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Good tech is the answer to the vulnerable customer challenge

In February 2021, the Financial Conduct Authority (FCA) introduced comprehensive guidance aimed at ‘ensuring the fair treatment of customers in vulnerable circumstances. This was driven by the recognition that vulnerable people, because of circumstances such as poor health, financial instability, or negative life events, are particularly susceptible to harm if not “treated fairly”. The FCA’s guidance outlines actions firms should take to understand and address the needs of these customers, ensuring they receive “outcomes which are as good as other customers’”. The goal is to create a financial services environment where all customers, regardless of their circumstances, are treated fairly and with respect.

This requires firms to:

  1. Understand everyone’s characteristics and to mitigate any potential harms.
  2. Monitor the consumer through the lifetime of the product/service.
  3. Report on outcomes of vulnerable cohorts, compared to the resilient, for Consumer Duty reporting.
  4. Assess and report on the fair value received by vulnerable cohorts, compared to the resilient.
  5. Maintain evidence of the above.

None of this is easy. The first challenge is how to identify those customers who are vulnerable. Firms are attempting to do this in several ways, dividing them into indirect, or reactive, methods – essentially assessing current data sources – and direct, or proactive, methods – engaging directly with the consumer.

While it’s true that there is a lot of financial data available which can infer financial vulnerability, this is only part of the picture – there is minimal information available on health and lifestyle. Focusing on only financial data provides a woefully incomplete picture. Indirect approaches are largely limited to financial characteristics; the only practical way to obtain health and lifestyle information is to engage directly with consumers.  This is very successful. Firms can obtain good information, directly from consumers, using voice analytics, face-to-face meetings or calls, voice calls, questionnaires and similar approaches.

AI is heralded as a silver bullet – but in the absence of a library of vulnerability data on which to train the AI model, this is currently little more than wishful thinking.

We know that around 50% of people are vulnerable at any one time. The only way to identify that 50% is to assess everyone. Far too many firms began by using reactive methods – waiting for customers to inform them of their vulnerabilities or waiting for vulnerabilities to be identified at points of interaction. These approaches are seldom adequate – identifying few people – so most firms are looking to be both more proactive and thorough in their assessment methodologies.

Once we identify vulnerabilities, the next challenge is how to classify and store the data – with around 100 characteristic data points, each having a range of severities, there is a lot of data on which to base an assessment. If undertaken manually, understanding (and therefore assessment) is subjective – and many early approaches used text descriptions. These are inconsistent and difficult (if not impossible) to use structurally for assessment, management and reporting. Proprietary lexicons of vulnerability bring an objective assessment methodology which delivers consistent data. One such system is the MorganAsh Resilience System (MARS).

After identification and classification, there is the thorny challenge of GDPR. We need to restrict data to only those who need it, while communicating vulnerabilities across firms so that mitigation strategies can be used. Many firms have yet to resolve this. The solution is to code, classify and communicate characteristics – and mitigating strategies – so that an individual’s personal data is not openly passed around.

The next challenge is how to mitigate customers’ vulnerabilities. Many solutions are obvious, and, with flexibility, these can be implemented by front-line staff. However, this approach is too limited to be successful. There is a vast number of mitigations strategies that might be appropriate, vast numbers of consumer groups to signpost to – and firms may have different appetites for customer service for different groups. It’s unrealistic to expect busy staff to be experts in all vulnerabilities and mitigation paths. Again, systems are required to deliver consistency and scalability.

A further development is how vulnerability data is shared between firms. In an intermediated market – which is most of the financial services industry – manufacturers’ products are sold via intermediaries. Typically, intermediaries have contact and relationships with consumers, while the manufacturer maintains the product – often over multiple years. To meet the monitoring obligation, either the intermediary and the manufacturer undertake separate vulnerability assessments, or they collaborate and share information. The industry has been slow on this, with minimal discussions between groups.

While customer vulnerability is a very human issue, for it to be managed it needs data – and systems to support this data. The good news is that this is already happening. Vulnerability tech systems are already in place and working well – and pioneering the new discipline of vulnerability management.

Want to read the full report? Visit https://www.elephantsdontforget.com/resources/customer-vulnerability-your-questions-answered-2/

H2C.org Launches the World’s First Global Market for Green Hydrogen Certificates

H2C.org is launching the first global market and registry for the international trade in green hydrogen certificates. Following in the footsteps of renewable energy and sustainable aviation fuel registries, H2C.org enables the green premiums and carbon removal rights of green hydrogen to be sold discretely from each ton of fuel. H2C.org is set to catalyse international markets for green Hydrogen with nearly 2,000 production projects currently under development globally.

By uncoupling Green Premium Certificates from green hydrogen fuels, H2C.org enables a global market of beneficiaries to decarbonise their Scope1, 2 & 3 emissions and supply chains directly. Meanwhile producers can strike off-take agreements at prices closely aligned to cheaper production methods. H2C.org provides the missing link to create viable international markets for green hydrogen and financing green premiums.

First Carbon Investments founded the H2C.org initiative. Their CEO, Peter Ellen, notes, “Launching H2C.org is a pivotal moment for the emergence of global hydrogen markets. Green Hydrogen is primed to transform sectors, including heavy industry, transport, and agriculture, for a low-carbon future. Developing large export markets is a critical step in developing interoperable and resilient demand and supply.”

The Green Hydrogen industry has been constrained by significant cost premiums associated with producing hydrogen from renewable energy sources. Ellen notes, “There is huge momentum for Green Hydrogen, but bulk international off-takers operate in low margin, high volume industries, where increases in fuel costs are hard to support. Deploying green hydrogen eliminates emissions from global supply chains, benefiting Scope 1,2 and 3 carbon accounts across many value-added goods and services. H2C.org enables all those beneficiaries to remove emissions from their supply chains by buying Green Premium Certificates.”

Scope 1 beneficiaries include heavy industry, transport, shipping, and agriculture, with Scope 3 covering most value-added manufacturing and services, from automobiles to technology and consumer goods. H2C.org provides a direct and cost-effective way for organisations to remove carbon emissions from supply chains while reducing dependency on third-party off-setting.

Today, the largest and most significant green hydrogen production projects are on the cusp of delivering portable energy to some of the world’s highest emitting sectors, often referred to as hard-to-decarbonise industries. Green hydrogen offers a viable replacement for fossil fuels because it delivers renewable energy in a portable, energy-intense, liquid form that can leverage existing infrastructure. In the near term, it will allow organisations and countries to meet corporate and national commitments.

“We see export-focused projects harnessing 4GW+ of dedicated renewable energy to electrolyse seawater for the annual production of 1mn+ metric tons of green hydrogen and ammonia. These projects will drive global transformations and develop resilient markets, and H2C.org enables off-takers to buy at a viable cost.”

H2C.org is now inviting key players to join as development partners. This pragmatic initiative allows partners to be at the forefront of the global hydrogen economy. Ellen notes, “Supply and demand signals are significant, and H2C.org already counts over 100GW of partners with a particularly strong MENA representation. We believe those projects alone represent a 0.7% reduction in global emissions. Together with partners, we are on a mission to make a
giga-ton impact.”

About H2C
H2C, founded by First Carbon Investments, is a groundbreaking initiative designed to accelerate the adoption of low-carbon hydrogen and its derivatives through Green Premium Certificates. They aim to facilitate the development of $trillion global markets for clean technologies. With multiple standards emerging to validate the provenance of green
hydrogen, H2C.org provides an interoperable registry and market to enable global trade.

About First Carbon Investments
First Carbon Investments is dedicated to accelerating the transition to clean technologies globally across the energy, transport, and heavy industry sectors. Leveraging expertise in catalytic finance and provenance management, they invest in and support the development of low-carbon fuels, helping to reduce the world's carbon footprint effectively and sustainably. Founded by industry visionaries with extensive experience in high-growth and global finance, FCI combines strategic insight with practical solutions to meet the demands of the evolving low-carbon economy. Through its comprehensive platform, FCI offers catalytic finance, provenance management, and management consulting services, fostering partnerships that enable the effective implementation of transformative environmental solutions.

For media enquiries, contact info@first-carbon.com

For more information, visit first-carbon.com or contact our media relations team.

To join our network of partners, visit Development Partner Signup or contact us at info@h2c.org or go to h2c.org for more information.

3 easy ways to improve the design of your fintech digital product (when you’re not a designer)

Whether you’re a fintech or startup, we get it—when budgets are tight, design sometimes takes a back seat. But we can’t stress enough how crucial a great design and user experience can be in helping your product succeed. So, let’s look at three core areas that will help you get ahead: the WWW Method, improving your messaging, and gathering evidence to guide your design decisions.

The WWW method

Let’s kick off with a simple but incredibly powerful tool: the “WWW Method.” This is something you can use to assess any webpage or app screen and see if it’s doing its job. All you need to do is look at a screen and ask yourself three questions:

• What is this about?
• Why should I care?
• What should I do next?

These questions need to be answered in just a few seconds—if not, users will likely bounce. In our experience, many businesses are so close to their own product that they’re unable to step back and view their digital experience objectively. The WWW method forces you to simplify and refocus.

Elevating your messaging

Now, let’s talk about something we see many startups struggle with: messaging. Often, businesses either get lost in technical jargon or pitch their messaging too vaguely. Neither works well. It is far better to speak directly to the needs of your audience.

Messaging can be broken down into four levels:

Jargon fest: When content is full of internal speak, acronyms, and buzzwords. This is where messaging is trying too hard to sound impressive but ends up confusing people.

Features: Talking only about what a product does. E.g. “This laptop has 32GB of RAM.” Okay, so what? Not many people care about that unless they know why it matters.

Benefits: Moving on to how those features help users. E.g. “This laptop has 32GB of RAM so that you never have to close a browser tab again.” Now we’re talking!

Needs: This is where the magic happens—where your messaging connects with users on a deep, emotional level. E.g. “Sail through work and play’. That’s what users really need.

The higher you can pitch your messaging on this scale, the better your chances of resonating with your audience. But the only way of finding out how to do that is through gathering evidence by talking to your customers.

Gathering evidence

You are not your user. No matter how well you think you know your product, you can’t rely on assumptions about how people will use it. This is where user research comes in, and it’s even more crucial for startups with limited resources. The less you have to spare, the more important it is to be laser-focused on what really matters to your users.

There are two main types of research to focus on:

Quantitative Research: This is the “what.” It involves looking at analytics. For example, heatmaps can show where users are clicking, scrolling, or dropping off. Funnels can help you identify which parts of your sales process are causing users to leave. This kind of data is essential for identifying problem areas.

Qualitative Research: This is the “why.” It’s about digging deeper to understand why users behave the way they do. You can gather this insight through interviews, usability tests, and customer feedback.

A word of warning though. You can’t get the why from the what. If you’re looking at data and making assumptions about why something is happening, that’s all you’re doing. Making assumptions. You need to talk to real customers to find out why they’re behaving in that way.

Putting it all together

So whether you’re just starting out, or scaling up, there are three main things to keep in mind if you want to improve your design and user experience. First, use the WWW method to make sure your pages are clear and purposeful. Next, elevate your messaging to focus on needs rather than features. And finally, gather evidence through both quantitative and qualitative research to ensure your designs are grounded in real user behaviour.

Design and user experience aren’t things to “get around to later”—they’re the foundation of a successful product. If you take the time to apply these strategies, you’ll see the difference they make, not just in how users interact with your product, but in how they feel about it. And trust me, that feeling is what will keep them coming back.

How we got to these recommendations

We’ve gained this insight from witnessing firsthand the common challenges that fintechs face. For the last two years we’ve been running free design clinics for fintechs and startups, where we help them tackle all sorts of design issues. Find out more about our design clinics, or book one for yourself here https://interaktiv.studio/the-design-clinic

About Interaktiv Studio

We’re a boutique design studio that help startups and fintechs make and implement better user experience design decisions. https://interaktiv.studio/

Barclays Eagle Labs Academy – Gain the skills to grow your business

The Problem:

Running a business is tough, especially in the tech space. There are so many things to think about—Does your product suit your customer’s needs? How do you fund the business? What is a good marketing strategy? How do you build an effective team and scale? So many questions can arise, each demanding careful attention and planning. It can be overwhelming for Founders who are navigating these challenges while trying to bring their vision to life and grow their business sustainably.

The Solution:

The Barclays Eagle Labs Academy understands these challenges and is here to help Founders build their knowledge around such topics. It provides practical solutions to the many questions and hurdles that business owners face. The Academy covers all aspects of starting and running a business, from how to find and hire the best people to how to raise finance effectively. Whether you’re developing your first business plan or considering when it’s the right time to scale, the Academy offers a comprehensive learning platform tailored to your business needs.

What sets the Barclays Eagle Labs Academy apart is the breadth of its coverage. Founders can gain valuable insights into everything from creating a solid business plan to navigating the tricky waters of scaling up. There’s no one-size-fits-all when it comes to business growth, and that’s why the Academy provides a wealth of information, helping Founders develop their skills step-by-step. It’s not just about solving immediate problems, but about building the long-term knowledge needed to create a thriving, scalable business.

 How it is delivered:

The Academy platform is accessible online and via mobile, allowing you to learn whenever and wherever it suits you. There are currently 16 live modules available, and these are delivered through a combination of long-form insights and bite-sized lessons. These modules are designed to offer practical, actionable advice in a flexible framework, making it easy for Founders to learn at their own pace. Whether you prefer to dive deep into a topic or pick up quick tips on the go, the Academy has you covered.

Barclays has partnered with experts across the UK’s business ecosystem, ensuring that each module is written by a topic knowledge expert. This means that Founders have access to top-tier advice, whether they’re working on hiring strategies, securing funding, or marketing their product. And, with new content added regularly, the Academy provides ongoing learning opportunities as your business continues to evolve.

 What else do you get:

Barclays Eagle Labs Academy members also gain access to their Deals and Offers marketplace, which provides exclusive access to products and services that Founders need. For example, members can receive up to $150k of promotional credit for Azure, 12 months of free membership for LawAssure, discounts on software development access, and many more valuable offers.

How to Access:

The Barclays Eagle Labs Academy is a fully-funded resource, meaning it’s completely free to join. You don’t even need to be a Barclays customer to take advantage of the platform. So, if you’re ready to take your business or idea to the next level, it’s time to sign up and start benefiting from the expert knowledge and resources available. Visit their site to join today: https://academy.uk.barclays/

My Experience with FinTech Scotland – A United Nations-like Journey

For the past eight weeks, I’ve  had the privilege of working with a team so diverse it could have passed for a United Nations delegation, all while learning what it means to build a more financially inclusive future. FinTech Scotland gave me the opportunity to not only observe but actively contribute to their mission. It allowed me to transfer skills from previous work experiences, providing flexibility, creativity, and insight into how these abilities can be adapted to the fast-evolving world of finance.

The best way to describe my internship at FinTech Scotland is by sharing what I’ve learned, what the organisation does, and how my contributions helped make a difference. 

What is Fintech?

Before joining FinTech Scotland, I’d never heard the term ‘fintech’ and after attending my interview with the Marketing Director and COO of Fintech Scotland, I still didn’t quite understand.  Two weeks into the internship, curiosity finally got the better of me, so I did what every good intern does who needs to act as if they know what they are talking about. I googled it and the top result presented “Financial Technology.” Well, that cleared things up. It’s a bit like hearing the phrase, “quantum mechanics is just advanced physics”—it tells you something, but not quite enough. The penny dropped for me when I attended an event TSB Bank hosted with FinTech Scotland, where 13 businesses showcased their fintech ideas. I learned that fintech isn’t some alien idea — it is part of everyday life in the apps we use for banking, the digital wallets we rely on and even by the person trying to flog you Bitcoin at a party. 

In short, fintech is the integration of finance and technology, covering everything from banking apps to cryptocurrency. It’s a broad umbrella, and it turns out I’ve been standing under it for years without knowing!

My understanding FinTech Scotland Do?

Now, FinTech Scotland has a comprehensive 76-page Research & Innovation Roadmap that outlines their goals for driving innovation and change within Scotland’s financial sector. One key highlight that resonated with me was their commitment to making a real difference in people’s lives by addressing financial inclusion and tackling health-related challenges. Their role goes beyond supporting fintech entrepreneurs and businesses—they are a catalyst for job creation, data accessibility, and shaping thought leadership in the industry.

Understanding the depth of their mission aligns with my passion of contributing to lasting economic growth within the community through financial inclusion. Seeing how this work can positively impact people’s daily lives has given me a strong sense of purpose and drive to support FinTech Scotland’s goals in any way I can. 

How do I feel I have contributed?

In my internship I managed the company’s social media channels involving content creation, post scheduling as well as ensuring the messaging was concise and inline with FinTech Scotland’s tone. I also learned how to look through social media metrics, review campaigns and adjust them based on the performance data. I handled incoming emails and requests, responding to partners and stakeholders questions. Working in this role, I quickly learned the value of effective communication and strong organisational skills as I juggled multiple tasks to a high standard.

One of the most important projects I have been doing is supporting FinTech Scotland with their Diversity, Equity and Inclusion (DEI) activities. As part of the collaboration with the team, on how we could extend community engagement for the organisation around DEI and sustainability. This was an eye opener for me on the need for inclusivity in fintech. An example of this work was conducting an interview with a leading entrepreneur, Tynah Matembe from Money Matix, on how she herself advocated for financial inclusion through youth education. This interview not only allowed me to work on my communication skills but also contribute in the direction of FinTech Scotland’s mission of promoting fintech initiatives that have a social benefit.

From 8 Weeks to 11: The Journey Continues

What started as an eight-week internship has now been extended to eleven weeks, allowing me to continue contributing and gaining valuable experience. This opportunity allowed me to attend the 7th annual FinTech Scotland Festival event, further building on the knowledge and skills I’ve developed, and continuing to support FinTech Scotland’s ambitious goals for the future. 

Ranecia Johnson, is a Marketing graduate from the University of Stirling, with professional experience spanning both the nonprofit and corporate sectors. Her passion lies in creating meaningful community impact, where she is dedicated to fostering inclusive and diverse environments. Ranecia’s unique skill set allows her to blend creativity and strategy, ensuring that her work not only drives business results but also contributes to social good. With a keen interest in financial inclusion and equity, she is committed to leveraging her marketing expertise to make a lasting difference in the communities she serves.

My 8 week Internship at FinTech Scotland

Between August-September 2024, I had the incredible opportunity to intern at FinTech Scotland. Coming into the internship with limited knowledge of fintech, I was eager yet nervous about diving into an unfamiliar industry. However, my time at FinTech Scotland provided me with not only a deep dive into the world of financial technology but also significant personal and professional development. From day one, I was welcomed warmly by the team, who were genuinely interested in my learning and supported me as I navigated my role. It was clear that FinTech Scotland’s success lies in the strength of its community and the supportive culture that fosters growth. The team’s encouragement and readiness to share knowledge made it easy for me to step into my role and tackle my responsibilities with confidence.

My role involved several key responsibilities which were both challenging and engaging. I conducted proactive data research and analysis, ensuring that the information about the Fintech Scotland community was always up-to-date and accurate. This was crucial, as Fintech Scotland is at the centre of a dynamic and fast-growing ecosystem, and having precise data is essential to effectively track growth and change within the cluster. This work gave me a solid understanding of the importance of data accuracy and its direct impact on decision-making and strategic planning.

Another significant aspect of my internship was producing Management Information reports. These reports captured the current state of the fintech cluster, highlighting growth, key changes and the impact of major initiatives. This helped me enhance my skills in data analysis and reporting, but more importantly it taught me how to synthesize complex information into actionable insights that could be easily communicated to stakeholders.

I was also given ownership of internal processes including maintaining databases and mapping the company Google Drive in preparation for its reogranisation. Under the guidance of the COO, I supported the team on the delivery of initiatives from the FinTech Research & Innovation Roadmap, which outlines FinTech Scotland’s strategic plan for developing and supporting the sector. This included managing data research, stakeholder communication and engagement, and improving internal processes. Contributing to these strategic initiatives was incredibly rewarding, as I felt my work directly supported the growth of the fintech ecosystem in Scotland and improved the operational efficiency of the organisation.

Reflecting on my time at FinTech Scotland, I can confidently say that the internship was a period of substantial learning and growth. Despite my initial lack of fintech knowledge, I was continuously supported and given valuable opportunities to succeed, including attending industry events with the team which expanded my professional network and enhanced my confidence in networking. This experience honed my analytical and communication skills, deepened my understanding of managing a community-driven organisation, and highlighted the power of collaboration in the fintech sector. I am grateful to have been a part of such an incredible team of people and I now feel more prepared for the professional world and equipped to adapt to new challenges. The skills and knowledge I gained have undoubtedly shaped my career aspirations, and I am excited to see where they will take me next.

Alicja Balanda is a final year University of Edinburgh studying business with enterprise and innovation.

Understanding MiCA Sustainability Compliance: How Zumo’s New Feature Simplifies the Process

Zumo, the B2B digital assets infrastructure provider, has introduced a new feature that will change the way crypto-asset service providers (CASPs) in the European Union (EU) manage sustainability compliance. The new addition to Zumo’s Oxygen product helps CASPs adhere to the upcoming sustainability reporting requirements under the Markets in Crypto-Assets (MiCA) regulation.

MiCA, aims to create a consistent framework for crypto-assets across the EU. It includes a range of obligations for CASPs. One such obligation, which many CASPs appear to have overlooked, pertains to the new sustainability indicators drafted by the European Securities and Markets Authority (ESMA). These indicators measure the environmental impact of crypto-assets offered by CASPs, a requirement that must be addressed by 30 December 2024. Industry data suggests that over 80% of CASPs are unaware of this looming deadline, placing them at risk of substantial fines.

MiCA Article 66 mandates that CASPs — including exchanges, brokerages, custodians, and trading firms — operating within the EU or planning to provide services to the EU must have website disclosures detailing the environmental impact of their crypto-assets. Failure to meet this requirement could result in penalties of at least €5 million or 5% of the company’s annual turnover.

Zumo’s Innovative Solution

Zumo’s latest feature, integrated into the Oxygen product, is designed to help CASPs effortlessly meet these new sustainability reporting requirements. The solution provides access to MiCA-compliant sustainability metrics for listed crypto-assets. It leverages high-quality data from the Crypto Carbon Ratings Institute (CCRI), a strategic partner of Zumo, to  build upon Zumo’s ongoing efforts to align digital asset activities with net-zero principles.

One of the key benefits of this new feature is the ability to auto-generate MiCA-compliant website disclosure reports, making it easier for CASPs across the EU to stay on top of their sustainability obligations.

Nick Jones,  Founder and CEO of Zumo said “MiCA’s sustainability requirements are going live to a tight deadline, and bring with them complex data questions as well as potentially hefty fines.[…] It’s become clear that CASPs across Europe simply aren’t ready. In response, we’ve taken another important step on our sustainability journey to add the indicators that will enable service providers to comply with current and future sustainability compliance requirements. With our MiCA solution, CASPs will be able to access a single interface that helps them cut through all the complexity associated with pulling data together, formatting an appropriate template, and providing the output that ESMA is looking for.”

A Pioneer in Sustainable Digital Assets

Zumo has established itself as a leader in sustainable digital assets, with a commitment to shaping a future where financial institutions can operate within a sustainable, compliant framework. The company’s efforts have been recognised by prestigious awards such as the Fintech Finance Awards, the City AM Awards, and the Scottish Financial Technology Awards.

Beyond this, Zumo was a member of the World Economic Forum’s Crypto Sustainability Coalition, which explored how blockchain technologies can support climate action. The company also signed the Abu Dhabi Sustainable Finance Declaration and co-founded the Emerging Technologies Sustainability Taskforce (ETST).

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IDC Marketplace: Asia/Pacific Low-Code/No-Code Development Platforms 2024 Vendor Assessment

Smardaten is officially presented in the first IDC Marketscape Asia Pacific Lowcode NoCode report 2024, which is due to be published on 12th September.

As IDC Marketscape Vendor summary stated:“Smardaten has been positioned as a major player in the 2024 AP Lowcode Nocode Development platform vendor assessment”

The report is based on extensive research and benchmarking, through exhaustive vendor survey, users interviews and client survey. In this report IDC has scored highly on Smardaten’s R&D and Innovation, customer service level, market condition, marketing strategy.

IDC has commented: “Smardaten’s platform provides intelligent data-empowered auto-modeling to reduce the software development lead time. The fourth generation of data-driven NoCode auto-models data without much human interaction, allowing for quick adjustment and rebuilding in response to front-end changes or needs.

Smardaten’s all-in-one no-code platform offers visual suites, including full-stack data management, drag-and-drop application design, and analysis without conventional coding, to greatly expedite software development while improving agility, lowering costs, and increasing quality. Smardaten technology eliminates data silos and bridges the gap between business users and IT, minimizing failure rates in digitalization projects. There are eight view types for information display and over 100 module modules for various aspects of business operations. It also has AI capabilities such as OCR and NLP operations. Smardaten’s OneBuilder enables autonomous component production and industry integration, resulting in a more adaptable business ecosystem. ”

Based on Smardaten’s advanced roadmap on GenAI functionalities enabled functionalities in the platform, we expect to see leading position on the vendor mapping from this report and in the subsequent IDC Marketscape LCNC reports.

When Finance Meets Real Life

The financial landscape is rapidly evolving, with a growing emphasis on integrating financial services seamlessly into consumers’ daily lives. A new report from Rise, created by Barclays and Rainmaking explores this evolution in their report, “When Finance Meets Real Life.” The report, released as part of The Innovation Spotlight Series looks at the convergence of finance and real-life applications, driven by technological advancements, economic pressures, and regulatory changes.

Key Drivers of Change

The report identifies several key drivers reshaping the financial sector:

  1. Economic Pressures: Rising inflation, the cost-of-living crisis, and increasing interest rates are making it harder for individuals and businesses to access credit. These challenges are pushing consumers to become more resourceful, while businesses are shifting focus towards sustainable growth rather than relying on abundant venture funding.
  2. Artificial Intelligence and Personalisation: AI is increasingly being adopted across industries, with nearly 18% of global venture funding in the first half of 2023 going to AI-related companies. AI’s potential to transform financial services is immense, particularly in areas like customer experience and regulatory compliance. Personalised financial services, powered by AI, are becoming crucial as consumers demand more tailored and context-specific offerings.
  3. Regulatory Catalysts: New regulations, such as the UK’s Consumer Duty and the EU’s Green Deal, are shaping the future of finance. These regulations aim to protect consumers and promote sustainability, while also driving innovation by setting higher standards for financial products and services.
  4. Embedded Finance: The embedded finance market, valued at $65 billion in 2022, is expected to grow significantly by 2027. This model, which integrates financial services into non-financial platforms, is revolutionising how consumers access banking services. Examples include the growth of Buy Now, Pay Later (BNPL) services and other point-of-sale financing solutions.

Thriving in a Seamless World

The report also highlights the growing consumer expectation for seamless financial experiences. The report discusses how embedded finance can help banks integrate services more naturally into everyday activities to reduce friction for users. The challenge for financial institutions is not just about offering these services but making them intuitive, timely, and relevant to each customer’s unique needs.

Personalisation and Consumer Engagement

Personalisation in financial services is still catching up compared to other industries. While consumers can personalise products like M&Ms or choose customised content on Netflix, financial services often lack this level of customisation. The report argues for a more sophisticated use of data to predict and respond to individual customer needs, creating a more engaging and relevant banking experience.

Making Money Talks Easier

The report highlights the importance of making financial discussions less intimidating and more accessible to consumers. With rising debt levels and financial stress, financial institutions need to provide empathetic support. This includes using AI and other technologies to simplify interactions and make financial advice more accessible.

Read the full report

Interested in getting notified of the next release?

From payments to banking to wealth management, innovation is moving along at pace, fueled by an evolving, digitally savvy customer base. The Innovation Spotlight Series explores themes and trends within the world of fintech, and how they can impact all our lives.

Get notified

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The Role of AI and Cybersecurity in the Financial Sector

Artificial Intelligence (AI) and cybersecurity are revolutionizing the financial sector. As the digital landscape evolves, financial institutions are increasingly relying on AI technologies to enhance security measures, optimize operations, and deliver personalized customer experiences. The intersection of AI and cybersecurity has become crucial for safeguarding sensitive financial data and maintaining trust in the industry. This article will explore how AI is transforming cybersecurity in finance, the challenges involved, and the essential skills needed to thrive in this rapidly changing environment.

The rise of AI in finance

AI technologies, such as machine learning, natural language processing, and robotic process automation, have been instrumental in transforming the financial industry. By automating routine tasks, AI helps financial institutions to streamline operations, reduce costs, and improve efficiency. Furthermore, AI-driven insights enable financial firms to make informed decisions, assess risks, and develop targeted strategies. One of the most significant benefits of AI in finance is its ability to enhance cybersecurity measures. As cyber threats become more sophisticated, financial institutions must adopt advanced technologies to protect their systems and data. By identifying patterns, detecting anomalies, and responding to threats in real-time, AI is an invaluable cybersecurity tool.

The importance of cybersecurity in finance

Cybersecurity is a top priority for the financial sector, as cyberattacks can have devastating consequences. Data breaches can lead to financial losses, reputational damage, and regulatory penalties. Furthermore, cyberattacks can disrupt financial services – impacting customers and the broader economy. The financial industry is particularly vulnerable to cyber threats due to the vast amounts of sensitive data it handles. Personal information, financial transactions, and proprietary data are prime targets for cybercriminals. Therefore, financial institutions must implement robust cybersecurity measures to safeguard their assets and maintain customer trust.

AI enhances cybersecurity for the financial industry

AI offers several advantages for cybersecurity in the financial sector:

  1. Threat Detection and Prevention: AI algorithms can analyze vast amounts of data to identify patterns and detect anomalies indicative of cyber threats. By continuously learning from new data, machine learning models improve their abilities to recognize and prevent emerging threats.
  2. Automated Incident Response: AI-powered systems can respond to cyber incidents in real-time and minimize the impact of attacks. Automated response mechanisms enable financial institutions to quickly isolate affected systems, mitigate damage, and prevent further breaches.
  3. Fraud Detection: AI can analyze transaction data to identify suspicious activities and potential fraud. By recognizing patterns and anomalies, AI systems can flag fraudulent transactions for further investigation, which can help reduce financial losses.
  4. Risk Assessment: AI-driven risk assessment tools can evaluate the vulnerability of financial systems and identify potential weaknesses. By proactively assessing risks, financial institutions can implement targeted security measures to protect their assets.
  5. Behavioral Analysis: AI can monitor user behavior to detect unusual activities that may indicate a cyber threat. Behavioral analysis enhances overall security by identifying insider threats and unauthorized access attempts.

Challenges in implementing AI for cybersecurity

While AI offers significant benefits for cybersecurity, there are challenges involved in its implementation:

  1. Data Privacy and Ethics: The use of AI in cybersecurity raises concerns about data privacy and ethical considerations. It’s imperative that financial institutions ensure AI systems comply with regulations and protect sensitive data.
  2. Skill Shortages: There is a growing demand for professionals with expertise in AI and cybersecurity. Financial institutions should invest in training and development to build a workforce capable of implementing and managing AI-driven security solutions.
  3. Integration with Legacy Systems: Integrating AI technologies with existing legacy systems can be complex and costly. Financial institutions need to carefully plan and execute integration strategies to maximize the benefits of AI.
  4. Evolving Threat Landscape: Cyber threats are constantly evolving, so financial institutions have to stay ahead of new attack vectors. AI systems must be continuously updated and refined to address emerging threats effectively.

Essential skills for success in AI and cybersecurity

Professionals in the financial sector must develop a range of skills to succeed in the era of AI and cybersecurity:

  1. Technical Expertise: A strong understanding of AI technologies, cybersecurity principles, and data analytics is essential. Professionals must be able to design, implement, and manage AI-driven security solutions.
  2. Problem-Solving Skills: The ability to analyze complex problems and develop innovative solutions is crucial for addressing cybersecurity challenges. Employees must be able to think critically and adapt to changing threat landscapes.
  3. Regulatory Knowledge: Understanding regulatory requirements and compliance standards is essential for implementing AI and cybersecurity measures. Staff must ensure that AI systems align with industry regulations and ethical guidelines.
  4. Collaboration and Communication: Effective collaboration and communication skills are vital for working with cross-functional teams. Experts must be able to convey complex technical concepts to non-technical stakeholders and work collaboratively to achieve security objectives.

Conclusion

AI and cybersecurity are transforming the financial sector and presenting companies with significant opportunities and challenges. By leveraging AI technologies, financial institutions can enhance their cybersecurity measures, protect sensitive data, and maintain customer trust. However, the successful implementation of AI-driven security solutions requires a skilled workforce, strategic planning, and a commitment to continuous improvement. As the financial landscape continues to evolve, professionals with expertise in AI and cybersecurity will play a critical role in shaping the future of the industry.

About Software Mind

Software Mind is a global digital transformation partner with operations throughout Europe, the US and LATAM. For over 25 years they’ve been enriching organizations with the talent they need to boost scalability, drive dynamic growth and bring disruptive ideas to life. Top-notch engineering teams combine ownership with leading technologies, including cloud, AI, data science and embedded software to accelerate digital transformations and boost software delivery.

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