BaaS, AI & Banking’s Next Power Play! Siobhan Byron, Universal Banking EVP, Finastra

By Puja Sharma

Siobhan Byron, EVP of Universal Banking at Finastra, sheds light on how BKN301 Group leveraged Finastra’s Essence platform to expand rapidly across Europe, North Africa, and the Middle East.

The cloud-first, API-driven solution enabled agility, scalability, and regulatory adaptability, giving BKN301 a competitive edge in the BaaS space. Implemented in just six months, the project showcased the power of strong collaboration and modular banking. Byron also explores key BankTech trends, including AI-driven insights, Gen AI’s impact, and the shift from traditional core banking replacements to a flexible, component-based approach, redefining the future of financial services.

To what would you ascribe the success of the project in the Global FinTech Innovation Awards?

To share some background, BKN301 Group wanted to expand its BaaS business across Europe, North Africa, and the Middle East. To do so, they needed an agile, secure core banking platform capable of supporting a wide range of banking practices and regulatory environments. After a thorough selection process, they chose Finastra Essence, a next-generation, cloud-first digital banking platform that uniquely combines rich, broad and deep banking functionality with advanced technology. The solution is renowned for enabling agility, reliability and innovation. As a FinTech, speed to market is tremendously important, so the project was implemented very rapidly – within six months. The platform enabled BKN301 to enhance its competitive edge quickly and reach new markets. The company configured, tested, and transitioned smoothly to production, now offering a fully functional BaaS solution.

Another success driver is deep-rooted in Finastra’s ethos: strong customer collaboration, which we have found to be crucial to success in the long term. BKN301 views our collaboration as the beginning of a strategic partnership. In particular, the company noted our high level of engagement and responsiveness as our project teams worked together to meet BKN301’s specific needs.

From the start, together, we set clear goals and tracked them regularly. Effective communication was crucial for staying on track and adjusting as needed, giving BKN301 full project visibility. Flexibility and adaptability were vital since not all circumstances can be predicted. We provided BKN301 with the ability to connect with a dedicated Finastra support expert and ensured prompt issue resolution. A senior management team provided additional support and expertise throughout the implementation.

What key trends do you see in BankTech?

FinTechs and neobanks have flourished worldwide and technologies are being mass adopted at a rapid pace. This has increased demand for instant, digital and personalised services while also heightening fraud risks and tightening regulations.

To compete in this environment, financial institutions recognise that they need to adopt the right technology that is highly agile, fosters innovation and minimises risk. Robust core banking solutions, alongside ecosystems, are playing a very important role. By seamlessly integrating services through APIs, financial institutions can protect themselves against risk and remain futureproof while curating personalised journeys. Cloud, where permitted by the regulators, is amplifying that agility. However, it is important to note that with the right technologies, banks can increase their agility even when deploying on-prem.

AI is transforming banking by automating tasks and enhancing services. For example, with AI-driven analytics and dashboards, banks can access much richer insights into their customers’ needs and behaviours and adapt their offerings accordingly. Our Financial Services State of the Nation 2024 survey found that two in three (61%) financial institutions have improved their AI capabilities in the last 12 months, up from 36% the year before and over double that of 2022 (30%).

Gen AI is delivering additional value for employees and end users and Finastra is investing heavily in it, not just within our solutions. We have also rolled out Microsoft Copilot to our employees, provided upskilling courses and hosted a dedicated Gen AI festival of learning.

Gen AI-powered assistants are helping to elevate productivity, provide instant access to information, and enable more informed decision-making for banks and their customers, who can gain greater insights into how to optimise their financial situation. This is making banking services more relevant and personalised for customers.

How are you working to develop your offerings further – can you tell us what’s in the pipeline?

Ongoing innovation is vital. Our core banking platform, Essence, uniquely combines rich, broad and deep banking functionality with advanced technology to help financial institutions reimagine banking. The platform supports multi-entity and multi-currency operations across deposits, lending, and payments, making it suitable for globally diversified financial institutions of all sizes. Essence is cloud-enabled and API-driven, allowing institutions to benefit from scalability, operational resilience, and reduced infrastructure costs. It is also available on-prem.

We are working to enhance our offering with Essence and other solutions under three key pillars: Adapt, Evolve, and Thrive. This means helping our customers adapt to a dynamic financial landscape through enhanced AI-driven analytics and flexible, composable banking. Plus, enabling customers to evolve to meet and solve new challenges through robust technology, and thrive by empowering them to own the modern banking experience through a comprehensive digital banking system. Underpinning all of this is the solution’s comprehensive coverage for retail, SME and commercial banking – including conventional and Islamic.

One area we are focusing on is enabling our customers to upgrade their core banking system via a flexible and modular strategy. The traditional ‘rip and replace’ method can come with prolonged timelines, high costs, and operational disruption. Instead, we’re now offering our customers a Symbiosis approach, where a next-generation core banking system is deployed alongside existing infrastructure, enabling rapid innovation while minimising costs and disruption. Essence allows banks to replace individual components instead of the whole system at once, meaning they do not need to invest in another system. Using microservices architecture and APIs, features like lending or Islamic banking can be quickly integrated.

How is the way customers access financial services changing, and what does that mean for the financial services sector and tech vendors?

Customer expectations are evolving rapidly, demanding real-time, personalised services across multiple channels, including online, mobile, in-branch and non-financial platforms. With more competition than ever before, if banks don’t meet these expectations, customers can easily turn to a competitor who will. In a dynamic landscape, customer service is now at the heart of building lasting relationships.

Advanced technologies like AI and data analytics enable banks to gain deeper insights into customer behaviour and offer tailored solutions. Additionally, an integrated omnichannel strategy ensures a seamless and consistent experience, enhancing customer satisfaction. Banks are also adopting proactive service approaches, leveraging predictive analytics to anticipate needs and address issues promptly.

As we reimagine banking, it is essential to understand how we can shift from transactional interactions to meaningful relationships that enhance customer experiences and drive loyalty. This is especially important as we see a shift towards Agentic AI and ecosystems where autonomous AIs and a wide array of partners can disintermediate the relationship between the Bank and the customer. Technology vendors must recognise these trends and ensure they are equipped in terms of technology, expertise and mindset to help banks meet these demands.

What do you see as the biggest challenge facing the banking sector, and how do you, as Finastra, help institutions address it?

One challenge banks face is keeping pace with change and managing uncertainty. Technological advancements offer opportunities but also pose risks. Banks must address the evolution of jobs resulting from automation, regulatory challenges, and operational risks. Additionally, technology should serve people by enhancing experiences, improving customer satisfaction, and creating meaningful interactions.

Banks must embrace change and adapt strategies to stay competitive and meet customer needs. Our solutions and experts help institutions foster a culture of change and adopt technology and robust risk management. We make banking more accessible, efficient, and personalised, ensuring progress benefits individuals and communities.

For our customers to stay agile enough to reimagine banking truly, we think it comes down to the following areas: embracing Symbiosis, tapping into ecosystems, and utilising technology and data to augment human experiences. This is where we believe we will see the best opportunities for us and our customers.