Despite the tough market, France's FinTech deal activity drops by just 13%

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Talk of artificial intelligence was once an exciting prospect. The idea of bringing a hallmark of sci-fi fantasies into the real world sparked a lot of enthusiasm. While systems might not quite be on the same level as HAL from 2001: A Space Odyssey, the technology has brought a lot of changes to how businesses operate.

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Research highlight

French FinTech remains resilient in 2022 with activity only dropping 14%

? French FinTech companies announced 36 deals in Q4 2022 which brings the country’s total for the year to 167 deals. FinTech Investment in the country set new records during 2022. French companies in Q4 raised $1.49bn pushing the years total to $4.9bn, increasing 44% from 2021 levels.?

? Qonto, an all-in-one bank account for SMEs, was the largest French FinTech deal in 2022, raising a huge $552m in their latest Series D funding round led by TCV and Tiger Global Management which brought the company’s valuation to $5bn. The capital will be used to expand the company’s product offerings, strengthen market presence in Germany, Italy, and Spain, and new market entries as well as quadruple the headcount to over 2,000 employees by 2024.

? New French FinTech legislation relating to Crypto will go into affect on 1st Jan 2023. France has implemented a specific tax framework for crypto assets via The 2022 Finance bill. Capital gains on crypto-assets will be taxable as non-commercial income for those not managing personal wealth. For individuals exchanges between “qualifying” crypto-assets are tax-neutral. However, taxation is levied at a flat 30% rate upon the conversion of a “qualifying” crypto-asset to fiat money.

Read more of our research here.

Weekly FinTech deal roundup

2023 starts slow for FinTech investments with 14 deals recorded - As the new year gets underway, there were few FinTech funding rounds to report on in the first week of 2023, with a smattering of investments made.

Read the full story here.

RegTech news

• 10 best risk management practices - As the risk landscape continues to grow in complexity, it can be hard to implement the best management processes. Diligent has outlined ten best practices for third-party risk management. Read the full story here.
• How to ensure security with collaboration software - Hybrid work has split teams across multiple locations, but teamwork and collaboration are still the core of any organisation. The speed information can be shared across an organisation can make or break the company. Read the full story here.
• Can Google search strings ease adverse media screening - Adverse media is becoming increasingly important to compliance processes. With so much to check, Sigma Ratings has posed the question of whether Google search strings can make things easier. Read the full story here.

Don't Miss Out - AML & FinCrime Tech Forum will be hosted on 31st January 2023!

Join us at the 3rd annual AML & FinCrime Tech Forum to learn about the latest frauds and threats in financial services and how financial institutions are partnering with tech companies to combat them. Find out more here.

InsurTech news

• Booming pet technology presents opportunity for insurers, Cloud Insurance says - With the recent boom in pet technology, the pet insurance market represents an exciting opportunity for insurers. According to Cloud Insurance, pet technology is booming.?Read the full story here.
• Duck Creek to acquire payments platform Imburse Payments - Duck Creek Technologies, an intelligent solutions provider to the property & casualty (P&C) insurance market, is to acquire Swiss-based payments platform?Imburse Payments. Read the full story here.
• Allianz Partners joins forces with Running USA to protect runners - Allianz Partners USA,?a provider of travel protection and consumer specialty insurance, has partnered with?Running USA?to support the growth of the running industry. Read the full story here.

WealthTech news

• Banking-as-a-service (BaaS) vs embedded finance - Banking-as-a-service (BaaS) and embedded finance have become two of the biggest buzzwords/solutions. However, there seems to be a confusion about how they differ from one another. Read the full story here.
• Brokerage-as-a-service platform Bricknode secures SEK 2.5m loan - Bricknode, a brokerage-as-a-service platform, has secured a SEK 2.5m ($2.3m) loan from its founder and co-CEO Stefan Willebrand, co-CEO Erik Hagelin and Chairman Robert Lempka. Read the full story here.
• FTX’s Sam Bankman-Fried reportedly pleads not guilty - FTX founder Sam Bankman-Fried has reportedly pleaded not guilty to charges alleging he defrauded customers. Read the full story here.

CyberTech news

• How a data-driven approach can help against financial crime - In a world that is becoming more digitalised, financial crime is growing to become an even bigger challenge than in the past, with new avenues opened for threat actors. Read the full story here.
• Why cybersecurity is so important for financial institutions A recent whitepaper by cybersecurity firm Yobah has explored the importance of cybersecurity and threats for financial services firms. Read the full story here.
• New Twitter scam is stealing cryptocurrency - A new spam campaign is spreading across Twitter and is stealing cryptocurrency of affected users. 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

• How firms can address and mitigate shareholder activism risks - A key trend across both 2021 and 2022 was the rise of shareholder activism in the world of financial services. While 2021 was a boon year for activists, 2022 fell short of the mark. Read the full story here.
• How a better governance approach can help avoid ESG lapses - With the rise of ESG meaning companies have more eyes on them than ever to make positive differences, it can be tough to be able to meet all these governance standards without occasionally lapsing. Read the full story here.
• Singapore hires first ever government chief sustainability officer - Singapore has appointed Lim Tuang as its first ever government chief sustainability officer to drive the government’s sustainability efforts. Read the full story here.

Other FinTech news

• Top FinTech mergers & acquisitions in 2022 - Despite the tough market, there were still some notable mergers and acquisition deals completed in FinTech during 2022. Here are five of the biggest. Read the full story here.
• Are physical wallets sliding into irrelevancy? - Over half (51%) of people in the UK think physical wallets will become less relevant as digital payments continue to grow, according to new?Mastercard?research. Read the full story here.
• Northstar Group holds first close for new fund aimed at Indonesia - Singaporean venture capital firm Northstar Group has reportedly hit the $90m first close for its fund with a brand-new investment strategy. Read the full story here.