Fintech

“Fintech Can Truly Change Lives:” Enfuce Co-CEOs on Building a Sustainable Future

Published

7 months ago

14 June, 2024

In the bustling corridors of Money20/20 in Amsterdam, the air was thick with anticipation and innovation. Amidst this dynamic backdrop, Enfuce illuminated a vision for fintech that transcends mere financial transactions.

Monika Liikamaa and Denise Johansson, the co-CEOs and co-founders of Enfuce, shared their insights with us in a post-event interview, revealing a profound commitment to integrating ESG principles into the core of their operations, and setting a new benchmark for the industry through tangible, actionable change.

“As we grow even further, we will continue to raise the bar
and inspire industry-wide change” they emphasized. A declaration which is more than
aspirational—it’s a roadmap for how fintech can address pressing global
challenges through innovation and a steadfast commitment to ESG principles.

On The Role of Fintech in a Sustainable Future

Fintech, traditionally viewed through the lens of financial
transactions and efficiency, is now being reimagined as a vehicle for broader
societal change. The co-CEOs of Enfuce articulated this vision clearly:
“Fintech isn’t just about numbers and transactions. We think that fintech
can truly change lives and tackle the world’s biggest challenge by leveraging
technology.” Their statement clearly underscores their belief that fintech has the
potential to address global challenges through innovation and technological advancement.

In fact, Enfuce’s commitment to ESG principles is evident in their
strategic initiatives. They have been proactive in promoting financial
inclusion and environmental sustainability, evidenced by their participation in
The Climate Pledge and their selection by the UN Global Compact Network Finland
to join the prestigious SDG Ambition programme. “At Enfuce, ESG is our
guiding principle. We’re already raising the bar through our high-impact
initiatives,” they stated, highlighting their dedication to driving
positive environmental change.

Innovation in Action: The CO2 Calculator

One of the standout innovations discussed was the
integration of a CO2 calculator into commercial cards. This initiative,
developed in partnership with Siminn Pay and Deedster, is a testament to
Enfuce’s culture of value-driven collaborations. “By integrating CO2
trackers into payment cards, we’re giving people the power to monitor and
understand their carbon footprint more easily,” they explained.
This innovation is not just about tracking carbon emissions; it represents a
shift towards empowering consumers to make informed decisions and positively
impact the environment.

The partnership with Deedster, which began in 2023,
reflects Enfuce’s long-term commitment to ESG principles in the payments space.
“While Siminn Pay is our first client to integrate Deedster’s CO2 tracker,
our collaboration with Deedster dates back to 2023,” the co-CEOs noted,
emphasizing the strategic and collaborative approach that drives their
innovations.

Beyond Carbon Tracking: Promoting Social Equity

Enfuce’s commitment to sustainability extends beyond
environmental concerns to include social equity and inclusive growth. They have
launched several initiatives aimed at promoting financial inclusion. “Our
‘First Aid’ cards for Ukrainian refugees in France, launched with Welcome.Place
and Visa, and our prepaid cards launched in collaboration with the Finnish
State Treasury, are prime examples,” they highlighted. These
initiatives ensure that financial services are accessible to underserved
communities, fostering social equity and inclusive growth.

Moreover, Enfuce is actively involved in combating
financial crime. “As payment providers, we’re on the front lines against
money laundering, fraud, and human trafficking,” they stated. Their
cutting-edge fraud prevention solutions safeguard millions of transactions
annually, contributing to a safer and fairer global economy, and ultimately showing the critical role fintech
can play in ensuring financial security.

Preparing for the Future: The Next Frontier for ESG

Looking ahead, Likamaa and Johansson foresee AI playing a pivotal role in
enhancing the accuracy and impact of tools like the CO2 calculator. “No
doubt about it, AI is changing the game. We’re already witnessing its ability
to increase efficiencies in businesses, and here at Enfuce, it’s no
exception!” they remarked. AI’s potential to provide deeper insights into
consumer behavior and streamline ESG reporting is seen as a game-changer.
“We can anticipate AI providing people greater insights into their spending
and CO2 emissions as well as streamlining and enhancing ESG reporting,”
they added, highlighting the transformative potential of AI in promoting
sustainability.

The co-founders also discussed the future challenges and
opportunities for ESG in fintech. “The next frontier for ESG in fintech
will be the seamless integration of sustainable practices throughout all
aspects of business,” they asserted. Achieving this seamless integration
is no small feat, but Enfuce is prepared to lead the charge. Their work with
the UN Global Compact Network Finland is central to developing industry-leading
sustainable and socially responsible policies.

Enfuce’s strategic collaborations are designed to amplify
their impact and encourage widespread adoption of ESG principles. “Our
partnerships with Deedster and Siminn Pay are about making a collective impact
and encouraging others to implement solid ESG principles and practices,”
they explained. These collaborations reflect Enfuce’s broader vision of leading
by example and fostering industry-wide change.

Leaving a Legacy of Sustainability

Looking ahead, Enfuce aims to leave a lasting legacy in the
fintech industry regarding ESG and sustainability. “We’re on a mission to
set higher standards for ourselves and the industry, inspiring action through
innovation,” they declared. Their efforts are not confined to the
realms of payments and finance; they aim to influence a wide range of sectors. “Through our awareness campaigns, impact-driven initiatives,
and value-driven partnerships, we’re leading by example and helping to create a
more sustainable and equitable future across all areas of ESG,” they
concluded.

Conclusion

In the grand, ceaseless churn of progress, there lies an opportunity—a chance to redefine what it means to be at the intersection of finance and ethics.

Enfuce, with their bold and unapologetic embrace of ESG principles, has embarked on this mission with fervor, imbuing the wave of fintech innovation with purpose and direction. They see fintech not just as a tool for profit but as a catalyst for profound societal transformation, proving that the amalgamation of financial prowess and ethical stewardship is not just possible but imperative.

On The Role of Fintech in a Sustainable Future

Innovation in Action: The CO2 Calculator

Beyond Carbon Tracking: Promoting Social Equity

Preparing for the Future: The Next Frontier for ESG

Leaving a Legacy of Sustainability

Conclusion

In the grand, ceaseless churn of progress, there lies an opportunity—a chance to redefine what it means to be at the intersection of finance and ethics.

Source

Fintech

US Agencies Request Information on Bank-Fintech Dealings

Published

6 months ago

30 July, 2024

FinCrypt Staff

Federal banking regulators have issued a statement reminding banks of the potential risks associated with third-party arrangements to provide bank deposit products and services.

The agencies support responsible innovation and banks that engage in these arrangements in a safe and fair manner and in compliance with applicable law. While these arrangements may offer benefits, supervisory experience has identified a number of safety and soundness, compliance, and consumer concerns with the management of these arrangements. The statement details potential risks and provides examples of effective risk management practices for these arrangements. Additionally, the statement reminds banks of existing legal requirements, guidance, and related resources and provides insights that the agencies have gained through their oversight. The statement does not establish new supervisory expectations.

Separately, the agencies requested additional information on a broad range of arrangements between banks and fintechs, including for deposit, payment, and lending products and services. The agencies are seeking input on the nature and implications of arrangements between banks and fintechs and effective risk management practices.

The agencies are considering whether to take additional steps to ensure that banks effectively manage the risks associated with these different types of arrangements.

SUBSCRIBE TO THE NEWSLETTER

And get exclusive articles on the stock markets

Source

Fintech

What changes in financial regulation have impacted the development of financial technology?

Published

6 months ago

30 July, 2024

FinCrypt Staff

Exploring the complex landscape of global financial regulation, we gather insights from leading fintech leaders, including CEOs and finance experts. From the game-changing impact of PSD2 to the significant role of GDPR in data security, explore the four key regulatory changes that have reshaped fintech development, answering the question: “What changes in financial regulation have impacted fintech development?”

PSD2 revolutionizes access to financial technology
GDPR Improves Fintech Data Privacy
Regulatory Sandboxes Drive Fintech Innovation
GDPR Impacts Fintech Data Security

PSD2 revolutionizes access to financial technology

When it comes to regulatory impact on fintech development, nothing comes close to PSD2. This EU regulation has created a new level playing field for market players of all sizes, from fintech startups to established banks. It has had a ripple effect on other markets around the world, inspiring similar regulatory frameworks and driving global innovation in fintech.

The Payment Services Directive (PSD2), the EU law in force since 2018, has revolutionized the fintech industry by requiring banks to provide third-party payment providers (TPPs) with access to payment services and customer account information via open APIs. This has democratized access to financial data, fostering the development of personalized financial instruments and seamless payment solutions. Advanced security measures such as Strong Customer Authentication (SCA) have increased consumer trust, pushing both fintech companies and traditional banks to innovate and collaborate more effectively, resulting in a dynamic and consumer-friendly financial ecosystem.

The impact of PSD2 has extended beyond the EU, inspiring similar regulations around the world. Countries such as the UK, Australia and Canada have launched their own open banking initiatives, spurred by the benefits seen in the EU. PSD2 has highlighted the benefits of open banking, also prompting US financial institutions and fintech companies to explore similar initiatives voluntarily.

This has led to a global wave of fintech innovation, with financial institutions and fintech companies offering more integrated, personalized and secure services. The EU’s leadership in open banking through PSD2 has set a global standard, promoting regulatory harmonization and fostering an interconnected and innovative global financial ecosystem.

Looking ahead, the EU’s PSD3 proposals and Financial Data Access (FIDA) regulations promise to further advance open banking. PSD3 aims to refine and build on PSD2, with a focus on improving transaction security, fraud prevention, and integration between banks and TPPs. FIDA will expand data sharing beyond payment accounts to include areas such as insurance and investments, paving the way for more comprehensive financial products and services.

These developments are set to further enhance connectivity, efficiency and innovation in financial services, cementing open banking as a key component of the global financial infrastructure.

Sebastian Malczyk

General Manager, Technology and Product Consultant Fintech, Insurtech, Miquido

GDPR Improves Fintech Data Privacy

Privacy and data protection have been taken to another level by the General Data Protection Regulation (GDPR), forcing fintech companies to tighten their data management. In compliance with the GDPR, organizations must ensure that personal data is processed fairly, transparently, and securely.

This has led to increased innovation in fintech towards technologies such as encryption and anonymization for data protection. GDPR was described as a top priority in the data protection strategies of 92% of US-based companies surveyed by PwC.

Arid Islam

Financial Expert, Sterlinx Global

Regulatory Sandboxes Drive Fintech Innovation

Since the UK’s Financial Conduct Authority (FCA) pioneered sandbox regulatory frameworks in 2016 to enable fintech startups to explore new products and services, similar frameworks have been introduced in other countries.

This has reduced the “crippling effect on innovation” caused by a “one size fits all” regulatory approach, which would also require machines to be built to complete regulatory compliance before any testing. Successful applications within sandboxes give regulators the confidence to move forward and address gaps in laws, regulations, or supervisory approaches. This has led to widespread adoption of new technologies and business models and helped channel private sector dynamism, while keeping consumers protected and imposing appropriate regulatory requirements.

George Blandford

Co-founder, UK Linkology

GDPR Impacts Fintech Data Security

A big change in financial regulations that has had a real impact on fintech is the 2018 EU General Data Protection Regulation (GDPR). I have seen how GDPR has pushed us to focus more on user privacy and data security.

GDPR means we have to handle personal data much more carefully. At Leverage, we have had to step up our game to meet these new rules. We have improved our data encryption and started doing regular security audits. It was a little tricky at first, but it has made our systems much more secure.

For example, we’ve added features that give users more control over their data, like simple consent tools and clear privacy notices. These changes have helped us comply with GDPR and made our customers feel more confident in how we handle their information.

I believe that GDPR has made fintech companies, including us at Leverage, more transparent and secure. It has helped build trust with our users, showing them that we take data protection seriously.

Dr. Rhett Stubbendeck

CEO & Co-Founder, Leverage Planning

Source

Fintech

M2P Fintech About to Raise $80M

Published

6 months ago

30 July, 2024

FinCrypt Staff

Application Programming Interface (API) Infrastructure Platform M2P Financial Technology has reached the final round to raise $80 million, at a valuation of $900 million.

Specifically, M2P Fintech, formerly known as Yap, is closing a new funding round involving new and existing investors, according to entrackr.com. The India-based company, which last raised funding two and a half years ago, previously secured $56 million in a round led by Insight Partners, earning a post-money valuation of $650 million.

A source indicated that M2P Fintech is ready to raise $80 million in this new funding round, led by a new investor. Existing backers, including Insight Partners, are also expected to participate. The new funding is expected to go toward enhancing the company’s technology infrastructure and driving growth in domestic and international markets.

What does M2P Fintech do?

M2P Fintech’s API platform enables businesses to provide branded financial services through partnerships with fintech companies while maintaining regulatory compliance. In addition to its operations in India, the company is active in Nepal, UAE, Australia, New Zealand, Philippines, Bahrain, Egypt, and many other countries.

Another source revealed that M2P Fintech’s valuation in this funding round is expected to be between USD 880 million and USD 900 million (post-money). The company has reportedly received a term sheet and the deal is expected to be publicly announced soon. The Tiger Global-backed company has acquired six companies to date, including Goals101, Syntizen, and BSG ITSOFT, to enhance its service offerings.

According to TheKredible, Beenext is the company’s largest shareholder with over 13% ownership, while the co-founders collectively own 34% of the company. Although M2P Fintech has yet to release its FY24 financials, it has reported a significant increase in operating revenue. However, this growth has also been accompanied by a substantial increase in losses.

Source

Fintech

Scottish financial technology firm Aveni secures £11m to expand AI offering

Published

6 months ago

30 July, 2024

FinCrypt Staff

Aveni, Investment Management, AI, NLP, UK

By Gloria Methri

Today

To come
Aveni Assistance
Aveni Detection

Artificial intelligence Financial Technology Aveni has announced one of the largest Series A investments in a Scottish company this year, amounting to £11 million. The investment is led by Puma Private Equity with participation from Par Equity, Lloyds Banking Group and Nationwide.

Aveni combines AI expertise with extensive financial services experience to create large language models (LLMs) and AI products designed specifically for the financial services industry. It is trusted by some of the UK’s leading financial services firms. It has seen significant business growth over the past two years through its conformity and productivity solutions, Aveni Detect and Aveni Assist.

This investment will enable Aveni to build on the success of its existing products, further consolidate its presence in the sector and introduce advanced technologies through FinLLM, a large-scale language model specifically for financial services.

FinLLM is being developed in partnership with new investors Lloyds Banking Group and Nationwide. It is a large, industry-aligned language model that aims to set the standard for transparent, responsible and ethical adoption of generative AI in UK financial services.

Following the investment, the team developing the FinLLM will be based at the Edinburgh Futures Institute, in a state-of-the-art facility.

Joseph Twigg, CEO of Aveniexplained, “The financial services industry doesn’t need AI models that can quote Shakespeare; it needs AI models that deliver transparency, trust, and most importantly, fairness. The way to achieve this is to develop small, highly tuned language models, trained on financial services data, and reviewed by financial services experts for specific financial services use cases. Generative AI is the most significant technological evolution of our generation, and we are in the early stages of adoption. This represents a significant opportunity for Aveni and our partners. The goal with FinLLM is to set a new standard for the controlled, responsible, and ethical adoption of generative AI, outperforming all other generic models in our select financial services use cases.”