Stripe: Adding payments to your LLM agentic workflows; Stablecoin payments heat up in 2024; Status of Open Banking and Open Finance in Regulation-led Jurisdictions;

This week, we’re exploring how cloud ecosystems are driving financial services, the rise of Self-Sovereign Identity (SSI) in decentralizing digital credentials, and the growing adoption of stablecoins

Insights & Reports:

1️⃣ Cloud in financial services

2️⃣ Stripe: Adding payments to your LLM agentic workflows

3️⃣ How Self-Sovereign Identity (SSI) works

4️⃣ Guidance for Building a Core Banking Platform Using Amazon QLDB

5️⃣ Emergence of co-lending business models in India

6️⃣ Stablecoin payments heat up in 2024

7️⃣ Status of Open Banking and Open Finance in Regulation-led Jurisdictions

8️⃣ Introduction to monetizing payments for SaaS platforms

9️⃣ Why are stablecoins being used for TradFi purposes?

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TL;DR:

Hey everyone, welcome to this week's edition of Fintech Wrap Up! Here’s a quick dive into the most intriguing updates and insights shaping the fintech and payments world.

The cloud revolution in financial services is reshaping the industry. A Capgemini study highlights that ecosystems and cloud-native solutions are enabling banks and insurers to scale faster, innovate more effectively, and improve decision-making—an urgent need since 86% of firms feel they’re underutilizing their data. Partnerships with fintechs, cloud providers, and tech companies are paving the way for top-line growth by unlocking agility, market reach, and better customer experiences.

Speaking of innovation, Stripe is taking LLM-powered agentic workflows to the next level. Their tools integrate financial services like virtual cards and real-time spending controls into automated workflows, making business processes smarter and more secure. Imagine AI agents booking flights and paying instantly with single-use virtual cards—Stripe is making this a reality.

On the identity front, Self-Sovereign Identity (SSI) is poised to revolutionize how we manage and share our digital credentials. By decentralizing identity, individuals gain control over their data—whether it’s passports, diplomas, or vaccination records—ushering in a new era of seamless, secure interactions without reliance on centralized platforms.

For banks looking to modernize, AWS offers guidance on building cloud-native core banking platforms with services like Amazon QLDB and Kafka. These enable real-time transaction processing, scalable architecture, and advanced analytics, all while improving agility and cost-efficiency.

In India, the co-lending model is gaining traction, combining traditional banks and fintechs to provide faster, more flexible loans while sharing risks and rewards. Fintechs play a crucial role here, streamlining processes with technology-driven underwriting and integration.

Stablecoins remain a hot topic, with PayPal’s PYUSD leading the way in cross-border payments via Xoom. Stripe, Societe Generale, and others are making moves to harness stablecoins for faster, cost-efficient remittances, especially in high-growth regions like APAC and Africa.

Lastly, Open Banking and Open Finance are progressing globally, with 63% of jurisdictions already passing Open Banking regulations. Emerging markets are particularly active in Open Finance, leveraging foundational lessons from advanced economies to accelerate adoption.

And for the fintech news buffs—Wise faces regulatory remediation for anti-money laundering controls, and Revolut’s Nik Storonsky calls out the UK’s IPO limitations while outlining the company’s path to a $100BN valuation. Intriguing times for the industry!

That’s a wrap for this week! Stay curious, stay informed, and I’ll see you next time. 🚀

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Insights

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Cloud in financial services

Ecosystems unlock synergies and faster decision-making to drive top-line growth

Financial services firms are looking for quick decision-making and faster product innovation. According to a 2022 InterSystems poll, 86% of banks and insurers lack confidence in using their data to drive decision-making.27 Moreover, a study from the London-based provider of cloud-native core banking platforms,10xBanking, found that 64% of bank managers believe that slowed digital transformation impacts their business.

Financial services executives told Capgemini that ecosystem partnerships are an asset to their strategic priorities:

69% said cloud providers are vital to offer scalable infrastructure, enhanced data security, and advanced analytics features.

57% said other supplemental technology providers are critical for integrating platforms and equipping their firms with the right technology to support cloud priorities.

55% said FinTechs and InsurTechs are important to offer innovative solutions across payment processing, lending, digital banking, underwriting, and claims processing to help enhance customer experience.

Ecosystem partners help banks and insurers drive operational efficiency by providing access to alternative customer data, ensuring consistent organizational data flow and product creation agility. Our Executive Survey respondents said partnerships help them innovate through enhanced data insights (72%), collaborative R&D (48%), and reduced barriers to digitalization (46%).

Banking and insurance ecosystems can help provide scalability, manage financial transactions efficiently, create innovative products, improve customer relationships, and maintain compliance.

With the right innovation capabilities in place, FS firms can boost customer acquisition and top-line growth by:

Expanding market reach by entering and serving new markets with the help of cloud systems that don't require the costs involved in building multi-location infrastructure

Providing value-added features and services that attract new customers

Enhancing customer engagement through personalized reach, quicker time to market new products, and faster response to evolving customer needs.