Ben Brown: Eric, as the CEO of Pepper Pay, you’ve been at the forefront of fintech. To start, can you share your perspective on some of the most exciting innovations currently shaping the fintech sector?
Eric Hannelius: Fintech has been rapidly evolving, with some key innovations set to redefine how we think about finance and digital transactions. One area that stands out is the rise of embedded finance. Embedded finance is reshaping how consumers interact with financial services by integrating them directly into non-financial platforms, such as retail websites or service-based apps. It’s about making finance seamless within everyday experiences, helping customers manage finances without interrupting their routine.
Ben Brown: Embedded finance is intriguing! How do you see it transforming customer experiences?
Eric Hannelius: It’s transformational because it removes the friction often associated with traditional banking. Instead of navigating separate financial systems, embedded finance allows people to make payments, apply for loans, or access other financial tools right within the apps they already use. For example, a customer could make purchases, set up financing, or get insured while buying a product online. This approach doesn’t require switching between platforms, making financial tasks more accessible.
Ben Brown: In addition to embedded finance, are there other trends or technologies you think will have a big impact?
Eric Hannelius: Certainly. Another promising area is the application of artificial intelligence (AI) in financial services. AI has made incredible strides in personalized customer experiences, fraud detection, and operational efficiency. One of its greatest advantages in fintech is in data analysis. AI can analyze vast amounts of data in real-time, helping financial institutions make more informed decisions. It’s especially valuable for things like fraud prevention, where AI algorithms can detect unusual patterns and respond almost instantly.
Ben Brown: AI has definitely had a huge impact. What are some challenges fintech companies face when integrating AI, and how do they address them?
Eric Hannelius: The biggest challenge is balancing AI’s capabilities with ethical considerations and data privacy. Fintech companies handle sensitive data, and it’s essential to use AI responsibly. For instance, at Pepper Pay, we implement strict data protection protocols and conduct regular audits to ensure compliance. Transparency is also important. Customers should feel confident that their data is secure and used responsibly. AI’s benefits are remarkable, but protecting customer trust is essential.
Ben Brown: How is Pepper Pay using AI to improve its services?
Eric Hannelius: At Pepper Pay, we’re using AI in several ways, including in personalized customer support and fraud detection. AI-driven chatbots, for example, allow us to address common customer inquiries quickly and efficiently. For fraud prevention, AI enables us to monitor transactions in real-time, detecting anomalies that might suggest fraud. By doing so, we’re able to enhance security and protect customer accounts, which is always a top priority.
Ben Brown: Alongside AI, blockchain is another technology that’s often discussed in fintech. What are your thoughts on blockchain’s role in the future of fintech?
Eric Hannelius: Blockchain has the potential to introduce new levels of transparency and security, especially in areas like cross-border transactions and digital identities. Traditional cross-border transactions can be slow and costly, but blockchain allows payments to be processed faster and at a lower cost. For fintech, this technology is especially promising because it’s decentralized, meaning transactions are recorded on a public ledger that’s tamper-resistant. This helps increase trust and security across financial transactions.
Ben Brown: Do you see blockchain becoming more widely adopted in the near future?
Eric Hannelius: I believe so, although it might take time. We’re seeing early adoption in specific areas, like digital identity verification and remittances. However, broader adoption depends on regulatory frameworks evolving to accommodate blockchain solutions. As regulations become clearer, more institutions may feel comfortable adopting blockchain, and that could lead to substantial advancements in transparency, cost-efficiency, and security.
Ben Brown: Speaking of regulation, the fintech sector is highly regulated. How do you balance innovation with compliance?
Eric Hannelius: Compliance is a core aspect of fintech. Regulatory bodies are there to ensure the safety of financial systems and protect consumers, so maintaining compliance is non-negotiable. However, innovation doesn’t have to be limited by regulations. At Pepper Pay, we focus on designing products that are both innovative and compliant, often working directly with regulators to ensure we’re meeting standards. This collaboration can actually enhance innovation because it keeps us informed and agile, ready to adapt as regulations change.
Ben Brown: It sounds like a proactive approach. Finally, what advice would you give to other fintech leaders looking to innovate in today’s competitive landscape?
Eric Hannelius: My advice would be to prioritize customer needs and build technology that genuinely improves their experience. Fintech is a fast-paced industry, so it’s easy to get caught up in trends. However, successful innovation comes from understanding what customers value most. A strong focus on security and usability will always set you apart. And stay adaptable, technology and regulations will keep changing, and being prepared to pivot when necessary is key to staying ahead.
Ben Brown: Thank you for sharing these insights, Eric. It’s exciting to see how Pepper Pay and the broader fintech industry are evolving.
Eric Hannelius: Thank you. It’s an exciting time for fintech, and I’m glad to be part of it. The potential of technology to create a more inclusive and efficient financial system is incredible, and I look forward to what’s ahead.