US-based core banking platform Finxact has partnered with Canada-based KPMG to promote embedded finance changes and modernisation of the banking core. Through this partnership, KPMG will advise customers on the Finxact platform and will help them in their digital transformation journey.

Officials from KPMG have stated in the official press release that ambient banks, fintechs, and transaction-focused banks are all tackling unique challenges that can be addressed using modern infrastructures. KPMG aims to help entities on the Finxact platform reach new markets, embed finance solutions, or improve unit economics. The collaboration between the two companies will facilitate the integration of KPMG’s digital design and systems integration competences with Finxact’s core banking platform.

Finxact’s clients stand to benefit by improving their customer experience and bringing products quicker to market while cutting costs. Furthermore, banks will be able to reimagine their operating models, keep up with their competitors, and enter new markets. The KPMG Pulse of Fintech H1'22 reveals that banks aim to meet the increased demand for new and original digital experiences in order to retain and attract customers.

They are also looking to implement next-generation core technology in order to achieve these goals. More information about the two companies KPMG is the US firm of the KPMG global organization of independent professional services firms providing audit, tax, and advisory services. According to KPMG, this global organization operates in 144 countries and territories and has more than 236,000 people working in member firms around the world.

As for Finxact, its core is an Open Banking platform engineered to support the scale and regulatory requirements of large financial institutions. Its cloud-native platform provides 100% accessibility to all data and functions via a set of modern APIs, empowering fintechs, banks, and their partners to deliver new experiences by creating products on demand and integrating new services as needed. Other recent KPMG developments In March 2022, Canada-based KPMG has partnered with cloud payments company Volante Technologies to offer ISO 20022 and real-time payments readiness diagnostics.

As a result of this collaboration, banks and payment service providers could start their real-time payments journey with The Clearing House RTP and prepare for new instant payment schemes as they become available. Moreover, financial institutions could modernise their legacy wire and ACH payment systems, and strategically position themselves for emerging payments trends such as embedded banking, all while becoming ISO 20022 compliant. In February 2022, KPMG added crypto assets to its treasury in Canada.

The allocation included Bitcoin and Ethereum as well as carbon offsets that helped maintain a net-zero carbon transaction in an effort to stay true to the firm's stated environmental, social, and governance (ESG) commitments. KPMG established a governance committee to provide oversight and approve the treasury allocation. The committee included stakeholders from sectors such as Finance, Risk Management, Advisory, Tax, and Audit.

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