Banking
How Financial Services brands can make a positive impact
Published
5 months agoon
By
editorial
Mick Smyth, Senior Strategist, Siegel+Gale
In the last ten or so years, there has been a clear increase in Financial Services brands actively demonstrating a new level of ethical standards and transparency. In fact, considering the recent challenges, such as the pandemic and the subsequent inflation and cost-of-living crises, many brands are doing some genuinely positive things for our world. Of course, while the 2008 financial crisis was a catalyst in this shift to regain public trust, many brands are leaning on emotion through purpose or values to ensure their efforts authentic. The results of which are high value, human-centric initiatives that benefit our society.

Mick Smyt
However, the recent demise of Silicon Valley Bank, sandwiched by the smaller Silvergate and Signature Banks, has shaken the industry. The shockwaves sent through the global economy are all too familiar. And while for now, it seems the effects won’t reflect 2008, it’s a firm reminder of the frailty of our global economy when exposed by bad actors or a lack of regulation. For those in the industry looking to regain trust through leading by example, the recent events will not have helped their cause.
In the spirit of looking for the positives, I wanted to share some examples of Financial Services brands that are truly making a positive difference in our society and restoring trust in our financial institutions.
Tugende: helping people help themselves
Kampala-based Tugende focuses on informal entrepreneurs seeking to close the credit gap for small businesses in Africa. Initially providing microloans to motorcycle taxis in Uganda, the brand has quickly evolved to offering services such as lease-to-own financing, training and insurance.
Since 2012, Tugende has financed over $60m of income-generating assets, and currently has over 29,000 active clients, all while creating over 800 full-time jobs. From customers and employees to the local economy, Tugende’s actions are rigidly aligned with its mission of ‘helping people help themselves.’
Triodos Bank: promoting quality of life
Based in the Netherlands, Triodos claims to be one of the world’s most sustainable banks. A brand on a mission to ‘help create a society that protects and promotes quality of life and human dignity for all.’ Having launched its first ‘green fund’ all the way back in 1990, it now boasts multiple ethical opportunities. These include four different individual savings accounts as well as current accounts. Investments are designed to have a positive impact on the planet and society, and include financing renewable energy–not fossil fuels, sustainable farming–not fast fashion, and education–not weapons and ammunition.
Unpicking these investments uncovers a vast array of programmes such as community housing, nurseries, and care homes which are all clearly listed on their website. Triodos Bank is very much living its brand values: fairness, sustainability and transparency.
C-Note: closing the wealth gap
CNote is a ‘women-led impact platform that uses technology to unlock diversified community investments to increase economic mobility and financial inclusion.’ In short, this is a bank on a mission to close the wealth gap. California-based CNote’s initiatives include partnerships with the Mastercard Impact Fund, focusing on providing small business loans to women of colour entrepreneurs.
In their 2022 Q4 report alone, the brand highlights that 81% of loans went to BIPOC borrowers, and 97% to low-to-moderate income communities. Delving deeper into these statistics within the Impact Stories section of their website reveals the funding of independent apparel stores, entrepreneurs fighting food insecurity, and a street circus bringing social change. A wide range of programmes that demonstrate the genuine diversity of communities they are empowering.
Amalgamated Bank: financing opportunities for people
Another New York-based institution, Amalgamated Bank, is the largest and one of the only union-owned banks in the United States. Founded nearly 100 years ago, providing working people financing opportunities on par with businesses and the wealthy were key drivers in its formation.
Today, the brand offers a minimum hourly wage of $20 (well above the federal minimum wage of $7.25) while also supporting New York legislation for a fair minimum wage of $15 per hour in the ‘Fight for $15.’ With clients such as Renew Capital–the Africa-focused impact investment firm–and initiatives such as the focus on accessible identification for opening current accounts, Amalgamated Bank is living its mission to be ‘America’s socially responsible bank.’
Lemonade: digital insurance built on social impact
Founded in 2015, Lemonade is a recognised B-Corporation insurance brand operating out of New York. Asking potential customers to forget their preconceptions of the industry, it positions itself as digital insurance built on social impact. The brand removes any temptation to refuse payment to policyholders by only taking a flat fee and donating the remainder of unspent policies to non-profit organisations.
In 2022 alone, over $1.8m was donated to 59 non-profits with programmes ranging from cleaning beaches to feeding school children in Somalia, to providing clean and safe drinking water to people in Mali. Initiatives all chosen by policy holders. The brand’s mission, ‘to transform insurance from a necessary evil into a social good,’ is clearly reflected in each action.
What can other brands learn from this?
Whether in Uganda, the US or the Netherlands, 100 years old or recently founded, a large corporate or start-up, there is a red thread that connects the above brands. Each is led by something authentic. Whether it’s a set of values, a mission or a vision, there is a genuine desire to do something positive for our society. Brand is utilised to clearly communicate their intentions to both employees and the wider world, and to guide stakeholder decision-making. And although they may arguably be ahead of many of their peers, what they do can be emulated. Matching words with actions. Being transparent. Just adding genuine value to your customers and the society in which they live. The opportunity is there.
Banking
Are SaaS platforms challenging banks for a piece of the payments pie?
Published
3 days agoon
September 26, 2023By
admin
Attributed to: Ralph Dangelmaier, Global CEO of BlueSnap
The finance industry is at a tipping point with software firms on the brink of becoming banks. This may seem like a farfetched idea, but now that software platforms come equipped with payment capabilities, their SME customers may want to receive more financial products from these platforms.
This is part of the wider trend of ‘embedded finance’ – when companies which aren’t banks incorporate financial services such as lending, insurance, and payments into their product.
Software firms are particularly leveraging ‘embedded payments’ – where the ability to accept and process payments comes with the software itself. Think of a school consolidating all the payments a parent would make for their children – tuition, books, extracurricular activities – in one software platform. This trend has exploded in popularity because there’s a desire among companies, and their customers, for everything from products to payments to happen under one roof.
With the market value of embedded payments expected to reach £2.08 trillion by 2026 and customers becoming increasingly married to their software, let’s look at how we ended up at this turning point in payments.
How chasing convenience puts money in platforms’ hands

Ralph Dangelmaier
The growth of embedded payments is propelled by the need for ease, trust, and convenience. As platforms are selling payments hand-in-hand with their software, customers don’t need to integrate with additional service providers just to accept payments. And they’re already bought into using the platform for its other functions.
Not only is this kind of back-end reconciliation easy and convenient but it helps software platforms generate revenue too. That’s because software companies that embed payments become Payment Facilitators (a.k.a PayFacs) – allowing them to monetize transactions that happen within their platform.
By selling payments, software firms can see up to a fivefold increase in value per client. Rather than depending on software subscriptions alone, these platforms now receive a cut of every transaction that’s facilitated using their software too. This provides them and the businesses they serve with a mutual incentive – shared profits.
Software platforms are passionate about helping their customers create the most easy-to-use experience to drive a higher volume of transactions. Of course, there are many ways to launch new revenue streams, but why leave money sitting on the table when all you have to do is become convenience-obsessed?
Why finance teams want software and payments in one
As a payment expert who’s worked in a bank’s back office, I know how important a financial software stack can be. In its highest form, it can steer a business’ entire financial strategy.
Often these stacks are well curated, but the biggest drawback is the manual collection of data across platforms. Trying to build a financial picture of a business using your ERP, CRM, human resource and billing system can involve hours of laborious data entry.
For everyday finance teams, this isn’t an efficient use of time. They need to be able to pull data swiftly to advise their executives on financial strategies. CFOs are also under pressure to choose the right software stack to streamline processes and ensure payments ROI.
That’s why payment technology that removes the manual work for finance teams – to get from A to B more quickly – is growing in popularity.
Software firms using embedded payments are saving them hassle and time. Not only that, it helps the key financial decision makers of SMEs stay in a constant state of financial planning, where they can change their strategy whatever the market conditions may be.
The end of traditional banking for SMEs?
Increasingly, SMEs are struggling to get the payments support they need from traditional banks. The ‘higher risk, lower return’ view of the small business market among banks leaves software platforms in a ripe position for a takeover.
There are over 90,000 software companies in the UK alone. With nearly half of software platforms (48%) turning to embedded payments to gain a source of competitive advantage, this figure could represent a threat to corporate banking as we know it.
SMEs don’t have the deep pockets that multinational businesses have. The Amazons and BMWs of the world have long reaped the benefits of a corporate account with a large bank – and the round the clock support this offers.
But SMEs face high conversion fees and often receive minimal support chasing late payments, leaving them between a rock and a hard place. If these businesses can save money by moving from banks to software platforms, then banks are at risk of losing their position over the middle market.
Looming regulation
Until now banks have been able to defend their position because safety and security is key. Once platforms become regulated, then what? It won’t be long before regulators eye up the software industry as their next big focus.
But regulatory bodies like the FCA, PRA and more favour ‘controlled innovation’, so this will take time.
Currently, to process transactions in Europe, businesses must go down the lengthy and costly process of becoming Payment Service Providers (PSPs). That’s why many software platforms are choosing to partner with a licensed payment provider which sells the payment package to them, instead.
In fact, 89% of software platforms choose to work with PSPs rather than become a PayFac themselves. It makes sense when it’s taken more than a year for some platforms to begin processing payments on their own.
Given the sizable financial risk of processing your own payments and the administrative burden this brings, it’s no wonder software firms are looking to fintech for a better way.
After all, it’s not just about processing the payments. A partnership with a payment technology partner comes complete with support in onboarding, underwriting, compliance, risk, payouts and customer support.
In short, software platforms see the benefits of selling payments and are primed to become the next big financial players.
Not only is there revenue for the taking but their customers benefit as well. With software platforms ready to offer SMEs a banking alternative and a superior customer experience, they’re offering a truly win-win solution for all involved. And it’s payment technology partners that can help them make this vision a reality.
Banking
Emerging technology will power long-term sustainability within the UK banking industry
Published
3 days agoon
September 26, 2023By
admin
By Peter-Jan Van De Venn, VP Global Digital Banking at Hexaware Mobiquity.
Sustainability has been a big focus for the banking industry in recent years, with the issue becoming increasingly important for consumers. It’s no wonder that sustainability has become baked into the purposes of almost every bank, from Natwest to HSBC.
However, the economic uncertainty of the last year has led to many banks putting it on the back burner. Challenging market conditions have forced financial institutions to change their priorities to concentrate on protecting the bottom line. Our research found there’s been a significant drop in the number of UK banks saying that sustainability remains a key business strategy. 12 months ago it was a major priority for 100 per cent of banks, but now that number has shrunk to 60 percent.
Whilst it’s understandable that banks are feeling the pressure at the moment, there’s a risk that they will miss out if they hit the pause button. From cost savings brought by innovative digital products and services, to improved brand reputation and increased profitability, there are a lot of longer-term benefits they could be failing to unlock. So how can they keep moving forward?
Losing momentum
Emerging technology holds the key to their success, with the power to disrupt current behaviours and promote a more sustainable culture. Banks are already aware of this, with 76 percent using digital transformation to drive sustainability, but a lack of leadership has made it difficult to build momentum in the last 12 months. Currently just over half (54 percent) of banks have tasked an executive at board level with overseeing sustainability – way down from 83% just 12 months ago.
This lack of board authority means banks are struggling to engage the entire organisation to move ahead with sustainable initiatives. As a result, almost two-thirds of banks are seeing progress slow, admitting they are not actively taking steps to foster more sustainable behaviours throughout the organisation. Those that have taken their foot off the gas need to find a way to move forward again.
No time for standing still
Banks know that technology can drive sustainable behaviour. For instance, many of them are already encouraging their workforce to work remotely, as a way of reducing travel. This has two benefits – not only does it cut the costs of running physical offices at full capacity, but also reduces the bank’s carbon footprint. There has never been a better time to invest in technology to drive more sustainable behaviours.
New digital products and services can also extend the benefits beyond employees to encompass the wider customer base. A fair number of banks are already investing to make this happen. More than a third (35 percent) of banking organisations are using Machine Learning (ML), Artificial Intelligence (AI), cloud and analytics to make digital services more easily accessible. Investment in these technologies will be critical as the number of physical bank branches continues to decrease, with figures from Which? showing this is taking place at a rate of 54 branch closures each month.
Hitting environmental and social responsibility goals
Emerging technologies can also help banks keep pace with tightening ESG rules and regulations. Banks are faced with demands for increasingly granular reporting and transparency on ESG – demanding a new approach. In line, 41% of them are developing data visualisation tools to improve stakeholder engagement and understanding of ESG risks and opportunities, while 37% are using machine learning and artificial intelligence to identify and track ESG risks and opportunities across a wide range of data sources.
More than one in three are also using the blockchain to improve transparency and traceability in supply chains, and implementing digital tools and platforms to collect, analyse, and report ESG data and metrics in a standardised and consistent manner. All these applications of emerging technology will put banks on track to address global environmental challenges and unlock a greener future.
Long-term sustainability
As the economic pressures hopefully start to subside, increasing numbers of banks will start investigating how they can use emerging technologies to provide engaging experiences and value-added services for customers, to drive greater revenue and efficiencies.
Whilst banks are right to focus on their revenue under difficult trading conditions, it’s important they don’t miss out on the long-term benefits that sustainability can bring. To capitalise on this, banks must keep pushing the boundaries and invest in emerging innovations to drive more sustainable banking behaviours, benefiting the planet and driving great digital experiences for customers.
Magazine
Trending


How can law firms embrace automation and revolutionise their payments?
Attributed to: Ed Boal, Head of Legal at Shieldpay Once again, AI is dominating international headlines. This time, it’s...


In-platform solutions are only a short-term enhancement, but bespoke AI is the future
By Damien Bennett, Global Director, Principal Consultant, Incubeta If you haven’t heard anyone talking about artificial intelligence (AI) yet,...
Exploring the Transformative Potential and Ethical Challenges of AI in Wealth Management
Nuno Godinho, Group CEO of Industrial Thought Group In recent years, the advent of AI has sparked both excitement...


Are SaaS platforms challenging banks for a piece of the payments pie?
Attributed to: Ralph Dangelmaier, Global CEO of BlueSnap The finance industry is at a tipping point with software firms...


Emerging technology will power long-term sustainability within the UK banking industry
By Peter-Jan Van De Venn, VP Global Digital Banking at Hexaware Mobiquity. Sustainability has been a big focus for...


Is your business suffering with Fintech FOMO?
Tom Kiddle, Chief Commercial Officer at Equals Money It’s a challenging time for businesses of all sizes, but the past three...


The Future of Banking: Streamlined Cash Management for ATMs
Gaetano Ziri, Innovation Manager, Auriga “Maintaining free access to cash for the community demands robust strategies to mitigate the...


Can AI revolutionise wealth management?
~ The benefits of AI when collecting and analysing financial data ~ Global fintech company Finder reported that around...


Where is the value in generative AI for financial services?
Michael Conway, Executive Partner, Data, AI and Technology Transformation Service Line Leader at IBM Consulting The New York Times...


Connecting the security dots with cyber fusion
Anuj Goel, Co-founder and CEO at Cyware Against the backdrop of Russian-based hacktivists declaring war on Europe’s financial systems, the...


Exploring the symbiotic advantages of SoftPoS for merchants and consumers
By: Brad Hyett, CEO at phos by Ingenico Amid the dynamic shifts that have come to define today’s fintech...


Investing In Bitcoin: What You Need To Understand Before You Buy
Bitcoin—the digital currency that launched a financial revolution—is more than a trending investment. This decentralized currency, free from traditional banking...
How the LEI Can Help Financial Institutions ‘Address’ a Growing Challenge in ISO 20022
The vast complexity and inconsistency of address formats globally presents significant challenges for financial institutions. In this blog, GLEIF’s Head...


Building towards an inclusive financial future
By Catharina Eklof, CCO of IDEX Biometrics From the visually impaired to displaced migrants, the unbanked, and people living...


Euro deep tech M&A deal value expected to reach $20bn+ in the next 15 months
Written by Oliver Warren, Associate at DAI Magister Investment in European deep tech has mirrored the broader decline in...


Why ESG Investing Is Becoming More Important
Author: Urtė Karklienė, Sustainability Manager at Oxylabs Environmental, social, and governance (ESG) term was first mentioned in a 2004...


Preparing banks for digital transformation
By Joman Kwong, Strategic Solutions Manager, Financial Services at Laserfiche Today, digital transformation is imperative for every industry. After...


The critical tech to deliver personalised digital financial experiences
Jay Sanderson, Senior Product Marketing Manager, Digital Experience at Progress Providing customers with outstanding digital experiences is now a must...


Bank-fintech partnerships can shape the future of cross-border payments
Steve Naudé, Head of Wise Platform People and businesses are more interconnected than ever. In today’s global economy, international...


DORA Compliance in Financial Organisations: What You Need to Know
Nick Hogg, Director of Security Training, Fortra The regulatory landscape is tightening for European banking, financial, and insurance institutions....

How can law firms embrace automation and revolutionise their payments?

In-platform solutions are only a short-term enhancement, but bespoke AI is the future
Exploring the Transformative Potential and Ethical Challenges of AI in Wealth Management

Are SaaS platforms challenging banks for a piece of the payments pie?

Emerging technology will power long-term sustainability within the UK banking industry

Is your business suffering with Fintech FOMO?

PCI DSS v.4.0 Latest Updates That You Need to Know

RBI’s MASTER DIRECTION ON DIGITAL PAYMENTS SECURITY CONTROLS

EMV® 3-D SECURE: ENABLING STRONG CUSTOMER AUTHENTICATION

HOW TO SIMPLIFY IDENTIFICATION IN THE GLOBAL DIGITAL ECONOMY WITH THE LEI

EXEGER – CHANGING THE PERCEPTION OF POWER

FUTURE FX PROMO
Trending
-
Finance4 days ago
Investing In Bitcoin: What You Need To Understand Before You Buy
-
Business3 days ago
Exploring the symbiotic advantages of SoftPoS for merchants and consumers
-
Technology3 days ago
Connecting the security dots with cyber fusion
-
Finance3 days ago
Where is the value in generative AI for financial services?