Fintech Finance Podcasts: The FF Salon

Unlocking the Future of Digital Payments: Ever Evolving Customer Needs | Checkout.com | FF Virtual Arena #352

In this discussion, Ali Paterson is joined by Rory O'Neill, CMO of Checkout.com to explore the company's role in the evolving payments industry. Rory explains how Checkout.com helps major global merchants optimize digital payments, improve acceptance rates, and leverage data to enhance customer experience. They discuss how payment solutions are adapting to meet customer needs, the growth of AI in payments, and the challenges surrounding fraud prevention. Rory also highlights the significant shift in how companies approach payments as a core part of their operations.
Checkout.com powers digital payments for global merchants like Alibaba and Vinted.
Digital payment acceptance rates can dip as low as 80%, unlike the 99.9% success rate for in-person payments. Rory suggests the rise of Chief Payments Officers (CPOs) as businesses increasingly recognize the strategic importance of payments.
Exploring the World of Merchant Payments
Checkout.com is a leading digital payments provider that helps large merchants globally process payments. The company focuses on improving payment processing capabilities for high-profile brands like Vinted, Alibaba, and Delivery Hero. O'Neill discussed how the company aims to bridge the gap in digital payment acceptance, where rates can be as low as 80%, compared to in-person payments with success rates above 99.9%. He emphasized the importance of improving these acceptance rates to avoid billions in lost revenue.
O'Neill shared his excitement about working in the payments market, a massive $2.3 trillion industry. He explained how Checkout.com’s focus on digital payments, combined with their technology, data infrastructure, and machine learning, positions the company to help clients improve their payment processes. O'Neill views the company's growth as both an exciting challenge and an opportunity to help merchants thrive in the digital space.
Improving Payment Acceptance for Merchants
A key area of focus for Checkout.com is optimizing small but impactful improvements in payment acceptance. Even minor increases in acceptance rates—measured in basis points—can result in millions or even billions of dollars in additional revenue for merchants. O'Neill believes payments are the unsung heroes of business, integral to revenue, profit, and cash flow, and advocates for a dedicated Chief Payments Officer (CPO) position within organizations to elevate its importance.
Payment data offers deep insights into consumer spending behavior, and sharing this data across the payment ecosystem can help improve the payment experience and reduce fraud. O'Neill shared examples, like spikes in flower orders around Valentine’s Day, which show how merchants can leverage transaction data to improve their offerings and boost business.
Understanding Consumer Payment Behavior
When discussing trends in consumer payment behavior, O'Neill pointed to generational and regional differences. For example, in the US and UK, parents are buying mobile subscriptions for their children, while in China, Gen Z is purchasing subscriptions for their parents. He also highlighted that in regions like the UAE, consumers who sign up for subscription services tend to stay with those services long-term, providing valuable insights for merchants.
Innovative Payment Solutions at Checkout.com
O'Neill highlighted Checkout.com’s innovative tools, like their "Flow" product, which uses artificial intelligence to present consumers with the most suitable payment methods based on their location. This level of personalization can help improve conversion rates on merchant websites. O'Neill believes the future of payments lies in simplifying the process and integrating payments seamlessly into the consumer journey. He sees AI and machine learning playing a major role in making payments more invisible, smoother, and integrated into everyday life.
The Future of Payments
Looking ahead, O'Neill is optimistic about the future of payments, though he cautions that achieving full integration and automation may take time. He envisions a world where AI-driven agents will automate processes like booking taxis or ordering food, triggered by simple consumer actions. However, he acknowledges the challenge of coordinating these technologies to make this vision a reality. To further its mission, Checkout.com actively engages with the wider payments community, participating in major events like Money 2020 in Las Vegas and Amsterdam, and offering industry training through the Merchant Risk Council (MRC). The company also shares its latest insights on LinkedIn.
Key Takeaways
This conversation provides fintech professionals, bankers, and financial services enthusiasts with a deep dive into the crucial role of payments in the digital economy. It highlights ongoing challenges and innovations in the payment space and offers valuable perspectives on how businesses can leverage payment solutions to drive growth and customer satisfaction.
For more great discussions on a variety of topics within finance and fintech, head to our website.

Navigating the NFC Shift: A Game Changer for Digital Wallets? | G+D and Juniper Research | FF Virtual Arena #351

Does NFC technology present opportunities for financial institutions beyond Apple Pay? 
Speaking to Jukka Yliuntinen from G+D Netcetera, G+D’s digital powerhouse division and Nick Maynard from Juniper Research, FF News’s Ali Paterson uncovers the evolving world of NFC technology and its impact on the digital wallet landscape in our latest FF Virtual Arena. 
Global adoption of NFC tech has been uneven but European Commission approval and Apple’s recent move to expand NFC access for third-party wallet apps, creates a unique opportunity. 
Is this shift poised to reshape the mobile wallet landscape, enabling banks to remain at the heart of consumers’ digital lives?
Tune in to the video above find out more about:
Has the “TFL effect” boosted Britain’s use of contactless payment methods?
Global variations in NFC implementation. 
What could Apple’s NFC opening mean for financial institutions?
What can they do to drive customer adoption?
NFC Adoption Around The World
In this video we have the ideal selection of guests. On the one hand there is Jukka Yliuntinen, who is Head of Digital Solutions at G+D’s Digital Powerhouse, G+D Netcetera, and on the other, providing an insight into the landscape, we have Nick Maynard, VP of Fintech Market Research at Juniper Research. Together, they explore the current state and future of NFC (Near Field Communication) technology, particularly in the realm of digital payments and its impact on the wallet landscape.  
Kicking off the discussion, Maynard emphasizes the link between existing card infrastructure and NFC adoption. According to him NFC-based contactless payments have thrived in regions where card usage is already prevalent, like the US and the UK. Paterson prompts the possibility that there has been a “TFL effect” in London, where widespread use of contactless cards on public transport normalized the “tap-to-pay” behavior. Conversely, in markets where cash remains dominant, such as Germany and Austria, NFC adoption has been slower. Maynard also notes the rise of “tap-to-phone” technology, which lowers the barrier to entry for merchants by eliminating the need for dedicated terminals. He attributes the varying levels of NFC success to cost factors, with established card infrastructure making contactless payments relatively inexpensive to implement.
The Apple NFC dominance
Yliuntinen adds to this perspective by focusing on Apple’s recent decision to open its NFC interface for third-party wallet apps on iPhones, following European Commission approval. This move is potentially huge, allowing third parties, including banks, to develop NFC-based solutions comparable to Apple Pay, albeit with some limitations. Users in the European Economic Area with iOS 17.4 or later can now execute NFC transactions directly through compatible iOS apps, powered by Host Card Emulation (HCE). Further updates will allow developers around the world to leverage the Secure Element for NFC transactions from within their apps. Discussing the global variations in NFC capabilities, Yliuntinen highlights the difference between the European market, where use cases are accessible free of charge, and other regions, where fees are as yet undisclosed. 
We also get discussion about the competitive landscape, and whether Apple’s dominance in the NFC space is insurmountable. The strength of Apple’s ecosystem, brand loyalty, and user experience can’t be denied. Yliuntinen points out that Apple Pay users are generally satisfied and that the platform is deeply integrated into the iOS ecosystem. One study found that 90% of users report being satisfied with their Apple Pay experience. That is significant!
But he also emphasises the potential for banks and other players to leverage their existing customer relationships and offer integrated services, such as loyalty programs and digital identity solutions, as a way to compete. He suggests that banks need to define their broader mobile strategy and position NFC-enabled payments within that context.
Future of NFC’s
Simply replicating the Apple Pay experience is not a viable strategy, Maynard agrees. He believes that banks and issuers should focus on offering value-added services, such as loyalty programs, rewards, cashback, and integrated identity services. A hybrid approach, where banks continue to support existing mobile payment services like Apple Pay while simultaneously developing their own solutions could be the road forward. This approach minimizes the risk of customer churn and allows banks to gradually transition users to their own platforms. There should also be a clear return to investment strategy, and banks need to consider NFC-enabled payments as part of a wider digital wallet strategy encompassing account-to-account payments, open banking, and personalized financial management.
Looking ahead to 2025, Maynard outlines several key trends to watch. He highlights the integration of NFC capabilities into existing fintech solutions and digital wallets, citing examples like Curve and PayPal. He also anticipates increased use of “tap-to-phone” technology, particularly in smaller businesses. He suggests that incentivization through loyalty programs and partner ecosystems will be a key factor in driving adoption.  Finally, he points to the potential disruption of adjacent markets, such as the “buy now, pay later” sector, as these companies explore integrating NFC into their offerings. He also mentions the potential for partnerships between card issuers and other fintech companies, such as crypto exchanges, to create integrated experiences. In short, we could see a lot of experimentation and innovation ahead. 
Yliuntinen makes the point that a Global SecurityTech like G+D can empower bank’s customers to tap and pay with confidence – enabled by them and backed by their trusted bank. 
For more great discussions on a variety of topics within finance and fintech, head to our website.

The Future of Fraud Prevention… And Why The Human Touch is Still Needed | myTU | FF Virtual Arena #350

Fraud prevention is evolving… But a human touch is still needed. 
That’s according to Tomas Navickas, co-founder of myTU, a digital banking provider with a unique focus on efficiency and sustainability. 
We spoke to him for our latest FF News Virtual Arena, in which he explains their focus on AI-driven automation for fraud detection, compliance, and customer support. Watch the video to find out more about…
Their extreme efficiency, serving 50,000 clients with just $1,000/month in infrastructure costs.
How AI could drive more effective fraud prevention.
Their fresh approach to strategic team growth.
A bank with a product first mindset
In this Virtual Arena Tomas Navickas, co-founder of myTU, shares the story behind the creation of their digital banking platform, which has a product-first mindset. With a background in software development and payments spanning nearly two decades, Navickas was introduced to his co-founder, Roman, who had the vision for a digital bank when such institutions were still rare. The goal was to create a sustainable digital banking model, avoiding the cash-burning strategies of venture-backed fintechs, and to prioritize financial accessibility and education, particularly for younger users.
As for the market need that inspired myTU, Navickas explained that while digital banks are improving accessibility compared to branch-based banking, trust remains a key hurdle. A lot of digital banks still rely on cash rewards to attract customers, but this doesn’t necessarily translate into long-term trust or engagement with higher-value financial products like loans or mortgages. myTU in response aims to offer an efficient and convenient banking solution for individuals, families, and travelers while maintaining financial sustainability and operational efficiency.
 
AI’s role in digital banking
The conversation then shifted to AI’s role in digital banking. It’s certainly a major topic of conversation, with many banks considering how it will play a role. Navickas highlighted that when myTU started, advanced AI models weren’t as readily available as they are today. Initially, automation was achieved through traditional coding methods, identifying and optimizing processes like transaction categorization and multilingual customer support. However, with the advent of models like OpenAI’s ChatGPT, myTU was able to significantly enhance fraud detection, transaction analysis, and customer communication. AI’s ability to make nuanced, context-aware assessments—rather than relying on rigid rule-based systems—has greatly improved fraud prevention by identifying suspicious patterns and anomalies in invoices, pricing, and transaction behavior.
AI has enabled a real shift in the way they do things, allowing teams to focus on reviewing and refining AI-driven decisions rather than making every decision manually. However, he cautioned that AI without proper oversight can be overly aggressive in flagging transactions, requiring careful prompt engineering and fine-tuning to balance security with usability.
Extremely efficient banking
One of the most striking aspects of myTU’s model is its extreme efficiency. With a customer base of 50,000, the company maintains a cloud infrastructure cost of just $1,000 per month. Navickas attributed this to their commitment to lean architecture and in-house development, avoiding unnecessary reliance on third-party services. Unlike many startups that rapidly scale their teams and software dependencies, myTU follows a philosophy of building efficient, sustainable technology, inspired by earlier software development practices that prioritized minimal resource consumption.
While myTU keeps some services in-house, such as customer support and software development, certain tasks like card printing are outsourced due to high security and regulatory requirements. However, their overall philosophy remains one of in-house efficiency, allowing them to operate with just 25 employees, including a development team of only five people.
The discussion continues with thoughts on the impact of APIs, and myTU’s vision for scaling in Europe (and the challenges they might face there). Be sure to catch the full interview above, and watch more of our Virtual Arena interviews, right here on our website. 
 

The Huge Potential of Card Recycling in Banking | G+D and Mastercard | FF Virtual Arena #348

Increasing numbers of banks are releasing payment cards made of recycled plastics, but how do you get customers involved even further in the sustainability journey? 
Our latest Virtual Arena explores that challenge. We find out how banks can recycle expired payment cards, and involve the end-customers for the benefit of the local community.
Joining us are industry leaders Maya Reisinger from G+D and Joe Pitcher from Mastercard to talk about the environmental benefits and challenges of card recycling, and the need for collaboration to scale impactful solutions.
Watch this insightful conversation to find out more about…
How recycling could drastically reduce plastic waste from billions of cards annually.
How Mastercard are working to address cost, security, and expertise gaps in recycling programs.
The exciting technology G+D are working on to help banks showcase ESG commitments effectively.
What is Card Recycling?
Of course, first things first, it was important to know what card recycling entails. Maya Reisinger, who is Product Management Director of the Convego Beyond portfolio at G+D, introduced this as a method of repurposing expired payment cards instead of discarding them in landfills. She emphasized the flexibility in this approach, noting that some banks integrate recycling into their ESG commitments without publicizing it, while others use it as a tool for customer engagement. G+D are committed to helping banks be more sustainable with a number of focused offerings. 
Joe Pitcher is Vice President of the sustainable cards program at Mastercard & also happens to be Chair of the Greener Payments Partnership, so he made for an ideal contributor to this conversation. He elaborated, describing card recycling as a shift from traditional disposal methods to redirecting these materials into reusable streams. It’s important of course to ensure consumers and institutions are clued up on sustainable practices and mentioned Mastercard’s research into advanced recycling methods, such as chemical recycling, to further innovate in this space.
Why is Card Recycling Worth Pursuing?
Both speakers stressed the environmental and symbolic value of card recycling. Reisinger explained that recycling aligns with the industry’s broader sustainability goals, reducing waste and the carbon footprint associated with virgin plastic production. 
Pitcher quantified the potential impact, noting that recycling even a fraction of the billions of cards produced annually could eliminate significant amounts of plastic waste. Just think, there were 17.45 billion credit, debit, and prepaid cards in circulation worldwide as of the end of 2023. That’s a lot of plastic. He framed these efforts as small but crucial steps towards sustainable goals, signaling the banking industry’s commitment to sustainability.
The Challenges Facing Banks in Card Recycling
Implementing card recycling programs presents hurdles for banks, including concerns over data security, cost management, and finding the right recycling partners. Pitcher pointed out that many banks lack expertise in recycling, making it difficult to know where to start. Mastercard has addressed this by partnering with TerraCycle and creating scalable programs to simplify participation and reduce costs.
Reisinger added that banks often struggle to allocate resources to such initiatives, as recycling is not their core focus. G+D helps by tailoring solutions to individual banks’ needs, from secure card collection to partnerships with local recyclers. A partnership they have with Santander are an example of this, where G+D manages card shredding and recycling whilst the bank can document compliance with ESG standards.
A Shared Vision for Sustainability
Both Reisinger and Pitcher highlighted the importance of collaboration in overcoming barriers and driving scale. Pitcher emphasized the role of economies of scale in making recycling programs more cost-effective, urging banks to pool efforts under unified programs. Reisinger reinforced the need for external expertise, noting that G+D leverages its global partnerships and experience to streamline processes for banks, making recycling programs feasible and impactful.
The discussion also touched on the broader sustainability landscape. G+D is the first payment card provider to pledge the end of using virgin plastic in payment card products by 2030. In parallel, Pitcher noted Mastercard’s mandate to eliminate first-use PVC from card production by 2028, encouraging the use of recycled or bio-based materials. Reisinger also discussed G+D’s lifecycle analysis approach. This means ensuring sustainability considerations run all the way through to product design and material choices from the outset.
Card recycling won’t solve all environmental challenges, but it turns a challenge into opportunity and it represents a significant step forward for the financial sector. It may even increase customer trust in their bank. 
To watch more great conversations like this one, on all areas of banking, payments and fintech, be sure to check out more of our Virtual Arena’s on ffnews.com. 

Customer Onboarding and Fraud: The Challenges | Mitek and NatWest | FF Virtual Arena #349

Our latest Virtual Arena explores the challenges and strategies in place to ensure secure and inclusive customer onboarding while also making the process user friendly. 
Financial institutions are cautiously increasing the data collected from customers—both actively and passively—which is used to enhance identity verification and transaction security.
Chris Briggs, Chief Product Officer at Mitek Systems and Kathryn Robinson, Commercial Global Lead at NatWest discuss the focus that banks have to enhance security and KYC processes.
Briggs and Robinson agree that banks need to reduce friction while ensuring robust security and that digital verification and fraud prevention tools such as biometrics, such as voice, fingerprint or facial recognition, offer quick and efficient processes but these technologies aren’t always available to those without digital resources. 
Fraudsters have been exploiting gaps between different banks’ security measures, and moving their tactics to areas of lower resistance, however the inclusion of AI in fraud facilitates both the creation of fraud and its detection through advanced algorithms. 
Fraud techniques like face swaps and social engineering are countered by AI-driven checks and secondary verification processes. Biometrics, such as fingerprints, voice facial recognition aim to simplify customer interactions but are not foolproof and require measures like liveness checks and layered fraud prevention strategies. 
Deepfakes are a more sophisticated type of fraud that banks are seeing emerge at a very rapid pace and AI chatbots that interact with fraudsters delay their effort and are considered as potential future strategies for direct fraud prevention.
Mitek’s solution focuses on minimising false positives and ensuring fraud strategies do not hinder genuine customers, emphasizing that banks must offer inclusive, flexible solutions that cater to diverse customer needs, balancing efficiency and security.
The availability of this advanced technology to anyone amplifies the reach and impact of fraud campaigns. A broad-based topic, the world is seeing a lot more emerge in the regulation around AI, biometrics, the use of biometrics and their effectiveness, when they can be used and not.
In conclusion, combatting fraud requires continuous adaptation, with a mix of technology and human intervention, customer education, and regulatory compliance.

Under the Hood: How AI Software Can Drive Banking Success From the Inside | Pendo, ING and Nordea | The Fintech Show #150

How GenAI can be used to supercharge financial services from the inside out. 
 
There's a lot of talk about how Generative AI can be used to improve customer experience, but what are the implications for internal software and back office processes? 
 
In this episode of The Fintech Show, Trisha Price from Pendo, Marnix van Stiphout from ING, and Søren Andreasen from Nordea discuss the transformative impact AI is having in this area. 
 
Tune in to this informative episode to find out how:
 
AI can automate KYC and CDD processes.
Banks are leveraging AI to tailor user interfaces based on roles and experience.
Tech can help surpass challenges posed by legacy systems.
 
Leveraging AI for Digital Transformation
AI adoption in all industries is growing and this is certainly true of financial services. According to the FCA, in the UK, 75% of firms are already using artificial intelligence (AI), with a further 10% planning to use AI over the next three years. Many organisations are now thinking about how it can be used to boost internal processes and the day to day lives of employees. But just implementing these tools doesn't necessarily guarantee success. Trisha Price, who is Chief Product Officer at Pendo, points out that the success of this depends on how well financial institutions use data. 
She highlights three types of data that are crucial: quantitative (how employees use applications), qualitative (how they feel about them), and visual (tracking user behavior like repetitive clicks, which indicate frustration). By analyzing these data points, financial institutions can refine employee and customer experiences, ensuring that the software investments they make, actually do yield productivity gains and business value.
AI’s Role in Banking Operations
So how can AI be used in banking? We’ve looked at this before and got more great thoughts in this episode. 
Marnix Van Stiphout, Chief Operations Officer at ING, acknowledges that while machine learning has been integral to banking for years—powering services like instant lending—generative AI (GenAI) presents new opportunities. One area he sees particular promise in is streamlining Know Your Customer (KYC) and Customer Due Diligence (CDD) processes, which traditionally require significant manual effort. AI-driven automation can gather and analyze vast amounts of data, enabling faster decision-making and reducing operational costs.
Søren Rode Jain Andreasen, Head of Digital Customer Engagement Hub at Nordic bank Nordea, echoes this sentiment, noting that many banks, including their own, are already using AI internally to enhance efficiency. AI-driven automation shortens process cycle times and improves customer experience while maintaining data security. It’s also being used internally for everything from risk assessments to capital requirement models, and GenAI is quickly becoming another essential tool.
AI Powered Decision Making
Of course, we’re also interested to learn how AI is shifting the role of bankers by acting as a decision-support tool. Price talks about how AI-driven assistants can analyze customer data to suggest personalized product recommendations and pricing strategies. Beyond insights, AI agents are beginning to take on tasks traditionally handled by employees, further streamlining operations and improving customer interactions.
Van Stiphout emphasizes the strategic question of whether to build or buy AI solutions. He suggests that banks should develop AI tools in-house if they directly impact client satisfaction. However, echoing Price’s earlier thoughts, he stresses that successful AI implementation depends on data readiness—ensuring that data is clean, structured, and accessible.
Another key challenge in banking is legacy systems, something Andreasen clocks onto. Advisors often have to navigate multiple platforms, increasing the risk of errors when transferring data. The good news is AI can help automate these processes and detect inconsistencies, reducing error rates and enhancing operational accuracy.
Personalization Through AI
We talk about personalisation a lot and this is something that has come up before, in interviews with the likes of CX bot, Zingly.ai. But it’s not just personalising the customer experience that could be valuable. 
Price also discusses AI’s role in creating personalized experiences for employees too. Consumer platforms like Amazon and Netflix have shaped expectations for personalization, and financial institutions must follow suit. AI can tailor software based on the user’s role, experience level, and language preferences. For instance, an underwriter and a retail banker should have distinct interfaces suited to their tasks. Similarly, first-time users might benefit from a simplified experience, while seasoned professionals require quick access to advanced functionalities.
She also highlights AI’s role in localization, enabling automatic translation of banking interfaces to serve diverse customer bases. This ensures seamless communication and improves accessibility for global users.
As shown by this discussion AI is no longer a futuristic concept it’s a present day reality and it’s changing the way banks operate. Watch the video to find out how it could work for your organisation and check out our website for more great videos just like this one.
 

How BaaS Can Open New Revenue Streams for Banks | Tuum, Zenus Bank and LHV | The Fintech Show #149

In the latest episode of The Fintech Show, Rivo Uibo from Tuum, Gabriel Viera from Zenus Bank, and Daniel Rowlands from LHV Bank discuss the evolution of Banking-as-a-Service (BaaS), and the revenue generating possibilities it presents.
As the space matures, priorities are changing. Seamless onboarding is one major goal but compliance is also key. 
Watch the episode to find out about:
Open APIs are presenting very real opportunities to scale.
How Zenus Bank are enabling LATAM super apps to offer U.S. banking services.
The challenges facing Open Banking growth?
The Evolution of Banking-as-a-Service (BaaS)
The BaaS market has matured. For one, it is growing. It was valued at $15.9 billion in 2023 and is expected to expand to $64.7 billion by 2032. Commenting on the demand for this technology, Tuum co-founder Uibo suggests that banks are now under pressure to stay relevant in an increasingly competitive landscape, seeking new revenue streams while leveraging their existing infrastructure. 
Initially, many BaaS providers targeted fintechs with relatively simple offerings but as the market evolves, compliance and economic viability have become critical focus areas. Now, successful players in this space, like LHV and Zenus, are focusing on solving real problems and delivering high-value integrations to their specific customer segments.
Rowlands from LHV, builds on this by emphasizing the importance of seamless onboarding for scaling operations. Efficient KYC (Know Your Customer) and KYB (Know Your Business) processes allow fintechs to expand quickly across multiple jurisdictions without administrative bottlenecks. LHV, who saw significant growth in 2023 and 2024, embraces an open approach and its APIs are publicly available to ensure transparency and ease of integration. Rowlands believes that fostering collaboration in this way is essential for driving industry progress.
Viera, who is Chief Compliance Officer at Zenus, provides a real-world example of how their offering enhances customer engagement while expanding market reach. Super apps in Latin America, for instance, can now offer U.S. banking services directly to their users, creating a frictionless experience. Zenus’ approach allows for deep customization via APIs, ensuring a tailored and branded user experience.
The Role of Technology in Scaling Modern Banking
Modern banking platforms need cloud-native, API-first architectures, Uibo says. By leveraging microservices and asynchronous processing, institutions can achieve the scalability required to support high transaction volumes while maintaining 24/7 availability. These technological advancements ensure that BaaS providers can meet growing customer demands without compromising reliability.
Viera also explains how Zenus Bank has strategically evolved from a digital bank into a flexible platform supporting diverse business models. By offering embedded banking solutions, Zenus differentiates itself and gains access to new demographics, particularly in international markets. Through strong B2B relationships, the bank can extend its services beyond traditional banking, making financial services more accessible across various industries.
Rowlands shares LHV’s journey in open banking, highlighting its well-established presence in Estonia, where LHV powers payments infrastructure across physical and digital channels. Now, the bank is bringing this expertise to the UK, launching a retail bank and providing payment initiation services to fintech clients who want to generate revenue this way. There are challenges to commercializing open banking however. Many providers struggle with compressed margins and fierce competition. The way forward, he argues, is moving beyond basic transaction services and solving more complex problems like fraud prevention and payment orchestration—areas where businesses are willing to pay for real value.
Tuum’s Unique Advantage in Banking Infrastructure
Uibo positions Tuum as a company with a deep-rooted understanding of banking infrastructure, shaped by decades of experience. It’s certainly true that they have consistently pushed technological boundaries, from building real-time transactional core banking systems in the early 2000s to developing microservices-based platforms. This expertise gives Tuum a competitive edge in delivering scalable and secure banking solutions tailored to today’s needs.
We also hear about the critical role of data in payment processing from LHV’s Rowlands. With multiple payment schemes and varying acceptance rates across banks, fintechs need better insights to optimize transaction flows. LHV helps clients navigate these complexities, advising on the best payment routes and minimizing potential pitfalls like IBAN discrimination. 
There are a number of key takeaways here and the discussion underscores how modern banking is opening up new revenue streams through agile, technology-driven ecosystems. Be sure to let us know what you think of the episode above and catch more great conversations just like this one, on our website. 

What if European Startups Had a Silicon Valley Mindset? | Hoxton Ventures | FF Virtual Arena #347

What if European Startups had access to a Silicon Valley mindset? In the latest Virtual Arena we spoke to Hussein Kanji, founding partner of Hoxton Ventures, who shared his perspective on early-stage venture capital and some of the challenges facing the European tech ecosystem.
It’s a really interesting look at how we can build globally competitive companies in Europe. Watch the interview to find out how…
Hoxton Ventures combine European focus with Silicon Valley principles to scale startups internationally.
How growth-focused valuations differ compared to the U.S. market.
His thoughts on the future of cybersecurity.
Hussein Kanji is a founding partner at Hoxton Ventures, with significant experience in the VC industry, both in the U.S. and Europe, and offered a fascinating perspective for fintech professionals, bankers, and enthusiasts.
A Career Rooted in Early-Stage Investing
In the interview, Kanji began by explaining his role at Hoxton Ventures, a firm he co-founded a decade ago, specializing in seed-stage investments. His career path led him from building companies on the U.S. West Coast to joining a major American VC firm, and ultimately establishing Hoxton Ventures in London. His focus on early-stage investing stems from his entrepreneurial roots and a belief that the early phases of a company’s journey are the most rewarding, albeit risky. Kanji emphasized that identifying promising startups at this stage requires a blend of art and science. With three IPOs from 17 investments in their first fund, their record demonstrates their expertise.
The Early-Stage Appeal
When asked why he chose the risky early-stage market, Kanji highlighted its intellectual stimulation and potential to shape the future. He reflected on his early encounters with venture capitalists, noting how their role as financial enablers rather than creators aligned with his strengths. This inspired his shift from entrepreneurship to investing. Early-stage VC, according to Kanji, allows for profound impact by helping startups build a foundation for growth, often leading to transformative outcomes.
A European Venture Firm with a Silicon Valley Mindset
Kanji outlined Hoxton Ventures’ distinctive approach: combining a European presence with Silicon Valley principles. The firm prioritizes guiding startups to scale in the U.S., recognizing it as the world’s largest accessible market. This strategy often involves encouraging founders to focus on America early, despite the challenges of relocation and expense, as the U.S. market can exponentially increase a company’s size and valuation.
Another cornerstone of their strategy is leveraging Silicon Valley’s accumulated expertise. By maintaining connections with the Valley, Hoxton ensures its portfolio companies remain competitive on a global scale. Kanji emphasized the importance of understanding what “best-in-class” means by benchmarking European startups against their American counterparts, benefiting from decades of industry knowledge concentrated in California.
Challenges in the European VC Landscape
Kanji candidly discussed the challenges European startups face compared to their U.S. peers. He highlighted the cultural and structural differences that impact valuations, particularly in public markets. For example, high-growth companies like Darktrace struggled to achieve U.S.-equivalent valuations in the UK, partly due to the London Stock Exchange’s preference for dividend-paying, profit-oriented firms.
This discrepancy underscores a broader issue: the need for Europe to adopt a growth-first mindset to attract and retain high-potential startups. Kanji believes Europe is still in its early days as a tech ecosystem but is making strides. While the region produces unicorns, the challenge lies in scaling these into $100 billion or $500 billion giants. He suggested this requires fostering a more ambitious investment culture and addressing structural issues in capital markets.
Fintech, Cybersecurity, and Infrastructure: Key Trends
Though Hoxton hasn’t invested heavily in consumer fintech, Kanji expressed admiration for companies like Revolut and Monzo. He acknowledged a missed opportunity with Monzo in its early days but noted Hoxton’s strength lies in fintech infrastructure. One of their portfolio companies, Vitesse, exemplifies this focus. Vitesse simplifies financial operations for insurance firms, enabling efficient fund transfers while maintaining control—a critical innovation in the insurance industry.
On cybersecurity, Kanji commented on Darktrace’s privatization, viewing it as undervalued in the UK public markets. He suggested the company could achieve a higher valuation in the U.S., reflecting the difference in market attitudes towards growth and profitability. He also highlighted the strategic appointment of Darktrace’s CEO, Poppy Gustafsson, as the UK’s Investment Minister, signaling the country’s intent to improve its investment climate.
The Path Forward for European Startups
Kanji concluded by reflecting on the evolution of Europe’s tech ecosystem. While optimistic about the region’s potential, he stressed the importance of building world-class companies capable of competing globally. The key, he argued, lies in fostering a supportive investment environment that prioritizes long-term growth over short-term profitability, paving the way for more transformative success stories.
It’s a candid and thoughtful exploration of the venture capital landscape. You can catch other conversations just like this one on our website.
 

How to Differentiate as a Fintech Startup | Jump Capital | FF Virtual Arena #346

These areas of fintech could be big in the next few years. In a great conversation on the FF Virtual Arena, Tarun Gupta of Jump Capital shared his journey from investment banking to fintech investment, and let us know how compliance can become a strategic advantage.
There’s a huge amount of funding still going into the fintech sector, which is growing all the time. This list of the hottest 250 startups in Europe from Sifted, shows that there are still plenty of neobanks and fintechs doing the business. Now, a lot of funding is going into AI right now, but even within fintech, areas like wealth management are seeing a lot of investment.
That’s why it’s so important to hear from those on the funding and investment side. Catch more interviews just like this one over on our Virtual Arena page.
Watch the full interview to find out more about:
Compliance as a competitive differentiator.
Jump Capital’s investment philosophy.
The emerging threats around payment fraud and what’s needed to prevent it.
From Investment Banking to Fintech Investment
Of course, whenever we do a profile like this, we do like to get a good look up inside their career. After giving us the lowdown, Gupta provided valuable insights tailored for fintech professionals, bankers, and enthusiasts keen on the industry’s evolution. Gupta began his career in investment banking, working on mergers and acquisitions, where he gained deep exposure to deal processes. From there he transitioned to corporate development at Scientific Games, driving growth through multiple acquisitions. But it was his interest in supporting early-stage companies through their growth trajectories that led him to Jump Capital.
Here, he specializes in fintech investments, leveraging his extensive experience to identify and back transformative startups.
Jump Capital’s Investment Philosophy
Founded 12 years ago, Jump Capital focuses on early-stage investments (seed to Series A) across three main verticals: enterprise software, IT infrastructure, and fintech. Gupta dedicates his time exclusively to fintech, seeking out innovative solutions that address pressing “hair-on-fire” problems exacerbated by macro trends like regulatory changes or shifting consumer behaviors.
As for what they’re looking for, the firm looks at two main things.
Identifying software solutions that offer measurable ROI to address significant business challenges.
Backing founders with unique insights and resilience, traits essential for navigating the unpredictable startup landscape.
Fintech Compliance: From Cost Center to Competitive Advantage
One of the big talking points in financial services is always compliance. But Gupta discusses a paradigm shift when it comes to how compliance is perceived in the industry. Traditionally viewed as a back-office cost, compliance can now be seen as a differentiator, particularly amid increasing regulatory scrutiny. He explained how robust compliance frameworks can drive sustainable growth and position firms competitively. Gupta noted that many compliance processes remain manual and outdated, presenting a ripe opportunity for innovative software to streamline and enhance these functions.
Payment Fraud: Emerging Threats and Innovations
There’s also a lot of talk about payment fraud, where Gupta sheds light on two pressing areas: chargeback disputes and push payment scams. He noted the growing prevalence of “friendly fraud,” particularly among younger consumers, and the need for banks to adopt more sophisticated tools for dispute resolution. Gupta highlighted the regulatory developments in the UK that mandate banks to reimburse victims of push payment fraud, a trend he anticipates will influence the US market.
He pointed out the delicate balance fintechs must strike: introducing enough friction to deter fraud without disrupting user experiences. Innovative solutions, such as systems that pause high-risk transactions for verification, are paving the way for more secure and user-friendly financial ecosystems.
Gupta’s insights underscore Jump Capital’s commitment to identifying and nurturing fintech solutions that address critical industry challenges. It’s a great insight into one of the companies driving the industry forward.

This Bank Rewards You for Positive Financial Habits | Discovery Bank | FF Virtual Arena #345

This bank rewards you for positive financial habits. In the latest FF Virtual Arena, we’re joined by Discovery Bank CEO Hylton Kallner to discuss the bank’s rapid growth, innovative approach, and the future of digital banking in South Africa.
Discovery Bank are seeing a startling rise to prominence through their shared-value model, which rewards customers for positive financial behaviour, and have been branchless from day one.
Watch the interview to hear more about this fascinating approach and…
Their latest customer milestone, two years ahead of schedule.
Why they’re the World’s First Behavioural Bank.
What their AI-powered co-pilot looks like.
Ahead of Schedule
Speaking to Ali Paterson, Hylton Kallner, CEO of Discovery Bank, was happy to talk about recently celebrating the milestone of reaching one million customers—an achievement realized two years ahead of schedule. They’ve been making waves in an emerging market and it’s impressive to see.
South Africa’s banking system, Kallner explains, was already robust and well-regulated before Discovery Bank entered the market. Unlike some regions where fintechs emerged to address systemic failures, South Africa’s banking sector was stable and mature. However, their own research revealed a clear demand for digital banking, with nine out of ten South Africans expressing a preference for online solutions. Despite widespread branch infrastructure, the rise of smartphone penetration—even in rural areas—created a fertile ground for a fully digital banking experience.
Discovery Bank seized this opportunity by launching a branchless, full-service digital bank, eliminating the traditional constraints of physical infrastructure. This approach not only appealed to customers looking for convenience but also enabled the bank to focus entirely on user-centered technology and design.
Building a Bank from Scratch
Like a lot of neobanks, one of Discovery Bank’s key advantages was its lack of legacy systems, which allowed it to build its technology stack from the ground up. Kallner described this as both a challenge and a luxury. The bank uses an SAP platform for industrial-strength back-end operations while designing bespoke front-end systems to create seamless customer experiences. Features like instant account opening with full compliance checks reflect this focus on simplicity and efficiency.
In addition to its digital offerings, Discovery Bank introduced a hybrid service model that combines advanced technology with highly qualified human support, including private banking services. This dual approach provides the flexibility of digital banking alongside personalized assistance, setting it apart from many fintech challengers.
The World’s First Behavioral Bank
Discovery Bank’s most distinctive feature is its “behavioral banking” model, which rewards customers for healthy financial habits. The bank tracks five key metrics, such as spending less than you earn and maintaining sufficient retirement savings. Unlike traditional credit scoring, this approach is income-agnostic, recognizing that financial behavior, not income level, determines risk.
By incentivizing positive behaviors, Discovery Bank aligns its goals with those of its customers. For example, clients who manage their finances responsibly benefit from better interest rates, discounts on travel, and Discovery Miles—a rewards currency that can be used for shopping or flights. This shared-value model, inspired by Discovery Group’s broader focus on wellness, fosters a mutually beneficial relationship between the bank and its customers.
Gamification and Engagement
Core to Discovery Bank’s strategy is gamification. Customers can set personalized goals related to spending, health, and even driving habits, earning rewards for meeting these objectives. Weekly challenges and a game-like reward system have led to high levels of engagement, with some customers maintaining streaks for nearly a decade.
Kallner noted that this gamified approach not only incentivizes good behavior but also deepens customer loyalty, creating an ecosystem where financial and personal well-being are interconnected.
AI: Enhancing Service Behind the Scenes
Of course, we had to find out what role AI is playing in their banking strategy too and Kallner highlighted the transformative role of AI in their bank, particularly in operations. Discovery Bank has implemented AI “co-pilots” in its call centers, equipping bankers with instant access to product knowledge and solutions. This technology has significantly reduced training time, improved first-call resolution rates, and enhanced customer satisfaction.
For customers, this means faster, more accurate service, while bankers can focus on empathy and value-added advice rather than routine queries. Kallner pointed out that AI democratizes private-banking-level service, making it accessible to a wider audience.
Scaling for the Future
Looking ahead, Discovery Bank sees significant potential for growth, both within South Africa and across the continent. Kallner emphasized the scalability of the bank’s digital-first platform, noting its ability to expand without adding substantial human resources. However, regulatory challenges and compliance requirements will play a key role in determining the pace and extent of cross-border expansion.
Kallner also hinted at the transformative potential of cloud-based platforms, which eliminate the need for physical infrastructure in new markets. While he refrained from committing to specific growth targets, he expressed confidence in the platform’s capacity to scale significantly.
It’s an impressive journey that reflects a bold vision for the future of banking, and one that could very easily be replicated around the world.
We hope you enjoy this insight into this particular challenger and be sure to check out our other interviews with fintech leaders on our website.