The NeoBankers Group

16/08/2023

🏦 Embrace the transformative shift in banking models, crafting ecosystems for unparalleled personalized experiences through the Network Effect.

💼 As Bill Gates aptly stated, 'Banking is necessary, Banks are not.'

🔄 Banks confront an imminent existential threat as rivals vie for position. While cognizant, most still cling to the status quo—merely furnishing banking products and services. Despite a digital channel influx, mere digitization falls short of innovation.

🔑 The Core:
⁃ To not just endure but thrive, Banks must redefine their role, expanding functions to maintain relevance in their customers' lives. Enter the era of : a bank adapting its offerings to customers' needs, facilitating deeply personalized experiences.

🔍 possess a unique advantage:

- A bedrock of trust with a loyal customer base
- Resounding brand recognition
- Immersed within consumers' daily lives

💡 Banks hold invaluable insights into consumer earnings, spending patterns, and preferences—an edge eluding consumer goods sellers offering banking services ( ).

🏁 Consider 🚘: a US-based fintech revolutionizing car acquisition through an online platform. A testament to customer-centricity, this ecosystem fuels hyper-relevance.

⚙️ Banking's rapid metamorphosis witnesses leading institutions shifting from banking-centric to customer-centric realms, underscored by:

- Surge in Service Aggregator demand
- GAFAA firms and Neobanks prioritizing experiential advantage
- Internet and eCommerce fueling change acceleration

🏛️ Crafting a marketplace entails three pivotal phases for banks such as Bank of America, Wells Fargo & others:

1️⃣ Define Marketplace Strategy ( , , )
⁃ Immerse in Types, Audience, and Offerings.

2️⃣ Design Customer-Centric Framework
⁃ Prioritize customers over , offering simplicity.

3️⃣ Choose eCommerce Platform & Capabilities
⁃ Platform Strategy
⁃ Platform Governance
⁃ Platform Innovation
⁃ Platform Operations
⁃ Data Analytics
⁃ Technology
⁃ Sales & Marketing
⁃ Banking Products
⁃ Corporate Functions
⁃ Business Operations

🔄 A Bank's evolution into a Living Bank hinges on a volume strategy, driven by the network effect. Change is imperative—it's already in motion.

14/06/2023

Core Banking Services For Banking Leaders 💡

With rising competition from fintech companies, established retail banks are turning to tech like open banking, chatbots, and customer analytics platforms to digitize their core infrastructure and revamp their services.

Retail banks are increasingly prioritizing digitizing their core services — as part of a broader effort to meet customers’ evolving needs and respond to growing competition from fintech players. From upgrading their existing infrastructure to offering seamless mobile journeys, more top banks see core banking transformation and customer experience modernization as key to maintaining a competitive edge against fintechs 🚀

CB Insights identified 101 core banking companies addressing 8 technology priorities for banking leaders : Banking-as-a-Service (BaaS), Card & Payment Solutions, Chatbot & Virtual Assistants, Cloud-Based Core Banking, Customer Analytics & Insights, Customer Experience Add-Ons, Digital Banking Transformation and Open Banking.

Key takeaways:

👨‍💻 Cloud-native & API-driven solutions: Cloud- and API-driven offerings allow banks to quickly upgrade their core infrastructure and introduce new products and services, resulting in reduced time-to-market and relatively low-risk implementations.

🙋‍♂️ Customer data: Artificial intelligence and machine learning help collect and analyze customers’ usage patterns and data to build comprehensive user profiles, allowing banks to offer more targeted, proactive, and customized services to users.

📱 Mobile excellence: From customer onboarding and servicing to branding, new mobile app solutions are helping banks keep customers engaged through low friction and intuitive banking experiences.

14/06/2023

Insight on how the world of is changing

Traditional payments methods still dominate the consumer payments landscape, survey from i.e cash, and cards. However, next-generation offerings are rapidly gaining shares such as:
🔸
🔸Account-to-account ( )
🔸Buy now, pay later ( ) are rapidly
🔸 with One
🔸Soon, machine-to-machine and payments.

👉 In , digital wallets like and is the leading payment type over and debit cards.

👉 In , cash is still queen followed by debit cards and credit cards.

👉 In North , debit cards take the crown followed by both cash and credit cards.

👉 In , cash also dominates followed by debit and credit cards.

This diversity of consumer preferences when it comes to payments is only beginning with (extremely popular in the ), A2A , and many other payment methods gaining strong momentum in very specific verticals and regions.

In order for merchants to connect with their consumers, accepting cash and is simply not enough anymore, especially in an innovative and complex region like APAC 😉

In-store, 69% of consumers still prefer to use credit cards as forms of payment. Every payment method has its perks, and consumers start to understand more and more the ones they would rather use:
🔸Methods that reduce Interest - Debit Cards, Cash, and Prepaid Cards
🔸Methods that reduce interest and offer convenience and control - A2A Payments & Bank Transfer.
🔸Methods that offer convenience and control - , , Check & .

Each one of those has a different appeal to different consumers. Delivering choice is more important than ever.

For small-tickets (

06/06/2023

Dear financial market participants,

Rules on the implementation of international sanctions have been adopted by the Bank of Lithuania. The said rules will come into force on September 1st, 2023.

In accordance with the rules, the internal control system for the implementation of international sanctions should be an integral part of financial market participant’s internal control system in order to continuously ensure the proper implementation of international sanctions.

What should you know?

🚩Financial market participants must carry out regular international sanctions risk assessment at least once a year and/or when significant changes in international sanctions’ risks occur. Please note, that such risk assessment may be carried out together with the institution's risk assessment or separately.
The risks of international sanctions must be assessed by separating them from the risks of , taking into account the types of risks inherent in international sanctions, the probability of their occurrence, etc.

🚩Financial market participants should appoint responsible employees who would organize the implementation of international sanctions inside of the institution;

🚩Financial market participants must ensure international sanctions implementation policies and relevant internal control procedures. The institution's international sanctions implementation policy can be set out in the institution's general risk management policy or in a separate document;

🚩In order to ensure the proper implementation of international sanctions, financial market participants must determine the measures applicable to ensure the implementation of international sanctions, which would allow to identify at least clients, parties to transactions, service providers, business partners, intermediaries, shareholders and managers of institutions subject to international sanctions, as well as whether the transactions carried out by the institution itself or its clients do not fall within the scope of restrictions and/or prohibitions established by international sanctions.

06/06/2023

Lietuvos bankas | Bank of Lithuania has revoked a license of a second largest (by payments turnover) in - Systems, and imposed a fine of 280,000. Earlier this year, the activities of this company were already heavily restricted.

This is a rare occasion (however, not the first one) where in addition to revocation of a , the of Lithuania imposed a significant fine.

The revocation of a license is a sanction typically imposed as a last resort. Nonetheless, the Bank of Lithuania has recently revoked a significant number of licenses of payments market participants. Even more market participants have voluntarily (in a sense) discontinued the provision of licensable services and requested their licenses to be revoked.

The main lesson to be learned by others?

▪️ The Bank of Lithuania may choose not to give a chance to remedy the breaches, and take action right away (this is reflected in their decision on restriction of activities earlier this year and the decision to revoke the license).

▪️ The should pay more attention to product risk assessments, and implementation of adequate measures.

17/05/2023

How do Payment Apps interact with Banks in India and China?

The diagram below shows a comparison between (Unified Interface) in India and NUCC (NetsUnion Corporation) in .

Both are nationwide efforts to streamline third-party payments, which means payment apps don’t need to handle the complexity of connecting to banks.

Some differences are:

🔹 UPI = payment markup language + standard for interoperable payments, while (NetsUnion Clearing Corporation) is a clearing system among . So UPI covers the whole workflow, but NUCC handles transaction clearing and settlements.

🔹 UPI builds a payments with payment , banks, and (National Payments Corporation of ). NUCC saves each payment app the effort of connecting to each separately.

🔹 UPI adopts a mobile-first design, each account is given a ( Payment Address), while NUCC doesn’t have such a setup.

—

14/05/2023

28/04/2023

BREAKING: It’s Friday …
the FDIC normally closes the banks on Fridays...

First Republic Bank Has Now FAILED, The U.S Government Is Putting The Bank In Receivership — Another Banking Collapse ‼️

Well, First Republic dropped another 50% today as hopes of rescue deal fade. Sources told CNBC that the most likely outcome for the troubled bank is for FDIC to take it into receivership.

The stock has fallen more than 90% this year as have lost confidence in the after two regional lenders failed in March.

Other banks are being asked by the for potential bids on First Republic if the bank was seized by seized by the regulator, sources told Faber. There is still hope for a solution that doesn’t include receivership, according to those sources.

First Republic told Faber on Friday that “we are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients.”

First Republic’s plunge has wiped out $22bn in value this year. It is now worth around half a billion dollars...

The Fed’s aggressive interest rate cycle has led to another victim.

’s poor risk-management caused heavy losses on its long-duration fixed income portfolio.

And this paired with $100 billion in deposit outflows in Q1 alone, caused shares to plunge after talks of a rescue plan fell through.

Another Friday, another regional bank failiure.

Can the continue to backstop all $17 trillion worth of deposits at regional banks in the U.S or will this be the last?

We’ll see.

Source: ,

28/04/2023

The Fintech industry is not complicated if you know how to break it down 👇

27/04/2023

SME lending is probably one of the biggest opportunities in across the globe and yet it remains largely untapped. Let’s take a look.

The figures (source: IFC) are telling:

— About half of all formal SMEs globally don’t have access to formal credit

— 65 million firms, or 40% of formal micro, small and medium enterprises (MSMEs) in developing countries, have an unmet financing need of $5.2 trillion every year, which is equivalent to 1.4 times the current level of the global MSME lending!

— East Asia And Pacific accounts for the largest share (46%) of the total global finance gap, followed by Latin America and the Caribbean (23%) and Europe and Central Asia (15%)

Even in more mature and developed markets, banks have been failing SMEs with financing being a key pain point: expensive services, product complexity, lack of digitization, no customization and long service cycles. In many cases banks did not even bother to develop a targeted offer, exclusive for SMEs but they would typically propose their existing retail or corporate solutions or sometimes a mix of both.

The lack of a granular segmentation sits at the core of the banks’ inability to properly address SMEs so far. Without it you cannot really understand the different segments and sub-segments that exist – and they are a lot – and, as a result, you cannot make targeted offerings. This is exactly the reason why incumbents have thousands of SME customers without – in most cases - having a clue about who they are and what needs they have. Finding out is too expensive.

There are two factors, however, that seem to be dramatically changing the name of the game:

— by means of 1) enabling an additional layer of automatic granular market segmentation 2) drastically lowering the cost of serving micro and small businesses through modular offerings and digital processes 3) allowing for better use of analytics that completely change (and simplify) the underwriting process

— Embedded by means of altering the mechanics of financial workflows of small businesses through the option of embedding banking and payment services into their core offerings, which opens the door to the platform .

Within this context, there is a long list of approaches from different sides of the market (supply, operations, sales) – from revenue-based financing to invoice discounting and to B2B PayLater – with one common challenge however: how to balance the inherent complexity of SMEs with the need for a high degree of customization. And with technology as a key enabler.

23/04/2023

The NeoBankers Group is an independent, international, multidisciplinary, integrated holding group with decades of experience in business consulting and private consulting, as well as fintech and blockchain, based in the UK.

Our core business areas are the innovative services we need to protect and grow our clients' wealth. With the help of numerous qualified partners, we offer service coverage to companies and entrepreneurs almost worldwide.

The NeoBankers Group has provided innovative financial solutions for consumers, small businesses, corporations and institutions around the world.
The NeoBankers Group has provided innovative financial solutions for consumers, small businesses, corporations and institutions around the world.

Whether we are serving customers, helping small businesses, or putting our skills to work with partners, we strive to identify issues and propose solutions that will propel the future and strengthen both our clients and our communities.

The NeoBankers Group will continue to break new ground in advising, serving and providing new opportunities for its clients. The NeoBankers Group is committed to maintaining the first-class service and high standard of excellence that have always defined the company's group. At its foundation are five core values — put clients first, do the right thing, lead with exceptional ideas, commit to diversity and inclusion, and give back.

Company number 13821747
Incorporation Date (Since): 2021
Company Type: Private Limited Company (LTD)

The NeoBankers Group
member of The NeoVerse DAO Corporation (NVC DAO)

© 2021 The NeoBankers Group is an equal opportunity and affirmative action employer Disability.

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