Category: Insights

Learn how B4B Payments provides smart and flexible payment processing solutions, which enable any size organisation to manage expenses, simplify payroll and offer employee rewards and incentives.

Categories
Company News Insights Newsroom

B4B Payments Shortlisted as a Finalist in Six Categories at The Card & Payments Awards 2025 for Exceptional Service and Innovation

At B4B Payments, our mission is to empower businesses with solutions that don’t just meet today’s needs but also scale with them for tomorrow. As a finalist in six categories at the Card & Payments Awards 2025, we are recognised for our achievements across different aspects of financial services, from customer service and product design to financial inclusion. This recognition highlights how our tailored payment solutions enable businesses across sectors to operate more efficiently, build lasting customer relationships, and innovate faster. Here’s a closer look at how B4B Payments drive real-world impact in the Financial Ecosystem.

Scaling Customer Success Through Exceptional Service

Our commitment to outstanding customer service isn’t just about responding to queries but building strong, scalable partnerships. We focus on understanding each client’s unique needs and providing proactive solutions that grow with their business. By offering personalised support, we ensure that every interaction adds value and fosters long-term success, making our partnerships more effective and enduring.

“We haven’t found another provider in the industry that supports us in developing the services we need quite like B4B Payments. What sets them apart is their approach—it’s not just an off-the-shelf solution. They genuinely listen to our needs and adapt their services and systems accordingly, which no other provider has been able to offer. We trust their judgement, and they’ve been instrumental in helping us grow our business.” said Alistair Crombie, Founder & Managing Director of One Research.

Enhancing Business Flexibility with Scalable Prepaid Solutions

Our prepaid products transform how businesses manage expenses, payroll, and rewards programs. These solutions enable companies to issue prepaid cards to employees, contractors, or customers, providing a seamless, cashless payment experience. Designed with flexibility in mind, our prepaid solutions quickly scale to meet the evolving needs of businesses as they grow or enter new markets. This adaptability has positioned B4B Payments as the go-to choice for companies seeking greater control and convenience in their payment operations.

Prioritising Design for Better User Experience and Increased Adoption

Good design is more than aesthetics; it’s about creating a user-friendly experience that increases adoption rates and improves overall customer satisfaction. Our product design focuses on intuitive functionality, allowing users to easily navigate and use our payment solutions. This design-first approach helps our client’s employees and customers interact seamlessly with our products, ultimately driving higher engagement and adoption as their operations expand. We ensure a seamless user experience while addressing the organisation’s unique needs by implementing features that provide precise control and flexibility

Enabling Seamless Operations with Integrated Technology

Businesses thrive when their operations run smoothly, and our technology integration capabilities ensure that. By incorporating advanced technology like API-driven integrations and real-time tracking, our payment solutions allow businesses to connect our tools with their existing systems effortlessly. This seamless integration saves time, reduces administrative overhead, and enables enterprises to scale their operations with minimal disruption. With B4B Payments, companies can expand without the complexities of reconfiguring or replacing their payment systems.

Explore more about our platform’s advanced capabilities here.

Engaging Audiences Through Strategic Marketing

Effective marketing is more than just visibility—creating lasting connections and driving meaningful engagement. We understand the power of a well-executed campaign to amplify our vision and strengthen relationships with clients, partners, and stakeholders. 

Our recognition at the Card & Payments Awards 2025 underscores the success of our campaign in achieving significant milestones, from expanding our digital reach to fostering deep engagement across diverse audiences. Focusing on organic strategies, we demonstrated how a thoughtful marketing approach can generate tangible outcomes, including lead generation, meaningful conversions, and heightened brand presence.

Through initiatives like these, B4B Payments remains committed to advancing industry standards in marketing, effectively connecting with audiences, and empowering businesses to achieve their goals.

Partner with B4B Payments to Achieve Scalable Business Success

Financial inclusion is at the heart of many businesses’ missions, especially those seeking to serve diverse customer bases. Our commitment to inclusion is reflected in solutions accessible to underbanked populations and adaptable to various financial needs. 

Our recognition at the Card & Payments Awards 2025 highlights our solutions’ influential role in enabling businesses to scale efficiently, innovate confidently, and expand their customer base like never before. As we continue to drive advancements in payment technology, we remain focused on creating value and empowering businesses to achieve their goals.

Discover how B4B Payments can help scale your business with solutions designed for growth. Contact us to learn more.

Categories
Company News Insights Newsroom

The Future of Business Travel in 2025: Innovations Shaping the Future of Travel.

Focus on travel trends and how B4B Payments expense management tools help minimise risks and control expenditures for tour operators and business travellers alike.

Here at B4B Payments we’re interested in the travel industry because our clients are interested in travelling. On a macro scale, 2024 has shown a continued bounce back in travel since the pandemic though at a decelerating rate as spend reverts back to the mean, a study by UN Tourism Barometer.

For example, London Heathrow shows a healthy 6% growth Jan-Nov 2024 over the same period in 2023, a total of 76.8M passenger movements. However, the same statistic for 2023 over 2022 was 30%.

A 6% growth in 2024 indicates that travel demand remains healthy but is stabilising rather than experiencing dramatic spikes. Original source

Continued growth will now depend more on product, price and innovation whilst still being subject to exogenous events such as conflicts or economic performance as well as a growing movement towards sustainability. 

Our clients can be divided into two when it comes to travel:

Firstly, those clients who are directly involved in the travel business themselves. 

Secondly – and more broadly – the day to day expenses of our business clients as they travel to see their own customers, colleagues and attend conferences. 

Let’s take the first group – direct travel clients.

We have a large – and increasing – portfolio of tour operators who use our payments services. The focus here tends to be on supporting group travel and our cards are perfect for tour directors to meet the on-the-road expenses involved with shepherding customers from one location to another.

Primarily our businesses have concentrated on the European market where tourists from the US and elsewhere want to hit the highlights of Europe; London, Paris, and the Southern Med for example.

Young woman with wheeled luggage walking at the airport and texting

Take Expat Explore who offer a multitude of tours to take in the sights of Europe. Customers get an experience of different cities, countries and cultures in a concentrated period of time. Our cards are used on the tours to help Expat minimise risk, control expenditure and make sure the right funds hit the right card at the correct time. 

But what we’ve noticed at B4B is an increasing shift from our travel clients towards more far flung destinations over the last couple of seasons. Japan’s hot right now, as is Vietnam, Korea and Australia. It seems travellers since the pandemic – moving away from revenge travel – have decided to value new experiences highly by travelling out of region. 

Business travel spend – i.e. spending by companies travelling to meet clients and attend conferences – is a more difficult trend to isolate and project into 2025. This is where economic sentiment and technology advances meet head to head.

Firstly, the economic environment. It’s well known that meeting clients and prospective clients is a good business strategy, a report by BSS Commerce. It increases sales and allows more interaction, formal and informal, with clients for the benefit of both. However, in an uncertain economic environment, the continual wrestling match between sales/marketing and finance really comes to a head. Travel and entertainment is a discretionary budget and is often the first item to be squeezed should the economy take a turn for the worse. 

Caucasian male traveler exploring Tokyo at night with the assistance of a smart phone for navigation.

Secondly, one lesson of COVID is that companies can conduct meetings online via Zoom, Teams, Google Meet etc. Ally this to a larger focus on corporates reducing their environmental imprint and potentially we have a nexus where the expedient meets the virtuous. A great deal will depend on the global economic outlook report by Mastercard– in the next 12 months which is uncertain, but is predicted to be similar to 2024.

Conclusion

Whether an industry professional or a company traveller, a decent expense management system helps manage costs, mitigate risks and understand spending patterns. At B4B, we have a long history of helping clients manage their expenses, helping them to maximise resources to focus on their primary business. 

But nothing stands still and, in 2025, B4B will be further investing in our expense management capabilities so our clients can continue to take advantage of our experience and services. There will be an aggressive roll out schedule across the year. We will be in touch but if you wish to understand our future developments – or wish to contribute ideas – please contact your account manager.

Tim Robson

Director of Accounts and Partnerships, Dec 2024

Categories
Company News Insights Newsroom

B4B Payments Win Best Bank & FinTech Partnership Award at the Banking Tech Awards 2024

We are thrilled to share that B4B Payments has won the prestigious ‘Best Bank & FinTech Partnership’ award at the Banking Tech Awards 2024, hosted by FinTech Futures! This recognition celebrates the incredible collaboration between B4B Payments and our sister company, Banking Circle, as we continue to redefine innovation and excellence in the payments industry.

Addressing Key Pain Points in Financial Services.

By merging the agility of fintech with the stability of traditional banking, we’ve developed Banking-as-a-Service (BaaS) solutions that:

Simplify payments and eliminate inefficiencies in legacy banking systems.

Enable instant payouts to reduce delays and improve operational efficiency.

Offer compliance-ready tools that address increasing regulatory demands.

With operations spanning the UK, EU, and global markets, our scalable solutions empower businesses to operate confidently and efficiently in an ever-evolving financial ecosystem.

How B4B Payments is Redefining Collaboration in Fintech

In partnership with One Money Way, we provide small and emerging businesses (SEMs) with cost-effective financial tools, bridging the gap for those underserved by traditional banking. Our tailored Banking-as-a-Service (BaaS) model offers SEMs access to affordable banking infrastructure, helping them streamline operations and scale their businesses globally.

Streamlining Insurance Operations- Our collaboration with IMG revolutionised insurance fund disbursement processes. By leveraging B4B Payments’ prepaid solutions, IMG simplified claims management, enabling instant payouts and eliminating delays often experienced with legacy systems. This innovation has enhanced customer satisfaction and operational efficiency, addressing a critical pain point in the insurance sector.

Driving Efficiency in Marine and Entertainment Industries- Our Banking-as-a-Service (BaaS) model has demonstrated how seamless payment solutions can transform niche industries. By integrating our payment infrastructure, Voly ensures that complex transactions in marine and entertainment sectors—such as crew wages and vendor payments—are managed with ease, speed, and precision.

Leading the Way in Digital Payment Innovation

Businesses today demand payment solutions that are both robust and adaptable. B4B Payments offers an end-to-end digital payment platform that delivers:

  • Multi-currency support for global operations.
  • Real-time tracking for better financial control.
  • Customisable solutions tailored to business needs.

Our commitment to innovation ensures businesses stay competitive by leveraging cutting-edge technology for seamless financial management.

Looking Forward: Celebrating Achievements and Building on Success

This award highlights the strength of our partnerships and the value of collaboration across fintech and banking. Together with Banking Circle, we’ve developed scalable, compliant, and forward-thinking solutions that address real-world business challenges. From multi-currency support to instant payouts and robust compliance frameworks, B4B Payments is reshaping the fintech landscape one solution at a time.

We extend our heartfelt gratitude to our teams, partners, and clients for their trust and collaboration. This win is a milestone in our journey, but it’s also a reminder of the work ahead. Our mission remains steadfast—to empower businesses worldwide through innovation, collaboration, and dedication.

As we celebrate this incredible achievement, we look forward to continuing to solve Payments pain points, drive transformation, and deliver value to the financial services industry. Together, we’re building the future of payments.


Categories
Company News Insights Newsroom

B4B Payments Wins the International Payments Excellence Award at the Payments Awards 2024

We are thrilled to announce that B4B Payments has received the International Payments Excellence Award at the prestigious Payments Awards by FStech 2024. This accolade underscores our commitment to delivering innovative and impactful payment solutions globally.

Our innovative payment solutions are designed to meet businesses’ needs and help them thrive in their respective industries. Fintech companies face complex challenges of cross-border payments, regulatory compliance, and scalability; we provide tailored solutions that address these pain points directly. By understanding our clients’ unique challenges in the global marketplace, we enable them to streamline their operations, scale efficiently, and deliver exceptional value to their customers.

Our commitment to creating impactful partnerships has allowed us to solve complex problems across different sectors. Notable collaborations include:

  • AVEA LA POSTE: By integrating our international payment services, this French association offering summer camps for children and teenagers has streamlined its processes, enabling efficient reservations and bookings abroad.

ICP Transaction Solutions GmbH: Partnering with us, ICP introduced personalised, geographically restricted payout cards, providing tax-free non-cash benefits to employees and boosting local markets.

These partnerships exemplify our dedication to enhancing operational efficiency and employee satisfaction across diverse industries and showcase how our solutions are uniquely positioned to solve the pain points faced by fintech businesses when navigating international payments and local compliance challenges.

The Payments Awards ceremony by FStech was remarkable, celebrating excellence in the payments sector. We extend our heartfelt gratitude to our dedicated team and valued clients for their trust and collaboration. This award fuels our enthusiasm to innovate and deliver exceptional payment solutions worldwide.

Thank you for being part of our journey. We look forward to achieving even greater heights together in the coming years.


Categories
Company News Newsroom Payroll & Payouts

Empowering Disaster Recovery: Fintech Solutions for Efficient Aid Distribution

By Marchelle Becher, US Business Development Executive

Millions of people are impacted by natural disasters each year, facing financial challenges such as damage to homes, the need for temporary shelter, and the replacement of personal items and food. Increasingly, fintech solutions are becoming essential in addressing these urgent needs efficiently and effectively.

Over the past five years, the US has experienced an average of $18 billion annually in natural disaster-related damages. With increasingly extreme weather patterns, this trend is expected to worsen. In the first half of 2024 alone, the US has already experienced 11 confirmed weather/climate disaster events with losses exceeding $1 billion each, well ahead of the expected 5-year average.

Having attended several conferences dedicated to disaster aid and preparedness, it’s clear that private and public organizations are actively seeking viable solutions. Companies like B4B Payments are crucial in providing financial aid distribution and ongoing support for those affected by disasters, especially regarding financial inclusion.

Addressing Financial Vulnerability and Inclusion

Low-income households are disproportionately affected by disasters. Many do not qualify for disaster loans, and grants often fall short. Delays in relief efforts compound their financial vulnerability. However, changes are taking place to improve support for those impacted by these life-changing events.

The Federal Emergency Management Agency (FEMA) overhauled its aid distribution methods earlier this year. One fundamental change, made effective March 22, addresses disaster victims’ economic challenges. FEMA’s Displacement Assistance program now provides money for shelter not only to those who had to leave their homes but also to those who were already homeless. As FEMA stated, this change is a “more equitable and efficient” approach, overcoming the challenge and addressing the disparity of helping only those who can pay their hotel bills upfront.

Additionally, FEMA has created the Serious Need Assistance program, providing $750 to individuals for severe or immediate needs such as water, food, first aid, infant formula, diapers, personal hygiene items, or fuel for transportation. This payment is in addition to aid for home repairs and other disaster-related needs.

In 2023, the United States experienced 28 separate weather or climate disasters that each resulted in at least $1 billion in damages. NOAA map by NCEI.

The Urgent Need for Preparedness Funds

With improved fund issuance, private and public agencies are stepping up efforts to work with companies like B4B Payments on “Preparedness Funds”—pre-arranged financial resources and distribution solutions that can be quickly activated in the event of a disaster. The “Preparedness Funds” approach improves financial inclusion, reduces the time needed to distribute funds, and eliminates the potential for theft and fraud with the self-service platform.

Supporting disaster preparedness and relief to ensure funds reach those in need is a critical focus for B4B Payments. Financial technology companies can simplify and expedite relief payments, ensuring a smooth customer experience and efficient distribution of funds, especially compared to manual or paper-based methods.

B4B Payments’ Comprehensive Solution

We offer a seamless prepaid card payout solution that considers the entire ecosystem, from funders to survivors, ensuring secure and efficient fund distribution. With our self-managed, instant issue platform, organizations and agencies can send physical and virtual prepaid cards to those in need, allowing for quick fund distribution while achieving full transparency, reporting capabilities, security, and guaranteed regulatory compliance.

Key benefits of working with B4B Payments include:

  • Instant issuing and delivery with activation timing control and funding flexibility, allowing agencies to choose when to activate cards, reload, and options to send either physical or virtual cards.
  • Secure, self-service platform offering full management and program control with the ability to set hierarchy-based access.
  • Real-time reporting capabilities to monitor programs, identify trends, and develop valuable insights, easing analysis access data within a specific time-period view transaction volume, merchant category spend, and ATM usage.
  • A simple mobile interface enables recipients to block their cards if they are lost or stolen and access accurate, real-time account information.

By leveraging our global payment solutions, our partners can better prepare for and respond to disasters, ultimately building stronger, more resilient communities.

B4B Payments’ Comprehensive Solution

B4B Payments is a proud member of Payments as a Lifeline (PaaL), and we are committed to transforming disaster relief efforts through innovative financial solutions. If your agency wants to improve its aid distribution methods and ensure rapid, secure, and transparent fund disbursement, we invite you to partner with us. Together, we can significantly impact the lives of those affected by natural disasters.


Visit our Disaster/Humanitarian Information Page for more information.



Categories
Company News Expense Management Newsroom Payroll & Payouts

Mastering Payment Management for Corporate Events: Simplified Solutions

By Susie Shyatt, US Business Development Executive

When it comes to corporate events, efficient financial management is critical. Whether you’re organizing a corporate retreat, an industry conference, or a large-scale public event, managing expenses smoothly and transparently is essential. Corporate-funded prepaid cards are transforming how companies handle event payments, making the process easier and more efficient.

The Pain Points of Traditional Payment Methods

The reality is that traditional payment methods like checks, ACH transfers, cash, and vouchers are riddled with challenges. Checks are costly, not just in terms of fees but also the time and resources required to process them. Someone has to be on-site to issue a check, and the recipient must have a bank account to access the funds.

ACH transfers, while more modern, still fall short. They’re slow, expensive, and offer no way to retract funds once they’re sent. Cash, on the other hand, brings its own headaches: manual handling, the risk of loss or theft, and high distribution fees.

Vouchers might sometimes work, but they’re limited in where they can be used and are often difficult to track. Issuing vouchers is usually a manual process, adding another layer of complexity to an already cumbersome system.

A Modern and Simple Solution

Corporate-funded prepaid cards offer a straightforward, effective solution to these issues. With these cards, you can load funds quickly and make them instantly available, simplifying the entire process of paying staff, covering event expenses, and distributing funds to attendees.

For example, when paying event crews or gig workers, self-issuing cards ensure that payments are secure and timely, eliminating the need for checks or cash. Managing expenses is equally simple. Staff can use the cards for rentals, deposits, transportation, per diems—whatever the event demands. And because every transaction is centrally recorded, budgeting for future events becomes much more manageable.

Attendees, such as members of President’s Clubs, can also benefit. They can receive cards to manage their own expenses without the limitations of traditional payment methods.

B4B Payments’ prepaid cards enable instant payouts, with funds immediately available. The platform is user-friendly, allowing you to manage all cards from a single dashboard, with features like freezing and reissuing lost or stolen cards. This doesn’t just save time; it provides peace of mind.

Additionally, these cards are inclusive, providing funds to underbanked or unbanked individuals and ensuring that everyone involved in your event is taken care of. Reloadable cards make recurring payments seamless, letting users meet their needs without disruption.

For companies with a global reach, our cards can be issued in multiple currencies, eliminating foreign exchange fees by transacting in local currencies. This global flexibility ensures your events run smoothly, no matter where they’re held.

Tailored Solutions for Key Stakeholders

Our solution isn’t one-size-fits-all; it’s designed to meet the needs of all organizational roles involved in event management:

  • Event Operations: Simplify logistics and vendor coordination.
  • Finance: Streamline payments and budgeting while ensuring financial transparency.
  • Human Resources: Ensure smooth, timely payouts to employees and staff.

By adopting corporate-funded prepaid cards, you’re not just simplifying your event management process—you’re cutting costs and enhancing financial transparency. Our solution directly addresses the pain points of traditional payment methods, providing a modern, efficient alternative tailored to the needs of today’s corporate finance leaders.


Categories
Company News Insights Newsroom

A Night of Growth and Innovation: Highlights from B4B Payments’ 3rd Annual Client Forum

On 11 September 2024, B4B Payments hosted its 3rd Annual Client Forum at the prestigious One Moorgate Place Club in London. The event brought together clients, partners, and industry leaders for an evening filled with insightful presentations, product updates, and networking opportunities. This year’s forum was not just a celebration of B4B Payments’ achievements but also an exploration of the future of payment solutions and financial technology, highlighting developments such as Fusion Metal Cards and tailored financial solutions for the entertainment industry.

Business & Product Updates: A Glimpse into the Future

The evening kicked off with a compelling presentation by Account Director Tim Robson, who shared B4B Payments’ remarkable growth in 2024. Tim emphasised the importance of partnerships in driving B4B Payments’ success. He discussed how the travel sector remains a key growth area and shared insights into plans for expanding into new markets and verticals.
Tim’s presentation set the tone for the evening, underscoring B4B Payments’ commitment to continuous innovation and its dedication to meeting the evolving needs of clients and partners. The audience got a glimpse of the new developments on the horizon, indicating a promising year ahead for the company and its stakeholders.

Pioneering Payment Solutions with Thames Technology

Sustainability is a key driver for B4B. One of the standout moments of the forum was the engaging session by Andrew Toon, Head of Retail at Thames Technology. Andrew outlined the latest advancements in payment card technology, specifically focusing on sustainability within the card industry as well as highlighting the benefits of Fusion Metal Cards and Biometric Cards. These innovative cards represent a leap forward in card solutions, offering a blend of enhanced security, durability, and aesthetic appeal, making them an ideal choice for businesses looking to elevate their card experience.
Andrew’s presentation showcased how Thames Technology is at the forefront of transforming the card payment experience. The Biometric Cards not only enhance security features but also add a touch of sophistication to everyday transactions. This aligns perfectly with the future-forward ethos of B4B Payments, which is committed to offering cutting-edge payment features that cater to the evolving needs of clients. For businesses exploring premium payment options, the advantages of Biometric Cards were highlighted as a key differentiator in the market.

Inspiring Journeys: Stories from OneMoneyWay and Voly Entertainment

The forum featured inspiring guest speakers who shared their unique insights and visions for the future of payments. One speaker highlighted the challenges many businesses face with traditional banking models and explored how innovative solutions tailored for the SME sector are addressing these obstacles. Another speaker looked at how financial management is evolving in the entertainment industry, emphasising the importance of tailored payment platforms to support the complex financial operations of artists and professionals. The discussion underscored the critical role of flexible and dynamic payment solutions in empowering industries with specialised needs, paving the way for a more inclusive and innovative financial landscape.

Networking and Collaboration: New Ideas and Partnerships

Beyond the presentations, the Client Forum provided an atmosphere for attendees to connect, exchange ideas, and discuss the wider payments environment. Clients and partners talked about trends in the payment industry, whilst sharing ideas and feedback with the B4B team in a relaxed environment.
The forum not only provided a platform for showcasing new products but also acted as a catalyst for fostering partnerships that have the potential to drive industry-wide advancements. Discussions around cross-border payment challenges and the benefits of advanced payment card technology along with real-life stories about the many usages of B4B, sparked interest among attendees, opening up avenues for further partnerships and growth.

A Step Towards the Future

The 3rd Annual Client Forum was a testament to B4B Payments’ dedication to innovation, client success, and industry leadership. The evening encapsulated the spirit of progress and collaboration, from insightful business updates and pioneering product showcases to inspiring stories from industry leaders. As B4B Payments looks ahead to 2025, it does so from a strong foundation of growth, a commitment to excellence, and a community of partners and clients eager to embrace the future of payments. The forum highlighted B4B Payment’s role in shaping the future of payment solutions, offering innovative financial solutions across multiple verticals. Want to learn more about how B4B Payments are revolutionising the payment industry? Stay updated with our latest innovations and see how we can help your business navigate the future of payments, visit. 


Categories
BaaS BIN Sponsorship Company News Insights Newsroom pr

The Nordic Opportunity for Fintechs

The Nordic banking industry is one of the world’s most technologically advanced, secure, and reliable.  

With high levels of digital adoption among consumers, coupled with comparatively high disposable income, it presents a potentially lucrative opportunity for fintechs looking for growth.  

In this blog post, we’ll explain what makes it unique and how you can capitalise on the opportunity.

The Nordic Banking Landscape 

The Nordic banking industry is one of the best in the world, headlined by Nordic giants such as Nordea Bank, SEB, and Swedbank. The combination of profitability, efficiency and risk management makes for some impressive reading, as shown below. 

Major Nordic bank results for Q4 2022, Deloitte. 

Within such a fertile environment, the future of the fintech landscape also looks excellent. For example, the number of people using digital payments is expected to rise to over 27 million by 2028, which is the entirety of the Nordic population. 

The players within the fintech startup ecosystem also have a high trust culture of sharing information, which is crucial for the rapid development of the industry. 

Mobile banking 

The Nordic region has high adoption rates when it comes to making mobile payments. The region as a whole has some of the lowest rates of cash usage globally. 


Sweden
Norway
Finland
Denmark 
Percentage of people who never use cash48%40%10% (rapidly increasing) 27% 

Nexi Group, 2023

Consumers are embracing mobile payments, with the Nordic region as a whole reaching adoption rates ranging between 83%-94%, 10%-15% higher than the European average. 

This is partly due to some incumbent banks, such as DNB, launching their own payment platform, Vipps, which has a penetration rate in the Nordics of over 75%. Another example is Mobile, from the central Nordic bank DNB, which has a market penetration of 93% in Norway. 

Sustainability

Nordic fintechs have been set to remain at the forefront of sustainable financial development. 

They’ve been exceptional at balancing the need for financial performance with environmental responsibility.  Those impressive numbers at the beginning of this blog post were achieved whilst being proactive about financial products such as carbon offset platforms and sustainable investment tools. 

A semi-recent example of this is Doconomy’s acquisition of Dreams Technology. 

Doconomy is a leading climate tech startup. It helps banks, brands, and consumers get insights about their spending habits and how they may affect the environment. This acquisition will enable banking customers to make more climate-conscious consumption decisions. 

Secure Payments

The Nordics’ robust banking regulations framework means that consumers have a high level of trust when it comes to using payment platforms. This supports the strong adoption rates, which are an excellent basis for new market entrants.

An example of this is the popularity of Sweden’s Trustly. Trustly is an open banking fintech that enables consumers to pay for products and services securely without sharing their bank details. This offers consumers valuable peace of mind as they don’t have to worry about their bank details being compromised when purchasing.

Partnerships and collaboration

In late 2023, Enable Banking, CRIF and Strands, three leaders in the Nordic fintech space, announced a partnership to bring Open Finance Solutions to the Nordic regions. 

The partnership will be pivotal to open banking APIs’ growth and connectivity to financial products such as loans, pensions, and credit facilities. Major banks, fintechs and other financial institutions will be able to collaborate by sharing data and delivering innovative products and services to consumers and businesses.

This is paving the way for new market entrants who may have missed the initial first-mover advantage at the start of the revolution started by PSD2.

Also, it makes up for the collapse of the hugely promising P27 initiative. This would have made cross-border transactions between the Nordic countries and their different currencies seamless. 

The opportunity

Fintechs have an opportunity to make essential inroads via innovators and early adopters of payment technology. 

There is less need to educate consumers about the benefits of payment tech. They already know it and have seen the benefits.  

The journey to market and profitability is being accelerated in the region. They’re a demanding population, but the rewards can be extensive if you meet their high standards. 

However, to access these rewards, fintechs must comply with some of the most robust banking regulations in the world, as it can be challenging to break into the Nordics via a banking licence. 

B4B Credentials

B4B enables fintechs to take advantage of lucrative opportunities. We do this via an infrastructure-based partnership with them. We provide back-end services so that they can serve their customers via card issuing or other financial products. 

Take one of our clients, Juni. We’ve been working with them since 2022 as their BIN sponsor. This was the engine behind their prepaid Mastercard card proposition and made it easy for businesses to keep track of their finances across multiple platforms. By partnering with B4B, they can ensure compliance, strengthen their presence in the UK, and enhance scalability. 

Samir El-Sabini, Co-founder and CEO of Juni, highlighted the benefits of partnering with B4B. 

“We have a long-standing partnership with B4B, primarily in the UK, that has enabled us to scale Juni and continue our fast-paced growth while, most importantly, giving our customers more value when using our platform. Through B4B, we’ve launched both new currencies and cards, and we’re looking forward to building out our offering in 2024.”

Conclusion

The Nordic region is a hotbed for fintechs to expand their presence. Partnering with B4B can make that process a smooth, stress-free experience for everyone involved. 

 

 

Categories
BaaS Company News Newsroom

Banking-as-a-Service (BaaS) vs. Open Banking: What’s the Difference?

The financial landscape is continuously evolving, propelled by innovation and driven by business demand for more accessible, efficient services. Two concepts leading this change are Open Banking and Banking-as-a-Service (BaaS). This blog aims to clarify these terms, explaining their distinct characteristics, benefits, challenges, and unique roles within the payments ecosystem.

Understanding Open Banking

Open Banking is a system where banks open up secure APIs to third-party developers. This innovation is a result of advancements in technology and changes in financial regulations, like PSD2 and PSD3, that mandate banks to share customer data in a secure manner.

Technical aspects of Open Banking

Open Banking operates using Application Programming Interfaces (APIs). APIs act as interfaces, allowing different software applications to communicate and share data with each other. In the context of Open Banking, APIs enable third-party developers to connect with a bank’s systems securely.

For instance, a financial management app developer can use a bank’s APIs to access account information or initiate payments on behalf of a customer, while maintaining the security and privacy of the customer’s data. 

It means that consumers can use third-party apps to manage their finances, make payments, or even apply for loans, without ever leaving the app’s environment. The central role of APIs in Open Banking highlights the importance of designing and managing APIs effectively for both security and the customer experience.

Benefits of Open Banking

The most significant advantage of Open Banking is its capacity to drive competition and innovation. By opening up access to financial data, it creates a level playing field where even smaller tech companies can develop and launch competitive financial products. 

It results in a broader choice for consumers, higher quality services, better pricing, and, ultimately, improved customer experience.

Open Banking promotes transparency, as customers gain the ability to compare different financial products and services and make more informed decisions. It enables financial institutions to collaborate, leading to more integrated services and the potential to unlock new revenue streams.

Challenges of Open Banking

Open Banking is not without its challenges. While 84% of banks worldwide have embraced Open Banking, there are concerns about trust among consumers, which has held back mainstream adoption. New research has revealed that only 16% of UK consumers believe it is safe, with 58% still struggling to understand what it is.

Another challenge is regulatory compliance. Open Banking is subject to strict financial regulations that vary by region, like PSD3 in Europe.

PSD3 (the third Payment Services Directive) is the latest proposed regulation by the European Union, which is expected to enhance the security of transactions, improve consumer rights and further level the playing field between banks and non-banks.

PSD3 aims to clarify and reinforce the use of Strong Customer Authentication (SCA) in online and contactless payments, enhancing security for consumers.

With a broader scope and more stringent regulations, ensuring compliance with PSD3 will be a significant challenge for businesses and regulators. There is a risk that some businesses may struggle to meet the new requirements, leading to potential penalties or sanctions.

Understanding Banking-as-a-Service (BaaS)

BaaS is a model where licensed banks integrate their digital banking services directly into the products of other businesses. It emerged from the need for a more efficient way for companies, particularly in the tech sector, to incorporate banking services into their offerings.

Technical aspects of BaaS

As with Open Banking, BaaS hinges on the successful implementation of APIs. In a BaaS model, APIs enable a seamless connection between businesses and banks. These APIs allow the secure transmission of data between the business’s customer-facing applications and the bank’s services.

A typical example could be an online retailer that uses BaaS to provide financial services to its customers. Through APIs, the retailer’s website or app can connect directly to banking services, enabling customers to apply for credit, make payments, or even open a new account without leaving the retailer’s platform.

Benefits of BaaS

BaaS offers several compelling benefits. The most prominent is the ability it gives non-financial businesses to provide banking services. By leveraging BaaS, these companies can integrate banking services directly into their products without the need to build these systems from the ground up or navigate the complex process of obtaining a banking license.

BaaS can also enhance customer experience and loyalty. Companies using BaaS can provide a more holistic customer experience by embedding financial services seamlessly into their existing offerings.

BaaS offers scalability. Companies can add or remove banking services as needed without significant infrastructure changes. It makes BaaS a cost-effective solution, especially for start-ups and growing businesses.

Challenges of BaaS

Like Open Banking, BaaS faces several challenges. It’s subject to the same rigorous regulatory requirements, including data protection laws and financial service regulations. Compliance can be complicated and require substantial resources.

Another challenge is the considerable investment required in technology and security. While BaaS providers handle much of this, businesses using BaaS services must ensure their systems are capable of integrating with the BaaS platform securely and efficiently.

Comparing Open Banking and BaaS

While both concepts leverage APIs and aim to transform the financial services industry, their primary difference lies in their application. Open Banking involves third parties creating services that link to banks, while in BaaS, the banks integrate their services directly into third-party businesses.

The unique roles of Open Banking and BaaS in the fintech ecosystem

In the fintech ecosystem, Open Banking acts as a catalyst for innovation, enabling third parties to design new customer-centric solutions. BaaS serves as a foundation for businesses to incorporate banking solutions, thereby expanding their service portfolio and creating additional revenue streams.

Technical comparison between Open Banking and BaaS

From a technical standpoint, both use APIs for integration. However, the approach to data sharing differs. Open Banking usually involves read access to data with customer permission, while BaaS generally involves more comprehensive access and integration with the bank’s systems.

Both are shaping the future of financial services

The financial sector stands at the cusp of a data-driven era, with Open Banking and Banking-as-a-Service (BaaS) at the forefront of this revolution. Both concepts, while distinct in their applications, share a common goal: to redefine the way consumers and businesses interact with financial services. 

Open Banking democratises access to financial data, fostering innovation and competition, while BaaS provides a seamless integration of banking services into diverse business offerings. 

Despite the challenges that both technologies face, the potential benefits—enhanced customer experiences, increased service diversity, and new revenue opportunities—far outweigh the hurdles. It’s evident that both Open Banking and BaaS will play pivotal roles in shaping the future of financial services.

Categories
BaaS Company News Newsroom

Bank to the Future: Why banking is in flux?

Historically, banks have successfully monopolised the financial services market. They enjoyed a position as an absolute necessity for both consumers and businesses. However, in an increasingly digital world with new rules and regulations, traditional banking models have been disrupted. 

Fintechs have emerged in abundance in the last decade. They are offering innovative services and great user experiences that can adapt quickly to the constantly evolving demands of businesses and consumers.  

With so many new players entering the financial stage, competition is fierce. Traditional banks have been forced to adapt and invest in digital transformation to remain in the game. They are striving to adjust and innovate so they remain relevant in a new commercial landscape being driven by fintech innovation. Traditional banks are in a state of flux.

In this blog, we uncover what led the banks to this point and the development of new fintech business models that now allow licensed banks to integrate their banking services into businesses.  

Two sides of the banking story 

The modern definition of a bank has been subject to many changes over hundreds of years and varies depending on the region. The primary responsibility of central financial institutions is dealing with commercial and public monetary issues such as deposits, loans, and investments on a flow-by-flow basis between internal and external markets.

The need for comparing the two sides of the story is crucial for understanding why banking is in flux and their future position within the financial sector and wider cultural society. 

Origins of traditional banks

The first private and communal money service dates as far back as 1,800 BC in Babylon. Ancient merchants would deposit money and imported goods within temples. 

Traditional banking was first evidenced within the Greek and Roman Empires, where private individuals and businesses would invest and lend money. The upper class of the Roman Empire chose to manage their money through pious officials, who established lending with interest and kept track of finances with written records. 

Conventional banking practices were established in the fourteenth century in Venice, Florence and Genoa. The Venetian Republic created the first official central financial institution in 1587, driven by the need to fund ongoing war efforts. They forced a loan, creating the first official central financial institution. As a result, banking developed out of necessity as an efficient way to pay for war expenses, as well as goods and services worldwide.

Fractional reserve banking and the issuance of banknotes emerged in the 17th century through central banks and national financial institutions. This can be seen as the point where banks established themselves in a central and unique position in the economy. Their role was to maintain the stability of currency (attempting to curb inflation) and stabilise the general economy by offsetting shocks.

Massive rewards of the traditional banking market

Many years later, the banks had established themselves as an immovable force in the world’s economic, political, and even social affairs.  

The banks also enjoyed a virtually impenetrable commercial landscape. New competitors were effectively kept out of the market. This was due to stringent requirements, such as high collateral demands and tough approval processes.  

These high barriers to market entry meant incumbent banks had no real competition. Customers needed to visit a local branch where all the bank’s financial services could be purchased (after much paperwork) in a self-contained financial ecosystem. Banks, therefore, didn’t see the need to invest in advancing their services to retain and grow their customer base, as would be expected in other industries.

This lack of choice resulted in customer ‘loyalty’ and low attrition for years. Ultimately, the lifetime customer relationships and strong brand awareness resulted in the banks reaping huge profits for decades.

Origins of fintechs 

Fortunately, this lack of competition in the financial services sector did not go unnoticed.

New regulations implemented by the European Union were introduced with the explicit purpose of stimulating fresh competition and innovation in the financial services market. 

This came at a time when social, political, and demographic influences converged with new technology. Smartphones, apps, high-speed internet, and cloud computing made it possible to offer financial services online and through apps. 

This paved the way for the birth of fintech with its brand-new technology and a focus on great user experience to fill the huge gap left by the banks. 

The economic crisis of 2007-08 created a climate of distrust in traditional financial institutions. This also helped pave the way for fintech alternatives with a more transparent attitude and customer-centric approach. 

A wake-up call for legacy banks

The growth of the fintech industry was a major challenge to the financial services sector and sent the long-established banks into a state of flux. 

They could see how customers were migrating away from high street services to apps on their smartphones. The number of bank branch closures mirrored this shift, with 14,689 branches in 1986 to just over 8,000 by 2022. 

The first target of the new fintechs was the foreign exchange and currency conversion services of the banks. Fintechs such as Transfer Wise (now Wise) were launched to specifically target this market, which had been overcharged and underserved for years. 

The banks could see how their service model could be unpicked by the fintechs.  

Breaking banks – the outcome

Some incumbent banks started spending billions on digitising their existing business models to try and keep pace with the fintechs. They hoped this would help maintain their market share and demonstrate an ability to innovate. Many banks are still struggling with this process ten years later.

Other incumbents tried to replicate the fintech approach of breaking their service down into component parts and developing their own technology that could be offered as a Banking as a Service (Baas) solution. Some banks chose to partner directly with fintechs to develop this technology. Essentially, it is a new fintech front end that is still reliant on legacy bank processes and policies.

Other fintechs decided to invest in their own banking licence. That way, they could cut out the legacy banks completely. They would have the latest BaaS technology without having to rely on the slow processes and approval policies of the legacy banks to underpin their solution.

The Future with BaaS (Banking as a Service)

Banking as a Service (BaaS) enables non-financial businesses such as retailers and telecom companies to ‘subscribe’ to the financial services they want to offer their own clients. Those businesses now don’t need licences or regulatory compliance to offer financial services that were previously only available via banks. 

The new reality for banks

Some banks are struggling to find their way in the new competitive environment. They are seeing some big names adopt the BaaS model.

Amazon, Apple, Samsung and Ikea are using BaaS to improve conversion rates and add new revenue streams. Alipay uses BaaS to offer a range of financial services, including savings accounts, insurance, and investment products to its customers. 

Among those fintechs that invested in their own banking licence were Monzo, Starling and Atom, who set themselves up to compete directly with legacy banks. B4B Payments was one of those who have been awarded a banking licence for their BaaS solution. 

What’s next for banks?

The banks have had change forced on them. Legacy technology is a big part of the problem, but they also have policies and procedures that are slow and outdated compared to today’s fintechs. Some banks are still wrestling with digital transformation projects, while others are partnering with fintechs. 

The trend towards payment and service convenience is clear and irreversible. Banks once enjoyed a situation where their customers had to visit their branches where all their services were available to purchase in one place. Through regulatory changes, new technology and fintech challenges, this benefit can now be enjoyed by non-financial service companies who want to build customer loyalty and increase profitability through BaaS. 

Banks need to adjust to a future where they don’t hold all the cards.