The role of social media data in investing & India dominates Asian InsurTech deals

Top Story of the Week

Balancing privacy and personalisation: Social media data in investing - Personalisation has continued to feature as an integral part of digitalisation strategies. Spurred on by the demand for it by consumers, companies across the financial services landscape are transforming their products to be personalised to specific customer needs.

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Research highlight

India accounted for over a third of Asian InsurTech deals in Q1 2024

? Asian InsurTech deal activity reached 11 funding rounds in Q1 2024, a 62% drop from Q1 2023

? Asian InsurTech companies raised a combined $153m in Q1 2024, a 51% reduction YoY

? India was the most active country in Asia for InsurTech deals with four funding rounds

In the first quarter of 2024, the InsurTech landscape in Asia experienced a notable decline, with deal activity plummeting by 62% YoY, amounting to only 11 deals. Similarly, the total funds raised by Asian InsurTech companies saw a significant decrease, dropping by 51% YoY to a combined $153m in Q1 2024.

Perfios, which provides a real-time medical claims processing solution, completed the largest InsurTech deal in Asia during Q1 2024 after raising $73m in their Series D extension. The new funding pushes Perfios’ valuation to $1bn. Perfios announced its intention to further expand internationally and enhance its global presence. The company aims to use the funds to explore opportunities for inorganic growth and bolster its technological infrastructure. Additionally, Perfios plans to invest in advancing its tech stack to support seamless customer experiences across various sectors, including banking, insurance, and embedded commerce.

India was the most active Asian InsurTech country with four transaction, a 36% share of total deals. This was followed by China which had two deals, a 18% share of all transactions. All other countries had one deal.

Weekly FinTech deal roundup

Slow week for FinTech with just $176m raised across 13 deals – Read about them here - It was a slow week for FinTech deals, with just 13 deals completed and a total of $176m raised.??Read the full story here.

RegTech news

• How can AI transform customer onboarding? - The role of artificial intelligence is continuing to evolve within the FinTech sector. As firms get to grips with the technology’s potential, many stakeholders are attempting to figure out what comes next.?Read the full story here.
• How is Generative AI impacting the KYC process? - Ever since its launch in November 2022, Generative AI has been the topic of discussion on everyone’s lips when it comes to discussing transformational technology. In the area of KYC, could we expect Generative AI to have significant long term impacts? Read the full story here.
• Navigating the new frontiers in surveillance technology - The recently launched 2024 Surveillance Benchmarking Survey & Report from 1LoD and co-sponsored by MCO (MyComplianceOffice), sheds light on the evolving landscape of surveillance across financial institutions. The insights, gathered from over 30 prominent banks globally, highlight significant developments in the ways these institutions approach compliance and surveillance. Read the full story here.

InsurTech news

• How GenAI is redefining insurance - Imagine a world where insurance isn’t bogged down by endless paperwork, long processing times, and one-size-fits-all policies. Instead, envision a landscape where every interaction is tailored to fit your unique needs, claims are processed swiftly and accurately, and customer service is available around the clock. Welcome to the transformative era of generative AI in insurance.? Read the full story here.
• Leveraging AI and geospatial imagery for insurance risk prediction - Artificial intelligence (AI) and geospatial imagery are revolutionising the insurance industry, enhancing everything from underwriting and risk assessment to claiming processes. By integrating AI with high-resolution geospatial data, insurers can gain unprecedented insights into the specific risks associated with a given location.?Read the full story here.
• Earnix and Verisk partner to boost commercial insurance pricing efficiency - Earnix, the leading global provider of AI-based SaaS solutions for financial services, has announced a strategic collaboration with Verisk to boost commercial insurance pricing efficiency. Read the full story here.

WealthTech news

• WealthOS closes ￡4m seed round with Barclays and Main Set as key investors - WealthOS, the cloud-native wealth management infrastructure platform provider, has announced the successful closure of its seed round, raising ￡4m. Read the full story here.
• Financial platform Prósperos raises $3m to transform Latino banking - Prósperos, a tech company focused on delivering a powerful financial platform for the Spanish-speaking Western hemisphere, has raised $3m. Read the full story here.
• Zūm Rails launches AI-powered Banking as a Service project led by Miro Pavletic - Zūm Rails has announced the launch of a large-scale Banking as a Service (BaaS) project, aiming to expand its platform with bank-like services for enterprise clients. Read the full story here.

CyberTech news

• Cybersecurity startup SpyCloud secures $35m to combat account takeovers - Cyber startup SpyCloud has announced a successful funding round, raising $35m to further enhance its capabilities in account takeover prevention. Read the full story here.
• Passwordless company HYPR secures $35m Series C funding round - HYPR, the passwordless company, has announced the successful raising of $35m in a Series C financing round. Read the full story here.
• Cloudflare strengthens SASE network with BastionZero acquisition - Cloudflare, a connectivity cloud company, has announced the acquisition of BastionZero, a zero-trust infrastructure access platform. Read the full story here.

ESG FinTech news

• How ESG reporting strengthens stakeholder relations and strategic decision-making - In the realm of sustainability reporting, ESG reporting has become a crucial tool for organisations looking to support long-term value creation. Read the full story here.
• The impact of ESG on KYC and customer lifecycle management - The finance industry’s landscape has evolved dramatically over the years, with sharper delineation emerging between financial and non-financial risks. Read the full story here.
• Tide partners with Connect Earth to help SMEs achieve net zero emissions - Tide has teamed with Connect Earth to develop new carbon accounting tools aimed at helping Tide’s members reduce their carbon footprint. Read the full story here.

Other FinTech news

• Investment companies and shell companies: The hidden tools of money laundering - Money laundering is the process of disguising the proceeds of criminal activity as legitimate funds in an effort to conceal their illicit origin. One common way that individuals may try to launder money is through the use of investment accounts and shell companies. Read the full story here.
• Preserve eComms or pay the price: The SEC’s 2024 focus on recordkeeping - The SEC and CFTC have charged multiple Wall Street firms with widespread recordkeeping failures, imposing staggering penalties exceeding $2.5bn. Read the full story here.
• How KYB regulations shape the future of banking and FinTech - KYB is the process of verifying business entities during the onboarding process to understand risk factors, financial information, credit, and beneficial ownership. Read the full story here.