Information and Analytics about Embedded Finance, BaaS and Open Banking

Perplexity has launched a groundbreaking artificial intelligence (AI)-powered shopping assistant called Buy With Pro, initially available to Perplexity Pro users in the United States. The company plans to expand this service to additional markets, aiming to transform how users shop online, according to PYMNTS.  In a blog post the company highlighted the innovation behind the new service. “It marks a big leap forward in how we serve our users — empowering seamless native actions right from an answer,” Perplexity wrote. “Shopping online just got 10x more easy and fun.” The Buy With Pro feature allows users to both research and purchase products directly on Perplexity’s website or app. By saving their shipping and billing information in Perplexity’s portal, users can take advantage of one-click checkout for select products from specific merchants. For items not supported by Buy With Pro, users are directed to the merchant’s website to complete their purchase. This hybrid approach ensures convenience without limiting product availability. In addition to Buy With Pro, Perplexity offers a visual search tool called Snap to Shop. This feature enables users to find products simply by taking a photo. Unlike traditional search tools, Snap to Shop eliminates the need for detailed product descriptions or names. Instead, it displays relevant products based on the uploaded image. The discovery experience, powered by integrations with platforms like Shopify, enhances users’ ability to find tailored, unbiased product recommendations. “When you ask Perplexity a shopping question, you’ll still get the precise, objective answers you expect, plus easy-to-read product cards showing the most relevant items, along with key details presented in a simple, visual format,” the company said. Perplexity’s innovations come amid significant growth. On Nov. 5, it was reported that the company is raising $500 million in its fourth funding round this year, tripling its valuation from earlier in 2024. With this funding, Perplexity’s valuation is expected to reach $9 billion, a dramatic increase from its $520 million valuation at the beginning of the year. The platform’s popularity is skyrocketing, with over 100 million weekly queries. CEO Aravind Srinivas expressed confidence in the company’s trajectory, writing on X (formerly Twitter) on Oct. 25: “Next stop: 100M+ queries every day.” With Buy With Pro and Snap to Shop, Perplexity aims to solidify its position as a leader in AI-powered tools for seamless shopping experiences.

Mercedes-Benz Insurance Services UK Limited, the insurance division of the globally renowned automotive brand, has announced a strategic partnership with Wrisk to revolutionize its car insurance offerings, as outlined in Fintech Global News. The collaboration introduces a subscription-based model designed to provide greater flexibility and enhance the overall ownership experience for Mercedes-Benz customers. At the heart of this partnership is Wrisk’s advanced digital insurance platform, which enables flexible, rolling monthly policies with no penalties or transaction fees. This innovative approach aligns with shifting consumer trends in car ownership and driving habits, emphasizing adaptability and seamless integration. “Wrisk’s expertise in the digital insurance space makes them an ideal partner to help us deliver a seamless, adaptable insurance solution that enhances the ownership experience for our customers,” said Ivor Wood, Managing Director of Mercedes-Benz Insurance. “Together, we’re setting a new standard in the industry, one that prioritizes customer convenience and satisfaction at every touchpoint.” The partnership also introduces the Five-Day First Cover, a market-leading feature offering immediate coverage at the point of vehicle purchase for Mercedes-Benz and smart car buyers. This streamlined onboarding process ensures a hassle-free transition to the new insurance model, with existing customers already being migrated to the solution. Robert Cottrell, VP Commercial at Wrisk, highlighted the shared vision between the two companies: “We share many values with Mercedes-Benz; dedication to innovation, a commitment to integrity, and a customer-centric outlook, to name just a few. This partnership is a brilliant match that brings two forward-thinking organisations together to deliver something that is distinct and adds value to the end-user.” Wrisk specializes in embedded insurance solutions tailored for the automotive industry, positioning itself as a leader in crafting bespoke insurance models for modern mobility. By joining forces with Mercedes-Benz Insurance, Wrisk aims to set new benchmarks in customer-focused, digital-first insurance services. The partnership underscores Mercedes-Benz’s commitment to innovation and its ability to adapt to evolving customer needs, reaffirming its position as a leader in the automotive insurance market.

PayPal has launched a new feature allowing users to pool money effortlessly with family and friends for group gifts, travel, events, or shared expenses, as stated in FF News. This service is now available in the US, Germany, Italy, and Spain, enabling users to create money pools via the PayPal app or online, invite contributors, track payments, and manage funds. “Everyday life is all about connections, whether it’s chipping in for a group gift or planning a trip with friends and family. PayPal understands this and aims to make those moments easier,” said John Anderson, GM and SVP of Consumer at PayPal. “We’re excited to introduce a simple, no-cost solution for collecting and managing funds for group purchases, helping our customers navigate both the social and financial aspects of their lives.” A 2024 PayPal survey revealed that US consumers pooled funds for group purchases around 86 million times last year, with common uses including gifts, travel, and events like concerts and sports. The feature is free to use and allows contributions through a PayPal balance or linked bank account. Organizers can transfer funds to their PayPal balance or a linked bank account to spend as needed. PayPal ensures secure transactions with 24/7 fraud monitoring and advanced encryption. Setting up a pool is straightforward, involving a few steps in the app, such as creating a title, description, and goal, then sharing the pool link with contributors. This innovative feature streamlines group expense management, making it easier for users to manage their social and financial interactions securely and efficiently.

The global fintech industry gathered in Las Vegas for Money20/20 USA 2024, where artificial intelligence (AI), cross-border Central Bank Digital Currency (CBDC) initiatives, and real-time payment innovations dominated discussions, according to FinTech Magazine. Greg Ulrich, Mastercard’s Chief AI and Data Officer, emphasized how open banking and consented data sharing are creating a robust societal data network. Pahal Patangia, Head of Developer Relations at NVIDIA, highlighted the widespread enthusiasm in leveraging AI to enhance performance across financial sectors. Money20/20 President Tracey Davies marked a shift from AI hype to active adoption, citing a joint report with Acrue Capital that found 76% of financial services firms have announced AI initiatives, with nearly half employing generative AI in core products. Scarlett Sieber, Money20/20’s Chief Strategy and Growth Officer, remarked:«As an ex-banker myself, it is a broad conception that financial services move slowly because we’re so highly regulated. In fact, the data shows that financial services is actually a leader in AI initiatives.» Anand Natarajan of Standard Chartered unveiled M-CBDC, a collaborative initiative between Dubai and Singapore aimed at facilitating cross-border Central Bank Digital Currency (CBDC) flows, expanding beyond domestic use cases. DailyPay CEO Stacey Greiner announced international remittance integration, enabling money transfers to 70 countries in real-time. This advancement represents a move toward financial immediacy, empowering workers to meet their needs on the same day they earn. Money20/20’s President Tracey Davies reflected on the fintech industry’s evolution:«Many of the companies that you see here now grew up with us, brands like Marqeta and Revolut. They were all here in their infancy, and we’re very proud of that.» The event highlighted the industry’s momentum in driving innovation, showcasing how AI and data convergence are shaping a more seamless and globally connected financial future.

Mastercard has rolled out a new digital platform, Mastercard Biz360, designed to help small businesses consolidate and optimize the digital tools essential for day-to-day operations and growth, according to PYMNTS. This initiative aims to support financial and service providers by enabling them to offer a unified platform for small business clients, making it easier to manage everything from operational tools to customer engagement.  Mastercard Biz360 is a “one-stop shop” where business owners can integrate their existing digital tools while accessing new features in a streamlined, centralized hub. In a recent press release, Jane Prokop, Mastercard’s executive vice president and global head of small and medium enterprises, emphasized the platform’s value, stating, “Mastercard Biz360 is the time-saving solution that small businesses need to focus on what matters most — running their business and serving their communities.” Through Biz360, small business owners can access various tools and resources: from automating administrative tasks to receiving personalized business performance reports. Customer engagement options are also available, allowing businesses to create email campaigns, design websites, and leverage marketing tools, all from a single location. The integration process requires minimal setup for both providers and their clients, ensuring accessibility and ease of use, according to Mastercard. To bring Biz360 to market, Mastercard partnered with Hello Alice, a FinTech platform for small businesses, and vcita, a technology platform. Mastercard also revealed plans to expand Biz360 to more markets in 2025, working with additional providers to broaden its reach. The launch of Biz360 reflects Mastercard’s ongoing dedication to small business growth. In an earlier collaboration, Mastercard partnered with Bluevine to introduce a small business credit card that offers 1.5% cash back on all business-related purchases. The card includes features such as merchant discounts and tools for efficient expense tracking, tailored specifically to small business needs. Additionally, Mastercard’s Strive fund, launched in December 2023, awarded nearly $2 million in grants to organizations supporting small businesses worldwide. The Strive Innovation Fund is particularly focused on initiatives that aid small businesses in adopting environmentally sustainable practices and enhancing market access through data-driven insights.

The surge of artificial intelligence (AI) in customer experience (CX) is redefining how businesses engage with customers, transforming traditional contact centers into innovation hubs that boost efficiency and satisfaction, as highlighted in Fintech Global News. This transformation was a central topic in a recent webinar by Business Systems Limited and NICE, where industry experts explored the trends and future of AI in CX. AI in CX streamlines operations by automating repetitive tasks, allowing human agents to focus on complex, empathy-driven issues. This shift reduces costs and enables businesses to enhance the personal touch where it counts most. AI now positions contact centers as value drivers, moving away from the traditional view of them as cost-heavy operations. Customers today are accustomed to the convenience of AI-powered services, expecting seamless experiences without repetitive explanations or multiple agent interactions. AI meets this demand by using integrated customer data to deliver fast, personalized responses, shifting perceptions from AI as “impersonal” to a necessity for efficiency and satisfaction. With AI handling routine queries, human agents are freed to manage complex, emotionally nuanced interactions, requiring specialized training and support. Businesses must now invest in continuous learning to adapt to these evolving agent roles, making the human-AI collaboration essential for superior CX. AI’s improving ability to handle multiple languages is crucial as companies expand globally, although challenges with dialects remain. This progress holds potential for revolutionizing global customer support by enhancing accessibility and responsiveness for non-native speakers. AI in CX brings robust analytics capabilities, allowing businesses to monitor customer sentiment and behavior in real time. By analyzing each interaction, companies can quickly identify trends and make data-driven improvements that boost both customer and agent satisfaction. The future of AI in CX lies in a balanced human-AI model where AI handles routine inquiries, and human agents focus on sensitive cases. Choosing the right AI partner is key to successfully navigating this transition and staying competitive.

Ottu, a leading FinTech company in the GCC region, has announced a strategic partnership with Keyloop, a prominent provider of automotive retail solutions, to introduce a streamlined payment solution for automotive dealerships. This collaboration is set to redefine payment handling in the automotive industry, enhancing efficiency and elevating customer satisfaction, as reported by FF News. By merging Keyloop’s advanced automotive retail platform with Ottu’s robust payment management tools, the partnership will enable dealerships to offer a unified and secure transaction experience. Ottu’s platform, an online payment gateway management system (OPMS), provides businesses with secure tools to manage customer payments, integrating local payment gateways for seamless acceptance of debit and credit cards. Keyloop’s Fusion platform, renowned for supporting dealerships through a network of integrated products, empowers dealerships to maintain competitive edge and enhance customer relationships. The unified system offers multiple payment integration points across e-commerce, mobile apps, Dealer Management Systems (DMS), and payment links, minimizing transaction friction and simplifying reconciliation. Munaf Bukhari, DCEO of Ottu, expressed enthusiasm about the partnership, stating, “We are thrilled to join forces with Keyloop, a company that shares our vision of driving innovation and fintech efficiency in the automotive sector. Our partnership will not only optimize payment solutions but also set a new standard for customer experience in the industry.” This collaboration highlights the commitment of both companies to set a new benchmark in customer experience within the automotive landscape.

AI is reshaping financial services by enhancing market predictions, fraud detection, customer service, and widening access to credit. As algorithms delve into data patterns, AI is empowering the industry with insights and efficiencies like never before, as stated in FinTech Magazine.  AI tools are increasingly used to forecast market trends and consumer behavior. Prashant Jajodia, Managing Partner at IBM UK&I Consulting, explains, “AI enables financial services to make data-driven decisions, optimizing strategies and improving operational efficiencies.” Jamil Jiva from Linedata adds that AI «finds hidden patterns across vast data sets,» aiding financial advisors in choosing optimal actions and products for clients. AI algorithms are revolutionizing fraud detection by analyzing transaction patterns in real-time. Dr. Scott Zoldi of FICO highlights AI’s focus on «real-time, recursively updated anti-fraud features,» which enable systems to block suspicious transactions before they proceed. According to Marco Santos of GFT, «AI functions like a digital detective, continuously improving its accuracy through both supervised and autonomous learning techniques.» AI-driven chatbots have redefined customer interactions by providing 24/7 support and personalized recommendations. For instance, NatWest’s Watsonx assistant has boosted customer loyalty by 20%. Peter Pugh Jones from Confluent emphasizes that chatbots «provide real-time assistance and suggest savings goals,» transforming banking from a transactional to an advisory role. AI-powered credit scoring considers a broader range of data beyond traditional histories, increasing credit accessibility for underserved communities. Jamil Jiva notes, «AI is assessing alternative financial behaviors, providing fairer credit evaluations,» helping lenders reach individuals without conventional credit backgrounds. AI’s transformative role in finance promises a more efficient, inclusive, and data-driven future, providing financial services tailored to individual needs while ensuring security and compliance.

The evolution of financial technology continues to reshape banking, turning its focus towards deposits—a traditionally stable segment—as new opportunities emerge for embedded banking, as stated in PYMNTS. As Jon Briggs, EVP of Commercial Products and Innovation at KeyBank, highlights, “Money is becoming more mobile and will be living in different ecosystems. You need to be in that game to attract, grow and retain deposits.” At a recent panel, Briggs and Ingo Payments CEO Drew Edwards discussed how technology and partnerships between banks and FinTechs could drive deposit innovations, enhancing money mobility within integrated financial ecosystems. For instance, FinTech solutions now allow deposits from digital transactions to be stored in newly created accounts—whether it’s a customer loyalty program or a closed-loop payment ecosystem. Edwards notes, “It takes money mobility and enables it to be embedded in these software experiences.” Regulatory adjustments are also at the forefront, with the CFPB’s Rule 1033 introducing new compliance expectations. Briggs anticipates that the coming years will reveal the impact of regulatory changes on deposits. Compliance and robust risk management, he suggests, will be crucial for FinTechs looking to thrive in this evolving space. “These large, sophisticated enterprises want to know where that money is, who’s standing behind it, and they want to understand the risk wrapper,” Briggs said. Embedded banking is more than a trend—KeyBank has invested heavily in it over the past four years, foreseeing new business models and growth. As demand for deposit accounts grows, especially those integrated into clients’ enterprise systems, banks and FinTechs will likely partner to build efficient, regulated, and flexible solutions.

As the use of generative AI rapidly expands in various sectors, financial services are quickly adopting these technologies to revolutionize their operations and customer interactions, according to Finextra. Finextra’s upcoming event, NextGen: AI, set for November 26, 2024, in London, will dive into the evolving role of AI in finance, exploring its potential to reshape the industry just two years after the launch of ChatGPT, a moment that many regard as the catalyst for GenAI’s rise to mainstream use. Generative AI’s influence in financial services is undeniable. The technology enables sophisticated analysis of customer behavior and preferences, paving the way for highly personalized experiences and dramatically improving customer service efficiency. Not only can AI systems now generate responses that sound natural and precise, but they can also review a customer’s financial history in seconds—providing a level of contextual insight that human agents would struggle to match. This capability enhances both service quality and fraud detection efforts, as AI can flag anomalies and help agents quickly recognize potential risks. Industry leaders are embracing this shift. At a recent Sibos conference panel, Dorian Selz, CEO and co-founder of Squirro, highlighted the scale of this AI transformation: “There have been many fundamental shifts in the IT space, such as the internet and the e-commerce revolution. This is the biggest one. Leadership in companies needs to be on top of this revolution.” His remarks underscore the urgency for financial institutions to stay engaged with AI’s evolution. Several financial giants are already integrating generative AI tools into their workflows. Last week, Mastercard announced a new GenAI assistant, the first in a series of AI-driven innovations. In October, Morgan Stanley rolled out AskResearchGPT, a tool designed to empower its institutional securities team with advanced AI insights. Earlier this year, S&P Global committed to training 35,000 employees in generative AI applications, a signal of how seriously it views AI’s potential to transform business functions. Generative AI’s applications extend beyond operational efficiency. It’s driving a shift from basic chatbots to advanced AI agents capable of handling complex customer inquiries, providing real-time financial advice, and offering solutions based on a deep understanding of customer needs. This marks a significant evolution from traditional approaches, as these AI systems become indispensable for improving customer engagement and loyalty. NextGen: AI will offer a platform for discussing generative AI’s broader applications, including addressing ethical and operational challenges. As financial institutions embrace AI-driven innovations, the event aims to tackle questions around safe deployment, data privacy, and the ethical concerns that accompany this technology’s rise. Attendees will gain insights into how generative AI is no longer just a futuristic concept but a present-day force reshaping financial services.