Fintech

The fintech and film industries are growing in New Jersey

Published

11 months ago

8 May, 2024

Plug and Play e New Jersey Economic Development Authority (NJEDA) have launched an acceleration hub, dubbed the Fintech Accelerator, at the Stevens Institute of Technology (NJ FAST) in Hoboken. Plug and play is a Silicon Valley-based innovation company and platform known for connecting startups, enterprises, venture capital firms, and government agencies. NJ FAST is the first East Coast location for Plug and Play, which has partnerships around the world.

The Strategic Innovation Center (SIC) will serve as a hub for financial technology (fintech) and insurance technology (insuretech) startups. Stevens Institute of Technology will serve as a founding academic partner and Prudential Financial will serve as a founding corporate partner of NJ FAST.

“By serving as the fourth Strategic Innovation Center, NJ FAST positions New Jersey to remain at the forefront of innovation, research and development, particularly in the cutting-edge fintech and insurance sectors,” said Governor Phil Murphy. “NJ FAST will enable new entrepreneurs to bring their world-class ideas to New Jersey, augmenting our state’s already impressive talent pool, all while capitalizing on the resources and expertise of our partners at Stevens Institute of Technology. This center sends a clear message: When it comes to technology and innovation, the Garden State is the place to be.”

NJ FAST Governor Phil Murphy and Plug and Play launch the Fintech Accelerator at the Stevens Institute of Technology (NJ FAST) in Hoboken, NJ.

NJEDA and Plug and Play will oversee NJ FAST’s accelerator program with the opportunity to make equity investments in select participating companies. The program will host two groups per year, consisting of at least 10 companies per group. Companies will be recruited globally to participate in the program, but at least 20% of the group will be from New Jersey and there will be a strong focus on diversity, equity and inclusion. Equity investments of up to $1 million will be made in at least 15% of participating companies. Pending approval from its board of directors, the NJEDA intends to invest up to $17.5 million in the fintech accelerator.

NJ FAST is Plug and Play’s first-ever partnership on the East Coast. The company plans to commit at least 10% of the total capital commitment of up to $2.5 million in funding for the Innovation Center and will work to secure funding and industry support from various corporate entities.

“We couldn’t be more excited to land in New Jersey and work with NJEDA, Stevens Institute and Prudential to strengthen our presence on the East Coast and implement our open innovation approach in the financial services and insurance industry to identify and accelerate projects most promising startups in the industry,” said Michael Olmstead, Chief Revenue Officer at Plug and Play.

The Stevens Institute and Prudential will provide training and other educational, licensing, research opportunities for startups participating in NJ FAST and more. Stevens will also host events annually on its campus and provide a permanent team of student interns who will work to support participating companies.

“NJFAST is an excellent example of a public-private-higher education collaboration that has the potential to bring significant economic value to our state and to serve as a national and global leader,” said Stevens Institute of Technology President Nariman Farvardin. “Stevens is pleased to leverage his deep and significant experience in financial systems, technologies and entrepreneurship, as well as our knowledge of emerging fields such as artificial intelligence, machine learning and quantum computing, to the benefit of all partners and the State”.

Netflix and 1888 Studios Eligible to Access the New Jersey Film and Digital Media Tax Credit

Projects filmed at a new production studio campus on the former Fort Monmouth site are now eligible for expanded film tax credits. The NJEDA Board of Directors has designated Netflix Inc. as a Studio Partner, which allows the media company to access broader benefits under the state program Film and Digital Media Tax Credit Program. Under the agreement, Netflix commits to occupying a film production facility in New Jersey for at least 10 years and is potentially entitled to a 40% base tax credit for qualified production expenses on future film projects in the state.

“The expansion of the Film and Digital Media Tax Credit program, combined with strong state support, makes a compelling case for the return of major production companies to New Jersey, the birthplace of cinema,” said the Governor Murphy. “With Netflix at the forefront, the creation of new world-class studios has solidified New Jersey’s position as a national leader in film and television production. These large investments will create thousands of good-paying jobs, support small businesses and retailers, and stimulate the regional economy.”

Netflix Netflix Rendering of the Netflix manufacturing facility at the former Fort Monmouth site in Monmouth County, NJ. (Image: Netflix)

In January 2023, Netflix entered into a purchase, sale and redevelopment agreement with the Fort Monmouth Economic Revitalization Authority (FMERA) to purchase 292 acres and develop over one million square feet of studio production and support space. The production studio campus will include 12 sound stages, backlot areas, an office building and other production support facilities. Over 280,000 square feet of production space included in the project has been designated as Studio Partner Facility space by Netflix. Netflix plans to open the entire facility in 2028.

“Today brings us one step closer to making New Jersey an international hub for studio production, and Netflix is thrilled to be a part of it.”

— Ted Sarandos, Co-CEO, Netflix

“I want to thank Governor Murphy and his administration for their continued commitment to bringing this project to fruition,” said Netflix co-CEO Ted Sarandos. “Today brings us one step closer to making New Jersey an international hub for studio production, and Netflix is thrilled to be a part of it.”

“Netflix’s decision to build a top-tier production studio in New Jersey symbolizes the momentum of the state’s film industry, attracting more studios thanks to the breadth of local talent, diverse filming locations and generous incentives offered by the Garden State “, he has declared New Jersey Film and Television Commission Executive Director Jon Crowley. “Today’s designation will allow Netflix to access greater benefits under the successful Film and Digital Media Tax Credit program, and our continued partnership over the next decade will strengthen New Jersey’s position as a media production hub ”.

The Film and Digital Media Tax Credit Program was expanded in 2021, increasing the annual allocation to $400 million and granting the NJEDA authority to designate eligible film production companies as Studio Partners, which must commit to large employment studio complexes in New Jersey that have the potential to have large economic impacts. Studio Partners have access to a separate $150 million incentive pool under the program.

Further north in Bayonne, 1888 Studios, developed by Togus Urban Renewal, LLC, has been designated as a movie rental partner facility by NJEDA. This designation commits the developer to occupying the facility for at least five years and grants future tenants eligibility to apply for increased tax credits for projects filmed at the property under the Film and Digital Media Tax Credit program.

The 1.5 million-square-foot 1888 Studios development will be the largest and first campus-style film and television studio in the Northeast and one of the largest in the nation. It will occupy 58 acres of land and 20 acres in Newark Bay, just a few miles from New York City. Designed by architecture firm Gensler, the development will include 23 mega-powered smart stages ranging from 18,000 to 60,000 square feet with 40- to 50-foot ceiling heights, more than 350,000 square feet of production support space, outdoor space, amenities, office spaces , mills, lighting and intake facilities, garage and storage. The complex will also include a waterfront park and a publicly accessible promenade. 1888 Studios is expected to open in 2026.

“We are honored that Governor Murphy has invited us to be part of realizing his ambitious vision to catapult New Jersey – the birthplace of cinema and home to the first motion picture studio, Thomas Edison’s The Black Maria – onto the world stage, reclaiming its title as the premier destination for entertainment production,” said Arpad “Arki” Busson, president of Togus Urban Renewal, the developer of 1888 Studios. “Without that vision and his administration’s relentless commitment to this sector, none of this would be possible.”

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“Receiving this one-of-a-kind designation for 1888 Studios is largely due to the unwavering support of Bayonne Mayor Jimmy Davis,” Busson continued. “For years he has worked tirelessly to revitalize the city, culminating in the development of this state-of-the-art facility. Thanks to Tim Sullivan and the NJEDA, New Jersey offers a leading tax credit program and infrastructure that will ensure the state’s competitiveness for years to come.”

To be designated as a movie theater leasing partner, developers and operators must commit to occupying and operating studio developments in New Jersey for at least five years. Prospective tenants of a partner film rental facility may receive increased filming tax credits in New Jersey. The tax credit awarded increases if the tenant of the designated facility qualifies as a “leased film production company.” To qualify, the production company must occupy space at the film’s rental partner’s designated facility, film at least 50% of the project’s total shooting days in New Jersey, and film at least 50% of the project’s shooting days in New Jersey in the designated facility.

Get all the latest news related to New Jersey economic development, corporate relocation, business expansion and site selection.

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Fintech

US Agencies Request Information on Bank-Fintech Dealings

Published

8 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

8 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

8 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

8 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.”