The weekly Fintech Fix summary 04/05/2022
– Bobby Suman, Finance Fintech
Welcome to The Fintech Fix, where we cover the biggest stories of the financial week. Whether it’s the next game-changing trend in cryptocurrency or Blockchain technology, a new partnership set to change the global economic landscape, or an upcoming startup generating huge success, it’s is the place to follow the latest news from the future.
Hot topics – We begin this week’s roundup by congratulating Trustly on being awarded the 2022 FinTech of the Year Award for Retail Payments by readers of the FinTech Spotlight report series. Trustly Group CEO Johan Tjärnberg expressed the award as “the best possible feedback for us as we strive to ensure we are always customer-centric and in our belief in making account payments to account (A2A) a new global standard.”
Revolut has announced that it has increased the interest rate on its popular Savings Vault to 1% for Revolut Metal customers in the UK. The company has also increased the rate to 0.85% for Premium users, 0.55% for Plus users and 0.45% for standard users of the new GBP Savings Vault. Mikko Salovaara, Chief Financial Officer of Revolut, said: “With the rising cost of living, we understand that saving remains important to our customers. We are happy to offer savings products that will help people maximize the interest they can earn with the assurance of being able to access their savings instantly.
It seemed that after a prolific 2021 for NFTs, attention for non-fungible tokens was waning in 2022. However, progress continues to be made, best exemplified by Shariah Experts Ltd, a London-based halal consultancy who published the world’s first NFT-based halal certification on SouqNFT. NFTs will allow businesses to show definitive proof that their business practices and products are Halal certified, meaning they are ethical according to the principles of Islamic jurisprudence.
Despite the concerns of skeptics, NFTs have very strong use cases for bringing more transparency, auditability and authenticity to any space, as the co-founders of Shariah experts explain, Dr. Farrukh Habib and Mufti Billal Omarjee. This company hopes to guide the Muslim world towards the proposal in Web3 projects concerning cryptocurrencies, DeFi and the metaverse, as well as fintech and traditional Islamic finance.
The fact that cross-border payments are still not instantaneous, or completely free for that matter, still shocks me. EBA CLEARING, SWIFT and The Clearing House have announced their intention to launch a pilot service for immediate cross-border payments, designed with the support of banks on both sides of the Atlantic and the contribution of 24 financial institutions. The service will initially support instant payments in the US dollar and Euro corridor. It is being developed with a view to being extended to other monetary channels and payment systems.
Erwin Kulk, Head of Service Development and Management at EBA CLEARING, explained how “our main objective is to make things easier for financial institutions: the fact that there is no need to connect to a separate payment should make the service very attractive to RT1 and RTP participants of all sizes.
As we move forward into the future, Open Banking continues to evolve. With this in mind, Bonifii announced that it has chosen Mastercard as the preferred Open Banking provider for its MemberPass® to access banking data authorized by consumers, to inform the underwriting of different types of mortgage, auto, personal and small business loans.
Andy Sheehan, EVP, US Open Banking at Mastercard, noted how this technology allows credit unions to offer a digital-first method through which their borrowers can instantly provide the required information the credit union needs to make a decision. loans and replaces manual processes historically. associated with the underwriting process for both borrower and lender.
The race to Net-Zero and improving sustainability metrics has been a key feature for businesses in 2022, and Personetics is leading the way by announcing the launch of the Personetics Sustainability Insights solution. It’s the first in the world to show bank customers the carbon footprint of every bank transaction and recommend personalized actions to reduce carbon emissions, such as making purchases from low-carbon merchants.
David Sosna, CEO of Personetics, commented on this evolution of sustainable finance. “Sustainability Insights also has a business impact for financial institutions, by improving customer engagement, creating new targeted cross-selling opportunities, and recommending specific banking products and new accounts in a personalized way based on the financial situation and future goals of each client. This will create closer relationships with banking clients and ultimately support banks’ ESG reporting.”
And finally, I was lucky enough to attend the City Week 2022 event recently. If you want to hear the big stories about digital transformation in financial services, or US expansion plans for Starling Bank , click on here!
Great partnerships to watch – Plaid adds 3 new partners to the payment partner ecosystem. Primer, UniPaas and NoFrixion join the platform to improve operations and reduce costs by leveraging Open Banking capabilities.
Farid SedjelmaciHead of European Partnerships at Plaid, said, “Despite the obvious growth opportunities, keeping up with the technology landscape can be onerous for merchants. Account-to-account payments join an ever-growing list of new types of payment, and open banking data for onboarding can seem like an added complication.Instead, PSPs can offer whatever solutions are needed to improve payment journeys and onboarding so their customers can tailor offerings to their needs. of the local market.
Similar in name, Stripe launched the Stripe Partner Ecosystem, which makes it easy for businesses to connect with the right partners for their specific goals by leveraging comprehensive business and technical training, plans for building a financial infrastructure with Stripe, marketing guides, co-selling benefits, specialization designations for partners with deep expertise in e-commerce, CRM, ERP and more (as if that weren’t enough!)
Long-time Stripe partners participating include thousands of businesses that power the internet economy, like BigCommerce, Shopify, Squarespace, Wix, and Xero. Dorothee CopelandVice President of Global Partnerships and Alliances at Stripe, commented how “The Stripe Partner Ecosystem will enable more partners to deliver modernized financial infrastructure and digital experiences to their customers, while generating new opportunities for partners to grow with Stripe”.