The Fintech Power 50 Annual 2025

2018 to 50 per cent of UK adults by 2024. Perhaps more striking, the share of Brits using a neobank as their primary account jumped from almost zero in 2020 to nine per cent by 2024. Similar trends are seen in markets from Europe to Latin America – millions of customers, especially younger generations, are moving their money into agile, mobile-centric banks. Why so successful, you ask? There are three key factors. First is the digital customer experience. These banks were born on the smartphone, and it shows: smooth apps, 24/7 in-app support, instant account opening, and features like spending analytics or crypto trading are baked into the user experience. This customer-centric approach resonates strongly as millennials and Gen Z flock to challengers for their advanced digital capabilities and convenience. Second, challengers operate with low-cost structures. Without expensive branch networks or legacy IT systems, they leverage cloud-based solutions and automation to keep costs lean, often passing savings to customers via low or zero fees. Their nimble cost base also allows them to scale efficiently. Third, they boast rapid innovation cycles. Challenger banks can roll out new features (from virtual cards to buy-now-pay-later offerings) much faster than incumbents, thanks to modular microservices technology stacks. They also partner readily via APIs to integrate new services (insurance, investments, etc.), becoming one-stop financial platforms for users. In short, these banks iterate quickly based on customer feedback, staying always a step ahead in product offerings. Most challenger banks themselves are heavy users of SaaS and cloud services – that’s how they launched fast and kept evolving. Their solutions and services are often SaaS-based, enabling them to plug in best-of-breed fintech solutions and scale on demand. This reliance on cloud tech is a competitive advantage: while incumbents struggle with core banking upgrades, challengers can spin up new microservice modules in a fraction of the time. The lesson for established banks is clear: the challenger playbook – being digital-first, cost-efficient, and fast to innovate – is powered by modern technology and a willingness to break from legacy thinking. So, stop and think again. Are you treating technology as a strategic enabler like these challengers do? Those incumbent banks that

have partnered with or emulated challengers (for example, launching their own digital-first banks) are finding it easier to stay in the race. NEXT-GENERATION CARD PROCESSORS Underpinning many of these trends is the emergence of next-generation card processors – modern payment processing platforms that are a world apart from the legacy card engines of yesterday. According to a 2024 report by Arkwright Consulting, these new challengers in card processing are growing four times faster than the overall market. They are offering what the market needs and cater to the needs of today’s digital banks, fintechs, and even non-bank brands. What sets these next-gen processors apart? In essence, they combine a suite of cutting-edge capabilities rather than any single feature. Key differentiators include: n Low-/No-code configuration: Drag-and-drop tools and open APIs let issuers spin up new card products or workflows with almost no coding. n Cloud-native and modular: Micro-service architecture means elastic scaling, real-time processing and zero-downtime releases – think instant issuing and funding instead of overnight batches. n Built-in regtech: Pre-packaged scheme memberships plus KYC/AML modules make launches ‘globally compliant’ from day one – no separate licensing maze. n AI safeguards and service: ML models block fraud in real time while GenAI chatbots handle cardholder queries, keeping risk low and CX high. n Rapid launch cycles: Prepaid, credit, or virtual card programs go live in weeks, not quarters, enabling retailers or fintechs to enter the market fast. n Merchant-ready extras: Tokenisation, wallet enablement and embedded- finance hooks cover both issuing and acceptance, adding revenue streams beyond basic processing. A great example of a next-gen processor is BPC. BPC itself has embraced many of the above differentiators: a cloud-native architecture, microservices-based product modules and AI-enhanced fraud systems, to name a few. By supporting real-time payments and offering low-code configurability, modern processors like BPC empower banks, fintechs

and even telcos or retailers to launch innovative card programs quickly and globally. This new breed of processors is essentially running at the pace of fintech – providing the back-end horsepower for the front-end innovators. Stop and think one more time: does your processor enable you to be as agile and customer-centric as you need to be? If not, it may be time to look to next-gen solutions. The overall message is clear: “Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that.” This famous Alice in Wonderland quote feels tailor-made for today’s payments industry. Standing still – whether on legacy tech or outdated strategies – means falling behind. To stay in place, one must run fast; to get ahead, institutions must run twice as fast. The call to action for banks and payment providers is evident –look for modern processors, introduce virtual cards, digital wallets and new payment methods, and build the capability to push innovations at fintech speed. Those who do will find abundant opportunities – new customers, new revenue streams, new partnerships. Those who don’t will struggle just to keep up in the same place.

BPC COMPANY INFO

Who is BPC: BPC is a proven industry leader that is shaping the world of transactions with quick, safe and easy payment processing through advanced technology. It helps tier 1, tier 2 banks, SMEs, fintechs, governments and businesses to deliver innovative and best-in-class future-proven solutions that fit with today’s consumer lifestyle when paying, banking, shopping or moving in both urban and rural areas. What it does: Enabling real-life transactions Company: BPC Founded: 1996

Category: Payment solutions Key people: Angelo Bertini, executive vice president Head office: Switzerland Local presence in: BPC has over 20 offices globally Website: www.bpcbt.com Linkedin: linkedin.com/company/ bpc-banking-payments-commerce