The banking industry is undergoing a major transformation as new technologies and platforms are emerging to offer more efficient, secure, and personalized services. One of the key players in this revolution is Topicus, a platform developer that creates service-driven solutions for various domains, including finance, healthcare, social services, and education.
Topicus recently announced a merger with Five Degrees, a digital banking software provider, to create a new kind of player in the fintech space. Fintech Review interviewed Jamie Burink, the Business Head at Fyndoo by Topicus, to learn more about the merger and the cutting-edge banking technology stacks that they are developing.
What is Topicus and what is its vision?
Topicus was founded in 1999 with a focus on creating vertical market solutions (VMSs) that combine deep domain knowledge and innovative technology. Topicus has achieved impressive organic growth figures by continuously re-innovating its solutions and adding value to its clients and society. Topicus aims to assist its clients in remodelling and improving their service to their customers, to add value to humankind and society.
Burink joined Topicus in 2008 and has been the Head of Fyndoo by Topicus since 2015. Fyndoo is a platform that enables lending as a service for banks, alternative lenders, and intermediaries. Fyndoo leverages data and analytics to provide faster, smarter, and more transparent lending solutions.
What is the merger with Five Degrees and why is it important?
The merger with Five Degrees marks a pivotal moment for Topicus in the domain of financial technology. Five Degrees is a digital banking software provider that offers core banking solutions, digital engagement solutions, and marketplace solutions. Five Degrees has a strong presence in Europe, the Middle East, and Africa, serving over 20 banks and fintechs.
Burink explained that the merger will create a new kind of player in the fintech space, one that combines the best of both worlds: the experience and reliability of an established party, and the freshness and agility of a newcomer. The merged entity will offer a comprehensive suite of solutions that cover the entire banking value chain, from customer onboarding to lending to payments. The merger will also enable cross-selling opportunities and synergies across different markets and segments.
What are the cutting-edge banking technology stacks that they are developing?
Burink said that the merged entity will leverage the latest technologies and infrastructures to create cutting-edge banking technology stacks that are scalable, modular, cloud-native, API-driven, and compliant. These stacks will allow financial institutions to deliver more innovative, responsive, and transparent services to their customers.
One of the key components of these stacks is the India Stack, a digital infrastructure that consists of four layers: digital identification (Aadhaar), digital payments (Unified Payments Interface), data empowerment (Digital Locker), and consent layer (Account Aggregator). The India Stack is revolutionizing access to finance in India by enabling seamless authentication, verification, payment, and data sharing across different platforms and providers.
Burink said that the India Stack is an inspiration for their own solutions, as it demonstrates how digital platforms can empower customers and foster financial inclusion. He said that they are working on creating similar stacks for other markets, such as Europe and Africa, where they see huge potential for growth and innovation.
What are the benefits and challenges of these stacks for financial institutions and customers?
Burink said that these stacks offer many benefits for both financial institutions and customers. For financial institutions, these stacks can reduce operational costs, increase efficiency, enhance security, improve customer satisfaction, and enable new business models. For customers, these stacks can provide more convenience, choice, control, and transparency over their financial services.
However, Burink also acknowledged that there are some challenges involved in implementing these stacks. For instance, he said that there are regulatory hurdles that need to be overcome in different jurisdictions. He also said that there are technical challenges in integrating different systems and platforms. He added that there are cultural challenges in changing the mindset of both financial institutions and customers to embrace digital platforms.
Burink said that they are working closely with their clients and partners to address these challenges and ensure a smooth transition to these stacks. He said that they are also investing heavily in research and development to keep up with the changing needs and expectations of the market.
