Portuguese deals to climb and How to onboard customers using technologies

Top Story of the Week

How to onboard customers using different technologies -? In an age where customers are using digital financial services in bigger numbers than ever, the need to have a vast range of technologies for this is becoming ever more important.

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Research highlight

Portuguese FinTech deal activity on track for new record in 2023

Key Portuguese FinTech investment stats in H1 2023:

• Portuguese FinTech deal activity reached 17 transactions in H1 2023, an 88% increase from H1 2022
• Portuguese FinTech companies have raised a combined $51m in H1 2023, a 64% increase YoY
• Portuguese FinTech companies have raised a combined $465m since 2019

Mitiga, a climate risk scoring service, had the largest ESG FinTech deal in Q2 2023, raising $14.2m in their latest Series A funding round, led by Kibo Ventures. With the newly acquired funding, Mitiga Solutions intends to establish itself as the standard in Climate Score, providing firms with the necessary tools to assess, measure, and report climate hazard-associated risks. It aims to enhance its physics-based models to prevent natural hazards from escalating into disasters. At its core, Mitiga Solutions unifies scientific models with cutting-edge technology to better gauge the impact of natural hazards. This approach allows insurance, real estate, energy, and financial companies to understand and address the risks and uncertainties brought about by climate change. The company employs high-performance computing, artificial intelligence, and scientific models to streamline risk modelling capabilities and insurance products.

Portugal’s FinTech sector has seen consistent growth over the past five years and is on track to have their most active year in 2023. From 2019 to the first half of 2023, FinTech companies in Portugal collectively secured $465m in funding. In the first half of 2023, Portuguese FinTech firms raised a total of $51m, marking a remarkable 64% YoY growth. Portuguese FinTech deal activity reached 17 deals in H1 2023, an 88% increase from H1 2022. Based on H1 2023 activity, Portuguese FinTech deal activity is projected to reach 34 deals, a 21% increase from 2022.

Coverflex, a compensation management platform, had the largest Portuguese FinTech deal in H1 2023 after raising $16.5m in their latest Series A funding round, led by SCOR Ventures. This funding round, Coverflex claims, will allow it to continue growing its team to more than 150 by the end of 2023, mainly in its product, sales and engineering teams. In addition, the funding will support its launch in Italy and consolidate its position in the employee benefits management space in Portugal. Coverflex CEO Miguel Amaro said, “In the current macro environment, this Series A round validates our ambitious vision, product-market fit in Portugal and a market opportunity in Europe, especially in Italy – Edenred’s most profitable market in the world despite having a strong pushback from both merchants and users recently. “This round confirms that our focus on adapting human resources processes to the current demand for a more personalised compensation experience is more than relevant today”.

Starting from July 15, 2023, Notice no. 1/2023 of the Bank of Portugal will be in effect. This notice supplements the Anti-Money Laundering (AML) Legal Framework and outlines the procedures and requirements for complying with AML and anti-terrorist financing duties for entities dealing with virtual assets. Although there are no specific regulations targeting virtual currencies, there is a growing focus on regulating activities related to digital assets, particularly in terms of AML measures. The Bank of Portugal, following supranational authority guidelines, has clarified that virtual currencies are not considered legal tender in Portugal. Therefore, businesses are not obligated to accept them as a form of payment in transactions. However, virtual currencies can be used as an alternative means of payment if both parties involved in a transaction agree, aligning with the European Court of Justice's view that Bitcoin is a contractual means of payment. ?

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Weekly FinTech deal roundup

FinTech funding rounds pass $1bn – Here are the 23 deals

FinTech funding passed the $1bn mark this week across the 23 deals – following two mega deals – including one worth a monstrous $500m.

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RegTech news

• What’s going on with UK corporate governance and audit reform? – With the future of UK corporate governance and audit reform seemingly as murky as ever, businesses are being forced to prepare compliance measures for legislature reform that may never come. Diligent tries to unpick the jargon, and shed some light onto parliamentary proceedings.?Read the full story?here.
• How to verify if a business is legitimate? KYB explained - Identifying the legitimacy of businesses and merchants is not just a routine procedure – it’s an essential protective measure for banks and financial institutions. But how can you verify if a business is legitimate? Fenergo delves into the concept of KYB. Read the full story?here.
• Over a third of UK emerging financial firms report money laundering in 6 months - In a shocking revelation, a recent survey has highlighted that 36% of firms in the emerging financial sectors of the UK have fallen prey to either money laundering or financial crime in the last half year. The banking sector has been particularly hard-hit, emerging as the most affected sector. Read the full story?here.

Don't Miss Out - Global RegTech Summit USA will be hosted on 28th September 2023!

Don’t miss the largest RegTech event where compliance leaders converge. Secure your place for our second edition in New York and shape the future of RegTech. Find out more?here.

InsurTech news

• How loss control risk management can become the next big opportunity for insurers -?Comprehensive management of new and emerging risks is vital for any company aiming to ensure compliance and maintain a strong financial position. For insurance companies, however, it becomes doubly crucial as risk is the very basis of their value and product. This is why solutions such as loss control could become the next big opportunity for insurers. Read the full story?here.
• INSTANDA welcomes industry veteran Kevin Gaut as CTO -?INSTANDA, the globally renowned no-code insurance platform provider, proudly announces the appointment of Kevin Gaut as their new CTO. Read the full story?here.
• Bridgehaven, distriBind link to reshape UK commercial specialty market -?Bridgehaven has partnered with InsurTech firm distribind to facilitate the former’s aim to write a diverse range of commercial specialty business in the UK. Read the full story?here.

Don't Miss Out - Global InsurTech Summit USA will be hosted on 26th September 2023!

After five years of continued success and unprecedented demand from US insurers and InsurTech founders, we are bringing our flagship event to New York! Find out more?here.

WealthTech news

• Innovations in Wealth Management: PIMFA and Morningstar’s Tech Sprint winners revealed - PIMFA WealthTech, a FinTech and digital market network renowned for bridging the gap between FinTechs and the Wealth Management sector, has partnered with Morningstar to disclose the outcomes of their pioneering joint venture. Read the full story?here.
• The pressing need for wealth managers to cater to retail investors -?In a recent post by WealthTech firm Velexa, the company outlined why wealth managers need to focus more on retail investors.?Read the full story?here.
• Monzo unveils new investments feature - Monzo has unveiled an investments feature, that will enable its customers to put as little as ￡1 into a choice of multi-asset funds. Read the full story?here.

CyberTech news

• How can companies build a robust information security culture? - TAINA Technology recently took the opportunity to explain how businesses can build a strong information security-aware culture. Read the full story?here.
• European companies face data security challenges amidst rising cyberattacks -?A study has found 29% of European organisations face significant challenges in fully utilising data due to concerns surrounding data security. Read the full story?here.
• CertifID secures $20m in Series B to protect real estate industry from fraud - CertifID has revealed that it has raised $20m across its Series B funding round, as it looks to protect the real estate industry from fraud. Read the full story?here.

ESG FinTech news

• From greenwashing to value creation: The evolving role of ESG in finance -?In a recent episode of the Fenergo FinTalks podcast, host Dhanum Nursigadoo and Lesley Li, founder and CEO of uIMPACT, embarked on a dive into the world of ESG. Read the full story?here.
• How to future-proof your corporate governance framework - Corporate governance is ever-changing, it’s important to understand the top trends in corporate governance, but it’s equally important to implement a governance framework that will evolve as the business landscape does — not fall behind. But how can businesses do?that? Read the full story?here.
• Lloyd’s and Moody’s link on new carbon accounting solution -?Lloyd’s, a renowned insurance and reinsurance marketplace, and Moody’s Analytics have joined hands to forge a path forward in carbon accounting. Read the full story?here.

Other FinTech news

• Consumers turn to embedded finance amid lingering recession fears - Despite finance analysts predicting a 20% chance of a recession in the upcoming year, consumers remain apprehensive and are reducing their spending. Read the full story?here.
• IBM study uncovers tech challenges hampering financial institutions - A study led by IBM Institute for Business Value (IBV) has shed light on the discrepancies between the priorities of bank executives and their consumers. Read the full story?here.
• Why the rising cost-of-living crisis is draining workforce productivity -?Zellis, the HR and payroll specialists, disclosed that 77% of UK and Ireland’s workforce has been under financial stress in the past year. Read the full story?here.