At this year’s PAY360 conference held at London’s Excel – one of the largest payment events of the year in the UK –  more than 5,000 payment and finance professionals from around the globe gathered to network and share insights on the hot topics in the industry.

The Fintech Times took the opportunity to catch up with Lloyds Bank and fast-growing fintech CoBa Technology – a cloud-hosted platform that seamlessly connects banks and businesses – to learn more about their recent collaboration.

Robin Scher, head of fintech investment at Lloyds Banking Group and Tom Stoddart, head of market sales at Lloyds Banking Group, were joined by Carl Hasty, CEO and co-founder of CoBa, to discuss their partnership as well as how they are collaborating to enable clients to digitally manage their banking needs through automation and workflow connections.

Investing in startups

According to Scher, Lloyd’s created a £50million fund internally to invest in early-stage fintech startups in order to “reduce the cost of change or increase the pace of change”.

He explained why that included CoBa: “One of the things we look for and we absolutely love is great founders with real vision and an ability to execute. We look at the product-market fit as well, something that we think is going to work in the market. We also invest in things that we are going to learn from, that will innovate with us and partner with us in a true partnership fashion.”

In agreement, Stoddart added: “We look for an aligned philosophy particularly with the purpose that we have as an organisation. An alignment over goals of what looks good from a execution and delivery perspective is absolutely critical.

“What we have found by working with CoBa is that as a large organisation with multiple data sources we can bring that together and hand it to CoBa who are much more nimble and agile in terms of the way that they can deliver solutions for our customers.”

Hasty also added: “We focus on strategic relationships and want to work with a bank right at its core. We’re very much about bringing the bank and the client together.”

To find out more about their collaboration and how the strategic partnership plans to co-create tailored solutions for clients., watch our interview below.

The Fintech Times meets Lloyds Bank and CoBa Technology at PAY360

African Export-Import Bank (Afreximbank) has partnered with Nigeria-based financial institution Sterling Bank to launch its supply chain finance product ‘Payables Finance’ across Nigeria.

Under this arrangement, Afreximbank will provide financing to corporates and banks in US Dollars and Euros, while Sterling Bank will manage financing in Nigeria.

Payables Finance enables suppliers to access financing from the banking system by obtaining early payment for invoices which have been approved for payment by their corporate buyers.

Buyers continue to receive trade credit from the suppliers, and the suppliers finance their working capital through the early payment received, enabling them to grow their business. The financing cost is linked to the credit rating of the corporate buyers, thereby making this product particularly valuable for SME suppliers who may face challenges in accessing bank finance at competitive pricing.

The supply chain finance product, branded ‘Afreximbank Tradelink’, is one of the bank’s digital offerings under the umbrella of the Africa Trade Gateway (ATG). ATG provides African corporates and commercial banks with relevant digital tools to access market information, connect with buyers and sellers across the continent for efficient marketing and procurement, facilitate Know Your Customer (KYC) processes, and promote trade payments between African countries in local currencies.

Chukwuka Onuaguluchi, ecosystem banking head at Sterling Bank, said: “Sterling Bank is committed to meeting the trade finance needs of Nigerian corporates and their suppliers and we are proud to introduce this much-needed product in partnership with Afreximbank for the benefit of Nigerian businesses.”

‘Improving access to trade finance in Africa’

Haytham ElMaayergi, executive vice president of Afreximbank Global Trade Bank, welcomes the launch as another milestone in realising the Bank’s vision of transforming Africa’s trade: “Afreximbank identified supply chain finance as a solution for improving access to trade finance in Africa and embarked on a journey to increase penetration through financial intervention and capacity building.

“The Bank’s Factoring Working Group has done extremely well to provide lines of credit to support factoring and has actively promoted factoring across the continent in collaboration with other institutions.

“African businesses now have the opportunity to harness the potential of this product, which has been widely adopted globally, at an accelerated pace by learning from the experiences of other regions and using the latest technologies which have been developed.”

Afreximbank also plans to engage in similar partnerships in other parts of Africa to expand local currency financing capability across the continent in a phased manner. Adoption of the product will be supported by capacity-building events to increase awareness of supply chain finance and its benefits.

Gwen Mwaba, director and global head of trade finance at Afreximbank, also added: “The launch in Nigeria is a first step in Afreximbank’s plans to introduce Payables Finance across Africa in partnership with leading African financial institutions. The product will contribute towards the achievement of the Bank’s strategic objective of reducing the trade finance gap in Africa, particularly for the SMEs segment.”

Payop, an international payment processor and a payment aggregator, has partnered with Tink, a market-leading payment services and data enrichment platform, enabling it to add ‘Pay by Bank’ to its checkout options.

Payop is now live with the Tink Pay by Bank solution for merchant checkouts, which has already enjoyed noteworthy growth. The amount of executed payments more than doubled between January and December 2023.

Anastasiia Semenkova, CEO at Payop, explained the decision to implement the open banking solution: “When we decided to test open banking technology for e-commerce payments, our choice fell on Tink. We considered many providers but were impressed by Tink’s product offering and consumer-centric approach.

“Going into this, we were already positive about the future partnership, but in practice, it turned out to be much more than we expected. Tink showed us the potential of an open banking technology, providing secure payments that can be done in three clicks.”

Payop works with a variety of merchants from small e-commerce stores to large enterprises, offering a unique checkout solution with numerous payment solutions.

Payop and Tink hope to promote and grow the adoption of this payment method across Europe through this collaboration. Pay by Bank is available for Payop merchants across Europe including France, Germany, Netherlands, Spain and the UK.

Semenkova added: “The European market is very competitive. There are many payment options available in each country. But once consumers try Pay by Bank, we find that they don’t go back to other methods. The increase in adoption of Pay by Bank that we are seeing at Payop would be impossible without a stable and reliable partner. For us, it’s Tink. Tink maintains a high-quality API and keeps adding new banks and countries to its coverage.”

Pay by Bank

Pay by Bank is an online payment method that lets consumers purchase goods and services by initiating payments directly from their bank account to the seller’s account.

This account-to-account payment method provides a secure and streamlined experience, at a low cost, enabling merchants to differentiate themselves from the competition.

Ian Morrin, head of payments and platforms at Tink, also added: “We’ve already seen impressive volume growth in our collaboration with Payop, and we are proud to support them in their Pay by Bank solution. Pay by Bank complements the current payments ecosystem.

“It’s not just about creating another choice of payment at checkout, but offering consumers a payment method that has everything they may want and have come to expect – familiarity, speed, reliability and convenience.”

New research from Swedish fintech Brite Payments and YouGov has found that the way consumers pay is changing, with Pay by Bank ranking a top three payment method in the UK, Netherlands, Finland, Spain and Germany.

The inaugural report, Instant Economy Payment Insights, found a growing appetite for new payment methods that cater to consumer demand for secure, convenient, and instant payments. It highlights similarities and differences across the markets surveyed, which illustrate the diversity of payment behaviours that pose a challenge for businesses that are increasingly international in nature.

“Immediacy and convenience are at the core of today’s instant economy, with consumers now expecting real-time interactions across all digital touchpoints and in all facets of their lives,” said Lena Hackelöer, founder & CEO, Brite Payments.

“However, the promise of a true instant economy remains unfulfilled, in part, because it requires an entire ecosystem of digital payment technologies that have struggled to keep up with changing consumer needs.”

Consumers choice

Based on fieldwork conducted in January 2024 that surveyed more than 8000 consumers across six key European markets, the report found needing to create an account (22 per cent) and needing to use an app (17 per cent) were the most frequently encountered issues when making online payments.

The prevalence of these issues indicates an opportunity for easy-to-use payment methods that only require consumers’ top-of-mind information. However, despite a clear desire for convenience, security ranks as the most important factor when considering a new payment method.

Speed also emerges as a key consideration in consumers’ choice of payment method. More than a third of respondents placed high importance on immediately seeing transactions reflected on their accounts,  rising to nearly half for the Netherlands (44 per cent) and Spain (46 per cent).

Consumers also expect rapid settlement of payments they receive, whether in the form of refunds or payouts. Over half (50.1 per cent) agreeing that it is unreasonable to wait for more than an hour to receive a payment from a business.

“Account-to-account payment methods are not entirely new – in fact, they are well established in many European markets. What is noteworthy is that a new generation of Pay by Bank or A2A solutions based on open banking is emerging, which not only address merchant pain points but also clearly converge with consumer demands for more convenient and secure payments,” concluded Hackelöer.

GoCardless, the bank payment company, has reached an agreement to acquire competitor Nuapay, the open banking business of EML Payments Limited, subject to regulatory approval.

The Nuapay acquisition will significantly scale GoCardless’ indirect channel proposition, consolidating its position as a key payment provider to existing and new customer segments including Independent Software Vendors (ISVs) and Payment Service Providers (PSPs).

By incorporating Nuapay’s offering into its bank payment platform, GoCardless will fast-track the rollout of new disbursement capabilities to its customers and prospects. This could also enable GoCardless to unlock new vertical sectors and use cases in areas including payroll, financial services, utilities, insurance, gaming and gambling.

Luke Fossett, general manager of GoCardless ANZ, said: “Acquiring Nuapay will not only accelerate the execution of our product strategy, but will also enable us to meet the demand for more comprehensive payment solutions from Australian and international businesses.

“The combination of both organisations will create a full-service bank payment provider that will help businesses collect and pay out via direct debit and PayTo, something our customers have been asking for across a range of industries. We know that approximately 95 million direct debit payments occur in Australia every month, and we estimate the volume of the payout and disbursements market to be almost double that, presenting a significant opportunity for GoCardless.

“The acquisition will allow customers to unlock these capabilities via a single payment provider. In addition, they’ll get access to advanced features to help them combat fraud and improve payment success rates — not to mention integrations into more than 400 platforms they use to run their business, from CRM to billing to invoicing.”

Transforming how the world pays

Businesses and partners will benefit from a full-service provider with a “relentless” focus on bank payments, enabling disbursements and payment collection through direct debit, real-time payments and open banking, alongside enhanced features for improving payment success and reducing fraud.

Brian Hanrahan, co-founder and CEO of Nuapay, said: “How the world pays and gets paid is being transformed, with account-to-account payments and open banking playing the central role in that shift. Building on that shared vision, this acquisition will result in a combined organisation with deep domestic and international payments and open banking expertise plus the scale to harness these opportunities for our clients and partners.”

The announcement is the latest milestone for GoCardless as it accelerates its path to profitability. In the last year, it has launched GoCardless Embed, a white-label product to PSPs to acquire customers at scale, and has engaged in new partnerships and renewed existing agreements with the likes of JustGiving, Xero and Ecommpay.

Going beyond merely financial support, Tandem, the green, UK digital bank, will provide employees with two days of paid volunteering annually as it looks to encourage involvement with five employee-selected charities across the UK.

This comes as a part of the bank’s transformed charity partnerships programme, as it has committed to support five charities across its offices. With paid volunteering acting as a way to encourage a first step into doing good for the community, Tandem has also set a target of one million minutes of volunteering by 2026.

Five causes close to home, handpicked by local employees

Five causes have been designated as charity partners for the bank, handpicked by Tandem employees to champion across the year in line with its ethos of grassroots community engagement. Furthermore, Tandem has worked with the partners to develop opportunities for employees to have a substantial and coordinated impact at each.

• Foundation 92: The Salford-based charity was founded by the Manchester United ‘Class of 92’. It focuses on supporting communities to improve their lives through sport, education and bespoke projects. It puts an emphasis on positive physical and mental wellbeing.
• Maggie’s: With its centres across the UK, Maggie’s provides expert cancer care and support and was founded by Maggie Keswick in Edinburgh in 1996.
• The BoatHouse Youth: A longstanding partner of Tandem (Tandem is a platinum supporter), Blackpool’s Boathouse Youth works with children and young people aged 5-17, from deprived communities across the area – a vital cause for Tandem’s HQ.
• Trees for Life: Tying into Tandem’s green ethos, Trees for Life is focussed on rewilding the Scottish Highlands, planting space for wildlife and communities to thrive. Tandem has already worked with the charity and has planted over 10,270 trees, and has a dedicated grove in Dundreggan.
• Felix Food Project: The London-based charity is focused on fighting hunger and food waste across the city. It rescues food waste from industry and delivers it to over 900 frontline charities and schools.

Rewarding engagement and involvement

Beyond financial support, the bank believes in grassroots support. It also encourages its staff to get involved, with two days of paid volunteering. The bank has also set a target of one million minutes of volunteering by 2026. This equates to an equivalent value of just under £200,000. So far, 500 hours have already been clocked up.

To boost employee engagement further, Tandem will host Health and Wellbeing Roadshows. These will spotlight volunteering opportunities and initiatives accessible to all. Notably, top volunteers stand to also win prizes, including cash rewards towards energy bills, and supermarket vouchers.

Commenting on the new programme, Tandem CEO, Alex Mollart, said: “I’m delighted to officially announce our newly revamped charity programme. We’ve done some great work in supporting some great causes over the past. However, I’m excited that the new Tandem can have a more coordinated approach. Not to mention one that touches on more charities – with five partners.

“What’s important is that these partners have been selected by our staff – the ones which matter to them. With our support, they can punch above their weight in terms of impact. Especially as many offer vital lifelines in the community.

“The team’s already started 2024 with a bang, but we’ve got big ambitions. I’m proud that we can encourage them further with paid volunteering days and a business-wide target of one million minutes. We can’t forget our new roadshows and prizes.”

In a move that enables it to launch as a fully operational bank, Griffin, the full-stack banking-as-a-service (BaaS) platform, has received approval from the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA), to lift restrictions. 

Griffin offers a full-stack platform for technology-driven firms looking to offer banking, payments, and wealth solutions to their customers.

Griffin’s launch follows a successful mobilisation period and has been backed by a £19million funding round led by MassMutual Ventures, NordicNinja and Breega, with further participation from existing investors Notion Capital and EQT Ventures.

John Weguelin, board chair at Griffin, said: “This pivotal moment is only possible because of the support of our investors, the guidance from our regulators and the commitment of our people. A big thank you to all our existing investors and a warm welcome to all our new investors. We look forward to working with all our investors in this exciting new chapter for Griffin.”

David Jarvis, CEO of Griffin, commented: “Today’s announcement is a culmination of years of hard work by the incredible team at Griffin. I’m particularly grateful to our pilot customers for placing their trust in us, and look forward to helping them continue to scale innovative products at the intersection of technology and finance.”

Griffin’s automated compliance technology and integrated ledger enable its customers to streamline their financial operations while continuing to deliver high-quality service.

Dan Shellard, partner at Breega, the venture capital company, also explained the decision to back the bank: “Griffin is exactly the sort of founder-led business that we look to back. The hard work the team has done over the last several years in building their own core banking platform and securing a UK bank licence has them incredibly well positioned to power this generation of innovative financial products – and the next.”

Building a ‘deeply human’ culture

As part of its launch, Griffin has reiterated its commitment to building an enduring business of consequence, and aims to embed sustainable business practices at every level. The bank explained that it has invested in a “deeply human” and ethical culture with robust governance and financial controls. Griffin is now a member of Tech Zero and is actively working to reduce its carbon footprint and minimise its environmental impact.

Two of the round’s co-leads, NordicNinja and Breega, are EU Article 8 funds with a heavy focus on sustainability. Jesse Saarela, principal at NordicNinja commented: “The team’s commitment to helping their customers as well as everyone impacted by their business is very unique, and I am looking forward to working with them further.”

Griffin is poised for accelerated growth and is committed to scaling responsibly as pilot customers go live. The bank will also take on new customers via its early access programme, Foundations. Griffin will work closely with Foundations participants to help them enhance their offering with seamless, contextual finance embedded directly into their customer experience.

Ryan Collins, managing partner at MassMutual Ventures, said: “Our continued support for Griffin is a testament to its extraordinary progress to date. As the UK’s first full-stack BaaS platform with a banking licence, Griffin is the partner of choice for fintechs and brands to build innovative financial products with a seamless client experience.”

Financial incentives related to switching banking providers have been well-publicised across the UK. However, new research suggests that for many UK consumers, a positive customer experience ranks as a higher priority, leaving many happy to simply stay put. 

In fact, good customer service is the main reason that around 40 per cent of UK consumers stay with their current banking provider; European customer service software provider Odigo has revealed. The importance of feeling valued by their bank was also highlighted as it revealed that 47 per cent realise they miss out on better financial service deals by not switching.

The findings show that amid ongoing financial constraints, around 19.4 million UK adults consider good customer service at least as equally as important as financial savings.

This comes as financial expert and consumer champion Martin Lewis recently claimed that anyone with a bank account risks losing around £200 by not switching now. However, the Odigo research shows that 35 per cent of consumers believe they don’t lose money by staying with their current provider; while 40 per cent of consumers also cite strong reputation and trust as another key reason to stay with their banks.

At the other end of the spectrum, poor customer experience was named as one of the top reasons to swap providers by 35.7 per cent of consumers. Around 37.4 per cent named better interest rates as a reason to stay.

‘Good customer service is still king’

Vincent Lascoux, chief customer success officer at Odigo, offered his take on the findings: “The research has spoken – despite the financial challenges and difficulties faced by consumers, good customer service is still king when it comes to retention.

“Whilst banking providers should continue using financial benefits, such as cash incentives and better-saving rates, to encourage customers to switch, as part of their strategy, this must not come at the expense of a positive experience for their existing customers.”

As banks continue to focus on digitally innovating their offerings and processes, they cannot afford to let the quality of their customer service drop. Instead, they must look at investing in platforms such as chatbots, website updates, and social media reactivity to ensure they are meeting customer expectations.

Investing in customer service is especially important for incumbent banks that are facing increased competition from challengers, such as Monzo and Starling Bank who ranked at the top of the Competition and Markets Authority (CMA) and Which? customer satisfaction rankings.

The Bank of Tanzania (BOT) has approved Unlimit, the global fintech company, with a licence allowing the firm to act as an authorised payment service provider in Tanzania. 

The approval of Unlimit as an authorised payment service provider by the BOT will allow the fintech to provide a range of new offerings such as business payments, merchant services and outbound payments, among other things, to the Tanzanian market.

The launch of Tanzanian operations marks an important step in Unlimit’s broader strategy of expanding into Africa, and follows the approval of similar licences last year in Nigeria and Kenya.

Expansion across Africa

By launching operations in a third African country, Unlimit has underscored its continued commitment to enhancing its presence and investment in the region by expanding the reach of its proprietary payment infrastructure across the continent. The addition of this infrastructure will remove existing barriers to regional and global trade for the country’s entrepreneurs, as Unlimit continues to work towards its mission of eliminating financial borders around the world.

Trevor Goott, director for Africa and India, Unlimit said: “It’s a tremendous opportunity to launch our operations in Tanzania and we’re excited to bring our unparalleled payments infrastructure to yet another market in Africa.

“Through digital payment solutions expertly tailored to the continent, we strongly believe we can help consolidate the fragmented African payments landscape and drive broader economic growth by providing the best possible support to local businesses and entrepreneurs. We are building for the long-term.”

Peter Mlay, head of Tanzania, Unlimit said: “We thank the regulators for their support and guidance. Now, we are looking forward to onboarding international and local merchants, businesses and entrepreneurs. We are also driving more value and consumer choice across the Tanzanian market through our unique payment solutions.”

Many firms in developing regions are looking towards technology as a way of advancing their financial marketplaces. For example, in Rwanda, I&M Bank (Rwanda) Plc., the oldest bank in Rwanda and licensed by the Central Bank of Rwanda, and Network International (Network) have partnered to improve financial inclusion in the country. 

The agreement with Network International will reinforce I&M Bank’s digital-first strategy and leadership in the Rwandan market. Amidst surging interest in digital payment solutions across the country influenced by rising internet penetration and mobile phone usage, Network will enable I&M Bank to benefit from advanced digital payment solutions, robust security protocols and a sophisticated API gateway.

Through this partnership, Network will offer a variety of payment products and services including credit and prepaid card hosting and processing. The bank will also have access to a host of value-added services such as card fraud prevention, 3D secure authentication, and card control solutions.

Benjamin Mutimura, CEO of I&M Bank (Rwanda) Plc., emphasised the importance of customer delight, stating: “Our partnership with Network International complements our desire to facilitate the inclusion of more citizens in the formal financial system. Our collaboration with a market leader like Network International will help us satisfy the growing demand among Rwandans for new and superior digital banking experiences that are convenient, safe, and seamless, thereby ensuring customer delight.”

Dr. Reda Helal, group managing director – processing, Africa and co-head group processing at Network International, commented: “We are excited to collaborate with I&M Bank in meeting the rising interest among Rwandans, especially the unbanked, for services that support a digital lifestyle.

“We welcome the opportunity to support I&M Bank’s passion for providing best-in-class digital customer experiences by enabling innovation and enhanced operational efficiency, as well as broaden our contributions to the success of Rwanda’s financial inclusion strategy.”