??? Going “Beyond Banking”

Today I'm looking at new revenue streams that are transforming banks to "beyond banks."

This in-depth was inspired by my latest ADL Viewpoint which I co-authored.

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Now let’s dive in.

?? Going “Beyond Banking”

The Background

• Beyond banking is a concept that expands traditional banking products and services to address areas such as real estate, transportation, travel, healthcare, and shopping.

• The ultimate goal of beyond banking is to facilitate the purchase of non-banking products and services to make transactions smooth and easy for customers, which may not necessarily be through the bank's own app.

• The transformation of the banking industry includes digitalization, interconnectivity, and the availability and use of rich data – which have all led to new business models emerging on the back of these technological advancements.

• Emerging regulations around data, open banking, and open finance have created an opening for banks to extend their business into new products and services beyond banking.

Today’s State of Affairs

• Banks need to adapt and evolve in order to remain competitive in the market and meet changing customer expectations.

• “Beyond banking” banks have the potential to generate new revenue streams by offering lifestyle services, partnering with non-financial players, and leveraging customer data to provide personalized offerings.

• Customers today expect more personalized and convenient banking experiences, with a focus on mobile and online channels, as well as access to innovative products and services.

• Beyond banking initiatives can meet evolving customer demands by offering a wider range of lifestyle services, leveraging customer data to provide personalized offerings.

What’s Next?

• Strategies for banks to embrace "beyond banking" include developing partnerships with non-financial players, leveraging customer data to provide personalized offerings, and investing in digital platforms and technologies.

• Partnerships, innovation, and customer-centricity are crucial for banks to stay competitive in the digital age, as they enable banks to offer more innovative and personalized products and services that meet evolving customer needs.

• Data and technology play a critical role in enabling "beyond banking" initiatives, as they allow banks to leverage customer data to provide personalized offerings, develop innovative products and services, and create a more seamless and convenient customer experience.

• Banks can leverage data analytics, AI, and automation to gain insights into customer behavior, preferences, and needs, enabling them to provide personalized experiences and tailored offerings.

• By exploring "beyond banking" opportunities and strategies, banks can stay ahead of the curve, meet evolving customer needs, and create new revenue streams in an increasingly competitive landscape.

What do you think are the biggest challenges and opportunities for banks looking to embrace "beyond banking" strategies?

?? Fintech & Payments

? Anne Boden, the CEO and Founder of Starling Bank, will be stepping down at the end of June, as the bank reveals its annual results for 2022, reporting a doubling of revenue to ￡453m and a six-fold increase in pre-tax profits to ￡195m.

? Saudi Arabia is in discussions with NDB (also known as the BRICS Bank) to become its ninth member.

? PayTabs, the payment solutions provider, has acquired OGS PayLab India with the aim of enabling mada certified payment orchestration services within the Kingdom of Saudi Arabia.

? Prominent investor Sharakah has partnered with leading fintech company Beehive to provide rapid and accessible finance, fostering the growth of the SME economy.

? Klarna has halved its losses in the first quarter of 2023, with CEO Sebastian Siemiatkowski saying that the company is “on track” to achieve monthly profitability in the second half of this year.

? Leading lifestyle fintech platform valU has partnered with Telda, Egypt's digital payments platform, allowing valU's "Sha2labaz" users to easily disburse money through Telda's mobile application and prepaid card.

? Arab Financial Services (AFS) and Visa have introduced prepaid cards in Bahrain and Oman, enabling businesses to digitize merchant settlements.

? Thunes has partnered with Saudi Arabia's new digital bank, D360, to facilitate instant cross-border payments across the MENA region and major global markets.

? SAB has joined forces with fintech firm Ottu to enhance its Digital Payments Solution by providing SAB merchants with an Online Payment Management Solution.

? Tom Blomfield, the former CEO of Monzo and GoCardless, is joining Y Combinator as their newest group partner.

? Airwallex, the global SME payments and financial infrastructure service, has chosen TrueLayer as its partner to facilitate open banking payments in Europe.

? Klarna is introducing a credit 'opt out' feature on its app, enabling customers to proactively choose not to use credit and block themselves from accessing BNPL options.

? Visa is launching the second edition of its She's Next initiative, aimed at providing support to women entrepreneurs in Saudi Arabia – in collaboration with the Ministry of Communications and Information Technology, Monsha’at, and Arab National Bank.

?? The World of Web3

? Dubai is preparing to launch the world's first 'Bitcoin Tower,' a hotel designed to offer a range of pro-blockchain and Web3-supportive services and experiences.

?? Crypto & Defi

? Coinbase and Bitpanda are partnering to promote the adoption of digital assets, as Coinbase establishes a direct connection with banks and fintechs through Bitpanda Technology Solutions.

? Ripple acquired custody provider Metaco for $250 million, as it sets its sights on the growing institutional custody market projected to reach $10 trillion by 2030.

? SNEK, the Cardano meme coin, reached new all-time highs, experiencing a remarkable 23,000% increase in market cap since its listing.

?? The Future is AI

? AI is transforming retail, with analysts projecting that retail's spending on AI in 2023 will exceed all sectors except banking, and its projected 40% adoption rate is expected to double by 2025.

? ChatGPT iOS app is now accessible to users in Canada, India, Brazil, and 30 countries, a week after it launched in the US.

?? The State of Investment

? Builder.ai, the user-friendly AI-powered software platform enabling businesses and individuals to transform their ideas into software, has secured over $250 million in Series D funding.

? DisrupTech Ventures plans to invest $5 million in four Egyptian fintech startups by the end of 2023.

? US fintech company Pesto has secured $11 million as it introduces the Pesto Mastercard, which aims to provide a cost-effective lending option for underbanked Americans.

? Tyme, a rapidly growing digital banking group based in South Africa, secured $77.8 million in its pre-Series C capital raise.

? Investments in Saudi Arabia’s special economic zones reached a total of $12.6 billion.

? PIF is investing in DigitalBridge to establish data centers in Saudi Arabia and GCC countries.

? Tabi, an NFT marketplace, raises $10 million in funding to advance the development of a gaming ecosystem on the BNB Chain.

?? In Other News…

? Layoffs: Zepz, the parent company of WorldRemit and SendWave, is laying off 26% of its workforce (around 420 employees).

?? Report of the Week

The AI in Business Trend Report: Gain insights into the adoption and impact of generative AI among professionals. This report answers key questions about usage frequency, preferred applications, budget allocations, and concerns regarding job displacement. The report reveals that millennials and Gen Z have the highest adoption rate, while c-suite professionals show high satisfaction levels. Companies with 201-500 employees lead in adoption, while smaller firms face budget and knowledge barriers. Top use cases include creative writing, email marketing, and idea generation. Confidence in generative AI's safety and ethics is strong, with a majority anticipating future improvements. To delve deeper into these findings, click here to download the full report.

?? The Podcast for Fintech Enthusiasts

In this episode, we delve into Egypt's growing digital payment landscape, fueled by new platforms, changing consumer behavio, and supportive regulations. Our guest is Waleed Sadek - ???? ???? (founder of PaySky and Yalla, leading fintech players in the Middle East and Africa). We discuss his journey from medicine to fintech, his vision to democratize digital payments, and introduces PaySky's Super Payment Gateway and Yalla's all-in-one Super App. We also explore blockchain's role in payments, the future of fintech and banking, and the positive reception of Yalla's Super App. Join us for a deep dive into the transformative digital revolution shaping financial services in the Middle East and Africa.

?? This Week’s Payments News

??? And that brings us to the end of today’s Crunch

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