The Week in Fintech
My top three fintech news from the last week and why.
Britain’s financial watchdog the Financial Conduct Authority (FCA) plans to introduce measures to curb marketing of crypto assets and other high-risk ivestments. This comes amid a rise in crypto advertising and endorsements by celebrities. There has been a surge in investment scams since the pandemic began, particularly via social media. The regulators also expressed concern that consumers were merely clicking through and accessing high-risk investments without understanding the risks. ?This move comes amid a legal crackdown on celebrities such as Kim Kardashian and Floyd Mayweather who are currently facing lawsuits for allegedly misleading investors through their promotion of crypto tokens. Regulating cryptocurrency promotion is essential to some extent as all such advertising must convey the risks and relevant information to consumers so they can make an informed investment.
Meta, the parent company of Facebook, may soon allow users to produce and sell non-fungible tokens (NFT) in an attempt to cash in on the digital collector craze. The proposed new features will allow users to display their NFTs on their social profiles and also include a marketplace feature that will enable users to create and sell digital assets. This news comes after Reddit announced the launch of its collection of NFT avatars and Twitter revealed plans for users to authenticate their profile pictures using NFTs. Social media’s increasing adoption of NFTs not only indicate the booming popularity of digital tokens but could make NFTs more accessible to a broader, mainstream audience.
Iroquois Federal, a financial institution in the U.S and banking tech vendor Nymbus, are launching a stand-alone, digital bank called “Hitched” to cater to the financial needs of newlywed couples. Its services include a joint checking account with a debit and (optional) credit card, and a shared financial dashboard to visualise, set and track mutual savings goals, as well as manage everyday spending and work towards shared goals. It will also provide financial education to build a secure financial future, at every stage of the couple’s life. This interesting venture shows the potential for niche banking to tap into various market gaps that traditional financial institutions may not be able to cater to, due to lack of flexibility and data-driven audience insights.?