Fintech

In profile: Anish Kapoor, CEO of AccessPay

Published

8 months ago

29 May, 2024

Earlier this year, AccessPay, the banking integration provider, has closed a $24 million strategic financing round to boost its U.S. expansion plans and enhance its research and development efforts in fraud and error prevention.

In this week’s profile we talk to Anish KapoorCEO of AccessPay, learn more about these plans and his career path, which spans technology, finance and consulting.

Anish Kapoor, CEO of AccessPay

Tell us more about your company and its purpose

Over the past few decades, private banking has seen a huge shift towards digitalisation and customer centricity. But the same is not true for corporate and institutional banking. As a former CFO, I knew how complicated it could be, with financial managers and treasurers relying on large teams to handle manual, repetitive tasks like sending payment instructions or retrieving bank statements.

We created AccessPay to bring greater transparency, security and ease of use to banking through automation. Our banking integration solution connects back-office systems directly to banks. This has truly unlocked the promise of financial digital transformation for our customers: AccessPay serves as a secure and efficient data transformation layer and enables our customers to scale their financial operations.

What are some of your recent accomplishments that you would like to highlight?

Some recent highlights are our expansion from the UK to the US through our partnership with Wise. We have also made great strides in the development of our product offering with the addition of our fraud and error prevention suite, a range of features to help customers reduce risks in their payment transactions, particularly against financial fraud.

And in March of this year we closed a $24 million strategic financing round, led by our veteran investor Real businesses. Looking forward, we will focus on driving profitable growth and providing further enhancements to our product, particularly around fraud and error prevention and banking APIs.

How did you get into the fintech industry?

By mistake, if I’m honest. After earning a bachelor’s degree in computer science and accounting from University of Manchester in 1993 I embarked on the proven path of accounting, specializing in the auditing of IT systems. Looking back, I don’t think I realized how closely aligned the worlds of computing and finance would become. However, I had a pretty good idea that once I qualified as an accountant, I would start a tech company with a couple of friends. Using this magical new technology called the Internet, we developed the first retail outlet in the UK. Unfortunately, at that time, the Internet was not yet sophisticated enough to handle our proposal.

In 1997, at just 22 years old, three friends and I took matters into our own hands and built a sufficiently resilient infrastructure through a new company called Telecity. Three years later I was one of the youngest directors on the FTSE 250 and led Telecity to a successful IPO, global expansion and the title of Europe’s largest listed data center operator. After Telecity, I reignited my entrepreneurial pursuits, focusing on VC-backed technology ventures and leading various SaaS businesses before joining AccessPay as a consultant. I took on the role of CEO in 2014.

What’s the best thing about working in fintech?

I think the best thing is the profound impact we can have on the modernization of financial systems around the world. The industry’s ability to blend finance with cutting-edge technologies does more than simply improve operational efficiency; democratizes access to financial services better than anything or anyone has ever done. Every day we help create solutions that simplify complex processes, reduce costs and increase transparency, helping businesses of all sizes thrive.

The pace of innovation in fintech and the constant drive for improvement is also incredibly exciting. Being at the forefront of the technological transformation of the financial world, we are uniquely positioned to address real-world problems with tangible, innovative solutions that improve the way businesses interact with their finances. Leading a company like AccessPay in this landscape, where our work directly contributes to the evolution of global financial ecosystems and enhances the strategic capabilities of our clients, is very rewarding.

What frustrates you most about the fintech industry?

Navigating the regulatory landscape is certainly one of the most challenging aspects of the sector. It can be frustrating how often the pace of regulatory changes fails to keep pace with technological innovation.
The gap created by this discrepancy means that new technologies or new business models must wait for clear guidelines. There are delays that can stifle innovation and impact our ability to quickly deliver solutions that improve financial operations for our customers. When taking into account the fragmented nature of regulations in different regions, global expansion becomes even more complex and cumbersome.

How have your previous roles influenced your career?

Undoubtedly this is so. My experience trying to grow a point-of-sale company based on rudimentary technology has taught me that if a technology is inefficient or doesn’t even exist, it may be up to you to fix the problem. That’s exactly what we did with Telecity, and the company’s subsequent successes speak for themselves.

In helping other fledgling businesses get off the ground, I have also become acutely aware of the critical importance of having a company staffed with exceptionally talented staff. Plus, talent who shares a commitment to providing customers with solutions that have a measurable impact on their ability to grow their business.

What’s the best mistake you’ve ever made?

It’s hard to answer this question, but I would probably say that focusing too much on specific technology solutions rather than broader customer needs in the early part of my career was a good mistake.

This initial narrow view inadvertently taught me that flexibility and adaptation in fintech were, and continue to be, as important as developing specific solutions. It was a realization that pushed me to broaden AccessPay’s approach to problem solving and focus more on the versatility of our services.

You could say it has helped shape our strategy to be more customer-centric and prioritize meaningful, tailored solutions that truly address our customers’ diverse challenges.

What does the future have in store for your company?

With this latest round of capital, the future has a lot in store. As previously mentioned, the financing will be instrumental in focusing our attention on profitable growth and strengthening our commitment to grow revenues sustainably.

Our focus on research and development will also enable us to expand the platform’s capabilities in preventing fraud and errors, automating statement data and reconciliation, and transforming ISO 20022 data. As these various commitments and initiatives come together, we hope to see a much more visible AccessPay presence in the US and Europe.

What are the next key talking points or challenges for your industry as a whole?

APP-related fraud remains high on the agenda. For PSPs, a key challenge will be the implementation of the new refund requirements imposed by the Payment Systems Regulatory Authority. The requirements will force PSPs to refund individuals, charities and micro-businesses within five business days of a fraudulent transaction made using Faster Payments.

The clock can be stopped, but only if there is a legitimate need to gather further information. Since most companies will not be protected by the new rules, they will have to implement security measures, such as beneficiary confirmation and more robust controls over payment authorizations.

The lack of action by companies to prepare for the adoption of the ISO 20022 messaging format is another persistent challenge. However, payment systems around the world are upgrading their infrastructure to move to the new format, including the Bank of England’s CHAPS, which upgraded its real-time gross settlement system in 2023.

From November 2024, the Bank of England will mandate the addition of payment purpose for all real estate transactions and is expected to extend to all CHAPS payments as well. It’s a development that’s likely to spark a lot of conversation in the weeks and months leading up to implementation.

Source

Fintech

US Agencies Request Information on Bank-Fintech Dealings

Published

6 months ago

30 July, 2024

FinCrypt Staff

Federal banking regulators have issued a statement reminding banks of the potential risks associated with third-party arrangements to provide bank deposit products and services.

The agencies support responsible innovation and banks that engage in these arrangements in a safe and fair manner and in compliance with applicable law. While these arrangements may offer benefits, supervisory experience has identified a number of safety and soundness, compliance, and consumer concerns with the management of these arrangements. The statement details potential risks and provides examples of effective risk management practices for these arrangements. Additionally, the statement reminds banks of existing legal requirements, guidance, and related resources and provides insights that the agencies have gained through their oversight. The statement does not establish new supervisory expectations.

Separately, the agencies requested additional information on a broad range of arrangements between banks and fintechs, including for deposit, payment, and lending products and services. The agencies are seeking input on the nature and implications of arrangements between banks and fintechs and effective risk management practices.

The agencies are considering whether to take additional steps to ensure that banks effectively manage the risks associated with these different types of arrangements.

SUBSCRIBE TO THE NEWSLETTER

And get exclusive articles on the stock markets

Source

Fintech

What changes in financial regulation have impacted the development of financial technology?

Published

6 months ago

30 July, 2024

FinCrypt Staff

Exploring the complex landscape of global financial regulation, we gather insights from leading fintech leaders, including CEOs and finance experts. From the game-changing impact of PSD2 to the significant role of GDPR in data security, explore the four key regulatory changes that have reshaped fintech development, answering the question: “What changes in financial regulation have impacted fintech development?”

PSD2 revolutionizes access to financial technology
GDPR Improves Fintech Data Privacy
Regulatory Sandboxes Drive Fintech Innovation
GDPR Impacts Fintech Data Security

PSD2 revolutionizes access to financial technology

When it comes to regulatory impact on fintech development, nothing comes close to PSD2. This EU regulation has created a new level playing field for market players of all sizes, from fintech startups to established banks. It has had a ripple effect on other markets around the world, inspiring similar regulatory frameworks and driving global innovation in fintech.

The Payment Services Directive (PSD2), the EU law in force since 2018, has revolutionized the fintech industry by requiring banks to provide third-party payment providers (TPPs) with access to payment services and customer account information via open APIs. This has democratized access to financial data, fostering the development of personalized financial instruments and seamless payment solutions. Advanced security measures such as Strong Customer Authentication (SCA) have increased consumer trust, pushing both fintech companies and traditional banks to innovate and collaborate more effectively, resulting in a dynamic and consumer-friendly financial ecosystem.

The impact of PSD2 has extended beyond the EU, inspiring similar regulations around the world. Countries such as the UK, Australia and Canada have launched their own open banking initiatives, spurred by the benefits seen in the EU. PSD2 has highlighted the benefits of open banking, also prompting US financial institutions and fintech companies to explore similar initiatives voluntarily.

This has led to a global wave of fintech innovation, with financial institutions and fintech companies offering more integrated, personalized and secure services. The EU’s leadership in open banking through PSD2 has set a global standard, promoting regulatory harmonization and fostering an interconnected and innovative global financial ecosystem.

Looking ahead, the EU’s PSD3 proposals and Financial Data Access (FIDA) regulations promise to further advance open banking. PSD3 aims to refine and build on PSD2, with a focus on improving transaction security, fraud prevention, and integration between banks and TPPs. FIDA will expand data sharing beyond payment accounts to include areas such as insurance and investments, paving the way for more comprehensive financial products and services.

These developments are set to further enhance connectivity, efficiency and innovation in financial services, cementing open banking as a key component of the global financial infrastructure.

Sebastian Malczyk

General Manager, Technology and Product Consultant Fintech, Insurtech, Miquido

GDPR Improves Fintech Data Privacy

Privacy and data protection have been taken to another level by the General Data Protection Regulation (GDPR), forcing fintech companies to tighten their data management. In compliance with the GDPR, organizations must ensure that personal data is processed fairly, transparently, and securely.

This has led to increased innovation in fintech towards technologies such as encryption and anonymization for data protection. GDPR was described as a top priority in the data protection strategies of 92% of US-based companies surveyed by PwC.

Arid Islam

Financial Expert, Sterlinx Global

Regulatory Sandboxes Drive Fintech Innovation

Since the UK’s Financial Conduct Authority (FCA) pioneered sandbox regulatory frameworks in 2016 to enable fintech startups to explore new products and services, similar frameworks have been introduced in other countries.

This has reduced the “crippling effect on innovation” caused by a “one size fits all” regulatory approach, which would also require machines to be built to complete regulatory compliance before any testing. Successful applications within sandboxes give regulators the confidence to move forward and address gaps in laws, regulations, or supervisory approaches. This has led to widespread adoption of new technologies and business models and helped channel private sector dynamism, while keeping consumers protected and imposing appropriate regulatory requirements.

George Blandford

Co-founder, UK Linkology

GDPR Impacts Fintech Data Security

A big change in financial regulations that has had a real impact on fintech is the 2018 EU General Data Protection Regulation (GDPR). I have seen how GDPR has pushed us to focus more on user privacy and data security.

GDPR means we have to handle personal data much more carefully. At Leverage, we have had to step up our game to meet these new rules. We have improved our data encryption and started doing regular security audits. It was a little tricky at first, but it has made our systems much more secure.

For example, we’ve added features that give users more control over their data, like simple consent tools and clear privacy notices. These changes have helped us comply with GDPR and made our customers feel more confident in how we handle their information.

I believe that GDPR has made fintech companies, including us at Leverage, more transparent and secure. It has helped build trust with our users, showing them that we take data protection seriously.

Dr. Rhett Stubbendeck

CEO & Co-Founder, Leverage Planning

Source

Fintech

M2P Fintech About to Raise $80M

Published

6 months ago

30 July, 2024

FinCrypt Staff

Application Programming Interface (API) Infrastructure Platform M2P Financial Technology has reached the final round to raise $80 million, at a valuation of $900 million.

Specifically, M2P Fintech, formerly known as Yap, is closing a new funding round involving new and existing investors, according to entrackr.com. The India-based company, which last raised funding two and a half years ago, previously secured $56 million in a round led by Insight Partners, earning a post-money valuation of $650 million.

A source indicated that M2P Fintech is ready to raise $80 million in this new funding round, led by a new investor. Existing backers, including Insight Partners, are also expected to participate. The new funding is expected to go toward enhancing the company’s technology infrastructure and driving growth in domestic and international markets.

What does M2P Fintech do?

M2P Fintech’s API platform enables businesses to provide branded financial services through partnerships with fintech companies while maintaining regulatory compliance. In addition to its operations in India, the company is active in Nepal, UAE, Australia, New Zealand, Philippines, Bahrain, Egypt, and many other countries.

Another source revealed that M2P Fintech’s valuation in this funding round is expected to be between USD 880 million and USD 900 million (post-money). The company has reportedly received a term sheet and the deal is expected to be publicly announced soon. The Tiger Global-backed company has acquired six companies to date, including Goals101, Syntizen, and BSG ITSOFT, to enhance its service offerings.

According to TheKredible, Beenext is the company’s largest shareholder with over 13% ownership, while the co-founders collectively own 34% of the company. Although M2P Fintech has yet to release its FY24 financials, it has reported a significant increase in operating revenue. However, this growth has also been accompanied by a substantial increase in losses.

Source

Fintech

Scottish financial technology firm Aveni secures £11m to expand AI offering

Published

6 months ago

30 July, 2024

FinCrypt Staff

Aveni, Investment Management, AI, NLP, UK

By Gloria Methri

Today

To come
Aveni Assistance
Aveni Detection

Artificial intelligence Financial Technology Aveni has announced one of the largest Series A investments in a Scottish company this year, amounting to £11 million. The investment is led by Puma Private Equity with participation from Par Equity, Lloyds Banking Group and Nationwide.

Aveni combines AI expertise with extensive financial services experience to create large language models (LLMs) and AI products designed specifically for the financial services industry. It is trusted by some of the UK’s leading financial services firms. It has seen significant business growth over the past two years through its conformity and productivity solutions, Aveni Detect and Aveni Assist.

This investment will enable Aveni to build on the success of its existing products, further consolidate its presence in the sector and introduce advanced technologies through FinLLM, a large-scale language model specifically for financial services.

FinLLM is being developed in partnership with new investors Lloyds Banking Group and Nationwide. It is a large, industry-aligned language model that aims to set the standard for transparent, responsible and ethical adoption of generative AI in UK financial services.

Following the investment, the team developing the FinLLM will be based at the Edinburgh Futures Institute, in a state-of-the-art facility.

Joseph Twigg, CEO of Aveniexplained, “The financial services industry doesn’t need AI models that can quote Shakespeare; it needs AI models that deliver transparency, trust, and most importantly, fairness. The way to achieve this is to develop small, highly tuned language models, trained on financial services data, and reviewed by financial services experts for specific financial services use cases. Generative AI is the most significant technological evolution of our generation, and we are in the early stages of adoption. This represents a significant opportunity for Aveni and our partners. The goal with FinLLM is to set a new standard for the controlled, responsible, and ethical adoption of generative AI, outperforming all other generic models in our select financial services use cases.”