Future of Fintech | Edition #97 – Dec 2023
Fintech Pulse: Weekly Digest (Nov 28th-Dec 4th)
Hola, Fintech Pioneers!
Grab your favourite mug, because our weekly dive into the future of fintech is about to unfold like the perfect pour-over coffee! Last week, the fintech constellations converged at the apex of the European financial galaxy and the shores of Asia. So, rev up your digital allies and brace yourself for an electrifying journey into the dynamic heart of the financial universe. The crossroads of financial expertise and innovation extend an invitation to an unforgettable escapade! ☕
Before we delve into the realm of fintech marvels, let's dissect a blockbuster financial split between two major Wall Street tech giants that caused significant ripples in the fintech universe last week >>>
In a financial shake-up that reverberated through Wall Street, Apple recently declared its independence from the banking heavyweight, Goldman Sachs, in what can only be described as a high-stakes breakup! The tech behemoth aims to dissolve its alliance within the next 12 to 15 months, dismantling the entire consumer partnership, including the recently launched savings account. The reasons behind this abrupt divorce are as intriguing as the partnership itself.
First, whispers of Goldman Sachs' lacklustre customer service spread like wildfire, tarnishing the gleam of its illustrious name. Second, the Wall Street giant found itself haemorrhaging money, with reports suggesting losses exceeding a staggering billion dollars in their partnership with Apple. Lastly, the plot thickens as it's revealed that Goldman Sachs had also been chatting up with American Express to bring an end to its financial rendezvous with Apple.
The streets are buzzing with speculation, and the financial world can't help but wonder: was this a necessary liberation for Apple, or will it send shockwaves through the interconnected web of high finance?
Curious to know more about how Apple is rewriting the financial rulebook? Ever wondered how this tech titan is navigating the financial frontier?
Unlock the secrets with our report, "Apple’s Embedded Finance Playbook"! Explore Apple's journey from procuring licenses to unleashing in-house innovations, and dive deep into the dynamic evolution of its financial prowess!
Buckle up for a journey into the epicentre of fintech with Edition #97.
Here's the TL;DR
Standard Chartered created quite the buzz last week by grabbing two major headlines: It partnered with Visa for BNPL payments in APAC, and its Chinese branch, Standard Chartered Bank (China), revealed intentions to provide digital yuan exchange services to customers.
Prioritising business well-being, Biz2X partnered with Mastercard to enhance capital access for US small businesses. Meanwhile, Open Banking became available in Australia, extending its advantages to the business sector.
With a special spotlight on Europe, Swift introduced 24/7 instant cross-border payments to and from Europe, and Klarna collaborated with Cathay Pacific to enhance travel payments across the continent.
In a strategic move towards innovation, Truelayer seamlessly integrated AIS and VRP products into Lendable's financial ecosystem. At the same time, Nubank introduced limited transfers between personal and business cards.
In a dual push for financial advancements, N26 collaborated with Upvest to integrate stock and ETF investments into its app, while Santander concurrently selected Taurus to implement a self-custody model for managing digital assets.
For the longer read, let's get going –
Dive into the dynamic world of Open Finance, where global fintech leaders are recognising its potential for more secure and efficient experiences.
Open Banking payment technology provider Waave teamed with payments orchestrator, Gr4vy to initiate its Pay by Bank solution across major retail outlets throughout the Australian retail market.
Fintech Galaxy achieved ISO/IEC 27001 and SOC 2 Type 2 compliance for Information and Data Security for safeguarding its clients’ sensitive data. In addition to attaining the ISO/IEC 27001:2022 certification, Fintech Galaxy completed the SOC 2 Type 2 audit, emphasising the company’s commitment to data security and privacy.
Enter the lively realm of Digital Finance, where fintech pioneers balance the scale by exploring new markets on one side of the globe while exiting on the other.
Grab-led GXBank gets launched as a digibank in Malaysia. The bank – which counts Singapore's GXS Bank as a shareholder – commenced beta operations in Malaysia on 1 September, and is now open to the public - offering both a savings account and a debit card.
Two years after arriving in Brazil, neobank N26 announced intentions to pull out of its Latin America endeavour. The fintech plans to scale back the pilot project as it seeks to refocus on its well-established markets.
Take a plunge into the Embedded Finance scene, where industry giants collaborate to weave the embedded finance magic across all realms!
Spanish leader Crisalion Mobility signed an MoU with global advanced air mobility (AAM) insurance specialist Skyrisks to develop eVTOL insurance policies. The two partners will also exchange key technical data to allow for accurate risk assessment and to create policies that respond effectively to the needs of all parties involved.
Visa joined the $9.2M funding round of Finnish card issuer and payment processor Enfuce. The investment is aimed at further bolstering the company’s presence in the Benelux, German, and French markets in 2024.
Enter the exhilarating domain of Fintech Infrastructure, where global titans ally, pooling their tech superpowers for a seamless fusion.
Amsterdam-based Backbase expanded into Chile in partnership with Banco Security, with the aim of streamlining digital banking services. The primary goal of this collaboration is to elevate the digital customer experience, bolster the sales of additional products, and positively impact overall business efficiency.
International technology service provider GFT collaborated with Engine by Starling as a key implementation partner for its Software-as-a-Service business, to deliver modern banking solutions to global banks and financial institutions.
Immerse yourself in the blooming universe of Green Finance, where the financial world strides toward infusing eco-friendliness into the financial landscape.
The Financial Conduct Authority introduced new Sustainability Disclosure Requirements aimed towards curbing greenwashing and promoting transparency in sustainable investment products. One of the key elements of the SDR is introducing an anti-greenwashing rule.
India’s Prime Minister Narendra Modi together with President Sheikh Mohammed bin Zayed Al Nahyan of UAE co-hosted an event on the ‘Green Credits Programme’ at COP-28 on the 1st of December, 2023 in Dubai. The Green Credit Initiative is conceptualised as a mechanism to incentivise voluntary pro-planet actions, as an effective response to the challenge of climate change.
In the epic world of DeFi, players raced to conquer new frontiers, spreading the essence of decentralised finance to untapped regions.
The Bank of Korea (BOK) rolled out details on its pilot program for its retail central bank digital currency (CBDC), stating that 100,000 selected Korean citizens will join the trial in the fourth quarter of next year. The participants will be able to buy goods with tokens in the form of CBDC issued by commercial banks.
Paxos, a provider of blockchain and tokenisation infrastructure, secured in-principle approvals for stablecoin issuance and crypto services from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi. These preliminary approvals mark Paxos’s significant venture into the rapidly evolving digital asset sector in the Middle East.
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!
AI decisioning platform Rich Data Co raised $17.5M in a Series B round to accelerate North American expansion.
Online international transfer platform Paysend raised $65M in its latest funding round, including strategic investment from Mastercard.
Payment solutions provider PhiCommerce raised $10M, intending to boost its payment solution offerings.
US-based payment platform Mozaic raised $20M to solve uneven payment distribution in the music industry.
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: Payment Titans Go All-In on the Embedded Lending Revolution
2023 Roundup: SMB Financing Gets a Makeover with Embedded Finance
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.