FinTech Magazine March 2022

March 2022 | fintechmagazine.com Finserv: How fintech Finserv: ecosystems xxxxx democratise the financial Banking: landscape WxxxxOx MEN ANDPayment Beazley Digital: Solutions: Underwriting risk in the WExxxxxx ALTH: digital era MANAGING OUR Covea FINANCIAL Insurance: FUTURE Pioneering Vrinda Gupta, Co-founder consumer and CEO of Sequin discusses -centric FEATURING: insurance IBOTT technology SUNRISE BANKS MEDALLIA Banking: A guide to open banking: technology and beyond

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Never miss an issue! + Discover the latest news and insights about Global FinTech... JOIN THE COMMUNITY The FinTech Team EDITOR-IN-CHIEF CREATIVE TEAM VIDEO PRODUCTION MANAGER PROJECT DIRECTORS JOANNA ENGLAND OSCAR HATHAWAY KIERAN WAITE JAKE MEGEARY SOPHIE-ANN PINNELL SAM KEMP MICHAEL BANYARD EDITOR DIRECTOR HECTOR PENROSE MOTION DESIGNER JOE PALLISER SCOTT BIRCH SAM HUBBARD MIMI GUNN TYLER LIVINGSTONE SALES AND MARKETING DIRECTOR PRODUCTION DIRECTORS JUSTIN SMITH DIGITAL VIDEO PRODUCERS JOE MARRITT GEORGIA ALLEN REBEKAH BIRLESON DANIELA KIANICKOVÁ JORDAN WOOD EVELYN HUANG MANAGING DIRECTOR JACK NICHOLLS PRODUCTION MANAGERS DANILO CARDOSO MARTA EUGENIO LEWIS VAUGHAN ERNEST DE NEVE PHILLINE VICENTE MARKETING DIRECTOR THOMAS EASTERFORD CHIEF OPERATIONS OFFICER JANE ARNETA DREW HARDMAN ELLA CHADNEY ROSS GARRIGAN STACY NORMAN MEDIA SALES DIRECTOR MARKETING MANAGER CEO RICHARD TURNER EVELYN HOWAT GLEN WHITE

FOREWORD “We’ve also TOP 100 WOMEN IN explored a range FINTECH AND MORE of trending As we speed towards International Women’s Day, topics, such as FinTech Magazine deep dives feminine finance the ecommerce revolution, fintech Tis the month to celebrate the role of women across all industries, and this month, FinTech ecosystems, Magazine is no exception. and our guide to Join us for our feature on Women in Wealth Open Banking” Management, as we interview two extraordinary trailblazers in finance who are transforming the FINTECH MAGAZINE space in terms of financial services. The CEO IS PUBLISHED BY of Sequin, Vrinda Gupta, has innovated a debit card for women that builds credit ratings, while Cory McCruden is the pioneer behind a wealth management consultancy for women. We are also launching our Top 100 Women in Fintech supplement, which lists the industry’s highest fliers, movers, and shakers in the world of finance. Aside from that, we’ve also explored a range of trending topics, such as the ecommerce revolution, fintech ecosystems, and our guide to Open Banking. Happy reading and enjoy the magazine! JOANNA ENGLAND [email protected] © 2021 | ALL RIGHTS RESERVED fintechmagazine.com 5

CONTENTS Our Regular Upfront Section: 12 Big Picture 14 The Brief 16 Timeline: From Coloured Coins to the NFT Revolution 18 Trailblazer: Stephen A. Schwarzman 20 Five Minutes With: David Messenger 26 38 Sunrise Banks Banking The Leading Light in A Comprehensive Guide to Open Financial Wellness Banking: Technology and Beyond

58 Finserv How Fintech Ecosystems democratise the Financial Landscape 66 Covea Insurance Pioneering Consumer-centric Insurance Tech 46 Medallia Digging deeper for experience management data 78 Payment Solutions Feminine Finance: Women and Wealth Management

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86 Beazley Digital Underwriting Risk in the Digital Era 106 Ibott Insuring the shared economy and beyond 100 Technology The Ultimate Trends in the Fintech Ecommerce Revolution

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BIG PICTURE The Future of Immersive Experiences: Financial Technology and the Metaverse Virtual Reality Financial technology is evolving into a new form with the growth of immersive experiences linked to virtual and augmented reality. Simulated virtual environments, also known as the metaverse, provide new opportunities for companies to offer their customers innovative and engaging experiences. Fintech has a significant role to play in the development of this new frontier. 12 March 2022

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THE BRIEF “THE NEED TO BY THE NUMBERS INCENTIVISE, CULTIVATE, AND SCALE INNOVATIVE WE ASKED YOU WHICH CRYPTO CATEGORY DO YOU THINK COMPANIES MEETING THE UNIQUE FINANCIAL THE FINTECH INDUSTRY SHOULD PRIORITISE YOU SAID: NEEDS OF DIFFERENT DEMOGRAPHICS WAS A (DeFi) 71% SIGNIFICANT FACTOR” Decentralised Finance Sarah Biller (DApps) 10% (NFTs) 8% (Metaverse) Co-founder, Decentralised Non-Fungible 11% Sandbox  Apps Tokens Virtual READ MORE Worlds “NOW THE ECOMMERCE COMPANIES ALSO GIVE REVOLUT FEELS THE LOVE IN IRELAND THE OPTION TO PAY IN More than one in three people in Ireland already use financial super INSTALMENTS. THIS POLICY app Revolut. The company plans to offer personal loans and credit HELPS THEM TO ATTRACT cards to consumers in the country MORE CUSTOMERS” RECORD YEAR FOR FINTECH INVESTMENT Christian Velitchkov Last year was a record year for fintech funding. Figures for the first Co-founder, three quarters show there was $100bn in fintech investment, almost Twiz LLC  double the amount for all of 2020 READ MORE BANKS ‘WORRYING’ ABOUT RECRUITING TALENT “WOMEN’S WEALTH Attracting qualified talent is a concern for bank and credit union IS EXPECTED TO executives. In a survey by Cornerstone Advisors, 65% of respondents REACH US$93TRN said it was an issue – up from 19% in 2021 GLOBALLY BY 2023. I WOULD CAST THESE AS OPPORTUNITIES, RATHER THAN CHALLENGES” Cory McCruden CEO, Wellbly Tech  READ MORE 14 March 2022

RAILSBANK  ONE MAR22GOOD TIMES BAD TIMES ‘TO RAISE Good news for Walmart’s NEW FUNDING fintech start-up ROUND’ announced last year in partnership with Ribbit British fintech is on verge of funding round that Capital. It’s acquiring the would value it at over $1bn, according to UK money management news reports apps Even and ONE, and will be known by Sky News reports that Railsbank has hired the latter’s name going US-based FT Partners to raise a new funding forward. round worth $100m.  NUBANK Brazilian neobank That could be enough to secure elusive ‘unicorn’ Nubank does not status for the British fintech, valuing it at more expect the country’s than $1bn. economic difficulties to be a problem. Its Founded in 2016 by co-founders Nigel Verdon founder and CEO, David and Clive Mitchell, Railsbank provides the Vélez, told Reuters that technology for businesses to rapidly scale and it was “an opportunity to become fintechs. accelerate” and increase its market share. Verdon, a serial entrepreneur and foreign exchange expert, had previously hinted that  N26 Railsbank’s valuation could be close to $1bn. The Berlin-based neobank is facing an Were it to go ahead as reported, the latest employee exodus after funding round would be twice the size of its the departure of several biggest round to date last July. It raised £50.5m high-profile execs, in Series B funding led by Anthos Capital. according to Sifted. The outlet claimed staff In total, the company has raised more than retention at the company $120m over nine funding rounds, according was as high as 40% to insights company Crunchbase. between 2020 and 2021.  PAYPAL Shares in Paypal dropped by 25% after its latest earnings report. The company predicted that revenue growth, total payment volume growth and the number of new active accounts could all be lower next year. fintechmagazine.com 15

TIMELINE From Coloured Coins to the NFT Revolution NON-FUNGIBLE TOKENS (NFTS) ARE UNIQUE, TRADABLE 2016 DIGITAL ASSETS BUILT ON A BLOCKCHAIN. WE TAKE A LOOK AT THE HISTORY OF THIS PHENOMENON, WHICH MEMES HAS BECOME A POPULAR WAY OF SELLING DIGITAL ART. Before long, NFTs moved 2012 2014 in a more familiar direction THE PRE-CURSOR COUNTERPARTY that focused on assets with unique appeal. In To understand the history In 2014, a new financial 2016, people began using of NFTs, we have to go back platform called Counterparty to issue ‘rare to 2012 and the creation of pepes’ – a type of internet Counterparty was meme that centres around a different type of token, launched to expand a green frog and has a cult Colored Coins. Built on the on the possibilities first following. When Ethereum Bitcoin blockchain, these explored by Colored Coins. gained popularity in 2017, tokens could be described Also built on the Bitcoin these rare pepe memes as the pre-cursor to NFTs blockchain, it offered a were sold there and even number of exciting features led to the creation of a as we know them today. including a decentralised “decentralised meme Colored Coins could be asset exchange, tradable marketplace” called used to represent any user-created currencies Peperium where they could tangible asset – cars, houses, precious metals – but the and even its own be bought and sold fundamental limitations cryptocurrency called XCP of the Bitcoin blockchain essentially meant that Colored Coins had several inherent flaws 16 March 2022

2017 2021 2022 PUNKS AND KITTIES BEEPLE NFTs GO MAINSTREAM As more people became Today, NFTs are best-known E-commerce giant Alibaba aware of NFTs, the demand as a means of trading digital launched Beijing Winter art and most transactions Olympics-themed NFTs for creative and unique take place on Ethereum. One featuring speed skating, tradables grew. This led to of the most famous digital aerial freestyle skiing, two specific crazes taking off.. artists whose work has been The first was Cryptopunks, sold using NFTs is Beeple. slopestyle, and figure skating, a series of 10,000 unique In 2021, two of his artworks the virtual badges have digital characters that people – a sculpture piece entitled a traditional Chinese ink could buy, collect and sell. ‘Human One’ and a digital Then came Cryptokitties, a collage called ‘Everydays: painting style. Meanwhile, blockchain game that gave the First 5000 Days’ – were according to data by users a virtual cat that they sold at auction by Christie’s could care for and trade. for a combined $98m. They Coindesk, the global NFT Some cryptokitties even sold are the two most valuable marketplace will be worth in artworks ever sold by NFT excess of US$80bn by 2025 for six-figure sums

TRAILBLAZER STEPHEN A. SCHWARZMAN Building Blackstone Job Title:  Chairman, CEO and co-founder Company: Blackstone Web Summit © Number of years working in the industry 20yr_s £1mn Donated to charity

S tephen A. Schwarzman ex-military, strays from the oil industry, is Chairman, CEO and family friends and randoms”. co-founder of Blackstone – one of the world’s largest While at Lehman Brothers, he private equity firms. made a name for himself in mergers But his current success, coupled with and acquisitions, rising to become an estimated net worth of $38bn, is a managing director by the age of 31. far cry from his early life. Schwarzman Schwarzman co-founded Blackstone was born in Philadelphia and grew up in 1985 alongside Peter G. Peterson, in Abington, a suburb north of the city. a former Lehman Brothers CEO who had briefly served as US Secretary He had his first taste for business of Commerce during Nixon’s young – his father owned a successful administration. linen store and by the age of 10, Schwarzman was helping out by working Though it started life as a boutique the lady’s handkerchief counter. By 14, M&A advisory firm, within a couple of he had started his own lawn-mowing years Blackstone had launched its first business but instead of cutting grass private equity fund and later, by 1990, himself, he focused on attracting new had branched out into hedge funds customers and enlisted his two younger using partners’ own money. brothers to mow the lawn for him. Blackstone’s IPO success In an interview with the Washington By the time of Blackstone’s initial Post in 2019, Schwarzman explained public offering (IPO) in 2007, the how his childhood taught him that not business had more than $88bn’s everybody was going to be the same. worth of assets under management. When pushed by a young Schwarzman The IPO saw shares finish at over $35 why he didn’t want to expand his each, valuing the firm at about $39bn successful business or open more and enriching the personal fortunes stores across Philadelphia, Schwarzman’s of both Schwarzman and Peterson. father answered simply “because I’m Schwarzman remained with Blackstone happy the way I am”. as CEO but Peterson retired shortly after the IPO. He died in 2018. “I thought that was sort of hard to take in,” Schwarzman told the Today, Blackstone claims to have newspaper. “His contentment is what $880bn of assets under management made him a remarkable human being.” including $260bn in private equity and $280bn in real estate. Stephen Schwarzman later studied social A. Schwarzman is still the company’s sciences at Yale before getting his first Chairman and CEO, having indicated taste of finance at Donaldson, Lufkin that he has no intention to retire. He & Jenrette. He went on to complete has two children – the film producer a Masters in Business Administration Teddy Schwarzman, and writer and at Harvard Business School and found podcaster Zibby Owens. a job at Lehman Brothers, which he thought, at that time, was “full of fintechmagazine.com 19 interesting characters, ex-CIA agents,

FIVE MINUTES WITH... David MessengerLIANLIAN GLOBAL, CEO David Messenger is CEO of Hangzhou- based LianLian Global, where he focuses on helping merchants around the world successfully start and grow their cross- border eCommerce businesses. He tells us what both drives and challenges him in the 5 fintechmarkettoday

Q. WHO WAS YOUR CHILDHOOD HERO economic development and international AND WHY? relations, but also sets the analysis in the context of the history of the last two hundred » Odysseus — sometimes known as years. China is so different and largely misunderstood by the West, and most of the Ulysses. As a child I was fascinated by media coverage doesn’t help. There is a huge Ancient Greece, and read the Iliad and information asymmetry between China and the Odyssey multiple times. Odysseus the West, because so many Chinese people captured my imagination with his epic have studied and worked in the West, but journey, never giving up on his quest so few Westerners have spent any time in to return home even when it seemed China. I have been coming to China for over impossible, and the intelligent and creative ten years and feel I am still just scratching the ways he overcame all the challenges and surface of a country and culture which have temptations along the way. developed over thousands of years. Q. W HAT'S THE BEST PIECE OF ADVICE Q. N AME ONE PIECE OF TECHNOLOGY YOU EVER RECEIVED — AND FROM YOU COULDN’T LIVE WITHOUT AND WHOM? TELL US WHY (EXCLUDING YOUR MOBILE PHONE). » I always remember my grandmother » I recently got a digital notebook, which telling me, when I was about eight years old, that 'It’s not the hand of cards you are dealt, really is like writing on paper and it's quickly it’s all about how you play it’. Many things are becoming indispensable. I was a bit unsure always beyond our control, as the pandemic about buying it because I have so many has dramatically illustrated, and the only screens and apps already, which are amazing thing we can control is the perspective we productivity tools but can often be distracting. choose to take on a situation, and our own This tablet's value is completely different from decisions and actions. I always try to take other types of screens, because it enables me a constructive and positive mindset, even to think and focus better by writing things out. in the toughest situation, and to focus on ‘what’s the next best action I can take?’ This Q. IF YOU HADN’T BEEN INVOLVED often opens up bigger opportunities than WITH FINTECH, WHAT WOULD I could see initially. The other great piece HAVE BEEN YOUR OTHER TOP of advice my grandmother gave me was CAREER CHOICE? ‘footprints in the sands of time are not made by sitting down’ — she was a very strong, » I’ve worked in other tech sectors and determined woman! mobile before, and while I think fintech is the Q. W HAT WAS THE LAST BOOK YOU most exciting area to be focused on for the READ, WHY DID YOU LIKE IT — AND next five years at least, I do have an interest HOW LONG AGO DID YOU READ IT? in the future, in looking at new approaches to education. I was lucky to have a great » I just finished three weeks of quarantine education and know how it completely changes lives, but I think education can coming back into China, and have almost be reinvented for the future. Leveraging finished “The Long Game” by Rush Doshi. technology will be a key part of this, but It is a thoroughly researched and insightful analysis of the last 40 years of China’s fintechmagazine.com 21

seeing the limitations of all-virtualFIVE MINUTES WITH... education during the pandemic, it will also be about reimagining the broader who are in the USA. We model of education. have stayed close through FaceTime but it’s not the Q. W HO DO YOU LOOK UP TO same as being together, and IN TERMS OF LEADERSHIP it was so meaningful for me AND MENTORSHIP? to be home with them last Thanksgiving. It was also » I’ve been fortunate to work with Q. W HICH ACTIVITY ARE YOU MOST and learn from several great leaders during my career, but one who standsLOOKING FORWARD TO DOING out for me is Dan Schulman who I worked with closely at Virgin MobileWHEN NORMALITY RESUMES? USA and at American Express. The most valuable thing I learned from» I have recently started travelling him was that the core of leadership is different for each person — it needsinternationally again after being in to be an authentic reflection of who you are and your values, adapted to the context and responsibilities of your role as a CEO, and every CEO 5has to find their own leadership voice. China for 20 months, and it’s fascinating to see how different countries are adapting almost two years into the pandemic. In some places things are much more normal already, like China, with only very targeted lockdowns to tackle local outbreaks, and the UK, where people have moved into accepting the risks of getting on with life relatively normally despite Covid. In parts of the US and Europe, life is still very constrained. The thing I have missed most is spending time with important people in person, especially with my children 22 March 2022

[PHOTO/FACEBOOK ACCOUNT: HANGZHOUFEEL] good to reconnect with friends, colleagues challenges and opportunities of thinking and partners and I’m looking forward to and working from a global perspective, doing this more this year, splitting my time combined with their local expertise and between China, US andEurope — even knowledge. though I’ll have to go through quarantine a couple more times! Q. W HICH ACTIVITY ARE YOU MOST LOOKING FORWARD TO DOING Q. IS THERE A PERSONAL WHEN NORMALITY RESUMES? ACHIEVEMENT FROM THE PAST 12 MONTHS OF WHICH YOU ARE » This is an exciting time for fintech PARTICULARLY PROUD? because of the positive impact it has had » In the last 12 months, we have evolved during the pandemic and will have going forward. Fintech is the most powerful way to become a much more global business. to drive financial inclusion, particularly We now support cross-border businesses for small businesses. Harnessing new across the US, UK, Europe, China and technologies like AI, blockchain and most of South-East Asia, leveraging digital currencies will accelerate the drive the capabilities and learnings we first towards greater inclusion. The growth of developed in China. We’ve been patiently e-commerce during the pandemic has laying the foundation for this over the last dramatically opened up opportunities for four years, building out our end-to-end small businesses and we are focused on global payment network, and it’s exciting supporting local entrepreneurs become to see all of this work come to fruition. I’m global entrepreneurs and take advantage proud of our team who have embraced the of these new opportunities. fintechmagazine.com 23

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Creating Digital Communities

THE LEADING LIGHT IN FINANCIAL WELLNESS AD FEATURE WRITTEN BY: RHYS THOMAS PRODUCED BY: RICHARD TURNER 26 March 2022

SUNRISE BANKS fintechmagazine.com 27

SUNRISE BANKS The pioneering community bank partnering with fintechs to serve the underbanked and build a digital future of financial wellness F inancial wellness has become a core tenet for the global banking sector. It is a commitment to provide customers with the tools, knowledge, and products to better their lives through financial stability and inclusion. For some banks, that means a marketing campaign, or access to online content about saving, investment and loans. For others, it is a suite of products designed to reach the underbanked or serve communities who need access to niche financial services. But at Sunrise Banks, financial wellness is everything. Founded in 1986 by the Reiling family, Sunrise Banks has served communities in the urban core of Minneapolis and St. Paul, Minnesota, for more than 35 years. The US$1.7bn bank is on a mission to be the most innovative bank powering financial wellness. “The mission does really provide the baseline for everything that we do,” says Bryan Toft, Chief Revenue Officer, Sunrise Banks. “We see ourselves as a social entrepreneurship organisation, and a social engine for good.” It is not a new mission statement; Sunrise Banks placed financial wellness and inclusive access to financial services at the heart of its operation from the start. The bank began serving St. Paul’s Hmong community, which was both underserved by the traditional banking system and required access to innovative financial products. 28 March 2022

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SUNRISE BANKS Sunrise UPC: More Wow together! That community bank core remains key to “W e are always looking Sunrise’s role in the lives of its customers at how we can improve today, offering a full suite of foundational the core three things: banking services, New Markets Tax Credit increase access, lower lending, Small Business Administration (SBA) the cost and mitigate lending, and much more. the risk” Powering Financial Wellness BRYAN TOFT “We are always looking at how we can improve CHIEF REVENUE OFFICER, the core three things: increase access, lower SUNRISE BANKS the cost, and mitigate the risk,” says Toft. “Those are the things we look at when we're “We're also a certified B corporation, and trying to innovate and figure out how can we have to provide a lot of transparency and we best serve those customers and provide accountability about our business. We have those services in a better, faster way.” been named Best for the World by B Lab for eight years in a row,” he adds. “And that This is inclusive banking with purpose, “and really is unique. We’re the only CDFI bank in we’re held accountable in a few different Minnesota — there are roughly 250 others ways,” Toft adds. “We are a Community Development Financial Institution (CDFI), which means that at least 60% of our loans are made in low-to-moderate-income census tracts, and we have to certify that with the US Treasury every year. 30 March 2022

across the country, but we’re the only one EXECUTIVE BIO SUNRISE BANKS in Minnesota — and it's really not easy to hit that designation, because you really do have BRYAN TOFT to focus on those core low-to-moderate- income areas.” TITLE: CHIEF REVENUE OFFICER COMPANY: SUNRISE BANKS Now Sunrise Banks is extending its inclusive INDUSTRY: BANKING banking philosophy and the capabilities LOCATION: MINNESOTA, USA to serve more communities across the US through partnerships in the fintech sector. This Bryan Toft is Sunrise Banks’ Chief is a dynamic that has become commonplace Revenue Officer. In this position, across the banking landscape. Fundamentally, Bryan oversees commercial banking/ the incumbent bank, Sunrise, does the heavy lending, treasury management, lifting on the ‘back end’, moving, lending and mortgage and fintech partnerships. storing money, and ensuring compliance. He has been with Sunrise Banks for Fintech partners can leverage that scale more than a decade. From 2014-2017, and wealth of expertise to benefit their he served as president and CEO of customers, offering modern, digital customer Community Bank Owatonna. experiences and access that consumers demand. Bryan has held a variety of roles at Sunrise Banks including credit It is a symbiotic relationship, and a natural analyst, commercial loan officer and next step for Sunrise Banks to increase its EVP regional manager of commercial impact, says Toft: “We need to understand lending in Minneapolis. that the fintech owns the customer relationship, and yet we're held accountable Bryan received a B.S. in Computer for the compliance and the regulatory Science from Buena Vista University accountabilities with those customer and an MBA from the University of St. relationships. So there definitely is a Thomas. He is a board member of the partnership there and we need to know what Minneapolis Chamber of Commerce, our partners want to do in the future so that Twin Cities we can start to give guidance on where things Metro need to be from a compliance standpoint.” CDC and Charter 300+ School Number of Property, employees Inc.

WOLE COAXUM EXECUTIVE BIO TITLE: CHIEF EXECUTIVE OFFICER COMPANY: MOCAFI INDUSTRY: FINANCIAL SERVICES LOCATION: NEW YORK, USA Dynamic financial services entrepreneur with consistent track record of developing and implementing a broad array of high impact and strategic initiatives which achieve measurable results. Adept at creating, developing and retaining diverse, high performing teams across disparate geographies. Strong listening and communication skills that inspire others to reach their peak performance. Focused on transforming businesses and delivering compelling outcomes in a low cost, simplified way that increases value for all stakeholders. PHOTO BY JAMEL TOPPIN

SUNRISE BANKS Partnering for Purpose with Fintechs “H aving insights, and One of Sunrise’s first key partnerships in having the ability to the space is with Mobility Capital Finance, act on those insights, Inc. (MoCaFi), a fintech founded by Wole is how you create Coaxum. A banking veteran of both Citi and a significant amount JP Morgan, Coaxum became frustrated by of value for the the limits of traditional banking and founded customer” MoCaFi to deliver access to financial services to the communities that fell through the gaps. WOLE COAXUM CHIEF EXECUTIVE OFFICER, “There was a large number of people MOCAFI within our society that were not well served by the traditional brick and mortar banking pretty exciting technologies, to reach parts infrastructure,” he says. “But the evolution of the market that have otherwise been of technology as it relates to banking means overlooked by some of the more traditional that no longer do you have to tie your banking banking operations.” resources to a geographic location. I was attracted to how I might use my training and MoCaFi is focused on closing the racial experience, and the emergence of some wealth gap in the US. A staggering 50-55% of African Americans and Latin Americans are fintechmagazine.com 33

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SUNRISE BANKS unbanked or underbanked, face prohibitive access fees, and are unable to build credit and wealth under traditional systems. Partnering with Sunrise Banks allows MoCaFi to address that inequality. “This is why the partnership with Sunrise Banks is so terrific,” says Coaxum. “Their values in terms of helping underserved communities on a consistent basis, not as a project, but core to their mission, has allowed us to innovate. “The key component that you're looking for from a partner bank or a sponsor bank is a strong compliance framework and regimen. Part of the innovation is how we innovate within the framework of the rules that are set. If you do that well, you have a chance to grow, and we've been able to do that as it relates to how we provide bank accounts to everyone in the community.” “We're just trying to get better and faster, so that we can continue to scale with our fintech partnerships” BRYAN TOFT CHIEF REVENUE OFFICER, SUNRISE BANKS The great irony, as Coaxum sees it, is that this is not philanthropy: focussing on diversity, equity and inclusion for all actually leads to success. “You actually run a better business, you have access to more markets, and you can run faster and run further,” he says. “Having that as a core value is why Sunrise is so great, because they believe in that, and they live it every day.” fintechmagazine.com 35

SUNRISE BANKS “H aving [DE&I] as a core value is why Sunrise is so great, because they believe in that, and they live it every day” WOLE COAXUM CHIEF EXECUTIVE OFFICER, MOCAFI Data Fuels Change To support this, Sunrise is undergoing As with every industry, access to more data an ambitious digital transformation to and more sophisticated data science will supercharge its partnership programmes also play a vital role in building the inclusive and provide more access to that data. bank of the future. More data means more “Right now we're going through a core innovation. It is the “holy grail”, says Coaxum. migration of a lot of our operational “Having insights, and having the ability to act on activities to the cloud. That’s going to those insights, is how you create a significant allow more access to data for our fintech amount of value for the customer,” he says. partners, more automation, more “Taking additional pieces of data, for instance, integration,” says Toft. “Data really is the the activities that people do every day, and fuel that powers our fintech programmes making that visible and using that to assess and it's used for everything from that individual is a great example of that. What compliance to billing to reconciliation to you can do over time with data is create new what Wole is saying, which is customer markets, in terms of people who you might insights and analytics. Being able to provide want to lend money or people you might want that real-time data is a bit unique in to do business with. This is great because we're banking. There are a lot of batch processes always looking for new sustainable markets.” and end of day files, so we are moving 36 March 2022

SUNRISE BANKS quickly to be able to provide that real-time And for customers, it means meeting access to data so that Wole and our other and exceeding expectations. “I think the partners can make decisions to move into expectation of speed is here today and new markets.” everybody's still trying to catch up to where the consumer expects to be,” Toft Building a Better Banking Future says. “There's this sense that in the future, In the coming 12 to 18 months, Sunrise will every company is going to be a fintech continue to build with both fintech partners and company, and I believe that in some ways, its customers’ demands and needs in mind. with every day that goes by, technology becomes more and more important to a “Automating the ordinary and bank. That is going to be the key if we look personalising the extraordinary is something ahead to 2030: really making sure that you we're saying a lot around the bank,” Toft have a core agile process for technology says. For fintech partnerships that means within your organisation. That’s what we’re digitising and automating more operations building today.” and continuing to develop API capabilities. “We're just trying to get better and faster so that we can continue to scale with our fintech partnerships.” fintechmagazine.com 37

BANKING 38 March 2022

BANKING A COMPREHENSIVE GUIDE TO OPEN BANKING: TECHNOLOGY AND BEYOND An in-depth analysis of open banking from a fintech WRITTEN BY: DERIN CAG perspective, including expert insights, along with the benefits and drawbacks of the technology O pen banking is one of the most significant changes to the financial services sector in a generation. But what does it actually mean? And how can businesses make sure they are ready for it? This feature article will answer those questions and more. We'll start by sharing the definition of open banking and then explore what fintechs can do to prepare for it. What is open banking? Open banking is a regulation-driven initiative that requires banks to open their APIs (Application Programming Interfaces) to third-party providers. \"At a simple level, it means enabling APIs to share your financial data with the third parties you want to share it with, in a compliant and standardised way,\" said Herpreet Oberoi, Vice President of Customer Success at Infostretch. \"Open banking is smart public policy. It has contributed to the UK becoming a leader in bank innovation and successful fintech innovation,\" added Bill Verhelle, founder and CEO of QuickFi. This technology allows those providers – including fintechs, aggregators and others – to build products and services that interact with bank customers' data. fintechmagazine.com 39

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BANKING \"Since open banking was originally introduced in the form of regulation, the focus of these regulated regions has understandably been on compliance; as a result, open banking has often been painted as a compliance exercise,\" said Eyal Sivan, Head of Open Banking at Axway. \"However, two things are changing: first, regulated players are looking to generate a return on their initial investments; and second, market- driven regions are beginning to adopt open banking in the absence of regulation. These two factors will fundamentally shift the focus of open banking over the next year, from regulatory compliance to the generation of real value.\" What is the purpose of open banking? It's worth noting that open banking is not The overall goal of open banking is twofold. a new concept – it's been around in various First, it's intended to increase competition forms for years. However, the launch of PSD2 and innovation in the banking sector by (the Revised Payment Services Directive) in giving fintechs, and other providers access January 2018 marked a significant milestone, to the data of bank customers. Second, it's as it made open banking mandatory for designed to improve customer experience banks in Europe. by allowing customers to understand their finances better and more easily Many other jurisdictions are also in the compare products. process of implementing open banking, and there's no doubt that it will eventually “OPEN BANKING IS become a global standard. SMART PUBLIC POLICY. IT HAS CONTRIBUTED \"The CFPB's recent moves prove that open TO THE UK BECOMING banking is slowly but surely maturing in the US,\" said Vanni Parmeggiani, Director, Open A LEADER IN BANK Banking & Real-Time Payments at GoCardless. INNOVATION AND \"As regulators continue pushing in this SUCCESSFUL FINTECH direction, we expect that 2022 could be the year of the great bank opening — especially INNOVATION” as the difference in pace between the US and other countries becomes more obvious.\" BILL VERHELLE FOUNDER AND CEO OF QUICKFI fintechmagazine.com 41

BANKING The benefits of using open banking The advantages of utilising open banking are clear. Banks can provide a better customer experience by opening up their APIs while also stimulating innovation and competition in the financial services sector. This innovation, in turn, benefits consumers, businesses, banks, and fintechs alike. \"The benefits to companies that implement aspects of open banking, such as direct data connections, are simply too high to ignore in a rapidly evolving industry,\" said Nick Chandi, CEO & Co-Founder of ForwardAI.\" Other benefits of open banking include: • Increased transparency and understanding of finances, • Easier comparison of products and services, • Improved customer experience, • More efficient payments systems “THE ENVIRONMENT Disadvantages of open banking BANKS ARE OPERATING There are several benefits to utilising open banking, but a few potential drawbacks are IN TODAY WILL also to consider. UNDOUBTEDLY CHANGE First, ethics and privacy concerns may be WITH THE ADOPTION raised due to sharing customer data with third- OF OPEN BANKING” party providers. \"Security and innovation need to go hand in hand to safeguard customer SAM STRASSER data. If open banking players do not put the CEO AT TREASURE right security measures in place, they leave the door wide open to cybercrime and privacy \"It's early days for open banking, with breaches,\" said Adam Moulson, CCO of Griffin. many of the more interesting use cases still emerging. But in ten years time, open banking - and similar open data approaches in other sectors - will be a fundamental part of how the economy works,\" said Marie Walker, Co-Founder of Open Future World. 42 March 2022

BANKING Second, there is always the possibility a good overview of both the advantages that banks may not adopt open banking and potential challenges associated with standards quickly or effectively enough, open banking. resulting in a fragmented customer experience. The role of data in open banking The significance of data in open banking Third, as with any new technology, cannot be overstated. \"The main tenet of there is always the risk of unforeseen open banking is that there is real value and problems arising. power in financial data, and each individual should be empowered to take ownership There are also many other potential of their data and how it can be used,\" stated benefits and disadvantages of open Dan Jones, Special Counsel at Baker Botts. banking which have not been covered here. However, the points above should give fintechmagazine.com 43

BANKING “IN TOTAL, OPEN BANKING PROVIDES GUIDANCE ON HOW BANKS CAN MODERNISE THEIR APPROACHES AND IMPROVE SERVICE TO CUSTOMERS” DAVID ANDRZEJEK GROWTH STRATEGY AT DATASTAX 44 March 2022

BANKING Data is the lifeblood of the initiative, data to improve the speed and accuracy of as it's through data, fintechs and other decision-making in credit. This can give providers can create products and services customers a fairer assessment based on spend that interact with the finances of bank and lenders reduced risk of delinquency when customers. \"The sharing of that data lines of credit are approved.\" promises to deliver innovative new services and spur competition,\" stated Prakash The bottom line Sinha, Technology Executive and Evangelist Open banking is a significant development for Radware. with the potential to revolutionise the financial services industry. It offers many \"In total, Open Banking provides benefits for consumers, banks and other guidance on how banks can modernise providers, with data playing a central role their approaches and improve service to in enabling these improvements. customers. However, each bank will take its own approach in practice to make these “IT'S EARLY DAYS projects work for their business,\" said David FOR OPEN BANKING, Andrzejek, Growth Strategy at DataStax. WITH MANY OF THE \"The role for data here is critical, as it is the MORE INTERESTING big opportunity to deliver on all the promise that Open Banking has.\" USE CASES STILL EMERGING” Data also can improve financial inclusion, as it can help banks identify and assess new MARIE WALKER customers more efficiently. In addition to CO-FOUNDER OF OPEN FUTURE WORLD providing alternatives to credit scoring, fintechs can also use data to develop \"Innovation and digital transformation will products and services that are more relevant be critical to build the banking model of the to specific demographics. future, and a robust fintech ecosystem is one of the building blocks required to support According to Ian Johnson, SVP and MD this journey,\" said Matt Tegnwall, General for Marqeta in Europe, \"Open banking can Manager of Fraud and Security Solutions at also boost visibility into customer purchasing Verint Systems. While there are some challenges to overcome, open banking is likely to play an increasingly important role in the years ahead. Overall, one thing is clear, according to Sam Strasser, CEO at Treasure, \"The environment banks are operating in today will undoubtedly change with the adoption of open banking.\" fintechmagazine.com 45

46 March 2022

Digging deeper for experience management data AD FEATURE WRITTEN BY: JESS GIBSON PRODUCED BY: RICHARD TURNER fintechmagazine.com 47

MEDALLIA Medallia utilises its unique, award-winning SaaS platform, Medallia Experience Cloud, to maximise the impact of data on consumer feedback A t the forefront of AI-powered innovation in the consumer sphere, Medallia is perfectly positioned to own the mantle of market leaders amid the rapid digitisation of the retail, hospitality, and financial sectors – to name but a few. Establishing themselves as pioneers in experience management, the successful US company has been making its mark across the globe since 2001. Since then, the Medallia platform has been powering the decisions of thousands of big-name brands for just over two decades. This success is the result of dedication to a unique approach for both structured and unstructured data collection – one that was borne out of recognising the importance of the fundamentals of feedback, while embracing a holistic approach to listening in conjunction with embedded analytics. “The fundamentals of our solution are not uncommon. Like others, we focus on capturing customer information, analysing it, and serving it up in the places where people or systems can take action,” says Rachel Lane, Contact Centre Solution Principal for Medallia. “Medallia captures experience signals created on daily journeys in person, on calls and digital channels; over video, social media and IoT interactions; and applies proprietary AI technology to reveal personalised and predictive insights that can drive action with tremendous business results.” 48 March 2022

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MEDALLIA A desire to capture both passive and Defining a core ethos and approach active forms of feedback – reaffirmed The key to successfully converting feedback during the early coronavirus days, when into meaningful action is listening. But what interaction and communication became exactly does it mean to listen and, more severely limited – has stimulated recent specifically, to listen well? This is exactly the innovations that are more responsive to same question the company asks of itself consumer behaviour. Add to this the fact regularly, using the responses to define its that many websites were exposed as non- strategy and approach. accessible for vast swathes of users during this same period, and it becomes clear “The richest customer signals are not why interactive, responsive and accessible in passive surveys but in the indirect and applications became more in demand observational data they are sharing with than ever. you every day,” Lane says. “Over the past 2 years, we’ve added voice, video, and digital Whilst this need to adapt may have behaviour capabilities to our platform, been instigated by the pandemic, the helping businesses tap into the voice of the mutable nature of technology and silent majority: those who don’t, and will consumer expectations means that never, take surveys.” the company was already veering in this direction anyway, utilising digital This recognition of ‘the silent majority’ platforms, phone calls, and social media helped shape the company’s holistic to acquire feedback data; the pandemic approach to listening, which began a decade merely shifted the markers slightly. ago. Back then, though, they were “pulling in social data and third party reviews” 50 March 2022