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Future of Fintech - Edition #102 (16th-22nd Jan)
Fintech Buzz Incoming! ☕
Gear up to kickstart your Tuesday with a dose of energising fintech elixirs. Dive into our curated hot-off-the-press headlines here to zest up your week, traversing the tech peaks of Europe and the digital havens of Asia, where financial revolutions are unfurling. Don't settle for the sidelines; dive into the heart of the fintech whirlwind. We've curated the perfect blend to ensure your fintech adventure is nothing short of extraordinary! 🚀
What’s on the fintech menu today?
📖 Today’s Must Read: BaaS Under the Microscope
🌟 Fintech Fiesta: The Week's Hot 10!
🌐 ‘Byte’ Buzz: Fintech highlights, sorted by segment!
🔗 Link Up: Your gateway to resourceful links!
Hit that subscribe button like you're making a contactless payment – quick and seamless! Grab a cuppa of some weekly fintech brew, and let's geek out together! 📨
Fin-teresting Stories in Fintech 📰
Not So Much About That ‘BaaS’: BaaS under the microscope
Unleashing a revolution in the financial industry, Banking-as-a-Service (BaaS) has taken the world by storm, disrupting traditional banking models and empowering non-banks and fintechs to serve underserved segments. But as this feast of modular, on-demand banking capabilities unfolds, regulators have started to take notice.
Authorities are now holding banks accountable for their BaaS partnerships - from the Federal Reserve in the US to stringent European regulators, the scrutiny is intensifying.
What lies ahead for the BaaS landscape with this global regulatory squeeze? Find out in our latest blog post - “BaaS Backlash: The Great Unbundling Under Scrutiny” - where we dissect the great unbundling under scrutiny. 👇
Plunge into the 102nd Edition of the fintech spectacle, where innovation surges and intrigue takes centre stage!
The Week's Hot 10! ♨️🔟
In notable collaborations for the benefit of consumers – Tesla joined forces with Origence, an end-to-end lending solution, to offer credit union financing options to those purchasing electric vehicles. Simultaneously, Akoya, a financial data management platform, called upon the Consumer Financial Protection Bureau (CFPB) to cease screen scraping and restrict the secondary use of data, advocating for heightened consumer protection.
Elevating the global presence of fintech, Nubank Mexico partnered with Felix Pago to introduce a WhatsApp payments solution, allowing Nu Mexico customers to seamlessly receive funds from the US via WhatsApp. In another development, banking technology provider 10x Banking secured $38.1M from its existing investors, fueling its ongoing global expansion efforts and business outreach.
Striking strategic agreements to leverage each other's technological strengths, Finastra and data and AI company Databricks collaborated to enhance financial software solutions by integrating advanced AI capabilities. Concurrently, ATB Ventures unveiled a partnership integrating Oliu, its digital ID verification solution, with Flinks to provide frictionless digital ID verification features.
Last week marked a strategic focus on growth, with investment management giant Franklin Templeton eyeing expansion in the crypto space beyond Bitcoin and anticipating further filings for exchange-traded products (ETPs). Additionally, Paxos, a blockchain and tokenisation infrastructure platform, broadened its stablecoin issuance to include the Solana blockchain platform.
It was a week of wealth wonders! Synchrony Financial decided to acquire Ally Financial's point-of-sale financing business, encompassing $2.2B in loan receivables. This acquisition enables Synchrony Financial to offer home improvement sector customers revolving credit and instalment loans at the point of sale. Meanwhile, Singapore-based global digital banking group Tyme achieved an impressive annualised revenue run rate of $160.3M in 2023.
Now, for the ‘byte’-sized fintech buzz –
Enter the thrilling world of Embedded Finance, where fintech leaders engage in launching and collaborative moves to pioneer the next wave of advancements.
Malaysian e-wallet Boost expanded its Shariah-compliant PayLater feature, called Boost PayFlex, to cover all transactions within its app as well as QR code payments. Boost will customise credit lines to individual affordability assessments to prioritise responsible lending as a regulated entity.
Treasury Prime, an embedded banking software company, entered into a strategic partnership between FirstBank - a Federal Deposit Insurance Corporation (FDIC) member, and High Circle, a banking and investment platform. As part of this partnership, High Circle is providing a financial technology platform to provide access to commercial checking accounts issued by FirstBank and up to $125M in FDIC insurance through the Intrafi network.
Immerse yourself in the bustling sphere of Open Finance, where fintech enthusiasts from around the globe are making waves in the financial landscape with their groundbreaking strides.
London-based fintech firm Volopa teamed up with open banking API provider Yapily. The collaboration aims to streamline the funding journey for Volopa’s UK clients, delivering a seamless payment experience for finance teams.
The National Bank of Kazakhstan and the National Payment Corporation announced the initial outcomes of their innovative Open API and Open Banking pilot project, signifying Kazakhstan's entry into the realm of Open Banking nations.
Embark in the dynamic realm of Digital Finance, where players in the Asian fintech arena were seen creating ripples in the financial landscape with their stream of achievements.
Digital-only neobank Tonik entered into SME lending in the Philippines by optimising its Big Loan solution for the financial needs of small and medium-sized enterprises. Tonik's Big Loan offers entrepreneurs flexible, tailored repayment options, competitive interest rates, and a streamlined application process that elevates the lending experience of small and medium enterprises (SMEs).
AEON Bank received approval from Bank Negara Malaysia and the Minister of Finance to initiate its digital banking operations in Malaysia. Looking ahead, AEON Bank is looking to extensively expand its operations and enhance its array of solutions for both retail and wholesale members, encompassing ecosystem partners such as auto dealers, merchants, tenants, suppliers, and more.
Indulge yourself in a Fintech Infrastructure escapade, where collaborators craft partnerships to deliver seamless financial experiences.
Financial innovation platform Array partnered with Narmi, a digital banking solutions provider, for enhanced credit monitoring and offering anti-fraud identity monitoring benefits. In addition, Narmi will provide financial institutions access to Array’s actionable credit-based offers solution.
Finshape, a vanguard in the fintech solutions landscape, and Arab National Bank partnered to revolutionise personalised banking in Saudi Arabia. Finshape will leverage its state-of-the-art technology, specialising in personalisation and data analytics to augment ANB’s banking services.
Dive into the dynamic world of DeFi, where global players imprint on the fintech universe through collaborations and regulatory advancements.
Payment processing solutions provider Paycorp partnered with Singapore-based Triple-A to support digital currency withdrawals. This collaboration aims to enable users of the Paycorp-powered CryptoExpress app to utilise their digital currencies for cash withdrawals at the thousands of ATMs across South Africa.
The Canadian Securities Administrators (CSA) proposed a new Crypto Rules for Public Investment Funds. Under the proposed new regulations, only alternative investment funds and non-redeemable investment funds would be allowed to trade or have crypto assets in custody directly.
Step into the Green Finance arena, where players aim to establish a greener financial realm with a special emphasis this week on the MENA and EU regions.
Mastercard partners with CarbonSifr, a UAE-based climate tech company, to advance climate action in the MENA region. The two partners will support SMEs with climate awareness and carbon footprint measurement initiatives, while also enabling players in the broader ecosystem to embed climate action into their payment processes with local data.
The European Banking Authority (EBA) initiates a consultation on proposed guidelines outlining requirements for banks to identify, measure, manage, and monitor ESG risks. Requirements for banks under the proposed guidelines would include undertaking regular materiality assessments of ESG risks and the integration of ESG risks in their regular risk management frameworks, with considerations of impact across risk categories.
And that's a wrap 👋
We hope you enjoyed this edition of the Weekly Fintech Brew!
As a reward for making it all the way here, enjoy a curated list of awesome fintech resources to keep your curiosity cup full to the brim. Cheers to continuous learning! 🔗
Link Up! –
Open API Open Banking: report on the results of the Pilot Project - National Bank of Kazakhstan and the National Payment Corporation of Kazakhstan
The Future of Money, Finance and Banking - An Innovation Thesis by Barclays
BaaS Backlash: The Great Unbundling Under Scrutiny - WhiteSight
Stripe’s Economic Infrastructure Playbook - WhiteSight
If you're hungry for more fintech insights, check out some of our other work at WhiteSight.
If you're someone who likes to read think pieces, you will likely love our monthly blog, Fintersections, where our team members analyse the convergence of fintech with the world.
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