We chat with Rüdiger Vogt, Head of FinTech Programmes at Giesecke+Devrient (G+D), a trusted provider of secure currency solutions for physical and digital realms. Partnering with major payment schemes, they’re involved in 200+ digital payment projects, serving 700+ banks globally. Vogt shares insights into his career, industry outlook and G+D’s initiatives.
How did you begin your career in the FinTech industry, and what led you to become the Head of FinTech Programmes in the PayTech Business at G+D?
After gaining experience in the dynamic semiconductor industry, I was searching for a global, exciting high-tech business with a clear long-term development perspective. G+D matched my ambition.
I started working in sales and business development positions mostly with traditional banks. But, of course, in the years after 2008, more and more new players were emerging.
What impressed me was their focus on creating a stellar user experience based on the latest digital technology. About four years ago, I was running a product line for digital identification at G+D when the idea for a FinTech programme for cards and digital payment solutions materialised.
The opportunity to develop a dedicated business relationship with key players in the FinTech market, with the aim of driving payment innovation together, was very appealing. I was, therefore, delighted to take the lead for this programme.
Could you share some key milestones and experiences in your career that have been particularly instrumental in shaping your role as the Head of FinTech Programmes, and the insights you’ve gained from these experiences?
My previous experience as a global account executive helped me understand the needs of clients that are expanding into new geographies. A highlight from this time was a joint development agreement that secured a leading market position for my client.
Starting out at G+D with traditional banks was a perfect foundation to understand the banking and finance system. At this point, FinTechs were seen as niche in their infancy and were ignored by some traditional banks. Now, Nubank and CashApp have millions of users.
During my time as head of the remote identification business I learned how to manage partnerships and develop business with FinTechs, alongside what it means to position a secure digital solution globally. Winning the first bank as a client was a major milestone.
I am always learning from the many talented people at G+D around the world. As we jointly develop the business, each new client we win is a key milestone for us. Whether it is a big multinational FinTech or a small startup with lots of potential, we always celebrate our successes together.
G+D helps traditional banks adapt to FinTech disruption. Could you share some key strategies that traditional banks should consider in this rapidly evolving landscape?
The world of payments has turned ‘phygital’. A phygital strategy blends the benefits of physical banking infrastructure – branches, real-world branding and payment cards – with the advantages of digital services, such as easy-to-use websites, apps and payments. By doing this, traditional banks can offer an outstanding customer experience at the most effective cost. A good example of the phygital approach is seen in payments cards. Modern payment cards are supported by digital apps for additional functionalities and digital solutions can automate the card issuance and activation process.
Phygital strategies also give banks the opportunity to leverage data to better serve their customers. Consumers can set their own spending limits for approval via an online user interface, or even have the option to design their own physical payment card with the help of an online portal.
It’s also worth noting the security offered by phygital deployments. Consumers can set their preferred level of data privacy using internet banking services or apps or authenticate digital transactions with a card or biometric marker.
Can you tell us more about the advanced card technology that recognises owners via their fingerprints? How is this technology shaping the future of banking?
The integration of biometric technology into payment cards combines the convenience of contactless payments with the simplicity of fingerprint recognition. As many consumers already use fingerprint verification to unlock their devices, the adoption of this technology for payments not only offers extra convenience but is also something users are familiar with. Thus, biometric authentication adds a new dimension of trust without requiring users to learn a new technology or adopt a new behaviour. For payment service providers, offering biometric cards as a payment option represents a real point of differentiation. With flexible payment limits, biometric payment cards allow even big-ticket payments to be made as a simple card transaction, with the biometric technology providing added security.
G+D focuses on digital security, financial platforms and currency technology. Could you elaborate on how these areas are interconnected and contribute to the company’s success?
G+D is a global SecurityTech company with a clear purpose. We make the lives of billions of people more secure. The company shapes trust in the digital age, with built-in security technology in three segments: Digital Security, Financial Platforms and Currency Technology.
We’re very much a SecurityTech organisation at our heart. Across all our businesses and in every physical and digital solution we offer, built-in security technology is the common denominator. It’s essential to our value proposition towards our clients and the public, and it’s how we ensure our clients can offer reliable solutions to their customers and citizens with confidence.
In the realm of financial platforms, we offer innovative solutions for card and digital payments, as well as trusted software for the financial industry and other highly regulated environments. We create a holistic customer journey, from onboarding and authentication, card issuance and digital banking, to highly secure checkout in eCommerce.
As Head of FinTech Programmes what are your long-term goals for the Card and Digital Payment business at G+D?
Working with FinTechs globally, the main long-term goal is sustainable growth, both for our clients and for us. We are a family owned SecurityTech company, and entrepreneurial spirit and innovation are deep in our DNA. That is also the reason why we strive for long-term business partners sharing the same vision. Our focus here is to use trusted technology as a basis for creating new solutions for a changing world, together with other top players in the industry.
We have some exciting plans in the pipeline. From a regional perspective, we are planning to expand in hypergrowth markets such as India and Brazil. Alongside this, we are actively looking for even more partnerships in our extended ecosystem, whether it’s payment service providers, banking-as-a-service platforms or eco-innovators.
With financial security being paramount, how is G+D innovating to ensure that both traditional banks and FinTech startups maintain the highest levels of security in their services?
Banks should be mindful of their consumers’ security concerns. Customers are now demanding much more transparency when it comes to how information is stored and collected, in tandem with personalised experiences. Any successful phygital strategy therefore requires robust digital security to ensure customers have the same peace of mind as when they complete physical transactions.
To close the gap between innovation and security, banks should use tokenised infrastructure, which ensures the safe provision of payment credentials and securing of customer payments across all touchpoints.
Multi-factor authentication can also ensure an additional layer of security. Financial institutions can benefit from implementing password-less authentication solutions using verifiable human biometrics such as fingerprints or facial recognition for an enhanced user experience.
In the ever-changing FinTech industry, what trends do you see emerging in the near future that traditional banks should be prepared for?
FinTechs are particularly good at creating a personalised, dynamic experience for specific customer groups like the eco-conscious, fashionistas and small businesses. This is difficult to copy for traditional banks that typically need to meet the needs of a very diverse customer base. Traditional banks must ensure they don’t reduce their offering to a common denominator that is not attractive enough for each segment they serve.
When it comes to innovation, FinTechs have been the first to use generative AI for fraud prevention and an enhanced user experience, alongside gamification in investment and financial education. They have been successful in connecting financial services with eco-activism, conscious consumption, community building and lifestyle.
These developments hold significant importance for traditional banks to maintain relevance and avoid losing touch with at least part of their customer base. By leveraging their digital subsidiaries, banks can remain competitive, while partnering with FinTechs and PayTechs can lead to collaborative innovations that help them to stay ahead of the curve.