Fintech

This Week in Fintech: TFT Bi-Weekly News Roundup 09/07

Published

7 months ago

9 July, 2024

FinCrypt Staff

Welcome to The Times of Financial Technology Fortnightly press review for Tuesday 9 July 2024 with the latest news from around the world.

Appointments

Curve, the digital wallet, he appointed Darren Hackett as its new chief financial officer. With a career spanning more than three decades, Hackett has previously held roles at Deutsche Bank, RBS, ABN Amro, Barclays, Credit Suisse, and also worked at J.P. Morgan AND Limited liability company. The hire also follows Curve’s launch of its own mobile payment solution as an alternative to Apple Pay, which is due to launch on iOS in Europe later this year.

Secure development studio, developer of the smart wallet infrastructure Safe, has strengthened its management team with the appointment of Rahul Rumalla a VP of engineering. Rumalla previously founded two Web3 companies, Paper chain AND Otter space, and also worked with Listen to music from SoundCloud Safe is an on-chain asset custody protocol that protects approximately $100 billion in assets.

UK Fintech Mature appointment James Ricci as Head of M&A. Richards will lead Ripe’s acquisition strategy, further expanding the business through targeted acquisitions in personal commercial and specialist lines. Richards previously had a 10-year career at Deloitte.

Acrysure announces Aaron Miller as CFO. Miller joins Acrisure from Abu Dhabi Investment Authority (ADIA). At ADIA, Miller served as head of financial services in the private equity practice. Miller will play a key role in helping the firm deploy and allocate capital effectively to accelerate growth and position Acrisure to meet the future needs of its clients.

TransUnion, a global information and insights company, appoints Mr. Sam Welch as its new chief revenue officer, and Celso Nogueira as its new head of strategy. Both leaders will serve the business across the UK and Europe. Welch has held senior leadership roles within the business since joining in 2019. Nogueira joined TransUnion’s Brazilian business eight years ago and began working in the UK in 2022.

Job Meeting

Additional appointments

THE European FinTech Association (EFA) appoints its new board of directors: Linda StrazdinaEU policy and government relations are at the forefront Essay, Marc Robertsgeneral consultant at Raisins, Sandrell SultanaGovernment Relations Officer for EU Public Policy at Strip, Josy Soussan, European politics and government relations are at the forefront Klarna, Crystal Goh, Global Head of Communications at N26, Paul Mortby, responsible for policies in the EU, Middle East and Africa for Block, Inc., as well as Oleksandra Maximenkoresponsible for EU government affairs at Revolution.

Daviesthe company specializing in professional services and technology, has appointed Amber Wilkinson as Group CFO. Wilkinson will join Davies later this year, reporting directly to the Group CEO, Dan Saulter, as well as joining the corporate group’s executive committee. He succeeds Davies’ senior executive, Tonly Debiasewho is resigning after successfully serving as CFO for 12 years.

Baker’s Hilla financial technology provider, has appointed Amy Drake as senior vice president of account management for the company, promoting Dr. Bryan Peckinpaugh to senior vice president of national sales. Peckinpaugh joined the Baker Hill team in 2020 as SVP of major accounts. Drake previously served as vice president, chief of staff and sales enablement at Customer care.

Gregor Mowat, co-CEO and co-founder of a UK financial wellness company Loq’s Box has joined the Cost-of-Living Taskforce under the auspices of Business in the Community (BITC), the UK’s largest and most influential responsible business network. As a member of the Taskforce, Mowat joins a cohort of several influential and passionate senior executives.

Collaborations

Zodia Case, the first digital asset custodian institution, has entered into a partnership with Maple Financea digital asset lending and borrowing company. Maple Finance uses Zodia Custody as its preferred custodian for global lending deals. Zodia Custody securely holds the collateral pledged to Maple Finance, allowing clients to unlock the value of their digital assets while remaining within the Zodia Custody ecosystem.

NOW moneya digital banking and payroll platform for migrant workers, has unveiled a new strategic partnership with MasterCard. As part of this collaboration, NOW Money will issue Mastercard payment cards to its customers, in line with its mission to provide inclusive financial solutions to underserved communities and improve the financial well-being of its users in the Gulf Cooperation Council countries.

Cleara digital legal and administrative software provider, and Remote passage, a global payroll and remote team management platform, have formed a strategic partnership. This partnership combines Clara’s enterprise operating system with RemotePass’ expertise in remote workforce management. Clara and RemotePass offer an integrated solution that addresses the challenges of legal documentation, compliance, payroll, and remote team management.

THE Open Identity Exchange and the Canadian non-profit organization Digital ID Authentication Council of Canada (DIACC) have committed to working together to advance global digital interoperability. The two organizations will explore how different country-based policies related to identity management, verification, security, data privacy innovation, and approaches to digital identity assurance can be compared and analyzed so that faster progress can be made toward global digital ID interoperability.

partnership

Further partnerships

Azqore, a commercial and technological partner for wealth managers, has selected Steering wheelpayments as a service (PaaS) to provide instant SEPA payments and ISO 20022 messaging services to its customer base. Azqore and Volante began collaborating when Azqore selected Volante’s low-code ISO 20022 service to accelerate its multi-country, multi-bank ISO 20022 adoption program.

iDenfy, a Lithuanian regtech company, has announced a strategic partnership with NICE, a telecommunications service provider. This collaboration aims to improve digital security, ensuring a more secure and reliable user identification solution for SIMPal customers. As a result of the partnership, the automated verification process has reduced onboarding times.

Ajman Bank PJSC, an Islamic financial services institution in the United Arab Emirates, announces a new contract with Zero positive, which will deliver huge cost and carbon savings. By implementing Positive Zero’s fully funded energy efficiency solutions at its headquarters, Ajman Bank expects to save 28 percent on energy costs and reduce carbon emissions by 752 tonnes per year, equivalent to planting 11,300 trees.

Hesperian welcomed Lloyds Banking Group (LBG) as a new partner for its Support Hub service. As part of Experian Support Hub, LBG, home of Lloyds, Halifax AND Bank of Scotland, will be able to offer its customers the possibility of sharing their access and support needs with the company in a simple and standardized way.

Company Updates

End-to-end payment platform Cash added a new feature that allows merchants to collect recurring payments Payment via PayPal payments from customers alongside the subscription card payments and direct debits they have been using to date. The new feature will benefit merchants with subscription-based business models, which sell a product or service on a recurring basis, such as meal kit delivery services and pay TV.

Edfa Payment is expanding into the Moroccan market after receiving an official license to operate in the country. With this new license, EdfaPay is ready to bring its financial solutions, including Soft POS and Payment Gateway, to merchants and customers across Morocco, with a commitment to leveraging expertise and sustainable technology.

To do ita consumer credit fintech, has received B Corp certification. The certification marks a new milestone in Fairlo’s quest to bring accountability and transparency to credit services, following features such as the Fairness Receipt, a detailed breakdown of a deal. Fairlo launched in Sweden in 2018 and received its FCA license in the UK last year.

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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.”