Could the IPO market be back with vengeance?
Happy Monday Fellow FinTech Fanatic,
After a devastating 2022, at least from a FinTech-perspective, there are tentative signs the IPO market could be back with vengeance.
Last week, research by Reuters indicated the market has seen the best week for IPOs in 15 months.
It started a couple of weeks ago with Stripe, hinting on an IPO within the next 12 months. Shortly after Atom Bank’s CEO Mark Mullen confirmed the neobank was gearing up for a London listing this year.
And just last week news came out that investment banks have been in talks with British FinTech unicorn Monzo over a future IPO, sources told Insider.
The rumours aren’t that surprising though, as Monzo announced just last month revenues surged more than twofold in 2022, setting it on course to achieve annual profitability by the end of 2023.
Nonetheless, according to people familiar with the matter, the pitches are at an exploratory stage with the neo-banking app unlikely to go public until late 2024 or early 2025 at the earliest.
Do you think this shows the IPO market could be back with vengeance? Feel free to share your thoughts in the comments below.
To stick to the banking-scene. Rival challenger Revolut, which ruled out an IPO in 2022 amid poor market conditions, announced the launch of an in-app cashback feature.
The new service, ‘Shops’, lets users search and browse products from leading brands within the Revolut app.
Another step in becoming a global financial superapp for customers’ everyday financial needs.
It proves once again that we’re in an evolving market, where each FinTech in its own way looks for opportunities to expand their footprint and dominate the market.
Wish you a nice week ahead, and please find the other FinTech news I have selected for you below??
NEWS HIGHLIGHT
Plaid launches portal to ease access to cybersecurity-related information. The firm has launched a public-facing portal called Security Portal that existing and prospective customers and partners can use to access information they need to make informed decisions during procurement and at other times.
#FINTECHREPORT
Check out “The opportunities of Banking as a Service,” by Mastercard. This report aims to guide banks and FinTech companies in their business decisions as providers and distributors of BaaS.
INSIGHTS
You can’t miss Heyday for FinTech In India, an informative and comprehensive blog post by C-Innovation about FinTech evolution in India.
Kenyan FinTech sector sets new record in 2022 with $158m capital raised. Kenya had a great 2022 with both investment and deal activity setting a new record for the country, according to FinTech Global. Read more here
FinTechs struggle to retain consumer trust in Africa. In this article, PYMNTS interviews Isaac Kamuta as he analyzes how regulation plays a key role in customers’ trust in the FinTech space.
What are the unique challenges faced by FinTech data teams? This detailed blog post explores how challenges faced by fintech teams can be seen through different lenses. Read the full blogpost on this topic here
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FINTECH NEWS
PayU secures Indian merchants with 3DS 2.0 SDK authentication. PayU's lightweight 3DS 2.0 SDK provides lower latency and a 40% reduction in checkout time. This EMVCo certified offering has been developed by PayU in collaboration with Wibmo, a PayU owned full stack global paytech company.
DIGITAL BANKING NEWS
Belvo taps Open Finance to improve bank-to-bank payments in Colombia. The Open Finance platform has launched a new solution that aims to improve the user experience offered by merchants and fintechs using Pagos Seguros en Linea.
Australia should learn from UK’s Open Banking Implementation Entity, NatWest and NAB agree in a joint whitepaper, which has called on both countries to learn from each other’s open banking implementations. Australia should “mirror” aspects of the UK’s Open Banking Implementation Entity (OBIE) as the most effective way of bringing industry and regulators on the same page, the whitepaper argues.
Barclays Eagle Labs wants to support UK tech. The bank intends to allocate a “big chunk” of the ￡12 million Digital Growth Grant toward the UK’s tech industry. Link here
Wells Fargo lays off hundreds of its mortgage bankers. The layoffs impacted some of the bank’s top performers, CNBC says. In an email, a Wells Fargo spokesperson tells FinTech Futures that the “displacements” are part of strategic plans announced in January to create “a more focused” and simplified home lending business.
BLOCKCHAIN
U.S. regulators warn banks of heightened liquidity risks in crypto-related deposits. A trio of regulators including the Federal Reserve warned banks to be mindful of liquidity risks related to cryptocurrencies, the latest move by U.S. officials to limit the economy’s vulnerability to the tumultuous market.
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M&As
Airtel eyes a stake in Paytm. Airtel is engaging with Paytm to explore sale of the Airtel Payments Bank business in exchange for shares in the younger financial services firm, according to two people familiar with the matter, in a move that can be seen as the telecom giant conceding the payments market.
PARTNERSHIPS
Clarency taps Form3 for access to Swift network. With the new partnership Clarency’s international customers, which comprise financial institutions, challenger banks, remittance firms and small businesses, will be able to send and receive international payments on the Swift network.
Associated Credit Union of Texas adopts BNPL functionality through equipifi deal. Equipifi stated that the partnership represents “the first time” that credit unions have been given the opportunity to confirm eligibility through data from the banking core while offering BNPL to debit-cardholders through a digital banking app at the same time.
Funding Circle partners with Sage. Through this collaboration, SMBs will have the possibility to secure funding in a simple, secure, and effective way. Companies will also be allowed to use the integration of Sage Accounting and Funding Circle’s API, which will enable them to apply for loans and manage their cash flow more quickly.
#DONEDEAL
Investment platform Sprout scores $1m pre-seed. The round included a selection of family offices and angel investors. The company intends to use the newly raised capital to scale its platform and continue to accelerate growth. Link here
MOVERS & SHAKERS
American Fintech Council appoints Phil Goldfeder as CEO. In his new role, Goldfeder will be tasked with leading the AFC’s mission to “promote responsible innovation and inclusivity” within financial technology services.
RTGS.global CEO Dave Sissens steps down, Jarrad Hubble appointed interim CEO. Sissens will continue working for the firm as a part-time advisor and help with the transition to a new leadership. Hubble will work under the guidance of the board and lead the company’s commercialisation, sales and client engagement functions.
Varo Bank names Wook Chung chief product officer. In his new role, Chung will spearhead Varo's product vision and strategy initiatives and will be a key leader in Varo Tech, the innovation engine of the company which brings together product, technology, data and design.
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Cheers,
Marcel van Oost
Connecting the dots in FinTech