Legacy modernisation is high on the agenda of banks but notoriously difficult to do well. The operating model and business architecture can enhance productivity and clarity on which business leaders should feel responsible for modernisation. When the alignment of technology to business has not happened yet, a tech or ‘supply-led’ modernisation effort ensues. Through a case study, this paper aims to explore the right balance between technology-led modernisation and business-led modernisation, the results of when modernisation works, and what can be done to avoid potential pitfalls. Although this paper focuses on value stream-based organisations with ‘product model’ delivery, learnings can apply to functional organisations working with a ‘project model’ as well. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.

Embedded finance is revolutionising the way financial services are delivered, enabling the seamless integration of financial products into everyday, nonfinancial contexts. As regulatory frameworks evolve, and advancements in technologies like application programming interfaces (APIs) and artificial intelligence accelerate, embedded finance is becoming an indispensable pillar of modern financial ecosystems. This paper analyses the factors driving the rapid expansion of embedded finance and highlights its growing significance in today’s digital economy. By focusing on the success criteria that are crucial for the effective implementation and long-term sustainability of these solutions, the research provides a comprehensive guide for financial institutions and partners alike. Through an empirical analysis of various use cases, the study uncovers the most promising applications and identifies the main factors that are driving the success of embedded finance initiatives. As this innovative approach continues to gain momentum, it opens up vast opportunities for growth and innovation, offering the potential to reshape how financial services are integrated into both consumer and business ecosystems, driving efficiency and enhancing the user experience.

In the rapidly evolving world of open ecosystems, the advent of application programming interfaces (APIs) has transformed how banks and third-party providers interact. This paper explores how innovation and security must be successfully balanced so that end users can seamlessly access new and exciting open banking products and services within a safe and trusted environment. The benefits and impact of APIs are discussed, alongside the role of API standardisation and conformance in mitigating risk. The importance of integrating a bank’s open API strategy within its broader API strategy is emphasised, to maximise value and align with overarching organisational goals. A centralised approach to conformance and the need for robust and efficient trust frameworks are the bedrock of successful open banking ecosystems. Trust, built upon reliability, security and transparency, verifies that rules have been agreed upon and enables their enforcement. Central directories ensure compliance with regulation, streamlining complexities associated with open banking and facilitating secure communication and data exchange between the various participants. The interplay between centralised API conformance and a robust trust framework is explored, highlighting their role in enhancing the integrity of open banking and open data initiatives, with regulators and market infrastructures playing a vital role. They are responsible for mandating open banking and ensuring that safety and security are maintained in this new and interconnected financial landscape. The effective integration of open APIs, the establishment of trust and the commitment to compliance and standardisation all pave the way for a more inclusive and innovative banking experience for all stakeholders.

In recent years, the rise in digital payments has spurred a discussion in Canada and other countries about the future of cash at the point of sale. To better understand trends in payment methods accepted by Canadian businesses, including cash acceptance and the impact of innovations such as mobile payments, the Bank of Canada conducts the Merchant Acceptance Survey, a survey of small and medium-sized businesses. This report finds that 96 per cent of these businesses in Canada accepted cash in 2023. Acceptance of debit and credit cards has increased since 2021 to 89 per cent, and acceptance of digital payments has increased as well. The vast majority of merchants (92 per cent), however, have no plans to go cashless in the future. This paper concludes that cash and digital payments continue to coexist at the point of sale, and Canada is far from being a cashless society.

The transition to digital operations is identified as an essential catalyst and a vital strategy for commercial banks to elevate the calibre of services and achieve qualitative growth. This paper discerns that the digitisation of commercial banking is the outcome of a confluence of both intrinsic and extrinsic motivational factors. Yet as this transformation deepens, it has unveiled an array of challenges and issues, which might result in developmental missteps for the industry. To navigate around these digital development traps, the paper articulates well-defined objectives for the digital transformation of commercial banks. The study is positioned to offer beneficial guidance and reference points for the digital evolution of commercial banks in China, propelling them towards a more stable and enduring growth within the digital paradigm.

The introduction of the Ordinals Protocol and BRC-20 tokens, featuring the pioneering concept of Inscriptions, signifies a pivotal evolution in the Bitcoin network. Officially launched on 21st January, 2023, this innovation embeds a unique blend of tokenisation and non-fungible attributes directly into Bitcoin’s base layer, akin to engraving precious metals. This paper thoroughly examines the technical underpinnings and market implications of BRC-20 tokens, focusing on the stark contrasts with traditional ERC-20 tokens and initial coin offerings. Unlike ERC-20, Inscriptions integrate seamlessly into Bitcoin’s existing structure, offering a decentralised model that strengthens the principles of a true fair launch in decentralised finance. The study critically assesses the reception within the Bitcoin community, balancing the potential enhancements in Blockchain functionality against concerns regarding foundational principles. Furthermore, it explores the profound implications for stakeholders such as miners, exchanges and developers and evaluates the transformative impact on the cryptocurrency ecosystem at large. Ultimately, this paper elucidates the role of Inscriptions in redefining the trajectory of Bitcoin and shaping the future landscape of Blockchain technologies, emphasising their potential to foster equity and innovation in token distribution.

Advocates of artificial intelligence (AI) envision a future where intelligent machines can perform routine tasks, allowing humans to focus on creative pursuits. Despite concerns about job losses, organisational think tanks believe that humans and machines can work together to achieve better results. This paper explores the interaction of AI and leadership to improve organisational performance. It inspires enthusiastic optimism in some managers and fear and scepticism in others. It is crucial to acknowledge and address these concerns as increased emotional tension always accompanies new phenomena. The paper explains that leaders who prioritise outcomes over technology can devise effective AI strategies that improve human capabilities, which could lead to a more productive, meaningful and fulfilling future of work. The paper uses pertinent tables to understand better the overall impact of AI on corporate culture and work style as well as its socioeconomic implications in the workplace. The paper concludes with a focus on hybrid models that combine human intelligence with machine intelligence to get exponential results.