The future of investing & Why digital experiences are key for investors

Top Story of the Week

The future of investing: Velexa’s role in shaping accessible wealth management - The proliferation of WealthTech companies has helped more retail investors gain access to the world of investing, but there is still a gap. New technology and access to financial education is helping to bolster the democratisation of investing.?

Read the full story here.

Research highlight

Over two-thirds of investors want digital experiences on par with those offered by digital-native firms

ThoughtLab conducted a global survey from September to November 2023, engaging 2,000 investors from diverse backgrounds in terms of wealth, age, gender, and location. The participants were from four regions: Asia Pacific, Europe, the Middle East, and North America. The majority of respondents were either mass affluent or high net worth individuals, with Gen X being the largest age group represented, followed by Baby Boomers.

Client demands are reshaping the investment industry, driven by investor expectations for digital experiences comparable to those provided by digital-native companies. More than two-thirds of investors are now seeking digital interactions on par with leading tech firms, with 51% open to investing through major retail or technology brands if possible. Additionally, a significant portion of investors desire a more comprehensive service approach from their providers. Sixty percent are calling for enhanced digital tools that allow them to manage their investments independently, without relying on financial advisors. This trend is likely to intensify with the rise of the next generation of investors, who are accustomed to the digital excellence of e-commerce platforms. For 58% of Gen Y and Z investors, superior digital applications, tools, and platforms are essential criteria when selecting an investment firm.

Jean-Francois Lagasse Global Wealth Management Leader, Deloitte Switzerland said “The most important disruptor in the industry today is the client. Investors and families have higher financial awareness, literacy, and access to information than at any other point in our history. Their attitudes, expectations, and behaviours are compelling wealth managers to innovate across products, services, and experiences.“

Weekly FinTech deal roundup

FinTech funding slows with $332.65m raised this week - FinTech funding slowed throughout this week’s funding rounds as only $332.65m was raised, despite a solid 21 deals being completed.?Read the full story here.

RegTech news

• Inside Ballerine’s pioneering approach to merchant risk assessment - US-based FinTech firm Ballerine is making waves in the FinCrime space for its pioneering approach to assessing businesses and merchants legitimacy. Founded in 2022, the startup has emerged as a frontrunner in leveraging artificial intelligence (AI) and advanced analytics to address critical challenges faced across the digital commerce landscape. Read the full story here.
• How SymphonyAI empowers financial crime investigators to become more efficient - As budgets tighten, financial services firms require more efficient ways to handle their financial crime prevention. Jason Shane, Head of Strategy & Innovation at SymphonyAI’s financial services division, explains why SymphonyAI is the perfect solution to this problem.? Read the full story here.
• How IMTF seeks to be the financial industry’s partner against crime - Founded in 1987, IMTF develops best in-class RegTech solutions in the area of anti-financial crime, AML and CTF to help financial institutions stay compliant and digitalise their processes and operations to improve customer experience and reduce regulatory risk. Read the full story here.

InsurTech news

• What impact could data have on InsurTech? - In a field built upon numbers, data can be considered the cornerstone of success. In the InsurTech realm, this feeling is no different. But as modernisation and digitisation becomes ever more paramount in the business world, the transformative potential that harnessing accurate data has advanced tenfold. Read the full story here.
• How Generative AI is transforming motor insurance claims - Motor claims processing has become a crucial component of the insurance industry due to its high volume, significant impact on customer satisfaction, and financial implications. With the frequent occurrence of vehicle-related incidents, insurers must efficiently manage numerous claims to maintain operational effectiveness. The speed and accuracy of claims handling directly influence customer satisfaction and loyalty – and Generative AI may be the future, as Simplifai explains. Read the full story here.
• UK InsurTech hyperexponential appoints Risa Ryan to lead US expansion - UK InsurTech hyperexponential, a leader in data-driven pricing solutions for the insurance industry, has appointed Risa Ryan as head of US P&C to spearhead the company’s expansion into the US market. Read the full story here.

WealthTech news

• Harnessing financial data aggregation for enhanced ESG investment decisions - Harnessing the power of financial data aggregation is becoming increasingly crucial in the investment world, particularly when integrating environmental, social, and governance (ESG) performance indicators.?Read the full story here.
• Ethical AI in Salesforce: Architecting responsible technology - The integration of artificial intelligence (AI) within the Salesforce ecosystem is revolutionizing business-customer interactions and operations management. As tools like Salesforce Einstein provide predictive capabilities and deep insights into customer behaviour, ethical considerations become crucial. Read the full story here.
• Old Well Labs secures $36m Series A funding led by Nellore Capital - Old Well Labs (OWL), a leading software platform for finding and monitoring investment managers and allocators, has announced the completion of its Series A funding round, led by Nellore Capital. Read the full story here.

CyberTech news

• Data privacy platform Transcend secures $40m in Series B funding - Transcend, a next-generation data privacy platform, has announced the successful raising of $40m in Series B funding. Read the full story here.
• Averlon emerges from stealth with $10M fund to fortify cloud security - Averlon, a pioneering cloud security company, has secured $10m in funding to advance its AI-powered cloud security solutions. Read the full story here.
• Central banks turn to generative AI for enhanced cybersecurity - The BIS believes in the potential for widespread adoption of GenAI, an area in which many central banks have developed a strong interest. Read the full story here.

ESG FinTech news

• Ten steps to master carbon accounting and boost sustainability - Businesses across Europe and beyond are increasingly recognizing the importance of carbon accounting as a crucial element in their sustainability efforts. ESGFinTech company Position Green has released a guide that provides ten insights and actions to equip sustainability professionals with tangible next steps, offering a roadmap from basic understanding to strategic application. Read the full story here.
• Position Green powers Ambient Enterprises’ eco-friendly initiatives - Ambient Enterprises, a leader in HVAC design and implementation, has taken significant strides in their sustainability journey by partnering with Position Green. Read the full story here.
• Position Green aids Fasadgruppen in achieving CSRD compliance - As the Nordic leader in building exterior services, Fasadgruppen is significantly enhancing building energy efficiency. With over 50 subsidiaries, the organisation has faced the daunting task of meeting the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). Adrian Westman, Head of Sustainability at Fasadgruppen, explained how the company is leveraging Position Green to align with CSRD.? Read the full story here.

Other FinTech news

• Insights from a data scientist: Implementing AI in financial crime compliance - The financial services industry is undergoing a transformation driven by artificial intelligence (AI) technologies, particularly machine learning (ML). These advancements are significantly enhancing anti-money laundering (AML), counter-financing of terrorism (CFT), and sanctions screening as part of customer lifecycle management (CLM). Read the full story here.
• Anders Kirketerp-M?ller joins Muinmos’ board to boost RegTech growth - Danish RegTech firm, Muinmos, has appointed seasoned C-level executive and governance expert, Anders Kirketerp-M?ller, to its board. Read the full story here.
• Custodia’s CC1 service now archives Webex calling records for compliance - In response to Webex’s recent announcement regarding the inclusion of built-in call recording in its cloud-based phone service, Custodia has unveiled an update to its CC1 service. Read the full story here.