Will BNPL thrive or fail in high interest, high inflation market?

Top Story of the Week

Will BNPL thrive or fail in high interest, high inflation market??

Buy now, pay later (BNPL) providers have thrived in a low interest and inflation market. As the market shifts the other way, will BNPL be in a fight for survival?

Read the full story?here.

Research highlight

Global Investment in AML & FinCrime Tech companies grew 20.18% (CAGR) from 2018 – 2022

Key AML and FinCrime statistics 2022:

? Global investment dropped 43% in 2022 from 2021

? UK investment increased more than three-fold in 2022 (from 2021) reaching $103m in total

? Global Investment saw a 20.18% compound annual growth rate (CAGR) from 2018 – 2022

? 6% Global deal activity drop in 2022 from 2021

AML and FinCrime companies saw a pull back in funding during 2022 with Global investment dropping 43% compared to 2021 levels. The sector has seen a significant increase in interest from VCs over the last five years. Global Investment in AML and FinCrime companies have grown at a CAGR of 20.18% from 2018 – 2022. Global deal activity in the sector also saw a shortfall in 2022 reaching 170 deals in total, a slight 6% drop.

Snappt, a PropTech AI-enabled fraud detection platform, was the largest AML and FinCrime deal in 2022 raising $100m in their latest Series A funding round, led by Insight Partners. The company’s Series A funding continues the momentum of rapid growth Snappt saw in 2021, including apartment unit and revenue growth of +700%. The new investment will be used to accelerate product development, increase sales and marketing efforts and expand market reach.

Global anti-money laundering fines rose 53% in 2022 with fines for crypto companies up 90%, as regulators tightened control on financial misconduct. Financial institutions faced a total of $5bn in fines in 2022, with the spike tied to heavy fines for crypto firms and sanctions busting commodity trading after the Russian invasion of Ukraine and resolution of legacy issues. The largest AML fine issued by the Financial Conduct Authority (FCA) in the UK was ￡107.7m, given to Santander for risk of financial crime in the Retail Banking sector.Key Highlights from European?

Read more of our research?here.

Weekly FinTech deal roundup

Did you hear about these 34 funding round this week?

As 2023 enters its second month, funding in FinTechs is once again on the up - withFinTech Global reporting on 34 funding rounds this week.

Read the full story?here.

RegTech news

• Clausematch launches knowledge graph to drive digitalisation of regulation?- RegTech firm Clausematch has launched a digital knowledge graph on open source in a bid to help companies consume and interpret ever-changing regulations. Read the full story?here.
• Is AI’s use in transaction monitoring changing? - AI’s use in transaction monitoring has not always been welcomed, but the market is changing, and it is quickly becoming core to these processes. Read the full story?here.
• UK could be next for off-channel trading communications ramp up?- UK firms could be the next to face greater regulatory scrutiny and fines for off-channel trading communications, according to a survey by Global Relay. Read the full story?here.

InsurTech news

• How can bancassurance meet the challenges of today??- As technological innovation and changing customer behaviours continue to disrupt established financial service channels, the bancassurance model is coming under pressure. Pricing sophistication will help bancassurance operators meet the challenges of today. Read the full story?here.
• Tractable’s top 3 transformation trends for 2023?- The past year was a time of transformation and technology adoption across the insurance sector. This year, industry leaders are facing new challenges. Read the full story?here.
• Pet care app Fluffy raises $450k ahead of insurance launch?- Pet care app Fluffy, which helps owners find insurance for their furry friends, has reportedly raised $450,000 in its pre-seed round. Read the full story?here.

WealthTech news

• Is the UK at risk of losing its leading position in open banking??- A new report has claimed that the UK could lose its position as the global leader in open banking unless drastic action is taken. Read the full story?here.
• WealthTech startup beatvest closes €1.3m round?- WealthTech startup beatvest, a mobile app designed to help people get involved with investing, has reportedly collected €1.3m in seed financing. Read the full story?here.
• Digital bank Zopa nets ￡75m to support M&As?- Digital bank Zopa has raised ￡75m from existing investors to support the next stage of its growth, which includes M&A activity. Read the full story?here.

CyberTech news

• Cloud data security firm Sentra nets $30m?- Sentra, a cloud data-focused security company, has scored $30m in a Series A funding round led by Standard Investments. Read the full story?here.
• Cybersecurity startup Peris.ai backed by East Ventures?- Peris.ai, Indonesian-based cybersecurity as a service startup, has raised funding in a round led by East Ventures. Read the full story?here.
• Gem Security rakes in $11m following stealth period?- Gem Security has emerged from a period of stealth, launching its Cloud TDIR platform and landing $11m in seed funding from Team8. Read the full story?here.

Don't Miss Out - Financial Services CyberTech Forum will be hosted on 21st February 2023!

We are excited to announce that the?CyberTech Forum?is returning again for its 4th annual edition as a physical event. Find out more?here.

ESG FinTech new

• Greenspark lands ￡1m to aid firms measure climate action?- Greenspark, a firm that encourages businesses to take climate-friendly actions, has scored ￡1m in a seed funding round. Read the full story?here.
• Fujitsu, Mizuho Bank partner to improve ESG data?- Fujitsu and Mizuho Bank have collaborated to focus on the development of services for corporate customers to manage ESG and SDG related data. Read the full story?here.
• Sunstone Credit lands $20m to help businesses go solar?- Sunstone Credit, a technology-enabled clean energy financing platform that helps businesses go solar, has raised $20m in an oversubscribed Series A funding round. Read the full story?here.

Other FinTech news

• Will BNPL thrive or fail in high interest, high inflation market??- Buy now, pay later (BNPL) providers have thrived in a low interest and inflation market. As the market shifts the other way, will BNPL be in a fight for survival? Read the full story?here.
• Why sanctions screening is crucial for FinTechs?- Following the invasion of Ukraine, financial institutions have seen a tidal wave of sanctions. Implementing strong sanctions screening tools enables FinTechs and neobanks to bolster their market reputation. Read the full story?here.
• Consumer don’t trust open banking, research reveals?- The majority of consumers do not trust open banking with their financial data and are cautious about how their data is used, recent research has revealed. Read the full story?here.?