Future of Fintech | Edition #66 – April 2023
Summary of fintech news from 18th to 24th April
It's time for a tantalising Tuesday Tea treat! 👋
Get ready to revel in the juiciest fintech scoop of the week! Our freshest Future of Fintech newsletter is a concoction of brilliance, brewed to perfection, that combines six irresistible domains into a mouthwatering medley of fintech marvels. From cutting-edge collaborations to innovative investment insights, our newsletter is a smorgasbord of sensational surprises! So, pour yourself a cuppa and get ready to sip on the succulent flavours of our Fintech Fusion!💡
Our freshest fintech fiesta was a frenzy of buzz in the vibrant regions of Asia and Europe, but hold onto your hats, it doesn't stop there! We've also got the lowdown from the far-reaching tech terrains of the USA because fintech knows no bounds - it's a global groove! The embedded finance sector was infused with juggernauts making a splash with their bold manoeuvres. Grab a cuppa and get set to be wowed by the week's fintech fireworks!
The rise of digital banks has been a major trend in the financial services game lately. They've won over digital-savvy consumers with their slick apps and seamless experiences, no doubt. But here's the real deal peeps, profitability can be a tricky feat for most of them to tame. And, only a handful of digital banks have cracked the code and tasted the sweet success of profitability. So, join us on a mind-bending journey as we delve into the depths of Cracking The Profitability Code of Successful Digital Banks, where we explore the factors that make these banks cash flow kings, from killer business models to innovative revenue streams. Buckle up and get ready to unravel the mysteries behind the profitability of these fintech dynamos. 🚀
Get your taste buds ready for here we are with #Edition 66 – a gourmet feast of innovation and fintech that's gonna leave you craving for more!
Here's the TL;DR
Driving the fintech trail - Brankas and MPT Mobility partnered to enable instant toll reloading in the Philippines via bank accounts, while Grab-backed Super Bank Indonesia extended credit to PT Teknologi Pengangkutan Indonesia for purchasing additional cars.
Skillfully steering the path towards saving and lending, Monzo launched Business Instant Access Savings, enabling businesses to grow savings with easy access to their funds. On the other hand, Thought Machine integrated with MQube to streamline mortgage lending.
With a keen eye on all things Euro, Revolut connected to SEPA Financial Network to clear its own euro transfers through the STEP2 and RT1 schemes. At the same time, SG-Forge, the digital asset division of Societe Generale, launched EUR stablecoin on the Ethereum public blockchain.
Eyeing and experiencing newness, B2B BNPL fintech Hokodo secured a Series B extension with Citi investment as it eyes new markets. While Coinbase Bermuda obtained a Class F Licence under the Digital Asset Business Act from the Bermuda Monetary Authority.
Fintech trailblazers tirelessly look out for innovation as Finastra and Plaid partnered to offer financial institutions access to account verification tools. And, Intellect Global Consumer Banking launched an open finance-based core banking platform, eMACH.ai, on the Amazon Web Services (AWS) cloud.
For the longer read, let's get going –
The Open Finance arena was abuzz with industry insiders hailing the potential of this groundbreaking concept.
In a recent summit, Michael Hsu, the head of the Office of the Comptroller of the Currency, warned that the evolution of open banking in the US might affect how regulators oversee banks and the associated risks related to liquidity, operations, third-party management and compliance. “An open banking culture that ... puts trust above other objectives, including growth and profit, will succeed and thrive over time,” he said.
Similarly, economic secretary to the Treasury, Andrew Griffith MP, spoke in a keynote speech outlining the government’s ambitions for the fintech industry during day one of the Innovate Finance Global Summit 2023. He emphasised creating a sustainable regulatory framework for open banking, aided by the upcoming Data Protection and Digital Identity Bill.
Finance maestros were on fire as they fueled the Digital Finance frontier with their innovative moves, exploring new horizons and making steady progress in the fintech frenzy.
Bank Zero teamed with iKhokha to provide business customers with a card machine solution with zero monthly rental fees that integrates with the bank’s zero-fee accounts.
Philippines Statistics Authority (PSA) stated continued progress in issuing the two digital versions of the Philippines ID card (PhilID) as the push to enhance user experience in accessing public services advances.
The Embedded Finance realm was a hive of strategic manoeuvres orchestrated by forward-thinking industry players, all with the goal of exploring diverse domains and revolutionising the way businesses serve their customers.
Splitit joined Rapyd partner programme to bring its Installments-as-a-Service platform to Rapyd’s extensive network of merchants and marketplaces.
Modern Treasury unveiled Reconciliation Engine, which automates and simplifies end-to-end cash reconciliation for businesses.
The Fintech Infrastructure domain was a hotbed of collaboration, with a plethora of innovative firms coming together to unlock new possibilities.
DirectID and Faciit partnered to leverage DirectID's open banking insights and help people with new-to-country status access affordable credit.
NayaOne made the news bulletin for being awarded the Digital Sandbox tender by the Financial Conduct Authority (FCA). The Digital Sandbox is an initiative that enables innovative companies to develop and test their products in a safe and secure environment, with support from the FCA.
In the thriving fields of Green Finance, the mighty tech giants took centre stage with their glowing initiatives, leading the charge in greening new realms.
Citi, in collaboration with Vodafone Group Plc, announced the addition of environmental criteria to Vodafone’s Supply Chain Finance Programme. As a result, Vodafone suppliers will receive better rates based on improvements to environmental sustainability.
The Monetary Authority of Singapore (MAS) launched the Finance for Net Zero (FiNZ) Action Plan to mobilise financing for net zero transition in Asia and decarbonisation in Singapore.
The DeFi floor was a wild ride of innovation, with players busting out new inventions, snagging licences, and more!
GBM Auction partnered with Polygon Labs to bring Bid-to-Earn auctions to Polygon Native NFT Projects. Polygon will take advantage of GBM’s smart contracts specifically designed for the network instead of building an auction mechanism from scratch.
The Bank of Israel announced its plans to launch the CBDC digital shekel, giving probable arguments for issuing digital currency in the future.
Kraken received a licence to serve as a Virtual Asset Service Provider from the Central Bank of Ireland. The regulation requires authorities to review firms to ensure they have appropriate procedures around anti-money laundering and countering the financing of terrorism.
Some other happenings in the fintech universe 🪐
Treat yourself to some more delectable bite-sized headlines:
Gemini launched Gemini Foundation, a non-US crypto derivatives platform for eligible customers to leverage crypto assets for risk management, returns, and directional exposure.
Mobility company Motor Africa partnered with fintech startup OnePipe to facilitate automatic payout settlements for vehicle owners and lending partners.
And that's a wrap 👋
We hope you enjoyed this edition of the Weekly Fintech Brew!
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