Financial Innovation Roundup e38: week of Nov 19 - 25, 2023
Here are my top 21 stories about financial services innovation from the past week.
#industryinsights
Each week the US records the most FinTech deals, often accounting for more than half of deals recorded on any given week. However, with the Thanksgiving break, the US was notably quiet with just one deal closed.
Without the US, it meant it was a very small week for FinTech. There were just 14 deals closed and a total of $103.5m was raised. To compare to the previous week, there were 24 reported funding rounds, collecting a total of $762m. Even more shocking is how strong November started, with the first week seeing $1.3bn raised across 27 deals. One thing both of these week’s had in common was a strong performance from the US in terms of deal activity.
Back to this week’s funding rounds, the UK took the top spot for deals and funding. It housed five deals and accounted for $50.6m of the total capital invested during the week. UK-based marketplace lending company TRIVER housed the biggest deal, attracting $25.2m to support its short-term working capital loans.
The other UK-based companies securing funds this week were PayTech Crezco, WealthTech DoorFeed, RegTech Smarter Contracts and WealthTech WealthOS.
2.???? Government of Canada : Fall economic statement highlights action on consumer-driven banking, payments modernization and pension fund investments within Canada
Along with a summary of the overall Economic environment and outlook, the 2023 Fall Economic Statement provides some updates that are relevant to innovation in the financial services space:
Consumer-driven Banking (Open Banking): the federal government will introduce legislation through Budget 2024 to establish a consumer-driven banking framework that would regulate access to financial data. This framework will ensure that Canadians and small businesses have safe and secure access to financial services and products that help them manage and improve their finances.
Payments Modernization: ?the government’s intention to amend the Canadian Payments Act to expand membership eligibility in Payments Canada to payment service providers supervised by the Bank of Canada, credit union locals that are members of a credit union central, and operators of designated clearing houses. This modernization will allow for lower transaction costs and faster, more secure payments for Canadians.
In the dynamic landscape of today’s wealth sector, artificial intelligence (AI) stands as a pivotal force of change. This transformative era marks the confluence of traditional practices and legacy systems with AI’s cutting-edge capabilities, presenting a unique blend of challenges and opportunities for wealth management.
IntellectAI, a developer of wealth management solutions, is hosting a new webinar. The discussion delves into the role of AI in modern wealth management, highlighting its potential to redefine financial advisory services.
It explores the integration of AI in the sector, emphasizing its impact on hyper-personalization, hyper-automation, and enhancing customer experience. The focus is on understanding AI’s capacity to revolutionize the WealthTech domain, balancing technological advancements with the essential human element in wealth management.
The webinar will offer in-depth insights into the trends shaping wealth management and the role of AI in this evolution, a preview of IntellectAI’s Generative AI-led capability, the Financial Advisor Copilot, and a way to interact with experts.
#artificialintelligence #ai #dataanalytics
For the second year in a row JP Morgan has topped the Evident AI Index ranking for the development, adoption and commercialisation of artificial intelligence among banks globally.
Among the four metrics measured by Evident, JP Morgan came first for innovation (published research and patents) and transparency (efforts to reinforce responsible AI practices across the bank), while slipping to second place for talent and leadership in its public communications.
In second place this year came credit lender Capital One and the Royal Bank of Canada came in third place, with both performing strongly across all of the index’s metrics.
?#blockchain #crypto #cbdc
Binance chief Changpeng Zhao stepped down and pleaded guilty to breaking U.S. anti-money laundering laws as part of a $4.3 billion US settlement resolving a years-long probe into the world's largest crypto exchange, prosecutors said on Tuesday.
The deal, which will see Zhao personally pay $50 million US, was described by prosecutors as one of the largest corporate penalties in U.S. history. It is another blow to the crypto industry that has been beset by investigations and comes on the heels of the recent fraud conviction of FTX founder Sam Bankman-Fried.
?But several legal experts said it was a good outcome for Zhao, leaving his vast wealth intact and allowing him to retain his stake in Binance, the exchange he founded in 2017.
Binance broke U.S. anti-money laundering and sanctions laws and failed to report more than 100,000 suspicious transactions with organizations the U.S. described as terrorist groups, including Hamas, al-Qaeda and the Islamic State of Iraq and Syria, authorities said.
6.???? WonderFi acquires Bitvo : Announces Acquisition of Bitvo Client Accounts and Bitvo.com
WonderFi Technologies Inc. announced that its wholly-owned subsidiary Bitbuy Technologies Inc. has purchased all of the client accounts of Bitvo Inc, and the Bitvo.com domain. Bitvo is a crypto-trading platform based in Calgary, Alberta that is registered as a restricted dealer with the securities commissions in all provinces and territories in Canada.
Bitbuy has acquired the 17,000+ registered client accounts of Bitvo, that have generated over $235 million in trading volume, and over $1.5 million in net revenue during the past twelve-months. Additionally, in October 2023, Bitvo generated over $35 million in trading volume, and approximately $375,000 in net revenues.
The Transaction was completed by way of an asset purchase agreement.
A class-action lawsuit has been filed against Apple, accusing the company of being part of a conspiracy. The lawsuit suggests that Apple is intentionally limiting peer-to-peer payment options and blocking the smooth integration of crypto tech in iOS payment apps.
Customers of Venmo and Cash App filed the suit on November 17 in a California District Court, alleging anti-competitive agreements with major payment platforms like PayPal’s Venmo and Block’s Cash App.
The lawsuit argues that Apple has restricted the use of decentralized cryptocurrency technology in payment apps, resulting in users facing “rapidly inflating prices.” The 58-page document carefully details the evolution and history of peer-to-peer payment apps and decentralized cryptocurrencies, highlighting Apple’s role in shaping this landscape.
#digitalbanking
EQ Bank (Banque EQ in Québec) is offering Québec customers a new way to earn, save and spend their money, with the introduction of its popular EQ Bank Card1?(Carte Banque EQ). Customers can use the card to withdraw cash for free at any ATM in the country, earn cash back on their spending, earn high interest on their card balance, and travel without paying foreign currency conversion fees.
EQ Bank Card customers are actively using it every day and across more than 140 countries (20% of total card transactions are international). Since launch, EQ Bank customers most commonly use the card for everyday transactions such as buying gas, groceries and dining out.
9.???? BMA Banking Selects @Bankjoy: as a Preferred Provider for Online & Mobile Banking?
BMA Banking Systems, a provider of core banking software and services to independent-minded community financial institutions, has selected Bankjoy, a leading digital banking provider as a preferred partner for online and mobile banking.
?Through the partnership, BMA’s bank and credit union clients can enhance the digital banking experience for their customers and members with Bankjoy’s award-winning platform. BMA selected Bankjoy as a preferred partner following a rigorous vetting process, as the company sought a trusted digital banking partner whose technology aligned seamlessly with the needs of BMA’s new and existing client base.
#digitalwealth ?#wealthtech #investing
10.? LIVO Financial partners with OneVest : Enabling Canada’s first Indigenous-focused robo-advisor
LIVO Financial, in collaboration with OneVest, is a digital wealth platform that’s an alternative to investing with the big banks. LIVO, in collaboration with OneVest can now offer you a financial services solution through customizable portfolios at a fraction of the fees traditionally charged by banks.
This transformative approach democratizes wealth management by making it accessible to a broader audience, and all within a delightful digital client experience.
Prior to the launch, CEO and Founder, James Russell , commented on LinkedIn:
I am thrilled to announce the upcoming launch of Canada's very first Indigenous-focused robo-advisor next week! For those who know me, it's no secret that I take immense pride in my Metis heritage and have always been passionate about helping others in the realm of finance and financial education.
My journey led me to create something meaningful and impactful, a tool designed to empower people in managing their finances. I decided to concentrate on serving the Indigenous community for several compelling reasons:
1.I have recently felt a strong calling towards Indigenous peoples, a group with whom I share ancestry as a proud Metis citizen. Historically, they have been underserved, particularly in the field of finance.
2. There is a pressing need for financial products tailored specifically for Indigenous individuals, products that can help them maximize their financial potential.
3. We aim to provide digital-first, easily accessible products that promote financial literacy on a scalable platform, ensuring financial education is available to all.
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eToro, the trading and investment platform, has launched XtremeWeather, a new portfolio providing retail investors with exposure to companies that are well placed to meet the challenges posed by soaring incidences of extreme weather events.
With NASA declaring that last summer was Earth’s hottest on record*, the impact of extreme weather conditions on our planet and daily life is becoming increasingly evident. Such events, which are severe and unusual meteorological phenomena, deviate from average weather patterns and include: hurricanes, wildfires, droughts, floods, heatwaves, and more.
The XtremeWeather portfolio comprises 30 stocks from key industries such as renewable electricity, industrial machinery, supplies and components, fertilizers and agricultural chemicals, retail home improvement, electrical components and equipment, and gas, that are at the forefront of supporting recovery and normalisation following extreme weather events. To construct this portfolio, the team evaluated thousands of stocks, ranking them based on criteria including market capitalization, ESG score, liquidity parameters, analyst rankings, and trailing 12-month sales growth.
Maybank Group has officially launched its Islamic Wealth Management (IWM) regional offshore hub in Singapore. This marks a significant expansion of the group’s Islamic wealth services, which previously operated primarily in Malaysia and Indonesia.
Maybank Singapore claims that it is the first bank in the city-state to provide comprehensive Islamic wealth management solutions.
These services cater to various customer needs, including wealth transfer planning for future generations, and encompass five key areas; wealth creation, accumulation, preservation, purification, and distribution.
The increasing demand for sustainable and values-based investment options, such as those offered in Islamic wealth management, is attracting a diverse client base.
#esg #sustainability #climatetech
13.? Mashreq partners with Visa and ecolytiq : on climate banking platform
Mashreq, a leading financial institution in the MENA region, in partnership with Visa and ecolytiq, is announcing the roll out of its new climate banking platform to its nearly one million customers – a first of its kind product in both the UAE and in the MENA region overall.
Mashreq customers will receive access to a host of value-added features that will help them take control of their personal environmental impact. The climate banking platform overlays carbon emissions calculations seamlessly onto transaction data, giving customers more transparency on their spending. With advanced carbon footprint analytics, the platform then personalizes climate insights to customers to educate and encourage climate action. These products are designed to promote climate-positive behaviors while delivering tangible impact for Mashreq customers.
The Eco Benefits Bundle, which launched by Visa and ecolytiq in the UAE earlier this year, combines the payments capabilities of Visa with the sustainability expertise of ecolytiq to help financial institutions address the growing demand from banking customers. Mashreq marks the first implementation of the environmental solution in the region.
This collaboration is another step in Mashreq’s ambitious climate commitment, one that strives to offer customers climate-focused products, helping them reach their own sustainability goals and contribute to the environment. The launch comes at a pivotal moment for sustainability in the region, as Dubai hosts the global climate conference, known as COP 28, of which Mashreq is an official sponsor. This comes off the heels of a summer of scorching heat across the globe, with July 2023 having been the hottest month on record to date.
ESG Book, a leading sustainability data and technology company, has recently stepped into the spotlight with its groundbreaking initiative.
According to ESG Today, the launch of ESG Book’s new tool, Risk Score, marks a significant advancement in the realm of environmental, social, and governance (ESG) analysis. This tool represents the company’s response to a growing need for comprehensive and accessible methods to assess corporate exposure to crucial sustainability issues.
ESG Book has established itself as a prominent player in the FinTech industry, focusing on delivering advanced, technology-driven solutions for sustainability data management. Their mission revolves around empowering investors and corporations with accurate, real-time ESG data for informed decision-making.
Risk Score, the latest addition to ESG Book’s product suite, offers a unique approach to evaluating company exposure to ESG concerns. It leverages over 200 metrics and covers more than 10,000 companies, providing in-depth analytics on adherence to the UN Global Compact (UNGC) principles. This tool is a game-changer for both investors and corporates, offering detailed insights and historical data for robust risk analysis.
#openbanking
15.? Caspian One partners with Large Credit Union Coalition (LCUC) : Open Banking Platform for Credit Unions
Following a rigorous RFP process spearheaded by the LCUC CIO group, Caspian One was selected as the preferred partner to deliver an Open Banking solution tailored to the credit union system in Canada.
As a result, a collective of 10 large credit unions, comprised of both LCUC and non-LCUC participants, have committed to partnering with Caspian One to develop a customized version of their Open Banking platform that meets the unique needs of the credit union system. Among these committed credit unions are prominent names such as Affinity, Cambrian, Coastal Community, First West, Gulf & Fraser, Libro, Meridian, Prospera, and others, reflecting a diverse and geographically widespread presence across the country.
Notably, Caspian One is an independent organization, with extensive experience implementing solutions in markets with existing Open Banking regulation, such as the UK, Australia, and Brazil, and has developed a solution for a large bank in Canada.?
Credit unions of all sizes are invited to join this collaborative effort and leverage the Caspian One platform.
Open Banking payments are growing exponentially and creating better consumer experiences in many industries. Plaid is delighted to announce that PokerStars, one of the world's leading online poker platforms, has partnered with Plaid to enhance the player experience globally by making it easier for players to authenticate their bank accounts and move money in and out of their PokerStars account.
Starting today, UK users can “Pay by Bank” using Plaid’s Payment Initiation Service (PIS) technology to quickly and securely fund their account. Players can also withdraw funds instantly with Plaid’s Payouts technology. Pay by Bank will allow players to seamlessly make payments directly from their bank accounts
London-based open payments gateway Volt has launched in Australia, integrating with the country's PayTo platform.
Founded in 2019, Volt offers seamless access to Open Banking payments in Europe, connecting over 5000 banks across the UK and EU, bringing together a new generation of account-to-account payments infrastructure to a single point of access.
Having already established itself across the UK and Europe, Volt entered the South American market via Brazil in 2021.
Now it has set its sights on Australia, integrating its gateway with PayTo, a digital platform that enables consumers to authorise and control payments directly from their bank account. The first merchant in Australia to integrate Volt’s technology is ticketing platform Megatix.
#payments #spending #borrowing
?koda is expanding its digital services to include Pay to Fuel in collaboration with our partner organisation Parkopedia, who ?koda also works with for the existing Pay to Park service.
The new Pay to Fuel service makes paying after refuelling quicker and more convenient for ?koda drivers, with motorists able to save time by paying directly through the car’s infotainment system. This service is now available in six European countries, (a current list is available here), with plans to include more countries and fuel stations in the future.
The stations supporting Pay to Fuel are listed in the in-car navigation. After choosing one of these, the vehicle automatically recognises the fuel station upon arrival. The driver opens the app on the vehicle’s display, confirms the petrol station and enters the pump number. After refuelling, the amount of fuel is confirmed on the infotainment screen and the payment is processed via debit or credit card. All common cards are accepted. The driver then receives a transaction notification in the My?koda app and on the vehicle screen and can pull away.
Britain needs a "digital alternative" to relying on Visa and Mastercard for card payments regardless of steps being taken by regulators, a report commissioned by the government said on Wednesday.
The conclusions of the Future of Payments Review echo longstanding complaints across Europe about heavy reliance on the American duo for card payments, though calls and attempts to create a 'home grown' alternative have made little progress.
#smallbusinessbanking
20.? Vault : Enables Canadian Businesses to Automate Accounts Payable with Release of New Transfer Approvals Feature
Vault, the leading digital financial platform for Canadian Businesses, released their Transfer Approval feature designed to help business owners save time and empower their teams. This addition provides owners complete flexibility in managing their Accounts Payables (AP) process, with enhanced control and visibility into payments.
Vault's Transfer Approval feature addresses the challenge of managing bank transfers within a growing, multi-user organization by offering owners the ability to set explicit limits on the funds their employees are authorized to transfer. Using Transfer Approvals, admins can review and approve or reject transfers before they are processed, effectively aligning spend to company policies.
Findity, the leading provider of expense management technology, is proud to announce the launch of its revolutionary solution, the Expense API.
This groundbreaking technology empowers businesses to leverage Findity's platform and seamlessly integrate tailored expense management functionality into their existing software suites.
Findity’s Expense API allows companies to directly embed expense management capabilities into their apps and web clients, avoiding the significant time and costs required to develop such functionality from scratch.
The Expense API provides direct access to Findity’s comprehensive expense management platform, complete with all its functionalities, card integrations, financial software connections and more. Not to be confused with other expense management APIs in the market, which purely send expense data to other software.
Owner, Funk Auto Consulting Ltd
4 个月https://www.facebook.com/COBNMUSA/posts/pfbid02AYjNuTZnP3foWkBrNoVQWcaRrbUxtnfEijXEYDiEVGWDAY81TqYUwTDRKFj4Jzzvl
Wow, your roundup captures the dynamic nature of FinTech perfectly! ?? As Steve Jobs once said, “Innovation distinguishes between a leader and a follower.” Your insights position you as a true leader in understanding these shifts. ?? For those innovating towards a greener future, Treegens is sponsoring a Guinness World Record attempt for Tree Planting that might intrigue your environmentally conscious readers. ?? Check it out: https://bit.ly/TreeGuinnessWorldRecord
Founder | Economic Inclusion Advocate | Helping Indigenous Communities Build Generational Wealth
1 年Thanks for giving LIVO Financial a shout out!