??? Rearchitecting the Global Financial System

We’re back! I hope you missed the Couchonomics Crunch as much as it missed you.

Over the past few months we’ve been working hard on making sure that Season 3 is better than ever and we’re sure you’re going to enjoy it.

This season is all about rearchitecting the global financial system and with the first 6 weeks of 2024 already coming with major changes, this season might just be the most exciting one we’ve had yet.

If you're new to this newsletter and haven't tapped into our insights yet, join the 20,890 others who trust us for their updates. Subscribe here.

Now, let’s dive right in.

??? Rearchitecting the Global Financial System

The global financial system has been in dire need of a refresh and it seems like politicians, economists, and institutional leaders are finally catching on.

The open banking market is on a trajectory to skyrocket from a modest $7 billion in 2018 to a whopping $43 billion by 2026 according to Mohammed El-Kuwaiz, the man at the helm of the Capital Market Authority (CMA) and the Financial Academy, at the Open Banking Hackathon 2024 in Riyadh.

This leap is more than just numbers. It's about the world waking up to the benefits of open banking, which promises to make financial services more transparent, user-friendly, and competitive.?

Background

• From 2018 to 2026, we're watching the open banking market grow from $7 billion to an eye-popping $43 billion.
• Open banking is changing the game by making everything more open, from how we see our finances to how companies compete.
• The 2024 Open Banking Hackathon in Riyadh isn't just an event; it's a signal that big things are happening.

Today

• The buzz around open banking's growth shows it's catching on globally.
• The Financial Academy's fresh approach, highlighted by the hackathon, aims to make the Kingdom a fintech powerhouse, aligning with Vision 2030's ambitious goals.
• Investments in training and development are soaring, with the financial training market expected to jump from SAR 788 million to SAR 1 billion by 2026.

What’s Next?

• The journey continues with more countries getting on board and financial services becoming even more innovative.
• A focus on building a workforce skilled in tomorrow's tech to keep the innovation engine running.
• Tackling the integration challenges of open banking globally to ensure this momentum doesn't just create a splash but changes the course of financial services for good.

What new trends are you most excited to see in financial services?

?? India's central bank has directed Visa and Mastercard to stop processing B2B payments through third-party fintech platforms, affecting only a specific subset of commercial transactions.

?? Visa enhances its digital wallet for B2B payments, allowing virtual corporate cards in digital wallets for better security and convenience.

?? QuantumFy joins MENA Fintech Association to bring customised banking and payment solutions to the Middle East and North Africa, in an attempt to foster fintech growth and innovation in the region.

?? UAE FinTech startup Kema secures $2m in pre-seed funding to revolutionise B2B payments by digitising the invoice-to-cash process, aiming to enhance cash flow and efficiency for SMEs.

?? PatientFi secures a significant growth equity investment led by Questa Capital to expand its elective healthcare payment solutions

?? Qatar's Islamic fintech market to hit $4 billion by 2027, ranking sixth globally with 24 firms, thanks to a supportive innovation ecosystem.

?? UK Open Banking payments to HMRC rise 39% in January 2024, with Ecospend processing over ￡3.3 billion.

?? The Open Banking Market is set to reach USD 203.8 billion by 2033, with a CAGR of 23.3% from 2024 to 2033.

?? Creta partners with Lloyds Investment Group and Thomas Vu to launch a $1 billion Web3 gaming industry fund to fuel global growth in the Web3 game industry.

?? Bitcoin exceeds $50,000, its first since 2021, amid optimism for US-approved ETFs, yet remains below its 2020 high of nearly $69,000.

?? amana launches a no-fee offer on all asset classes, including crypto, for the first $100,000 invested.

?? Genesis Global receives court approval to sell $1.6 billion in Grayscale cryptocurrency trust shares to repay creditors, despite objections from its parent company, Digital Currency Group.

?? Honduras' CNBS regulator bans financial institutions from cryptocurrency transactions due to fraud and money laundering risks.

?? UAE introduces a $200 million technology export fund and a $300 million Falcon Foundation for AI projects, aiming to assist poorer nations, announced at the World Governments Summit in Dubai.

?? Yango introduces Yango Play in MENA, an AI-driven app with movies, music, series, and games, featuring the Arabic AI assistant Yasmina, to offer personalized content and promote local talent.

?? The Cloud, a UAE-based cloud kitchen startup, acquires UK's KBOX as part of its $12 million Series B funding, aiming to expand its global footprint to over 200 locations.

?? Kema secures $2 million in pre-seed funding to revolutionise cash flow automation for B2B SMEs in the MENA region.

?? GameCentric secures $1.5 million from Dubai-based angel investor to expand its gaming platform and evolve into a Web3 ecosystem.

Gradual Gains from Tokenisation: The report by BIS explores how tokenisation could open up new possibilities for automated transactions and novel economic setups, keeping the focus on real-world assets rather than crypto. Tokenising things like deposits or stablecoins could make payments easier, but might mess with having one single currency.

The big idea is getting everyone involved in a deal on the same ledger - then you can do atomic swaps and deliver-versus-payment seamlessly. The report maps out different uses on a spectrum from wholesale banking to property records. It's promising stuff, but don't expect an overnight revolution. This technology needs solid rules and oversight to develop gradually. If done right, tokenised systems could take today's processes up a notch. But it's an evolution, not a big bang. Click here to read the full report.

Now, a quick break for your wellness. Chief Wellness Officer at FAB Diego Carrete is on a mission to help executives get fit, increase their energy, and live longer.

What do all high performing executives have in common???

Wellness is not just a trendy buzzword. It is a vital component in employee retention, attraction and in fostering a healthier, more productive workforce.?

By definition, wellness is the act of practicing healthy habits daily to attain better physical and mental health. As the demands and expectations at the workforce evolve, so must the approach of companies to employee well-being.?

In the US alone, the voluntary quit rate is 25 per cent higher than pre-pandemic levels. McKinsey notes that many companies are likely to find that “job openings will persist in crucial positions,” an issue that can’t be resolved by reshuffling the current workforce.??

This begs the question: how do companies adapt to retain their staff???

As an employer looking to build an attractive employee value proposition, the 4 keys to success are:?

• Listen to your staff, then listen again?
• Focus on what they value, not on what you think they value?
• Build a community beyond office walls?
• Regularly review points 1 and 2?

?

Over the past year, I interviewed dozens of financial leaders. They all have 3 things in common that you can start implementing today:?

1. They have a strong morning routine, whether it's a walk in the desert, a morning mobility session or a workout, they all seem to arrive in the office energised and at a peak.?
2. They learned to compartmentalise. Leaders have clear boundaries between work, and home.?
3. They are present, at work and at play. Business leaders treat business like a sport, and do everything to have their main muscle, the brain, perform at an extraordinary level.?

This season, we will bring you weekly actionable frameworks to think, work and perform at an extraordinary level, at home, and at work.?

We have news from?Sabre Corporation,?Revolut,?Nuvei,?Mastercard,?Last Mile Solutions,?Oobit,?PayPal, and more.

Subscribe for weekly updates on all things fintech here. Thank you to our sponsors ToYou, Mastercard, M2P Fintech, Thunes, geidea, and Adyen for making today's edition possible.