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Embedded Finance, AI, and Open Banking

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Finastra

Luc Hovhannessian, Chief Revenue Officer, Treasury & Capital Markets at Finastra

Finastra is driving growth in Treasury & Capital Markets by enabling financial institutions to modernize through cloud-first, open finance solutions. With innovations in AI, ESG-driven finance, and embedded banking, Finastra is shaping the future of financial services, enhancing efficiency, automation, and decision-making.

In which sectors is Finastra experiencing the most significant growth in its client base, and how are you expanding your outreach efforts?

Finastra is witnessing significant growth across our business, and I am seeing this first hand within our Treasury & Capital Markets business unit.  A big driving factor is financial institutions recognize that to thrive in today’s environment filled with macroeconomic volatility, regulatory shifts and demands for operational efficiency, they must prioritize modernization and automation, as well as real-time risk management, liquidity forecasting and decision-making. Cloud-first, open, and scalable technology is helping them stay ahead in an unpredictable financial landscape.

Bank treasurers, for example, understand the need for real-time treasury and advanced trading capabilities to navigate today’s challenges and capture the opportunities. With Finastra Kondor, our leading bank treasury management solution, we are enabling institutions to trade high volumes of treasury, complex derivatives and structured products, providing risk analytics and real-time position management. To further support our customers on this journey, we have evolved our solution through enhanced workspaces and workflows to drive greater efficiencies and streamline the decision-making process for banks. We are also leveraging microservices, AI and partner ecosystems to deliver intuitive and persona-based experiences, as well as Treasury as a Service (TaaS) and cloud capabilities.

Additionally, we have numerous customers that have implemented Opics, our simplified, integrated core treasury solution. The solution ensures institutions can adopt cost-effective treasury operations while increasing their revenue, improving customer service and staying compliant.

The capital markets space is another promising area, as firms seek scalable, efficient platforms. With Summit, backed by over 25 years of industry expertise, we’re helping institutions streamline trading, improve straight-through processing (STP), and reduce time to market, making operations more efficient and cost-effective.

Finally, we are seeing strong growth from the investment management industry, particularly as insurance companies and pension funds expand to the point of needing a robust technology system. Fusion Invest provides real-time portfolio insights, advanced analytics, and automated investment processes through an Investment Book of Records (IBOR). With comprehensive asset class coverage and cloud-enabled deployment, we’re giving institutions the flexibility to manage risk and align with strategic goals.

We are continuing to embrace the growth opportunities in the treasury and capital markets industries by providing ongoing engagement and support for our existing customers, some of whom who have used our solutions for many years. We are using our successes and learnings to engage new customers, and we have some exciting projects on the horizon.

How is Finastra leveraging the potential of open finance, and what does the future of open finance look like from your perspective?

The treasury and capital markets industries are evolving rapidly, with financial institutions seeking greater efficiency, scalability, and sustainability. Finastra has long championed an open financial landscape, supporting some of the world’s largest banks and investment firms with solutions designed for automation, real-time decision-making, and seamless collaboration.

For example, in treasury trading, banks must optimize operations and integrate with market services to create a stable financial ecosystem. This allows them to respond quickly to regulatory changes and promote growth in global and local markets. Our open solutions enable seamless, real-time integration by leveraging REST APIs, allowing interactive, two-way integration with external applications, meaning banks can innovate and adapt to market changes rapidly.

Institutions require solutions that optimize the trading of high-quality liquid assets and enable cost-effective treasury operations from front to back. Our open solutions address these challenges and facilitate collaboration across the financial ecosystem. By offering advanced systems for secure data processing and analysis, they allow banks to utilize their data more effectively for decision-making. Additionally, these platforms address bias through analytics, training, and automated decision-making tools, while ensuring compliance with evolving regulations.

Similarly, robust capital markets platforms that are open by design support investment banks with trade validations, portfolio management, and real-time pricing. Finastra’s front-to-back solutions aid debt raising and risk management for institutions to drive growth and foster societal change.

Capital markets face challenges like slow trade validations, complex risk management for development banks, adapting to new technologies, and supporting diverse financial products. We’re solving these challenges by offering agile solutions that speed up trade validations and provide robust risk management solutions. Open architecture allows for easy integration and promotes innovation, while real-time tools and specialized solutions can improve portfolio management and the handling of various financial products.

The future of Open Finance lies in greater data-sharing, stronger partnerships, and scalable innovation. As financial institutions embrace cloud-driven ecosystems, the ability to integrate, collaborate, and innovate will define long-term success.

Can you elaborate on your software solutions and how they contribute to supporting green finance? Is the shift toward sustainable finance becoming a tangible reality?

Sustainable, inclusive and responsible finance is moving from ambition to reality as institutions embed ESG principles into their operations. Demand for green bonds, sustainability-linked loans, and ESG-driven investments is rising, and technology is at the heart of this transition. Finastra offers a variety of solutions to support this, including Finastra ESG Service offered within our Lending business unit. The cloud-native, open and scalable solution facilitates the integration of ESG performance criteria into risk and pricing to deliver a better experience for sustainability-linked loans and bonds.

In the treasury and capital markets space, as institutions integrate ESG factors into decision-making, investors can achieve financial returns while contributing to positive societal and environmental outcomes. The demand for ESG-focused investments is growing, with institutional investors like pension funds and insurance companies incorporating ESG criteria to meet stakeholder expectations. Investors use ESG criteria to identify risks affecting long-term performance, such as regulatory fines for poor environmental practices or the reduced likelihood of scandals due to strong governance.

With real-time treasury and trading solutions, banks can access more accurate forecasting and risk management capabilities, while enabling faster decision-making and greater agility to navigate any complexities. Additionally, our Fusion Invest solution is integrated with ESG data to help asset managers make more informed decisions about their portfolios in line with specific values.

Cloud-enabled ecosystems, such as Finastra’s, further support the adoption of sustainable finance. Powered by Open Finance, these ecosystems foster seamless collaboration and partnerships to drive innovation and positive societal change. By integrating third party applications that provide, for example, sustainable datasets or seamless compliance with disclosure requirements, banks can embrace the opportunities of ESG while mitigating potential risks.  

Finally, as Generative AI (Gen AI) brings new opportunities for green finance. By analysing vast amounts of historical and real-time data, Gen AI can help firms assess market sentiment, track policy changes, and identify ESG-aligned opportunities. At Finastra, we are investing heavily in Gen AI across our operations and within our products and are excited about what the future has in store.

Embedded finance is a buzzword across the financial landscape—can you explain its significance and the role generative AI plays in shaping its evolution?

Embedded finance gained popularity because of the way it seeks to transform the end user experience.  By integrating banking capabilities directly into non-financial platforms, payments, lending, investment and banking services can become more intuitive and accessible. It’s about putting the end user’s needs first, and building products and services around that, to be consumed how and when they want them. Our Treasury & Capital Markets solutions can be easily connected with an end user’s platform, enabling businesses to offer investment opportunities directly to end clients.

In a similar vein, Gen AI is making a significant impact due to its transformative potential in enriching user experiences. By enhancing employee productivity, it can free up time to focus on more value-added, customer-facing tasks. With large language models and AI assistants, information can be accessed at our fingertips to support faster and potentially more informed decisions. For example, a trader could request a summary of all FX spot trades issued that day and run APIs to automate tasks such as booking trades and calculating risk measures.

Market volatility is accelerating this demand. Institutions must react quickly to economic shifts, regulatory changes, and shifting demands. Gen AI can ingest large volumes of historical and real-time data—from central bank policies to social sentiment—to generate precise risk assessments and liquidity insights. These capabilities are particularly valuable for instant investment decisions, automated trading, and dynamic pricing models.

However, Gen AI’s adoption also comes with challenges. Data quality, governance, and regulatory compliance are critical to ensuring AI models remain transparent and reliable. Financial institutions must continuously refine robust measures and processes to maintain trust and accountability.

How is Finastra supporting financial organizations with cloud services, and what innovations can we expect in this space?

Cloud technology is at the heart of modernization strategies, enabling institutions to reduce costs, increase agility, and accelerate time to market. We are helping banks and investment firms adopt our scalable, cloud-based solutions to improve operations, strengthen risk management, and adapt to shifting market conditions. Additionally, as regulations continue to evolve and become more stringent, cloud-based solutions provided the necessary agility for institutions to quickly comply.

Modernization is about more than just migrating to the cloud. By offering managed services in collaboration with our partners, such as DXC Luxoft and RightClick Solutions, banks gain additional benefits in terms of operational efficiency and maintenance support. We are also helping our customers adopt microservices-based architecture, enabling them to select and integrate the specific functionalities they need, while minimizing the risks of large-scale legacy migrations.

As our solutions are API-enabled, this further enhances adaptability by enabling seamless connections of banking systems with fintech innovations and external data sources. With cloud-enabled, Open Finance ecosystems combined with technological innovations such as Gen AI, we can expect a lot more collaboration and innovation to come, which ultimately can provide better end-user outcomes.

Financial

QASHIO AND NEXA AI LAB LAUNCH PARTNERSHIP TO AUTOMATE FINANCE WORKFLOWS IN THE UAE

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Qashio, the UAE’s leading spend management platform, has partnered with NEXA AI Lab, the AI division of NEXA, one of MENA’s leading digital growth agencies, to help accelerate AI adoption across finance teams in the UAE through automation and AI-powered financial workflows.

As part of the partnership, Qashio and NEXA AI Lab will work together to support businesses in adopting AI tools that improve spend visibility, streamline manual processes, and make finance operations more efficient. The partnership will also include a free AI audit to help finance teams identify where AI can deliver immediate operational value and support broader adoption across the business. Both companies say the initiative is designed to move businesses from AI awareness to implementation, in line with the UAE’s national AI strategy targeting full public sector AI integration by 2031.

Amit Vyas, CEO of NEXA, comments: “AI delivers value when it is embedded directly into day-to-day workflows, rather than treated as a standalone concept. Finance is one of the clearest areas where this shift is already taking place, with businesses under increasing pressure to improve real-time decision-making. Through our partnership with Qashio, our goal is to help organisations identify where AI can be applied in practical, high-impact ways across financial operations.”

Armin Moradi, CEO of Qashio, said: “A global industry survey shows that 81% of financial institutions expect AI to be embedded in their core operations by 2030, and the UAE is one of the fastest-growing AI markets globally, setting a new baseline for competitiveness across the private sector. Our partnership with NEXA AI Lab is built to help close the gap between AI adoption plans and real execution, enabling enterprises and SMEs in the UAE to compete with the best in the world.”

Qashio has already integrated AI into its own financial workflows through features such as AI-powered receipt capture, which automatically extracts key information, including TRN, vendor names, and transaction data. The technology helps finance teams reduce manual data entry, save more than 4 hours each week, and maintain cleaner, more reliable financial records.

NEXA brings deep expertise in digital transformation and AI implementation across industries. Together, the two companies are focused on making AI accessible and measurable for businesses in the UAE. Both companies are already using tools like ConvoAI to improve access to data and provide instant support outside of working hours. Qashio is already leveraging NEXA AI Lab’s product offering. This reflects a broader shift towards always-on, AI-enabled operations.

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Standard Chartered Supports Pakistan’s First Panda Bond Issuance in Chinese Interbank Market

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Pakistan has successfully completed its inaugural Panda bond issuance in China’s interbank bond market, raising RMB 1.75 billion through a three-year transaction that marks the country’s first direct entry into China’s capital markets.

Standard Chartered (China) Ltd. Co acted as the only foreign bank serving as joint lead underwriter and joint book runner for the transaction, supporting Pakistan in broadening its international financing channels while strengthening financial connectivity between regional capital markets.

The issuance received strong support from multilateral development institutions, including the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB), which together guaranteed 95 per cent of the bond’s principal and interest payments. The structure helped attract significant demand from Chinese banks, securities houses, and international financial institutions.

The transaction was reportedly more than five times oversubscribed, allowing Pakistan to price the bond at 2.50 per cent, the tightest end of the indicated pricing range.

Salman Ansari, Global Head, Capital Markets, Standard Chartered, described the issuance as a strategically important transaction that expands Pakistan’s access to global liquidity pools while demonstrating the growing relevance of regional capital markets within the international funding landscape.

The transaction also reflects the broader evolution of the Renminbi within global financial markets, as China continues expanding the role of its currency beyond trade settlement into cross-border financing and sovereign funding structures.

Jerry Zhang, Global Head of Banks & Broker Dealers and Head of Coverage, Greater China and North Asia at Standard Chartered, said the transaction highlighted the bank’s role in connecting international issuers with China’s domestic capital markets while also reflecting the continued internationalisation of the Renminbi.

The Panda bond market has increasingly attracted a wider range of sovereign, supranational, and institutional issuers in recent years as regional economies explore diversified funding channels and deeper access to Chinese liquidity pools.

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WHY GLOBALLY CONNECTED FAMILIES MUST PLAN FOR GEOPOLITICAL CHANGE

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By Nazneen Abbas, Founder, Ma’an

Families with wealth across borders are already used to complexity. They live with different legal systems, different inheritance regimes, and different tax realities, often all at once. That part is not new. What has changed is the speed at which the environment around those structures is moving. The geopolitical backdrop is no longer something families can treat as distant noise. It is beginning to alter the conditions in which wealth is held, transferred, and protected.

That is becoming visible in the questions families are now asking. Across the GCC, many who already have Wills, trusts, foundations, and succession structures in place are no longer asking whether they have planned. They are asking whether what they put in place still holds. The conversation is shifting away from documents and toward durability, resilience, and relevance over time.

The issue is not complexity, it is movement

Cross-border planning has always required care. What feels different now is the sense that the regulatory environment may be entering a period of faster movement. Tax agreements that were once taken as given could come under review. Reporting standards may tighten further.  Frameworks in some jurisdictions may no longer offer the same level of certainty that families have relied on.

That does not automatically make an existing plan ineffective. It does mean the assumptions on which it was built may no longer be fully reliable. A structure that made sense five or seven years ago may still be valid on paper, but it may now interact differently with another jurisdiction’s rules. That difference is where risk begins to accumulate.

Many families are not dealing with poor planning. They are dealing with planning built for a slower-moving environment. A framework can be professionally drafted and entirely appropriate for its time, yet still require review because the conditions around it have changed. The gap, in many cases, is one of timing rather than quality.

 

Families do not experience risk as corporations do

Public discussion around geopolitical risk is usually framed in corporate language – market access, supply chains, revenue exposure. But geopolitical literacy is no longer just a corporate issue.

The same forces that alter corporate decision-making also alter the legal and tax environment in which private wealth sits. The difference is that families encounter those forces at far more personal moments. A business responds through compliance and restructuring. A family may discover, during a bereavement or a generational transition, that a structure meant to preserve stability is now sitting between conflicting legal systems or newly expanded obligations. The cost of outdated planning is rarely just technical. It is emotional, and it often surfaces when a family is least equipped to navigate it.

What a meaningful review actually covers

Families and family offices in the GCC with assets or obligations across multiple jurisdictions need to review their planning as a connected system. The question is not whether the Will is signed or the foundation properly established. It is whether those elements continue to work together under current conditions.

Do existing Wills still align with the succession laws of each jurisdiction involved? Do trust or foundation structures still operate as intended alongside local inheritance frameworks, reporting obligations, and tax treatment? The review also needs to reach instruments often created with care and then left untouched. Private Placement Life Insurance (PPLI), for example, may still be appropriate, but its treatment can vary depending on where the family is resident, where beneficiaries sit, and how international agreements evolve. Dynasty Trusts and Irrevocable Life Insurance Trusts (ILITs), especially when governed by US law, deserve renewed scrutiny where family circumstances or legal interpretation have materially changed.

This is not about alarm. It is about alignment. Cross-border structures fail less often because a single instrument is flawed, and more often because the instruments stop speaking to one another.

The plan may hold. Does it still fit?

A plan can remain legally intact and still fall behind. Families change. Children grow up. New dependents enter the picture. Businesses expand into new jurisdictions. Property is acquired in places never part of the original conversation.

If a structure no longer reflects the family’s wishes, responsibilities, or values, it is no longer doing its full job. The real test is not whether it remains untouched, but whether it continues to reflect the life it is meant to support. That matters especially in this region, where families operate across borders almost by default.

The strongest plans are not always the most elaborate. They are the ones revisited honestly and adjusted before pressure forces the issue. Families often treat estate planning as something to complete and put away, which is understandable.

Cross-border wealth planning across jurisdictions cannot remain static. It requires ongoing stewardship. Families that pause to review their structures now are doing what good planning has always required: ensuring the framework continues to reflect not just the world it operates in, but the family it is there to serve.

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