Santosh Radhakrishnan of XYB On The Future of Money and Banking
An Interview With Jason Hartman
Don’t try to please everyone. When I used to work at Oracle, one of my bosses told me to never be afraid of rubbing people up the wrong way. As long as your argument is solid and your decision is the best one for your organisation, your customer and yourself, then don’t change your mind just to make other people happy. If you stick to these principles, you can convince anybody around you to follow you. The most important thing you can do in your career is to make the best ethical decisions and do not let other people’s opinions stand in your way. If you do, everything else will fall into place. Not everybody is going to be happy about everything you do, and that’s fine. Accept it and move on.
The way we bank has changed dramatically over the last decade. It was not too long ago when you had to wait in line in a bank to deposit money. Today things are totally different. You can do your banking without ever walking into a bank. In addition, the whole concept of money has changed. In the recent past, money usually meant bills and coins. But today, the concept of money has expanded to include digital currency and NFTs. What other innovations should we expect to see in banking in the short and medium term?
To address this, we are talking to leaders in the banking, finance, and fintech worlds, to discuss the future of banking and money over the next few years. As a part of this series, I had the pleasure of interviewing Santosh Radhakrishnan.
Santosh is a successful business growth executive, entrepreneur, and active investor who is currently Chief Commercial Officer at XYB. With over 20 years of experience in the core banking, fintech and information technology industry, Santosh has spent his career helping companies to grow, scale and exit successfully.
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started in this industry?
Being passionate about business from an early age, I started my career in financial services consulting before realising I had an urge to be in front of the customer and make a clear difference for them — this led me to move into commercial roles within the banking and finance industry.
My first significant role was at Oracle, where I was responsible for selling Oracle’s financial services applications in core banking, mobile banking, risk management and billing management across Western Europe. Since then, I’ve been part of a lot of fintech journeys, and I am an advisor and keen angel investor in the space. Throughout my career journey, I have been completely in love with the banking and finance evolution, and I am fascinated by innovations in the sector that can help to better serve its end users.
Banking technology has been my bread and butter and my passion for the last 20+ years, driven purely by the interest I developed in my childhood. I would attribute it to my father, who has always been a passionate engineer and an avid investor.
Can you share the most interesting story that happened to you since you began your career?
Sure, I’d be happy to share one of the most intriguing stories from my career journey. While my venture into the banking technology world with Oracle was personally enriching, the standout moment has to be my involvement in the founding team of Saxo Payments, now known as Banking Circle.
This chapter in my career provided an exhilarating experience of navigating the dynamic realm of fintech startups. From swiftly making critical decisions to shaping a robust business model, constructing compelling business case studies, to engaging with stakeholders and creating a positive impact for both businesses and end-users — it was an all-encompassing and deeply fulfilling journey. Witnessing the transformation from startup to scale-up was particularly rewarding, and it fueled my passion for the fintech industry.
These experiences continue to shape my approach in my current role at XYB. Moreover, I’ve embraced a role as an investor in other fintech startups and scale-ups. This allows me to share my knowledge and insights, contributing to the growth and innovation of other ventures. It’s a gratifying endeavor, allowing me to give back to an industry that has been my unwavering passion since those transformative days at Saxo Payments.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
‘The only constant in life is change.’
I don’t mean that as a cliché at all, but this mantra has been a guiding force for me since my childhood on an island in India. While families around me would usually spend two years there before moving on due to government assignments, my parents chose to stay, making me adapt to a constant cycle of new friendships forming and then parting ways.
This early exposure to change became a way of life, teaching me resilience and fostering a deep appreciation for diverse cultures and backgrounds. Looking back, I realize that this upbringing has significantly influenced my personal and professional journey. The relevance of this life lesson extends to my career in the banking and finance industry.
In our dynamic field, where evolution and innovation are constants, the ability to embrace change is paramount. At XYB, we are actively contributing to this evolution by spearheading a coreless banking revolution. The principle of constant adaptation resonates deeply with me, as it mirrors the changes I’ve navigated since childhood.
Change, I’ve learned, is not just a force to accept but a source of growth and opportunity. Embracing this constant has become a cornerstone of both my personal and professional life, fueling my passion for innovation and my commitment to driving positive transformation in the ever-evolving landscape of banking and finance.
Ok wonderful. Let’s now shift to the main focus of our interview. Can you tell our readers about the most interesting projects you are working on now?
As I already mentioned, I have had a strong interest in the banking and finance world from very early on in my life, and this has driven all my career decisions, including my current one. I joined XYB to help it redefine core banking with our coreless banking platform. What we are offering is what the market has been looking for, for some time now. The market has already been through multiple journeys and evolutions, from an old mainframe to today’s cloud-based technologies, but there is still a constant need to evolve and learn better ways of doing things. I believe the market is absolutely ready to accept a very componentised and piecemeal approach to this transformation, which helps them be flexible, achieve higher efficiencies and a faster time to value.
This is exactly what XYB’s technology does — it brings together the best of the breed to help banks avoid a risky journey of repair or replace and instead commence a progressive transformation journey involving the ability to choose and change competencies. For example, if a company wanted to launch a new product, they could combine it with our modern technology and implement several combinations of solutions. This freedom and flexibility will drive the future of banking technology, and XYB is driving the trend now with its coreless banking platform.
XYB is also focused on helping bankers use modern systems in the most efficient way by introducing and integrating new technologies like generative AI. AI is a fascinating technology that I believe will help to streamline roles within the banking industry. For example, if a Risk Officer is working with a new system, they could avoid having to learn a specific technology in order to code their risk parameters within the system and can instead use natural language to parametrise those risk aspects. This means that they can focus on what is actually critical to the business and its stakeholders. We are championing this technology at XYB, and we recently announced a partnership with Google Cloud that will enable us to leverage generative AI for our clients to streamline processes and improve compliance.
I’m excited to talk about the projects I’m currently leading at XYB. With a lifelong passion for the intersection of banking and technology, my career choices have consistently been guided by this interest, and it has led me to an exciting chapter at XYB.
Our primary focus at XYB is to revolutionize core banking through the introduction of the 5th generation of banking technology via our innovative coreless banking platform. In a market that has witnessed numerous technological evolutions, from traditional mainframes to today’s cloud-based solutions, there is a persistent need for ongoing improvement. Recognizing the readiness of the market for the 5th generation, we’re pioneering a componentized and piecemeal approach to transformation. This approach provides unparalleled flexibility, higher efficiencies, and a faster time to value for our clients.
XYB’s technology stands out by offering a blend of best-of-breed solutions, enabling banks to embark on a progressive transformation journey without the risks associated with a complete system overhaul. The ability to choose and change competencies empowers our clients to adapt swiftly to market demands. For instance, launching a new product becomes seamless as our modern technology facilitates various combinations of solutions, ensuring future-proof and adaptable banking systems.
In addition to our coreless banking platform, XYB is at the forefront of incorporating cutting-edge technologies like generative AI to enhance the efficiency of modern banking systems. We recognize the transformative potential of AI, particularly in streamlining roles within the banking industry. Our commitment to this technology is evident in our recent partnership with Google Cloud, where we aim to leverage generative AI to empower our clients. This strategic collaboration is geared towards streamlining processes, enabling natural language interactions for parameterizing critical aspects such as risk, and ultimately improving compliance for a more efficient and agile banking landscape.
These projects underscore XYB’s commitment to driving innovation and shaping the future of banking technology. We’re not just adapting to change; we’re pioneering it.”
How do you think this might change the world?
Our coreless banking platform will fast-track the transformation journey of many banks that are moving away from their existing landscape and towards more modern, cloud-native and agile ways of doing operations.
The biggest winner of this transformation will be the end customer. They will start getting the kind of service they might expect from very modern fintech right across the board, even from a trusted high street bank. From better customer experiences to better financial products, consumers will be able to get the service they have been wanting or even that they didn’t know they wanted. From a business perspective, banks will be able to make this a reality at the speed that they wanted — thanks to technology like ours. It will also create huge benefits for bank operatives who work on these kinds of operations day in and day out by ensuring that they can make an impact by being more productive
Lastly, our coreless banking platform will support sustainability and carbon footprint reduction in the financial services industry. Because our clients don’t have to rip and replace entire systems, getting rid of good components they have in the process, we can re-use technology and projects that are best suited to each client. We are confident that our componentised and modular approach will help financial services companies to avoid unnecessary projects, save precious carbon emissions and create a better world.
Our coreless banking platform is poised to expedite the transformation efforts of numerous banks as they transition from traditional landscapes to more modern, cloud-native, and agile operational methods.
The primary beneficiary of this transformation will undoubtedly be the end customer. With our platform, they can anticipate a level of service typically associated with cutting-edge fintech, even from well-established high street banks — recently launched ZING app by HSBC is a great example. This translates to enhanced customer experiences and a wider array of improved financial products. Consumers will not only receive the service they desire but also discover services they may not have known they wanted. From a business standpoint, banks can realize these improvements swiftly, thanks to the efficiency our technology brings. This, in turn, extends significant benefits to bank operatives who engage in these daily operations, enabling them to make a more meaningful impact through increased productivity.
Importantly, our coreless banking platform contributes to sustainability and the reduction of carbon footprints within the financial services industry. By avoiding the need to replace entire systems, our clients can retain and repurpose valuable components, minimizing unnecessary projects and, consequently, carbon emissions. Our confidence in this componentized and modular approach stems from its potential to help financial services companies adopt environmentally conscious practices, contributing to a better world.
What most excites you about the banking or payments industry as it is today? Can you explain what you mean?
What excites me most about the banking industry today is how the industry has adapted to accept and embrace change. Even the most risk-averse players are now putting their necks on the line to ensure they can become real disruptors in the industry and do things in a different way. It might just be one small change to start with, but everyone now wants to change the world, and that is going to have a huge impact on how our industry grows and develops: the business models are changing for the better.
Something else that excites me about our industry is the pace at which change is happening. What was true last month is not true this month, and that pace keeps everyone on their toes and encourages them to innovate. I strongly believe that this pace of change and its acceptance will lead to some very big things. For example, going back to generative AI, which is often considered to be a new technology, we have something that has actually been in use for many years already — IBM Research showed that 35% of businesses had already adopted generative AI in one form or another before it was coined as the most advanced technology for businesses. These kinds of technologies and adoption rates will lead to significantly better end results.
What excites me most about the banking industry today is its remarkable adaptability and willingness to embrace change. Even traditionally risk-averse players are taking bold steps to become true disruptors, challenging conventional norms and exploring innovative approaches. Whether through small incremental shifts or groundbreaking transformations, there is a palpable desire across the industry to effect meaningful change and make a positive impact on the world. This shift in mindset is reshaping business models for the better.
The rapid pace of change in our industry is another aspect that fuels my excitement. What held true just last month may no longer apply today, and this constant evolution keeps everyone in the field on their toes, fostering an environment of continuous innovation. I firmly believe that this rapid pace, and the industry’s growing acceptance of it, will lead to substantial breakthroughs. Take generative AI, for instance, often perceived as a cutting-edge technology. Surprisingly, it has been in practical use for many years, with IBM Research revealing that 35% of businesses had already integrated generative AI in some form before it gained widespread recognition. Such widespread adoption of advanced technologies holds the promise of delivering significantly improved end results, showcasing the industry’s commitment to staying at the forefront of innovation.
What most concerns you about the banking or payments industry as it is today? What would you suggest needs to be done to address that?
It isn’t a new problem, but I believe there is a lot of work to be done around cybersecurity and the technologies that support the security of financial systems — and this is more important than ever with the number of data threats and breaches that we have seen in recent years. Specifically, there are still a lot of technological advancements and a lot of money that needs to be invested for the industry to keep up with this pace of change that is happening.
I would suggest that the answer to this problem is heavy investment in cybersecurity encryption authentication and specialised education for employees and consumers. Ultimately this will create a security model that can protect all the new things that will come in our industry and simultaneously protect the customer, the bank and the organisation.
One persistent concern in the banking and payments industry that warrants immediate attention is the issue of cybersecurity. In the face of escalating data threats and breaches in recent years, it’s crucial that we intensify efforts to fortify the security of our financial systems. To address this challenge, substantial investments in cybersecurity technologies and infrastructure are paramount.
Specifically, I advocate for robust investment in cybersecurity encryption, authentication mechanisms, and specialized education for both employees and consumers. By cultivating a culture of awareness and understanding, we can fortify our defenses against evolving cyber threats. This proactive approach will not only safeguard the industry against current challenges but also create a resilient security model capable of adapting to the continuous pace of change.
Moreover, I’m deeply concerned about the environmental impact of the banking and fintech sector. While strides have been made in sustainability and carbon footprint reduction, there’s a pressing need for more concerted efforts. Every small step matters, and I urge banks, fintechs, and technology firms to invest significantly in initiatives that genuinely contribute to a more sustainable future. By prioritizing sustainability, we can collectively make a positive impact and create a better world for generations to come.”
How would you articulate how the concept of money has changed in recent times? Is it really a change? How is it still the same? Can you explain what you mean?
At a philosophical level, I think the concept of money has actually remained the same. Everybody still recognises the importance of money, which is still our global trading commodity.
What has changed in recent years is the advancement of digital currencies — including Kryptos, tokens and tokenisation. We have moved away from physical money towards digital money and digital currency, but this is still only about the execution of money and how it’s transferred, paid and received. As the world changes, the form of money we use will constantly evolve, but I do not believe that traditional currencies will ever completely cease to exist.
Based on your vantage point as an insider in the finance industry, what innovations should we expect to see in banking in the short and medium term?
We can expect several innovations in the finance industry in the long term, and it will not be one or the other. As I just mentioned, one of these is going to be digital currencies, and in particular, central bank digital currencies (CBDCs). Another important innovation will be the use of Artificial Intelligence (AI). We are at the very beginning of our journey with AI, with businesses just starting to accept applications such as AI-driven customer service and AI job-driven technologies. Even so, there are already a lot of negative stories about AI and how it will take people’s jobs and replace important elements of our system. On the contrary, I believe that AI will only help enhance many things. I also want to mention blockchain technology here, as I believe it will continue to change and be adopted in different ways despite having been in discussion for a long time already.
In the short term, there are already some impressive innovations being implemented in the finance industry. For example, at XYB, we are working on the next evolution and disruption in banking, with the creation of a coreless banking platform that is proven to give Tier 1 and digital challenger banks and fintechs huge operational efficiencies, lower costs of doing business, and incredible time to value. XYB is a visionary provider of an end-to-end coreless banking platform designed to address the shortcomings of traditional core banking systems in meeting the evolving demands of modern customers.
How has the pandemic changed the way banks interact and engage with their customers?
I think the pandemic was a period where a lot of digitisation journeys were fast-tracked. It has accelerated digital transformation across the board, and especially in the banking space.
As well as pushing a lot of interaction online, it has educated a large number of customers who traditionally only wanted to do their banking in very traditional ways. Due to the pandemic, customers have been forced to use digital channels and, as a result, have learned the benefits of being completely digital.
This shift has also forced financial services providers, banking and payment providers to improve access to digital experiences and ensure that customer engagement has adapted to it. The need for these companies to be more nimble, innovative and quick has caused traditional banks to operate as if they are new fintech companies — and this is a very exciting development. This is where XYB comes in, as we are ideally placed to cater to this shift and support banks faster than any other traditional technology providers.
In your particular experience, how has the pandemic changed the way you interact with, and engage your customers?
Given that the nature of our work is very closely tied up with banks and other financial services companies, we have always needed to be agile and respond to every situation very differently.
On a practical level, the pandemic has impacted how we interact with our clients. Traditionally, we have always been in face-to-face situations with our clients, which has enabled us to understand each other better, communicate well and come up with creative solutions together. But during the pandemic this of course all moved into a digital setting, and we started to adopt a lot of new collaboration technologies such as digital shared whiteboards for brainstorming sessions.
We now work in a hybrid model that takes the best of both worlds. For example, before the pandemic, it was normal for people to travel to different countries for a one-hour meeting because that was always the way that business was conducted. But now we are more practical, conscious and environmentally friendly by doing selective meetings in-person that require face-to-face time but opting for online meetings where possible.
I’m very interested in the importance of user experience. How much of your interactions have moved to digital such as chatbots, encrypted messaging apps, phone, or video calls? How has this shift impacted the user and customer experience? What challenges do these apps present when used as a customer engagement tool?
As we discussed in the previous question, I think the pandemic fast-tracked the adoption of these types of user experience technologies, with customers who were previously wary of them much more likely to embrace them. These technologies have not only helped banks and financial service providers to be more efficient, but they have also meant fewer employees are stuck behind a desk and are instead freed up to serve the customer better.
The increased adoption of these technologies has also hugely benefited the end customer who can now get answers to their questions faster and resolve issues more efficiently. One small example of this is AI being used in payments technologies, which can flag specific payments for anti-money-laundering purposes immediately. Before this technology was introduced in this capacity, it would take a case manager weeks to collect and analyse different data from different channels to come to a conclusion on a specific case so that the payment could be released. So, thanks to these new technologies, customers are getting a better experience with more direct attention, and businesses are seeing lower operating costs.
If you could design the perfect communication feature or system to help your business, what would it be?
From a banking technology perspective, because that is what XYB is focused on right now, I would love to see natural language in AI helping businesses innovate faster.
This would help product managers to launch new innovative products based on customer data and industry data without needing to learn a complex coding language like Python. Instead, they could interact with natural language integrations such as ChatGPT to experiment and build a product which has the best and most innovative functional features to excite their end customers. It would also free up their time to allow them to hyper-personalise each customer experience and product offering.
I believe that this approach could revolutionise our industry and create new benefits for customers and banks alike.
What are your “5 Things You Need To Create A Highly Successful Career In The Modern Finance, Banking and Fintech industries?
1 . Constantly learn. This is one of the most important lessons for me because the learning curve in the banking and finance industry will always be very steep due to the fast-changing nature of the sector. It’s a very exciting industry, but as I mentioned earlier, it changes very quickly so you always need to be on top of new developments, such as how a new product works and how a new technology can add value to our lives and experiences with multiple different moving parts. For me, constant learning is about knowing your domain and industry, but it is also about constantly improving yourself and knowing what you can do to be more happy in your profession. It is very important to know that you’re adding value to society, your profession, to the organisation you’re working for and to the end client that you’re serving. Use all the channels you can to learn, including podcasts, webinars, conferences, events and influencers.
2 . Be adaptable to change. When my parents and grandparents chose their careers, they stuck to them for their entire lives. A mechanic was a mechanic, and they would do that job for 40 or 50 years. But that’s not the case today — I believe that someone who starts their career as a doctor could end up being an astronaut if that’s what they wanted. It is now possible to learn from one industry and be able to apply it to another industry. Given that not everyone is lucky enough to know their passion from an early age, it is important to embrace the change around you and be open to any new possibilities that arrive because of it.
3 . Network constantly. No matter who you interact with daily, everyone is important and you can learn from them. You will always need someone else in this world, so make sure to never burn bridges, always keep in touch and constantly nurture the network that you build.
4 . Have integrity. Professional ethics and integrity are vitally important to any career and industry, and this is something that I learned very early on in my career in my time at blue chip companies. You may say that blue chip companies are very slow and bureaucratic, but they helped me to form a good foundation and learn all the industry domain knowledge that I have today — including networking, accountability and professionalism. For anyone who wants to be successful in their career, make sure to be very true to yourself, be true to your organisation and to any decisions that you make.
5 . Don’t try to please everyone. When I used to work at Oracle, one of my bosses told me to never be afraid of rubbing people up the wrong way. As long as your argument is solid and your decision is the best one for your organisation, your customer and yourself, then don’t change your mind just to make other people happy. If you stick to these principles, you can convince anybody around you to follow you. The most important thing you can do in your career is to make the best ethical decisions and do not let other people’s opinions stand in your way. If you do, everything else will fall into place. Not everybody is going to be happy about everything you do, and that’s fine. Accept it and move on.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
I am very passionate about financial literacy and education.
Growing up in India, I was always taught that education is the most important thing in your life. Unfortunately, I also witnessed a lot of poverty around me. While I was fortunate enough to come from a middle-class family and have access to the luxury of going to school and having things of my choice, I saw many people around me that did not have the means to go to school or did not have parents who could afford to feed them and so had to go to work instead.
Given what I witnessed growing up, I now pick several children from lower income backgrounds to sponsor their education. This is incredibly important to me, because I believe that when you educate someone from a poorer background it creates a ripple effect throughout the community to inspire other people to follow the same path. If one child can grow up to be an engineer or a doctor and have good earnings for their family, their entire family will also have better opportunities to create better lives for themselves and those around them. They will also inspire the rest of their community to invest in education and make efforts to study.
I truly believe that a good education can help many people in this world, and financial literacy is an important part of that — and something that needs to be improved in all our educational systems. Everybody goes to school and studies math, science and English. But they don’t learn the mechanisms of how finance works and how investing some money now could lead to huge amounts in 20 years’ time. The book ‘Rich Dad, Poor Dad’ is my go-to gift for anyone in my life at an important age (such as teenagers), and I encourage them to learn as much as possible from it and apply it to their lives.
I strongly believe in these two things, and I am certain that if everyone were to help make these changes it would make the world a better place.
How can our readers further follow your work online?
The XYB website is a good place to go: https://xyb.co/.
Very soon, we will introduce a blog series on banking and coreless banking, which you can follow and read on my personal LinkedIn page or Finextra blog. My personal LinkedIn page will also keep you updated on where I’ll be speaking in the future and any interviews I have done recently, and I would love to interact with people here.
Thank you so much for the time you spent doing this interview. This was very inspirational, and we wish you continued success.
About The Interviewer: Jason Hartman is the Founder and CEO of Empowered Investor. Jason has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. Empowered Investor helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Through Jason’s podcasts, educational events, referrals, mentoring and software to track your investments, investors can easily locate, finance and purchase properties in these exceptional markets with confidence and peace of mind.
Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate. While brokering properties for clients, he was investing in his own portfolio along the way. Through creativity, persistence and hard work, he earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased a California real estate brokerage firm that was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s sought after educational events, speaking engagements, and his popular “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 189 countries worldwide.
While running his successful real estate and media businesses, Jason also believes that giving back to the community plays an important role in building strong personal relationships. He established The Jason Hartman Foundation in 2005 to provide financial literacy education to young adults providing the all-important real world skills not taught in school which are the key to the financial stability and success of future generations. We’re in a global monetary crisis caused by decades of misguided policies and the cycle of financial dependence has to be broken, literacy and self-reliance are a good start. Visit JasonHartman.com for free materials and resources.
