Future of Fintech | Edition #95 – Nov 2023
Fintech Pulse: Weekly Digest (Nov 6th-20th)
Ahoy, Fintech Navigators!
As we brace ourselves for the next fintech escapade, let's rewind and relish the fantastic financial chronicles of the past two weeks. This edition brings you a double scoop of fintech madness, as Whitesight took a pause last week amid the vibrant celebrations of the Indian festive season! So, grab your espresso, power up your digital comrades, and buckle up for another exhilarating journey into the heart of the financial cosmos. Here, where financial tech meets innovation and the radiant dawn of a fintech renaissance calls us forward. ☕✨
Before we dive into the exciting realm of fintech innovations, let's take a look at how the Canadian financial landscape caused a stir in the fintech domain last week >>
In the pulsating heart of Canada's innovation landscape, a financial revolution unfurled last week. The Council of Canadian Innovators (CCI) in coordination with dozens of signatories—including leaders of fintechs Borrowell, Koho and Neo Financial—kicked off a rallying cry to the Finance Minister.
What's the buzz about? The elusive dream of Open Banking.
Tech virtuosos have inked a letter, not just seeking words but a roadmap for the long-overdue Open Banking framework. Three years of contemplation since the UK set the stage, and the Canadian government, though tiptoeing closer, finds itself caught between promises and procrastination. This group of innovators, inspired by the progress in the US, EU, and UK, are now passionately urging for the unlocking of open banking's potential in Canada. The scene is ready, the innovators have declared their stance – Canada, it's time to embrace the future of finance!
Curious to know more about the Great White North's financial canvas? Our blog, "The big picture of embedded finance and how it’s taking shape in Canada," breaks down the big picture of embedded finance on a global scale, before narrowing the gaze towards Canada's unique factors and the exciting developments in store for the region in the space.
Discover the ins and outs of Canada's embedded finance scene now!
Get ready for a turbo-charged ride into the heart of Fintech - Edition #95. Fasten your seatbelts, the adventure is about to unfold!
Here's the TL;DR
Bringing fintech innovation to diverse users, NatWest collaborated with Airbnb and the Energy Saving Trust to enhance the energy efficiency of UK hosts' homes. In another exciting partnership, Enfuce and Funding Circle joined forces to introduce a business credit card tailored for small businesses.
Fintech disruptors globally stole the spotlight – Australia’s AMP Bank and Romania’s Salt Bank embraced Starling Bank's BaaS technology platform Engine to shape their banking strategies. Concurrently, the collaboration between London's TerraPay and the Philippine-based fintech firm Maya emerged, aiming to enhance international remittance services for increased accessibility and security.
Tech titans seized the spotlight, uniting to pioneer and push the boundaries of innovation – Alipay+ partnered with Yapily to explore open banking in mobile payments, while Banking Circle collaborated with Ant Group on a liquidity management project, diving into tech innovations for tokenised deposits.
Driven by a commitment to personalisation and technological ingenuity, Afterpay collaborated with Rokt to elevate the e-commerce journey with tailor-made experiences. Additionally, Grasshopper Bank joined forces with Capchase to extend revenue-based financing specifically tailored for enterprise SaaS startups.
On a mission to turbocharge open banking, Jordan Ahli Bank teamed up with Fintech Galaxy's FINX platform to secure compliance with international and local standards. Meanwhile, 10x Banking collaborated with Ozone API to streamline the implementation of Open Banking APIs for banks.
For the longer read, let's get going –
Explore Open Finance's dynamic landscape, where visionary collaborations, integrations, and acquisitions are shaping the future of finance through the strategic harnessing of technological strengths.
Casino brand Frank & Fred integrated Zimpler’s player registration and payment solution Zimpler Go into its platform. The collaboration with Zimpler will enable Frank & Fred to pioneer the Brazilian market with its Zimpler Go offering, allowing swift account creation using CPF (Individual Taxpayer Registration) with a streamlined KYC (Know Your Customer) process, Pix payments and instant payouts.
Crastorehill completed the acquisition of two key players in the open banking sector: Qwist and ndgit. The move is consistent with Crastorehill's buy-and-build strategy, establishing the company as the sole proprietor, holding a 100% stake in both Qwist and ndgit. By leveraging these synergies, Crastorehill aims to emerge as a frontrunner in shaping the future landscape of open banking.
Iceland-based Landsbankinn joined forces with digital banking solutions provider Meniga to bring Payment Initiation Services (PIS) and Aggregation Services (AIS) to its customers in the region.
Step into the dynamic landscape of Digital Finance, where major collaborations and a notable shutdown made for quite an intriguing set of headlines.
Novo, the financial solutions platform for small businesses, integrated with Amazon to allow Novo customers to effortlessly monitor sales and revenue metrics directly through their Novo accounts.
HMBradley, a neobank targeting savers, closed its consumer operations and initiated a 30-day wind-down of its deposit and credit card programs, pivoting its focus to selling its technology to traditional banks after falling short of growth targets.
In the vibrant world of Embedded Finance, significant moves from major fintech players took the spotlight last week:
BaaS provider Mbanq partnered with embedded finance provider Qorbis to introduce a fintech solution designed exclusively for premium sports, entertainment, and event brands. This partnership unveils white-label cards, corporate travel and expense controls, and brand enhancement solutions designed to save such businesses time and money as well as create new revenue opportunities.
Berlin-based fintech Solaris prevailed against an order from the financial regulator BaFin, as reported by US media Bloomberg and confirmed by the bank. BaFin demanded a significant reduction in the startup's customer deposits due to concerns about inadequate control systems and capital resources.
In the realm of Fintech Infrastructure, global players united to leverage innovation, simplifying the consumer financial process through collaborative efforts.
US-based payments platform Modern Treasury launched instant microdeposits leveraging the Federal Reserve's FedNow and Real-Time Payments. With the integration of FedNow and RTP, the formerly time-consuming verification process becomes instantaneous, offering around-the-clock validation of bank account information.
Singapore-based credit scoring and risk models assessment solution Bizbaz entered into a strategic partnership with the Philippines-based retail bank Rizal Commercial Banking Corporation (RCBC Bank) to integrate AI-driven credit scoring to expand lending and increase financial inclusion.
Dive into the exciting world of Green Finance, where major players have taken the lead, steering the financial ecosystem towards a sustainable future.
Switzerland-based Temenos partnered with Gprnt – the Monetary Authority of Singapore’s (MAS) new integrated digital platform. Through this collaboration, Temenos and MAS aim to cooperate on technology solutions, explore data integration, and encourage product development to advance sustainable finance.
Swedish fintech Doconomy and Mastercard collaborated to offer members of Caja Ingenieros a tool for measuring their carbon and water footprint, promoting environmentally conscious purchasing decisions. Users can tailor their carbon footprint using demographic and lifestyle information, including categories like diet and electricity.
In the Defi arena, the past week witnessed players hitting their marks and conquering goals, making waves in the DeFi community.
Nubank's cryptocurrency Nucoin reached 13 million registered users in eight months, according to a newly launched block explorer tool that provides real-time information on several wallets and transactions, price and liquidity. The tool indicates that there are 3.75 billion total Nucoins in circulation equating to a total market cap of roughly $71M.
Frankfurt-based Commerzbank AG received approval from German regulators to run a crypto custody business. According to a statement, the bank will focus on crypto assets as the demand for the safekeeping of tokenised assets grows.
Some other happenings in the fintech universe 🪐
Craving for some more quick fintech nibbles to savour alongside your tea? Get ready to dig into a delectable spread of tantalising headlines!
Banking tech company Knight Fintech made it to the headlines after talks to raise $25M led by Accel. It is anticipated that 3one4 Capital and Prime Venture Partners, two previous supporters, will take part in the next fundraising round.
Digital banking solutions provider Apiture closed a $10M fundraising round. The firm plans to channel this fresh capital into accelerating its product development initiatives.
Brazilian DeFi Credix raised a $60M credit facility to expand access to credit in Latin America.
London-based financial technology firm Fnality International raised $95M in a series B funding round led by Goldman Sachs and BNP Paribas. The primary goal of this funding is to facilitate the development of a global liquidity management ecosystem.
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.
Our latest publications include –
2023 Roundup: The Twists and Turns of Embedded Insurance in Travel
2023 Roundup: Embedded Insurance as the Gig Economy’s Safety Harness
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.
Fintech research is in the WhiteSight DNA, so if you'd like to get in touch for features, sponsorships, and content marketing services, reach out to us at hello@whitesight.net.
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