Welcome to Extra Mile by HiTechNectar, an exclusive interview series with industry leaders, discussing the latest innovations, tech trends, marketing practices, expert insights, and a lot more.

We’re overjoyed to feature our guest for today’s conversation, Michael Carbonara, CEO of Ibanera, an API-driven fintech enablement platform with a robust compliance engine and integrated cross-border payments network.

Hello Michael! We are pleased to host you today!

Q1. You have ventured into different domains in your career. Walk us through the key experiences that have shaped your successful professional journey. What led you to join the fintech industry?

Ans. I think in many ways I was in the right place at the right time. I was still young and deciding what I wanted to do with my life at around the same time that Europe lead the world with the new payment services directive which I believe was the start of the current regulated fintech world we see today. So, I think I was fortunate to see these changes as they were happening and I saw the possibilities for a new era of banking. A time for open banking, peer-to-peer banking, and the movement toward decentralized finance. This has been a fascinating time, and I wanted to be a part of the innovation that changes the way we manage our money and ultimately provides more financial freedom.

Q2. What are the mission and vision of Ibanera? What makes it different from other fintech organizations in the contemporary period?

Ans. Ibanera is an API-driven fintech enablement platform with a robust compliance engine and integrated cross-border payments network that supports businesses and financial institutions with full Web2 and Web3 interoperability. Ibanera's goal is to establish a standard for providing enhanced banking services for businesses and financial institutions by leveraging the flexibility of fintech innovation, adding value and efficiency to traditional banking rails.

At Ibanera, our target is to simplify processes, create frictionless payments, and reduce the time and risk associated with cross-border transactions. Ibanera enables businesses to focus on their innovative solutions while we take care of their fintech needs.

Ibanera is forward-thinking while backwards compatible. Ibanera works with traditional banking and payments, bringing innovation through blockchain and Web3 connectivity. This is ultimately paving the way towards self-custody and real-time, domestic and cross-border, peer-to-peer payments. Ibanera is creating the infrastructure to allow businesses and consumers to have greater control of their own money.

While working within the regulatory frameworks in each jurisdiction of operation, anti-money laundering (AML) and compliance are always at the forefront of operations in today’s borderless economy.

Q3. What is the significance of security in the financial sector? How does it play a crucial role in retaining clients, and how does Ibanera ensure 100% security while providing services to its clients?

Ans. The financial sector is among the most targeted sectors for cyber threats. Accounting for 8.3% of attacks on critical infrastructure, it is imperative that businesses in the financial sector ensure an up-to-date cybersecurity posture with the relevant tools. To that end, we ensure that leading-edge asset security protocols are in place at all times, as security is a pillar to the effectiveness of our services.

The strength of security protocols can be assuaged by compliance with regulatory requirements, for which our dedicated compliance team is singularly focused on ensuring all necessary procedures are followed.

Q4. What challenges do fintech companies, especially Ibanera, commonly encounter? What strategies do you implement to overcome these difficulties?

Ans. There are many challenges, but I believe that the most successful fintechs are the companies that are constantly adapting to the new challenges and focus on solving the problems and inefficiencies that businesses face. Ibanera’s goal as a fintech is to make banking and payments easier, faster, and cost-effective so businesses can focus on their core business operations.

Ibanera has developed its business strategies and innovations by solving real problems faced by its clients rather than building on assumptions or perceived good ideas that do not work in practice.

Q5.⁠ Ibanera has recently launched the FedNow real-time payments service in the US. What are the key objectives of this development?

Ans. With the digital payment landscape in the US experiencing exponential growth, projected to soar from US$3 billion in 2024 to US$4.6 billion by 2028, Ibanera’s integration into the FedNow service amplifies its fintech prowess, delivering unparalleled innovation to its American clientele.

Our introduction of real-time payments through FedNow is part of Ibanera’s long-term strategy to lead in the development of the new digital economy with cutting-edge financial tools, ensuring businesses and consumers alike experience the immediacy and flexibility they deserve around the clock.

As a fintech innovator within the FedNow network, we aim to bring to the table a robust infrastructure that prioritizes security and compliance, instilling users with unwavering confidence as they engage in swift and efficient transactions synonymous with real-time payment systems.

Q6. Can you highlight a few emerging trends in the fintech industry? Is Ibanera integrating these trends to provide better services and enhance customer satisfaction?

Ans. The digitization of payments has shrunk the globe into a global village, as cross-border payments are expected to catapult from US$190 trillion in 2023 to US$290.2 trillion in 2030. The coming together of economies through borders taken down enabled access to new markets and brought to the surface the need for seamless payments unencumbered by regulatory red tape and security issues.

Fintech leaders must now ensure that they are regulated, compliant, and fully secure to allow for payments from anywhere in the world, instantaneously 24/7, for any currency, including digital assets. This goal is no longer an ideal of excellence so much as it is an industry-standard to keep up with today’s developments.

Companies like PayPal have already begun addressing this but with limited functionality. However, this gap will continue to close over time, especially in the next 24 months, with less regulatory uncertainty around digital assets.

Q7. What is the future of finance? What suggestions would you offer to businesses aiming to make worry-free financial decisions?

Ans. Digital assets bring a key resource to financial services that can’t be ignored. Beyond the applications that come with decentralized technologies like security and pseudonymity, people around the world find it easier to make payments in digital assets like stablecoins and tokenized real world assets across borders because it is secure, instant, and cheaper.

Gone are the days of yesteryear when businesses were forced to wait up to 14 days for intermediaries to complete a simple financial transaction. Digital assets have set a precedent of efficiency that the world must now align with.

To that end, financial institutions must sail on the rising tide of digital assets to keep up with the new precedent for financial innovation. With a transaction volume of US$36.6 trillion in 2023, digital assets have become a permanent force on the global financial markets that will have to be addressed—just like payments with cards or even tapping to pay.