Financial Innovation Roundup e50
Here are 18 news stories you don’t want to miss from financial services last week (Feb 25 – Mar 2, 2024)
#industryinsights
As we roll into what is already the third month of 2024, the FinTech sector continues to go from strength to strength with the market seeing a steady stream of funding.
The strongest performing sector this week was in CyberTech, where six deals were recorded. Trailing this was InsurTech on four, FinTech on three, RegTech and AI on two, and WealthTech, PayTech and PropTech all bringing in one deal a piece.
Last week, news spread that Monzo Bank was targeting a ￡4bn valuation for it's next funding round, before eventually going public.
On another front, Revolut launched new Crypto functionality for advanced traders, a Robo-Advisor and also signalled the intent to launch AI-driven Bill Payment functionality for SME's later this year.
2023 was a challenging year for fintech funding, yet neobanks were relatively resilient with KOHO and bunq maintaining their valuation on new funding rounds.
Could all this signal more to come from neobanks in 2024?
Here's a sneak peek into my upcoming deep dive on the Top 10 most-funded, pre-IPO neobanks around the world. Stay tuned for more on how we got here and what's to come from Neobanks in 2024 and beyond!
Never sure where to put stories from NayaOne, because they transcend categories, by providing a sandbox for Fintechs and Financial Services firms across all categories. In any case, congratulations to the Team there on the new funding round!
In a significant move for fintech, NayaOne announces a $4.7 million funding round led by EJF Capital, with Valley Ventures, the corporate venture capital arm of Valley Bank and Carthona Capital also on board. This investment is a testament to NayaOne’s growth and potential to transform financial services with its innovative sandbox-as-a-service platform.
NayaOne’s proven platform enables a radical reduction in technology adoption cycles within the finance sector. Financial institutions can now swiftly navigate the fintech landscape, fostering partnerships that were once hindered by traditional, slow-moving processes. This is particularly relevant today, as a mere 5% of banks choose to develop tech in-house, highlighting the growing reliance on external fintech innovations for strategic advancements.
The timing of NayaOne’s platform aligns perfectly with the industry’s urgent shift towards digital transformation, offering flexibility and speed for revenue growth, customer retention, or crisis recovery.?
4.???? Abacus Data : Canada’s Financial Future: Insights into Financial Literacy, Banking Satisfaction, and Open Banking Adoption
The Insight for Startups:
Jargon doesn’t resonate with most Canadians. Most don’t know what Fintech or Open Banking is. See this again and again through research.
When we talk about the benefits these can provide to consumers, it gets slightly better; though still less than the majority.
It’s important to clearly define what problem you’re solving, for who, and how their life will change because of it.
Highlights
Digital Literacy: The results show that just 38% of individuals feel confident in their digital literacy. Moreover, the findings reveal a clear generational divide
Challenges: High fees (32%) and unfavorable interest rates (30%) emerge as the most significant concerns. Additionally, 17% of Canadians express frustrations over limited branch availability or hours, while 16% cite poor customer service and security concerns.
Open Banking: Canadians’ primary concerns revolve around data security (63%), privacy (62%), and the potential for unauthorized access (54%) as many individuals perceive their data to be more accessible and vulnerable through open banking solutions.
While open banking remains unfamiliar to many Canadians, its potential benefits are understood by some. It is important to note, however, that interest for the benefits of open banking is limited and most of the benefits don’t appeal to the majority of Canadians.
5.???? Summary of Bank Earnings in Canada
The large Banks in Canada reported their Q1 earnings last week. Click the bank name below for their news release.
#artificialintelligence #ai #dataanalytics
Klarna says its OpenAI-powered chatbot is doing the equivalent work of 700 full-time agents after its global launch last month.
The AI assistant, which Klarna says is on a par with human agents in regard to customer satisfaction scores, has had 2.3 million conversations, two-thirds of the firm's customer service chats.
The firm says the chatbot has led to a to a 25% drop in repeat inquiries and that customers resolve their issues in less than two minutes, compared to eleven minutes previously.
Available in 23 markets in more than 35 languages, Klarna anticipates that the bot will drive a $40 million uplift in profit.
?Themis continues to lead in applying innovative technology to the fight against financial crime, with the launch of a cutting-edge, AI-powered chatbot integration for its AML/KYC Platform.
Financial crime is one of the most serious threats to global economies. Around the world, more than a trillion dollars of dirty money are laundered each year to fund criminal organisations and terror networks. The danger of illicit finance, a toxic corrosive on the structure of global peace and security, cannot be overestimated.
But AI is also an essential ally in the fight against financial crime, as the latest blog from the Themis Insight team explains. Themis has long recognised the revolutionary potential of AI, using new possibilities offered by the technology to build, and continuously develop, its AML/KYC platform. By combining deep financial crime expertise with ambitious investment in AI technology, Themis has been able to develop a comprehensive, ever-improving anti-financial crime software.?
?#blockchain #crypto #cbdc
?Digital bank Revolut is set to introduce a cryptocurrency exchange targeting "advanced traders," according to a customer email seen by CoinDesk.
Revolut currently offers basic crypto services to many of its 30 million customers. The exchange will offer lower fees and enhanced market analytics.
"We're launching a new crypto exchange, built with advanced traders in mind," the email, which asked the customer to test the new platform, read. "You'll find deeper analytical tools and lower fees than the app."
领英推荐
#digitalbanking ?#neobank #challengerbanks
9.???? Synctera : Announces $18.6M Series A extension; Appoints New CRO, To Support Largest New Customers’ US Expansions
Synctera, a leader in embedded banking and finance, announced that it has raised an $18.6 million extension to its 2021 Series A round, with Lightspeed and Fin Capital co-leading alongside participation from other previous investors NAventures and Diagram. New investors include Banco Popular and Mana Ventures.
In March of 2023, Synctera announced a $15 million strategic investment led by NAventures, the corporate venture arm of National Bank of Canada, to expand its offerings into Canada, which was followed by its first Canadian customer launch in December 2023.
After a successful kickoff of its partnership with National Bank of Canada in 2023, NAventures has joined Synctera’s Series A extension.
Raqami Islamic Digital Bank has chosen Codebase Technologies to lead the launch of a new, cutting-edge, Shariah-compliant digital bank, based on the fintech’s proven track record of launching some of the MENA region’s most successful digital banks.
Raqami Islamic Digital Bank will leverage Codebase Technologies’ Digibanc platform as its comprehensive technology stack, including core banking. This collaboration marks a pivotal step into a new era of digital banking, with Raqami Islamic Digital Bank being one of only five recipients of an in-principle approval for establishing a digital retail bank from the State Bank of Pakistan.
#digitalwealth ?#wealthtech #investing
?Upvest’s plug-and-play portfolio engine offers an API-based and fully integrated portfolio infrastructure. It enables unique and scalable investment experiences for both Upvest’s clients and their end users.
At Upvest, we believe in simplifying the complex. The portfolio engine lets you access every aspect of your investments via a seamless API. That way you can empower your end users to create portfolios, place orders, and set up rebalancing strategies and portfolio savings plans in just a few clicks.
With Upvest’s API-first approach, you have automated monitoring of all processes related to your portfolio management. All information is exposed through webhooks which enable real-time access and full transparency in tracking the execution of orders, completion of rebalancing, and real-time performance insights.
12.? TIFIN and RBC : Expand Wealth Management Partnership
Tifin, a leading AI and innovation platform for wealth, announces a new phase of collaboration between TIFIN AG and RBC Wealth Management-U.S.?
All financial advisors at RBC Wealth Management-U.S. now have access to AI-Powered Insights, a new program that uses artificial intelligence to observe client behaviors and patterns to identify those who might have money in motion following a significant financial event. Started as a pilot program last August, AI-Powered Insights officially rolled out company-wide this week.
?#esg #sustainability #climatetech
BBVA, a leading global financial services company, has announced the launch of a new unit dedicated to financing cleantech innovation.
With a longstanding history of supporting technological advancement and sustainability, BBVA is positioned at the forefront of the financial industry’s efforts to combat climate change.
The creation of this new unit underscores BBVA’s commitment to fostering the development of clean technologies. According to BBVA Chair Carlos Torres Vila, the bank recognizes innovation as a crucial element in achieving decarbonization. He highlighted the significance of affordable clean technologies in driving the green industrial revolution.
#openbanking
14.? Wealthica : Launches New Transactions Features and Average Cost Base Calculator, Improving Capability for Tax Preparation Software
Wealthica, Canada's leading finance tracking app, is proud to announce the launch of new transaction rules features on its platform, designed to revolutionize the way Canadians manage their investment transactions and streamline tax preparation processes, as well as managing the important metric of average cost base of your investments.
With this latest update, Wealthica users gain the ability to set rules to automatically edit transactions, providing unprecedented control and customization over their financial data. These rules empower users to categorize, modify, or annotate transactions based on their specific preferences and requirements, ensuring accuracy and efficiency throughout the tax filing process.
US-based account-to-account (A2A) payment solution Dwolla has launched ‘Open Banking Services’ to further bolster its A2A payment offering.
These new built-in Open Banking integrations provide “essential functionalities”, such as instant account verification, balance checks, and fraud mitigation, all via Dwolla’s single API.
#payments #spending #borrowing
Calgary-based FinTech startup Helcim has closed $27 million CAD ($20 million USD) in Series B financing.
The funding round was led by Headline, a San Francisco-based venture capital firm, with participation from new investors Clocktower Ventures, Vesey Ventures, and SilverCircle, as well as returning investors Information Venture Partners and Aquiline Technology Growth.
Founded in 2008, Helcim offers a suite of payment solutions to traditional small to medium-sized businesses, such as home-services businesses, retail merchants, auto-repair shops, and health-care clinics. The startup’s product suite includes point of sale, invoicing, online checkout, debit and credit cards, and a payments terminal, among other services.
Helcim is looking to fill what it sees as a gap for Main Street businesses, which often deal with high average order values (which measure the average amount of money each customer spends per transaction), lower digital payment penetration, and tighter working capital needs.
US-based payment technology provider Finix has made its unified payment offerings available in Canada, marking its first international launch.
Finix’s entry into Canada has been made possible via a partnership with Peoples Trust Company, which is part of Peoples Group.
“Finix’s end-to-end solution enables businesses, from startups to publicly traded companies, to process payments, send money, and manage their business in today’s global, digitised landscape,” said Finix chief executive officer and co-founder Richie Serna.
“We’ve talked to a number of customers and prospects who’ve had to piece together fragmented payment processing solutions across multiple providers in Canada to meet their customers’ needs.”
Finix’s unified payment solution not only supports payment acceptance and payouts, but also incorporates tools such as embedded compliance, comprehensive underwriting, intelligent fraud monitoring, consolidated reporting, and dispute management.
Canadian and multinational merchants and platforms will now be provided with a “comprehensive” view of sales trends and transaction-level data, which they can use to inform customer experiences, drive conversion and increase revenue opportunities.
Experian has announced it will be the first credit bureau to include Apple’s buy now pay later (BNPL) loan information on consumers’ credit reports.
Apple Pay Later loans will appear on consumer’s credit reports with a BNPL designation. At this time, the loan information will not be factored into existing traditional credit scores, but Experian noted it may in the future as new credit scoring models are developed.
Experian added that as BNPL account information becomes more reported by them, lenders will be able to see this on an Experian credit report. They argue this will lead to lenders being able to make more informed decisions on whether to extend credit offers.
Marketer, CMO at Crypton Studio
1 年Neobanks are the future. But in order to bring it closer faster, it is necessary to increase the knowledge of large percentages of the population.
Thanks for the mention! :-)
Thanks Matthew Wilcox