Alex: Hi everybody, and welcome back to The Curiosity Code podcast. I'm Alex, your host and CEO of Productera. Today, we have a fantastic guest — Alison Rooney. Alison has been building partnerships in fintech for over 15 years, working with major companies like Google and Accenture while helping innovative startups find their place in the industry. She specializes in digital transformation, advisory sales, and forging strategic business alliances. Right now, she’s at Google, building a startup ecosystem focused on cloud and AI-driven financial services. Alison, it’s great to have you here!

Alison: Thanks, Alex! I really appreciate the introduction, and I’m excited to be here.

Alex: Let’s start with what you’re working on at Google. You’re building a fintech startup ecosystem—can you paint a picture of what that looks like and the kind of startups involved?

Alison: Absolutely. So, in the cloud world, the word "ecosystem" gets used a lot, but for us, it means two things. First, it’s about fostering innovation with fintech companies—not just helping them run on Google Cloud, but also leveraging AI, data analytics, and next-gen financial infrastructure. The second part is serving end customers—the major financial institutions like global banks, hedge funds, and high-frequency trading firms—by connecting them with the right fintech solutions.

Alex: That makes sense. What are Google’s key goals in growing this ecosystem?

Alison: A big part of it is meeting customer demand. Google is expanding its footprint in financial services, especially in North America. For example, the Chicago Mercantile Exchange (CME) signed a billion-dollar deal to migrate its entire on-prem infrastructure to Google Cloud. Other major exchanges and banks are also moving to cloud and AI-based solutions. So, our goal is to enable those transitions while driving fintech innovation.

Alex: That sounds like a major shift. With fintechs integrating cloud-based solutions into legacy financial infrastructure, what are the biggest challenges you’ve seen?

Alison: One of the biggest challenges is risk. Financial institutions are naturally risk-averse, especially when it comes to digital transformation. Many have been relying on legacy systems for decades, and maintaining those mainframes—some built in COBOL 40 years ago—is costly and inefficient. But now, banks are realizing that these systems are too expensive to maintain and that they’re missing out on modern technology like AI and blockchain. The question is: do they gradually upgrade, or do they completely rebuild?

Alex: Have you seen cases where companies have successfully made that transition?

Alison: Yes, high-frequency trading firms are a great example. These firms have essentially become technology companies, using AI and machine learning for trading strategies. They’ve also been pioneers in moving to modular, cloud-based architectures, which makes them more agile compared to traditional banks.

Alex: What about startups? Have any early-stage fintechs impressed you by challenging conventional players?

Alison: Definitely. In core banking, neobanks have reshaped the market, especially in the UK and Europe. In wealth management, fintechs are disrupting an industry that’s traditionally been fragmented and inefficient. Many wealth platforms today are just a patchwork of systems that don’t provide a seamless experience. Some fintechs are addressing that by building AI-driven, customer-first investment platforms.

Alex: That’s a perfect segue into go-to-market strategies. Since fintechs are moving away from single-application models toward ecosystem-based solutions, what’s the best strategy for scaling?

Alison: That’s a great question. One key shift is that fintechs need to think beyond direct sales. Instead of just selling to financial institutions, they should focus on embedding their solutions within cloud marketplaces. Google Cloud, AWS, and Microsoft Azure all have fintech marketplaces where institutions can easily discover and integrate fintech products.

Alex: How difficult is it for a fintech startup to get listed on a cloud marketplace?

Alison: It depends on the product. If you’re offering data services, it’s fairly straightforward. But if you’re selling a trading platform or a more complex fintech solution, it requires more effort to structure it for cloud deployment. Many founders underestimate how much work it takes to make their product marketplace-ready. It’s not just about hosting—it’s about ensuring compatibility with enterprise buyers.

Alex: Let’s shift gears to AI. Everyone’s talking about it, but how do you see AI transforming cloud-based fintech ecosystems?

Alison: AI is already embedded in financial markets, from fraud detection to automated trading. What’s changing now is how AI is improving wealth management and customer experience. AI-driven financial advisors are getting better at personalization, helping users make smarter investment decisions. AI is also streamlining onboarding, compliance, and KYC processes, making it easier for users to engage with financial platforms.

Alex: But there are concerns about data privacy. How do you see fintech firms addressing that?

Alison: Privacy is a massive concern, especially with AI. That’s why many asset managers and financial firms are moving towards private cloud environments rather than relying on public cloud AI models. They want full control over their data and algorithms to prevent leaks or external access.

Alex: Are we already seeing financial firms adopt private cloud AI?

Alison: Yes, it’s happening now. Major asset managers are setting up private AI models to analyze their portfolios while ensuring sensitive data remains secure. Some fintechs are even offering "AI-as-a-service" solutions to help financial institutions deploy secure AI models without exposing their proprietary data.

Alex: That’s fascinating. Looking at the broader fintech landscape, how do you see cloud providers like Google differing from traditional consulting firms like Accenture?

Alison: Cloud providers focus on infrastructure and product innovation, while consulting firms focus on regulatory compliance and digital transformation strategy. Large financial institutions often turn to consulting firms for guidance on AI, compliance, and risk management, while fintechs look to cloud providers for the technical infrastructure to scale their solutions.

Alex: We touched on AI a bit earlier, but I want to dive deeper. How do you see AI impacting fraud detection, risk management, and compliance in fintech?

Alison: AI is already playing a huge role in those areas. Fraud detection, for example, has become much more sophisticated with AI. Traditional rule-based fraud detection systems struggle to keep up with evolving threats, but AI can analyze transaction patterns in real time and detect anomalies much faster.

Alison: In risk management, AI helps financial institutions assess credit risk by analyzing alternative data sources beyond traditional credit scores. This is especially important for financial inclusion, as many people and businesses lack traditional credit histories but are still creditworthy.

Alison: Compliance is another area where AI is making a big impact. Regulatory reporting is complex and time-consuming, but AI can automate much of that process by scanning transactions, identifying risks, and ensuring compliance with evolving regulations.

Alex: That’s really interesting. But with AI playing such a critical role, what are the ethical concerns, and how should fintechs address them?

Alison: One of the biggest ethical concerns is bias in AI models. If the training data is biased, the AI’s decisions will be biased too, which can lead to unfair lending practices or discriminatory fraud detection. Financial institutions need to be very careful about ensuring AI models are trained on diverse, unbiased datasets.

Alison: Another challenge is explainability. As we discussed earlier, regulators and customers want to understand why an AI model made a certain decision. That’s why "explainable AI" is becoming a major focus in fintech—companies need to build transparency into their models from the start.

Alex: Makes sense. Do you think financial institutions are doing enough to address these concerns?

Alison: Some are, but there’s still a lot of work to do. The leading institutions are investing in AI governance frameworks, hiring AI ethicists, and implementing model validation processes. But many companies are still in the early stages of thinking about these issues.

Alex: So, for fintech founders looking to integrate AI into their solutions, what’s your best advice?

Alison: First, make sure you have access to high-quality, diverse datasets. AI is only as good as the data it’s trained on. Second, build explainability into your AI models from the start—don’t treat it as an afterthought. And third, stay ahead of regulatory developments because AI regulations are evolving quickly, and compliance will be key to scaling successfully.

Alex: That’s great advice. Let’s switch gears a bit. You’ve worked at Accenture and now Google—what are some key differences in how large consulting firms and big tech companies build fintech ecosystems?

Alison: At Accenture, the focus was more on strategy, compliance, and digital transformation. Consulting firms work closely with banks to help them navigate regulatory complexities, optimize processes, and implement new technologies.

Alison: At Google, the focus is on technology enablement. We provide the infrastructure, AI, and data analytics that fintechs and financial institutions use to scale their solutions. We work with startups and large enterprises to help them leverage cloud computing, AI, and embedded finance.

Alex: So consulting firms are more about advisory, while cloud providers are about execution and enablement?

Alison: Exactly. Consulting firms guide financial institutions on how to transform, while companies like Google provide the tools and platforms to make that transformation happen.

Alex: That’s a helpful distinction. Now, let’s talk about embedded finance. It’s a hot topic—how do you see it evolving?

Alison: Embedded finance is going to continue growing. More non-financial companies are integrating financial services into their platforms—whether it’s payments, lending, or insurance. We’re already seeing companies like Shopify offering banking services, and even social media platforms exploring financial products.

Alison: The key driver of embedded finance is customer experience. People don’t want to go to a separate bank website to apply for a loan or make a payment—they want financial services embedded seamlessly into the platforms they already use.

Alex: That’s a huge shift. Do you think traditional banks will struggle to keep up?

Alison: Some will. The banks that embrace partnerships with fintechs and embedded finance providers will thrive, while those that resist change may struggle to compete. The key is for banks to think beyond traditional financial products and start offering financial services where their customers already are.

Alex: That makes a lot of sense. Let’s talk about cloud adoption. What are the biggest barriers preventing financial institutions from fully embracing the cloud?

Alison: The biggest barriers are security, compliance, and legacy infrastructure. Financial institutions handle massive amounts of sensitive customer data, so they’re understandably cautious about moving to the cloud. They need assurance that cloud providers can meet strict security and regulatory requirements.

Alison: Another challenge is legacy infrastructure. Many banks still rely on mainframe systems built decades ago, and migrating those systems to the cloud isn’t easy. That’s why hybrid cloud strategies are becoming popular—banks are keeping some systems on-premise while moving others to the cloud in phases.

Alex: Are you seeing financial institutions overcoming these challenges?

Alison: Yes, but it takes time. The leading institutions are investing in secure cloud environments, working with regulators to ensure compliance, and gradually modernizing their infrastructure. We’re seeing more banks adopt multi-cloud strategies to avoid vendor lock-in and ensure resilience.

Alex: That’s encouraging. Before we wrap up, I have one final question. If you could build your dream fintech startup and recruit anyone from history to join your team, who would you choose?

Alison: That’s a tough one! I’d probably choose Muriel Siebert—she was the first woman to have a seat on the New York Stock Exchange. She was a trailblazer in finance and understood the industry deeply. I’d also want someone with a strong innovation mindset, maybe someone like Elon Musk—someone who’s always pushing boundaries and thinking big.

Alex: That’s a great mix—finance expertise and disruptive innovation.

Alison: Exactly. To build a successful fintech, you need deep industry knowledge and the ability to think differently about financial services.

Alex: Alison, this has been an incredible conversation. Thanks so much for sharing your insights!

Alison: Thank you, Alex. I really enjoyed it!

Alex: And to our listeners, thanks for tuning in! Don’t forget to subscribe and share this episode. See you next time!