December Newsletter

Welcome to the Five Degrees Fintech Newsletter!?????

Join us as we delve into the ever-evolving world of financial technology, including the exciting realm of core banking. Stay informed about the latest trends, insights, and news shaping the fintech and core banking landscape. From disruptive innovations to market analysis and thought leadership, our newsletter is your go-to resource for staying ahead in the dynamic world of fintech and core banking. Let's explore the future of finance together! ????

Dutch regulator calls for sustainability impact disclosures for all financial products?

The Dutch Authority for the Financial Markets (AFM) is pushing for a revamp of the EU's Sustainable Finance Disclosure Regulation (SFDR), urging the removal of Article 8 and 9 classifications and the introduction of a new sustainable investment labeling system. The AFM proposes that all financial products, irrespective of sustainability features, provide disclosure on sustainability impact. The recommended labels, including "Transition products" and "Sustainable impact products," come with specific quality requirements. Read more. ?

EU agrees game-changing deal for instant payments.?

In a groundbreaking move, the European Council and Parliament have agreed to mandate banks to offer free instant euro payments and provide non-bank entities and fintech firms direct access to central bank payment systems. This historic decision aims to enhance competitiveness and reduce dependence on traditional banking. The agreement includes measures for increased trust and will be implemented in phases, starting with a shorter transition period in the euro area, though it poses significant challenges for banks in meeting the ambitious timelines. Read more. ?

EC makes supercomputers widely accessible to foster AI development ?

The European Commission, in partnership with EuroHPC JU, is granting startups, SMEs, and the AI community access to the EU's top-tier supercomputers, including LEONARDO, LUMI, and MareNostrum5. This initiative aims to accelerate the development of foundational AI models and solidify Europe's position as a global AI leader. President Ursula von der Leyen highlighted the responsible use of AI, announcing regulatory changes for secure access to European supercomputers in the 2024 Commission Work Programme. Read more. ?

Commerzbank builds GenAI-powered virtual assistant?

Commerzbank is partnering with Microsoft to introduce an AI-driven virtual assistant, utilizing generative AI and avatar technology in its mobile app. Powered by Microsoft Azure OpenAI Service, the avatar will engage in natural conversations with Commerzbank's customers, providing general information and personalized advice. J?rg Oliveri del Castillo-Schulz, COO at Commerzbank, sees the Avatar project as a significant advancement in the bank's digital strategy, enhancing customer interface and banking processes. Read more. ?

We've touched on regulatory changes before, but it's essential to highlight how core banking platforms, like Five Degrees', actively contribute to lenders staying complaint.

Navigating Data Compliance: The Role of SaaS Core Banking Solutions?

In the ever-evolving digital landscape of SME lending, the complexities of data compliance remain a concern for lenders. To delve into this issue, we explore the broader landscape of compliance and regulatory frameworks, shedding light on the?software guidance?to navigate this intricate terrain.?

At the forefront of data compliance considerations lies the General Data Protection Regulation (GDPR), a comprehensive framework that safeguards personal information across the European Union. Lenders and SaaS providers alike must navigate a web of legal requirements established not only by GDPR but also by individual countries within the EU. The challenge is not confined to GDPR; it extends to encompassing various regulatory requirements set forth by different countries. As SME lenders strive to ensure compliance, they must grapple with legal landscapes, necessitating an innovative software approach. ?

The role of SaaS core banking solutions becomes pivotal. These solutions, like the one offered by Five Degrees, aim to facilitate compliance for banking and lending institutions. Beyond product-specific measures, the industry is witnessing a shift towards adopting robust?SaaS solutions to address compliance challenges. For example, confidentiality, Integrity, and Availability (CIA) model, external audits (e.g., ISAE 3402), encryption, and real-time tracking/reporting collectively ensure robust data compliance for SME lenders with the use of SaaS technology.?

Emphasizing shared responsibility, SME lenders and SaaS providers collaboratively play roles in data security.?

Delve deeper into this subject through an exclusive interview with our Head of SaaS.?

Watch the full interview here.

?? Five Degrees: Highly commended for Best Challenger Core Banking System.?

Reflecting on a remarkable night at the Banking Tech Awards in London!?

On the 30th of November, Five Degrees was in the spotlight as we proudly stood as finalists for two prestigious awards. Our dedication to innovation earned us the highly commended award for Best Challenger Core Banking System, a testament to our commitment to reshaping the banking landscape.?

?? The event buzzed with energy as industry leaders, innovators, and pioneers gathered to celebrate the cutting-edge advancements defining the future of banking tech.?