The Architecture of the Modern Fintech Ecosystem

A thriving digital money ecosystem is not a single platform but a complex web of interconnected services. At its core are the digital wallets and payment gateways that act as the interface for the consumer. Supporting these are the “back-end” services: blockchain networks for settlement, AI-driven credit scoring engines, and cloud-based ledger systems. The success of digital money ecosystems secure fintech depends on the seamless interoperability of these components. Through the use of standardized APIs, a consumer can use a digital wallet from one provider to buy insurance from another, with the payment settled instantly on a blockchain. This modularity allows for a level of financial technology innovation that was previously impossible, as specialized startups can build high-value services on top of the existing infrastructure.

Blockchain Finance and the Future of Programmable Money

The most disruptive force in the modern financial world is the rise of blockchain finance. By providing a transparent, immutable record of every transaction, blockchain eliminates the need for a central clearinghouse to establish trust. This allows for the creation of “programmable money” assets that can be programmed to behave in specific ways using smart contracts. For example, a digital money ecosystems secure fintech platform could facilitate a real estate transaction where the funds are only released to the seller once the digital title is transferred to the buyer, with no need for an escrow agent. This automation reduces costs, eliminates the risk of human error, and accelerates the movement of capital across borders, providing a more efficient foundation for the global economy.

Securing the Vault: Digital Wallets Security and Identity

As money becomes purely digital, the “wallet” has transitioned from a physical object to a cryptographic key. This shift makes digital wallets security the primary frontline in the battle against financial crime. Modern fintech platforms utilize a multi-layered approach to security, combining biometric authentication (such as facial recognition or fingerprint scanning) with multi-factor authentication and hardware-level encryption. Furthermore, the rise of decentralized identity (DID) systems allows consumers to prove who they are without sharing sensitive personal data, such as a social security number, with every merchant they visit. This “privacy-preserving” identity is a cornerstone of digital money ecosystems secure fintech, ensuring that the growth of digital finance does not come at the cost of personal privacy or security.

Navigating the Regulatory Landscape and Crypto Regulation

For digital finance to achieve mainstream adoption, it must operate within a framework of clear and consistent regulation. The tension between the borderless nature of digital money and the national boundaries of law is the primary challenge facing the industry today. Regulators are increasingly focused on “Know Your Customer” (KYC) and “Anti-Money Laundering” (AML) requirements, ensuring that digital money ecosystems secure fintech cannot be used for illicit activities. Furthermore, the rise of stablecoins and Central Bank Digital Currencies (CBDCs) has prompted a global debate on crypto regulation and the role of the state in the future of money. A successful regulatory framework must be flexible enough to allow for innovation while being robust enough to protect against systemic risks and market manipulation.

Financial Technology Innovation and the Goal of Financial Inclusion

One of the most powerful arguments for the expansion of digital money ecosystems secure fintech is the potential for global financial inclusion. According to the World Bank, there are still over 1.4 billion adults worldwide who are “unbanked” lacking access to basic financial services. Traditional banking models, with their high fees and physical branch requirements, are often unable to serve these populations. Digital finance, which requires only a basic smartphone and internet connection, can bridge this gap. By offering low-cost digital payments, micro-loans, and mobile-based savings accounts, fintech companies are empowering millions of people in developing nations to participate in the global economy for the first time. This social impact is a critical driver of the long-term growth and legitimacy of the fintech sector.

The Role of AI in Fraud Prevention and Personalized Finance

Artificial Intelligence is the silent engine that powers the modern fintech experience. In a digital money ecosystems secure fintech environment, AI models analyze millions of transactions in real-time to identify patterns indicative of fraud. If a transaction deviates from a user’s typical spending habits for example, a large purchase made in a different country the system can instantly block it and notify the user. Beyond security, AI is also driving the “personalization” of finance. By analyzing a user’s income, spending, and goals, AI-driven financial advisors (often called “robo-advisors”) can provide tailored investment advice and automated budgeting tools that help individuals build long-term wealth. This transition from reactive banking to proactive financial health management is the ultimate goal of fintech innovation.

The Future of Payments: From Contactless to Invisible

Looking ahead, we are moving toward a world of “invisible payments.” In this future, the act of “paying” is integrated so seamlessly into our daily lives that we barely notice it. Imagine walking into a store, picking up an item, and simply walking out the transaction is automatically settled between your digital wallet and the store’s ledger via ultra-wideband (UWB) sensors or computer vision. This is the logical conclusion of the digital money ecosystems secure fintech journey. By removing the friction of payment, we allow for a more efficient and pleasant commercial experience. However, this future also requires a higher level of trust, making the security and transparency of the underlying blockchain and AI systems more important than ever.

Sustainable Fintech and the Green Digital Economy

Finally, the future of digital finance must be a sustainable one. The energy consumption of some early blockchain networks has raised significant environmental concerns. In response, the industry is moving toward more energy-efficient consensus mechanisms, such as “Proof of Stake,” and exploring the use of renewable energy to power data centers. Sustainable digital money ecosystems secure fintech are those that recognize that long-term economic growth is impossible without environmental stewardship. By leveraging digital efficiency to reduce the need for physical branches and paper-based processes, the fintech sector has the potential to be a major contributor to the global green economy, providing a blueprint for a more responsible and equitable financial future.

Key Takeaways:

1. Digital money ecosystems are shifting the financial paradigm from centralized, manual processes to decentralized, automated systems powered by blockchain and smart contracts.
2. Security in the digital age is defined by multi-layered biometric authentication and decentralized identity, ensuring that consumer data is protected without sacrificing convenience.
3. Financial inclusion and personalized, AI-driven wealth management are the primary social and economic drivers of the global fintech revolution, bringing millions into the formal economy.

The Architectural Shift: From Monoliths to Microservices

The core of the cloud-native revolution lies in the move from monolithic architectures to microservices. In a traditional banking application, every function from checking a balance to applying for a loan is part of one enormous, tightly coupled program. This means that even a minor update to a single feature requires the entire system to be tested and redeployed, a process that can take months. Cloud native platforms digital banking solve this by breaking the application into hundreds of small, independent services that communicate via APIs. This modularity is the engine of digital banking transformation. It allows a bank to update its currency exchange service in the morning and its mortgage application interface in the afternoon, without any risk to the core ledger. This “granular” approach to development ensures that the bank is always evolving, responding to market changes and customer feedback in real-time.

Accelerating Fintech Innovation and the Agile Mindset

The primary challenge for established banks has been the rise of nimble fintech startups that can launch a new product in a fraction of the time. By leveraging cloud native platforms digital banking, traditional institutions can finally adopt the agile mindset required to compete. The cloud provides a flexible environment where developers can use containerization specifically tools like Kubernetes to package applications and ensure they run consistently across any infrastructure. Combined with automated CI/CD pipelines, this allows for a “fail fast, learn faster” approach to fintech innovation. Banks can now pilot a new AI-driven savings tool with a small group of users, gather data, and refine the product daily. This speed-to-market is the difference between leading the industry and falling into irrelevance in a digital-first economy.

The Power of Open Banking APIs and Ecosystem Integration

We are moving away from an era of “closed-door” banking toward a collaborative “platform” economy. Cloud native platforms digital banking are the essential infrastructure for open banking APIs, which allow banks to securely share financial data with third-party providers. This shift transforms a bank from a simple storage vault for money into a central hub of a vast financial ecosystem. Through these APIs, a bank’s customers can access a world of integrated services from automated tax preparation to personalized insurance products all within their primary banking app. This connectivity not only provides more value to the consumer but also creates new revenue streams for the bank, as they become the trusted gateway to a broader world of digital finance.

Securing the Future on Secure Cloud Platforms

A common concern in the early stages of the cloud transition was the perceived risk of moving sensitive financial data away from the physical control of the bank. However, the reality is that major secure cloud platforms now offer a level of security that is far superior to what most individual banks can maintain on their own. These providers invest billions in specialized security personnel and advanced threat detection systems that monitor for vulnerabilities 24/7. Cloud native platforms digital banking utilize these tools to implement “Zero Trust” architectures and immutable infrastructure. In an immutable model, servers are never patched while running; instead, a new, secure version is deployed to replace the old one, effectively eliminating the risk of configuration errors or persistent malware. This approach ensures that the bank’s digital environment is always in its most secure possible state.

Real Time Payments and the Demand for Instant Satisfaction

In a world where we can order a meal or book a flight in seconds, the idea of a bank transfer taking three business days is an anachronism. Cloud native platforms digital banking are the key to enabling real time payments on a global scale. These platforms provide the massive computational power and ultra-low latency required to authorize, verify, and settle transactions in the blink of an eye. This is not just a benefit for consumers sending money to friends; it is a critical requirement for businesses that need to manage their cash flow in a high-speed global market. By providing instant settlement, banks can offer a superior service that meets the demands of modern commerce and reduces the risk associated with delayed payments.

Navigating Regulatory Compliance in Cloud Computing Banking

The move to the cloud does not exempt banks from the strict regulatory requirements that govern the financial sector. Issues of data sovereignty ensuring that customer data is stored within specific national borders and rigorous audit trails remain paramount. Cloud native platforms digital banking address these challenges through sophisticated governance tools that are built into the cloud environment. Banks can use “Policy as Code” to automatically ensure that every new service or data storage bucket meets the required legal and security standards before it ever goes live. This automated compliance reduces the risk of human error and allows the bank to navigate the complex global regulatory landscape with confidence, ensuring that cloud computing banking is as safe and compliant as it is efficient.

The Rise of AI and Personalized Financial Experiences

Beyond the technical benefits of speed and scale, cloud native platforms digital banking provide the ideal foundation for the integration of Artificial Intelligence. With vast amounts of data stored in accessible cloud environments, banks can use machine learning to provide a hyper-personalized experience for every customer. Imagine a banking app that doesn’t just show your balance, but proactively warns you if you’re on track to overspend or suggests a specific investment opportunity based on your financial goals and risk tolerance. This “predictive banking” transforms the relationship between the institution and the individual, moving from a transactional service to a proactive financial partner. This level of personalization is the ultimate goal of digital transformation, creating a loyal customer base through superior service and genuine value.

Building the Bank of 2030 and Beyond

The transition to cloud-native architecture is a journey, not a destination. As technology continues to evolve, the most successful banks will be those that view their digital platform as a living, breathing entity that must be constantly nurtured and improved. This requires a commitment to continuous learning and a culture that values innovation as much as it values stability. By embracing cloud native platforms digital banking, financial institutions are building a foundation that is flexible enough to incorporate future breakthroughs in blockchain, quantum computing, and beyond. In the end, the banks that survive and thrive will be those that recognize that their true business is not just managing money, but managing the digital experiences and relationships that define the modern world.

Key Takeaways:

1. Moving to cloud-native microservices allows banks to innovate at the speed of tech startups, deploying new services in days rather than months.
2. Secure cloud platforms offer advanced security features like immutable infrastructure, providing a safer environment for financial data than traditional on-premise systems.
3. Open banking APIs and real-time payment capabilities are essential for established banks to remain relevant in a connected, instant-access global economy.

The concept of embedded finance itself is not entirely new. Airlines have long offered branded credit cards; retailers routinely provide point-of-sale lending through buy-now-pay-later platforms. However, the scale, speed, and sophistication of embedded finance today is qualitatively different, powered by technological advances that telecom networks are uniquely positioned to exploit. The infrastructure that enables billions of real-time communications can now facilitate billions of real-time transactions, transforming how financial services reach customers.

At its core, telecom-enabled embedded financial services represent a marriage of connectivity and financial innovation. Telecom operators bring to this partnership a substantial foundation: direct relationships with hundreds of millions of customers, extensive data on user behavior and creditworthiness, and networks capable of processing vast transaction volumes with minimal latency. When combined with fintech expertise and regulatory compliance frameworks, this foundation becomes the bedrock for a new generation of financial experiences.

The Technical Architecture Enabling Embedded Finance

Modern embedded finance depends fundamentally on application programming interfaces, or APIs. These technical interfaces allow separate software systems to communicate seamlessly, enabling financial products from one provider to operate within the platform of another. In the context of telecom networks, APIs serve as the connective tissue binding financial services to telecom ecosystems.

The shift toward open APIs in the financial services industry has been dramatic. Leading financial institutions now expose core banking capabilities through standardized APIs, allowing non-financial companies to offer accounts, lending, and payments without building these services from scratch. Telecom operators have recognized the strategic opportunity this represents. By integrating these financial APIs into their billing systems, customer apps, and digital platforms, telecom providers can offer their customers financial services as seamlessly as they offer voice, messaging, or data connectivity.

Real-time connectivity represents the second pillar of embedded finance architecture. Traditional banking infrastructure was designed for batch processing—daily settlement cycles, overnight verification procedures, account updates occurring on defined schedules. Telecom networks, by contrast, operate on millisecond timescales. Text messages deliver instantly. Call connections establish in fractions of a second. When applied to financial transactions, this real-time capability eliminates traditional delays that have long characterized banking relationships.

Consider the customer experience implications. A consumer using a traditional bank to obtain a personal loan typically waits several days for approval, during which their credit is evaluated, identity is verified, and documentation is compiled. In a telecom-enabled embedded finance environment, this entire process can occur in minutes or seconds. The telecom operator’s network already knows the customer’s identity, has verified their phone number, possesses months or years of usage patterns and payment history, and maintains real-time connection to their account status. Automating credit decisions based on this pre-existing information transforms what was once a friction-filled process into a seamless user interaction.

Automation as the Engine of Embedded Finance

Automation technology drives the practical realization of embedded finance through telecom networks. Where APIs provide the technical connectivity and real-time networks provide the speed, automation ensures that financial processes operate without human intervention, at scale, across millions of simultaneous transactions.

The automation of financial processes in telecom environments extends across the entire customer journey. When a customer visits a telecom operator’s mobile app to purchase a new smartphone, automated systems can instantly assess their creditworthiness, offer a financing option at the moment of purchase, process loan approval, and establish ongoing payment collection through their existing telecom bill. This entire sequence, which might have required multiple steps, multiple provider interactions, and manual verification in a traditional environment, now occurs in the background of a single transaction.

Machine learning algorithms form the intelligence layer of this automation. Rather than applying fixed rules to determine credit eligibility, these systems analyze patterns in customer data to predict creditworthiness with increasing accuracy. A customer’s pattern of timely bill payments, their tenure as a telecom subscriber, their regular usage patterns, and even their interaction patterns with the mobile app all contribute to an algorithmic assessment of credit risk. This approach has proven remarkably effective: telecom-enabled credit scoring systems utilizing alternative data sources show approval rates of 90% or higher while maintaining manageable default rates.

Automated transaction verification represents another critical automation capability. Fraud prevention in embedded finance environments demands real-time decision-making. When a customer initiates a financial transaction, automated systems must determine within milliseconds whether the transaction is legitimate or fraudulent. Telecom networks, which process billions of transactions monthly, have developed sophisticated automation systems capable of this analysis. These systems examine transaction patterns, geographic consistency, device information, and behavioral signatures to make instantaneous fraud determinations.

Transforming Customer Journey Through Integration

The true power of embedded finance emerges through the transformation of customer journeys. In traditional scenarios, customers seeking financial services encounter friction at multiple stages: they must leave their current platform, authenticate themselves to a new provider, navigate unfamiliar systems, and manage separate accounts and credentials. This friction creates abandonment, frustration, and reduced adoption rates.

When financial services are embedded within telecom platforms, this friction dissolves. A customer evaluating a smartphone upgrade, purchasing additional mobile data, or subscribing to premium services can simultaneously access relevant financial products. A student considering a higher data plan can instantly access education-focused lending. A family reviewing broadband packages might simultaneously qualify for utility financing. These financial products appear in the customer’s existing digital environment, presented at moments when their relevance is highest and their motivation to purchase is strongest.

This integration also addresses a persistent challenge in financial inclusion. Hundreds of millions of people globally remain unbanked or underbanked, often not due to poverty but due to barriers in the traditional banking system: lack of documentation, no credit history, insufficient account minimums, or geographic distance from banking services. Telecom networks reach into communities that banks do not, offering accessibility that transcends traditional banking infrastructure. When financial services are embedded within these networks, the barriers to financial inclusion drop dramatically.

The data suggests this potential is substantial. Industry projections indicate that integrated telecom-fintech ecosystems could bring 400 million unbanked individuals into formal finance by 2030. This represents not merely a commercial opportunity but a transformative force for global economic development and social equity.

Business Model Innovation Through Embedded Finance

For telecom operators facing revenue pressures and intense competition, embedded finance represents a significant business opportunity. Traditional telecom services—voice, messaging, data connectivity—have become commoditized, with customers increasingly choosing providers based on price and network coverage. Embedded finance allows operators to differentiate their offerings, create new revenue streams, and deepen customer relationships.

The economics of this model are compelling. When a telecom operator facilitates lending through embedded finance, they earn a share of the interest or fees charged by the financial provider. Similarly, offering embedded investment services, insurance products, or payment services creates additional revenue streams without requiring the operator to become a full-service financial institution. This “platform economics” approach allows telecom operators to capture value across a broader range of customer activities while partnering with specialized financial institutions that provide the underlying services.

Revenue diversification through embedded finance also creates resilience. As individual service lines face pricing pressure, the ability to offer complementary products provides stability. A customer considering switching providers due to price competition might be retained through integrated financial services that have become valuable and convenient. The total value of the customer relationship expands, justifying premium pricing or customer retention efforts.

Beyond immediate revenue, embedded finance builds network effects that strengthen competitive positioning. As more customers utilize embedded financial services through a particular telecom operator, that operator’s data advantages grow. Larger datasets enable more sophisticated machine learning models, which enable better credit decisions, more accurate fraud detection, and more personalized product recommendations. These improvements, in turn, increase customer satisfaction and engagement, creating a virtuous cycle.

Real-World Implementation and Market Emergence

The movement toward telecom-enabled embedded finance is not theoretical but increasingly practical. Leading telecom operators globally are already deploying embedded financial services. These implementations vary in scope and sophistication, reflecting different regulatory environments, customer bases, and strategic priorities.

In emerging markets, where traditional banking infrastructure is less developed and mobile phone penetration is exceptionally high, telecom-enabled embedded finance is advancing rapidly. Operators in these regions have combined core financial services with mobile connectivity, creating digital financial ecosystems that leapfrog traditional banking entirely. These implementations have reached hundreds of millions of customers, processing billions in transactions annually.

In developed markets, the movement is gaining momentum but proceeding more cautiously, reflecting stronger regulatory frameworks and established banking infrastructure. Here, embedded finance is being positioned as a complementary service that coexists with traditional banking rather than replacing it entirely. Telecom operators are partnering with banks and fintech companies rather than attempting to build all financial capabilities internally.

The technology supporting these implementations has matured significantly. Open banking APIs have become industry standard, creating a competitive market for financial infrastructure providers. Cloud computing platforms provide the scalability necessary for global deployment. Cybersecurity frameworks and regulatory compliance tools have reached sophistication levels adequate for protecting sensitive financial data and meeting stringent regulatory requirements.

Implications and Future Trajectory

The acceleration of embedded finance through telecom networks carries profound implications for financial services, telecommunications, and customers themselves. The traditional boundaries between financial and telecom services are eroding, creating new market dynamics and business opportunities.

For incumbent financial institutions, embedded finance represents both opportunity and threat. Partnerships with telecom operators provide access to new customer segments and new distribution channels. However, if traditional banks do not develop embedded finance capabilities, they risk seeing relationships migrate to telecom operators who offer more convenient, integrated experiences. This dynamic is already evident in markets where telecom-fintech partnerships are advancing most aggressively.

For fintech companies, embedded finance through telecom networks offers a path to reach scale rapidly. Rather than building their own customer acquisition channels, fintech companies can integrate their technology with telecom infrastructure, accessing established customer bases and trusted relationships. This partnership model has proven economically superior to direct customer acquisition for many fintech services.

The customer experience implications are perhaps most significant. As embedded finance becomes standard, customer expectations around financial service accessibility will shift. Convenience will be expected as baseline rather than differentiation. Security will be assumed rather than highlighted. The provision of financial services will become an expected component of any digital platform, not a separate activity requiring deliberate navigation to external providers.

The regulatory landscape surrounding embedded finance continues to evolve. Financial regulators in major markets are developing frameworks specifically addressing embedded finance, recognizing both the opportunities and risks this model presents. Key regulatory concerns include consumer protection, data privacy, fair lending practices, and systemic financial stability. As these frameworks mature, they will shape how rapidly and extensively embedded finance can be deployed through telecom networks.

The trajectory is clear: embedded finance is moving from innovation to standard practice. Telecom networks, with their unique combination of customer access, technological infrastructure, and real-time capabilities, are accelerating this transition. The financial services industry will continue to transform in response, creating new business models, new partnerships, and fundamentally new ways for customers to access financial products and services. Organizations that recognize and adapt to this shift will thrive; those that ignore it will find themselves increasingly marginalized in a fundamentally changed competitive landscape.

The partnership between Absa and AWS initially began in 2015. The bank has now made the decision to broaden the extent of its partnership. The move cemented Absa’s place as a cloud-native and digitally driven bank, pledged to providing differentiated and resilient banking experience.

Under the deal, AWS will be Absa’s go-to cloud provider. The setup will help amplify technological agility, increase responsiveness to shifting customer expectations, and fuel a more intuitive digital banking experience. By tapping into the depth and breadth of AWS services, Absa plans to unlock innovation using emerging technology trends, expedite its overall cloud journey, and provide more secure and innovative solutions.

Johnson Idesoh, Group Chief Information and Technology Officer at Absa, explained, “This partnership reflects our ambition to be a digitally powered financial institution that delivers exceptional value to our customers. We are excited to leverage AWS’ industry-leading banking and finance expertise for our digital transformation. Moving additional services to AWS will modernise our infrastructure, enable us to innovate faster, strengthen our resilience, enhance security, and offer more personalised, intuitive customer experiences.”

The partnership extends beyond cloud migration technology. Absa and AWS have pledged to drive inclusive growth in Africa through digital skills training and community programs. One of the good examples is their partnership with the Women in Tech program, which Absa has been sponsoring for a number of years. Now, in its third year of sponsorship, the program will now grow to train 150 unemployed South African, Kenyan, Botswana, Ugandan, and Ghanaian women. Participants will receive free AWS Cloud training, along with an Absa-sponsored certification exam, giving them pathways into technology careers.

“Our partnership with AWS goes beyond technology; it’s about driving continuous transformation. Together, we are investing in people, communities, and the future of inclusive digital economies across Africa. Choosing a cloud provider with a data centre on the continent is a deliberate decision to support investment in local communities. It’s also a step in our AI transformation journey as a financial services provider, by enabling smarter decision-making, hyper-personalised customer experiences, and greater operational efficiency—driving innovation while enhancing trust, speed, and scale,” added Idesoh.

“With a customer-obsessed mindset, we are committed to enabling SMEs, retail clients, and corporate partners by leveraging the benefits of scale and innovation ecosystems to meet their unique needs across Africa.” He concluded. 

The partnership will provide banks with access to its AI-powered solution to protect both customers and the organisation from the increased financial crime during the COVID-19 pandemic.

It enables Temenos’ FCM SaaS solution based on Microsoft’s Azure cloud platform to be deployed within weeks.

Temenos chief operating officer Jean-Michel Hilsenkopf said: “As a strategic global banking software partner of Microsoft, we are pleased to join efforts to deliver Temenos Financial Crime Mitigation as SaaS on Microsoft Azure’s resilient, secure and proven cloud platform.

“We are committed to providing robust and up-to-date sanction screening, AML, KYC and fraud management protection combined with powerful AI-driven transaction monitoring and sanction screening to help banks worldwide.”

According to the international financial regulators and organisations including the European Central Bank, the Covid-19 pandemic may increase financial crime and other misconduct due to market disruptions, reduced staff, and other factors, as has been the case during past global crises.

Temenos said that its FCM SaaS solution covers watch-list screening, anti-money laundering, fraud prevention, suspicious activity prevention, and KYC. The solution can be deployed as a standalone, or integrated to any banking or payments platform.

In addition, Temenos FCM provides enterprise level financial crime protection for a highly regulated and fast-changing environment, and allows banks’ operators to respond to alerts and collaborate with team members while working remotely.

Recently, the company introduced new Explainable AI (XAI) models to enable banks and credit unions to issue loans to small and medium enterprises (SMEs) whose cash flows have been disrupted due to COVID-19 (coronavirus) pandemic.

The XAI models are designed to allow banks to speed up several processes such as digital onboarding, conducting eligibility checks and loan application processing for SMEs and retail customers.

They have developed a first 5G experience around three use cases that customers can enjoy at two bank offices in the city of Alcobendas, near Madrid, the first banking offices connected by 5G technology in Europe.

This initiative will make it possible to advance in the application of new technologies in the financial sector, develop 5G solutions for the banking sector and support corporate customers in their transformation process helping them to adapt their financial products to meet new needs.

Telefónica, in collaboration with ZTE, has deployed in Alcobendas the most advanced 5G trial network to date. Thus, this city joins the Telefónica’s 5G Technology Cities initiative that also includes Talavera de la Reina, Segovia, Barcelona and Málaga.

Emilio Gayo, CEO of Telefónica Spain points out: “the initiative with Santander Spain is the result of the collaboration with our corporate customers to ensure that 5G technology is deployed in a way that fully meets their needs, prioritizing the development of the most demanded capacities. With initiatives like this we also ensure the early adoption of 5G and the positive impact on the Spanish industrial network”.

Rami Aboukhair, CEO of Santander Spain, said: “This agreement with Telefónica responds to Santander’s commitment to innovation and to accompanying our customers in the transformation process towards the new generation of 5G communications. The new technology will allow us to have a better connectivity and faster speed of response in transactions and to offer all our customers the best experience and the best possible solutions”.

The project comprises of three use cases:

4K videoconference between two bank offices that offers, through the 5G network, an ultra-high resolution image (4096×2160) and natural motion thanks to its 30 frames per second with zero delay.

5G storage, a low latency cloud storage solution provided by Telefónica and based on the Hitachi Content Platform Anywhere Edge solution embedded on Telefónica’s edge computing infrastructure.

Virtual visit to co-working spaces developed in collaboration with Idronia that use Virtual Reality, 360 video and Edge Computing technologies. This immersive reality service allows customers to remotely visit co-working spaces such as the Santander Work Cafe located at the Santander banking office in the center of Madrid.

The 5G network provided by ZTE includes the radio, the core network and the terminals. The technology employed is based on Stand Alone mode, the latest international standard, creating an end-to-end 5G network architecture that does not require LTE support. The 5G base stations connect to the core network using Telefónica’s transport network.

Solutions like these will bring new services to the financial sector such as the mobile office allowing banks to provide on a temporary basis the same services they offer in their traditional offices equipped with fixed communications. Mobile offices can be deployed at big events (sports, festivals, fairs…) or for emergencies. The technology will allow relying on a low-latency cloud to deploy critical services in offices without the need to change existing equipment, or having a global 5G backup system that preserves the same features and services that are available with the fixed network

Cross border banking is one area that has been relatively unaffected by FinTechs, but banks should not be complacent. FinTechs are snatching market share by delivering what corporate and SME clients want – greater transparency, lower costs, and improved clearing times.

FinTechs have learned a lot from the consumer finance market, too, and are beginning to apply the same tactics, evolving them to meet the needs of B2B customers. The consumer market is becoming more accepting and trusting of new entrants, not just in the financial industry, but also with disruptors in other incumbent dominated industries, such as energy. As consumers reap the benefits of great service at low cost, the expectations of services delivered to businesses also increases.

Click here to download the full WhitePaper.

An instant payment is a transfer in euros from an account within the SEPA zone, which is credited to the recipient’s account within a few seconds. This is only possible if the recipient’s bank cooperates, and the amount that can be transferred is currently limited to no more than EUR 15,000. Instant payments can be initiated at any time of day, 365 days a year. ABN AMRO also allows you to see whether the money has been received by the recipient, and at what time. This also applies for transfers between two ABN AMRO accounts. In that case, there is no maximum amount.
How it works

The client enters a transfer via Mobile Banking or Internet Banking. Before making the transfer, ABN AMRO checks automatically whether the money can be credited to the recipient’s account within a few seconds. This is shown in the payment summary. If the transfer cannot be completed within a few seconds, the summary will contain the message ‘within one working day’. For the client, making an instant payment is just like any other transfer; there is no need to submit a special request. There is no extra charge for instant payment transfers by personal customers; business clients pay the standard SEPA transfer fee.

Jarco de Swart
Senior Press Officer Retail & Private Banking
jarco.de.swart@nl.abnamro.com
+31 (0)20 628 2160

Application Programming Interfaces (APIs) have evolved over the past few years, going from internal integration tools to digital building blocks that connect organisations. Developers can use them to create valuable client experiences, innovations and new business models. Again and again, companies such as Apple, Spotify and Dutch railway operator NS show that providing strategically selected services to third parties can add a great deal of client value – for example, Google Maps uses the NS API to show departures in real time.

ABN AMRO’s goal is to give clients control of their finances and put them in a position to make the best decisions in their particular situation, by developing products and services that are simple, fast and personalised. Besides pursuing its own innovations, the bank will accelerate the process by working with creative external developers and business owners to explore the future of banking.

ABN AMRO’s Developer Portal provides everything that external developers need to use the bank’s APIs effectively and productively. To start, the site will provide a number of APIs for commercial clients and basic functionalities. More and more will be added as time goes by. The solutions that the bank provides are secure, and clients who use the building blocks can control whether they wish to share their data and with whom.
Exploring the future of banking

ABN AMRO is the first major bank in the Netherlands to provide access to a Developer Portal and specifically ask the outside world to become partners in its innovations. Besides providing APIs that allow commercial clients easy access to their checking accounts, the bank also offers use of building blocks for sending Tikkie payment requests and sending bulk payment orders. This is also part of ABN AMRO’s preparations for the European Payment Services Directive 2 (PSD2) laws, which – starting in 2018 – will allow regulated third parties to access the checking accounts of clients that have granted permission.

The API platform was subjected to extensive testing during the Beyond Banking Days, a 48-hour hackathon with developers from the bank, partners and fintechs/startups. Development has continued during the months since. The market introduction heralds a new phase in the exploration of the future of banking.

Jarco de Swart
Senior Press Officer Retail & Private Banking
jarco.de.swart@nl.abnamro.com
+31 (0)20 628 2160

The creation of MAQS will help meet the growing needs of investors seeking innovative solutions in an environment of uncertainty and polarising demand between low-cost management such as indexed products, and high value-added products that encompass risk management, such as factor management and customised solutions. Led by Denis Panel, this new investment group aims to offer leading ’quantamental‘ management, combining quantitative expertise with fundamental research capabilities, with risk management at the core of its investment philosophy.

This desire to more closely meet investors’ changing requirements is also reflected in the inclusion of environmental, social and governance (ESG) criteria in the development of investment solutions offered by MAQS.With more than EUR 110 billion of assets under management (at the end of September 2017), the new investment group has 130 employees in France, Belgium, the Netherlands, Italy, the UK and Hong Kong, and benefits from a broad client base, including both inst itutional and retail investors.

MAQS has four main areas of expertise: Multi-asset, led by Christophe Moulin; Quantitative and Index-based Management, led by Isabelle Bourcier; Structured Investments, led by Gilles David; and Solutions & Client advisory, led by Anton Wouters, which offers tailored solutions for pension funds and insurance companies.

MAQS is highly innovative and is characterised by cutting-edge technology and a proprietary research methodology, developed in close partnership with BNPP AM’s Quant Research roup.
Underpinning all these capabilities is active risk management, which is at the core of the
investment process, in order to meet the dual requirements of income and capital protection for
clients who are now paying particularly close attention to risk-adjusted returns.Within quantitative management, MAQS also benefits from a long-standing relationship with BNP Paribas’s Global Markets division, a partnership that will be strengthened within the new MAQS division.

Denis Panel, Head of MAQS at BNP Paribas Asset Management, comments:
“In a changing world, investors are seeking investment solutions that better address their
specific needs, whether greater protection against the risks of market volatility or strategies
that PRESS RELEASE meet regulatory constraints. Combining our capabilities into a single investment group will allow us to better meet investors’ needs by generating alpha and revenue, protecting capital, controlling risk and providing beta exposure. Our ‘quantamental’ approach combines the best of quantitative and fundamental techniques to offer our clients innovative investment solutions backed by robust risk management.”

PRESS CONTACTS
BNP Paribas Asset Management Quentin Smith
+44 20 7063 7106
quentin.smith@bnpparibas.com

Sandrine Romano
+33 1 58 97 74 49
sandrine.romano@bnpparibas.com

About BNP Paribas
BNP Paribas Asset Management is the investment management arm of BNP Paribas, one of the world’s major financial institutions. Managing and advising EUR 571 billion in assets as at 30 September 2017, BNP Paribas Asset Management offers a comprehensive range of active, passive and quantitative investment solutions covering a broad spectrum of asset classes and regions.

With close to 700 investment professionals and 600 client servicing specialists, BNP Paribas Asset Management serves individual, corporate and institutional investors in 73 countries around the world. Since 2002, BNP Paribas Asset Management has been a major player in sustainable and responsible investing. For more information, please visit bnpparibas-am.com