Software-as-a-Service (SaaS) is one of many embedded finance services that has helped propel the payments industry into other industries in a transformative way, but are we only scratching the surface of its potential?
Thomas Müller, CEO of fintech Rivero, spoke to Payment Expert on SaaS’ capabilities, the company’s early success after recently coming off an award win for Best Risk or Compliance Project at the Pay360 awards for its compliance management solution Kajo, and how its Amiko solution is being deployed to help fraud recovery.
Payment Expert: Firstly Thomas, how significant was the early year $7m funding round to enable Rivero to grow so far this year?
Thomas Müller: Our $7m funding round was pivotal for Rivero’s growth this year, as it allowed us to scale operations, ramp up sales and marketing efforts, and enhance our product offerings significantly.
Using the capital raised, we invested heavily in research and development, particularly in scheme compliance, fraud recovery, and dispute management solutions, and this focus has both improved our offering and positioned us as a trusted partner in the market. Additionally, we were able to accelerate the expansion of our team, which enabled us to strengthen our partnerships with key financial institutions.
As a result, Rivero is now well-equipped to meet the increasing demand for streamlined payment operations, setting the stage for sustained growth and innovation in the future.
Taking it back to your time as a Chief Information Security Officer, what were some of the more prevalent fraud methods and which emerging methods are being problematic for financial institutions?
During my time as Chief Information Security Officer (CISO) at Viseca, traditional fraud methods like card-not-present (CNP) fraud and account takeovers were particularly top of mind for me.
However, we now also face emerging threats such as first-party fraud, which pose significant challenges for financial institutions. The increasing speed and complexity of these fraudulent activities has meant that we need to advance our processes to enhance consumer protection effectively and at speed.
As fraud tactics evolve, it’s crucial for institutions to stay ahead by implementing robust security measures and continuously updating their strategies to safeguard against these growing risks.
How is Rivero deploying Software-as-a-Service for fraud recovery and dispute management challenges?
Rivero is deploying Software-as-a-Service to tackle fraud recovery and dispute management by automating manual processes for scheme compliance, resulting in faster resolution.
Our scalable solution easily integrates into existing systems, helping financial institutions reduce infrastructure costs while enhancing efficiency. Notably, our SaaS model significantly decreases time-to-go-live, allowing customers to implement the system within weeks rather than the months or years typical of other software delivery models.
This rapid deployment ensures that institutions can respond swiftly to fraud challenges and improve their operational effectiveness.
With SaaS being used in this regard, has it barely scratched the surface of its capabilities? What other payment facets can SaaS positively impact that it hasn’t already?
SaaS has definitely only just scratched the surface of its capabilities in the payments and banking sectors. Future impacts could include enhanced payment processing, improved customer authentication, and streamlined onboarding processes, as well as the facilitation of easier management of open banking API integrations and regulatory compliance.
This shift may lead institutions to adopt a “best-in-class” approach, sourcing from specialised providers instead of relying on one large monolithic vendor.
As SaaS continues to evolve, it will enable financial institutions to quickly adapt to changes and scale their operations efficiently, unlocking further potential in the payment landscape.
Are there any impending European regulations that will help accelerate and streamline the payment process over the next few years and is too much regulation hampering the capabilities to perform faster payments?
Upcoming European regulations like the Digital Operational Resilience Act (DORA) will likely enhance payment processes by standardising operational resilience, leading to more secure and efficient systems.
It’s clear that regulations such as the Payment Services Directive 2 (PSD2) have already fostered innovation through open banking and improved security. While regulation is crucial for stability, excessive oversight can hinder innovation and delay faster payment solutions.
Therefore, finding the right balance between regulation, security, and compliance is essential for accelerating payment capabilities while ensuring a robust framework.
Lastly Thomas, and thank you for your time, in what ways will AI not only benefit SaaS but the overall payment industry in accelerating payment processing?
AI benefits SaaS and the payment industry by reducing costs and enhancing consumer protection through personalised interfaces, whilst also minimising human intervention via automation.
In the broader payment sector, AI improves fraud detection and prevention while enabling predictive and adaptive payment systems, resulting in more efficient payment operations.
These advancements not only accelerate payment processing but also enhance overall user experience and security.