C2B pay-by-bank (PBB) transaction flow; How do neobanks compare in 2024?; Australian Open Banking Ecosystem;

In this edition of Fintech Wrap Up, we delve into the evolution of modern core banking platforms, the competitive landscape of neobanks in 2024, and the rise of Pay By Bank (PBB)

Insights & Reports:

1️⃣ Main features and benefits of a modern core banking platform supporting the digital age

2️⃣ How do neobanks compare in 2024?

3️⃣ Types of cards

4️⃣ C2B pay-by-bank (PBB) transaction flow

5️⃣ Australian Open Banking Ecosystem

6️⃣ Enabling offline payments in an online world

Curated News:

1️⃣ Accend Raises $3.2M to Reinvent Fintech Operations and Compliance Workflows

2️⃣ Anne Boden quits Starling for new AI venture

3️⃣ Stripe Valuation Hits $70 Billion in Sequoia Deal

---

TL;DR:

First up, let’s talk about modern core banking platforms. These systems are crucial for financial institutions aiming to thrive in the digital age. They significantly accelerate time to market and reduce IT costs thanks to their flexible parameterization. This adaptability not only fuels growth but also allows banks to meet future regulations. With a focus on product standardization and innovation, these platforms separate core functions from customizations, ensuring that updates and patches are handled efficiently by the vendor. Furthermore, the modularization and composability offered by cloud-native solutions, like Tuum, allow banks to integrate a range of services—from digital wallets to AML compliance—while enhancing connectivity through APIs. 

Shifting gears, let’s look at the neobank scene in 2024. Companies like Revolut, Starling, Wise, PayPal, N26, and Monzo are all in a competitive race to provide users with a unified financial service experience. Revolut is seeking a $40 billion valuation and has rolled out new features such as bond investing and a European debit loyalty program. Interestingly, even remittance services like Wise and payment processors like PayPal are now offering banking features that put them on par with traditional neobanks. The focus remains on minimizing fees for international transactions, with players like Monzo and Revolut enabling fee-free withdrawals and providing travel insurance to their users.

On the topic of payment methods, I explored various types of cards, including prepaid, debit, and credit cards. Each has its unique characteristics: prepaid cards are flexible and lower-risk, debit cards allow direct access to bank accounts, while credit cards offer a revolving line of credit with added benefits. As the market evolves, we also see a rise in virtual cards that enhance online security and usability.

One payment trend worth noting is Pay By Bank (PBB) solutions. This method allows direct transfers from customer bank accounts to merchants without relying on card networks. With lower transaction fees and instant settlement, PBB enhances trust and efficiency, making it an appealing choice for both consumers and merchants alike. The demand for such payment methods is growing, especially with the rise of instant payment systems in places like the UK and the US.

In terms of open banking, the Australian ecosystem is witnessing significant growth, with a surge in accredited data recipients and use cases. The major banks are now active participants, moving past compliance and toward innovation. Upcoming regulatory changes, particularly concerning non-bank lending and action initiation, are expected to further enhance this landscape.

Before I wrap up, I want to highlight some noteworthy news: Accend, a Y Combinator startup, has raised $3.2 million to reshape fintech operations and compliance workflows. Anne Boden, founder of Starling Bank, has left to pursue a new venture in AI. And in a major development, Stripe has reached a valuation of $70 billion through a deal with Sequoia Capital.