In the dynamic realm of fintech, one often overlooked yet critical process is exception handling in payment systems. For most businesses, especially startups, freelancers, and entrepreneurs, understanding and optimizing this process can determine the difference between success and operational nightmare. Drawing on her multidisciplinary expertise, serial entrepreneur Violetta Bonenkamp shares insights into how AI, automation, and ISO 20022, the evolving global messaging standard for financial operations, are reshaping exception handling.
For Violetta, whose deeptech ventures often involve complex financial and technical ecosystems, this transformation is not just a compliance tick-box but a strategic enabler for growth, agility, and innovation.
What Exactly is Exception Handling and Why Does it Matter?
Exception handling is a mundane-sounding yet mission-critical process within payment systems. When something goes wrong during a transaction, duplicate payments, incorrect details, or compliance mismatches, this creates what the industry calls an exception. These errors halt the payment flow, requiring either manual intervention or automated fixes. For startups and growing businesses, these issues can disrupt operations, strain customer relationships, and incur hefty fees.
Statistics indicate that between 1% and 3% of all bank transactions result in exceptions, which sounds small but balloons when scaled to thousands of daily transactions. According to a report from Finextra, streamlined exception handling has become pivotal as companies increasingly move toward real-time payments and faster processing speeds.
Here’s where automation, AI, and ISO 20022 come in. For Violetta Bonenkamp, the visionary founder of Fe/male Switch and CADChain, these technologies are not just tools, they are a necessity for businesses to innovate and stay competitive in a globalized marketplace.
How AI, Automation, and ISO 20022 are Transforming Exception Handling
1. AI-Powered Predictive Analytics for Proactive Resolution
AI is making waves in mitigating errors by detecting potential exceptions even before they occur. AI models, powered by machine learning algorithms, analyze historical transaction patterns and behaviors to predict when and where things may go wrong.
For example, take the case of transaction delays. Advanced solutions like the Pegasystems Smart Investigate platform use "Agentic AI" for real-time recommendations, helping businesses resolve issues faster while cutting costs.
2. Automating Routine Exception Workflows
Most exceptions today still require labor-intensive interventions. Automation, however, accelerates processes such as flagging, notifying, correcting errors, and re-submitting transactions. This removes human bottlenecks while delivering measurable improvements in efficiency.
Studies reveal that AI-driven automation can clear up to 85% of routine exceptions without human input while slashing costs by up to 70%. Using tools like ISO 20022-compatible payment solutions, businesses can standardize global messaging systems and minimize inaccuracies caused by differing payment standards.
3. ISO 20022 as a Game-Changer in Payments
Unlike outdated SWIFT MT messaging formats, ISO 20022 carries rich, structured data, including payment details, customer-specific metadata, and transaction settlements. For business owners, this means fewer reconciliation headaches, faster settlements, and a unified payment protocol that connects them to banks and customers worldwide.
To entrepreneurs, this standard is much more than a compliance requirement. As Violetta points out, ISO 20022 not only "bridges the gap between last-mile commerce and cross-border systems" but also magnetizes your product or service offerings to international clients by demonstrating payment competence.
A Step-by-Step Guide to Implement ISO 20022-Driven Exception Handling
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Understand Your Existing Workflow
Map out areas where payment errors occur most often. This includes identifying bottlenecks in your banking integrations and e-commerce platforms. -
Adopt the Best Tools for the Job
Explore platforms like Pega Smart Investigate or Supercharged AI Payments. These tools leverage the power of AI and ISO 20022 to automate error detection, escalation, and problem-solving. -
Train Your Team
ISO 20022 implementations must be understood by your teams, particularly for basic troubleshooting and optimizing new workflows. Look for platforms that integrate onboarding and tutorials to upskill your staff. -
Integrate Analytics
Use AI-enabled dashboards to analyze exception trends, predict future challenges, and find correlations between client types and payment problems. Data-driven insights will make your team proactive rather than reactive. -
Monitor and Adjust
Ongoing optimization is key. Start by tracking metrics like error resolution time, the volume of manual interventions avoided, and savings from automated workflows.
Most Common Mistakes to Avoid
- Ignoring Legacy Obstacles: Relying on outdated payment systems or clinging to manual exception handling will undermine the benefits of automation.
- Underestimating Training: Adoption is not enough; failing to train teams on how to manage ISO 20022 or AI tools often renders systems ineffective.
- Treating Exception Handling as a Low Priority: As Violetta emphasizes, “A single exception may seem insignificant, but aggregated over time, ignoring these errors is like death by a thousand cuts for businesses.”
Why Every Startup or Entrepreneur Needs to Care
As a startup founder with extensive experience navigating complex financial ecosystems, Violetta’s perspective shines a light on the incredible opportunities automation, AI, and ISO 20022 present. These technologies don't just eliminate barriers; they modernize financial operations for flexibility and resilience.
For instance, in her initiatives at Fe/male Switch and CADChain, tapping into cutting-edge AI has enabled her projects to scale exponentially without being bogged down by mundane operational challenges like exception handling.
By leveraging tools such as ISO 20022-ready platforms and AI insights, smaller startups, freelancers, and solo entrepreneurs can compete with industry giants, offering speed and reliability as core selling points. For Violetta, these are the very benchmarks of "gamepreneurship."
Conclusion
Exception handling is no longer a back-office function, it’s a strategic opportunity. For entrepreneurs and startups aiming to craft customer-centric and globally fluent operations, embracing technologies like AI, ISO 20022, and smart automation is non-negotiable. They’re not just tools, they’re accelerators of growth, agility, and innovation in fiercely competitive markets. With adoption patterns spearheaded by pioneers like Violetta Bonenkamp, the future of exception handling is brighter, faster, and smarter for those ready to adapt.
FAQ
1. What is exception handling in payment systems?
Exception handling refers to the process of managing errors or issues that occur during payment transactions, such as duplicate payments or incorrect details. These exceptions disrupt the payment flow and often require manual or automated resolution. Learn more about exception handling in payment systems
2. How common are payment exceptions?
It is estimated that 1% to 3% of all bank transactions result in exceptions. While this percentage may appear small, it can become significant for businesses handling a large volume of daily transactions. Check out Finextra's data on exceptions
3. What role does AI play in exception handling?
AI helps detect potential exceptions before they occur by analyzing historical transaction patterns. For instance, platforms like Pegasystems Smart Investigate use AI-powered predictive analytics to suggest real-time resolutions and cut operational costs. Learn more about Pegasystems Smart Investigate
4. How does automation improve exception handling?
Automation accelerates processes by flagging, notifying, correcting errors, and re-submitting transactions without human intervention. Advanced tools clear up to 85% of routine exceptions and reduce costs by up to 70%. Discover automation workflows with ISO 20022
5. What is ISO 20022 and how does it impact exception handling?
ISO 20022 is a global messaging standard that carries rich and structured payment data, enabling easier reconciliation, faster settlements, and cross-border compatibility. It significantly reduces payment exceptions by providing standardized messages with detailed data. Explore ISO 20022's role in payment systems
6. Why is exception handling critical for startups and entrepreneurs?
Efficient exception handling ensures smooth operations, prevents customer dissatisfaction, and reduces costs. For startups and freelancers, adopting AI and automation early can create a competitive edge in the market. Check out insights from Violetta Bonenkamp
7. How can businesses implement ISO 20022 for exception handling?
Businesses can start by mapping current workflows, selecting ISO 20022-compatible tools like Pega Smart Investigate, and providing team training for successful adoption. Ongoing optimization through AI-enabled analytics is also essential. Discover implementation tips for ISO 20022
8. What should businesses avoid during exception handling optimization?
Common mistakes include relying on outdated legacy systems, underestimating team training needs, and treating exception handling as a low-priority task. Addressing these issues is critical for successful implementation. Discover pitfalls and solutions in payment exception handling
9. How does ISO 20022 benefit small businesses and freelancers?
ISO 20022 integrates advanced, structured messaging with metadata, making it easier for small businesses to connect with banks and global customers. It helps them build a credible, globally competitive payment structure.
10. How does Violetta Bonenkamp's expertise influence exception handling strategies?
Violetta Bonenkamp emphasizes leveraging AI-driven tools and ISO 20022 to streamline exception handling, ensuring operational flexibility and scalability for startups, freelancers, and entrepreneurs. Learn more about Violetta Bonenkamp's projects
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
