Financial Innovation Roundup e53

Here are 14 news stories you don’t want to miss from financial services last week (Mar 17 – Mar 23, 2024)

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#industryinsights

1.???? FinTech Global : FinTech records a quiet week with 20 deals

The FinTech sector has recorded its second week of investment below $500m across 20 deals reported on by FinTech Global.

Up to $434m was recorded across the 20 deals this week, with the largest FinTech deal being recorded by Moove, a global mobility FinTech that raised $100m in a Series B raise.

#artificialintelligence #ai #dataanalytics

2.???? Worth AI : Stax Payments founders launch AI-powered credit underwriting platform Worth AI

Worth AI, a fintech SaaS startup, officially launched today and announced its artificial intelligence-powered risk management and underwriting technology.?

The first-of-its-kind, patent-pending platform, fundamentally changes how enterprises underwrite the financial credit worth of small and medium-sized businesses (SMBs), expanding access to more customers, decreasing risk, increasing data transparency, and fueling economic growth. Worth AI enables banks, credit unions, fintechs, and financial service providers to rapidly accelerate approvals for business loans, financial services, and lines of credit with a single business credit score.

The Worth AI, data-driven platform predicts business financial futures, reduces risks, and eliminates biases with real-time data. Leveraging AI, the platform processes thousands of traditional and non-traditional data sources to swiftly generate a unified 'WorthScore??,' while building comprehensive business profiles in minutes.

3.???? Crunchbase : Startups Should Heed ‘AI-Washing’ Warnings

It’s become difficult to hear a CEO talk about their company or read a description of a business in a press release that doesn’t mention how it’s “AI-infused,” “AI-enhanced” or some other AI descriptor.

The U.S. Securities and Exchange Commission settled charges this week against two investment advisers — Delphia and Global Predictions — for allegedly making false statements about their use of AI. The firms agreed to pay a total of $400 million in civil penalties, without admitting or denying the allegations.

Those settlements came about four months after SEC Chair Gary Gensler warned businesses about what he called “AI washing,” or making false artificial intelligence-related claims related to their business. The term can refer to AI capabilities a company may not have or even if AI is actually incorporated into a product at all.

Startups may have been dismissive of that warning, since the SEC tends to focus on the public market and may not concern itself with how a small VC-backed firm describes itself in the age of AI.

?#blockchain #crypto #cbdc

4.???? WonderFi : to acquire Australian crypto trading licence as “solid foundation” for international expansion

Toronto cryptocurrency company WonderFi has reached a deal to purchase an entity registered to provide crypto trading services in Australia.

WonderFi is acquiring FX Institutions Pty. Ltd. (FXI), a business set up to launch a crypto exchange in Australia that never did, giving WonderFi its first crypto licence outside of Canada. WonderFi declined to disclose the financial terms of the non-dilutive deal, which it expects to close in the next few weeks and remains subject to regulatory approval.?

With FXI’s licence, WonderFi plans to roll out its over-the-counter crypto trading services to Australians in the second quarter, and a more comprehensive suite of offerings for retail and institutional digital assets investors across the country during Q3 2024.

5.???? BlackRock : claims tokenization first

BlackRock, the world's largest asset manager, has taken its first step into the world of tokenisation.

The firm has launched its first tokenised fund on a public blockchain.

The BlackRock USD Institutional Digital Liquidity fund will be issued on the Ethereum blockchain.

The asset manager has partnered with digital assets firm Securitize for the fund launch and has also taken a minority share in the company.

#digitalbanking ?#neobank #challengerbanks

6.???? Frich Money and MSU Federal Credit Union : Pilot partnership to attract and retain younger members

Exciting news! ?? Frich Money is thrilled to announce a pilot partnership with MSU Federal Credit Union to help them better serve the next generation of members.

We understand the importance of serving the next generation, and like many credit unions across the nation, MSUFCU is looking for innovative solutions to attract and retain younger members, particularly Gen Z.

7.???? Onyx Private : Shifting Business Model From B2C to B2B?

Digital bank Onyx Private is reportedly changing its business model and “moving away from the B2C model.

The company is not shutting down, Onyx Private CEO Victor Santos told TechCrunch in a report posted Monday (March 18).

Santos said this when asked by TechCrunch about an email Onyx Private sent to a customer, saying that the company was discontinuing its services and beginning to close all associated accounts starting on March 13, the date of the email, and would finalize the shutdown on April 14, per the report.?

He added that Onyx Private’s new business model will include a business-to-business (B2B) platform-as-a-service for financial institutions (FIs) that want to launch digital apps for young, affluent consumers, according to the report.

#digitalwealth ?#wealthtech #investing

8.???? Robinhood : launches to UK customers

Robinhood, the trading and investing app made infamous by the Gamestop saga, has launched in the UK today, after two failed attempts.

This is the first step outside the US for the firm, after it shot to global infamy in 2021 as the central player in the so-called meme stock frenzy.

The brand tried to launch in the UK in 2020 and failed, and then attempted to buy UK trading app Ziglu in 2022, but backed out again, saying it was focusing on its US business instead.

Two key things that Robinhood found UK investors were pining for were low fees and interest on uninvested cash, as many platforms have come under criticism for their high fees and grabbing cash interest from their customers.

Meanwhile, Sinclair also touted the benefit of the app being unconstrained by market hours, stating that over a third of customers using the service were already trading outside normal market open.

9.???? HeirWealth and Envestnet | Yodlee : Australian Wealthtech turns on open banking

Sydney-based wealthtech HeirWealth has implemented Open Banking data-sharing technology via global financial aggregator Envestnet|Yodlee, to improve the intergenerational transfer of wealth for its high-net-worth clients.

?The HeirWealth platform provides family investors and their professional advisers in Australia and the UK with a view of assets and liabilities across 40 different asset classes, including traditional assets, like equities and property, as well as alternative asset classes, such as private equity.

By integrating with Envestnet|Yodlee to access Open Banking data, the HeirWealth app now has connectivity to 20,000 financial institutions globally, which can automatically aggregate into the wealth registry platform.

#openbanking

10.? Micropayment GmbH - payment service provider - Zahlungsdienstleister and Tink : combine for Pay by Bank

Micropayment, the Berlin-based payment processor, has partnered with Tink, a market-leading payment services and data enrichment platform, to add Pay by Bank to its payments offering.

Operating primarily in Germany, Austria, and Switzerland, Micropayment works with merchants across industries including fundraising and non-profit, digital services, gaming and entertainment. Micropayment solves individual challenges with a consulting approach, removing the friction of payments software implementation and operational payment management.

Micropayment has launched Tink’s Pay by Bank product for merchant checkouts, working together on promoting and growing the adoption of this payment method across Europe. Pay by Bank is now live for Micropayment merchants across the DACH region with plans to leverage Tink’s pan-European connectivity even further in the future.

Pay by Bank is an online payment method that lets consumers purchase goods and services by initiation payments directly from their bank account to the seller's account. This account-to-account payment method provides a secure and streamlined experience – allowing merchants to differentiate themselves from the competition.

11.? Canadian Parliament votes on Open Banking Bill C-365

In Canada, the House of Commons has voted to pass a second reading of Conservative MP Ryan Williams’ Bill C-365, which will accelerate the implementation of a consumer-led banking system for Canadians.

The Bill passed yesterday (March 20) with 172 votes in favour, versus 150 votes against.

It will now be read a second time and referred to the Standing Committee on Finance.

#payments #spending #borrowing

12.? VoPay : Sets Sights on European Expansion with Strategic Entry into the UK Fintech Scene

VoPay, a pioneer in embedded financial technology solutions, proudly announces a significant stride in its global expansion journey. Building on its successful US launch, VoPay is now targeting the European market, with London serving as the cornerstone for its ambitious growth plans in the region. This strategic move underscores VoPay’s commitment to broadening its international footprint and fostering financial inclusion worldwide.

The company’s latest venture into the UK is marked by its acceptance into the prestigious United Kingdom Fintech Canadian Technology Accelerators (CTA) program. Selected through a rigorous application and interview process by the Canadian Trade Commissioner Service in the UK, VoPay stands out as one of seven elite Canadian tech firms invited to participate in this groundbreaking initiative.

Hamed H. Arbabi , Founder and CEO of VoPay, expressed enthusiasm about the new opportunities, “Our selection for the UK Fintech CTA program is not just an honor; it’s a pivotal moment in our mission to lead financial technology innovation across borders. London’s vibrant fintech community and forward-thinking environment are exactly what we need to propel our expansion in Europe.”

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13.? 亚马逊 taps Stripe Terminal: for Just Walk Out tech in Australia and Canada

Stripe, a financial infrastructure platform for businesses, announced an expansion of its Amazon partnership by powering payments for retailers using Just Walk Out technology in Australia and Canada.

Amazon’s Just Walk Out technology is designed to be an effortless shopping experience. The guest enters the store by using their credit card or mobile wallet at the entry gate. The technology detects what shoppers take from or return to shelves and creates a virtual shopping session. When the guest completes the shopping experience, they can simply leave the store without waiting in line. Their chosen payment method gets charged for the items taken.

Merchants in Australia and Canada use Stripe Terminal’s WisePad3 reader attached to physical entry gates, and Stripe automatically processes the payment after the guest leaves.

14.? Pockit : launches Income Advance product

Pockit, the UK fintech providing vital financial services to people whose needs aren’t met by the traditional banking system, has announced the official launch of its Income Advance product, enabled by its partner SteadyPay.

The service will help meet the growing demand for affordable credit among the large cohort of UK consumers excluded from mainstream lending products, allowing Pockit’s customers to better manage their cash flow without turning to unlicensed and high-cost short-term lenders.

Pockit’s Income Advance product allows customers to borrow money, starting at ￡50, which is automatically repaid from the next instalment of their regular income payment. The service costs a flat ￡4.99 fee per advance, with no additional interest charged, and is available to customers whose income is paid directly into a Pockit account. Pockit has partnered with consumer lender, SteadyPay, to help perform the credit assessment, to provide underwriting activities required to ensure that all loans are responsible and affordable and to fund the loan book.