Fasanara Fintech Weekly

AI Transforms Customer Service, Engines of Growth, Monzo Second Raise, 7 Payment Trends & Other News



Happy Tuesday!



At this blogpost:


  • How to drive AI at scale to transform the financial services customer experience

  • The Edge of Disruption - Finding engines of growth for tomorrow

  • Monzo raises second £60m funding top-up at reduced £1.2bn price tag

  • The platformification of finance: Conclusions from the Tearsheet Embedded Conference

  • 7 Major Payment Trends that Will Shake Up Banking in the Year Ahead.




How to drive AI at scale to transform the financial services customer experience



Financial services firms understand the importance of making customer interactions AI-enabled and are taking steps to achieve this goal. The use of AI in customer interactions has grown significantly in the past three years in the industry. While AI has not lived up to customers’ expectations, it offers a range of benefits for banks and insurers. Financial services firms have reduced their cost of operations by 13% and have increased the revenue per customer by 10% after deploying AI in customer-facing functions.


Although the level of organizational benefits from AI-enabled interactions is one of the highest for this industry compared to other sectors, financial services performs worst in terms of achieving scaled implementation of AI solutions. The top challenges standing in the way of achieving scale are: leadership and organizational resistance; difficulty in identifying the right use cases to scale; the long gestation periods for implementation, coupled with lack of data management; and lack of trust for high-priced interactions.


Read More




The Edge of Disruption - Finding engines of growth for tomorrow



A disruptive year –2020 is likely to be a tipping point in the adoption of digitalisation. We can see this in the way people are behaving as employees (working from home), as students (online education), as consumers (e-commerce), when seeking entertainment (virtual events, e-sports), and when needing medical advice (e-medicine). We also see this in business, especially with asset-heavy industries seeking efficiencies and disruptive new business models through artificial intelligence and automation.


This report examines four themes linked to technology and related infrastructure that are key to these shifts, and hence well-placed to drive long-term outperformance in an already growing technology sector – connectivity, automation, experiential, and digital health.

Read More



Monzo raises second £60m funding top-up at reduced £1.2bn price tag



Monzo has secured an additional £60m in funding, taking its total raised in 2020 to £125m, as it battles the effects of the coronavirus pandemic. The digital bank had previously closed a £65m top-up in June, valuing the firm at £1.2bn — down 40% from its £2bn valuation in 2019. This round was raised at the same lower valuation, a Monzo spokesperson confirmed.


Read More



The platformification of finance: Conclusions from the Tearsheet Embedded Conference



The acceleration of digital financial services spurred on by the coronavirus pandemic loomed behind the 2020 Tearsheet Embedded Conference, a virtual event which brought together industry practitioners, brands and platform providers. Participants explored the state of the industry shaped by the pandemic and beyond.


Embedded finance solutions allow brands to seamlessly plug into financial plumbing to enhance their capabilities and facilitate continued customer acquisition and retention. The concept encompasses two core components: the ability to integrate financial services with another, typically non-financial service (e.g. payments and banking services within a ride-hailing app or e-commerce platform); and the provision of financial services on a customer’s own terms — anytime and anywhere.


Read More




7 Major Payment Trends that Will Shake Up Banking in the Year Ahead



The role of payments as a core banking function, already eroding, is now under full assault. Between fintechs like Square, big tech wallets and the massive impact of COVID-19, the payment space is being upended as never before.


All is not gloom and doom, however. Incumbents still have significant advantages of scale and trust, particularly since the risk of fraud has jumped sharply in an increasingly digital payment environment. But the need to modernize legacy payments infrastructure has never been more important for traditional institutions.


Read More




Thank you for the time!