Future of Fintech | Edition #87 – Sept 2023
Summary of fintech news from 12th to 18th Sept
Hello, fintech aficionados!
It's that electrifying moment of the week when we dish out the most sizzling slices of fintech brilliance, straight from the innovation oven! This week, the fintech frenzy ignited both sides of the Atlantic, with the US and UK at the forefront. So, grab your favourite brew, and let's dive headfirst into a world of innovation and all things fintech! ☕
Before we immerse ourselves in the fintech headlines, let's examine how Revolut's actions are holding the rapt attention of industry watchers >>
The Prolonged Pursuit: Revolut's Quest for a US Banking License
Fintech giant Revolut announced a draft application for a US banking license over 2 years ago but is yet to formally file the application, raising questions and curiosity among industry observers. Unlike some fintech counterparts that have engaged with the Office of the Comptroller of the Currency (OCC) for the pursuit of a US banking license, Revolut's formal application has not materialized through this regulatory channel, according to Tech.eu. Revolut currently operates in the US through a partnership with Metropolitan Commercial Bank but seems determined to gain more autonomy for its US operations. The neobank is also on edge awaiting a verdict on a UK banking license, a decision that could shape its global expansion plans. As Revolut's journey unfolds, industry watchers are keen to see what comes next in this captivating financial saga.
Revolut's licensing voyage is far from the ordinary! Here at WhiteSight, we've delved deep into Revolut's remarkable evolution, its quest for a UK banking license, the hurdles faced, and the innovative strategies deployed to surmount them.
Dive into Revolut’s UK Banking Quest now – it's a gripping journey you won't want to miss!
Prepare to indulge in the scorching blend of Future of Fintech - Edition #87, packed with the hottest breakthroughs!
Here's the TL;DR
Visa made waves last week by partnering with Hyperface to boost Credit Card-As-A-Service solutions in India, while also launching cross-border solutions with Currencycloud to facilitate global business growth.
Visa’s mark in the payment arena doesn’t just stop there: Visa also invested in Form3 to combat A2A payment fraud. Meanwhile, GEP joined forces with Mastercard to streamline corporate B2B payments.
Fintech showcases global strength: Nubank expanded secured credit and introduced FGTS-backed loans in Brazil, while Netbank partnered with Akulaku to offer loans to underserved Filipinos.
The fintechaverse continues to evolve with standout features: Payit by NatWest introduced a single-use payment link feature for businesses, while Monzo unveiled an "Investment" feature, allowing users to invest in funds handpicked by BlackRock.
In the DeFi land, PayPal introduced On and Off Ramps for web3 Payments. Deutsche Bank, on the other hand, partnered with Taurus for digital asset custody and tokenization services.
For the longer read, let's get going –
Get ready for a voyage through the dynamic universe of Open Finance, where innovative minds converge to chart unexplored financial territories!
Coinbase announced the expansion of its Easy Bank Transfers (powered by Truelayer) to the Netherlands, making open banking payments available to Dutch customers. This will create a more reliable, error-resistant process, enhancing the ease of deposits for Coinbase customers.
LuLu Money Singapore and digital transformation provider Endava collaborated to launch a cross-border payments platform - Digit9 in UAE. The newly launched Digit9 platform will enable BFSIs, fintechs, and FIs to seamlessly execute multi-currency cross-border transactions in real-time
Prepare for an electrifying journey in the Digital Finance realm, where digital pioneers are blazing a trail to cater to the ever-evolving demands of users!
US-based Varo Bank extended its partnership with Temenos Banking Cloud to address business needs and regulatory demands. Through their collaboration, Temenos will enable Varo Bank to scale based on customer demands, deploy new products effectively, and reduce operational costs.
Bahrain-based ila Bank launched a customizable credit card rewards programme - ila Rewards, supported by Mastercard’s Pay with Rewards platform. The customizable rewards programme will enable customers to redeem rewards in a seamless and instant way through the ila Bank application.
Last week in Embedded Finance, events in the US stole the spotlight as players across industries amped up their embedding efforts to meet diverse user needs.
Splitit, the BNPL solution provider, extended its partnership with AliExpress to provide US customers with the "pay after delivery" option. With Splitit's "pay after delivery" service, shoppers can initiate payments for their purchases once the delivery is completed.
US-based enterprise-grade payment processing and ledger infrastructure provider Episode Six launched the Business Now, Pay Later solution. The solution seeks to enable commercial banks to secure new revenue streams by fulfilling the working capital needs of small and medium-sized enterprises (SMEs) via customized instalment offerings within their business banking channel.
In the ever-evolving landscape of Fintech Infrastructure, titans of the industry united with unyielding determination, aiming to strengthen and secure the financial world.
US-based Marygold & Co. partnered with fraud prevention and compliance software company Sardine and its partner Incode. The partnership aims to enhance Marygold & Co's KYC onboarding process by utilizing proprietary device intelligence signals and behavior biometrics, along with risk scores from reputable providers to bolster security.
Finastra teamed up with financial crime specialists Fincom and ThetaRay to offer a Compliance-as-a-Service package for instant payments. Available via Mircosoft Azure, the new Compliance-as-a-Service package combines real-time sanctions screening and AI-powered anti-money laundering transaction monitoring.
Venture into the vibrant domain of Green Finance, where industry heavyweights unveiled groundbreaking developments, spearheading the charge toward a greener and more sustainable future.
Investment data and research provider MSCI launched the New Sustainability Institute, an initiative designed to drive progress by capital markets to create sustainable value. The MSCI Sustainability Institute aims to bring together a wide range of thinkers with complementary strengths and expertise and help them turn data-driven ideas into real-world influence and action.
BlackRock and SGX Group introduced the iShares MSCI Asia ex-Japan Climate Action ETF to help investors include low-carbon goals in their portfolios. The new fund, managed by BlackRock and anchored by asset owner Prudential, launched with assets under management (AUM) of $426M.
Last week, the DeFi scene sizzled as players joined forces to amplify their "DeFi" prowess and embrace the essence of decentralized finance.
Revolut added SegWit addresses and on-chain withdrawals for Bitcoin transactions, enabling users to handle their Bitcoin funds entirely within the app. With this, Revolut will soon have the option to withdraw and receive funds directly from their accounts using SegWit addresses and other on-chain features.
Bitwave, an enterprise accounting platform for digital assets, and Deloitte formed a strategic alliance for Digital Asset Accounting and Compliance. This brings together Bitwave’s software platform with Deloitte’s accounting, tax and governance, risk and controls advisory services, to help deliver speed and process efficiencies, cost savings and compliance enhancements to businesses that utilize digital assets.
Some other happenings in the fintech universe 🪐
Craving for some more quick fintech nibbles to savor alongside your tea? Get ready to dig into a delectable spread of tantalizing headlines!
London-based fintech Hyperjar raised $24M in Series A funding backed by Susquehanna Private Equity Investments and the Healthcare of Ontario Pension Plan.
Carbon accounting startup Optera raised $12M in Series A funding to accelerate its product innovation and grow the sales and marketing teams to reach a global scale.
Spokane-based fintech startup Treasury4 raised $20M in Series A funding to boost its enterprise fintech platform.
Germany-based Circula raised $12.8M in Series A funding and aims to expand to the Netherlands.
And that's a wrap 👋
We hope you enjoyed this edition of the Weekly Fintech Brew!
If you're hungry for more FinTech insights, check out some of our other work at WhiteSight.
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