The future of finance at Fintech Talents
11Onze provides insights at a prestigious event on embedded finance
How is embedded finance reshaping the industry? What does it mean for financial services to be provided outside traditional institutions? What will be the role of the wallets of wallets? Key players of the revolution experienced by the financial sector, including 11Onze, addressed all these issues at FTT Embedded Finance & Super-Apps, a prestigious event organised by Fintech Talents.
If there are representatives from companies such as Microsoft, Verizon, eBay, Huawei, Pinterest or TikTok on the steering committee of an event, it is a sign that the topic to be discussed is not a minor one. If, in addition, the programme of sessions addresses the fintech ecosystem and is held in London, the global mecca of finance, any self-respecting industry player should mark the date on its calendar.
The FTT Embedded Finance & Super-Apps 2022 sessions, held on 26 April, brought together representatives from the major players in retail banking, fintech, insurance and technology to discuss the seven trillion dollar potential market of embedded finance.
It should be borne in mind that the embedded finance model not only allows financial services to be connected to any platform outside traditional banking, but is also democratising the management of the community’s capital and wealth, with the revolution that this entails.
The crème de la crème of finance
In total, more than 400 people attended an event organised by Fintech Talents, a community of over 200,000 professionals and entrepreneurs from across the fintech ecosystem. The different presentations and sessions analysed a present scenario in which the universe of financial service providers is expanding beyond the traditional players.
Raul Arribas, Chief Technology Officer of 11Onze, participated in one of the sessions of the embedded strategy stage, focusing on the so-called super apps, which are redefining financial services. Attending the same session were representatives from a giant such as JPMorgan Chase, which provided the perspective of traditional banking; Ziglu, which offered the vision of a neobank; Paysme, a fintech focused on services to SMEs; and Marqeta, which moderated the session.
The role of super apps
The first topic addressed in the session was the concept of the financial super app. Participants agreed that this type of application should offer a variety of financial services in a single environment. In this respect, all were of the opinion that marketplaces cannot be considered super apps, as in such cases customers contract the services with third parties.
Raul Arribas clarified that 11Onze’s El Canut model, a wallet of wallets that brings together various functions and services in a single place, makes it possible to control “the customer journey”, since everything is contracted with 11Onze and, if the customer has a problem, he or she contacts this company to solve it.
In addition, Arribas explained that the fact that El Canut can incorporate accounts from other entities “allows the user to have everything in one place, which is more convenient”, but also lets 11Onze “use the data as a vehicle to create better products for customers” because of the information they provide.
Surprisingly, Helena Forest, Executive Director of EMEA Treasury Services at JPMorgan Chase, highlighted in the same session the agility of a traditional bank like hers in using customer data to tailor products to suit clients. It is interesting that the world’s financial giants are trying their best to be perceived as agile. The truth is that native fintechs tend to have a more customer-oriented business model, while the inertia of large institutions tends to make them less responsive to change.
New players for old needs
Another of the issues addressed in the session was the lack of attention paid by traditional banks to SMEs, something that was accentuated by the pandemic, and how entities such as Ziglu and Paysme have found business opportunities there. In this regard, Raul Arribas indicated that 11Onze’s short-term plans are to “offer services to SMEs and the self-employed because they are the forgotten ones of the traditional banking system”.
Most of the speakers agreed that fintechs will appear that will provide highly personalised services to specific groups, especially those that traditional banking has not treated too well.
Regarding the positioning of super apps, Arribas stressed the importance of targeting the offer to a specific community, which is fundamental “to generate trust and offer products that are really tailored” to these customers. He added the importance of an instrument such as La Plaça and its role in providing financial education to customers within the 11Onze model.
Four areas of debate
This panel discussion was part of a stage focused on embedded strategy, which emphasised the importance of preparing for change and taking advantage of the technological potential, as well as having a clear vision of the value that each proposal generates for the customer.
The other three stages of the event focused on how payments and lending are adapting to the embedded finance environment, how the new era will affect insurance market, and how wealth management can benefit from the new opportunities that are opening up.
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