Weekly research highlights 11 September 2020

Weekly research highlights 11 September 2020

“Fintech and International Financial Regulation” research study by Yesha Yadav from Vanderbilt University - Law School, emphasizes the unique features and characteristics of the fintech sector which pose challenges for regulators to take action and implement an adequate rulebook. Due to the fact that fintech relies on automation and technology such as AI, gathers new types of Big Data and has a mixed financial supply chain, containing both traditional firms and also newcomers, rulemaking faces several challenges to overcome. Read more

A new report from Swift and BAE Systems, “Follow the Money”, gives an overview on how cyber heists present the perfect context for money laundering schemes. Furthemore, the study highlights common techniques used by hackers with examples in order to inform companies and the public on how to prevent and protect themselves against such cyber attacks. The report also addresses the areas that need to be improved in terms of security and also how money laundering processes can evolve and have more damaging impacts. Read more

The newest research from Finextra, “The Future of Fintech 2020 - Disrupt, reset, re-launch”, pinpoints the new strategies undertaken by banks to embrace technology, such as partnering up with neobanks and investing in fintech companies. The study also highlights recommendations on how the industry can overcome the obstacles presented by different crisis scenarios and the benefits that customers can have from financial institutions digitizing their offerings. Read more

For the Singaporean fintech sector, the overall funding percentage has fallen down, according to a study from Fintech Global. Only one company has received an investment over $50m so far this year compared to six in 2019. The main causes for the drop are due to Covid-19, and the economic uncertainty. For H1 2020, the total investment was down 78% from the same period last year. Just over 19.9% of total investment for H1 2020 stemmed from deals sized over $50m. Read more

“The Development of FinTech. Opportunities and Risks for the Financial Industry in the Digital Age” research paper by authors Cristiana Schena, Alessandra Tanda, Carlo Arlotta, Gianluca Potenza, D’Agostino Giuseppe and Pasquale Munafò emphasizes the position of fintech sector within the financial ecosystem, benefits and risks, potential advantages for customers and also for the economic growth, methods of regulating the fintech industry and strategic choices to be made when it comes to digitizing current processes. Read more

“How COVID-19 has Impacted The Future of Finance” report by Capital on Tap presents how the current pandemic has shifted the payment industry towards a cashless future and also gives insights from industry experts regarding new developments for finance. The main challenges faced now by businesses is moving finances to a digital format. According to professional advice from expert companies such as TIDE, Degree53 and Capital on Tap, taking a holistic approach on tasks, researching the best providers for the company’s needs and understanding the pricing of various accounts can be valuable steps to consider. Read more

The latest analysis from Her Majesty’s Revenue and Customs (HMRC) highlights that up to £3.5 billion worth of payments made through the Coronavirus Job Retention Scheme (CJRS) have been paid out in error or claimed fraudulently, which makes up for approximately 10% of the programme’s payments. HMRC is in the process of investing over 27.000 “high-risk” cases, which are believed to be the root of the issue. Read more

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