Weekly Research Highlights – 4 October 2022

For this week’s research article, we dive into new insights on fintech overview, ESG, security and crypto. Enjoy researching!

Top trends in Regtech | Hyarchis Report 2022 (Hyarchis)
The total value of money laundering is estimated at 2 to 5% of global GDP. That works out to about $800 billion to $2 trillion a year. Banks are suffering the burden of increasing regulatory pressure. Unsuspecting consumers bear the brunt of money laundering in the form of higher rates and poor service. The way out of this cycle of more regulation and higher costs is through regulatory technology. In the report “Top trends in Regtech: Shaping Financial Services with Regulatory Technology“ Hyarchis identifies five key regulatory technology trends within the financial service domain and explains how it turns compliance from a restrictor to a business enabler. Read more

WealthTech and PayTech companies accounted for most of Dutch FinTech app downloads in Q2 (Fintech Global)
WealthTech and PayTech services took two spots each on the list of most downloaded FinTech apps in the Netherlands. Mobile and online banking is widely popular in the Netherlands with 78.3% of Dutch individuals using these services in 2021. Younger people between 25 and 35 years were more likely use mobile or online banking services at 95.1% adoption whilst roughly 55% of people who were 75 years or older used online or mobile banking. Digital payments in the Netherlands are projected to reach $63.8bn in 2022 and will grow at an expected CAGR from 2022-2027 of 12.93%. DigiD, an identity management platform for many services and government websites, had the most cumulative downloads of any Dutch FinTech app from Q2 2021 to Q2 2022 with 2.99m downloads in total although quarterly downloads peaked in Q3 2021 at 853k with Q2 2022 recording only 283k. Read more

chart of top dutch fintech app downloads h1 2022

Families rely on cross-border payments to live, Mastercard (Fintech Magazine)
Mastercard Borderless has shared its latest data on its cross-border network, revealing that 40% of families around the world receiving payments rely on the transaction system to survive. The financial services cross-border payments network said its services were vital to the financial survival of families around the world at the height of the Covid-19 crisis. It added that it continues to play a key role post-pandemic, as revealed in the 2022 Mastercard Borderless Payments Report. The survey, which was conducted by Yonder, on behalf of Mastercard, ran an online survey with 7,586 consumers who have sent or received a cross-border payment in the past 12 months and 3,074 employees of SMES (businesses with less than 250 employees) who use banking or payment services on behalf of their business and use suppliers or services outsides of the country they work in. Fieldwork was also conducted from December 2021 until January 2022 in 15 markets including the UK, UAE, Saudi Arabia, South Africa, China, Singapore, India, USA, Canada, Mexico, France, Germany, Brazil, Colombia, and Chile. Read more

BNPL Schemes Have a Negative Emotional Effect on People, Warns HyperJar (The Fintech times)
Buy now, pay later (BNPL) customers are borrowing money to make their repayments leaving almost a third of Brits exposed to more debt and spending, warns HyperJar. The money-saving app has investigated Brits’ spending habits to identify that almost a fifth of Brits say their biggest debt comes from BNPL schemes. A figure that even rises to 27 per cent for those aged 25 to 34. HyperJar also shows that over a quarter (28 per cent) of people are more exposed to debt and spend culture than saving. Although 19 per cent of Brits say that seeing money stack up makes them feel better, they’re still addicted to spending. This is backed by a separate 2021 study, which found that 42 per cent of 16 to 24 year olds used BNPL schemes, with 57 per cent using this to update their wardrobe, and 47 per cent using it to buy tech products. Read more

Account takeover attacks increased 131% in 2022, says Sift report (Paypers)
US-based fraud prevention platform Sift has released its Q3 2022 Digital Trust & Safety Index, detailing the increase of account takeover attacks. Based on Sift’s global network of over 34.000 sites and apps and a survey of over 1.000 consumers, the report also underlines a new scam in which fraudsters collaborate to liquidate bank accounts via crypto exchanges and wallets that are connected but have been otherwise ignored during the so called ‘crypto winter’. The report highlights how no industry has been left untouched by account takeover (ATO) attacks, with an 131% increase across Sift’s global network in the first half of 2022, as opposed to the same period in 2021. However, fraudsters are looking to take advantage of dormant accounts and stored payment information. The industries with the biggest increase in ATO attack rates were fintech (71% increase), marketplaces (39% increase), and digital goods and services (37% increase). Within the fintech industry, cryptocurrency exchanges had a 79% increase in attack rates. Read more

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