Stay up to date with the latest news from fintech! This week, we bring you updates and developments on partnerships, lending, banking, crypto, NFT and more. Enjoy reading!
Stripe partners Revolut to support payments and expansion (FinTech Magazine)
Fintech powerhouses Stripe and Revolut have joined forces, with Revolut using Stripe’s what is known as the ‘Stripe Treasury’ tool to build its market presence in a number of key areas – with Europe and parts of Latin America also expected to benefit. By teaming up, the two fintech companies are creating one of the most formidable partnerships within the fintech landscape that have a reported combined valuation in excess of US$120bn. (Read more)
Stripe is the latest fintech to falter, taking a 28% internal valuation cut (TechCrunch)
Stripe is the latest high-profile fintech company to take a massive valuation cut as the market downturn begins to hit the sector especially hard. Last valued at $95 billion, the payments processor has cut the internal value of its shares by 28%. The valuation cut comes from a 409A price change, determined by an independent party, and it impacts the value of Stripe’s common shares, though implicitly, that means that the value of the preferred shares owned by Stripe’s venture backers will also go down. (Read more)
Celsius Network reveals $1.2bn shortfall in bankruptcy filing (Financial Times)
Celsius Network has revealed a $1.2bn hole in its balance sheet caused by what chief executive Alex Mashinsky called “poor” investments and other “unanticipated” losses. Celsius made the disclosure after freezing customer funds in June, which made it the latest victim of the crash in crypto markets that has forced two other large companies into a recent bankruptcy. Celsius was one of a handful of crypto lenders that pulled in billions of dollars worth of assets from ordinary investors in recent years. It promised interest rates as high as 18 per cent. (Read more)
EY’s Nexus for Insurance leads digital transformation (FinTech Magazine)
EY is driving innovation in the insurance industry with its latest cutting-edge enablement platform for technology integration, Nexus. Nexus – a middleware microservices integration layer with extensive service catalogues, API inventories, adapters, and domain-specific data models. Neil Pengelly, EY’s Canadian insurance consulting leader describes Nexus as an enablement platform that brings best-breed capabilities across a broad spectrum of software and business technologies to enable clients. (Read more)
London Stock Exchange to back review of declining fintech growth (UKTN)
Fintech has been one of the most heavily invested in sectors of UK tech, with 2021 showing record-high funding. However, according to Fintech Week London, a new industry analysis has revealed a sharp decline in 2022. The London Stock Exchange, The Fintech Times, and fintech specialist PR firm SkyParlour have agreed to back a review addressing declining growth and investments into UK fintech startups. (Read more)
India’s M2P Fintech snaps up cloud lending firm Finflux (Fintech Futures)
India’s M2P Fintech, which provides API infrastructure enabling firms to embed financial products, has acquired cloud lending platform Finflux. Financial details are undisclosed, but according to a Times of India report, it is said to be a “cash and stock deal of $15-20 million”. Founded in 2010 and based in Bengaluru, Finflux’s cloud solution offers services including loan origination, loan management, financial accounting, marketplace integration, app-based lending, alternative data-based credit scoring, financial dashboards, reporting and analytics. (Read more)
Financial Stability Board outlines need for international crypto regulation (Fintech Futures)
Following the reached EU agreement on a crypto regulation proposal, the Financial Stability Board recently outlined the need for international crypto regulation. The Council of the European Union (EU) has announced the bloc has reached a “provisional agreement” on a new landmark regulatory framework for cryptocurrencies. The council says the new regulation will help protect investors and preserve financial stability while also allowing for continued innovation within the crypto sector. In the meantime, The Financial Stability Board (FSB), an international body that monitors the global financial system, has published a statement calling for regulation of crypto asset activities on an international level. This will hopefully address potential gaps in standards, the development of new standards and guidance and new types of risks that may not be “captured by existing regulatory frameworks”. (Read more)
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