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What is a 𝐬𝐭𝐚𝐛𝐥𝐞𝐜𝐨𝐢𝐧? Is it going to change the payment flow? 👇 The diagram below shows how fiat-backed stablecoin USDC is created and destroyed. 𝐅𝐢𝐚𝐭 → 𝐒𝐭𝐚𝐛𝐥𝐞𝐜𝐨𝐢𝐧 Step 0 - A ERC-20 smart contract is deployed on the blockchain, with stablecoin token detail. Step 1 - Bob transfers $100 from his fiat wallet to the custodian (a bank or a trust company) who maintains the fiat reserve for the stablecoin issuer, in exchange for 100 USDC. Step 2 - The custodian confirms the transaction and asks the stablecoin issuer to mint and transfer stablecoins. Steps 3 and 4 - The stablecoin issuer mints new tokens and transfers them to Bob’s crypto wallet. It is called “𝐬𝐭𝐚𝐛𝐥𝐞” because it is 1:1 pegged to USD. Steps 5 and 6 - A 3rd-party auditor audits the reserves in the custodian and the tokens in the smart contract. It makes sure the tokens are fully backed by fiat money or short-term bills. In USDC’s case, the reserve contains 22.4% cash and 77.6% T-bills (low risk) as per the audit report. 𝐒𝐭𝐚𝐛𝐥𝐞𝐜𝐨𝐢𝐧 → 𝐅𝐢𝐚𝐭 Steps 1 and 2 - Bob transfers 100 USDC to the issuer in exchange for $100. The issuer burns 100 USDC by calling the smart contract. Steps 3 and 4 - The issuer confirms the transaction and asks the custodian to transfer $100 to Bob’s fiat wallet. 👉 How does stablecoin change the payments?  Bob can easily transfer the 100 USDC to his friend’s crypto wallet via blockchain transaction. There is no need to go through the banking systems or payment gateways/processors. Then Bob’s friend can exchange the USDC tokens for his local currency via an exchange. 👉 Over to you - How does a stablecoin issuer make money in this business model? — 👉 If you like my FinTech posts, please follow Hua Li and click the 🔔 on my profile to receive updates. #systemdesign #payments #fintech #stablecoin .

Much of this applies universally, despite being tailored for banks. McKinsey just released a blueprint to help financial services leaders unlock AI value across the enterprise: Typically 70–80% of incremental AI transformation value in banks comes from just 10 of around 25 subdomains, such as customer underwriting. These priority areas can be transformed using a mix of generative AI, traditional analytics, and digital tools and platforms. Integrated via a tech stack powered by multi-agent systems, incorporating 'New elements' (highlighted in image below) enabled by advancements like GenAI. Examples of newer elements: → Enhanced engagement layer (e.g. multimodal conversational experiences and digital twins to simulate customer and employee behavior). → AI orchestration handles complex workflows and task planning, while AI agents are instructed to complete specialized tasks, such as fraud detection. Here's a high-level checklist to assess whether leaders are rewiring the enterprise to put AI first: 1\ Establish a comprehensive, bank-wide AI vision with ROI measurement (versus dabbling in AI within silos). 2\ Take a full-stack approach blending GenAI with broader analytical and digital tools (versus seeking value from individual technologies). 3\ Reimagine entire business domains, including optimizing processes and operations (versus deploying narrow use cases in isolation). 4\ Use multiagent systems to automate complex workflows (versus training one model and expecting it to serve as a jack of all trades). 5\ Ensure reusability of components (versus building each AI project from scratch with limited coordination). P.S. McKinsey's full article with more details linked in comments. --- ♻️ Repost to help your network level up! 📌 Want more enterprise insights like this? Get on the list: https://lnkd.in/eJ6QQeru

Various digital banking models in the modern financial landscape In the rapidly evolving landscape of modern banking, the financial services sector has undergone significant transformation, leading to the emergence of innovative banking models, each designed to cater to the ever-evolving needs and preferences of the digitally savvy clientele. Within this dynamic environment, three distinct banking models have taken centre stage: Challenger Banks, New Appdriven services, and Banking-as-a-Service (BaaS). BaaS, for instance, offers the potential to revolutionise the financial services industry by integrating financial services into third-party ecosystems. Embracing this model can lead to new revenue streams and new market opportunities, acquiring new customers within a shorter frame of time, at a lower cost. This results in a more inclusive, efficient, and interconnected financial landscape, shaping the industry’s future at an unprecedented pace. What is BaaS? BaaS is the business model where banks offer their banking products and services to non-bank companies with open interfaces. It is transforming the financial industry by redefining the traditional roles of banks in the digital age. BaaS empowers banks to securely distribute their banking products and services through partnerships with ecosystem players such as e-wallet providers, e-commerce platforms, and fintechs. Under this framework, traditional banking institutions, which typically hold banking licences extend their capabilities to a broader network of ecosystem players such as non-bank entities or e-commerce platforms. In turn, these non-bank entities leverage the established banking infrastructure to offer services including payments, deposit accounts and lending to their direct customers. It is important to note that BaaS enables these ecosystem partners to provide financial services legitimately, without the need to acquire their own banking licences; a process that can be both time-consuming and resourceintensive. How Open Banking complements BaaS In markets where there are Open Banking frameworks present, Open Banking plays a pivotal role in advancing BaaS by establishing a secure channel for sharing critical financial information. Utilising Open Banking frameworks, BaaS platforms can authenticate users, initiate payments, determine partner entitlements, and request access to essential bank information and services. While the extent of Open Banking’s capabilities may vary based on market regulations, it provides a versatile foundation for BaaS platforms to deliver seamless and innovative financial solutions to customers. 👉 Subscribe for more insights https://lnkd.in/d94JgWBU Source audax / Though Machine #fintech #payments #banking

Interested to improve your #Linkedin Profile ? Text me in DM #Launchdiscount available Tino Herold https://lnkd.in/d8c3H_sQ

Use AI for your financial research! You want to try it? https://lnkd.in/eFgC_ahF I am partnering with Bigdata.com to showcase that you can use AI for your investment research. The big advantage is that this tool is purely focused on investment data. Another advantage: the company behind (RavenPack) is even giving you access to exclusive investor data that is normally reserved for professionals. Here’s how it helps you stay ahead in the game: 💡 1. Stock Pricing Gain real-time access to data for smarter investment decisions. With Bigdata.com you get access to stock pricing but also news and many other information in just one place 📈 2. Sentiment Analysis Monitor and evaluate market sentiment with analyst recommendations. It helps you stay ahead by predicting potential price movements based on sentiment and pricing trends. 🏢 3. New Venture Hub This is a new feature. You can dive into structured data on over 3 million companies! From investments to funding rounds, access actionable insights into market trends and private company performance. 📊 4. Job Analytics Track job posting trends (not available to the public) to help you make your investment decisions. Here are some of the main resources you can have access to: • Investor data • Earnings calls • Regulatory filings • Pricing trends • Sentiment analysis • Job analytics You can try it for free here: https://lnkd.in/eFgC_ahF

How can 𝐀𝐫𝐭𝐢𝐟𝐢𝐜𝐢𝐚𝐥 𝐈𝐧𝐭𝐞𝐥𝐥𝐢𝐠𝐞𝐧𝐜𝐞 revolutionize the 𝐜𝐨𝐧𝐧𝐞𝐜𝐭𝐢𝐨𝐧 between 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐃𝐚𝐭𝐚 and 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐄𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞? 👇 𝐌𝐞𝐞𝐭 𝐦𝐞 and experience the 𝐟𝐢𝐫𝐬𝐭 𝐜𝐨𝐦𝐦𝐞𝐫𝐜𝐞-𝐚𝐰𝐚𝐫𝐞 𝐀𝐈 by DEUNA, designed to turn data into unstoppable growth in real-time. ► 𝐉𝐚𝐧𝐮𝐚𝐫𝐲 12th in 𝐍𝐞𝐰 𝐘𝐨𝐫𝐤 𝐂𝐢𝐭𝐲📍 Request your invitation here: https://lnkd.in/gwsUnfvw Attendance is limited and based on availability. Don't miss this opportunity to witness 𝐭𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬 innovation. Be there — I know I will! —— Source: DEUNA ► Sign up to 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐁𝐫𝐞𝐰𝐬 : https://lnkd.in/g5cDhnjC ► Marcel van Oost and Connecting the dots in payments... #payments #paytech #digitalpayments #fintech #financialtechnology

How does CBDC (Central Bank Digital Currency) work in 𝐜𝐫𝐨𝐬𝐬-𝐛𝐨𝐫𝐝𝐞𝐫 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬? . The diagram below shows an example between BOT (Bank of Thailand) and HKMA (Hong Kong Monetary Authority). The whole process can finish 𝐰𝐢𝐭𝐡𝐢𝐧 10 𝐬𝐞𝐜𝐨𝐧𝐝𝐬! ▶️ There are 𝐭𝐡𝐫𝐞𝐞 𝐧𝐞𝐭𝐰𝐨𝐫𝐤𝐬: 1. Inthanon network - initiated by BOT in 2018, focusing on Wholesale-CBDC (W-CBDC). The domestic transactions run in this network. 2. LionRock network - initiated by HKMA in 2017, also focusing on W-CBDC. The domestic transactions run in this network. 3. Corridor network - initiated by both BOT and HKMA in 2019, focusing on cross-border payments. To enter the corridor network, the currency must be 𝐜𝐨𝐧𝐯𝐞𝐫𝐭𝐞𝐝 into DR (Depository Receipt) for interbank exchanges. ▶️ Let’s 𝐰𝐚𝐥𝐤 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐚𝐧 𝐞𝐱𝐚𝐦𝐩𝐥𝐞.  Suppose a Thai company needs to pay 1 million HKD to an HK company. 🔹 Step 1: The Thai company informs bank A to transfer 1 million HKD to the HK company’s account at bank Z. 🔹 Step 2: Bank A checks if bank Z is a member of the corridor network. 🔹 Steps 3a - 3c: If the check is positive, bank A converts 4 million THB into DR-THB. 𝐁𝐎𝐓 𝐧𝐨𝐝𝐞 is responsible for destroying W-CBDC and issuing DR-THB. The 𝐨𝐩𝐞𝐫𝐚𝐭𝐨𝐫 𝐧𝐨𝐝𝐞 in the corridor network, which is run by both BOT and HKMA, is responsible for managing DR and monitoring transactions. 🔹 Steps 4 and 5: Bank A needs to convert DR-THB to DR-HKD. It searches among the 𝐦𝐚𝐫𝐤𝐞𝐭 𝐦𝐚𝐤𝐞𝐫𝐬 and finds bank Y offers the best FX rate. 🔹 Steps 6a - 6c: Now the banks settle the currency conversion: bank A receives 1 million DR-HKD from bank Y, bank Y receives 4 million DR-THB from bank A, and bank Z receives 1 million DR-HKD from bank A. 🔹 Steps 7a - 7d: Bank Z converts 1 million DR-HKD to W-CBDC, and confirms that it has received 1 million HKD. 𝐇𝐊𝐌𝐀 𝐧𝐨𝐝𝐞 is responsible for destroying DR-HKD and issuing W-CBDC. 👉 Over to you: Do you think this model with CBDC is the 𝐟𝐮𝐭𝐮𝐫𝐞 of cross-border payments? — 👉 If you like my FinTech posts, please follow Hua Li and click the 🔔 on my profile to receive updates. #systemdesign #payments #fintech .

Ohne Karte, ohne mich? 💳 Egal, ob an der Supermarktkasse, im Lieblingsrestaurant oder am Kiosk - Verbraucher:innen möchten selbst entscheiden, ob sie mit ihrer Karte, dem Smartphone oder mit Bargeld bezahlen. Das ist das Ergebnis unserer aktuellen, repräsentativen Allensbach-Umfrage zum Bezahlverhalten in Deutschland. Demnach würde es die Hälfte der deutschen Verbraucher:innen (50 Prozent) befürworten, wenn Geschäfte und Restaurants - neben der Akzeptanz von Bargeld - dazu verpflichtet wären, Kartenzahlungen zu ermöglichen. Bei der jungen Generation sind es sogar noch mehr - 62 Prozent der Generation Z sprechen sich für eine verpflichtende Kartenakzeptanz aus. Die Studie liefert darüber hinaus noch zahlreiche weitere interessante Erkenntnisse zum Bezahl- und Einkaufsverhalten der Bürger:innen in Deutschland, wie zum Beispiel kontaktloses Bezahlen, Mobile Payment und den Bezahlpräferenzen der Zukunft. Die Pressemitteilung und das ausführliche Exposé finden Sie hier: https://lnkd.in/gQRmwpap

ebankIT's "Digital Banking Trends 2025" Report Official Link: https://lnkd.in/gHdQY894 The 2025 landscape is shaping up to be transformative for the banking industry. The report highlights key trends such as the rise of composable banking, the return of physical branches in a "#phygital" format, and the growing importance of #AI and hyperautomation. As #banks adapt to customer needs and evolving regulations, the emphasis on collaboration with fintechs presents a unique opportunity for innovation. The insights on #OpenBanking and the strategic roadmap for Hashtag #financial institutions provide actionable steps for success in a dynamic environment. A must-read for anyone in the financial services sector looking to stay ahead of the curve. #digitalbanking #fintech #innovation #bankingtrends #ebankIT #isapexchange #isapwallet www.isap.exchange iSAP Exchange FZCO Tino Herold

Key drivers of open finance in Southeast Asia 👉 #1 Regional integration ASEAN payment connectivity Five ASEAN countries (Thailand, Singapore, Malaysia, Indonesia, Philippines) launched real-time payment linkages. ✅ Key achievements: Thailand-Singapore: PromptPay-PayNow linkage successful for 3 years Malaysia-Indonesia: DuitNow-QRIS integration adopted for 2 years Singapore-Philippines: PayNow-InstaPay connection announced Cross-border standards Project Nexus: Singapore’s MAS leading initiative connecting real-time payment systems, Regional API standards development: Singapore has a government backed API Exchange platform Indonesia’s SNAP (Standard National Open API) adoption by 16 banks Malaysia’s Financial Sector Blueprint 2022-2026 emphasizing API standardization 👉 #2 Technology advancement Cloud adoption Cloud market in SEA is projected to reach USD 12.5 billion by 2025 ✅ Key developments: Singapore: 60% of banks migrating core systems to cloud Indonesia: OJK guidelines allowing cloud services for core banking Thailand: BOT cloud guidelines enabling broader adoption Digital currencies Central Bank Digital Currency (CBDC) initiatives: Project Orchid (Singapore): Retail CBDC infrastructure Project Dunbar: Multi-CBDC platform for international settlements Bank Indonesia’s Digital Rupiah development Thailand’s retail CBDC pilot with 10,000 users AI/ML implementation AI adoption in financial services: Singapore: Most banks implementing AI for risk assessment Indonesia: Significant growth in AI-powered lending solutions 👉 #3 Business model innovation ✅ Embedded finance growth Market size: SEA embedded finance market projected growth: USD 7.85 billion by 2029 Key segments: Embedded payments: ~USD 2,100-2,400 billion GTV by 2030 Embedded lending: ~USD 200-300 billion loan book balance by 2030 Embedded insurance: ~ USD 7.5 billion APE & GWP by 2030 ✅ Banking-as-a-Service expansion BaaS providers: Singapore: 15+ licensed providers Indonesia: All major banks offering BaaS Malaysia: All major banks with BaaS offerings and sandboxes Market growth : 40% YoY increase in BaaS adoption Average of 300 APIs per bank 70% reduction in customer acquisition costs ✅ SUPERAPP evolution Market leaders: Grab Financial: 41.9 million MTUs GoTo Financial: +74% Year on Year Growth on GTV Sea Money: USD 615.7 million revenue from financial services Integration trends Upto 60% of users using financial services within SUPERAPPs Major increase in financial service adoption through SUPERAPPs Source twimbit #fintech #payments #openbanking #openfinance