EMI-tting Success: UK Fintechs Bag Licences!
Future of Fintech - Edition #108 (27th Feb-4th Mar)
Fintech brewed fresh: Licences are fueling innovation, open banking partnerships are hitting the gas, and DeFi is tightening its security belt. What else is steeping? Read on! 👇
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What’s on the fintech menu today?
📖 Today’s Must Read: From Vision to Victory in the Race of Profitability
🌟 Fintech Fiesta: The Week's Hot 10!
🌐 ‘Byte’ Buzz: Fintech highlights, sorted by segment!
🔗 Link Up: Your gateway to resourceful links!
Fin-teresting Stories in Fintech 📰
Digital Banking: Where Profitability Meets Possibility!
Digital banks have certainly been triumphing against the odds in 2023!
In a landscape teeming with hurdles, digital banks have conquered licensing battles, service excellence, and financial sustainability.
In a whirlwind of reflections from 2023, we have witnessed several proud declarations of profitability milestones by numerous digital banks. This marks a pivotal chapter in their journey toward financial prominence. But what's the secret to their newfound profitability?
Explore how owning banking licences, embedding lending capabilities, and industry collaborations are propelling them toward financial stability.
From yearly triumphs featuring Dutch bank Bunq to quarterly strides led by Philippines' UnionDigital Bank, and monthly victories showcased by UK's Monzo, witness the global surge towards financial prominence.
As regulatory scrutiny sharpens, digital banks are refining strategies, promising superior products while scaling new heights in profitability. Join us as we unravel the dynamic journey of digital banking in our “2023 Roundup: From Vision to Victory in the Race of Profitability” blog, shaping the financial landscape one milestone at a time.
Edition #108’s digest brings you a cuppa brimming with the latest innovations shaping the financial landscape worldwide.
The Week's Hot 10! ♨️🔟
Open Banking Goes Mainstream: Mastercard announced plans to launch open banking-driven digital account openings for select US debit and prepaid products. Additionally, South Korea’s Financial Services Commission (FSC) launched two new policy initiatives to further develop and expand open banking in the country.
The BaaS Boom Continues: BaaS platform Synctera secured $18.6M to fuel its tech growth. Additionally, audax, known for its comprehensive digital banking solutions, joined forces with cloud banking tech giant Thought Machine to offer end-to-end digital banking and BaaS solutions.
Small Businesses Get a Boost: Card issuing platform Marqeta partnered with payments firm Affinipay to power the pending launch of MyCase Smart Spend — a spend management solution powered by a LawPay Visa SMB credit card — to streamline expenses and manage finances. Meanwhile, B2B embedded finance startup Fairbanc secured $13.3M for expanding BNPL offerings in Indonesia, aiming to revolutionise MSME financing.
European Fintech Takes Center Stage: Finland-based card issuing and processing company Enfuce secured an Electronic Money Institution (EMI) licence in the UK. At the same time, French telecom giant Orange partnered with BNP Paribas to provide its services to Orange Bank's customers in France and Spain.
New Fintech Offerings Tailored for Diverse Needs: BNPL fintech Tabby launched Tabby+, a monthly subscription service that expands BNPL in the UAE, allowing shoppers to pay in four instalments anywhere using their Tabby Card. Identity risk management company Alloy also launched 'Alloy for Embedded Finance', a product custom-designed for sponsor banks, BaaS providers, and their fintech partners to collaboratively manage identity risk and stay ahead of regulatory requirements.
Now, for the ‘byte’-sized fintech buzz –
The Embedded finance landscape was all about breaking down the walls between traditional banks and tech startups, giving FIs and individuals the power to manage their money their way.
Treasury Prime launched a series of new initiatives, including a new Bank-Direct product to enable the future of embedded banking partnerships. The product aims to enhance support for banks and credit unions and empowers them to directly sell, manage and service fintech and other corporate customers.
Real-time payments platform Volt obtained an Electronic Money Institution (EMI) licence from the Financial Conduct Authority in the UK. Under the new licence, virtual accounts will be issued to merchants, facilitating account-to-account payments from their customers. These virtual accounts offer real-time payment confirmation, granting merchants enhanced visibility and control throughout the payment process.
The Open finance arena hit the nitro with partnerships focused on speeding up onboarding and funding for businesses. What's the deal? Let’s dive in!
Trustly partnered with Socure, a provider of artificial intelligence for digital identity verification, sanction screening, and fraud prevention. The alliance aims to deliver streamlined onboarding and Pay by Bank services for merchants and fintechs via a new solution.
Open banking infrastructure platform Yapily partnered with Uncapped, where Uncapped will leverage Yapily’s open banking technology to accelerate secure financial support for businesses in the UK, EU, and the US and gain a clearer understanding of client finances - thereby providing funding more quickly and safely.
The Digital Finance scene just got a double shot of innovation last week with new investment and payment moves, making the future of finance faster, smoother, and all in one place.
Cross River Bank's parent company, CRB Group, launched an investment banking division to advise fintechs on crucial decisions, including mergers, acquisitions, and corporate finance matters.
E-commerce major Flipkart hopped onto the Unified Payments Interface (UPI) bandwagon and launched its payments offering ‘Flipkart UPI’ in partnership with private sector lender Axis Bank. The service will allow its users to make UPI payments without switching to other applications.
Fintech infrastructure just went global and armed tech players – one payment expansion and embedded finance tool at a time!
San Fransico-based payments technology provider Finix expanded its payment offering to Canada through a partnership with Peoples Trust Company. With the new launch, Canadian businesses can enhance their payment stack both in Canada and the US.
Tech talent ecosystem support startup Propel launched its Embedded Finance infrastructure, offering a dedicated initiative to empower millions of tech professionals across Africa and tackle the last-mile challenges faced by tech talent communities. The inaugural service is a BNPL feature designed to provide accessible financing options for essential work tools and resources, further enhancing the support for tech talent in the region.
In the DeFi universe, players went on an acquisition spree and got security-conscious last week.
Tools for Humanity, the main developer of Worldcoin, acquired Solana-based digital wallet startup Ottr Finance. This move is seen as a strategic step to strengthen Worldcoin's user onboarding process, particularly for individuals new to the web3 space.
Crypto wallet app MetaMask integrated Blockaid security alerts by default across multiple chains. The firm aims to ensure that users of the self-custodial wallet automatically receive alerts about potentially malicious transactions.
The Green Finance terrain last week sprouted transparency and funding, making the future of finance a whole lot greener.
Deutsche Bank released its Sustainable Finance Framework, outlining the methodologies and procedures, including the environmental and social criteria and categories, used by the bank to classify transactions and financial products as “sustainable.”
The Government of Canada launched its second green bond, aimed at unlocking financing to accelerate green infrastructure and nature conservation projects and supporting the achievement of the country’s climate goals.
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! –
Embedded finance report: The opportunity for software platforms and marketplaces Report - Airwallex
Sourcing new data for richer credit-risk decisions Report - Visa
Building Momentum: The Path To Open Finance through Open Banking Blog - Trustly
2023 Roundup: SoftPOS Takes the Stage for a Swipe-Free Serenade Blog - WhiteSight
2023 Roundup: Open banking flips the traditional lending game Blog - WhiteSight
Toast Teardown: Vertical SaaS meets Embedded Finance Report - WhiteSight
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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