SMEs take centre stage; lending gets easier; the Aussie fintech scene shines bright; and there's a push for banking the unbanked. Grab your cuppas because fintech is brewed hot off the press here, just for you! ♨️
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What’s on the fintech menu today?
📖 Today’s Must Read: Plaid Layer: Unlocking Frictionless Fintech Onboarding
🌟 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 📰
Plaid Layer: Unlocking Frictionless Fintech Onboarding
Plaid's recent launch of Layer is a game-changer, streamlining user onboarding and slashing sign-up times by 90% with a single phone number verification. Companies like Possible Finance and Empower are already reaping the benefits, reporting better user experiences and notable conversion improvements.
Here's how Layer is a potential game-changer for user acquisition and security in the fintech space:
A Seamless Onboarding Experience: At the heart of Plaid Layer is an incredibly simple yet powerful concept: onboarding with just a phone number. This intuitive process taps into Plaid’s extensive network, leveraging pre-saved information to verify identities and link bank accounts instantly. Users benefit from a seamless experience, and businesses enjoy significantly improved conversion rates as barriers to entry are virtually eliminated.
Transforming Business Metrics: Plaid Layer isn’t just a technical upgrade; it’s a strategic asset. For businesses, the platform offers unparalleled customization, allowing companies to define what information is required, optional, or unnecessary. This flexibility ensures that onboarding processes align perfectly with business needs, enhancing user satisfaction and operational efficiency.
Fortified Security: In an era where security breaches are a constant threat, Plaid Layer stands out with its robust security features. Real-time risk analysis, device identification, and mobile carrier checks are seamlessly integrated to combat SIM swap and port-out attacks.
Plaid Layer’s introduction marks a significant trend in the fintech ecosystem towards greater efficiency and user-centric design. This innovation is poised to accelerate adoption rates, drive competitive differentiation, and spur further advancements in financial technology. For businesses, such granular control translates to a swifter influx of engaged users, ready to explore their financial offerings and foster trust and loyalty from the get-go.
Moreover, Layer capitalises on the power of open banking by utilising pre-verified user data. This is where Plaid joins the open banking data revolution we explored in our blog, "Open Banking Beyond Open Pipes", - where we highlighted the many different players who have been joining forces through open banking to enhance security in verification, fraud prevention, and risk management.
Effortless onboarding, enhanced security, and a deeper understanding of users – this is the foundation for a future brimming with innovative financial products and services.
We're always on the hunt for trailblazing stories in the future of fintech.
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Edition #124 unpacks the nuts and bolts of the fintech revolution >>>
The Week's Hot 10! ♨️🔟
Payment revolution on the run:
⤷ Tink and Adyen launched "Pay by Bank" in France, allowing Adyen merchants to offer consumers a payment method that initiates payments directly from their bank accounts using open banking.
⤷The Reserve Bank of Australia commenced a review of the country’s retail payments regulation with a focus on encouraging the payments industry to address efficiency, competition and safety issues.
Global expansion of financial innovation:
⤷ Ageras agreed with Societe Generale to acquire Shine, a French SME fintech. With the acquisition of Shine, Ageras aims to expand its foothold in France and strengthen its position as the provider of banking and accounting software for SMEs.
⤷ LATAM fintech Prometeo expands its footprint to the US market with the launch of its Bank Account Validation (BAV) offering. With this launch, the company enables Latin American businesses to connect with 100% of US banks via one integration with a single provider and API.
Boosting the fintech startup ecosystem:
⤷ Brex partnered with Stripe Atlas to provide faster banking access for startups. Those incorporated through Stripe Atlas can quickly apply for Brex business accounts, streamlining financial management and business launches.
⤷ Mastercard selected 9 fintechs for its four-month ‘Start Path Open Banking and Embedded Finance’ program, offering curated programming and dedicated sponsors for guidance and expertise.
Making lending easy:
⤷ Spain-based microlender Dineo Credito partnered with Mambu to advance ethical digital lending, migrating from its in-house system to Mambu to offer advanced lending products in Spain.
⤷ Ant International unveiled bettr, a global digital lending service to provide micro-lending to micro, small and medium enterprises (MSMEs) in strategic markets through embedded finance partnerships.
Banking giants ride the DeFi wave:
⤷ Citibank launched CIDAP, a comprehensive digital asset platform. Supported by an internal blockchain network, CIDAP is designed to integrate with external DLT and other solutions.
⤷ Standard Chartered plans to launch a spot crypto trading desk focused on Bitcoin and Ether, according to Bloomberg. The desk will operate within the FX trading unit.
Now, for the ‘byte’-sized fintech buzz –
Embedded Finance takes flight to land headlines on moves across cross-border payments and lending, transforming industries globally.
Real-time, cross-border payments fintech Nium partnered with Air France and KLM to power “closed loop” electronic payments between the airlines and selected travel agents. Air France and KLM will utilise Nium Airline Payments (NAP), an alternative to travel agent card transactions, leveraging a private network of trusted Universal Air Travel Plan (UATP) authorisation rails and bank transfers.
Brankas and Global Finteq partnered to launch a Lending-as-a-Service (LaaS) platform in the Philippines. The new platform leverages Brankas’ multi-bank APIs and Global Finteq’s 30-year expertise in developing loan management solutions.
Open Finance opens doors to credit for the unbanked and newcomers, levelling the financial playing field.
Mexico-based Citibanamex collaborated with Belvo to advance financial inclusion in Mexico by enabling individuals outside the banking sector to access credit. With Belvo’s help, Citibanamex will be able to make offers of credit and credit cards to users without a credit history.
Royal Bank of Canada (RBC), in collaboration with cross-border credit bureau Nova Credit, launched ‘Global Credit Connect’ - designed to help newcomers to Canada make use of their international credit history.
The Digital Finance realm last week was a rollercoaster ride of challenges and breakthroughs:
The Swiss Financial Market Supervisory Authority (FINMA) initiated bankruptcy proceedings against investment banking challenger FlowBank due to serious and repeated violations of its capital requirements.
Salesforce India launched its public sector division and unveiled its digital lending offering tailored to Indian needs. Its Digital Lending for India platform aims to reduce costs and alleviate the burden of maintaining outdated banking systems for banks and lenders in the country.
Fintech Infrastructure fuels traditional banking shifts and empowers communities with innovative credit solutions.
British supermarket group Sainsbury’s sold its personal loan, credit card and retail deposit portfolios of its core banking business to NatWest Group. The deal will see £2.5B of gross customer assets transferred to the high street lender, including £1.4B in unsecured personal loans and £1.1B in credit card balances, alongside around £2.6B in customer deposits.
Fintech startup ZORRZ selected Clowd9 to process payments for a new AI-powered BlueAccess credit card. The card is specifically tailored to immigrants, students, those with learning or physical disabilities and individuals with past credit issues.
From global expansion to regulatory green lights, decentralised finance is on the rise:
Decentralised digital currency Worldcoin announced plans to expand its presence by launching World ID orb verifications in Ecuador and resuming operations in Kenya.
Laser Digital received Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). The approval marks the completion of Laser Digital's licensing process with ADGM.
Green Finance was all about sustainability that is transforming the financial world, from government policies to personal spending.
Australia's Treasury Department released its Sustainable Finance Roadmap, aiming to reform financial markets to mobilise private capital for transitioning to a net-zero economy. Key priorities include mandatory climate reporting, a sustainable finance taxonomy, and a labelling regime for sustainable investments.
ING Netherlands partnered with carbon management experts Cogo to introduce the Footprint Insight feature in its mobile banking app. This innovative tool allows ING’s private customers to view the CO2 emissions associated with their transactions, encouraging more environmentally conscious spending.
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! –
Confidence Amid Chaos - Managing Fraud and Scams with Real-Time Data and Advanced Analytics Report - LexisNexis
Digital dynamics: Corporate banking 2025 Report - ebankIT
Product innovation is the key to growth for banks Blog - Dharmesh Mistry, Fintech Futures
The Digital Transformation of Customer Onboarding in Banking Blog - Brankas
Open Banking in Canada: Better Late Than Never? Blog - WhiteSight
Revolut’s UK Banking Quest 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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