Galileo's Evolution in Banking Technology, Lending, and Credit: 10 Key Takeaways

Andrew Lambert, Senior Product Director, Cards & BaaS, Cross River

June 6, 2024

3 min read

In a recent webinar I hosted Scott Johnson, Vice President of Revenue at Galileo, and we discussed the dynamic landscape of banking technology, lending, credit, and the evolving role of Galileo within this ecosystem. Our conversation highlighted the importance of modern banking cores, regulatory compliance, and the opportunities that lie ahead. Scott is a true industry veteran; his passion is contagious, and his expertise is a real asset for those lucky enough to work with him – and he’s a genuinely nice guy to boot! I could have written a book recapping our conversation, but for the sake of all our schedules, here are 10 takeaways:

  1. The convergence of payments and banking: Galileo is strategically blurring the lines between payments and banking, empowering banks and fintechs with innovative solutions through the integration of their payment expertise and modern banking core. 

  2. Addressing legacy tech debt: The prevalence of outdated technology, such as COBOL-based bank cores, hinders innovation. Galileo's modern banking core addresses this challenge, enabling fintechs to deploy multiple products on the same core. 

  3. Defining program management: The definition of program management varies within the industry. Galileo views it as marketing card programs, while they focus on core services like transaction clearing, chargebacks, disputes, fraud mitigation, and monitoring. 

  4. Regulatory scrutiny: The regulatory landscape is evolving, prompting a re-evaluation of roles and responsibilities. Galileo's position within a bank holding company strengthens their compliance focus, ensuring adherence to regulations. 

  5. Fintech investment trends: While Fintech investment has eased since its pre-pandemic high, it remains substantial. The key difference is an increased investor emphasis on profitability and, to some extent, a shifted focus on more established businesses with existing customer bases. 

  6. The “black eye” for the industry: The fallout of failed relationships between BaaS middleware providers, bank partners, and their fintech partners could be viewed as a setback for the industry. However, it also presents an opportunity for companies operating with strong practices to further solidify their position. 

  7. AI and emerging tech: Galileo embraces emerging technologies like AI and machine learning. Their AI-driven payment risk platform has proven successful in reducing fraud loss and improving efficiency. 

  8. The SMB opportunity: Lending on receivables and providing credit solutions to SMBs with established relationships are emerging trends in the market. Galileo is well-positioned to support these evolving needs. 

  9. Real-time payments: While real-time payments offer specific use cases, such as B2B transactions, their widespread adoption faces challenges in fragmented markets like the US. The adoption will continue but at its own pace. 

  10. Growth in Latin America: The electronification of payments in Latin America is a big growth opportunity. Galileo is partnering with fintech innovators to drive financial inclusion and expand its reach in the region. 

The conversation with Scott unveiled a wealth of insights into the ever-changing landscape of banking technology, lending, and credit. As the industry continues to navigate challenges and opportunities, collaboration and innovation will remain crucial for success. 

Watch our full conversation here: