years amassing data lakes, warehouses, and analytics platforms, believing that the more they stored, the more value they would extract. Yet many find themselves trapped in a paradox, drowning in data, yet starving for insight.

“Most organisations assume their biggest challenge is data quality or access,” says Jason Yung, Principal Data

The financial services industry has been an early adopter of AI, but many firms still approach it in silos.

Jason Yung Principal Data Strategy at Amazon Web Services for Europe, Middle East and Africas

Strategy at Amazon Web Services for

financial services.”

From Data Overload to Intelligent Action in Financial Services For banks, insurers, and fintech firms, AI is fast becoming an operational necessity.

“The financial services industry has been an early adopter of AI, but many firms still approach it in silos,” says Jason.

“AI isn’t just about fraud detection or risk modeling anymore. It’s about enabling

Europe, Middle East and Africas. “But

hyper-personalised experiences,

the real problem often lies in the lack of

isn’t just about creating new content,”

streamlining compliance, and even rein-

alignment on why they’re using data in

Jason explains. “It’s also about summari-

venting entire business models.”

the first place.”

sation, automation, and helping busi-

One of the most compelling appli-

nesses finally understand the data they

cations of AI in finance is Agentic AI. AI

already have.”

systems that autonomously execute

Companies have been operating under the assumption that centralizing data will naturally lead to better deci-

One of the biggest shifts is AI’s ability

workflows. For example, in custom-

sion-making. But Jason argues this is

to scan and interpret metadata across

er engagement, traditional machine

flawed thinking: “It’s like hoarding, just

vast datasets. Instead of manually audit-

learning models required explicit

because you have more doesn’t mean

ing where data is stored, how it moves,

programming to trigger recommenda-

you know what to do with it.”

and who is accessing it, AI agents can no

tions. Now, Agentic AI can observe user

This misalignment is now colliding

w autonomously map entire data eco-

behaviour in real-time and adapt offers

with a new technological wave: artificial

systems. “Imagine an AI-powered com-

dynamically. “If a customer is hovering

intelligence. The rise of generative AI

pliance officer that continuously audits

over a loan application page, AI can

and AI-driven automation is fundamen-

your data, flags potential governance

instantly assess their eligibility, gener-

tally changing how businesses handle

risks, and even suggests optimisations,

ate a personalised offer, and present it

data, not just by making storage or com-

all in real-time,” Jason explains.

in real-time,” Jason illustrates.

putation more efficient, but by shifting

Another major shift is in data collab-

Fraud detection is another area where

the entire approach to data manage-

oration. Historically, businesses faced

AI is driving transformation. Traditional

ment, access, and utilisation.

significant barriers when sharing sen-

fraud models rely on static rules, but AI

sitive data across departments or with

can now analyze real-time transaction

AI as a Data Enabler, Not Just an

external partners due to security con-

patterns across multiple financial

Automation Tool

cerns. But AI-powered clean rooms and

institutions without exposing private data.

AI is becoming the key to managing and

synthetic data technologies now allow

“Imagine an AI system that can detect

governing data at scale. “Generative AI

companies to analyse and extract value

fraud patterns across different banks

Jason Yung Principal Data Strategy at Amazon Web Services for Europe, Middle East and Africas

49

without any of them having to share

Copenhagen (May 15th), where industry

Scan thse QR codes links to register

sensitive customer data directly,” Jason

leaders, including Jason, will discuss

for the AWS Financial Services Sympo-

says. “That’s the future of collaborative

how AI is reshaping data management

siums in Oslo (April 8) and Copenhagen

intelligence in finance.”

and financial services. The event will

(May 15) to learn how industry leaders

explore real-world case studies of busi-

are turning AI into real business value.

From Strategy to Execution

nesses that have successfully leveraged

The main challenge isn’t in adopting AI,

AI to overcome data challenges and

it’s in integrating it into the fabric of an

unlock new opportunities.

organization’s data strategy. “Many firms

Attendees will gain insights into best

approach AI as a bolt-on technology,”

practices for implementing AI-driven

Jason notes. “But AI should be embed-

data strategies, from ensuring robust

ded into the core data strategy, from

governance to maximizing operation-

governance to decision-making.”

al efficiency. Experts will also share

For businesses looking to move

forward-looking perspectives on the

beyond experimentation, the key is

evolving AI landscape, helping execu-

aligning data strategy with business

tives prepare for what’s next.

objectives, aligning AI capabilities with

As AI continues to redefine the way

actual needs, and aligning teams around

organisations manage and utilise data,

a shared understanding of AI’s role. “The

the companies that proactively embrace

technology is ready,” Jason says. “The

these changes will set the standard for

question is whether organizations are

long-term success. The question isn’t

ready to use it effectively.”

whether AI will shape the future of busi-

This transformation is a key focus at

ness, it already is. The real challenge is

the upcoming AWS Financial Services

ensuring that businesses are strategical-

Symposiums in Oslo (April 8th) and

ly positioned to harness its full potential.

About Amazon Web Services (AWS) is the world’s most comprehensive and broadly adopted cloud, with more than 200 fully featured services available from data centers globally.

Millions of customers—including the fastest-growing startups, largest enterprises, and leading government agencies—are using AWS to lower costs, increase security, become more agile, and innovate faster.

50

Fimento Launches Self-Service AI Model for Transaction Categorisation Fimento, a Swedish fintech company specialising in credit insight services, recently announced its accuracy rate for transaction categorisation. Now, the company is providing full and open access to its AI categorisation models, allowing any company to tweak the models for its own purposes.

By R. Paulo Delgado

We’re essentially revealing

be classified differently, users can

In contrast, Fimento’s new tool of-

the recipe behind our

investigate and retrain the model

fers complete transparency for every

categorisation models,”

accordingly.”

transaction. Its applications extend

says Tobias Hertzman, Key Account Manager for Open Banking at Fimento.

The self-service tool runs entirely from a web browser and can operate in any cloud, private clouds or on-premises servers. Clients don’t need to integrate anything unless they want to implement real-time insight.

Companies can customise each model according to their own rules, adjust categories, train new datasets, or enforce specific requirements. Custom-

If a transaction is categorized as alcohol but should be classified differently, users can investigate and retrain the model accordingly.

Tobias Hertzman Key Account Manager for Open Banking at Fimento

The platform also supports advanced

beyond finance to industries such as

features such as A/B testing or running

telecom, insurance, and manufac-

multiple models for different purposes,

turing—any sector where companies

such as varying credit sizes or markets.

assess risk during client onboarding

Additionally, it offers single-tenant and

or credit extension.

multi-tenant setups for organisations

Explainable AI is in high demand, as

that require isolated data environments,

many current AI solutions produce inac-

such as those processing transactions

curate results without providing a clear

in different jurisdictions.

explanation of how they arrived at those

Additionally, the tool can incorporate

conclusions. In finance, implementing AI

AI agents to reduce the need for manu-

without explainability can quickly lead to

al oversight.

compliance failures. Fimento’s solution

ers can train their own models within

The platform ensures complete

provides built-in explainability by default

the tool and use the APIs to serve their

connect real-time data from an external

transparency throughout, allowing

ensuring that users understand and trust

own business flows.

data source. As the model processes

compliance teams to track which

the algorithms.

the data, analysts can re-categorise any

model processed specific data, and

“The other differentiator is how much

data science and credit teams the

misclassified transactions, improving

the results it generated. It also pro-

companies charge to adjust their cate-

control and transparency they’ve been

the model’s accuracy over time.

vides confidence scores for each

gorisation rules. When using Fimento’s

categorisation, enabling analysts to dig

service, the customer can modify those

deeper into any transaction.

rules themselves,” says Tobias.

What makes Fimento’s

for specific tasks, such as fraud detec-

Companies can use their own training

offering different

tion or tracking personal spending.

datasets or select from Fimento’s exist-

“From what we’ve seen, other categori-

“The purpose of the tool is to give

asking for,” says Tobias.

“You can see where the model is making errors and correct them,” says

How Fimento’s AI categorisation

Tobias. “For example, if a transaction

tool works

is categorized as alcohol but should

ing datasets. The system also supports validation datasets to test the model’s accuracy with new data.

A company can either manually upload transaction data for processing or

Analysts can train models in the tool

“We’ve got some really smart

Tobias Hertzman

sation systems typically use rule-based

minds working with us who previous-

categorisation combined with some

ly worked at companies like Micro-

Key Account Manager for Open Banking at Fimento

form of ML or AI,” says Tobias. “Their

soft, Spotify, and Klarna. We’re

categorisation models tend to be more

extremely proud of what they’ve

of a black box.”

achieved,” he says.

51

Why Flexibility, Speed, and Trust Matter More Than Ever in Business Banking The way businesses interact with banks is changing. Once seen as slow-moving institutions, banks are now expected to be agile, adaptable, and ready to support businesses in an increasingly digital and fast changing world. Large corporations, SMEs, and FinTechs alike are demanding financial services that align with their operational needs, rather than forcing them into rigid banking structures.

By Chris Crespo Why Banks Need to Evolve

from a payment to clear. “Our clients

Trends Shaping the Future of

The financial sector has reached a

engaged in e-commerce, international

Business Banking

turning point. Digital transformation,

trade, and digital finance rely on rapid

The future of business banking is being

regulatory shifts, and the rise of Fintechs

payment processing to keep their oper-

driven by several key trends:

are rewriting how businesses manage

ations moving. Delayed payments can

money. Traditional banking models,

disrupt cash flow, stall growth, and put

previously built around universal solu-

companies at a competitive disadvan-

tions, are giving way to more specialized

tage.” Dmitrijs explains.

We don’t see compliance as a burden, we rather see it as a core component of our customers value propositions.

Integrated Financial Services: Businesses are looking for seamless financial services that fit directly into their platforms and operations, reducing friction in transactions

services tailored to different industries

Real-time transaction processing,

and business models. Electronic Money

multi-currency accounts, and seam-

Institutions (EMIs), for example, have

less cross-border payments are no

emerged as key players in payments

longer optional for these organisations

and financial services, yet many still

who need the financial tools to support

struggle to find banking partners that

expansino and multimarket growth.

understand their operational complexi-

“This is a strong trend we see in many

with partners that not only understand the

financial institutions.

ties and financial needs.

high-growth industries” confirms

requirements but that can also help them

Advanced Fraud Prevention: As digital

Dmitrijs. As growth accelerates, so

stay ahead of regulatory changes.

transactions increase, so does the need

Rather than resisting these changes,

Dmitrijs Latisevs Chairman of the Board and CEO, BluOr Bank

and financial management.

Real-Time Transactions: The expectation for instant payment settlements is growing across industries, making fast and reliable processing a core requirement for

some banks are leaning into special-

does transaction risks and regulatory

“We don’t see compliance as a bur-

ization, offering dedicated business

complexities. Organisations with these

den, we rather see it as a core compo-

agement systems.

accounts, faster transaction processing,

profiles require financial institutions

nent of our customers value proposi-

Stronger Regulatory Collaboration: Fi-

and infrastructure that supports growing

that can handle higher-risk transac-

tions.” Points out Dmitrijs. Companies

nancial institutions that engage proactive-

Fintechs. We spoke with BluOr Bank’s

tions while maintaining strong fraud

with strong regulatory knowledge,

ly with regulators will help set the stage

Chairman of the Board and CEO, Dmitrijs

prevention measures. “We increasingly

especially in highly regulated markets,

for sustainable growth and innovation in

Latisevs, about the biggest challenges

see businesses that come to us with

are able to reduce the risk of business

the industry.

fintechs and EMIs face when seeking

very specific requirements for speed,

disruptions, fines and compliance

financial services. BluOr Bank, a Latvian

risk management and compliance.

related hindrances. As financial services

This isn’t just about making banking

institution, specializes in serving these

Companies are eagerly seeking to find

become more embedded into technol-

easier, rather, it is about keeping up with

sectors. “The shift toward specialized

partners capable of balancing both

ogy platforms, collaboration between

the way businesses actually operate

banking reflects a broader trend, busi-

speed and security as will better posi-

banks, FinTechs, and regulators will be

today. Companies moving at high speed

tion them to scale.” adds Dmitrijs.

essential to fostering innovation while

can’t afford slow payments, outdated

maintaining trust and security.

systems, or financial partners that don’t

nesses no longer want generic financial services.” Argues Dmitrijs “They want

for AI-driven fraud detection and risk man-

partners who understand their industries,

Regulation as a Strategic Advantage

understand their risks. The banks that

risks, and opportunities” he continues.

Compliance is often seen as an obstacle,

succeed will be the ones that integrate

but for businesses that manage it well, The Acceleration of Payments

it can become a source of stability and

Speed is a fundamental expectation in

long-term resilience. In an environment

business banking. Companies no lon-

where financial regulations are constantly

ger. Have the luxury to wait a day or two

evolving, businesses benefit from working

Dmitrijs Latisevs Chairman of the Board and CEO, BluOr Bank

seamlessly, process transactions instantly, and offer security without slowing businesses down. “Banks need to evolve with their customers, not expect customers to adapt to them.” States Dmitrijs.

52

INTRODUCING HYBRID PAYMENTS - ON THE VERGE OF DIGITAL DOMINANCE Bridging alternative and standard rails to facilitate proximity and in-app payments

By IDEMIA Secure Transactions The seamless fusion of in-store and

What are Hybrid Payments?

Acquirers, either directly or through a

online payments

At IDEMIA Secure Transactions (IST),

partner’s network infrastructure.

Traditionally, in-store and online

hybrid payments are facilitated by to-

payments were considered separate,

kenizing a unique end-user asset, such

Market trends fueling the shift

each with its own set of processes and

as a payment card, bank account, or

Digital Payments have soared be-

technologies. However, the distinction

card reference. This tokenization allows

coming the second preferred method

between these two worlds is becoming

payments to be processed both at the

of payment1. They are led today by

increasingly blurred. Shoppers expect

point of sale (POS) and within apps,

Big Tech wallets such as Apple Pay,

the same level of convenience whether

using alternative payment methods like

Google Pay... However, in the Nor-

they are paying in-store or online.

Account-to-Account transfers, Account

dics, digital domestic mobile wallets

Based Ticketing, or Central Bank Digital

(MobilePay, Swish, Vipps) have gained

ment platforms that allow customers

Currencies. Leveraging EMV tech-

enormous traction with an adoption

to seamlessly transition from shop-

nologies, hybrid payments integrate

rate of 85%2. Thanks to their popularity,

ping in a physical store to completing

the global acceptance of traditional

mobile wallets have contributed to a

their purchase online, and vice versa.

payment cards with these alternative

seamless introduction of A2A pay-

Notably, by 2030, these two payment

methods, ensuring a seamless pay-

ments in the Nordics. Additionally, a

experiences will blend seamlessly.

ment experience for the end-user. In

study conducted by VISA and IPSOS

other words, we support payments

in 2022 shows the most important fea-

means of payments has already taken

networks in ensuring the continued

tures desired by mobile wallet users in

place with wallet solutions offered by both

global ability to pay by expanding their

Europe such as: paying in store (63%),

Big Tech Wallets (e.g. ApplePay, Google

payment acceptance across existing

Peer-to-Peer payments (61%), paying

Pay and Samsung Pay), and Domestic Wal-

rails - supporting both worlds, the digi-

abroad (59%) and bill splitting (49%).

lets (such as MobilePay and Vipps) running

tal savvy and the digital conservative.

Retailers are adopting unified pay-

As of today, bridging physical and digital

Various ways of paying in-store have

Users will receive a hidden payment

been introduced in the Nordics with

mestic Card Scheme (Dankort in Denmark

token on their mobile phones, enabling

Domestic Digital Mobile Wallets. There

and BankAxept in Norway), or Account to

them to make contactless, e-commerce,

has been a significant investment in

Account (MobilePay in Denmark and Swish

or in-app payments through standard

alternative acceptance rails in the Nordic

in Sweden). In other words, we have by

EMV card rail. For hybrid payments, the

payment landscape. Some of the key

long embarked on the Phygital experience,

alternative network must support card

learnings showed that Nordic consumers

arising from online-to-offline strategies.

issuing, tokenization, and connect with

are early adopters of fast and

on card rails, i.e., VISA, Mastercard, Do-

53

familiar payment methods that seamlessly integrate their current user

IDEMIA Secure Transactions

journey.

On July 11, 2024, the EU commission accepted a proposal by Apple to commit to open access to ‘Tap and Go’ technology in Europe. Consequently, third-party wallet providers will get access to the

~10,000 ~10,000

€150M

750+

employees across 50+ countries

More than €150M invested in R&D in between 2020 and 2023

750+ active patent families

2400+

1900

400M+

Serving 2400+ customers in 150+ countries

Serving 1900 Financial Institutions worldwide with physical and digital payments products

400M+ token provisioned for different token requestors, including major mobile wallets

NFC input on iOS devices, without having to use Apple Pay or Apple Wallet. Essentially, all iOS users with an Apple ID registered in the EEA, or traveling temporarily abroad, can use their iPhone for in-store payments through an alternative wallet while preserving the same user journey provided by Apple Pay3.

Furthermore, the European Payments Council have together with its member states introduced SEPA Instant Credit transfers and SEPA Request to Pay, enabling instant money transfer through

customer interface. New and coming

brand recognition, providing Merchants

domestic and cross border payment rails.

digital wallets across Europe, have an

with attractive loyalty offers for their

opportunity to truly compete on the

customers– this will open doors for

Multiple benefits for all

same acceptance rails as Big Tech and

many future opportunities allowing for

interested parties

established international schemes,

a full market disruption.

We are truly at the verge of digital

introducing A2A payments. Wallets and

dominance and disruption of tradi-

issuing banks can capitalize on Open

Secure Transactions can support you,

tional payments as we know it. Now

Banking and creating rich ecosystems

please visit idemia.com or your local

is the time to prepare for the battle of

in a B2B2C approach to enhance their

sales representative.

For more information on how IDEMIA 1. WorldPay – Global Payment Report 2024 2. VISA, IPSOS. Decoding the European Mobile Wallet Evolution. P.13 3. https://ec.europa.eu/commission/ presscorner/detail/en/ip_24_3706

54

Stablecoins: The Silent Revolution Transforming Financial Services (And Why They’re Overtaking CBDCs) The global financial system is undergoing its most significant transformation since the advent of electronic banking. At the heart of this evolution lies an innovation silently reshaping financial services - stablecoins. These digital currencies, pegged to traditional assets like the US dollar, have transcended their crypto origins to become a foundational pillar of modern financial infrastructure.

By Linas Beiūnas, Director of Revenue at Zero Hash

W

hile Central Bank

reshaping how businesses and consum-

Digital Currencies

ers engage with financial services.

(CBDCs) garner significant attention due

to governmental backing, stablecoins, championed by agile FinTech innovators like Zero Hash or Triple-A, are quietly reshaping global finance.

The Infrastructure Inversion: Understanding Stablecoins’ Real Power Stablecoins, digital currencies pegged to stable assets, offer stability that traditional cryptocurrencies can’t. But beyond their stability, their true value

Stablecoins are not simply an evolution but a fundamental reinvention of financial systems, offering a truly internetnative global monetary solution.

Linas Beiūnas Director of Revenue at Zero Hash

lies in the infrastructure inversion they facilitate - rebuilding financial architec-

Why Stablecoins, Not CBDCs, Represent the Future Stablecoins differ fundamentally from Central Bank Digital Currencies (CBDCs)

Linas Beiūnas

in their decentralization and flexibility.

Director of Revenue at Zero Hash

Unlike CBDCs, which centralize control and potentially threaten privacy, stablecoins leverage decentralized blockchain networks that prioritize security, privacy, and resilience against censorship.

Furthermore, stablecoins benefit from rapid private-sector innovation, constantly evolving to meet market

through blockchain technology.

demands. CBDCs, on the other hand,

Companies like Zero Hash, Stripe, and

risk becoming bogged down by gov-

Traditional financial transactions, es-

others are essential in this infrastructure

ernmental bureaucracy, slow to adapt

pecially cross-border ones, suffer from

shift. By offering regulated settlement

to the fast-changing digital landscape.

inefficiency, costliness, and opacity due

and custody solutions, they empower

to outdated legacy systems. Stable-

businesses to integrate stablecoins

Network Effects and Market Momentum

coins directly address these challenges

seamlessly, reducing friction in digital

Despite relatively modest active user

by providing near-instantaneous settle-

transactions and enabling real-time

numbers (around seven million

ments, reducing transaction costs, and

settlements. This fosters an environment

globally), stablecoins already boast

significantly enhancing transparency

ripe for innovation and broad adoption,

transaction volumes comparable to

ture from the ground up.

55

ticularly in regions with limited access to traditional banking. Through lower fees, instantaneous transactions, and easy-touse digital wallets, stablecoins are rapidly becoming the financial tool of choice for the unbanked and underbanked. Just as mobile money solutions like M-Pesa revolutionized financial services in Africa, stablecoins promise to create a universally accessible financial ecosystem.

Real-World Validation: Institutional Adoption Institutions like Visa, PayPal, and even traditional investment giants such as Franklin Templeton have already embraced stablecoins, signaling broader mainstream adoption. PayPal’s use of stablecoins for auditor payments and Visa’s blockchain platform perfectly demonstrate their practical integration into daily corporate operations, reducing costs and enhancing transaction efficiency.

Regulatory Clarity and Future Prospects Obviously, the stablecoin sector’s future growth hinges significantly on evolving regulatory frameworks.

Recent legislative advancements, particularly in the U.S., indicate a growing acknowledgment of stablecoins’ legitimacy, providing a secure environment for further innovation.

Regulatory frameworks not only foster major traditional card networks. This paradoxical scenario - limited user penetration combined with extensive

optimize liquidity management, and improve cash flow forecasts.

Banking giants like JPMorgan,

Stablecoins also play a crucial role

confidence but also ensure stablecoins’

in investment ecosystems, enabling

long-term sustainability and growth, pav-

fractional ownership of tokenized

ing the way for wider adoption and trust.

transaction activity - highlights

integrating stablecoins with corporate

assets - from real estate to equities -

stablecoins’ immense efficiency and

treasury functions, illustrate the poten-

through transparent, secure blockchain

The Future Belongs to Stablecoins

hints at their latent potential.

tial of blockchain-driven solutions. More

networks. The stablecoin’s stability

The evolution from traditional financial

Unlike traditional payment systems,

importantly, automation of routine tasks

ensures investor confidence, promoting

infrastructure to stablecoins represents

stablecoins thrive on powerful network

such as intercompany transfers and FX

broader market participation.

a profound, silent revolution. As the

effects. As more businesses and indi-

conversions through stablecoins simpli-

limitations of CBDCs become clearer,

viduals adopt stablecoins, their utility

fies operations, enhances efficiency, and

A More Inclusive Financial System

expands exponentially, making them

increases transparency, ensuring corpo-

Stablecoins have immense potential to

potential of stablecoins positions them

rations maintain a competitive edge.

improve financial inclusivity globally, par-

as the future of money.

more attractive to new users, thus

the innovative, flexible, and inclusive

With the crucial support of fintech

further fueling their adoption.

Stablecoins in Lending, Credit, Redefining Corporate Treasury and

and Investment

Cash Management

The lending and credit sectors are

Corporate treasuries worldwide grap-

another frontier transformed by stable-

ple with liquidity management, foreign

coins. Through decentralized finance

exchange, and cross-border payments

(DeFi) platforms, stablecoins facilitate

complexities. Stablecoins provide rev-

instant lending and borrowing opera-

olutionary solutions here, offering rapid

tions, bypassing traditional intermedi-

settlement and eliminating delays

aries. Platforms such as Aave, Com-

inherent in traditional banking systems.

pound, and MakerDAO highlight the

Multinational corporations leveraging

transformative power of stablecoins by

stablecoins already today can instant-

offering loans with minimal friction and

ly settle intercompany transactions,

enhanced security.

About Linas Beliūnas is a prominent voice in FinTech and a writer of Linas’ Newsletter, one of the leading FinTech publications globally. He’s currently a Director of Revenue at Zero Hash, a leading digital asset infrastructure company powering giants like Stripe, MoonPay, Interactive Brokers, BlackRock (via Securitze), among others.

pioneers like Zero Hash, PayPal, Stripe, etc. and growing institutional adoption, stablecoins are not just redefining the boundaries of financial services - they are constructing the very foundation upon which future economic interactions will be built.

Stablecoins are not simply an evolution but a fundamental reinvention of financial systems, offering a truly internet-native global monetary solution. The future of money is already here, and it’s stable.

56

A Fintech PR Playbook to build credibility and get media coverage In the fintech world, well-executed PR can be a major asset. Trust and credibility play a crucial role when complex stakeholders and decision-making are involved. For startups looking to attract investors and secure partnerships with stakeholders like banks, regulators, and financial services clients, trust is key. The right PR strategy can set you apart from competition, mitigate reputational risks, and create opportunities for growth. But fintech PR comes with unique challenges, from navigating regulatory sensitivities to explaining complex financial products to broader audiences.

By Julija (JJ) Jegorova, Black Unicorn PR Founder

W

e’ve distilled a series

at a specific moment can be

of key considerations

leveraged. Fundraising rounds,

based on our expe-

regulatory approvals, partner-

rience working with

neobanks, payments companies, BaaS, open banking startups and more. This guide breaks down how fintech startups can build and execute a PR strategy that gets results.

Build a strong PR infrastructure Before sending your first email to a journalist, your fintech startup needs to look credible. Your website should clear-

ly communicate what your company does, who the people behind it are, and

Many fintech media outlets accept guest contributions from founders who can provide insights into topics like payments innovation or digital assets.

ships, significant product launches are prime opportunities for coverage. Longer-term, tapping into trending topics. At different points in time, open banking regulations, A2A payments, or emerging technologies have been relevant.

•

Impact: Measure your real-world significance through transaction volumes, user growth, revenue

Julija (JJ) Jegorova

or employee numbers. These

Black Unicorn PR Founder

help convey your significance in the industry and beyond. It

highlight any regulatory compliance if required. Similarly, a polished LinkedIn

details any banking licenses, security

also amplifies everything. At

presence is essential.

measures, or partnerships with regulat-

larger companies like Klarna or

ed institutions.

Revolut, more things become

A well-structured press page with

newsworthy.

information that typically interests •

Geography: You’ll naturally be

journalists is valuable. Include elements

Understanding newsworthiness

of a press kit (e.g., a company boiler-

Journalists receive an overwhelming

more newsworthy to local, na-

plate, high-resolution images). To help

number of pitches, most of which aren’t

tional, and regional media than

journalists understand your company’s

the right fit. The key is understanding

to global outlets. Consider this

history, include past press releases and

newsworthiness. Let’s break down what

your “home turf advantage” and

media coverage. Transparency is critical

makes something newsworthy:

engage with regional publica-

in fintech, so make sure your website

•

Timeliness: Events happening

tions until you are ready for

57

tier of publications is most like-

international coverage.

•

Celebrity: In the startup world,

ly to cover you based on your

Julija (JJ) Jegorova

this often refers to backing from

impact level.

Black Unicorn PR Founder

notable investors or successful founders. Support from figures

Thought leadership: positioning

like Peter Thiel or firms like

founders as industry experts

Sequoia or Y-Combinator can sig-

In fintech, credibility extends beyond

nificantly boost newsworthiness.

the company to its leadership. Investors, customers, and partners need to trust

Stakeholders and message

that the team not only understands

development

financial technology, compliance, and

Creating a strong messaging frame-

regulation, but also has the experience

work requires identifying your key

and drive to advance the industry.

Many fintech media outlets accept

stakeholders. Beyond the typical stakeholders (investors, customers and

guest contributions from founders who

employees), fintechs must also consid-

can provide insights into topics like

er regulators and financial institution

payments innovation or digital assets.

partners. Each group has different

Speaking engagements at events like

concerns, priorities and decision-mak-

Baltic Fintech Days and other indus-

ing processes.

try gatherings can elevate founders’

When developing your key messages,

profiles and credibility.

start by answering fundamental ques-

Podcast appearances are increas-

tions: What is each stakeholder looking

ingly popular formats that build credi-

for? How does our company’s reality fit

bility while demonstrating trustworthi-

into that picture? The answers should

ness through longer-form discussions

be clear, consistent and adaptable to

that delve into details. Consistent

different audiences without changing

contribution across these platforms

your core value proposition.

establishes your startup as a serious

It is crucial to back up your messag-

industry player.

es with facts, stats and real case studies. For each key message, you should

Crisis communications: a must-have

have at least three supporting items.

for fintech startups

Finally, you need to consider overar-

Fintech companies operate in a space

ching key messages that help you to

where crises can escalate quickly.

convey your story and position you

Whether it’s a security breach, com-

within the fintech universe. Typically,

pliance issue, or partner withdrawal,

you’d want one main key message, and

fintech startups need crisis commu-

three sub-key messages to build your

nication plans much earlier than their

key messaging ‘house’.

non-fintech peers.

Targeting the right media

Key principles include:

The universe of fintech media is

•

extensive. A well-balanced fintech

tive by preparing statements for

PR strategy incorporates trade media

potential scenarios

coverage, niche industry outlets and

•

broader publications appropriate to

legal and regulatory considerations •

sider the following:

Controlling the narrative by using official channels to provide accu-

Trade media: Publications like Finextra and The Fintech

rate updates

Times cover industry trends,

•

partnerships, and product

•

Communicating quickly but carefully, with messaging aligned to

your company’s stage. You may con•

Being proactive rather than reac-

Coordinating between PR and legal teams to ensure alignment

innovations. They’re also likely

lin’s Fintech Blueprint or This

gional publications like Breakit

between public messaging and

to profile founders and their

Week in Fintech. Many fintech

in Sweden or Shifter in Norway

compliance obligations

backgrounds. Consider both

media outlets have their own

can provide valuable coverage.

international and geogra-

podcasts and newsletters that

Business media: From national

Effective crisis response maintains

phy-specific outlets.

reach engaged audiences.

publications like Germany’s

trust with your most important stake-

Startup media: Outlets like

Handelsblatt to international

holders even during challenging

casts: Stakeholders often

TechCrunch and Sifted are

outlets like the Financial Times,

situations. Mistakes should be avoided

follow resources like 11:FS’s

relevant for funding news and

business media reach different

as much as possible, but if they do

Fintech Insider, Lex Soko-

business-building advice. Re-

audiences. Understand which

happen, be prepared.

Niche newsletters and pod-

•

•

58

Green Finance Institute Leads Lithuania-Based Fintechs Through the Regulatory Labyrinth Corporations in the EU must report on approximately 300 sustainability data points to prove compliance—a burden that even the largest corporations struggle with. This burden is made more complex by constantly evolving regulatory requirements.

By R. Paulo Delgado

T

he Lithuanian Ministry of

nies, not only GreenTech, supporting

renewable energy or transforming their

Finance formed the Green Fi-

their journey from data collection

business models,” says Šilgalis.

nance Institute in the structure

through the preparation of sustainability

of ILTE, Lithuania’s National

reports to decarbonisation plans and

green finance, Lithuania has certain

green investments,” says Šilgalis.

advantages, such as a well-developed

For example, the Institute offers

fintech ecosystem. “Fintech, GreenTech,

Development Bank, to help companies navigate these regulatory complexities and thus bring Lithuania on target to achieve its sustainability goals.

A recent report by the well-known economist and former President of the European Central Bank Mario Draghi inspired a review of existing regulations, potentially reducing sustainability disclo-

sure requirements significantly. Still, the

Being strong in fintech means we have the competencies and talented people who can help expand your business sustainably.

Audrius Šilgalis Head of Green Finance Institute in Lithuania

courses to help businesses understand

and green finance are strongly con-

sustainability requirements. The institute

nected,” says Šilgalis. “Being strong in

also established a forum that brings

fintech means we have the competen-

together over 150 representatives from

cies and talented people who can help

businesses, investors, and public insti-

expand your business sustainably.”

tutions. This platform facilitates collab-

Lithuania had over 270 fintechs operat-

oration, while also addressing systemic

ing in the country at the end of 2023 and

issues in the sustainability space like

is widely considered Europe’s fintech hub.

regulatory gaps or taxation challenges.

reporting requirements remain in place,

For companies looking to scale in

“The regulatory environment is also really helpful. The Lithuanian regu-

and the changing landscape puts busi-

lenges,” says Audrius Šilgalis, Head of

nesses in a quicksand situation where

Green Finance Institute in Lithuania. “Our

Lithuania’s advantages for green finance

lator has a cooperative approach for

misreporting can lead to heavy fines.

purpose is also to improve coordination

Lithuania is proactive in green finance,

anyone wanting to establish opera-

“The Green Finance Institute was

between various actors in Lithuania’s

says Šilgalis, driven by the need to meet

tions,” says Šilgalis.

green finance space.”

climate neutrality goals. National plans

Still, probably the most influential

Before the formation, multiple

estimate a need of over €30 billion in

factor for setting up in Lithuania is that

institutions such as ministries, banks,

funding this ambition, with only €14 bil-

no other Baltic country currently offers

and supervisors were working on green

lion available from public sources, neces-

any program similar to the Green

initiatives independently, leading to

sitating €16 billion in private investment.

Finance Institute. The institute receives

formed to help companies understand and successfully deal with such chal-

Audrius Šilgalis Head of Green Finance Institute in Lithuania

inefficiencies and overlaps. The Institute

“In addition to attracting more

requests for assistance and guidance

now serves as a central hub providing

private investments, we’re working

from Latvia and Estonia, and it helps

guidance, technical support, and training.

with companies to achieve decarboni-

where it can, but the support is for

“We work with all types of compa-

sation, whether that means moving to

Lithuania-based companies.

59

Fintechs to Watch Fintech is transforming how we handle our finances. Every year, new companies try to change how we bank, invest, and send money. But only a few truly make an impact.

We’ve been tracking the fintechs that matter, the ones solving real problems. Some are already making waves; others are just getting started. But they all have the potential to rewrite how we do finance.

This isn’t about hype. These companies are building better payment systems, making investing easier, and removing barriers in finance. Whether through AI, blockchain, or seamless payments, they’re worth watching.

Here are the fintechs we believe will make the biggest impact soon.

By Chris Crespo

Estateguru EstateGuru is a European peer-to-peer real estate lending platform founded in 2014 and headquartered in Tallinn, Estonia.

It connects investors with property developers and small businesses seeking short-term, property-backed loans (e.g. bridge, development, and business loans) secured by mortgages.

The platform sets itself apart through rigorous due diligence, low loan-to-value ratios, and requiring collateral for every loan to protect investors. EstateGuru also offers features like an Auto Invest tool and a secondary market for liquidity, which are not always available on competing platforms.

Vinted Pay Vinted Pay is a payment service integrated within Vinted, a leading online marketplace for second-hand fashion.

Headquartered in Vilnius, Lithuania, Vinted Pay streamlines transactions between buyers and sellers on the platform, ensuring secure and efficient payments. Its seamless integration with Vinted’s marketplace offers users a hassle-free experience, eliminating the need for external payment services. This in-house payment system enhances trust and convenience, setting Vinted apart in the second-hand fashion market.

Abillio Abillio is a platform for freelancers and solo entrepreneurs. Founded in 2021 and headquartered in Riga, Latvia, it offers invoicing, accounting, and payment services without requiring users to establish their own companies. Abillio enables users to send VATcompliant invoices to clients in 158 countries and eight currencies.

The platform manages tax accounting and payments on behalf of users, supporting income tax payments for residents of Latvia and Estonia, with plans to expand this feature to more countries. Abillio charges a 5% service fee per payout, with no monthly commitments.

Users can receive payouts to personal bank accounts, PayPal, or crypto wallets. This approach simplifies administrative tasks for freelancers, allowing them to focus on their work.

Centiglobe Centiglobe is a Swedish fintech company specializing in crossborder payment solutions. Based in Stockholm, Centiglobe leverages blockchain technology to facilitate real-time, secure, and cost-effective international transactions. Its decentralized platform reduces intermediaries, lowering fees and settlement times. By offering transparency and efficiency in cross-border payments, Centiglobe addresses common pain points in traditional banking systems, making it a unique player in the fintech landscape.

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