And we’re kicking off the week with new analysis and opinions on fintech with updates on the future of banking, generative AI, blockchain, and more. Dive into the latest fintech insights and have a great start to the week!
Bank servicing of SMEs is getting worse (Payments Cards & Mobile)
For years now, the challenges small and medium enterprises (SMEs) face in payments have not been getting easier. As long ago as 2019, banking infrastructure firm Banking Circle told us almost half of small businesses in Europe planned to switch away from banks, frustrated by high fees, slow settlement times and “vanilla” services. A new study of US small businesses by J.D. Power shows this problem is not confined to the old world. Read more
Vesttoo fraud scandal: The story so far (Fintech Global)
Vesttoo ended 2022 by obtaining the highly-coveted unicorn status, however, 2023 has been anything but a fairytale, as the Israeli FinTech has found itself mired in the midst of a public fraud scandal. Staff have been laid off, the CEO has been ousted, and the firm has headed to court to combat Aon’s White Rock Insurance SAC vehicle. But while Vesttoo’s dirty laundry continues to be aired in the public domain, here is a detailed report on how the story has unravelled, so far. Read more
Is the overtake of KYC by pKYC inevitable? (Fintech Global)
KYC practices have been long used in the financial sector. However, with fraud and financial crime more prevalent than ever, is perpetual KYC the evident next step? KYC is still an important technology in its own right, but studies have found some of its shortfalls. According to the 2021 Fintech Onboarding Friction Index, the average fintech onboarding process takes six minutes, 29 clicks and 16 fields to complete – quick to some, but also burdensome to others. Read more
How CNMV’s crackdown on CFDs affects Spanish retail clients and EU rights (Fintech Global)
In a recent post by RegTech firm Muinmos, the company discussed in detail Spanish CFD ‘Barbie clients’ and fundamental EU rights. According to an ESMA opinion citing the Spanish financial regulator, the CNMV, certain Spanish retail clients are much like characters in the 2023 Barbie movie. Using aggressive marketing tactics, some market players have convinced these ‘Barbie-Clients’ to invest large amounts in CFDs (Contracts for Difference) — products deemed inappropriate for them. Read more
Neobanks showing early signs of saturation in Brazil (Fintech Nexus)
In the past decade, neobanks in Brazil have emerged as key players in advancing financial inclusion, putting banks’ tight grip to the test. However, after the boom in recent years, Latin America’s main digital banking economy is showing signs of reaching a plateau. According to a Bank of America survey, downloads of Brazilian online bank apps saw a 34% monthly decline in June. There were 12.4 million downloads, compared to almost 20 million at the peak of the neobank boom last year. Read more
Embedded lending vs. BNPL: An investigation into the key variations (Fintech Nexus)
With the cost of living skyrocketing and rising interest rates, consumers and businesses have been turning to brands that offer seamless, flexible payment and lending options. And as customers and businesses navigate this difficult financial time, there’s a rising star: embedded lending. But this lending is not only a short-term solution to see customers through recessions or difficult times. Rather, it’s a sustainable solution that helps people with financial planning, becoming a major factor in every transaction and providing financing accessibility when needed. Read more
The challenges of remittances in a world that’s on the move (Fintech Magazine)
Economic migration and refugees fleeing war and persecution continue to add a layer of complexity to the challenge of cross-border payments and remittances. The need for reliable and secure remittances services has never been higher. According to the United Nations High Commissioner for Refugees (UNHCR), there are now more than 110 million displaced people in the world, forced to flee their homes because of things like war or famine. Read more
FinTech Futures Jobs: Women in tech have a three-year “experience gap” compared to men (Fintech Futures)
Studies conducted in both the UK and the US have found that children as young as six will rule out future career options for themselves based on views they’ll already have about the sort of jobs people do based on their gender. Other research suggests that by the time children reach the age of 10, they’ve already got a clear idea about whether they aspire to be a scientist––or not. That early gender-based conditioning knocks on. After GCSEs, according to STEM Women, only 35% of females choose to study STEM subjects, and this declines again with just 25% of females choosing to study them at university level. Read more
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