CEO fraud: How to Protect your Organization from Fraudsters?
This article is written by Trustpair CEO fraud is otherwise known as impersonation fraud, performed by highly organized criminals in targeted cybercrime attacks. Businesses often feel helpless regarding CEO fraud, since it’s not just about the hackers but also about the actions of their employees. But there are ways to prevent it, and in this article, you’ll learn how to protect your business from it. Read on for details! What is CEO Fraud? CEO Fraud is a type of impersonation or identity theft that can defraud companies out of thousands. Criminals send out emails to an unsuspecting employee pretending to be the CEO or another senior executive and ask them to deposit funds into a business account… except it’s not a business account. Instead, it’s an entirely separate account belonging to the criminals themselves, enabling them to steal huge amounts from organizations. Sometimes the fraudsters send a fake invoice and request an urgent payment for a “secret” partner or vendor. By placing high-pressure and time-sensitive conditions on their email requests, scammers can avoid scrutiny. It’s an effective tactic and executive fraud events (another name for CEO fraud) often appear in the news. In fact, in 2021, more than $2.4million was lost by businesses to CEO fraudsters. Impacts of CEO fraud There are three major impacts of CEO fraud scams on b2b organizations: In financial terms, CEO fraud has been known to cause millions of dollars of loss. For example, European company Leoni AG lost €40 million to a CEO fraud attack in 2016. The money was never recovered. In a regulatory sense, there are legislations all around the world that firms must adhere to, which help prevent CEO impersonation fraud. For example, here in the US, we follow SOX Law to increase levels of transparency and be able to trace accountability for certain decisions. SOX Law also helps prevent money laundering. Without detective controls (such as a traceable paper trail) that the regulations require, a case of CEO fraud would expose your company for not following the regulatory requirements. Non-compliance is another serious problem, leading to fines or imprisonment for senior executives. Finally, the reputational impacts of fraud (CEO scams in particular) could do the most damage to the business. When confidential company security systems are breached you have a duty to inform your customers (and sometimes, the authorities). This can generate mistrust of your brand among consumers, also causing stocks to tumble. In the case of Leoni AG mentioned above, the stock value dropped by 5-7% overnight. How does CEO fraud happen? CEO fraud attacks usually happen through a technique called spoofing. This impersonation technique allows the criminal to bypass cybersecurity and imitate the business email address of a senior manager or CEO. The employee will be asked either for a cash transfer from the company accounts or to share confidential information. Most often, mobile email users fall for this as the default email address doesn’t show in full on a mobile screen. Plus, the scammers use urgency techniques to rush the employees into making a decision without rational thinking. Finally, those without security awareness training are also likely to fall victim to a spear phishing attack from cybercriminals. In the past years, these attacks have become more and more sophisticated and linked to cyber fraud. On top of that, cybercriminals use social engineering techniques that make the attacks more credible and difficult to detect, even for a trained and cyber-aware employee. What’s the difference between CEO fraud and phishing? It’s important to note that CEO fraud is a separate ploy from phishing, even though there are some similarities CEO fraud is a much more targeted attack since the scammers already have insider information about the company’s background and how it is run. This is how they are able to spoof the CEO so convincingly. Instead, phishing scams are less targeted. Criminals will pretend to be a third-party company that deals with the business (think suppliers or delivery companies). Then, they send out the same email to thousands of employees from different organizations, hoping that one or two recognize the supplier and think the email is legitimate. However, both are types of Business Email Compromise (or BEC). What to do if you suspect you’ve fallen victim to impersonation fraud? First things first, contact your CEO or the person who you thought instructed you to carry out the payment or share information. Double-check their credentials and verify the information with your exec. Then, once it’s confirmed that you’ve fallen victim to a CEO fraud scam, notify your bank immediately. Provide evidence like the fraudulent email so that they can begin investigating immediately. Notifying the police to report the crime is also wise. Being reactive about it is the only chance you’ll have of getting your money back – even if it doesn’t guarantee it. If other confidential information is shared, be sure to change passwords immediately and perform an audit of your security. Now, it’s about risk management. Try to update your antivirus software to protect your email security against malware, too. What to do to prevent CEO fraud efficiently? Email fraud is not a new scam, but the way that criminals do it is constantly evolving. This is supposed to catch even the most suspicious of employees. But there are some things that you can do to help prevent CEO fraud in your organization. These include: Fraud Protection One of the best fraud protection methods is by using fraud prevention software like Trustpair. It automatically verifies banking information with the card number and account name and tracks historical finances to notify your business about anomalies and suspicious behavior. Any employee trying to wire money to an unknown account will be flagged and the transfer will be blocked. Moreover, installing a good antivirus program within the email system can help filter whaling scam attempts and junk more efficiently than the standard email software. Building a company culture that doesn’t involve high-pressure decision-making would also make an employee stop and question a time-sensitive rogue email. This means ensuring the payment approval process goes through several verification steps and empowering even junior staff to think for themselves. You…
Franklin
FX Gains and Losses and Balance Sheet Hedging
This article is written by HedgeFlows Most businesses that trade internationally have FX gains and losses in their accounting systems and, if they are material enough, in their statutory reports. Their accountants often shy away from explaining these numbers to them. Even fewer would dare to guide their clients on minimising such losses. Yet, the answer is often simple – a straightforward Balance Sheet hedging programme. Understanding FX Impact At the core, it’s essential to grasp how foreign currencies affect business finances. Fluctuating exchange rates can lead to significant FX gains or losses, impacting the bottom line. These numbers are automatically produced by accounting systems, rarely looked at in great detail unless there is a big problem and thus rarely understood by business owners and their finance teams. A Well-Trodden Path – Balance Sheet Hedging Balance sheet hedging programmes have been used by businesses to minimise the impact of currency fluctuations on financial statements for years. Such a programme can be contained on a single-page document and have a simple goal – a zero number in the FX gains and losses line. The principle is simple – identify any material balance sheet items in foreign currencies and take steps to remove the sensitivity to FX swings, usually by hedging with FX forwards. Effective Hedging Strategies A few different techniques are worth considering when deciding how to deal with FX gains and losses: Data-Driven Decision Making Timely and accurate financial data is the backbone of successful hedging. It allows for precise risk assessment and informed strategy formulation. Systems like HedgeFlows can streamline this process by connecting to existing data in ERP or accounting systems. Pitfalls to Avoid Overhedging and underhedging are common mistakes. Balance is key to avoiding unnecessary costs or exposure to risk. Conclusion 2024 promises to be another uncertain year. Mastering balance sheet hedging is essential for avoiding FX gains and losses. It’s not just about mitigating risks; it’s about empowering your clients to thrive in a global market. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Changes: Proactively managing business transformations
This article is written by Cobase David Bowie’s timeless track “Changes” challenges listeners to face change head-on and embrace the new, making it an apt metaphor for the dynamic world of business. In this blog post, we’ll delve into the importance of proactive transformation in business, especially within financial operations. We’ll explore strategic approaches to anticipating and managing change effectively, ensuring that your business not only adapts but also thrives. Recognizing the need for change Change in business, much like in life, is inevitable. Whether driven by market conditions, technological advancements, or internal business needs, the ability to recognize and respond to change is crucial. For financial operations, this could mean adopting new technologies, restructuring to improve efficiency, or revising financial strategies to better align with the company’s objectives. For instance, according to a McKinsey report, 70% of organizations that consistently scan the environment and react quickly outperform their industry peers in profitability and growth. Strategies for proactive transformation Leading change effectively Leading through change is about more than just implementing new processes—it’s about leading with vision and empathy. Communication plays a critical role here. Clearly articulate the reasons for changes and the benefits they will bring to the team and the company as a whole. Involve employees in the change process, seeking their input and addressing their concerns. Leading change requires vision and empathy. Effective communication is crucial; a study from Forbes highlights that companies with effective change communication strategies see 55% greater employee engagement during transformation periods. Conclusion: mastering the art of change Just as David Bowie’s “Changes” echoes the sentiments of evolution and reinvention, businesses must also learn to master the art of change. By being proactive rather than reactive, businesses can ensure that they not only keep up with the pace of change but also use it to their strategic advantage. The key to successful business transformation lies in anticipating changes, planning with flexibility, and leading with decisive, informed action. Embrace change as an integral part of the journey toward business excellence. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Making the Digital Euro Truly Private
The European Central Bank (ECB) is actively working on developing a central bank digital currency (CBDC) known as the digital Euro, with a significant focus on ensuring privacy for users. The ECB’s recent blog post, “Making the Digital Euro Truly Private,” outlines their approach and the principles guiding this development. The ECB emphasizes that privacy is a fundamental right and must be preserved even in the context of digital currencies. They acknowledge the delicate balance between providing privacy and preventing illicit activities such as money laundering and terrorist financing. To address this, the ECB has proposed a tiered privacy model. Key Points of the Digital Euro’s Privacy Features 1. Tiered Privacy Model The digital euro will offer varying levels of privacy depending on the transaction type and amount. Smaller, everyday transactions might have higher privacy levels, akin to cash payments, where user identification is minimized. In contrast, larger transactions will require more stringent identity verification to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. 2. Anonymity and Traceability The ECB is exploring technologies that ensure a high degree of privacy while maintaining necessary traceability. This includes pseudonymization techniques, where personal data is not directly linked to transactions, reducing the risk of privacy breaches. 3. Legal and Regulatory Framework The ECB is working closely with European and international regulatory bodies to ensure the digital euro complies with existing privacy laws and financial regulations. They are committed to transparency and accountability in how data is handled and protected. 4. Public Consultation and Feedback The ECB has actively sought input from the public, financial institutions, and other stakeholders. They conducted a public consultation in which privacy emerged as a top concern among respondents. The feedback has been integral to shaping the design and features of the digital euro. 5. Technological Safeguards Advanced cryptographic methods and secure hardware are being considered to protect users’ data. The ECB is also exploring decentralized technologies to enhance privacy and security, ensuring that the digital euro remains resilient against cyber threats. Benefits and Challenges The digital euro aims to provide a secure, efficient, and privacy-respecting digital payment option, complementing cash rather than replacing it. However, the ECB acknowledges challenges, particularly in balancing privacy with the need for financial oversight and regulatory compliance. Conclusion The ECB’s development of the digital euro with a strong emphasis on privacy reflects their commitment to protecting user data while fostering innovation in digital payments. As the project progresses, the ECB will continue to refine its approach based on ongoing consultations and technological advancements to ensure the digital euro meets the privacy expectations of European citizens. For further details, you can read the full article on the ECB’s website Insights from Treasury Experts We thought it would be valuable to get perspectives from two Treasury professionals, Lorena Sandroni and Sebastian Muller Bosse, who are also Treasury masterminds board members Q: The article published by the ECB states that the digital euro will be more private than current digital payments. Do you think it will? Do you have concerns? How about the limitations of use (maximum use amount per person: €3,000)? Sebastian Muller Bosse, Manager Administration & Operations at Finance & Treasury Services GmBH, Comments The introduction of the digital euro will face challenges, as there are already many competing products that are established and convenient. The biggest advantage I see is the lower transaction fees (compared to PayPal and others), which will be especially beneficial for merchants. Unfortunately, the end consumer, who is the primary user of the digital euro, will notice this less, unless the merchant passes on the savings to the consumer. The EU is not particularly known for innovation and does not have a large marketing department. The EU often appears cumbersome, and good, factual arguments can quickly fall victim to the halo effect. Additionally, the fact that it is a (supra-)governmental regulation can cause unease and mistrust among many. Many prefer to trust private providers that they already use for other products, such as Alipay, Google Pay, Apple Pay, or WeChat. The EU needs to do a lot to build acceptance and trust compared to these big brands, especially among Germans who love their cash. Privacy concerns also pose a significant challenge. For users, verifying privacy is difficult since it relies on technical mechanisms that cannot be easily checked. Privacy is more about perceived privacy than actual privacy; otherwise, many more people would use technologies like Telegram instead of WhatsApp or would stop using Facebook. However, only a few people really read the terms of service and understand what happens with their data. As a new player in the market, the EU can claim that it is more private, but it must prove this convincingly to make people perceive the other players as “less secure.” This will be a tough call. In other parts of the world, a digital currency has already been established. For example, China has already introduced a digital central bank currency (Central Bank Digital Currency, CBDC) with the e-yuan. However, it is much more common there to pay with a mobile phone in a digital wallet, which is the most common method among consumers. The hurdle of transitioning from cash to card payments and then to mobile payments is comparatively large in the EU. People are not used to it and may also have security concerns. Lorena Sandroni, Head of Treasury at PayU, Comments The ECB seems to be expressing the support to endorse that individual will be able to obtain digital euros through their PSP. It seems to be a direction to ensure that central bank money is a crucial part of the payment system and build trust in the euro currency. In this sense, PSP are expected to play a crucial part for individuals to obtain digital euros, however the main challenges will be PSP ensuring robust cybersecurity measures, scalability, and compliance with regulatory requirements(KYC/AML-ECB guidelines ). All this without compromising the customer experience but also adding interoperability between different PSP…
What are the benefits of digital transformation?
This article is written by Trustpair Technology is changing our day-to-day habits and our way of doing business. To set themselves apart in an increasingly competitive market, it is essential for businesses to embrace the new trends of the digital world. The use of efficient software allows companies to meet market demands by increasing productivity and revenues. Digital transformation means the introduction of new technologies, the improvement of current technologies, and the modification of business models and processes. But it also has to do with cultural change. Read on to learn about some of the benefits of digital transformation that explain why a digital company is much more competitive than a traditional company. Increased Customer Satisfaction Adopting a digitalization strategy means businesses are ahead of direct competition. Data collection, analysis, and use improve the relationship with clients, Data-driven organizations are 23 times more likely to acquire clients and 6 times more likely to retain them. And they are 19 times more likely to be profitable. This allows organizations to stay on top of their market. One of the business benefits of digital transformation is that it allows companies to improve their knowledge of their customers’ habits. Users are always connected, informed, and updated about products and services and their use or consumption. Offering a unique purchase/use/consumption experience generates an involvement that leads to re-purchase, word-of-mouth marketing, and loyalty. Technology helps you improve user experience and customize it to specific groups of clients, which in time increases revenue. Data-Based Insights First of all, you have to understand what is this numerical data we keep talking about. It’s all the information and traces that users leave on the Internet: every time they click on a site and browse its pages, interact on social networks, search on their smartphones… Each action leads to the generation of a large amount of data that can be analyzed and used by companies to get more information about their target audience. These insights are critical to drive innovation and improve user experience. Software Monetization Other digital transformation benefits: today, business leaders know that they need to move from a product-centric to a software-centric approach, and that software monetization brings the best return on investment. Yet many companies are sitting still because they don’t know how to start monetizing their software. Digital transformation allows for the monetization of software. Using a software management solution creates a digital framework that will help you identify new revenue streams, create and secure software licenses, interact with your customers, and access business-critical data. Each organization can customize its business plan to its specific products ( Cloud solution, app-based, subscription model, etc). High-Quality User Experience New software, social media, and applications meet users’ needs to make their lives easier. So the main goal of digital transformation is to use technology to improve the customer (and employee) experience. Operations that could be time-consuming and tiresome – like requesting a wire transfer for example – are now streamlined by online technologies. Improved Collaboration & Communication All businesses are faced with an internal communication challenge: the more they grow, the harder it is for employees to communicate efficiently. They might have different tools or no tools at all, and conduct all operations in person. In a globalized world, it’s getting harder – or impossible – for organizations to work this way. Better collaboration and smooth communication are critical for overall productivity. To improve innovation and results, you need a digital platform that promotes communication and collaboration across all internal departments. Digital transformation eliminates indirect communications, slow response times, information leakage, and ineffective sharing of ideas. By digitizing your company’s internal communications, you will increase productivity, reliability, and creativity, acquiring the benefits of digital transformation you need to outperform the competition. Increased Agility Digital transformation generates faster, simpler, and more efficient processes and workflows. Creating automated digital workflows, designed to manage information, gives employees time to focus on business value-added activities and develop assigned projects and tasks faster. Collaborative platforms are a good example: rather than sending 10 emails to proofread a document, all stakeholders can use a single interface to add their comments and notes. These changes affect different departments, from marketing to finance or customer support. Limits Human Error One of the benefits of digital transformation is the elimination of time-consuming manual data entry, and thus of inefficiency and human error. Digital processes are less risky than those that require human intervention. Even with the best possible training, employees of international organizations are bound to make a mistake at some point or be distracted. Unfortunately, the smallest error can lead to severe security issues, data breaches, or even financial fraud. Making small mistakes can have a big impact on companies. Encourages an Environment of Employee Excellence Digital transformation creates an optimal work environment for employees, redistributing activities, accelerating collaboration, and leading to greater well-being and productivity for each employee. Increases Operational Efficiency Digitalization makes it possible to set up new services and improve management times for processes and activities. For example, in the industrial production sector, software enables faster warehouse and logistics management, better control of sales and customer service, and faster customer response. Automation is the ultimate example. Indeed, with automation solutions, you can actually remove the most tiresome tasks and processes, without neglecting quality. For example, with fraud prevention software like Trustpair, you can remove manual controls of vendor data and replace them with instant and automated account validation, directly on the platform. On average, teams using Trustpair spend 10 times less on fraud prevention than they used to. Enables Future Digital Growth Among the other benefits of digital transformation, this is the most important. Digital transformation is the initial act that paves the way for further growth of the company. Without investing in digital transformation, your business will soon become obsolete. To survive in the digital world, you must strive to keep rhythm. After that, you can enjoy the benefits of digital transformation, as well as strengthen and increase your revenues for years to come. Technology and what comes with it is a key…
Reuters FED Interest Expectations
The article from Reuters discusses how U.S. Treasury yields remain high due to lowered expectations for Federal Reserve interest rate cuts. Initially, markets anticipated significant rate cuts in 2024, but strong economic indicators and persistent inflation have adjusted these expectations downward. Currently, traders foresee only two modest rate cuts next year. This change has caused Treasury yields to be volatile, standing at around 4.44%. The Federal Reserve’s upcoming decisions and economic data releases will be critical in shaping yield movements, with analysts predicting only a slight decrease in yields by year-end. Recommended Reading Key Points: This context highlights the intricate relationship between Federal Reserve policies, economic indicators, and Treasury yield movements. For more detailed information, you can read the full article on Reuters Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Top 5 Mistakes Businesses Make With International Transfers
This article is written by HedgeFlows International money transfers are a critical component of global business operations. However, the complexities of cross-border payments often trip up even the most experienced financial managers. Here are the top five mistakes businesses make with international transfers, along with essential tips to avoid them and ensure your money reaches its intended destination efficiently and securely. 1. Failing to Verify Recipient Details Mistake: Not confirming the recipient’s details can lead to funds being sent to the wrong account—a costly and sometimes irreversible error—or, even worse, becoming a victim of fraud. Prevention Tip: Always double-check all recipient details, including their name, bank account number, bank name, and country of residence. Consider implementing a verification call or email to ensure everything is accurate before you transfer. Implement a robust approval process to reduce the risk of wrong or fraudulent transfers. 2. Incorrect Recipient Name Mistake: In certain countries, such as China, the exact spelling of the recipient’s name is necessary. A minor discrepancy can lead to transfer rejection. Prevention Tip: Be extra cautious with the spelling of recipient names. Always request written confirmation of the recipient’s full name and ensure it matches their bank records exactly before initiating the transfer. 3. Confusing Correspondent and Recipient Bank Details Mistake: It’s easy to mix up correspondent and recipient bank details when sending SWIFT payments, which can send your money into banking limbo. Prevention Tip: Focus on the intended recipient’s bank details and use only those for the transfer. Correspondent bank information is not usually required but consult with your bank or payment provider if in doubt. 4. Using Expensive Swift Transfers where Cheaper Alternatives Exist Mistake: SWIFT transfers come with additional fees, which can add up if you make many payments. In many cases, alternative payment routes, such as SEPA for payments in Euros or ACH for USD payments to recipients in the US, can save money and often time. Prevention Tip: Explore different payment options and compare fees before making a transfer. In general, direct and local payments tend to be more affordable than SWIFT transfers. 5. Overlooking Transfer Fees and Hidden Costs Mistake: Businesses often focus on the convenience of the transfer without considering additional costs, which can pile up and make transactions more expensive. Prevention Tip: Understand the fee structure of your chosen payment provider, including the difference between flat fees and percentage-based charges. Comparison shopping and negotiating better terms with providers can lead to significant savings. Remember, due diligence and attention to detail are paramount when dealing with international transfers. By avoiding these common mistakes and following the prevention tips, you can ensure your business’s funds reach their destination safely while minimizing unnecessary costs and delays. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Money’s Too Tight: Dealing with financial constraints
This article is written by Cobase Simply Red’s “Money’s Too Tight (To Mention)” resonates deeply with anyone who’s faced economic hardships. The song’s lyrics paint a vivid picture of the struggles associated with financial constraints. It mirrors the challenges many businesses face today. In this blog post, we’ll explore effective strategies and solutions that can help companies deal with these difficult financial circumstances. In order to insure sustainability even when funds are tight. Understanding the depth of financial limitations The first step in managing financial constraints effectively is to know the full scope of the issue. For businesses, this means carrying out audits and financial reviews to identify where the money is tightest. This process can uncover unnecessary expenditures, inefficient processes, or areas where the company might be losing money without knowing it. For instance, a report by Deloitte found that companies that carry out thorough audits could identify and rectify spending that they do not need. Saving on average 10–15% in operational costs annually Strategies for financial optimization Building resilience through strategic planning Strategic planning is more crucial than ever during financial hardship. Businesses need to not only adjust to the present but also plan for future financial stability. This includes setting realistic financial targets, creating contingency budgets, and continuously monitoring financial performance against set benchmarks. A survey by Boston Consulting Group highlighted that companies with dynamic strategic plans could respond 33% faster to market changes, thereby maintaining continuity and competitive advantage during financial downturns. Conclusion: thriving amid financial constraints Just like the themes talked about in “Money’s Too Tight (To Mention),” businesses often find themselves in tight financial spots. However, by implementing rigorous financial management and optimization strategies, businesses can take charge of these challenges effectively. The goal is not just to survive these hard times but to emerge stronger. More agile and ready to capitalize on opportunities when economic conditions improve. These strategies ensure that even when money is tight, your business can still achieve success. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Bunq Unveils its own AI Money Assistant
Bunq, a prominent European Neobank, has partnered with Mastercard to innovate in open banking by introducing a new generative AI platform named Finn. This move marks Bunq as the first AI-powered bank in Europe, showcasing its commitment to leveraging advanced technologies for enhanced user experiences. To learn more about Bunq AI Finn, check [HERE]. Recommended Reading Key Features of Finn 1. Generative AI Integration Finn replaces the traditional search function within the Bunq app, offering users a chat-style interface where they can ask questions about their finances. This integration allows for more personalized and efficient management of financial activities. 2. Advanced Query Handling Users can inquire about detailed aspects of their spending and savings. For example, Finn can answer questions such as “What is the average amount I spend on groceries per month?” or “How much did I spend on Amazon this year?” It can also provide contextual answers, such as identifying a specific restaurant visit or the amount spent at a particular location on a given day. 3. User-Centric Approach The platform is designed to enhance user convenience, allowing them to manage their finances seamlessly. According to Bunq’s founder and CEO, Ali Niknam, the goal is to make banking more intuitive and aligned with users’ lifestyles through the use of cutting-edge AI technology. Impact on Bunq’s Growth The introduction of Finn is part of Bunq’s broader strategy to expand and innovate. Neobank has seen significant growth, now boasting 11 million users across Europe. Since July 2023, user deposits have increased by 55%, reaching 7 billion euros. This growth is attributed in part to the successful integration of AI, which has helped Bunq attract and retain a larger user base. Additional Features and Services 1. Free Credit Cards Bunq now offers free credit cards that can be set up in just five minutes and used immediately through Apple Pay or Google Pay. This service aims to provide greater financial flexibility and convenience for users. 2. Tap to Pay Leveraging Apple’s Tap to Pay technology, Bunq allows business users to turn their iPhones into payment terminals, facilitating on-the-go payment acceptance. This feature is available to all Bunq users at no extra cost, further enhancing the app’s functionality. Strategic Significance The partnership with Mastercard and the launch of Finn underscore Bunq’s ambition to redefine banking through technology. By focusing on AI-driven solutions, Bunq aims to set a new standard in the neobanking sector, emphasizing user-centric innovation and international expansion. This strategic move aligns Bunq with tech giants like Google and Amazon, which are also at the forefront of AI development. In summary, Bunq’s introduction of the Finn AI platform in partnership with Mastercard represents a significant advancement in open banking, highlighting the bank’s commitment to innovation, user convenience, and rapid growth in the European market. Insights from Treasury Experts We thought it would be valuable to get perspectives from a Treasury professionals, Royston DaCosta and Sebastian Muller Bosse, who is also a Treasury masterminds board members Q: What do you think of this, Royston and Sebastian? What does this mean for the future of banks/banking? Royston Da Costa, Assistant Treasurer at Ferguson PLC, Comments Excellent innovation-this will be the future for at least retail banking! There is still the caveat, in my mind, that AI is not perfect yet and all data/answers must be vetted or handled with some care. Of course, the game changer is when corporations are able to take advantage of this functionality. I believe “Finn’s” advanced query handling functionality is already available with some FinTech/Banks but I agree with the idea that it should be more widely available. A great way for the app to be user-centric is it could for example, analyse your monthly spend and automatically invest your surplus cash for the days its not required, to maximise the interest you earn on your cash balances? It makes sense (that Finn is part of Bunq’s broader strategy to expand and innovate), although caution should still be applied, i.e., we would not wish to experience a repeat of SVB, i.e., ensure you invest up to the limit covered by the Central Bank and diversify your investments with multiple counterparties. Bunq’s free credit card offering sounds great but is this too good to be true, i.e., what sort of limits are offered and/or is everyone really eligible? Although, its Tap to Pay technology is not farfetched, because it has become the standard method of payment for the current generation! Bunq’s partnership with Mastercard and the launch of Finn underscore its ambition to redefine banking through technology but Bunq does not have the financial power that Google and Amazon hold! In conclusion, I believe Bunq’s AI money assistant is a positive step and will enhance value for consumers (and hopefully for corporations soon). Banks/banking will have to seriously ratchet up their game if they wish to keep up with this innovation! It is interesting to me that I am seeing a two tier race developing, i.e., Fintechs/Banks investing and developing technology that is ‘future proofed’ vs. mainly banks that either refuse or are not willing to invest in technology and WILL lose customers as a result. Furthermore, the banks that are not willing to upgrade their technology will find it increasingly difficult to adapt to new regulations as they arise. Sebastian Muller Bosse, Manager Administration & Operations at Finance & Treasury Services GmBH, Comments The feature to look at your overall spending, search for specific transactions , and transactions being automatically categorized by a banking app isn’t necessarily new to retail customers. The ability to ask questions directly rather than just looking at default graphs, exporting data and making own calculations is of course a much more convenient way and will ease the use of adoption (especially for the older generations!). For innovators and early adopters these AI features will likely be a reason to try it out and to expect these kind of features in future. For the late majority and laggards it could feel more like…