At EBAday 2024 in Lisbon, Niamh Curran from Finextra moderated a lunchtime session titled ‘Rising Stars’. The panel included Luca Kotton, platform owner at Investec Bank; John Salter, chief customer officer at ClearBank; Jenny Winther, head of payment schemes at Handelsbanken; and Phoebe Zhou, head of emerging payments, GPS Europe at HSBC, as they explored the success of industry newcomers and current trends.
Kotton highlighted open banking as a significant trend driving innovation, with Zhou adding that open banking has been deeply integrated into payments. She emphasized the potential shift from open banking to open finance, suggesting that the UK government is considering expanding this concept beyond financial services to sectors like utilities and transportation, integrating it into everyday life.
Winther raised concerns about cross-border payments facing scrutiny due to fraud and security issues, indicating that fintech collaboration will be vital in addressing these challenges.
Discussing HSBC’s partnership with the SVB UK branch, Zhou mentioned the mutual benefits of the collaboration, which inspired innovations and mutual growth.
Salter offered insights from the perspective of a fledgling bank, noting how open APIs have transformed the payments landscape and underscoring the customer demand for certainty in their financial transactions. He remarked on the gamification of banking, where users increasingly expect mobile app accessibility, leading regulators to assess potential market winners and losers as saturation increases.
Winther remarked on the cooperative spirit prevalent in the Nordic banking culture, explaining how traditional banks and fintechs can complement each other’s strengths. She expressed a desire for deeper collaboration and understanding between the two sectors.
Kotton stressed the importance of modular architecture for building tech stacks, asserting that continuous integration, cloud-based solutions, and automation are essential for fostering innovation. He also highlighted the significance of keeping systems updated to adapt to emerging technologies, emphasizing an API-first design for seamless integration.
On the role of AI, Kotton noted its utility as a tool but cautioned against losing sight of core customer values. He advocated for empowering staff to enhance their skill sets and embrace innovation positively. Winther echoed this sentiment, highlighting the need for AI to be correctly trained. Salter added that AI will be essential in enhancing safety within risk frameworks.
Zhou encouraged leveraging learning opportunities provided by larger companies and collaborating with industry experts. Salter concurred, emphasizing that nurturing talent relies on a positive company culture and balancing it with profitability challenges: “If balanced well, creativity and innovation can flourish.”
When discussing the relationship between fintechs and banks, Salter acknowledged an uptick in collaboration, but noted that it often involves navigating complex dynamics. He stressed the necessity of mutual benefits based on commercial interests, as sustainable partnerships require equitable sharing of advantages.