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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

Beyond the Funding Round: Building the Financial Foundations for MENA Startups to Scale

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Exclusive Interview with Nasir Khan, Co-Founder, Synovo

The MENA startup ecosystem is shifting from growth at all costs to sustainable business models. What has changed, and what does it take to build a financially resilient startup from the outset?

I think the biggest change is that investors have become less willing to finance a business model indefinitely while founders work out the economics. A few years ago, a compelling growth story could carry a lot of weight. Today, people want to know what each additional customer costs, when that customer becomes profitable and how much cash the company needs to get there.

For me, resilience starts with knowing the difference between revenue, profit and cash. Having worked across telecom distribution, factoring and healthcare ventures, I’ve seen businesses look healthy on paper while working capital quietly becomes their biggest problem.

My advice is to start small enough to test your assumptions, know your margins well and build a business that can survive a slow month, not just celebrate a good one.

Raising capital is only one step towards building a successful business. What financial mistakes do startups commonly make after securing investment, and how can they avoid them?

The most common mistake is treating money in the bank as proof that the business has succeeded. Suddenly there is a bigger office, a larger team and three new markets on the roadmap, before the original model has really been proven. Fixed costs rise quickly, and reversing them is much harder.

I prefer to see founders tie each stage of spending to a milestone: demonstrating repeat purchases, shortening the sales cycle, improving gross margin or reaching a defined number of paying customers.

I’d also keep a fallback plan in case the next round takes twice as long as expected. Fundraising buys time, but what matters is what you prove during that time.

Drawing on your experience in structured finance, how should MENA founders choose between equity, debt and other financing options at different stages of growth?

I spent years in factoring and structured finance, and one lesson has stayed with me: match the type of financing to the risk you are financing.

Equity makes sense when the product, market or revenue model is still uncertain, because investors are sharing the risk of finding out whether the business works. Debt is better suited to predictable cash flows or identifiable assets. Once a business has reliable receivables, trade finance or factoring can fund working capital without giving away more ownership.

But debt is not a cure for an unprofitable business. It creates a payment obligation whether the next contract arrives or not. Founders should also watch for currency mismatches and personal guarantees. The cheapest-looking capital is not always the safest.

Access to capital varies across MENA markets. How should founders in emerging startup hubs approach financial planning differently from those in established ecosystems such as the UAE and Saudi Arabia?

First, I would resist treating MENA as a single market. Access to investors is only one difference. Collection cycles, currency exposure, regulation, customer purchasing power and the availability of experienced hires all change from country to country.

In a smaller funding ecosystem, I would plan for a longer fundraising process and keep costs as variable as possible. A local commercial partnership is often more useful early on than opening a fully staffed operation.

Even in the UAE or Saudi Arabia, access to capital does not mean every startup is fundable. Founders still have to show that they understand their own market. Expansion should follow customer evidence, not a regional map in a pitch deck.

Cash flow is critical to a startup’s survival. Which financial metrics should founders monitor, and how can they maintain cash flow discipline while pursuing growth?

I would start with five things: cash in the bank, monthly net burn, runway, gross margin and the time between invoicing a customer and actually collecting the money.

For subscription businesses, retention and customer acquisition cost matter enormously. For businesses selling to corporates or governments, receivables ageing can be just as important as revenue growth.

A simple weekly cash forecast looking 13 weeks ahead can prevent a lot of unpleasant surprises. I also like a monthly downside scenario: what happens if collections are delayed, or sales come in 25% below plan?

These are not glamorous exercises, but I’ve seen how quickly a growing business can run into trouble when sales rise faster than the cash needed to deliver them.

What makes a startup truly investor-ready today, particularly in terms of financial reporting, governance, unit economics and operational discipline?

Investor readiness is not a beautiful data room put together two weeks before a meeting. It is the discipline with which the business has been run over the previous year.

Can the founder explain the margin on a customer? Reconcile revenue to cash received? Show who owns the company, what obligations exist and which assumptions sit behind the forecast? Do they know how much of their revenue depends on a handful of customers?

In healthcare ventures such as Synovo, which I co-founded, financial planning also has to reflect clinical evidence, regulatory requirements and hospital procurement cycles. Ignore those realities and even an attractive forecast becomes meaningless.

Investors understand that early-stage businesses will not have perfect systems. What worries them is when founders cannot explain their numbers or become defensive when challenged. Being candid about risks usually strengthens investor confidence rather than weakening it.

How can MENA founders balance growth with profitability and reduce dependence on repeated funding rounds? When should they rethink their strategy if new investment fails to materialise?

Profitability does not need to arrive on day one, but the route to it should be visible. The test I use is whether growth improves the economics or simply increases the losses. If every new customer makes the funding gap bigger, scale is not solving the problem.

I would review the plan well before the runway becomes critical. If investment is uncertain, narrow the product range, protect the best customers, reduce fixed commitments and concentrate on revenue that turns into cash.

Sometimes a smaller, profitable core is the right foundation for a much larger company. Waiting until the last three months of cash to make those decisions usually leaves very few good options.

Through your involvement with the London Business School MENA Startup Competition, what distinguishes genuinely scalable startups from those with compelling pitches, and what will define the next generation of successful MENA businesses?

The competition reminded me that a polished pitch and a scalable business are two different things. The founders who caught my attention were not necessarily the ones with the grandest projections. They were the ones who could explain what customers had actually done, what they had learned from being wrong and what the next round of capital would achieve.

Our shortlisted teams were mentored by LBS alumni and volunteers, and it was encouraging to see founders willing to challenge their own assumptions rather than defend them.

I think the next generation of strong MENA businesses will combine regional ambition with local execution, sensible capital structures and the ability to earn customer trust.

Winning a competition can open doors. What founders build after the applause is what ultimately counts.

Dr. Nasir Khan is a medical doctor, entrepreneur and Sloan Fellow from London Business School. He has been building businesses since 2001 across telecom distribution, financial services, medtech and process manufacturing, and has co-founded ventures including Synovo, a UK-based digital health platform. He has also served as a judge for startup induction at the Punjab Information Technology Board’s incubation programme in Lahore and is Co-President of the LBS Entrepreneurship Club, MENA.

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UAE finance has embraced AI, the returns now sit in the handoffs

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With Dubai fast-tracking agentic AI and AI use among DIFC financial firms rising sharply, Samir Akel, Regional Vice President, Emerging Markets at Nintex, sets out how orchestration turns agentic AI into results for UAE banks and insurers.

This week, much of the region’s technology community has gathered in Abu Dhabi for AI Everything, and the question on the show floor has moved on. A year ago, banks and insurers asked whether to deploy AI agents; today they want to know how to make those agents deliver results across an entire customer journey.

Samir Akel, Regional Vice President, Emerging Markets, Nintex

Government is setting the pace. On 5 October, the Dubai Future Foundation launched an agentic AI accelerator covering 33 government entities and more than 300 public-facing use cases, building on the federal target to run half of government services and operations on agentic AI within two years. Few countries have put a number and a deadline on agentic AI. The UAE has done both.

Finance is keeping up. The Dubai Financial Services Authority’s survey of 661 DIFC firms found that 52% now use AI, up from 33% a year earlier, while generative AI use rose by 166%; the regulator also noted that, for many firms, adoption is still at an early stage. UAE finance has AI in many places. The value comes when those pieces work together.

Work in financial services is fragmented

Follow a corporate account opening at a typical UAE bank. The application lands in a portal or a relationship manager’s inbox; documents and identity are checked, sanctions screening runs in a separate tool, a risk team reviews the file, a committee signs it off and operations sets up the account in core banking. That’s six steps, six systems and one waiting customer.

AI agents speed up individual steps: an agent can extract a trade licence in seconds or draft a risk summary in minutes. Then the file sits in a queue for a reviewer who has no idea it is ready. The task gets faster, while the journey stays as slow as its slowest handoff.

That gap is the coordination tax, made up of the hours lost chasing approvals, re-keying data and fielding “where is my application?” calls. In banking, insurance and payments, where one journey can cross half a dozen teams, it is often the largest cost nobody actually measures.

Process is the foundation

Institutions that turn AI into outcomes start by understanding how work actually runs, and regulated firms have a head start here because they already document their processes for supervisors. The task is to map those processes as they really operate (workarounds and exceptions included) and give each step to the right worker.

Steps that must run identically every time, such as sanctions checks and payment releases, suit rules-based workflow. Reading documents and reasoning over unusual cases suit AI agents. Judgement belongs to people. With the Central Bank’s AI guidance for the sector placing clear emphasis on human oversight, deciding where people sit in a process is now part of designing it.

Orchestration makes AI operational

Once the process is clear, orchestration connects it. It coordinates people, systems, data and agents across a whole journey, deciding who or what acts next and routing exceptions to the right person before they become delays.

Think of an airport, where more aircraft add capacity only when air traffic control sequences them. AI agents work in the same way.

For a bank or insurer, orchestration brings one view of every application, claim or payment. Core banking and policy platforms keep their role while work flows between them, and each orchestrated journey becomes a template for the next, so the tenth deployment goes live faster than the first.

A 90-day starting point

Finance can borrow the government’s 90-day rhythm. Pick one journey that crosses at least three systems and two departments, such as SME lending or a motor claim, and map it as it runs today. Count the handoffs and measure the time lost between them; that figure is your coordination tax. Then assign each step to a rule, an agent or a person, orchestrate the whole journey and track time to decision. Reuse what works.

The orchestrators will lead

At the accelerator launch, Digital Dubai’s Director General said the future of digital government depends on an integrated ecosystem that brings expertise, data and capabilities together. The same holds inside every bank.

Over the next year, the number of AI agent use cases across UAE banking and government will grow rapidly. The institutions that pull ahead will be those with a platform to orchestrate and govern those agents, taking them from pilot to production at scale, while keeping people in control. In the AI era, operational advantage belongs to the orchestrators.

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Henry Dannell Expands into the Middle East with Launch of DIFC Representative Office

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Henry Dannell, a specialist cross-border credit adviser, has announced its expansion into the Middle East with the opening of a representative office in Dubai International Financial Centre (DIFC), marking a significant milestone in the firm’s international growth strategy.

The move reflects rising demand for specialist advice among internationally mobile individuals whose financial interests increasingly span multiple jurisdictions, asset classes, and lending structures. As Dubai continues to strengthen its position as a global wealth and investment hub, attracting entrepreneurs, family offices, investors, and high-net-worth individuals from around the world, the complexity of managing wealth across borders has increased significantly. Many of these individuals now live, work, invest, and hold assets internationally, creating borrowing requirements that often extend beyond conventional lending frameworks.

Henry Dannell’s expansion into Dubai is designed to bring the firm’s specialist expertise closer to the region’s growing network of wealth advisers, family offices, tax specialists, legal professionals, and internationally connected clients.

Founded in 2019, Henry Dannell has built a reputation for delivering bespoke credit and lending solutions for clients with highly sophisticated financial circumstances. The firm’s advisers support a broad spectrum of clients, from business owners and entrepreneurs to ultra-high-net-worth individuals, helping them navigate complex borrowing scenarios that frequently involve multiple jurisdictions, unconventional income structures, and international assets. Unlike traditional mortgage providers, Henry Dannell operates as a specialist advisory business focused on structuring tailored credit solutions and working alongside trusted professional advisers to address complex financing requirements.

The establishment of the DIFC representative office represents the first phase of the company’s broader regional growth ambitions and will serve as a hub for relationship-building, market engagement, and collaboration with professional advisory communities across the Middle East.

Kem Kemal, CEO and Co-Founder of Henry Dannell, said: “Over the last decade, we have seen a fundamental shift in how wealth is created, managed, and deployed. Successful individuals are increasingly global in their outlook. They may operate businesses in one country, hold investments in another, and seek opportunities across several markets simultaneously. Yet lending has not always evolved at the same pace.”

He explained that too often, highly accomplished individuals with substantial assets and strong financial positions encounter challenges because their circumstances fall outside conventional frameworks. “Our role is to understand the complete picture and design bespoke solutions that reflect the realities of modern international wealth.”

“Dubai has become one of the most important centers for global capital, entrepreneurship and wealth advisory services,” he added. “Establishing a presence within DIFC allows us to be closer to the professional advisers and internationally connected clients we serve, while strengthening relationships across a region that continues to play an increasingly influential role in global finance.”

With over 165 years of combined industry experience across its advisory team, Henry Dannell has developed specialist expertise across residential, commercial, and specialist lending transactions. Through its Dubai presence, Henry Dannell aims to deepen engagement with the region’s professional advisory ecosystem while contributing to discussions around international wealth, investment, and cross-border financial planning.

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