What is embedded finance and what is it for?

The expansion of the fintech sector and the increasing integration of financial services into mobile apps and e-commerce are revolutionising the way we interact with our money outside traditional banking. But what exactly is embedded finance and why is it becoming so important?

Embedded finance is a model whereby non-banking companies integrate banking services and products directly into their virtual channels through mobile applications or e-commerce platforms. The aim is to allow customers to access financial products and services without having to leave the platform or application they are using, carrying out transactions where the contracting or purchasing process is easy and fast.

This is possible thanks to the use of technologies such as APIs (Application Programming Interfaces), a set of definitions and protocols that enable communication between two software applications and facilitate interconnection between financial services platforms and other sectors through mobile phones in an immediate and intuitive way. This saves time and money when setting up a business, without the need to create an application and all its services from scratch.

A typical case of the use of this technology is online payment, which has become an indispensable tool for consumers. For example, a fintech offering payment services could use an API to connect to an online banking platform so that its customers can transfer money directly from their bank account.

Similarly, e-commerce companies offer payments integrated into their platforms, so that customers do not need to leave the website to make a transaction. This is not only convenient for customers but also offers merchants the possibility to customise their services and improve their efficiency.

The fintech revolution

This technology is especially useful for fintechs that do not have the resources to develop their own banking products or that want to offer more accessible and personalised financial services to their customers, providing an alternative to the traditional banking model. Previously, customers had to visit a bank branch or cash point to access financial services, but now they have access through the platforms and apps they already use, reducing the need for travel, paperwork and waiting.

In addition, embedded finance has also enabled the creation of new business models. For example, e-commerce platforms can offer financing to their customers for their purchases, eliminating the need to use a traditional financial institution. This can help companies improve customer loyalty and increase sales

Embedded finance can also help improve financial inclusion. Many people do not have a bank account or are unable to access financial services for various reasons, such as poverty or lack of access to the banking system. Through embedded finance, these people can access basic financial services from a simple mobile device.

In short, the symbiosis between banks, technology providers and distributors of financial products has created an ecosystem that is transforming the sector, broadening the range of services on offer, fostering competitiveness and improving the customer experience with greater accessibility, convenience and flexibility.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

Machine learning is a branch of artificial intelligence on which applications such as ChatGPT are based. Ariadna Font, a leading international authority in machine learning and ethics, talks to us about the possible applications of these new technologies and the ethical challenges they pose.

The emergence of artificial intelligence through applications such as ChatGPT, developed by OpenAI, is changing our lives and revolutionising many jobs. The evolution of machine learning aims to develop algorithms and systems that can learn and make predictions from data or from interaction with users. “It allows computer systems to automatically improve their performance in a specific task through experience,” says Font.

This technology is being used in various fields such as health, security, commerce, robotics and industry to automate processes, perform financial operations, detect fraud and diagnose diseases. However, their use also raises a number of ethical challenges that need to be considered.

Unintended consequences

If algorithms are trained on data reflecting societal biases and inequalities, the results can be unfair to specific individuals or groups and lead to discrimination. This is of particular concern in contexts such as recruitment, law enforcement and lending, where prejudice can have a significant impact. As Font explains, “machine learning models can make important decisions that affect our lives, so it is very important to consider what effects these decisions have on us”.

On the other hand, machine learning can put people’s privacy and security at risk. For example, the data used to train the algorithms may contain personal and sensitive medical information, and if not properly protected, it can be stolen or misused.

To address these ethical challenges, it is important for designers and developers of this technology to adopt an ethical perspective and think about the implications for individuals and society at large. Adopting privacy protection practices, considering fairness and equality in data selection or ensuring transparency will be essential to ensure that the ethical and human side is not lost with the implementation of artificial intelligence.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

Artificial intelligence facilitates the fulfilment of 79% of the sustainable development goals set globally in the 2030 Agenda. We analyse a Nature Communications’ study to find out why this figure has been reached and from which areas it will be achieved.

What is artificial intelligence (AI)?

Although there is no single way to describe it, an accurate way is the one described by Britannica, understanding AI as the ability of a digital computer or robot to perform tasks that require human intelligence. In other words, taking advantage of technological tools to optimise human tasks and, at the same time, achieve challenges that until now seemed impossible. Social and economic development cannot be understood without these AI mechanisms that, today, already mark our daily lives. Facial, fingerprint and voice recognition, weather forecasting, interactive communication with machines, automated knowledge extraction and logical reasoning are some of the achievements that will undoubtedly mark this century. The focus, and the challenge, is to create and use this technology to contribute to sustainable development on a global scale.

The three pillars of sustainable development

Society, economy and environment form the basis for understanding today’s world and are therefore the key points for developing strategic actions. The Objetivos de Desarrollo Sostenible (ODS), have been created from these three pillars. 17 goals and 169 targets shape the present and future challenges on a global scale to keep technological advances at bay and ensure that every step contributes positively to social progress.

The 169 goals address all areas such as poverty, quality education, access to food, health and water for the population, clean and affordable energy and the creation of sustainable cities. The Nature Communications’ study, based on more than 60 sources, finds that the right AI development can have a positive impact on 134 of these goals, 79%. The uses of AI are multiple and we find them represented in most everyday actions.

AI to reduce social inequalities

Technology is opening up to reach all pockets, also from an economic point of view. Today, using AI through our smartphones is part of our routine. Voice, touch and fingerprint recognition, device localisation, connectivity… AI tools are being incorporated at full speed to simplify the user experience and make technology accessible to everyone. The aim is to reduce the digital divide.

But AI goes further and seeks to create inclusion mechanisms for certain groups. One example is tools such as Google Lookout or Microsoft Seeing AI that facilitate the perception of the environment for blind people thanks to the identification of objects, people or text.

At home, applications such as the Localizador de la Fundació Arrels use technology as a way to care for groups at risk of social exclusion, in this case focused on supporting homeless people. Another example is the Refugee Aid App, which provides migrants with the location of NGOs, social and humanitarian aid centres where they can be assisted.

This is one of the key points of AI, favouring interconnection between users from all over the world and facilitating the creation of meeting spaces from which to collectively tackle egalitarian and inclusive social development. Technology provides the platform, but it is the citizens who have to take action.

AI for a circular economy

In terms of sustainable development, the concept of a circular economy is emerging, in which production is aligned with the life cycle of products and moves away from the traditional system based on buy, use and throw away. AI encourages this system based on the simplest everyday actions. Beyond connecting brands and consumers, digital platforms encourage the exchange of second-hand products and, from the digital environment, a trend has been created based on reusing products and promoting DIY.

The industry is also joining production based on the 7Rs, and it is doing so in many different ways. Machines are put at the service of the environment to carry out production based on recycled materials, from tyres to making roads to clothing. The technology is also reaching into means of transport, which are increasingly sustainable and encourage co-operation over private ownership.

In the area of wealth generation, AI is also key in the business sector in terms of efficiency and process optimisation, as well as in the recruitment process. From bringing companies and job seekers together to creating automated talent selection processes. Along the same lines, investment companies such as Circularity Capital connect, through applications, investment and sustainable projects. The business fabric is adapting to environmental needs with technology as its main ally.

AI in the environment: technology to understand the world

With the aim of environmental preservation, platforms have been created that use data analysis to identify species at risk of extinction, prevent desertification in at-risk areas or favour the maintenance of forests. For a more everyday use, there are applications that encourage the consumption of seasonal food, promote local commerce or encourage sustainable consumption of fish, without forgetting the weather forecast that is key in the maritime or outdoor sectors.

At the same time, from our mobile and thanks to AI, we can calculate air quality in real time, greenhouse gas emissions or the carbon footprint we generate on a daily basis. All facilities that demonstrate that leading a sustainable lifestyle is just a click away.

Technology allows us to understand and know what is happening all over the planet, and even on other planets. The applications created through AI extend to all areas and a global vision is positive: we are managing to create a type of technology that makes life easier for humans and, above all, that strives for sustainable development, thinking in terms of the community. The real challenge in this matter, which the study emphasises, is to ensure that the creation and maintenance of this technology does not have a negative impact on the planet. AI can favour sustainable development, but this will only be achieved if the process of achieving it is also environmentally friendly.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

You have probably heard about tokens lately, especially in relation to cryptocurrencies, the blockchain and the metaverse. But what exactly are they, and what are they for? We are already surrounded by tokens in our daily lives, even if we are not aware of it. Núria Rambla, 11Onze’s executive assistant, gives us all the clues.

“A token is a symbol, a code. Tokens are objects similar to a coin, but they are not legal tender,” Rambla explains. This means that they only have value within the market where it has been established that they will be used and only for the purpose for which they have been created. Tokens have been around for many years and the clearest example is casino or fairground tokens, those plastic coins that can only be used to play slot machines or poker or to ride the witch train or bumper cars.

And what characterises tokens? They have no value, they are issued by institutions or private companies, they are made of low-value materials, they have a control system and they are secure and cannot be counterfeited,” the executive assistant says. In the digital world, tokens use the infrastructure of cryptocurrencies, the so-called blockchain, to circulate. We could say, in fact, that a cryptocurrency is a token, even though a token is not a cryptocurrency at all.

“While a cryptocurrency has its own blockchain, a token always takes advantage of an existing blockchain, which is why it is cheaper for digital platforms,” Rambla argues.

In the virtual world, tokens have infinite applications: they can serve as security codes that are validated when we enter a website, as exchangeable points in video games, as miles travelled by airlines… In the world of finance, they are also used in so-called tokenization, that is, to protect our data when we make online payments, using a code that validates the transaction with total security. And in terms of investments, there are security tokens. Want to know more about tokens? Just watch the video below!

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

Automation, artificial intelligence and robotics are transforming the way we live and work. These technological advances are improving productivity, but they also raise challenges and questions about how they will affect workers and the economy as a whole.

The evolution of working hours has been on a downward trend over the past four decades. According to a report published in the Bank of Spain’s Economic Bulletin, the average working week in Spain between 1987 and 2019 has fallen from 37 to 31.8 hours per week.

This study analyses the set of structural changes in the economy that have contributed to the reduction in working hours and the prospects that this trend will continue in the future. It identifies the increasing weight of the service sector, the drive towards part-time work and the progress of technology as the main factors contributing to the decline in average working hours.

Technological advances in automation, robotics and digitisation of information and communication have changed the nature of many work tasks and made it possible to reduce workloads without reducing productivity. A reduction in working hours facilitates work-life balance, reduces stress and improves the health and well-being of workers.

However, while it is true that technology brings personal benefits and helps companies to increase productivity and efficiency, it can also have a negative impact on workers by replacing some jobs with automation or reducing available working hours.

Investing in education and training

The report notes that investment in human capital and innovation are key factors in improving productivity. That is, regions that invest in education and training have a workforce that is better prepared to adopt new technologies and to take advantage of the opportunities of this occupational revolution.

According to the Randstad study, ‘Flexibility at work: embracing change’, 52% of current jobs in Spain are at risk of being partially or fully automated in the next decade. Even so, it should be borne in mind that when we talk about job losses, it is the tasks that require fewer skills, and not the professions themselves, that are being automated by technology.

In a context of economic crisis and the inability of many companies to significantly increase salaries, reducing working hours while maintaining salaries and productivity can be a determining factor in attracting talent. In any case, the process of adaptation by society to this new labour reality will require the collaboration of the business fabric and the public administration so that no one is left behind.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

Although 2022 was a turbulent year for cryptocurrencies, the blockchain technology behind them continues to gain prominence in the international financial system. And not just because of the increasingly widespread adoption of cryptocurrencies as a means of payment. In Italy, it will also form the basis of an innovative banking and insurance guarantee platform promoted by the Bank of Italy and the Italian insurance authority.

Despite the uncertainty generated by the collapse in cryptocurrency prices during 2022, which plunged the value of terra-luna and led to the bankruptcy of the FTX exchange platform, the implementation of blockchain technology in the global payment system continues its unstoppable advance.

The trend is particularly pronounced in countries with low levels of banking penetration or high instability. An example of the former is Nigeria, where only 40% of the population has access to a bank account. The need to carry out digital transactions has caused the adoption of cryptocurrencies in that country to soar to 45% of the population. In Turkey, with an increasingly weak currency and inflation of over 64% in the last year, the percentage of people holding cryptoassets has risen from 25% to 40%.

In general, developing countries tend to be leaders in the adoption of blockchain technology and the use of cryptocurrencies because of weaknesses in their financial systems and low levels of banking. People are primarily looking for an efficient system to make payments and a resource to protect their purchasing power. 

An unstoppable advance

Not even measures such as a ban on cryptocurrency transactions, as has happened in Nigeria, are usually effective in slowing down the advance of blockchain. In fact, this African country is still the one where cryptocurrencies are most widely used, with almost half of the population using them. In contrast, it is estimated that only 0.5% of Nigerians use eNaira, the digital currency promoted by Nigeria’s central bank.

Technological limitations and lack of technical knowledge are often not an obstacle to blockchain’s progress. This was seen in Afghanistan, when the Taliban seized power in August 2021 and the banking system collapsed. For some, cryptocurrencies and other blockchain-based solutions became secure alternatives for receiving and making payments.

Without widespread access to smartphones, Sanzar Kakar, founder of a cryptocurrency payment system called HesabPay, turned to cards with QR codes, which merchants can scan to deduct the corresponding funds from the virtual wallet. Their owners can receive money and make payments without the need for traditional banks and without any understanding of blockchain.

Also in neighbouring economies

The use of blockchain is also advancing inexorably in the more established economies around us. One example is the creation in Italy of an innovative platform for bank and insurance guarantees based on this technology. It is being promoted by the Bank of Italy and IVASS, the Italian insurance authority. This is the first time that an EU Member State has allowed the use of blockchain in banking and insurance guarantees.

As a result, a significant percentage of the bank and insurance guarantees in Italy’s National Recovery and Resilience Plan, which will move hundreds of billions, are expected to leverage distributed ledger technologies (DLT). Blockchain is ideal for such economic programmes because of its ability to enable fast, efficient, cheap, scalable and fraud-proof data transactions.

Most central banks are already beginning to assume that they will have to ally with their “enemy”, blockchain-based cryptocurrencies, to retain their dominant position in the international financial system.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

Around 500 companies work in the field of cybersecurity in Catalonia. This is a growing industry due to the increase in digital threats. In just one year the number of cyber-attacks in Catalonia has increased by more than 30% and in the world this type of incident has grown by 50%.

On 8 and 9 November 2014, Catalonia suffered one of the ten most intense cyber attacks in the world that year. The aim was to overthrow the 9N consultation. It did not succeed. Cybersecurity measures allowed the official website of the consultation, Participa2014.cat, to resist. On the other hand, several websites and services of the Generalitat, such as the electronic prescription or the registry of medical records, were down. According to what an international journalistic investigation revealed a few weeks ago, the person in charge of orchestrating the computer attack was an Israeli businessman, who has not revealed who paid for it.

It is estimated that the Generalitat suffered almost 150 million cyber-attacks that year. Despite the magnitude of the figure, it is nothing compared to the volume of cyberattacks that occur today. In 2022, 1.7 billion were detected, according to the Catalan Government. This represents an increase of 75% over the previous year and is more than ten times the number of incidents in 2014.

Catalonia, well positioned

Fortunately, the cybersecurity sector is in good health in our country. According to a report by Acció and the Catalan Cybersecurity Agency, there are 495 companies involved, with a turnover of more than 1,000 million euros and nearly 10,000 workers. The rate of growth in number of companies, turnover and workplaces compared to 2021 was in double digits.

Significantly, Catalonia was the third region in Western Europe in terms of attracting foreign investment in the field of cybersecurity, with 163 million euros, behind only Ireland and the Brussels region.

Although 85% of the companies are SMEs, more than half (54%) have a turnover of more than one million euros and 29% are exporters. The sector is highly concentrated geographically, with eight out of ten companies located in the Barcelona Metropolitan Area.

An expanding global market

Undoubtedly, the growing digital threats to which institutions, companies and individuals are exposed are spurring the expansion of the cybersecurity sector. The strong digital presence of companies, both externally and internally in the management of data and processes, makes them particularly vulnerable to cyber-attacks, which can have a considerable negative impact on the bottom line.

It is estimated that 71% of cyber-attacks worldwide in 2022 were financially motivated and cost around €7 billion. The value of the stolen cryptoassets alone exceeds €3 billion. It is therefore not surprising that between 2022 and 2027, global cybersecurity turnover is expected to grow by 13.6% per year, to almost €300 billion.

When it comes to protecting ourselves, it is important to bear in mind that e-mail has established itself as the main vector for malware distribution and is used to initiate 84% of cyber-attacks. Moreover, 74% of cybersecurity incidents affecting Catalonia last year involved the use of social engineering techniques.

If you want your business to make a giant leap, use 11Onze Business. Our business and freelancer account is now available. Find out more!

ChatGPT has entered with a bang to revolutionise the way people interact with artificial intelligence. A technological innovation that will transform different economic and social spheres. Gemma Vallet, director of 11Onze District explains what it is, how it works and what this technology can do.

ChatGPT is a free app that uses machine learning to understand natural language and provide answers to users in real time. A natural language model created by OpenAI, it uses one of the most advanced technologies currently available in the field of artificial intelligence and has countless applications.

The algorithm was trained on huge amounts of textual data, including: books, newspaper articles, Wikipedia texts, conversations, emails, chats and other types of documents. It was developed based on a neural network architecture originally intended for automatic text translation, but which has proven effective for other types of language-related tasks.

As Vallet explains, “we can ask it for anything from translations to text generation”, but she highlights “its ability to approach human language, including adjectives and variations” that you wouldn’t expect from a bot found in other applications.

A paradigm shift

ChatGPT is able to answer questions, offer advice, provide information, write texts and do many other language-related tasks. This model is especially useful in applications such as customer service, human resource management, machine translation, text writing and generating responses for social networks.

Its use is already changing the way many people do their jobs, streamlining processes or automating content creation, but which could also put some professional sectors at risk.

Moreover, its ability to learn from interaction with users provides it with additional data for training the model, making it more accurate and effective over time. There are even “people who ask it to create poems, training the machine in a process of creativity”, Vallet points out.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

The fintech sector has grown significantly in recent years. This has created new opportunities for consumers and businesses, which now have access to a wide range of innovative financial products and services. Xavi Viñolas, editor of 11Onze, details some of the new technologies related to fintech.

Peer-to-peer lending

Peer-to-peer (P2P) lending is a financial innovation that has grown in popularity in recent years. That is, through P2P lending platforms such as crowdfunding, investors can lend money to other people or companies without the need for a traditional financial intermediary, such as a bank.

Cryptocurrencies

Cryptocurrencies are digital currencies that use cryptography to secure transactions and control the creation of new units. They are digital assets that continue to gain prominence in the financial world, with Bitcoin as the best known example. They offer advantages such as security, privacy and decentralisation, but also present risks, such as the volatility of their value.

Blockchain

Blockchain technology was popularised with the creation of Bitcoin. It is a technology that allows transactions between two or more people without the need for intermediaries. It is a digital ledger where all transactions are stored in computers interconnected through a P2P network, without the need for a central server. This technology has proved to be key for fintechs, as it reduces costs, speeds up processes and improves security when making international payments, verifying the digital identity of users or facilitating micro-patronage.

APIs

APIs, which stands for Application Programming Interfaces, are a set of protocols, mechanisms and tools that enable communication between different computer applications. In the fintech sector, APIs are a key tool for connecting different platforms and systems, allowing data to be transferred securely and efficiently. For example, a fintech offering payment services could use an API to connect to an online banking platform so that its customers can transfer money directly from their bank account.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

It is clear that online shopping is becoming more and more widespread among all of us. It saves us from having to travel to go shopping and we can do it at any time and moment of the day, whether it is near or on the other side of the world. How safe is it to pay via the Internet?

In general, online payment is very secure. Its security has improved a lot since its use became widespread. The need to offer security to buyers led to a lot of resources being invested to implement improved web security systems, and the result is that nowadays, buying a product over the Internet is as secure as or more secure than buying it in a physical store.

This security also depends, to a great extent, on the caution of the user himself. Some recommendations in this regard may be from having a good antivirus on the computer, to check security protocols and data encryption, or even buy in known or trusted places.

For users less experienced in online shopping there are several payment methods that provide added security, making the risk of buying online virtually zero. The most important thing in online sales is that the buyer can have the guarantee that no one can, as a result of a particular transaction, impersonate his personality in the future by making other purchases in his name and at his expense. There are several ways to pay for online purchases with added security:

• Payments with the PayPal system. PayPal is one of the most popular and secure platforms for making transactions. It is not only useful for making purchases, it can also be used to make money transactions between individuals. This platform acts as an electronic intermediary through the user’s credit or debit card, with the objective of ensuring confidentiality, both for the seller and the buyer, and offering the guarantee that the commercial transaction is carried out satisfactorily. This platform has the advantage that if the customer has any problem or does not receive the purchased item in the proper conditions, a claim can be made, which will initiate an investigation by the Paypal platform, which in most cases will end up giving the buyer the reason and returning the amount of the purchase.
• Cash on delivery payments. This system has been used for a long time in purchases that do not necessarily have to be online, although it is not very widespread in online shopping. It is the only means of payment used in e-commerce that involves the use of cash. By doing so, the only information the buyer has to provide to the seller is his personal data and postal address. It has the disadvantage that the buyer has to be present when the shipment arrives to make the corresponding payment, unless a notification arrives to pick up the item later at a delivery office. This system guarantees delivery of the item at the time of payment. From the seller’s point of view, this means of payment entails a delay in collecting the money for the item sold, and the need for physical collection of the money by the person making the delivery.
• Charges on bank account. Some platforms offer this type of payment, but it is not widely used in online commerce. In this case you buy what you need online and give your bank details, nowadays it is usually the IBAN number, and the seller makes the charge directly to the current account provided. It is usually used for periodic charges or subscriptions.
• Debit or credit cards. Debit or credit cards are the most popular means used in e-commerce. For the buyer it means, in the case of using his debit card, the immediate payment at the moment of making the transaction, or in the case of using his credit card, his deferred payment for the end, or in the surroundings, of the end of the month. For the seller, this means quick payment in exchange for a small commission deducted by the drawer’s bank from the amount to be charged for the sale of the item.
• Pay later. Some Internet platforms, in collaboration with financial institutions, advance the money for the purchase, which will be charged in monthly installments, generally charged to the debit or credit card, during the term chosen. These services act as intermediaries between the seller and the user and therefore no sensitive information is shared with third parties.
• Exclusive accounts linked to debit cards. This option is one of the safest that the buyer can use to protect his bank accounts. The user has to ask his bank for an exclusive account to make online purchases and request a debit card associated with this account. The buyer, every time he wants to purchase a product, will have to transfer the amount to be paid to the online seller, to this exclusive account, and then pay using the card linked to where he wants to make the online purchase. In this way, the user can be sure that, even if his card data is compromised, the bank account to which it is associated does not have a balance to make the corresponding payment.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!