Ahead of Money20/20 in Amsterdam, Finextra spoke to Olugbenga ‘GB’ Agboola, CEO of Flutterwave, about Europe’s approach to supporting the fintech industry and the importance of digital trust in times of global unrest and uncertainty.
Flutterwave, an African payments technology unicorn, helps merchants accept online and point-of-sale payments through various methods. The company achieved a valuation of $3 billion following a $250 million funding round in February 2022, with plans to use part of the capital for growth through mergers and acquisitions.
At Money20/20, it was announced that Flutterwave has partnered with Token.io, an account-to-account (A2A) payment infrastructure provider, to introduce Pay By Bank transfer capabilities on its platform. A2A payments offer a fast and secure way to transfer funds directly between bank accounts, leveraging open banking technology to eliminate the need for registration or data entry, resulting in a seamless user experience with higher success rates.
During the conversation, Agboola emphasized the factors contributing to the EU’s thriving fintech ecosystem, including regulatory support, public and private funding, innovative entrepreneurs, and a talented workforce. He noted, “These elements ensure that consumer rights and data privacy are not sacrificed for the sake of fintech growth. The region’s GDPR serves as a model for data protection worldwide.”
Agboola sees opportunities for the industry to progress from open banking to open finance. He views PSD2 as a solid foundation but advocates for further initiatives and policies to establish common data-sharing practices within the EU, aiming to position the region as a leader in open finance guidelines.
However, Agboola acknowledges the complexities involved in digital banking strategy, stating that customer needs and regulatory compliance are critical considerations. He explained, “As a payment technology company, we recognize that financial service providers (FSPs) operate within the trust framework, balancing consumer needs with rights, fund safety, and data protection. Regulatory compliance is essential to this process, demonstrating an FSP’s commitment to adhering to necessary guidelines.”
He further added, “Prioritizing compliance and investing in robust security measures are vital. This approach should be complemented by third-party assessments and ongoing training for staff to keep them informed on the latest security protocols. Transparent communication with the public about FSPs’ efforts to protect customers also plays a crucial role in building trust.”