?? Banking N.0: The Blockchain Impact

Hola, crunchers!

Publishing today's crunch from the lovely city of Madrid.

I am here to participate on Hybrid (Physical and Virtual) event where we will be discussing Open Banking and Embedded Finance and the opportunity it creates in the MSME segment for banks and other financial institutions. I have posted the details on my LinkedIn account, so if you would like to join then please register.

Now back to today's crunch.

While crypto isn’t looking so good lately, there is a silver lining… Blockchain is making rounds in the banking industry, thanks to its powerful and secure technology. There's no doubt that blockchain is having a moment. But what does that mean for consumers? And what do banks need to do to prepare for a blockchain-centric future?

Keep reading – I’m sharing more on that in today’s edition.

YESTERDAY’S MARKET MOVES

SOME FAMILIAR FINTECH STOCKS

Note: The variance captures DoD movement in the price.

WHAT’S NEW IN FINTECH?

• Visa announced three days ago the launch of its global She's Next initiative in the UAE to economically empower local women entrepreneurs. The initiative is launched in partnership with First Abu Dhabi Bank and the Dubai Business Women Council.

• Contactless payments witnessed a 6x growth in India over the last three years, according to a whitepaper by Visa and Worldline India Whitepaper. This mode of less-touch payments in stores ensured consumer safety, accelerated by the pandemic.

• The Reserve Bank of India's fintech legislation, which forbids non-banking wallets and pre-paid cards from adding credit lines to these products, is making life tougher for fintech firms.

Banking N.0: The Blockchain Update

Blockchain has the potential for revolutionizing the world as we know it. But what many people don't realize is how this new technology is also impacting the banking sector.

Blockchain is a powerful and secure technology that is getting into almost every industry, from banking and medicine to the government sector. One of the most popular domain of blockchain use is within the banking and finance sector.

Here is a lit of several use cases of blockchain technology finance listed in this article:?

• Bank blockchain payments are faster and cheaper than traditional systems.

• Trading transactions in blockchain improve performance by reducing the redundancy of information.

• Blockchain-based trade finance can streamline the entire trading process by getting rid of time-consuming paperwork and bureaucracy.

• With blockchain technology, users can choose how they identify themselves and with whom they agree to share their identity.

• By using financial blockchain for syndicated loan processing, banks can benefit from exchanging information through a secure network.

• Blockchain can help to easily prove the integrity of electronic files, which would decrease costs and save time for auditors.

• Blockchain-based credit reports reduce the costs and complexities of data verification and give individuals control over their data.

• Decentralized crypto hedge funds are open platforms that allow many more investors and strategists to participate.

• Initial Coin Offerings (ICOs) is a way to raise money by selling tokens over the internet. These tokens have benefits such as liquidity and the ability to be raised from anywhere in the world to help kickstart any crypto-based projects.

• Blockchain is a technology that allows for P2P transactions across the world without any geographical limitations in real time.

? QUICK INVESTMENT ROUNDS

• valU announced that the Alhokair Family has entered into an agreement to acquire a 4.99% stake in valU through a capital injection of $12.4 million, signifying a valuation of $247.4 million for the company.

• The Berlin-based fintech Upvest raised a €40m series B round led by Bessemer Venture Partners and including investors like Notion Capital, Partech, Speedinvest, and Earlybird Venture Capital.

• The Swedish fintech Lysa raised a €34m venture round from Ramsbury Invest, SEB Venture Capital, and other undisclosed investors.

• Yummy secures $47 million to grow its super app providing delivery of items, ride-sharing, and grocery delivery in Latin America.

• The British SME challenger bank Allica Bank raised a €65m venture round, split between €30m in Equity from existing investors Warwick Capital and Atalaya Capital Management, and €35m of Tier 2 credit line from British Business Investments.

?? REPORT OF THE DAY

The State of VC in 2022

The current economic state of the world may make you feel like the system is falling apart but nothing helps more than data and graphs. This issue of the crunch comes with a report from Allocate and Dealroom.co and gives us an overall update on the state of VC in 2022. It’s filled with very insightful graphs on the current activity of tech investments, the investor landscape, and the promising future of venture capital. A sneak peek: 2022 investment is already at the level of the full year of 2020. Maybe the future is not all black.

Read the full report here.?

? BEFORE YOU GO…

• Bitcoin: The world’s largest public holder of Bitcoin, Michael Saylor, called on regulators to finally tackle a laundry list of risky crypto industry practices that are unfairly weighing on the price of its asset.

• Metaverse: You can now buy upscale digital fashion pieces for your avatar on Instagram, Facebook, and Messenger with Meta’s new digital fashion marketplace. Prada, Balenciaga and Thom Browne are among the first brands to sign on to sell digital fashion.

• NFTs: Major toy brand Mattel has signed a partnership with toy-focused NFT marketplace Cryptoys to exclusively feature its brand on the platform. Cryptoys is expected to launch later this summer.

?? THE LATEST ON COUCHONOMICS

You can also listen to this episode on Apple Podcasts, Google Podcasts, and Deezer

YOU ARE OUR BIGGEST SUPPORTERS, SO HELP SPREAD THE WORD…

? ?? Know someone who would love the crunch? Tag them in the comments, or simply click here to share today’s news with them.

? ?? Read the latest on the world of fintech by subscribing to my newsletter here.