Weekly Research Highlights – 22 February 2022

For this week’s research article, we dive into new insights on fintech market, banking, insurance, payments, trends, diversity in fintech and more. Happy reading!

Banking Circle on the impact of bank and fintech de-risking (Fintech Magazine)
Fintech solutions provider Banking Circle evaluates their research on bank de-risking, and looks at the pros and cons of the current financial climate
Big banks are rapidly de-risking, withdrawing from certain markets and geographies. Creating fundamental threats for smaller Financial Institutions, the ripple effects go right through the global economy. Banking Circle research examines the impact and opportunities of the de-risking trend. Banks have been executing de-risking strategies for decades, to reduce and remove risk. However, the past decade has seen the level of activity increase dramatically. In 2012, HSBC paid US Authorities $1.9 billion in a settlement over money laundering, sparking the de-risking movement that is still affecting the industry today. Read more.

Move over ‘tech bros’: Women entrepreneurs join Africa’s fintech boom (News 24)
When financial analyst Oluwatosin Olaseinde moved back home to Nigeria in 2013 after a decade studying and working abroad, she decided it was time to tackle her own finances, so started reading up on stocks and mutual funds. Shocked at how little guidance was available for young professionals like herself, Olaseinde began sharing her learnings in fun, bite-sized tutorials on Instagram, and much to her surprise, her posts went viral. Africa has double the average rate of women-led fintechs. From 2013 to 2021 less than 5% of $12.6 billion in funding to Africa’s tech startups went to fintechs led only by women. Female techpreneurs face lower valuations and more oversight. Read more.

Fintech innovation among private banking industry companies has dropped off in the last year (Private Banker)
Research and innovation in fintech in the private banking sector has declined in the last year. The most recent figures show that the number of fintech related patent applications in the industry stood at 56 in the three months ending December – down from 589 over the same period in 2020. Figures for patent grants related to fintech followed a similar pattern to filings – shrinking from 173 in the three months ending December 2020 to 80 in 2021. Read more.

Is 2022 the year we see a slowdown in Fintech investment?(Finextra)
As we as a business reflected on the different trends we felt were worth talking about for 2022, the fintech investment scene and current tech stocks felt like something worth expanding on more widely. Before we focus on the current climate let’s talk very briefly about the drivers of the dot com bubble: Low interest rates, huge amounts of capital pumped into fledgling businesses in the hope of turning a profit and a volatile tech stock market – Sound familiar? Whilst it could be a slightly lazy comparison there are certainly parallels that make it a worthy mention. Let’s consider them individually. Read more.

According to a report by cryptocurrency research firm Chainalysis, India is one of the world’s fastest growing crypto markets, increasing by 641% between July 2020 and June 2021. In a recent study, it has been reported that over 20 million people in India have taken up cryptocurrency since 2021 and now hold around $5 billion worth of crypto assets. Despite 2 crashes last year, many Indians continue to flock towards this new financial technology because they are looking for outsized returns on their investments! One of the most exciting things about this partnership is that it will allow CGCX tokens to be traded at over 250 offices of PCEx in India, which is to ensure that no potential customer will be left behind! Read more.

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