Embedded Finance: Transforming the Banking Value Chain

The Next Wave of Digital Transformation in Banking
Podcast Series by Mobey Forum and Consult Hyperion

Episode 1:  The Evolution of Digital Wallets and Identity
 
Moderated by: Dave Birch, Director at Consult Hyperion
Guests:
Heidi Torgnes, Co-Chair of Mobey Forum's Digital Identity Expert Group & Business Developer Payments and eID at Eika
Kevin Faragher, Member of Mobey Forum's Board of Directors & AVP of Interac Verified Product at Interac Corp.
Daniel Goldscheider, Founder and Executive Director at OpenWallets Foundation

As digital wallets are moving beyond payments, identity is at the core of this next generation of wallets. Exploring this transition, in this episode we address the following questions:  

• How will identity in digital wallets differ in functionality from the identity cards in physical wallets? 
• What are the opportunities for banks in digital identity wallets and how will banks in markets with already established digital identities evolve their offering to digital wallets? 
• Are digital identity wallets really a smartphone app? 
• How are the standards for digital wallets being developed?

A significant shift is occurring in the financial services industry, altering the traditional structure of the value chain. The rise of embedded finance is introducing new perspectives, prompting a departure from conventional models. As we navigate through this transformation, all stakeholders find themselves at a crucial point where adaptation is not just a choice but a necessity.

In December 2023 Mobey Forum’s Payments Expert Group published a report highlighting the urgency for banks to articulate a well-defined strategy, providing essential insights to thrive in the embedded finance landscape.

This podcast is a recording of the member exclusive launch session from 19 December 2023, in which the co-chairs of the Payments Expert Group, Tuire Mäkelä (Nordea) and Sohrab Kalra (Interac), discussed the key findings of the report.

Report available free of charge here.

Digital wallets are back on top of banks’ agendas. Mobey Forum has responded by launching a Digital Wallets Expert Group to analyse where wallets are now, and how banks can win the next battle in the wallet wars. 

The wallet wars began when Apple and Google announced the launch of their wallets and customers preferred these over the ones provided by banks. The first round was lost. 

Now, with developments in areas such as open banking, embedded finance, digital identity and digital payments (beyond the card rails), a new opportunity has emerged for banks to take back control of the wallet – or at least some parts of it.

In this podcast, the chairs of the Expert Group, Kristian Sørensen from Norfico & The Tokenizer, Marina Repo from Nordea and Cédric Sieber from PostFinance, discuss what the wallet landscape for banks currently looks like, what the next priorities for banks are, and how wallets are currently developing. 

Mobey Forum's Digital Identity Expert Group chairs Jukka Yliuntinen (G+D) and Kevin Faragher (Interac), together with Report Executive Reuben Jacob (TD) discuss the findings of the latest report from the group: ‘The Rise of Digital Identity Wallets: Will banks be left behind?’ (https://mobeyforum.org/the-rise-of-digital-identity-wallets-will-banks-be-left-behind/).

What do banks need to do to ensure they are not left out from the trust economy?

What is the role of digital identity wallets and how should banks approach them? 

What are the key considerations for banks in digital wallets?

What are the use cases for identity wallets?

This report brings together insights from the discussions in the Expert Group as well as interviews with a selection of banks.

In this podcast, two of our Open Banking Expert Group Chairs Kristian Sørensen and Marc Folch analyse the main findings of Mobey’s recently published report on Monetisation of Open Banking APIs. You can download the full report on our website: https://mobeyforum.org/monetisation-of-open-banking-apis-report/

Though Open Banking in many countries has been driven “top-down” as a regulatory requirement, many banks have taken the opportunity to revisit their strategies to look beyond a pure compliance play. A natural next step after implementation of the regulatory mandated APIs, is to shift their strategic focus to the topic of monetisation. From the perspective of supporting the long-term health of the ecosystem, this should be encouraged. Open Banking (and later Open Data) can only realise its full potential if organisations big and small persistently invest in making it better and more useful over time. The most efficient and effective way for that to happen is if there are self-sustaining market economics that reward those who do.

The analysis and the key conclusions presented in this podcast are based on the discussions in the Expert Group.

By Mobey Forum’ Open Banking Expert Group Co-Chairs:

Marc Folch, Senior Manager Innovation Insights & Emerging Solutions, Interac
Kristian Sørensen, Founding Partner, Norfico & The Tokenizer
Introduction by: Elina Mattila, Executive Director, Mobey Forum

The Digital Banking Blindspot: Emerging Privacy Enhancing Technologies (PETs) and their role in privacy risk mitigation and business innovation.
 
 In this podcast, AI & Data Privacy Expert Group chairs Amir Tabakovic from Experiens AI, Ville Sointu from Nordea and Sebastian Reichmann from TietoEvry discuss the common terminology around PETs, the role of personal data protection in financial services and the common uses of PETs.
 
 To gain most value of the podcast, we advice you to look at the below illustration:
 
 From 13m:30s to 20m:30s: refer to this illustration - Use of encryption and anonymisation in PETs
From 20m:30s to the end: refer to this illustration - Privacy obligations and regulatory mandates mapped to PETs

The podcast is a discussion based on a report from Mobey Forum's AI & Data Privacy Expert Group. You can download our full report here: https://mobeyforum.org/the-digital-banking-blindspot/

For more information, please check out our website, LinkedIn and Twitter

Mobey Forum’s Digital ID Expert Group recently published The Mobey Long Take – Post Covid-19 Digital Identity report, analysing the impact of the Covid-19 Crisis on Digital Identity. 

In this podcast, some of the core members of Digital ID Expert Group Mikko Hiekkataipale, Senior Product Manager at Nordea; Dan Johnson, Vice President Digital Identity at Mastercard and Arjen Hollander, Business Development Manager Digital Strategy at Thales Group explore the key takeaways of the report; how has the pandemic emphasised the need for digital identity services; how has the usage of the existing services been affected; what are the possible implications of the Covid-19 tracking apps on digital identity services? The discussion is moderated by Elina Mattila, the Executive Director of Mobey Forum.

In September, Mobey Forum will launch a new Expert Group on Payments, to analyse the strategic options for banks’ business models in the changing payments landscape.

In this podcast, Payments Expert Group Chairs Beat Bannwart from UBS, Xavier Herrero from CaixaBank and Sirpa Nordlund from Nets discuss the recent developments in the payments landscape and what the future looks like for banks, giving us a sneak peek of the discussions in the Expert Group. 

The discussion is moderated by Kristian Sørensen from Norfico.

What will be COVID-19’s biggest impact on financial services? How has customer engagement and the demand for new services changed in banks? Has the uptake of digital ID increased and what roles do banks play in this? Increased digitisation generates even more data - what new opportunities does this bring to banks?

In this podcast, Mobey Forum Expert Group Chairs Amir Tabaković from experiens.ai (Data Privacy in the Age of AI Expert Group), Jukka Yliuntinen from Giesecke+Devrient (Digital ID Expert Group) and Mario Brkić from Erste (Open Banking Expert Group) discuss the aftermath of COVID-19. The discussion is moderated by Kristian Sørensen from Norfico (Open Banking Expert Group).

Mobey Forum’s Digital ID Expert Group recently published an interactive, all-digital report How to Make Digital Identity a Success: Insights and Learnings from Seven Digital ID Schemes, presenting a comparative overview of seven digital ID schemes across Europe and North America. 

In this podcast, Jenny Ahlqvist from Sparebank 1, Jukka Yliuntinen from Giesecke+Devrient and Kevin Faragher from TD Bank explore the key findings of the report. The discussion is moderated by Paul Rogers from iseepr.