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Insights and Expertise

A voice from the UK: While there is an appetite for the things that open banking
can do, there is little appetite for the term itself. What
The SME outlook does this mean for the fintech industry? It means that the
general public don't always get excited about the things we
get excited about, and that's okay.
for 2025 They don't need to know the app they use to apply for

credit or manage their finances is part of a larger ecosystem
of services created by the Payment Services Directive 2
regulatory framework. And we as an industry don't need
to promote open banking as a concept, or even talk about
it, when we can promote the individual services that open
banking enables.
By Scott Dawson We are not the USA
DECTA The U.S. election has generated its share of headlines and
analysis, and the fintech industry has joined the hype
e were assured 2024 was going to be the train.
Year of the SME. Did it feel that way? We
had a budget that was lackluster at best and Frankly, ideas we're seeing from the United States right
W actively hostile to small businesses at worst. now will likely be watered down before they come into
Inflation remained high, and ordinary people, whose contact with reality: tariffs that would vastly increase
spending is the lifeblood of small and midsize enterprises consumer prices, a radically reduced federal government
(SMEs), were cautious about the economy. that would leave millions of workers jobless, and constant
references to trendy topics like AI and cryptocurrency
SMEs and the companies that work with them must that may have little to no real world implications.
advocate for themselves and build systems that can turn
their fortunes around in 2025. Payments systems can help What does this mean for us on this side of the Atlantic?
SMEs keep more of each transaction and offer far more Honestly, not much. Despite Brexit, the UK is always much
options for consumers. The ability to offer financing on closer to Europe in regulatory terms, so a flurry of red tape
orders would be huge for many SMEs; it could start the cutting in the United States isn't going to affect our own
recovery process for them. legislation. The UK's economy is interlinked heavily with

The AI backlash begins (kind of) the U.S. economy. That's true. But not to the extent that
major up- or downswings will move our own economy
AI has been the overwhelming press story in recent years. too much.
Companies like Kraft Heinz, Coca Cola and McDonalds
began using generative AI, with mixed results. The initial It's natural to be concerned about what a geopolitical six-
excitement has largely died down. More people are asking hundred-pound gorilla like the United States is doing,
what AI can really do. The term "AI slop" has become but we should be sober-minded about the level to which
shorthand for the surreal, disturbing images and videos our economies are really intertwined. It's likely whatever
flooding social media. happens there isn't going to mean the end of the world.

So, is there going to be an AI backlash? Not exactly. AI is In this environment the UK's SMEs need all the help
used every time you make a payment, see an online ad they can get, and that starts with a payments system
or talk to a smart speaker. It is absolutely a part of our customized to their needs. This is the crucial role that our
lives and a part of the payments ecosystem. However, industry plays. We need to do more than ever to equip
generative AI has limited applications and few paths to businesses to ensure 2025 is the best year yet.
profitability. Is AI here to stay? Absolutely. Will there be
exciting, surprising and controversial developments in Scott Dawson, head of sales and strategic partnerships at DECTA, is a
the near future? Definitely. But its groundbreaking, world highly motivated and results oriented individual with 20 years of experi-
changing development is yet to come. ence within the payments industry. Previously, he served as commercial

Open banking director at Neopay. He has also held fraud management positions at PSI
Holdings and Neteller, before becoming senior fraud manager and then
While open banking has been on the forefront of fintech business development manager at ClickandBuy, which was acquired by
conversation since 2018, it hasn't been as successful as its Deutsche Telekom. DECTA provides end-to-end payment infrastructure,
creators would have hoped. Many people either haven't from acquiring to issuing and processing, but unlike other players in
heard the term or have negative perceptions of it. But the crowded payments marketplace the company offers bespoke-as-
many people are using it without even knowing. Open standard solutions aimed at making payments accessible to everyone.
banking is in fact quite popular so long as you don't call it Contact Scott via LinkedIn at linkedin.com/in/scott-dawson-uk.
open banking.
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