The last decade has seen around 400 launches of licensed neobanks, 1 1. "Simon-Kucher introduces the Global Neobanking Radar database to rank and track challenger banks and their path to profitability," press release, Simon-Kucher, May 27, 2022. Incumbent banks, nonbank challengers (such as fintech players), stand-alone digital attackers, and large consumer and payments platforms have all launched neobanks in recent years, making the competitive pool increasingly vast and diverse. The term neobank has been used at least since the mid-2010s to describe fintechs that are challenging traditional banks by providing an increasingly comprehensive suite of banking services (as opposed to just payments, personal financial management, etc.) through innovative and low-cost digital channels. Depending on geography, these institutions have also been called challenger banks, virtual banks, digital banks, online banks, and internet-only banks. Over the years, the definition of neobank has expanded and blurred. Many traditional banks have launched their own exclusively digital plays, and fintechs have partnered with traditional banks to provide banking services.

The banking sector's digital transformation journey has come a long way over the past five years. Today, technologies like machine learning (ML) and artificial intelligence (AI) are becoming much more commonplace in banks' digital strategies. Until the arrival of challenger banks like Monzo and Starling Bank a little over five years ago, who showed the benefits that taking a digital-first approach could bring, traditional banks failed to adopt the digital transformation at the same speed as other sectors. While the banking sector has come a long way in its digital journey in recent years, the slow pace of adoption initially has had a knock-on effect on the sector, with other industries now far more advanced in their digital approach. The industry was an early adopter of nascent technologies and as a result, it is now using ML to help with early detection of diseases like cancer. We conducted our own research into the banking industry's digital journey, to see where technologies like AI and ML were being used and, crucially, where they were not.

How ready are we as banks to adopt AI and applied technologies for the various relevant use cases in our business and organization? Let me try and draw a parallel and take you a few years back in time. About half a decade ago, if any one spoke of Cloud as a technology in the banking context and scenario, most bankers would typically cringe and say, "Do they even understand banking as an industry, the restrictions and the risks? Cloud cannot be a reality in the world of banking, especially with respect to business-critical systems." This belief now sounds more archaic than it is. In just a period of 5 years, banks not only seem to have got past their stern reluctance but also the initial apprehensions surrounding cloud adoption.

How ready are we as banks to adopt AI and applied technologies for the various relevant use cases in our business and organization? Let me try and draw a parallel and take you a few years back in time. About half a decade ago, if any one spoke of Cloud as a technology in the banking context and scenario, most bankers would typically cringe and say, "Do they even understand banking as an industry, the restrictions and the risks? Cloud cannot be a reality in the world of banking, especially with respect to business-critical systems." This belief now sounds more archaic than it is. In just a period of 5 years, banks not only seem to have got past their stern reluctance but also the initial apprehensions surrounding cloud adoption.

We sat down with Spiros Margaris, Venture Capitalist at Margaris Ventures and AI Influencer to discuss the state of VC funding of AI and Fintech startups and how crazy thoughts could be the start of an AI business. I have spent most of my professional career in the hedge fund and startup world. I also founded my own startups in New York during the dotcom era, so I know what it means when things don't go as planned, and what it can mean personally, with all the bitter consequences. I have been primarily involved in the fintech, insurtech and AI space as an investor and advisor through my firm Margaris Ventures. I have been a keynote speaker at major technology and banking events, where I have been fortunate to meet very interesting people and exchange thoughts and ideas.

Brett King, co-founder and CEO of Moven, explores how artificial intelligence (AI), embedded tech and experience design are reframing banking. As technology has dominated our lives over the last decade, banking has transformed what customers expect in an everyday banking experience. Today, a digital presence is simply table stakes – it has become imperative in how banks engage and more importantly, retain their customers. Despite this progress, less than 5% of banks in markets like the US and UK allow a customer to open an account through a mobile phone. So where are banks today, and what do they need to do to compete with the challenger banks whose offerings are 100% digital?

Fintech startups around the world are changing the way people manage their money. Apps are reshaping entire payment systems, people are learning to live with chatbots, and innovative interfaces are challenging the way banking gets done. Much is happening abroad, but the impact of these trends on the U.S. market is very hard to predict. Our financial system is far more complex and well entrenched than systems in other countries, with thousands of institutions and a complex regulatory environment featuring countless state-level authorities and multiple federal agencies. U.S. banks tend to be slower to adopt technology, in part because of the gargantuan task of updating old, siloed systems.

The face of the banking industry has changed in the last few years.

Stephen Stuut is the CEO of leading digital identity verification company Jumio. He has a wealth of experience in the financial services industry and is a leading senior technology executive with an extensive track record of transforming companies into profitable businesses with a clear market strategy. We sat down with Stephen to discuss Jumio's recent partnership with digital bank Monzo and the importance of building trust within a business. Tell us about your career in fintech and your role as CEO of Jumio. I previously worked at McKinsey & Company and at Deloitte (Braxton Associates).

Innovation continues to be a strategic priority in the banking industry, with new business models emerging including partnerships with fintech startups. As competition expands and consumer expectations for enhanced digital banking services increases, new business models in banking are emerging and being deployed in real applications. Investment in innovation and in technologies like artificial intelligence are transforming the way rich data is analyzed and applied, creating the potential for real-time contextual banking engagement. The innovation agenda has become intertwined with the digitalization agenda, with both requiring changes in culture and back office operating systems. Investment in delivery channel innovation continues to be the most important focus for the banking industry, responding to expectations set by other industries.