This document contains an assignment for Mohana N with details of their name, USN, branch of study, and institute. It also contains information about tokenization in financial technology (fintech) companies, including definitions of tokenization, benefits of tokenization, recent fintech trends, and statistics. Some of the major fintech companies discussed include Revolut, Klarna, Mollie, UiPath, and challenges they face related to tokenization and cyber security.

1. ASSIGNMENT
NAME : MOHANA N
USN : 4SN20CS035
BRANCH : Computer
Science and Engineering
INSTITUTE : Srinivas Institute of technology

2. Tokenization
 Converting sensitive data into Non sensitive tokens that can be used in a
database or internal system without bringing it into scope.
 Tokenization is one of several security techniques to consider
 This is an effective strategy for reducing the risk of sensitive data being compromised
in enterprises. as well as ensuring that they satisfy industry compliance
 Standards and continue to reach their objectives.
 The security of a tokenization approach depends on the security of the
sensitive values and the algorithm and process used to create the surrogate
value and map it back to the original value.

3. Benefits of tokenization
 Tokenization simplifies and secures the payment acceptance process.
 Tokenization is more than a simply security feature, it aids in the smooth process
of payments and the satisfaction of customer
 Increase the customer trust
 Tokenization reduces data breaches
 Tokenization increases trust with your customer
 Payment Innovation is encouraged by tokenization
 Improved security and fraud prevention
 Increased efficiency and speed
 Enhanced liquidity
 Greater accessibility
 Transparency

4. Recent Trends
Open banking :
 Open banking is among the hottest fintech trends in the industry.
 It enables secure data sharing and collaboration between financial institutions, technology
companies, and customers.
 Users can allow their financial data to be accessed by authorized third-party service
providers and leverage personalized solutions such as budgeting apps, investment platforms,
and loan marketplaces.
 Facebook and Instagram are leading this fintech trend with services like marketing and
shopping, but many others are in line.
 Open banking has been widely recognized and well-integrated into financial ecosystems over
the past few years and will continue to be among the top fintech trends in 2023 and after.

5. Artificial Intelligence and Machine Learning :
 AI and ML are one of the major key trends in fintech.
 Artificial Intelligence (AI) refers to stimulating machines with human intelligence
and enabling them to perform functions that need human reasoning.
 Machine Learning (ML) is a subset of AI that allows devices and systems to learn
from data using algorithms and improve without explicit programming.
 The fintech industry has leveraged AI and ML to automate tasks such as managing
client data, detecting human errors, recommending management strategies,
preventing fraud, and performing quality checks.
 Chatbots and self-learning apps can provide insights into customer behavior and
help improve financial services. AI is also used for checking the quality in Business
Process Outsourcing.
 As of 2023, the AI in Fintech Market size is approximately USD 42.83 billion and is
forecast to reach USD 49.43 billion by 2028, with a CAGR of 2.91% during the
forecast period (2023-2028).

6. Buy Now Pay Later (BNPL) :
 This emerging fintech trend allows users to make purchases and defer the payment
over time.
 With BNPL, customers can split the total amount into smaller, interest-free
instalments, usually over a fixed period.
 It has gained popularity due to its simplicity, quick approval process, and the absence
of interest charges if paid on time.
 In 2021, BNPL was used in deals worth $120 billion worldwide and is anticipated to
touch $576 billion by 2026.

7. Gamification :
 Making finance fun and easy, and encouraging positive financial behaviors, here is one of the
biggest trends in fintech- Gamification.
 Applying game-like elements such as badges and digital rewards, cashback and vouchers, loyalty
points, etc., to financial services engages and motivates users.
 This fintech trend, valued at around $9.1 billion in 2020, is expected to reach approximately
$30.7 billion by 2025, with a CAGR of over 27%.

8. Embedded Finance :
 Embedded Finance involves fluidly incorporating financial services and products into non-
financial platforms, like e-commerce websites, mobile apps, or other digital landscapes.
 Technological advancements, such as Application Programming Interfaces (APIs) and cloud
computing, have contributed to the rapid growth of embedded finance.
 Various industries, including e-commerce, ride-sharing, healthcare, and social media platforms,
are assimilating embedded finance to offer a more comprehensive customer experience.
 Open banking users globally are expected to increase at an average annual rate of about 50
percent from 2020 to 2024.
 In the year 2020, there were 24.7 million open banking users globally, and this figure is poised to
reach 132.2 million by 2024.

9. Supporting Statistics

10. Cont…
 Service providers were continuously trying to find out ways to increase the precision of work, enhanced
services, safety and work with growing technology.
 The requirement for these reasons is being fulfilled through the implementation of the tokenization as they
are used to provide enhanced, uninterrupted free, and timely services at the industrial operations.
 The tokenization in various industries is being used widely due to the rising demand for customer
experience. It enables industries to enhance their operations and productivity.
 Tokenization’s help end-users to make better decision regarding payment modes, assets management,
safeguard customer data, and others.
 The global tokenization market is in the growth phase rapidly due to growing digitization in various
industries which drives the demand for the tokenization.
 The companies are even launching new products to gain a larger market share.
 Data Bridge Market Research analyses that the machine control system market is expected to reach the
value of USD 2,108.23 million by 2029, at a CAGR of 16.6% during the forecast period.
 Solutions accounts for the largest offering segment in the tokenization market. The solutions provides
accurate information which is utilized to develop high precision IoT network.
 The tokenization market report also covers pricing analysis, patent analysis, and technological
advancements in depth.

11. Cont..

12. Potential future development
 The fintech sector, currently holding a mere 2% share of global financial services revenue, is
estimated to reach $1.5 trillion in annual revenue by 2030, constituting almost 25% of all
banking valuations worldwide
 The number of fintech jobs in Europe would grow by a factor of 2.7 to more than 364,000
 The volume of funding would more than double to almost €150 billion from €63 billion
 And valuations would grow by a factor of 2.3 to almost €1 trillion—almost twice the combined
market capitalization of Europe's top ten banking
 Npay , One of the Fastest Growing Fintech Firms in Europe, Posts Record Results While
Announcing UK Expansion and Growth
 Conclusion: Fintech will continue to be a driving force of the future. By 2023-2024 we can
expect greater use of blockchain, AI and IoT in financial transactions

13. 10 Fintech companies
Qonto :
 Founded in 2016, the French fintech Qonto provides online banking services to small and
medium-sized enterprises (SMEs) across Europe.
 A significant $552m Series D funding round at the start of 2022 saw the company’s valuation
reach $4.98bn, with Tiger Global and TCV leading the round of investment.
 The fintech offers digital banking tools to assist SMEs with their finances, providing business
bank accounts, payment processing solutions, expense tracking and invoicing.
 Qonto also provides real-time notifications, expense categorisation and multi-user access.

14. REVOLUT :
 Revolut is a British financial technology company that offers banking services
 Send money or divide expenses with families or friends immediately, whether they are on the table or
worldwide
 Set goals, receive immediate updates on expenses, and view weekly insights to keep track of your
expenses.
 With Revolut you can send money overseas in 30+ interbank exchange currencies at a small 0.5%
discount per month on anything exceeding £1,000.
Trade Republic :
 Trade Republic is a German mobile investment app that offers commission-free trading of stocks, ETFs,
and derivatives to customers.
 Launched in 2019, the fintech has already reached a valuation of over €5bn and boasts more than 1m
users.
 The company aims to democratise investing by making it accessible to everyone, regardless of their
investment experience or budget.
 Its app offers a user-friendly interface and a broad range of investment options, making it a popular
choice for both seasoned investors and newcomers to the stock market.

15. CONT….
Mambu :
 Operating in over 5 countries worldwide, Mambu is a German fintech offering a
cloud-based banking platform to help businesses streamline and modernise their
financial services.
 The fintech’s valuation reached $5.5bn after it raised $266mn in Series E funding
at the end of 2021, with investment led by EQT Growth.
 Mambu’s software enables companies to deploy new products, improve customer
experiences and automate back-end operations.
 With clientele ranging from large financial institutions to small startups, the
fintech’s platform is designed to be highly flexible and customisable, making it
suitable for a wide range of financial services, including loans, deposits and
payments.
.

16. Mollie :
 Netherlands-based fintech Mollie saw its market capitalisation soar to $6.5bn
after it raised $800m in mid-2021.
 The fintech offers payment solutions to a range of businesses, from start-ups
to large enterprises.
 Its platform allows merchants to accept payments from a wide range of
payment methods, including credit cards, iDEAL and PayPal, among others.
 Currently serving 120,000 businesses across Europe, Mollie's payment solutions
are designed to be easy to integrate, with simple and transparent pricing
solutions

17. CONT…
Klarna :
 Sweden’s Klarna was once the highest-valued fintech in continental Europe, being worth over $10bn
in 2020.
 By 2022, however, its market capitalisation had dropped some 85% from the previous year.
 That is until a venture round in July 2022 saw it raise a further $800m at a value of $6.7bn, making
it the fifth largest fintech in continental Europe today.
 Founded in 2005, Klarna provides financial services for online storefronts, direct payments and
installment plans.
 With its “Pay Later” feature, Klarna allows customers to pay for products in interest-free
installments.
 Since its founding, the company has raised over $4.5bn in funding and now serves more than 85m
customers in 17 countries.
Rapyd :
 Rapyd lets corporations to give services with currency exchange round the world.
 They are designing a technology that reduces cross-boundary trading history complications while
offering experience in local payments.

18. CONT…….
UiPath :
 UiPath is a Romanian software company specialising in Robotic Process Automation (RPA).
 The company’s software helps businesses automate repetitive tasks by building and deploying
software robots that interact with digital systems.
 Founded in 2005, UiPath is now one of the most widely used RPA platforms, serving customers in
various industries such as finance, healthcare, and government.
 The company's mission is to democratize RPA and make automation accessible to everyone,
without requiring advanced technical skills. A public company, UiPath’s market capitalisation
currency stands at $7.8bn.
Pelo :
 Danish fintech Pleo has raised a total of US$428.1M in funding over 6 rounds, with its latest
investment of $200m in December 2021 taking the company’s valuation to $4.7bn.
 Offering smart company payment cards and expense management solutions for businesses, Pleo
automatically categorises its clients’ expenditures, reducing the administrative burden of
expense management.
 The fintech integrates with accounting software such as Xero and allows companies to set
spending limits and control employee expenses.

19. Checkout :
 Many of the most forward-looking organizations in the world use Checkout's unified system to shape their plans.
 They have a provision for a quicker, smoother, and more connected payment experience across countries with their
linked payment technologies and payment options.
 In order to maximize payment flows and release complete value from any process, they give companies the data to
identify patterns and make wise decisions.
Nexi :
 Nexi is a leading company in Italy, which involves issuing, selling, automation, interbank corporate banking, confirmation
and payment services in a range of sectors.
 In the form of card payment acceptance technologies, cash transactions between businesses and private entities, and
the management of increasingly complex technological facilities, including corporate banking, Nexi offers the most
innovative payment options for banks and insurance agencies.

20. Brief profiles of some companies
FINTECH
COMPANY
NAME
ROLE KEY RESPONSIBILITIES CHALLENGES RELATED TO
TOKENIZATION
REVOLUT To simplify all things money
Revolut exists to remove all
the friction that stands in the
way of your money goals
becoming your new reality.
We're building a platform so
effortless, so seamless, so
borderless that you'll never
want to use another financial
service again
Revolut offers banking
services including GBP and
EUR bank accounts, debit
cards, currency exchange,
stock trading, cryptocurrency
exchange and peer-to-peer
payments. Revolut's mobile
app supports spending and
ATM withdrawals in 120
currencies and transfers in 29
currencies directly from the
app.
Global bank and financial technology
company Revolut was hacked, resulting in
more than US$20m having been stolen.
A flaw in Revolut's US payment system
allowed cyber criminals to steal millions
over a period of several months in 2022
before the company could close the
loophole
KLARNA
Klarna is the leading global
payments and shopping
service, providing smarter
and more flexible shopping
and purchase experiences to
150 million active consumers
across more than 500,000
merchants in 45 countries.
Klarna's core service is
to provide payment
processing services for the e-
commerce industry, managing
store claims and customer
payments.
And also like : Compliance
Management , Customizable
Branding,
Data Security , Debit/Credit
The two big problems for Klarna are credit
losses and administrative expenses --
employee salaries, offices -- the cost of
actually running the business.
And cybersecurity.

21. MOLLIE We are Mollie, a finance
industry pioneer and one of
Europe's fastest-growing
fintechs. We believe that
every business has the right
to grow, and that drives us
to create products that
simplify financial services –
effortless payments, flexible
financing, powerful
integrations, and more.
Mollie's mission is to simplify
complex financial services to
become the world's most
loved PSP. Mollie has over
130,000 customers and an
international team of more
than 700 employees.
43% of retailers cited the high cost of
shipping as a major challenge.
Almost half of retailers (48%) said that
projected delivery dates were the top
reason for abandoned carts with consumers
being put-off by long dispatch and arrival
times.
Conversely, 43% said that unexpected or
additional charges like delivery fees were
the main reason for abandoned carts.
59% said over-reliance on third parties for
shipment was a key factor hindering
growth.
UiPath Work closely with design
team to identify project
requirements and understand
documents like SDD, TDD.
Ensure timely completion of
assigned tasks as per the
Project Plan. Design, code,
test, and document.
Coordinate with Testing /
Quality Engineering teams to
ensure proper testing is
performed
Work closely with design team
to identify project
requirements and understand
documents like SDD, TDD.
Ensure timely completion of
assigned tasks as per the
Project Plan. Design, code,
test, and document.
Coordinate with Testing /
Quality Engineering teams to
ensure proper testing is
performed
So that's mostly the types of problems you
would be solving with UiPath, as far as
problems that the UiPath program has itself,
and again some of these are not
universal, image capture doesn't have much
feedback to it, things like click image don't
always work well, OCR for any RPA program
is always hit or miss based

22. Major Problems
Cyber Security :
 Additionally, Fintech companies also face challenges related to cybersecurity and data privacy.
 As they collect and store sensitive financial data, they are at a higher risk of cyber-attacks and data breaches.
Such adversaries can lead to reputational damage, legal liabilities, and financial losses if they fail to protect
their customers’ data.
Ownership of data :
 Data ownership refers to who can manipulate data in the fintech and banking industries. The
regulatory system decides who can create, access, modify, and delete data.
 Security roles determine the ownership of data in fintech software solutions. This enables
effective management of complicated circumstances involving access credentials and access
level. This results in minimized risks concerning third-party system breaches and countless
financial and reputational damages.

23. Digital identities :
 Smartphone apps and contactless payments are fantastic innovations for users. But they
also pose significant risks and challenges for data. Digital IDs should have some key
features that assure users of their safety:
• They are trusted and verified – digital identities prove valuable when regulators,
authorities, or important stakeholders approve them;
• They are secure – they must have features against theft, loss, corruption, and encryption
for data safety;
• They are portable – digital IDs should be just as functional as physical documents.

24. Third-party service integrations :
 Third-party service integrations have become an integral part of modern applications because
they allow users to see coherence and effective performance throughout their apps, paving the
way for product functionality improvement opportunities and competitiveness.
 A possible problem with integrating third-party applications into fintech solutions is the security
risk.
 Insufficient security in third-party integrations can harm the fintech industry because it
compromises app security and digital security of banking and financial assets.
 BlueVoyant says that over 93% of companies went through a cybersecurity breach because of
weaknesses in their supply chains or third-party application

25. User retention and experience :
 Fintech industries rely on consistent users to stay profitable. But they must find ways to balance
user experience and security practices. An essential feature to offer your fintech users is a
mobile banking app that's both safe and easy to use.
 Consider that the more layers of protection you use on your app, the higher the chances are that
you will lose some users based on customer experience.
 Most customers prefer a simple logging process, not waiting for a message or authorization code
they must fill in themselves to access their app.
 That's why you must ensure a safe and user-friendly interface. Try to implement a silent mobile
verification process that requires you to open your app and sign in, then wait for a few seconds
before getting access to your information.

26. SOLUTIONS for the Problems :
Adopting secure-by-design mindset :
 System security concerns are crucial to fintech software development and implementation.
The security-by-design mindset is a critical item to introduce to this ecosystem.
 It implies investing many resources to create a clear cyberattack defense infrastructure. In
turn, it reduces penetration risks and minimizes infrastructure recovery costs.
Protecting sensitive data :
 Because we're talking about the fintech and banking industries, personal user data must be
kept safe. Only authorized personnel should have access to this information.
 Fintech companies must constantly update their security protocols to stay up to date with
new vulnerabilities and ensure user data is always safe.
 Data encryption is one of the most sought-after measures for protecting sensitive data. It
transforms data into formats readable only by people with access to a decryption key.

27. Using software composition analysis :
 Software composition analysis is the name of an automated process that works by identifying open-source
software in a codebase.
 Simply put, it allows companies to evaluate their system security, code compliance, and quality quickly.
 Companies in the fintech sector usually use this system to identify problems and brainstorm actions to
remediate them proactively.
 By extension, it minimizes or entirely avoids financial, operational, and reputational impacts on companies
Blockchain technology :
 It help us to the peer to peer communications
 Blockchain is a technology where we are using Multiple blocks to store the data about Transactions
 So it is a secure way to protect our data
 Fintech companies have recognized the potential of blockchain technology for tracking financial
transactions. From digital wallet apps to finance-management systems, blockchain can benefit a wide range
of fintech products.
 The global blockchain market is predicted to grow significantly in the coming decade, with the technology
offering features like decentralized data exchange systems and digital ledgers that can solve many
challenges facing the industry.

28. Security and Fraud Prevention:
 Financial institutions must implement strong security measures and fraud prevention systems to
protect customers from cyber-attacks.
Protect Data :
 A fintech company that prioritizes data security is more likely to succeed in the long run.
 Security breaches are a costly threat to the fintech sector, as hackers are always on the lookout
for opportunities to steal personal data, such as credit card information, from mobile apps and
vulnerable fintech software.
 To mitigate this risk, tech-minded financial companies must stay one step ahead of hackers and
keep their virtual security walls impenetrable.
 Fintech applications must prioritize data security to maintain customer trust. If customers are
concerned about their privacy or security being violated when using a product, they are unlikely
to use it, and the company's reputation could be severely damaged.

29. Finding Tech Talent :
 Finding the right tech talent is a major challenge for fintech product managers who are
responsible for developing mobile apps.
 The fintech industry is highly competitive, and skilled developers with experience in mobile
app development are in high demand.
 These product managers need to find developers who not only have technical expertise but
also understand the unique needs of the financial industry.
 Additionally, it's essential to find developers who are willing to work in a fast-paced,
dynamic environment and can adapt to rapidly changing technologies.
 In a market where time-to-market is critical, finding tech talent quickly can make all the
difference in the success of a fintech product.
 When building a fintech mobile app that requires AI capabilities, this requires expertise. An
AI-driven OCR solution requires people with experience in building machine learning
models, computer vision, and neural networks.
 If recruiting, onboarding and overseeing a team is going to slow down your pace of
innovation, consider going with a fully built-out AI solution. Not only will this save you in
hiring costs, but it will provide you with time savings from having a pre-trained AI model.

30. THANK YOU