Fintech

DEI in action: More and more fintech companies are making real change

Published

7 months ago

29 June, 2024

This June in The Fintech Times we will focus on diversity, equity and inclusion (DEI). No longer just a trending topic, but an essential consideration not only for your business operations, but also for your offering, this topic seems more relevant than ever.

The fintech sector is known for its innovative and agile reputation, yet it still faces a significant diversity problem that threatens to stunt its growth and halt the innovation movement.

Yesterday we shared a roundup of fintech companies that are embracing diversity in their operations, and the response was so overwhelming that we had to create a second piece just to fit them all in. So without further ado, here are a few more fintech companies in the world that are embracing DEI and its benefits.

Diversity at all levels

My Friend Janette Yuen Janette Yuen, HR Manager, Zafin

Janette YuenHR manager at banking software platform, Zafin, She said:

“We know that a diverse and inclusive team enhances our ability to innovate and build better solutions. Zafin’s workforce has diverse representation at all levels, from entry-level positions to our senior leadership team and board of directors.

“To support our employees, we have multiple programs focused on equity, education, community and giving, such as:

“In addition to our Employee Assistance Program (EAP), which all employees can access, we recognize that some employees may already be using mental health providers. As a result, we offer 24/7 on-demand access to resources and services focused on the mental, physical and emotional well-being of employees and their families. This commitment to mental wellness has earned us recognition as one of Canada’s Best Places to Work for Mental Wellbeing Great place to work.

“Our employee engagement surveys are important to building a culture of care and transparency. In our latest survey, we found that 78% (+13%) of our global employees provided feedback and 86% said Zafin is a great place to work, far exceeding the average of 60% for typical Canadian organizations. We are proud to continue to be recognized as a Great Place to Work for five consecutive years, with further recognition across our UK and India offices as the Best Place to Work for Women in India in 2023.”

Sense of belonging

Orit Federlein-Doodai, Head of Human Resources EMEA, PayU GPO

Orit Federlein-Doodai, hHead of Human Resources EMEAPayU GPO, a payment technology provider, said:

“Companies must also foster an environment where every employee feels a sense of belonging, is empowered to express their perspectives and can succeed regardless of gender, race or beliefs. DEI principles must shape company policies to create a positive experience for your employees.

“At PayU GPO, we embody these principles and care for our employees throughout the entire employee lifecycle. This includes a structured compensation review process that should be analyzed to avoid any discrimination, providing a variety of benefits that potentially fit everyone, and celebrating special and meaningful employee moments. We celebrate both personal moments such as birthdays or maternity leave; and professional milestones, such as promotions or anniversaries, as well as global and local events that allow for open discussions related to DEI, such as Pride Month and International Women’s Day.

“At the heart of our company are our PayUneers. At the heart of being a PayUneer is the ability to be a ‘U’ in the workplace, which is why our annual Pride Month celebrations are so important: we want all employees to feel like they are working in a welcoming and inclusive environment.”

Thriving in the industry

Rashmi Sharma, Vice President of Engineering, Mambu

Rashmi Sharmavice president of engineering at SaaS cloud banking platform, Mambo, She said:

“In the Netherlands we celebrate “Girls’ Day”, an annual event where girls aged between 12 and 15 are encouraged to visit companies in the science, technology and IT sectors and immerse themselves in the world of technology. This year, to mark the occasion at Mambu, we invited 20 girls to our office to give them the opportunity to talk to the men and women of Mambu about working in technology, take part in hands-on workshops and learn more about skills needed to enter and thrive in the industry.

“Girls’ Day is a great opportunity for everyone involved and is something we care deeply about at Mambu. 20 girls may not seem like a lot, but if we can convince just one of them to consider pursuing a STEM and technology career, in my eyes that would be a win.

“Not only is this a rewarding moment for the Mambu team, but every girl who participated did
the potential to inspire others and create a chain of influence to encourage more girls to speak up
on STEM education and careers in technology.”

The value of diversity

Roshini Dhaliwal, Chief Human Resources Officer, ClearBank

Rosini The Dhaliwal, human resources manager at ClearBank, a clearing bank, said: “At ClearBank we recognize the value that diversity brings not only to our corporate culture but also to the products and services we provide to our customers. Bringing together a broad range of perspectives and experiences results in richer ideas, innovation and a deeper understanding of our customers’ needs. We maintain this core core in our culture by implementing inclusive practices from recruiting through leadership.

“DEI is one of our corporate priorities and is something we think about a lot. Not because we think we should, but because we know it’s the right thing to do. We are committed to ensuring that our teams reflect society and invest energy in making it a place where everyone feels able to be themselves. Our DEI policy guides us, but it’s the tangible things that happen here every day that we’re most proud of, like our increased support for family leave, dynamic employee resource groups, and all the training we offer.

“As a technology-driven company, we rely on data to drive informed business action, and we believe DEI should be no different. We have set specific, measurable goals and regularly review our progress, which helps us continue to foster a diverse and inclusive culture.”

Make an impact

Emma Steeley, CEO, Aro

Emma Steeley, CEO at Aro, a credit broker, said:

“After taking over as CEO two years ago, I wanted to make an impact on our workplace. Given that women are only a minority in all STEM-based jobs—30% of the fintech industry has women but only more than 10% of them in leadership roles—I wanted to redesign our culture by implementing a framework that prioritizes inclusion, respect, and psychological safety in the workplace.

“Under this scheme, we support our staff through life’s most important moments, offering extensive paid leave for maternity, paternity and adoption, as well as compassionate leave during pregnancy loss. We also provide support for difficult transitions such as menopause and domestic abuse, ensuring that every employee feels valued and acknowledged.

“Our dedication to inclusion extends to welcoming religious practices. We offer private, safe spaces for prayer within our offices and a flexible hybrid working policy that allows employees to work outside the UK for up to two weeks a year for religious events or family visits. This flexibility ensures our diverse workforce can practice their beliefs and maintain important family connections without compromising their professional responsibilities.”

Diversifying the workforce

Betsy Samuel, marketing director, Thredd

Betsy Samuel, marketing manager at payment processor, Discussion:

“At Thredd, we have been on our DEI journey for the past five years. Initially, the company began with the aspiration and vision of creating a diverse workforce that spanned attributes from race and gender to neurodiversity and sexual identity. In the early 2020s, GPS began more intentional hiring to diversify the workforce by bringing more diverse individuals into the organization.

“In 2023, the company launched new corporate values that capture desired behaviors needed to both drive performance and do so in an inclusive, diverse environment where differences are embraced. The display of these values is a component in determining all employee bonuses and is also continuously measured through our performance management process. This was followed by the launch of an anonymous, in-depth employee engagement survey to gauge various employee attitudes and obtain feedback, including their views on how diversity is supported and encouraged in the organization.

“For 2024, Thredd is building on these efforts to develop a more comprehensive set of diversity metrics to ensure that the next phase of the company’s DEI efforts can be effectively measured and analyzed to evolve as the company grows.”

Work-life balance

Lynda Clarke, Chief Operating Officer, Tribe Payments

My opinion chief operating officer at payment technology company, Tribe payments, She said:

“At Tribe, much of our ongoing work is focused on encouraging and supporting women in STEM. We currently have over 180 employees across multiple European offices. Around a third of our senior leadership team is women, and in technical roles, women lead IT project management (89%) and implementation (59%).

“Tribe also recently introduced a policy to support working parents, which I championed – as a woman in a leadership role, I felt it was my responsibility to lead the organization to ensure we had supportive policies in place. This was a major milestone for a company that is only six years old, but is passionate about having the right policies in place to support its employees.

“Ultimately, Tribe is about providing a good work-life balance. Whether it’s allowing mothers who want to breastfeed off-camera while they’re on duty, or supporting a parent in going to school to pick up their sick child, parents should have the flexibility to do that. We make sure that we’re able to facilitate that and acknowledge that that’s okay. We know that our employees are extremely dedicated. They work extremely hard for us. And we make sure that we support them as best we can.”

Polly Jean Harrison
Polly is a journalist, content creator and general opinion maker from North Wales. You have written for numerous publications, usually focusing on topics such as fintech, technology, lifestyle and body positivity.

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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.

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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

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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.

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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.”