21.co, the parent company of 21Shares – one of the world’s largest issuers of crypto exchange traded products (ETPs), and Crypto.com announced that they have entered into a strategic partnership. Central to the partnership, 21.co Wrapped Bitcoin (21BTC) will source Bitcoin liquidity from Crypto.com, leveraging the exchange’s liquidity. Looking ahead, 21.co and Crypto.com intend to build on the strategic partnership, with future announcements in the pipeline. Eliezer Ndinga “We are thrilled to integrate 21BTC with Crypto.com, enhancing user access to crypto and marking the starting point of a long-term, strategic partnership. As two leaders in digital asset innovation, know-how and operations, the 21.co–Crypto.com partnership creates a powerful combination,” said Eliezer Ndinga, Head of Strategy and Business Development, Digital Assets at 21.co. “Crypto.com is one of the world’s largest digital assets exchanges serving over 100 million users globally. As one of the world’s largest issuers of crypto ETPs, 21.co brings asset management best practices and operational excellence to the world of wrapped assets.” Eric Anziani “This partnership is a strong demonstration of how our exceptional liquidity can support the innovations of companies like 21.co and how Crypto.com is constantly aiming to better serve our existing customers,” said Eric Anziani, President and COO of Crypto.com. “21.co is a proven global crypto company, driving innovation across multiple ETP, ETF and tokenization projects. By coming together, we will offer retail and institutional crypto traders the liquidity solutions they need in the market of today and tomorrow.”     Featured image credit: Eliezer Ndinga, Head of Strategy and Business Development, Digital Assets at 21.co and Eric Anziani, President and COO of Crypto.com. Edited from freepik The post 21Shares and Crypto.com Forge Strategic Partnership appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

2024 continues to be a challenging year for European fintech companies, with funding levels experiencing a significant decline. In H1 2024, European fintech companies raised EUR 2.9 billion (US$3.2 billion), representing a 24% decline from EUR 3.8 billion (US$4.2 billion) in the same period the prior year, according to a new report by Finch Capital, a Dutch growth capital firm. The number of deals also fell, declining by 19% to 443 rounds. Valuations remained under pressure, as flat and down rounds accounted for 25.2% of all deals in H1 2024, up from 19.7% in H1 2023. This trend further reflects the challenging fundraising environment. Regional trends In H1 2024, the UK remained the dominant player in the European fintech landscape, accounting for 65% of capital raise, up from 58% in H1 2023. Meanwhile, fintech sectors in the Netherlands and the Nordics showed resilience, with funding levels remaining stable despite broader market difficulties. 2024 is also seeing more emphasis on profitability than revenue growth, a trend that’s driving the development of a thriving low- to mid-market mergers and acquisitions (M&A) ecosystem in Europe. Notably, the share of Europe on global M&A deals under EUR 500 million (US$549 million) rivaled the US in size in H1 2024 at 32%. In contrast, the US share of similar exits has shrunk over the past years, declining from 49% in 2021 to 35% in H1 2024. Fintech exits by volume, Source: State of European Fintech 2024, Finch Capital, Oct 2024 Digital banks: the bright spot for European fintech Despite the challenging fundraising climate, digital banks are emerging as a standout area in the European fintech sector this year. According to Finch Capital, banking was the favored fintech verticals in H1 2024, attracting the majority of capital despite being ranked fifth in terms of deal count. This indicates that large rounds led much of the sector’s funding activity. Top subsectors in deal count and deal value – H1 2024, Source: State of European Fintech 2024, Finch Capital, Oct 2024 According to Finch Capital, large rounds of fundraising in the banking sector over the past year have been driven by record profits by challenger banks. Top challenger banks in the UK generated nearly GBP 800 million (US$1 billion) in profit in 2023 compared to just GBP 28 million (US$37 million) in 2022. These strong financial performances have made the UK a hub for fintech funding, with success stories like Revolut, Monzo and Atom Bank contributing to this trend. Monzo, for example, has raised north of US$610 million in 2024. Monzo claims it is the 7th largest bank in the UK, boasting more than 10 million customers. The digital bank achieved its first full year of profitability in 2024, reporting a pre-tax profit of GBP 15.4 million (US$20.5 million) for the financial year ending March 31, 2024. Monzo is now looking to expand its presence internationally, particularly in the US. Atom Bank also delivered its first year of operating profit in fiscal year 2023, with operating profit rising to GBP 27 million (US$35.4 million), up from GBP 4 million (US$5.2 million) last year. Founded in 2014, Atom Bank was the first online bank to be granted a full UK regulatory license. Between 2018 and 2023, the bank’s customer base increased significantly, reaching 224,000 in March 2023. Revolut, meanwhile, delivered record profits and revenue growth in 2023, with group revenue increasing by 95% from US$1.1 billion in 2022 to US$2.2 billion. Profit before tax was US$545 million, and net profit grew to US$428 million, up from US$7 million in 2022. Revolut operates in more than 40 markets globally and claims more than 45 million customers, making it one of the most prominent digital banks in the world. European neobanking sector, Source: State of European Fintech 2024, Finch Capital, Oct 2024 Outlook for 2025: AI drives growth, BNPL rebounds Looking ahead to 2025, Finch Capital anticipates several key trends that will shape the European fintech landscape. In particular, the firm expects continued adoption of artificial intelligence (AI), especially in the insurance sector. According to research, four out of five actuaries are now using AI to improve risk analysis and pricing models and 65% of executives say they will invest more than US$10 million in AI in the next 3 years. This technology is expected to make the industry more efficient. Another emerging trend is the resurgence of buy now, pay later (BNPL). At the beginning, BNPL was largely restricted to e-commerce. However, the payment method is now gaining traction in physical stores such as grocery stores, restaurants as well as gas stations. Furthermore, improvement in risk management, driven by AI, have helped BNPL firms enhance their lending standards, improving profitability among BNPL players, Finch Capital says. Swedish BNPL giant Klarna, for example, said in August that it posted a profit in H1 2024, reporting an adjusted operating profit of SEK 673 million (US$66.1 million) in the six months through June 2024, up from a loss of SEK 456 million (US$44 million) in the same period a year ago. Revenue, meanwhile, grew 27% year-on-year to SEK 13.3 billion (US$1.3 billion). Founded in 2005, Klarna is a leading BNPL player boasting over 31 million monthly active users. Finch Capital also notes that the fintech sector is beginning to see signs of recovery in the job market. Incumbents, in particular, have been hiring en masse, with HSBC, Mastercard and American Express adding more than 700 employees to their engineering teams over the past 12 months. Among digital leaders, Stripe and Revolut were the most active in hiring, expanding their engineering teams by 457 and 320 employees, respectively, during the same period. Fintech hires, Source: State of European Fintech 2024, Finch Capital, Oct 2024   Featured image credit: edited from freepik The post European Fintech Funding Continues Downtrend; Digital Banks Emerge as Sector’s Bright Spot appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

In Q2 2024, global enterprise fintech secured a total of US$4.6 billion in venture capital (VC) funding across 315 deals, a 27.1% year-on-year increase and 2.2% growth quarter-on-quarter, breaking the downward trend of the previous two quarters, data from PitchBook show. Enterprise fintech VC deal activity by quarter, Source: Q2 2024 Enterprise Fintech Report, PitchBook, Jul 2024 This increase was driven by larger deal sizes. In H1 2024, enterprise fintech companies logged a median VC deal size of US$5 million, up 11.3% from 2023’s median of US$4.5 million. Notably, late-stage deals experienced a 20.1% jump in median deal size to US$9.9 million. Other stages, however, decreased from their 2023 median, with pre-seed and seed declining 22.8% to US$2.2 million, early-stage VC falling 6.2% to US$5 million, and venture growth decreasing 31.5% to US$17 million. Median enterprise fintech VC deal value (US$M) by stage, Source: Q2 2024 Enterprise Fintech Report, PitchBook, Jul 2024 In Q2 2024, capital markets and CFO stack led VC funding activity. Capital market startups closed 35 transactions, securing a total of US$1.6 billion, or 34.8% of all enterprise fintech deals during the period. The vertical recorded some of the quarter’s largest enterprise fintech rounds including Clear Street’s US$685 million Series B, AlphaSense’s US$650 million acquisition financing to purchase competitor firm Tegus, and Finbourne’s US$70 million Series B. CFO stack followed capital markets, securing the second highest deal value in Q2 2024 at US$1.2 billion (26%) across 76 transactions. Notable deals included Kapital’s US$165 million Series B, Ramp’s US$150 million Series D2, and FloQast’s US$100 million Series E. Q2 2024 enterprise fintech VC deal activity by segment, Source: Q2 2024 Enterprise Fintech Report, PitchBook, Jul 2024 Enterprise fintech exits and M&A Despite somewhat of a rebound in VC funding, exits and mergers and acquisitions (M&A) in the enterprise fintech space remained subdue, with only US$1 billion of recorded exit value across 33 deals in Q2 2024. Notable acquisitions during the quarter included AlphaSense’s US$930 million acquisition of Tegus, Aurionpro Solutions’ acquisition of a majority stake in Arya.ai for US$16.5 million, Digits’ acquisition of Basis, Stripe’s acquisition of Sumatra, Paystand’s acquisition of Teampay, and Toggle AI’s acquisition of Atom Finance. Noteworthy deals also took place for public companies, such as Nuvei’s all-cash take-private deal by private equity (PE) firm Advent International, Shift4’s acquisition of a majority stake in point-of-sale (POS) payments company Vectron Systems, and Global Payments’ acquisition of UK-based payment service provider Takepayments. Only one initial public offering (IPO) occurred in Q2 2024. It involved Trust Fintech, a bank technology provider, which listed on the National Stock Exchange of India and recorded an exit value of US$21.3 million. BaaS, AI, crypto payments as top enterprise fintech verticals The PitchBook report also highlights some of the key trends driving enterprise fintech in Q2 2024. First, banking-as-a-service (BaaS) continued to dominate headlines during the quarter amid heightened regulatory scrutiny following the collapse of BaaS platform Synapse. Synapse filed for Chapter 11 bankruptcy in April 2024 after a combination of internal mismanagement, failed partnerships, and broader market challenges led to the company’s downfall. The collapse impacted nearly 100 fintech companies and millions of customers, TechCrunch reported, leaving around US$160 million in deposits inaccessible and raising concerns about the stability of the BaaS model and the fintech industry’s heavy reliance on a few service providers. Despite these setbacks, fintech companies continued to explore BaaS in Q2 2024: FIS launched in May its BaaS platform, Atelio; Equals Money, a payment solutions provider, introduced in June a new BaaS product; Atmos Financial expanded its relationship with banking partner Five Star Bank in June to explore BaaS opportunities; and Velmie announced in May a partnership with Unlimit to bring together Velmie’s platform with Unlimit’s cutting-edge BaaS offering. Artificial intelligence (AI) is another top trend outlined by PitchBook, with fintech leaders and banks continuing to explore generative AI (genAI) applications in Q2 2024. In May, Visa introduced its new Visa Account Attack Intelligence (VAAI) tool, which uses genAI to detect and prevent enumeration attacks in card-not-present transactions. That same month, JP Morgan unveiled its IndexGPT tool, which provides an automated approach to curating thematic investment baskets. Finally, crypto payments gained notable traction in Q2 2024 as leading payment players embraced blockchain solutions. In April, Stripe announced it would begin supporting global stablecoin payments using Circle’s USDC. That same month, Block, the company behind Square, Cash App and other services, announced a new program allowing merchants using Square’s solutions to convert a percentage of their daily sales to bitcoin, TechCrunch reported. The firm also unveiled plans to expand its bitcoin mining ambitions from designing chips to developing a full bitcoin mining system. In Q2 2024, enterprise fintech startups continued to capture the majority share of VC deal value in the fintech sector, making up 51.9% of total VC, according to PitchBook. Fintech VC deal activity by quarter, Source: Q2 2024 Enterprise Fintech Report, PitchBook, Jul 2024   Featured image credit: edited from freepik The post Enterprise Fintech VC Funding Bounces Back, Driven by Larger Deal Sizes appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

ETF investors are familiar with the problem: finding out which individual securities are included in an investment instrument can only be done with great difficulty using factsheets and supplementary data tables. Identifying overlaps in a portfolio used to be extremely time-consuming. True Wealth is now changing that. True Wealth launches the «ETF Lookthrough». This tool allows clients to look through ETFs and index funds: The individual securities held in their portfolio, i.e. stocks and bonds, can be viewed instantly, displayed with just a few mouse clicks and searched. This unique functionality is not only available to invested clients, but also to all other interested visitors to the website who would like to test True Wealth with a free virtual portfolio. Felix Niederer With the ETF-Lookthrough, True Wealth is once again setting a higher standard in asset management: «Trust and transparency are crucial for our clients. With this new function, we are giving them a tool to better understand the composition of their portfolio,» explains Felix Niederer, CEO of True Wealth. No distinction is made between investments in free (untied) assets and Pillar 3a. In addition to ETFs, index funds are also taken into account. For a more meaningful view of the investment risk, shares and bonds from the same issuer are shown in aggregated form. The aspect of home bias, for example the tendency of some Swiss investors to invest disproportionately in Swiss stocks, is now also apparent to everyone with the tool. For example, the fact that an SMI investment primarily holds three local champions from the food and pharmaceutical sectors (Nestlé, Roche and Novartis). The question of how much of your own assets are at risk in the event of a company insolvency (across the shares and bonds issued by the company) is also revealing. The tool also shows this optionally in a holistic view that combines free assets and Pillar 3a. View through the ETF portfolio: The «Lookthrough» shows transparently which companies you are effectively invested in. Other issuers such as the US Treasury are also shown. A simplified view of the review down to individual issuers can be seen here in the sample portfolio.   Featured image credit: edited from freepik The post True Wealth Rolls Out ETF Transparency Feature appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

In H1 2024, mergers and acquisitions (M&A) activity in the tech-enabled media and marketing sectors continued to rise, with a 7% year-on-year (YoY) increase in volume, according to data from Ciesco, a London-based M&A advisory firm specializing in the tech, media, healthcare and sustainability sectors. This trend is expected to accelerate in the second half of the year, a sentiment that’s echoed by Collingwood, a consulting and advisory firm specializing in the media sector. Collingwood anticipates a surge in demand for live events and an increasing need for access to trusted information, fueling M&A activity in the sector. In H1 2024, 1,129 transactions were announced in the technology and media sectors, representing a 7% YoY increase in deal activity and a 9% increase compared to H1 2022, Ciesco reports. This growth demonstrates a rebound in M&A deals after years of subdued activity. During the period, traditional media saw the highest YoY increase in buyer interest, followed by agency services, and, events and experiential. Conversely, customer relationship management, digital agency and martech experienced the biggest YoY decline. H1 2024 – Tech and media M&A activity by sub-sector (volume), Source: Ciesco, Jul 2024 Key trends and predictions Ciesco outlines several key trends shaping the tech-enabled media and marketing sector this year. In particular, it highlights that AI advancements are transforming areas such as enterprise data management, content production, forecasting and customer experience. These technologies are enhancing efficiency and driving innovation in the sector. Ciesco also highlights the booming influencer marketing industry which has been fostering personalized, authentic engagement between brands and consumers. This sector has proven resilient amid economic uncertainty and an increasingly crowded space, with spending rising roughly 3.5 times faster in 2023 than social ad spending, according to Emarketer’s July 2023 forecast. Finally, spending on events and experiential marketing is experiencing a strong post-COVID-19 resurgence. A recent study by experiential marketing agency Gradient reveals that 80% of the 750+ senior brand marketers polled have increased their experiential marketing budgets so that they now account for 10-30% of their overall marketing spend. This surge underscores the growing emphasis on immersive marketing strategies and creating memorable, engaging experiences for consumers. Echoing Ciesco, Collingwood notes that demand for live events is rebounding as both audiences and sponsors continue to place value on the capacity of live events to help them learn, network, and ultimately forge business partnerships. This has spurred increased M&A activity in the events segment representing over 50% of 2023 transactions. Another trend outlined by Collingwood is the increasing focus on sophisticated marketing services. There is strong interest in businesses that offer advanced client and sponsor propositions, with a shift towards demand generation driven by high-quality content, it says. Finally, Collingwood notes the growing need for access to trusted, high-quality information, especially in the business-to-business market, highlighting opportunities to leverage quality content to engage audiences, and address currently underserved audience needs. Key areas where information gaps exist include regulatory information, information on industry best practices, information and suppliers and information on emerging technologies. Types of information that C-suite and vice presidents think are currently underserved by existing information sources, Source: Plural Strategy B2B audience survey 2023, Collingwood Notable media deals announced so far this year: In June, Keleops, a leading European online tech media company, announced its acquisition of Gizmodo, a renowned tech media company. This acquisition, previously under the ownership of G/O Media and Boston-based private equity firm Great Hill Partners, aims to bolster Keleops’ position in tech journalism and expand its reach within the industry and internationally. In July, Britain’s Informa announced that it had reached a deal to buy Ascential, a company specializing in events, intelligence and advisory services for the marketing and fintech industries, for GBP 1.2 billion (US$1.6 billion) in cash. This acquisition is significant because, while the media industry struggles to generate revenue from advertising, live events like those hosted by Ascential are a bright spot for growth. Ascential is one of the last large-scale events companies, running prestigious event series such as Lions and Money20/20. In August, Red Ventures, an American digital media and marketing firm, announced that it was selling its tech news and reviews site CNET to Ziff Davis, a publicly-traded digital marketing behemoth, in a deal valued at over US$100 million, sources told Axios. The development marked a surprising twist for CNET, which had previously bought Ziff Davis, then a tech magazine company, in a deal worth US$1.6 billion more than 20 years ago. Founded in 1994, CNET is an American media website that publishes reviews, news, articles, blogs, podcasts and videos on global technology and consumer electronics. American news website Axios signed in August 2022 a deal to sell to its most recent lead investor, Cox Enterprises. The cash deal valued the company at US$525 million and included an additional new investment of US$25 million in Axios’ media arm to help the company expand across its local, national and subscription news products. Axios is a news website founded in 2016 by former Politico journalists Jim VandeHei, Mike Allen, and Roy Schwartz. It’s known for its concise and reader-friendly format, designed to deliver important information quickly and efficiently. In January Thomson Reuters has acquired World Business Media, a London-based provider of subscription-based, cross-platform editorial coverage for the (re)insurance industry. In February, US asset manager Franklin Templeton announced a funding round for Blockhead, a Singapore-based digital asset media firm. Blockhead said it will use the proceeds to support the growth and development of blockchain technology and digital assets, and to evolve its business model to become a leading digital asset research platform in the region. Launched in 2022, Blockhead currently operates a news publication covering global stories from the blockchain and digital assets industry, with an Asian focus. Despite the robust M&A activity, 2024 has also seen notable media closures: In June, Fintech Nexus, a fintech media company previously known as LendIt, said that it was shutting down after 11 years of operation and filing for bankruptcy. The company was launched in 2013 to foster collaboration in the online lending industry and quickly grew to host large fintech events across the US, the UK, Europe, China and Latin America. However, external challenges, including the COVID-19 pandemic and the fintech funding downturn, led to financial difficulties, culminating in the sale of its events business 2023 and now a full closure. London-based fintech news website Altfi announced in January that it was shutting down after ten years of operation, citing “severe headwinds over the last 18 months.” Set up in 2013 by finance journalist David Stevenson, a columnist at the Financial Times (FT), Altfi provided market-leading news, opinion, insights and events for the alternative finance and fintech community. It organized a series of corporate events in the UK, including the AltFi Lending Summit, the AltFi Awards and the Money Talks webinars. In the Philippines, television network CNN Philippines officially ceased operations on January 31, citing “serious financial losses” which was “worsened by the COVID-19 pandemic,” inside sources told Philstar.com.     Read also: Fintech, Tech and Crypto Media Sector Shows Resilience with Notable Strategic Acquisitions and Funding Rounds in 2023 – Fintech Schweiz Digital Finance News – FintechNewsCH Fintech and Finance Firms Snap Up Media Companies to Gain Audience – Fintech Schweiz Digital Finance News – FintechNewsCH   Featured image credit: edited from freepik The post M&A Deals Increase in Tech-Enabled Media Signaling Recovery and New Opportunities appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Summa Equity, a Stockholm-based private equity firm, has acquired NetGuardians, a Swiss-based provider in AI-driven fraud prevention and anti-money laundering solutions. This opens an opportunity for a collaboration between NetGuardians and Intix, another Summa portfolio company specializing in Know Your Transaction (KYT) data management. The new group is poised to advance the financial security landscape by driving the development of next generation financial crime solutions. NetGuardians has earned widespread recognition for its pioneering approach, underpinned by its proprietary 3D AI technology. Building on this foundation, the synergy between NetGuardians fraud detection technology and Intix’s financial data management make sense. Gisle Glück Evensen Speaking on the new group, Gisle Glück Evensen, Partner at Summa commented: “Money laundering and fraud pose significant challenges to the financial system and society through the harmful activities they support. The combination of Intix and NetGuardians represents the next generation of tools in the effort to combat these. We are very enthusiastic about the continuation of this journey.” Joel Winteregg Speaking on the new group, Joël Winteregg, NetGuardians CEO and future group CEO commented: “Today marks a transformative moment for Intix and NetGuardians. This strategic union provides a unique approach to addressing financial crime challenges, tackling issues from data pipeline and traceability to advanced AI analytics. We are not just expanding our reach but also deepening our commitment to secure, sustainable financial practices”.   Following the acquisition, Sergi Herrero, former Chair of Intix will assume the role of Chairman of the group. NetGuardians’ initial co-founders will play pivotal roles in this new venture and Raffael Maio will spearhead the group’s strategy. Both will be instrumental in shaping the development and strategic direction of the organization.   Featured image credit: Gisle Glück Evensen, Partner at Summa and Joel Winteregg, CEO, Co-Founder and CSO of NetGuardians. Edited from freepik The post Private Equity Firm Summa Acquires NetGuardians appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Falling interest rates are posing challenges for digital banks, particularly in regions like Europe, the US, and Latin America. These digital banks, which previously thrived on high margins from savings and loans, now face pressure on their profitability models as central banks worldwide begin lowering rates. In Europe, digital banks are responding to this shift by prioritizing product diversification and innovation to sustain growth, according to a new analysis by C-Innovation, a French fintech-focused research firm. The report, released on September 23, explores how digital banks around the world have benefited from high interest rates and what the future holds as rates begin to fall. In Europe, it highlights that leading digital banks are implementing different strategies to adapt to this new environment, with some leveraging advanced technology to improve operational efficiency, while others opt instead to expand their product offerings to diversify revenue streams. Following the global inflation surge that started in 2021, central banks around the world raised interest rates, often at unprecedented speed to bring inflation rates back to target. During this period of elevated interest rates, digital banks capitalized on the widening gap between the interest rates they offered on savings accounts and the higher rates they charged on loans, allowing them to generate considerably more revenues, significantly boosting profitability. They also took advantage of higher savings rates to offer more attractive returns than traditional banks, which drew in new customers, strengthened their customer base and increased their liquidity. But in 2024, central bankers began the process of easing up on the aggressive stances they took to quell high inflation, lowering interest rates as inflation slows and falls within sight of their targets. In Europe, the European Central Bank cut its main interest rate to 3.5% in September 2024, marking the second reduction this year following a move in June. Though economists believe rates may not return to their ultra-low levels of 0.25% seen before, C-Innovation argues that this new baseline of around 3% could still offer digital banks opportunities to capture decent margins. Reuters ECB interest rates chart, Source: Reuters, Sep 2024 EU digital banks introduce innovation offerings Across the European Union (EU), digital banks are already adapting to this evolving landscape. Bunq, a Dutch neobank, is leading the way with innovative offerings such as Freedom of Choice, which allows users to control deposit investments, and MassInterest, which offers a 3.36% bonus rate to reward savers. Additionally, Bunq’s entry into the insurance market in May will allow it to diversifying its income streams and reduce reliance on interest margins. Bunq boasts over 12.5 million customer, and total deposits of over EUR 8 billion. This year, it plans to increase its global headcount by over 70% to expand into new regions including the UK and the US, Bunq CEO and co-founder Ali Niknam told CNBC last month. In Germany, N26 has expanded into investment products, offering services such as stock and exchange-traded fund trading, as well as portfolio management. This strategic move not only diversifies its revenue streams but also attracts a broader customer base, particularly those looking for easy access to financial markets, C-Innovation says. It also positions N26 as a more comprehensive financial platform that meets both banking and investment needs. N26 has introduced several new products this year, including Joint Accounts, which allow N26 customers to manage both their personal finances and finances shared with a partner, as well as Instant Savings accounts, which offer customers in 13 European markets up to 4% interest on deposits. N26 serves eight million customers across 24 European markets. The digital bank reported a 27% increase in revenues to more than EUR 300 million in 2023, and says it is on track to become profitable in the second half of 2024. Klarna, the Swedish buy now, pay later (BNPL) giant, is a standout example of how digital banks are using advanced technology to stay ahead. The company has implemented solutions that leverage artificial intelligence (AI) to not only reduce operational costs and remain competitive as margins tighten, but also enhance customer experience in the increasingly competitive BNPL space. These solutions include Kiki, Klarna’s bespoke internal AI assistant. In its first month, Kiki handled 2.3 million conversations, managing two-thirds of Klarna’s customer service interactions. It effectively performs the work of 700 full-time agents, matching human staff in customer satisfaction scores. Used by 87% of Klarna’s employees, Kiki responds to approximately 2,000 inquiries daily, significantly streamlining operations. Klarna has also introduced an AI assistant for its 150 million customers via its app. This assistant is designed to enhance the shopping and payments experience and is capable of managing a range of tasks, including multilingual customer service, managing refunds and returns, and fostering healthy financial habits. Digital banks in the UK put a focus on product diversification In the UK, banks like Starling Bank, Revolut and Monzo are putting a strong focus on product diversification and innovation, allowing them to remain profitable in a lower-rate environment. Revolut continues to offer a broad suite of services, including travel insurance, stock trading, and budgeting tools, which help diversify its revenue streams and reduce reliance on traditional banking margins. The digital bank has launched a number of new products this year, including Mobile Wallets, a remittance service; Revolut X, a stand-alone crypto trading platform; and Revolut BillPay, a new feature designed to help businesses manage and pay bills to suppliers in over 150 destinations with just a few clicks. It’s now working on a new stablecoin initiative as it seeks to expand its crypto offering. Additionally, Revolut is pursuing cross-border expansion with plans to enter the Middle East by seeking licenses to operate in the United Arab Emirates (UAE) and Dubai. This expansion will enable Revolut to offer remittance services, tapping into a region with significant growth potential. By providing such diverse financial products and expanding globally, Revolut can better withstand interest rate fluctuations, offering value-added services that go beyond core banking. Revolut, which operates in more than 40 markets globally, claims more than 45 million customers, making it one of the most prominent digital banks in the world. Revenue change by banking player, Source: Monzo Snapshot Report 2024, C-Innovation, 2024 Similarly, Monzo is positioning itself through product diversification. Recent moves include the launch of a pension consolidation product with BlackRock, which allows customers to combine pots, a free account for 6 to 15 year olds, an “industry-first” Call Status fraud prevention tool that prevents customers falling victim to impersonation scams, the Monzo Investments offering, and an instant-access savings account. Like Revolut, this broad product range enables Monzo to reduce reliance on interest-based income by generating fee-based revenue from various financial services. Moreover, its Monzo for Under 16s offering allows it to cultivate future loyalty, which will be crucial in maintaining a solid customer base as interest margins shrink, C-Innovation says. Monzo claims it is the 7th largest bank in the UK, boasting more than 10 million customers. The digital bank achieved its first full year of profitability in 2024, reporting a pre-tax profit of GBP 15.4 million (US$20.5 million) for the financial year ending March 31, 2024. Monzo’s product offerings, Source: Monzo Bank Profile 2024, C-Innovation, 2024 Starling Bank as well is diversifying its revenue streams, focusing heavily on its expansion into business banking and the provision of tailored services for small and medium-sized enterprises (SMEs). This helps cushion the effects of reduced lending margins. The digital bank has also been franchising its software to other banks through a service called Engine, with recent partnerships in Australia with AMP and Romania with Salt Bank highlighting the bank’s commitment to scaling this technology​. Starling Bank, which offers personal, business, and joint accounts through a mobile app, has 4.2 million customers and serves about 9% of the UK’s SME banking market. The digital bank has been profitable for three years now. Major SME digital banks in the UK, Source: Monzo Bank Profile 2024, C-Innovation, 2024   Featured image credit: edited from freepik The post European Digital Banks Focus on Innovation Amid Lower Interest Rates Challenge appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Selma Finance hat eine Crowdinvesting-Kampagne gestarted, mit der Möglichkeit Teil vom Schweizer Fintech-Unternehmen zu werden. Seit letzter Woche Mittwoch läuft Selmas Crowdinvesting-Kampagne. Schon nach 25 Minuten war bereits die 500 000 Euro Marke erreicht. Nach nur einer Stunde hatte die Kampagne 608’810 Euro eingesammelt. Über Nacht hat sich diese Summe dann nochmals verdoppelt, teilt das Unternehmen mit. Knapp 24h nach Start der Kampagne waren 1.2 Millionen Euro zusammengekommen. Stand 14:30 Uhr am 30.09.2024 hat die Kampagne über 1.42 Millionen Euro eingesammelt. Aufgrund der weiterhin hohen Nachfrage hat Selma sich dazu entschlossen, nun das ursprüngliche Kampagnenziel anzupassen und die 1.5 Millionen Euro anzupeilen. Mit den Mitteln wird die digitale Vermögensverwalterin Selma AI weiterentwickeln, das Angebot erweitern und die Position von Selma Finance als führende Finanzberaterin der Schweiz stärken. Patrik Schär “Unser Vorteil gegenüber anderen Schweizer Fintech-Unternehmen ist, dass unser Kerngeschäft bereits profitabel betrieben werden könnte. Mit unserer Crowdinvesting-Kampagne wollen wir nun Menschen einbinden, die an unsere Vision einer demokratisierten und technologiegestützten Finanzberatung glauben und in unsere Weiterentwicklung investieren wollen“, erklärt Patrik Schär, CEO von Selma.   so Patrik Schär.   The post Selma Finance sammelt 1.2 Millionen via Crowdinvesting-Kampagne in 24 Stunden appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

More than 40 private sector financial firms, convened by the Institute of International Finance, will join the Bank for International Settlements and a group of leading central banks in Project Agorá to explore how tokenisation can enhance wholesale cross-border payments. The BIS and the IIF selected a diverse set of firms from applicants that met the eligibility requirements and other criteria laid out in the public call for participation. Participating firms must be regulated in a participating jurisdiction as a commercial bank, payment services provider, or financial market infrastructure company; be significantly involved in cross-border payments; and have innovation expertise. These firms represent a diversity of private sector partners in terms of business models, institution size, expertise and geography. Participating private sector institutions are: (in bolt the Swiss one’s) Amina Bank Banco Santander Banorte Banque Cantonale Vaudoise Basler Kantonalbank BBVA BNP Paribas BNY CaixaBank Citi Crédit Agricole CIB Deutsche Bank AG Eurex Clearing AG Euroclear S.A./N.V. FNBO Groupe BPCE Hana Bank HSBC IBK Intercam Banco JPMorgan Chase Bank N.A. KB Kookmin Bank Lloyds Banking Group Mastercard Mizuho Bank Monex MUFG Bank Ltd. NatWest Group NongHyup Bank PostFinance Ltd. SBI Shinsei Bank Ltd. Shinhan Bank SIX Digital Exchange (SDX) Standard Chartered Sumitomo Mitsui Banking Corporation Swift Sygnum Bank TD Bank N.A. UBS Visa Woori Bank   Project Agorá will now begin the design phase of the project. Project Agorá (Greek for “marketplace”) is structured as a public-private collaboration. It brings together seven central banks: Bank of France (representing the Eurosystem), Bank of Japan, Bank of Korea, Bank of Mexico, Swiss National Bank, Bank of England and the Federal Reserve Bank of New York. They will work in partnership with the selected financial firms, and the IIF will act as the private sector convener. The post 6 Swiss Banks and SIX Join BIS Tokenisation Project Agorá appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

By 2029, account-to-account (A2A) payments are projected to reach 186 billion transactions, marking a staggering 209% from 60 billion in 2024, new estimates by Juniper Research show. This growth is expected to be driven by advances in instant payment rails and open banking technologies, which are reshaping the payment landscape. A2A payments refer to the direct transfer of funds from one bank account to another, without the need for intermediaries such as card networks or third-party payment processors. These transactions typically rely on traditional bank payment systems such as ACH (Automated Clearing House) in the US or SEPA (Single Euro Payments Area) in Europe, bypassing credit card and third-party payment platforms. A2A payments have increased in popularity in recent years due to their cost-effectiveness, security, and speed. In 2023, they accounted for 7% of global e-commerce payments last year, according to the Global Payments Report 2024 by Worldpay. Countries including Finland, Malaysia, the Netherlands, and Nigeria led the way in adoption, with A2A payments standing as the leading payment method for e-commerce transactions. Juniper Research predicts that A2A payments will continue to grow through 2028, fueled by the widespread adoption of open banking initiatives across governing bodies worldwide. Asia-Pacific (APAC) is projected to make up for the bunch of these transactions, accounting for more than half of all A2A consumer transactions by then, outpacing both the Americas and Europe. Real-time payments and open banking fuel the growth of A2A transactions The rise of A2A payments has been largely propelled by the development of instant payment rails, Juniper Research says. Historically, traditional A2A payments faced delays in fund transfers, often taking several business days through systems like SEPA. However, real-time payment systems such as the UK’s Faster Payments and the US’s RTP (Real-Time Payments) allow for instantaneous or near-instantaneous transfers between bank accounts. This speed has made A2A payments highly appealing for situations where speed is crucial, such as paying bills, transferring money between individuals, or settling business invoices, leading to increased adoption. While instant payment rails are crucial to the rise of A2A payments, the report notes that open banking is also playing a significant role by providing the secure infrastructure that allows banks and financial institutions to share data with third-party providers. Open banking enables third-party providers to initiate payments directly from consumers’ bank accounts, allowing for the development of innovative solutions, including payment initiation services (PIS). These third-party services facilitate the initiation of payments directly from a customer’s bank account, offering more seamless payment experiences, particularly in e-commerce. The adoption of open banking has seen steady growth in recent years, especially in Europe. In the UK, open banking penetration reached 13% of digitally active consumers by January 2024, with small businesses reporting an even higher rate of 18%, according to the UK’s Open Banking Limited (OBL). The agency estimates that there are now 10 million active users of open banking-powered financial tools and payment apps in the UK. In Europe, about 5% of digital consumers in France, Spain, Italy, and Germany had used open banking in 2022, according to Rolands Mesters, CEO of open banking provider Nordigen. Globally, Juniper Research estimates that there were a little less than 100 million open banking payments users in 2023. By 2027, that number is projected to reach 400 million, and by 2028, it could approach 600 million. Number of open banking payment users globally (million), 2023-2028, Source: How open banking is driving A2A payments, Juniper Research, Sep 2024 Europe: A leader in open banking Europe is recognized as a pioneer and leader in open banking due to proactive regulation, technological innovation and the collaborative financial ecosystem that has emerged in the region. The bloc introduced in 2015 the Revised Payment Services Directive (PSD2), a regulatory framework designed to foster competition and innovation in the financial services industry. It mandated that banks open their customers’ financial data to authorized third-party providers with the customer’s consent, effectively kickstarting the open banking movement. The European Union (EU) is now working on an open finance framework, expanding the access and reuse of customer data across a broader range of financial services, including loans, investments, savings, pension schemes, real-estate and even crypto-assets. The European Commission (EC) put forward the legislative proposal in June 2023. The proposal is now going through the legislative process, including discussions and approvals by the European Parliament and the Council of the EU. These initiatives are part of the EU’s Digital Finance Strategy, a development plan adopted in September 2020 aimed at modernizing the European financial sector by embracing digital transformation. Other key initiatives under the plan include the Regulation on Markets in Crypto-assets (MiCA), the Digital Identity Framework, and the Instant Payments Regulation. The Instant Payments Regulation, which entered into force in April 2024, requires banks and payment service providers to offer instant payment services in euros, ensuring that transactions are processed within seconds, 24 hours a day, all year round. It also mandates that instant payments must be offered to customers at the same cost as standard transfers. Though instant payments bring about a number of benefits for both consumers and businesses, the EC estimates that only 11 % of all money transfers in euro are instant. One in three EU payment service providers does not offer them, and some 70 million payment accounts in the euro area do not allow their holders to use instant transfers.   Featured image credit: edited from freepik The post Real-Time Payment Infrastructure, Open Banking Initiatives Drive Growth in A2A Transactions appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Pelt8, a Switzerland based sustainability reporting solution provider, has entered into a strategic partnership with the consulting firm EBP. Additionally, Tenity and SICTIC investors have joined the round as follow-on investors. This collaboration aims to significantly strengthen the reporting and sustainability efforts of medium and large companies in Switzerland and internationally. To reinforce this commitment, EBP has acquired a minority stake in Pelt8. The partnership comes at a critical time, with increasing market-driven and regulatory pressure on corporate sustainability. Pelt8’s comprehensive solution supports all sustainability reporting standards. Currently, the Swiss Federal Council is consulting on extending reporting requirements that are in line with new EU CSRD requirements. If passed, it is estimated that an additional 3,000 Swiss companies will need to report on their sustainability by 2027. Julian Osborne Julian Osborne, CEO of Pelt8, expressed his enthusiasm: “We are thrilled about our partnership with EBP. With a very similar impact-driven culture, their extensive experience and expertise in sustainability consulting significantly enhance our ability to reach our clients’ sustainability goals.” Christoph Zulauf Christoph Zulauf, CEO of EBP Switzerland, emphasizes: “Pelt8’s solution and team perfectly complement our Corporate Sustainability Consulting offering. The partnership with a young SustainabilityTech company marks the beginning of a new chapter for EBP.”   The post EBP Acquired Minority Stake in Pelt8 appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Swiss equity token specialist Aktionariat AG and securities firm Taurus SA announced a new partnership. Aktionariat’s tokenization tools and Taurus Digital Exchange (TDX) organized trading facility are natural complements. Under the newly announced partnership, Taurus will support selected shares tokenized with Aktionariat on the Ethereum blockchain and Aktionariat will offer client companies a smooth path towards being admitted to trading on TDX as they grow in market capitalization and match admission criteria. This collaboration brings together Aktionariat’s expertise in tokenizing Swiss companies’ equity with Taurus’ institutional-grade trading technology. It aims to increase liquidity and unlock value for tokenized SMEs and their shareholders by providing access to TDX’s network of banks, professional investors, and retail clients. Murat Ögat Murat Ögat, CEO of Aktionariat, said: “Our mission is to enable companies to leverage the power of blockchain-based financing. While we already offer tools to enable the sale and limited informal trading of security tokens, there is a lack of licensed marketplaces for security tokens. Taurus fills this gap with its digital marketplace. Having a smooth path to access this market will provide value to our clients and also strengthen the usefulness of our offering for their investors.”   Victor Busson Victor Busson, CMO at Taurus, commented: “By combining Aktionariat’s expertise with our TDX marketplace, we’re helping to create a robust ecosystem for issuers and investors alike. This collaboration demonstrates how tokenization can increase liquidity and accessibility for the private capital market. We’re particularly excited about the potential for companies like RealUnit to leverage our platform, showcasing the tangible benefits of tokenization for both issuers and investors.” Among the first tokenized SMEs expected to be admitted for trading on TDX following this partnership is RealUnit Schweiz AG, an investment company focused on real assets, with several additional companies expected to follow in 2025 as the ecosystem of tokenized SMEs expands. RealUnit tokenized its shares with Aktionariat in April 2022 and used its tools to allow investors to hold them using any Ethereum-based crypto wallet. Investors could choose between classic bearer shares and registered shares as tokens – a first in the Swiss capital market. Dani Stüssi Dani Stüssi, CEO of RealUnit Schweiz AG, said: “As one of the first Swiss companies to offer tokenized instruments, we’re excited to be at the forefront of this partnership between Aktionariat and Taurus. Being admitted to trade on TDX is a natural next step in our journey to increase accessibility and liquidity for our investors. This move aligns perfectly with our mission of opening up access to actively managed real asset investments.” The collaboration is expected to go live in November, enabling the first Aktionariat-tokenized SMEs to begin trading on TDX.   Featured image credit: edited from freepik The post Taurus Partners with Aktionariat to Launch Token Secondary Market for SMEs appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

The European Investment Bank (EIB) is providing €220 million in financing to Nexi Group, an Italy based PayTech company, to support innovation in the digital payments sector. The agreement was announced in Milano by EIB Vice-President Gelsomina Vigliotti and Nexi Group CFO Bernardo Mingrone. Nexi will use the EIB funds to develop and manage projects aimed at modernising digital payments in Europe, and to finance specific initiatives that leverage the expertise of Nexi Digital, a European technological innovation hub created in collaboration with Reply, an Italian company and European leader in digital transformation. The identified projects are fully aligned with Nexi Group’s environmental, social, and governance (ESG) objectives, which have already been communicated to the market. These include promoting digital payment innovation across Europe, creating jobs for young people and in disadvantaged areas, and enhancing environmental sustainability by optimizing data centres and developing cloud-based activities. This is the first EIB loan granted to a publicly listed company in the digital payments sector, underscoring Nexi’s commitment to advancing the digital and technological transition. Gelsomina Vigliotti EIB Vice-President Gelsomina Vigliotti commented: “This operation represents a major step forward in the development of Europe-wide digital payment solutions, helping to reduce the use of cash and prevent fraud and tax evasion. This operation highlights the EIB’s commitment to promoting digitalisation and innovation in businesses and public sector organisations, which are key elements of the National Recovery and Resilience Plan.” Bernardo Mingrone Nexi Group CFO Bernardo Mingrone added: “We are proud that the European Investment Bank has recognised our ongoing commitment to the development of innovative products and services promoting digital payment reliability and security, two key requirements for rolling out these services in the European countries where we operate. This agreement is further confirmation that even major players like the EIB recognise Nexi’s vital role in developing and supporting digitalisation in Europe.”     Featured image credit: EIB Vice-President Gelsomina Vigliotti The post EIB Provides €220 Million Financing to Italian Paytech Company Nexi appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Visa announced it has signed a definitive agreement to acquire Featurespace, a developer of real-time artificial intelligence (AI) payments protection technology that prevents and mitigates payments fraud and financial crime risks. The acquisition of London based Featurespace will complement and strengthen Visa’s portfolio of fraud detection and risk-scoring solutions used by clients around the world to grow and protect their businesses. Although Visa did not disclose the acquisition’s value, a recent report from SkyNews, citing sources, estimated it to be around $935 million. Since its inception out of Cambridge University’s engineering department, Featurespace has developed innovative algorithmic-based solutions to analyze transaction data and detect even the most elusive fraud cases. Antony Cahill Antony Cahill, Global Head of Value-added Services at Visa, said: “Providing our clients with solutions that can adapt to and anticipate the changing threat landscape is of the utmost importance. Featurespace’s strong foundation in AI will enhance our existing product portfolio and enable us to address our clients’ most complex and pressing challenges. We look forward to welcoming the Featurespace team to Visa.” The combined expertise of Visa and Featurespace will enable clients to manage fraud in real-time and further protect the payments ecosystem using AI-fueled solutions. This investment builds on Visa’s commitment to ecosystem security. In the last five years alone, Visa has invested billions of dollars in technology, including to reduce fraud and enhance network security. Dave Excell Dave Excell, Founder of Featurespace, added: “Over the past 12 years we have served the financial services industry, building a company that has gone from strength to strength, and we are thrilled to become a part of Visa. With Visa, we can bring the innovation, integrity and purpose of our platform and our team to more payment service providers and ultimately, stop more people from becoming victims of financial crime.” The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals. The transaction is expected to close in fiscal year 2025 and will provide significant benefits to financial institutions, consumers, and the wider payments industry.   Featured image credit: Antony Cahill, Global Head of Value-added Services at Visa and Dave Excell, Founder of Featurespace The post 1 Billion USD Takeover: Visa to Acquire Payment Fraud Protection Provider Featurespace appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Innovation mentors support SMEs by conducting an initial analysis of their innovative idea as well as helping them understand their potential and find research partners. They are very familiar with innovation support offers in Switzerland and can help their customers apply and develop their idea. The mentors also facilitate access for Swiss SMEs to the skills and technologies available at Swiss universities and colleges. Thanks to their extensive network, they enable SMEs to find partners to carry out innovation projects. To work as a mentor, the following qualities are essential: Be able to provide sound advice to innovative companies; Benefit from extensive experience in defining and implementing product, service and process development strategies; Be able to recognise the critical success factors of an innovation project and support partners in defining the project; Benefit from a strong network at national, cantonal and regional level, in particular with Swiss universities and colleges, as well as with innovation support and economic promotion organisations. You can find more details on the Innosuisse’ profiles in their legal basis. When it comes to selections, a diverse and inclusive balance is essential to the mentor pool, especially with regard to gender parity, diversity of ages and languages. This is why female applicants are particularly encouraged to apply if interested. This call for applications is an opportunity: To support Swiss SMEs on their innovation path; Make valuable contacts and expand your network by supporting exciting projects; Actively contribute to shaping the future of business and research. Apply by 30 November 2024 here  Only complete applications, submitted will be considered. The required documents are as follows: CV; Cover letter; Declaration of possible conflicts of interest, including: professional activities; activities in management and supervisory bodies, as well as advisory boards and similar bodies of Swiss and foreign corporations, institutions and foundations under private and public law; advisory or expert activities; permanent consulting or advisory activities for Swiss or foreign interest groups. Accreditation Process Following an oral interview in December 2024, the Innovation Council will select the successful candidates and announce its decision in February 2025. The chosen mentors will begin their work in June 2025.   Featured image credit: edited from freepik The post Innosuisse is Looking for Innovation Startup Mentors appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Between 2015 and 2023, more than US$350 billion of venture capital (VC) funding was invested in the fintech sector globally, with the US and Canada alone accounting for 39% of total fintech funding. North America also has much higher funding per capita than other regions, highlighting the concentration of fintech funding activity. But in recent years, fintech funding in the Middle East and North Africa (MENA) and Latin America and the Caribbean (LAC) has experienced significant growth on the back of booming fintech innovation and soaring adoption of digital financial services. Despite this growth, there is still a mismatch between fintech funding and future growth potential in these regions, representing a significant opportunity for investors worldwide, a new paper by the World Economic Forum (WEF) says. The whitepaper, released on September 04 and produced in collaboration with McKinsey and Company, examines global fintech funding trends and delves into where fintech funding gaps exist. It highlights the surge in fintech funding that regions including MENA and LAC have recorded over the past few years. Between 2015 and 2023, LAC saw the highest funding compound annual growth rate (CAGR) across all major regions, reaching 37%. MENA, meanwhile, recorded the second highest CAGR with 33%, while the volume of fintech VC funding in the region more than tripled from US$600 million to US$1.9 billion between 2020 and 2023. Fintech VC funding, and funding-to-GDP ratio by region (2015 to 2023), Source: Fuelling Innovation: Closing Fintech Funding Gaps, World Economic Forum, Sep 2024 According to the paper, rising fintech funding activity in MENA and LAC has been driven by booming adoption of digital financial services. In LAC, there were more than 300 million users of digital payments and more than 30 million users of digital banks in 2021, mostly concentrated in Brazil and Mexico. In MENA, this growth was driven by a series of successful fundraisings by regional fintech leaders, including the birth of three unicorns in 2023: buy now, pay later (BNPL) companies Tabby and Tamara, both from Saudi Arabia, and microfinance and payment startup MNT-Halan from Egypt. These companies have managed to garner significant customer bases of 14 million users for Tabby, 10 million for Tamara, and seven million for MNT-Halan. The MENA region has a young, educated and growing population and some of the world’s highest mobile, internet and smartphone penetration rates, making the region for a fertile ground for financial innovation. An untapped opportunity When looking at fintech funding between 2020 and 2023 and comparing it to estimated future revenue by region, the WEF paper notes that fintech funding was not distributed according to future growth potential in different region. Between 2020 and 2023, Europe and North America received more fintech funding than their projected 2028 revenue, with Europe getting 109% and North America 180% of expected future earnings. In contrast, regions like Asia-Pacific (APAC), LAC and MENA received much less, only 67%, 70%, and 63% of their anticipated future fintech revenue, respectively. These findings suggest that global VC funding does not align with the emerging growth opportunities. This is despite forecasts that emerging regions such as APAC, LAC and MENA are projected to account for a significant share of the global fintech revenue by 2028 at 30%, 9% and 6%, respectively. Fintech funding to future revenue (indexed worldwide to 100), Source: Fuelling Innovation: Closing Fintech Funding Gaps, World Economic Forum, Sep 2024 This mismatch between fintech funding and future growth potential means that regions like LAC and MENA are currently underfunded, even though they are expected to see substantial growth in the coming years. This presents a significant opportunity for for investors. Closing the funding gaps Finally, the WEF paper formulates a series of recommendations to close these funding gaps, outlining five pathways. The first pathway involves investing in digital public infrastructure by developing core building blocks centered on digital identity, payments, data sharing and emerging technologies. The second pathway involves enhancing regulatory clarity and encouraging regional collaboration. This includes improving certainty and clarity in banking regulation, launching initiatives such as regulatory sandboxes, and encouraging interoperability and regulatory standardization. The third pathway involves nurturing talent by establishing local hubs for global talent, and strengthening support networks including incubation and acceleration programs, and innovation hubs. The fourth pathway involves developing local financing capabilities by broadening the investor base beyond traditional VC funds to include corporate venture capital (CVC), minority equity investment from incumbent banks, sovereign wealth funds with growth equity expertise, and family offices. Governments can also play an important role in fostering innovation by deploying policy instruments to boost effective investment returns and attract more capital from investors to fund various industries. Finally, the fifth pathway involves encouraging sustainable fintech growth strategies by leveraging emerging technologies such as artificial intelligence (AI) and demonstrating a clear path to profitability.   This article first appeared on fintechnews.ae Featured image credit: edited from freepik The post Despite Promising Fintech Growth, MENA and LatAm Remain Underfunded Regions appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Die Luzerner Kantonalbank (LUKB) bietet ab dem 1. Oktober 2024 ihren Kunden die Ein- und Auslieferung für die Kryptowährungen Bitcoin und Ethereum an. Bereits im Juni 2024 hat die LUKB einen Kryptoanlageplan auf den Markt gebracht und ergänzend zu Bitcoin, Ethereum und USD Coin neu auch Investitionen in die Kryptowährungen Chainlink und Polygon ermöglicht. Ab dem 1. Oktober 2024 können Kunden der LUKB ihre Kryptowährungen Bitcoin und Ethereum aus anderen Wallets in ihr Wertschriftendepot bei der LUKB übertragen. Die LUKB wird diese Dienstleistung schrittweise einführen. Sie ergänzt damit das bestehende Angebot im Bereich des Handels und der Verwahrung von Kryptowährungen. Kryptoanlageplan seit Juni 2024 Der bereits im Juni 2024 lancierte Kryptoanlageplan ermöglicht ein regelmässiges und automatisiertes Investieren in Kryptowährungen bereits ab einem Betrag von 10 Franken. Der Kauf von Kryptowährungen erfolgt automatisiert und auf Wunsch der Kundschaft per Dauerauftrag. Der Kryptoanlageplan ist nahtlos in das Kernbankensystem und das E-Banking der LUKB integriert. Ausbau der Kryptowährungen Ergänzend zu den bisher verfügbaren Kryptowährungen Bitcoin, Ethereum und USD Coin hat die LUKB ebenfalls im Juni 2024 ihr Angebot um Chainlink und Polygon erweitert. ISAE zertifizierte Verwahrung Die LUKB setzt bei der Verwahrung von Kryptowährungen auf anerkannte Sicherheitsstandards. Die Verwahrung der eingelieferten Kryptowährungen erfolgt in einer ISAE 3000 zertifizierten Infrastruktur. Für die Kunden besteht somit Gewähr, dass ihre Kryptowährungen bei der LUKB sicher verwahrt sind. The post LUKB bietet neu sichere Ein- und Auslieferung von Kryptowährungen an appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

In 2023, cryptocurrency fraud continued to surge globally as rising adoption of digital currencies attracted scammers seeking to exploit the hype and target credulous users. Last year, the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3) received a record of 69,468 crypto-related complaints, a 33.6% increase from 2022’s ~52,000, new data released by the division show. Losses soared by a whopping 45% year-over-year (YoY) to an all-time high of US$5.6 billion. Though crypto fraud represented only 10% of total financial fraud complains in 2023, it accounted for nearly 50% of total fraud losses, highlighting the disproportionately severe financial impact of these schemes compared to traditional fraud. IC3 complaints with reference to cryptocurrency, Source: 2023 Cryptocurrency Fraud Report, US Federal Bureau of Investigation (FBI), Sep 2024 Investment fraud emerges as top crypto fraud type Investment fraud fueled much of the rise in crypto-related scams, emerging as the most reported crypto scheme in 2023. Last year, it accounted for nearly half of all complaints received and a staggering 71% of the losses associated with these complaints. The increasing popularity of cryptocurrencies, driven by the potential for high returns and belief in blockchain’s future, is attracting fraudsters. As cryptocurrencies are increasingly perceived as viable alternatives to traditional investments, and with major companies enhancing the market’s legitimacy, scammers are exploiting this trend, taking advantage of the hype, investors’ lack of experience, and the anonymity of blockchain transactions to deceive unsuspecting individuals with promises of high returns and minimal risks. In 2023, losses from crypto-related investment fraud schemes reported to the IC3 skyrocketed from US$2.57 billion in 2022 to US$3.96 billion, a 53% increase, with many victims accumulating massive debt to cover losses from these fraudulent investments. 2023 crime types with cryptocurrency nexus – Losses, Source: 2023 Cryptocurrency Fraud Report, US Federal Bureau of Investigation (FBI), Sep 2024 While various schemes were used to defraud individuals last year, the IC3 has identified a particularly prominent method that emerged in 2023. These schemes were socially engineered and involved criminals using dating applications, social media platforms, professional networking sites, or encrypted messaging apps to establish relationships with their targets. Once trust was established, the criminals introduced the topic of cryptocurrency investment and convinced their targets to invest through fraudulent websites or apps controlled by them. The IC3 also warns of the risk of false job advertisements linked to labor trafficking at scam compounds overseas. These compounds hold workers against their will and use intimidation to force the workers to participate in scam operations. In these schemes, criminals would post false job advertisements on social media and online employment sites to target people, primarily in Asia, offering a wide range of opportunities across tech support, call center customer service, and beauty salon technicians. These opportunities would include enticing salaries, lucrative benefits as well as coverage for travel experiences and accommodation. However, upon arrival in the foreign country, victims would find their passports and travel documents confiscated, facing threats and coercion to comply with their captors. These cyber scam centers are primarily located across Southeast Asia, mainly in the poorer states of Cambodia, Laos, and Myanmar, and are operated by well-connected organized criminal groups, largely originating from China. They are often staffed by thousands of people, most of whom the criminal groups have illegally trafficked and forced to work in inhumane and abusive conditions. The UN High Commissioner for Human Rights estimates that more than 200,000 people have been trafficked into Myanmar and Cambodia to execute these online scams. Crypto kiosks and recovery as rising trends In addition to crypto investment fraud, the IC3 report also highlights the rise of crypto kiosks scams. Crypto kiosks are ATM-like devices or electronic terminals that allow users to exchange cash and cryptocurrency. They enable a more anonymous transaction than depositing the cash at a financial institution, making them attractive to criminals. Typically, criminals would instruct victims to use these kiosks to send funds, providing detailed guidance on withdrawing cash, locating a kiosk, and completing the transaction. These scams frequently involve QR codes, allowing the victim to send cryptocurrency directly to the criminal’s intended destination. According to IC3 data, the use of cryptocurrency kiosks to perpetrate fraudulent activity is increasing. In 2023, the division received more than 5,500 complaints reporting the use of cryptocurrency kiosks, with losses over US$189 million. Top crime types involving crypto kiosks in 2023 were tech support (46%), extortion (17%) and government impersonation (10%), all of which were among the top fraud complaints for the year. 2023 crime types with cryptocurrency nexus – Complains, Source: 2023 Cryptocurrency Fraud Report, US Federal Bureau of Investigation (FBI), Sep 2024 Crypto recovery schemes are another rising form of fraud, often emerging as the next iteration of a fraud scheme. In these schemes, criminals would pose as representatives from businesses offering crypto tracing services, falsely claiming they can recover lost funds. They would typically contact individuals who lost money from the scheme via social media or messaging platforms or advertise their fraudulent cryptocurrency recovery services in the comment sections of online news articles and videos about crypto; among online search results for cryptocurrency; or on social media. These fraudsters would charge an up-front fee and either cease communication after receiving an initial deposit or produce an incomplete or inaccurate tracing report and request additional fees to recover funds. To appear legitimate, they may also falsely claim affiliation with law enforcement or legal services. Global crypto activity continues to grow this year, driven by the launch of bitcoin and ether exchange-traded funds (ETFs) in the US, rising adoption in developing economies and a rebound in crypto prices. Data from Chainalysis show that between Q4 2023 and Q1 2024, the total value of global crypto activity rose substantially, reaching higher levels than those of 2021 during the crypto bull market. This growth was mainly fueled by lower-middle income countries, with nations in Central and Southern Asia, as well as Oceania (CSAO) recording the strongest increase crypto adoption. The launch of spot bitcoin and ether exchange-traded funds (ETFs) in the US this year also played a key role in boosting adoption. A recent Gemini survey reveals that 37% of US cryptocurrency owners now hold some of their crypto through an ETF. Moreover, 13% of respondents own cryptocurrencies exclusively through an ETF, underscoring the role of these instruments in driving growth within the sector and improving accessibility. The price of bitcoin increased substantially in 2023, soaring by a staggering 153% from about US$17,000 in January to about US$43,000 by the end of the year.   Featured image credit: edited from freepik The post FBI Crypto Report: Fraud Surges Driven by Investment Scams appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

SmartStream, a financial transaction management solution provider, has launched version 9 of its Air platform, offering enhanced data automation and intelligence capabilities. The new release aims to enhance data management across front-to-back office operations in financial institutions. Key features of version 9 include the Air Data and Air Cash modules, both utilising AI and machine learning technologies. Air Data automates various tasks such as data cross-checking, error detection, and trade record comparison. It also enhances internal data quality by identifying inconsistencies. The Air Cash module focuses on simplifying cash reconciliations, even handling complex scenarios. The platform prioritises security, adhering to DORA and PCI compliance standards. Built on SaaS technology, it is designed to be globally accessible, scalable, and cost-effective. Andreas Burner Andreas Burner, Chief Technology Officer, SmartStream, said, “Today, companies are overwhelmed by large amounts of complex or unstructured data, which often impedes their ability to gain critical operational and commercial insights. Version 9 transforms data into a strategic asset, enabling customers to enrich their data with greater ease. Through observational learning, it offers intelligent suggestions of how best to gain valuable insights from data – significantly boosting competitiveness. The introduction of low-code / no code environment makes it easy to deploy, operate and scale”.   Featured image credit: Edited from Freepik The post SmartStream Upgrades Its Data Automation Platform with AI Capabilities appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

IN Groupe, a French identity solutions provider, has entered exclusive negotiations to acquire IDEMIA Smart Identity, a key division of IDEMIA Group. The acquisition would create a new entity with over €1 billion in sales, bolstering IN Groupe’s presence in Europe, the Middle East, Africa, Latin America, and Asia. The combined capabilities would provide enhanced access to critical segments of the identity value chain, including chip design and advanced software, crucial for secure identity documents. This acquisition aligns with IN Groupe’s growth strategy, addressing the increasing demand for secure identity solutions, the trend towards digitalization, and the rise of European standards in the digital identity ecosystem. The French state, IN Groupe’s sole shareholder, supports the acquisition. The transaction, subject to regulatory approvals and consultations, is expected to close in 2025. Agnès Diallo Agnès Diallo, CEO of IN Groupe, said, “We are looking forward to joining forces with IDEMIA Smart Identity to create a new global leading player for advanced and secure identity solutions. This is a unique and transformative milestone for IN Groupe. It is fully aligned with our strategy to consolidate our position in physical and digital identity at a global scale to better serve our clients. IDEMIA Smart Identity’s teams, technologies and solutions, perfectly complement our own capabilities and I firmly believe that coming together would strongly benefit our customers.” Pierre Barrial Pierre Barrial, CEO of IDEMIA Group, said, “We are reaching a decisive milestone with this project to sell IDEMIA Smart Identity, one of the leading providers of secure identity solutions, to create a market leading player. With €2.5 billion in revenue, 12,500 employees, and 4,000 customers with its Secure Transactions and Public Security divisions, IDEMIA Group would embark on a new chapter in its history and remain focused on delivering mission critical solutions powered by biometrics and cryptography addressing specific market segments, and accelerating its future growth”.   Featured image credit: Edited from Freepik The post IN Groupe in Talks to Acquire IDEMIA Smart Identity appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.