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Future of Fintech - Edition #136 (24th-30th Sept)

Oct 01, 2024

Collaborations are shattering silos, flexible finance is making money more accessible, AI is pushing the boundaries of what's possible, and global expansion is taking fintech to new heights. Get ready for a fin'tastic dose of fintech news!

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What’s on the fintech menu today?

📖 Today’s Must Read: Licenses Locked and Loaded!
🌟 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 📰

Licenses Locked and Loaded! 🔓

The latest series of licence approvals for fintechs worldwide is a glimpse into the future of financial services. Companies like Wise, Crypto.com, and Tamara are securing crucial licences across Brazil, Bahrain, Saudi Arabia, and beyond, signalling massive shifts in the fintech ecosystem.

These wins reveal three key trends:

Governments are actively integrating fintechs into their economies, enabling them to provide direct financial services and innovate within national payment systems.
The rise of digital-first financial services like BNPL and e-wallets is rapidly diversifying consumer offerings, creating new opportunities for businesses to tap into underserved markets.
Cross-border payments are gaining momentum, as fintechs secure the necessary regulatory framework to facilitate seamless international transactions, vital for companies looking to expand globally.

These licence wins reflect a broader trend: as fintech companies gain regulatory trust, the boundaries of financial innovation expand. Keeping pace with such developments is key to staying competitive and capitalising on the next wave of global opportunities.

Curious to explore these trends further? Head over to our website to discover what they mean for the next wave of fintech innovation!

The Week's Hot 10!♨️🔟

BNPL Boost Around the World -

⤷ ZOOD and Mastercard launched ZOOD Card - a virtual Buy Now Pay Later card in Uzbekistan - allowing instalment payments for in-store and online purchases.
⤷ Klarna expanded its partnership with Adyen to offer BNPL options at in-store payment terminals across Europe, North America, and Australia.
⤷ Sunbit teamed up with Stripe to bring its BNPL technology to a wider range of in-person service businesses, including healthcare, home services, automotive, and more.

Creating Credit Confidence -

⤷ Scotiabank expanded its partnership with Nova Credit to offer cross-border credit checks for newcomers via its web and mobile apps in Canada.
⤷ Multitude Bank, a subsidiary of the Multitude Group, entered into a strategic agreement with Salt Edge to deliver instant loan repayments.

Pushing the Limits -

⤷ Hilton launched two new hotel debit cards with Currensea in the UK, enabling cardholders to earn points on everyday spending for hotel stays and exclusive experiences. The cards use open banking technology, allowing travellers the convenience of spending directly from their current account in the UK or when abroad.
⤷ Visa acquired AI fraud detection firm Featurespace to enhance real-time fraud management and strengthen its payments ecosystem.
⤷ French fintech Qonto launched in Austria, Belgium, the Netherlands, and Portugal to solidify its status as the top European business finance solution for SMEs and freelancers.

DeFi Developments -

⤷ Siemens AG utilised JPMorgan's Onyx and SWIAT's blockchain to issue a tokenised version of its commercial paper, starting their collaboration on blockchain asset issuance for commercial banks.
⤷ Swiss crypto platform Taurus SA and Aktionariat AG partnered to promote tokenised shares for Swiss SMEs, enhancing liquidity and market access through the Taurus Digital Exchange (TDX).

Now, for the ‘byte’-sized fintech buzz –

The Embedded Finance landscape is buzzing with new products that empower businesses and boost financial flexibility:

Liberis launched its latest product, Flexible Cash Advance, with eBay Seller Capital in the US. This product enables sellers to receive larger and even more flexible financing, empowering them to get financing when they need it.
Xero and Klarna partnered to allow small businesses to offer BNPL options at checkout, giving consumers more flexible payment choices. Under the partnership, Xero's small business clients will have access to BNPL capabilities that may help boost revenue and enable more large-ticket sales.

The Open Finance world is witnessing a shift towards leveraging data and artificial intelligence to enhance credit assessments and risk management.

Experian teamed up with fintech company Subaio to gain deeper insights into a potential borrower’s creditworthiness. By utilising Subaio’s data-driven engine to analyse recurring payments, Experian will be able to provide an even stronger and more accurate foundation for credit assessments in Denmark, Norway, Sweden, and Finland.
UK-based credit-building mobile phone network Boshhh, in partnership with Yapily, unveiled a tool that uses AI to provide more efficient affordability and risk assessment reporting in the financial services and legal sectors.

The Digital Finance landscape saw a convergence of traditional and digital approaches as companies sought to expand their reach to new markets and customer segments.

UK wealth manager Quilter acquired NuWealth, a digital investment platform. Upon completion of the deal, it plans to “evolve NuWealth to work with advisers to help them support clients at the start of their investing journey”.
Global financial services provider Ebury partnered with kompasbank. The partnership facilitates international trade between Danish SMEs and their foreign customers and suppliers.

The Fintech Infrastructure space embraced developing innovative solutions to enhance the customer experience and expand their service offerings.

OneAZ Credit Union formed a strategic partnership with Backbase to enhance its digital services. The credit union plans to utilise Backbase’s Engagement Banking platform to expand “beyond financial service offerings”, incorporating real estate, insurance, and other lifestyle services to create a “one-stop shop” experience for its members.
Galileo launched Secured Credit with Dynamic Funding empowering banks and fintechs to simplify credit-building for consumers and clients. The partnership is expected to simplify the secured credit process, making it easier for users to manage their debit and credit accounts.

The DeFi space saw companies expanding into new markets while tackling rising concerns about online security and identity verification.

Worldcoin expanded its orb verifications to Guatemala, Poland, and Malaysia - amidst a wave of concerns regarding the dangers of artificial intelligence and the difficulty of identifying bots and humans online.
Kraken acquired Coin Meester B.V. (BCM), an established Dutch crypto broker. With this latest acquisition, the company can now provide VASP services either directly or through partnerships in eight European countries.

The Green Finance landscape witnessed investors and businesses being equipped with the tools they need to make eco-friendly choices and build a more sustainable world.

FTSE Russell launched two new fixed-income indices—the FTSE Fixed Income TPI Climate Transition and TPI Focused Glidepath Index Series—to help investors meet their climate commitments amid rising demand for climate-focused investment strategies.
Cogo partnered with BDO in New Zealand to simplify carbon accounting for businesses to offer access to Cogo’s Carbon Manager for business clients. Carbon Manager is available to BDO Northland, BDO Gisborne, and BDO Wellington business customers.

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! –

Operational Considerations for Receiving Instant Payments Report - US Faster Payments Council
Banking for small and medium enterprises Report - IBM
Coming home to the cloud - How digital transformation is shaping the future of mortgages Blog - Mambu
The case for pay by bank in recurring billing Blog - Plaid
How Affirm is Scaling Distribution with Embedded BNPL Blog - WhiteSight
The State of Open Finance (H1 2024) 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.

And lastly, to stay updated on everything fintech and web3, follow us on LinkedIn and Twitter, and don't be shy to show some ❤️

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