We’ve done a bit of research and internal discussion on the subject and decided to share some of the trends we found the most engrossing. Let’s recap:
“EMBEDDED FINANCE has been with us for several years now, but I still see a huge untapped potential for crafting new, creative and personalised services that will change the way both consumers and corporates see and manage finances,” says Konstantin, Managing Director at MultiPass.
From B2C services and eCommerce to B2B, we see it everywhere – sometimes without even realising. Customers and businesses are increasingly demanding faster and more flexible ways to transact directly from the platforms, apps and websites they use. (And hey, we offer that too – remember you can integrate our API into your own platform to manage your account, perform FX transactions, create mass or custom payment scenarios and much more.) Embedded finance technology allows a combination of services and encourages the emergence of innovative ideas. For example, the integration of Buy-Now-Pay-Later schemes straight into online store shopping carts is an interesting trend that is now growing in the eCommerce market.
“As Head of Operations at MultiPass, I see an increase in demand for MULTI-CURRENCY TRANSACTIONS and ONLINE FX among SMEs. With the ongoing growth of international trade, I am sure we can expect the emergence of new FX services for SMEs, for example hedging, which was the prerogative of large-scale enterprises in the past,” notes Diana.
While Covid has brought turbulence to the world’s economy, online merchants are among the rare businesses who have flourished. With the rise of in-home deliveries, global internet shopping jumped by 26% in 2020 according to eMarketer, and continued its rise last year. Naturally, higher demand for cross-border payments and FX is seen among SMEs, which has led to the appearance of quite a few new market players, also including traditional banks launching their digital-only brands.
“Although we are not involved in servicing the CRYPTO MARKET (hello, NFT traders), I am personally super excited to follow the latest developments in the field and see investments and operations in digital assets becoming a more mainstream movement in the financial sector,” says MultiPass Financial Controller Alex.
It’s hard to forget the NFT hype of 2021, isn’t it? Blockchain-based technologies are continuing to prove their value to the world. What was once only for innovation-hungry tech and investment enthusiasts is now being actively explored by traditional banks and financial institutions.
Ilda, Compliance Director at MultiPass, adds, “The volume of cross-border payments is increasing constantly at a rapid pace. The integration of AUTOMATION and AI in AML/KYC procedures will definitely help businesses to keep up with the fast tightening of banks’ risk appetites and stay compliant with regulatory requirements at all times.”
From customer onboarding to compliance and financial crime and fraud prevention, we predict more and more financial companies will be adopting automation this year. Integration of compliance automation and customer risk scorecards is becoming more widespread and will enable businesses to react to new regulatory requirements quicker as well as further reducing the risk of money laundering. Using AI for biometric identity verification in KYC procedures is becoming more common as well, helping mobile/online-only service providers to ensure smoother and safer onboarding.
Sure thing we had a lot more topics in mind and new #hypes to mention, but in business banking we are sticking to the “clear and simple” rule that comes to everything we do. So these four main trends are what we decided to call the most evident at the moment. The year ahead will show if there is something to surprise us or if the predictions from our expert team were accurate. In any event, we are always excited to see new discoveries emerging in the industry. Because if not for the challenging trends then what else would we love about being part of a #FinTech ecosystem, right?