Edition 27 | Neo Banking Newsbeat | Your Weekly Neo Banking Updates

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3RD WEEK OF FEBRUARY, 2024

Greetings from the world of Neo Banking, where financial innovation knows no bounds! Welcome to our weekly newsletter: Neo Banking Newsbeat the ultimate destination for staying ahead in the dynamic realm of digital finance.

RESEARCH SUMMARY

Banks migrate from mainframes to AI-driven cloud tech

Banks are shifting from mainframes to AI-powered cloud technology, with 63% recognizing generative AI's role in this transition, per NTT Data survey. Despite 89% of banking leaders considering themselves innovators, most still rely on mainframes. However, generative AI is seen as enabling cloud adoption, marking a transformative phase.

91% have board support for AI and cloud initiatives. Yet, 80% lack a strategic framework for generative AI adoption, highlighting a skills gap. NTT Data's Kaz Nishihata emphasizes the industry's move towards innovation, security, and redefinition through this transition.

Israel’s One Zero Bank launches Gen-AI-powered service platform

One Zero Bank launches Ella 2.0, powered by Gen AI from AI21, aiming to revolutionize customer interaction. Ella 2.0, a digital private banker, delivers instant, personalized responses in multiple languages, operating 24/7. CEO Gal Bar Dea highlights its breakthrough in practical Generative AI implementation.

Partner AI21 raised $155m, valuing it at $1.4bn, signaling industry recognition. Ella addresses 58% of common queries, with plans to reach 80%. Co-founder Ori Goshen emphasizes the shift towards faster, more reliable, and personalized banking experiences.

Green-Got is a neobank for climate-conscious customers

Green-Got, a neobank emphasizing climate-conscious banking, raised $5.5 million with community contributions. It partners with Crédit Mutuel Arkéa, ensuring customer funds aren't invested in polluting industries. The app offers basic banking features like account creation in minutes, and debit cards compatible with Apple Pay and Google Pay.

And real-time purchase notifications. Subscription-based revenue model charges €6/month with plans for carbon impact tracking and donation options. Plans include savings accounts managed by Generali. Green-Got competes with both traditional and challenger banks prioritizing sustainability and aiming for significant growth in the market.

PayPal suggests it will be ready to offer ‘offline’ payments when DMA goes into effect

PayPal hints at offering offline payments as EU's Digital Markets Act (DMA) rolls out, allowing third-party NFC access. CEO Alex Chriss suggests PayPal is working on this solution, addressing customer demand for omnichannel usage. Despite past offline payment attempts, PayPal eyes opportunity with DMA-driven changes,

potentially rivaling Apple Pay. Europe's high mobile wallet penetration offers a promising market. Chriss mentions a new consumer app in development, emphasizing improved mobile experiences with AI-powered features. PayPal's Q4 earnings beat expectations, but weaker Q1 guidance impacts stock.

Indian parliamentary panel red-flags PhonePe and Google Pay cornering 83% of India’s UPI payments

An Indian parliamentary panel raises concerns over PhonePe and Google Pay dominating 83% of India's UPI payments. The report urges government support for domestic fintech players. Amid Paytm's regulatory issues, disruption may further bolster PhonePe and Google Pay's market share.

PhonePe holds 46.91%, Google Pay 36.39%, while BHIM UPI lags at 0.22%. NPCI previously proposed a 30% cap on market share, extended to 2024. The panel emphasizes promoting local fintech entities, aligning with India's 'Make in India' initiative.

Revolut combats roaming charges with 'eSIM'

Revolut introduces eSIM service for UK customers to combat data roaming charges abroad. Users can install and top up eSIM digitally via the app, allowing simultaneous use with physical SIM cards. The Ultra plan includes 3GB of global data monthly, with an introductory offer of 100 MB for all UK customers.

With rising roaming costs, Revolut aims to simplify mobile data access and eliminate the need for physical SIM cards. Product owner Elyas Sadou highlights the eSIM's convenience in reducing high prices and logistical hassles.

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