Welcome to the latest in fintech news, where cutting-edge technologies and innovative financial solutions converge to reshape the landscape of banking, investing, and payments. Stay tuned as we explore the trends driving the future of finance!
BlackRock to buy Global Infrastructure Partners for $12.5bns (€11.5bns) (Financial Times)
BlackRock, the world’s largest asset manager, has agreed to acquire Global Infrastructure Partners (GIP) for over $12.5 billion (€11.5 billion) in cash and stock. This move will significantly expand BlackRock’s presence in alternative assets and make it the second-largest manager of private infrastructure assets globally. GIP’s portfolio includes assets such as Sydney and London Gatwick airports, the Port of Melbourne, and the Suez water group. The deal reflects BlackRock’s strategy to capitalize on the growing demand for long-term investment funds focused on decarbonization, energy security, and power grids. Larry Fink, BlackRock’s CEO, has been actively seeking a transformative deal, and this acquisition aligns with the company’s goal to strengthen its position in private markets. The deal is expected to lead to a wave of consolidation in the industry, with other alternative firms considering stock market listings or partnerships. BlackRock also reported strong financial results, with adjusted net income exceeding expectations and assets under management surpassing $10 trillion (€19 trillion). The acquisition is set to close in the summer, subject to regulatory approvals and GIP fund limited partners’ consent. Read more
Venezuela Kills Off Petro Cryptocurrency (Barron’s)
Venezuela is discontinuing the petro cryptocurrency, launched by President Nicolas Maduro six years ago to bypass US sanctions. The decision, effective January 15, involves shutting down all crypto wallets on the Patria Platform, the sole website where petro was traded. Remaining petros will be converted to the local currency, bolivars. Despite being introduced with the promise of utilizing Venezuela’s vast oil reserves, the petro faced challenges, being labeled a “scam” by some and struggling with limited use. A corruption scandal surrounding mismanagement of funds from oil operations further contributed to its demise, leading to the resignation of the petroleum minister and a crackdown on crypto-related activities in the country. The petro’s official closure marks the end of a venture that aimed to provide an alternative financing mechanism in the face of economic sanctions. Read more
UPI selects Google to take digital wallet global (Payments Cards and Mobile)
The National Payments Corporation of India (NPCI) has chosen Google Pay as part of its strategy to globalize India’s digital wallet system, the Unified Payments Interface (UPI). This collaboration aims to simplify international payments for Indian travelers and assist in developing UPI-like digital payment infrastructures in other countries. The initiative allows Indian travelers to use Google Pay for payments abroad, reducing the reliance on cash or international payment gateways. NPCI aims to enhance India’s global position in digital payments and streamline remittances by reducing dependence on traditional money transfer systems. This partnership aligns with the Indian government’s push, under Prime Minister Narendra Modi’s leadership, for the international expansion of UPI. The collaboration with Google Pay is expected to further extend UPI’s reach in the global digital payments landscape. Read more
Visa expands payment solutions with pioneering acquisition of Pismo (Fintech Global)
Visa has announced its acquisition of Pismo, a pioneering firm known for its cloud-native issuer processing and core banking platform. This strategic move positions Visa at the forefront of cloud-native banking and payment solutions. The acquisition aims to integrate Pismo’s advanced cloud-native issuer processing and core banking platform, providing enhanced core banking and card-issuer processing capabilities across all product types through cloud-native APIs. The platform will enable Visa to support and connect with emerging payment schemes and Real-Time Payment (RTP) networks for its financial institution clients. While the specific financial details remain undisclosed, this collaboration between Visa and Pismo signifies a new era in banking and payments, offering innovative payment and banking products within a unified cloud-native platform, irrespective of network, geography, or currency. Pismo will continue to operate under its existing management team, led by Co-Founder and CEO Ricardo Josua. The acquisition is expected to broaden Visa’s offerings and strengthen its position in serving financial institutions and fintech partners’ clients. Read more
RBI publishes draft framework for fintech sector self-regulation (The Paypers)
The Reserve Bank of India (RBI) has released a draft framework for recognizing self-regulatory organizations (SRO) in the fintech sector. The framework aims to strike a balance between fostering innovation and addressing regulatory priorities. It outlines the essential characteristics of a fintech SRO, emphasizing the benefits of self-regulation, such as proactive adherence to industry standards and adaptability to technological advancements. The RBI invites public comments and feedback until February 2024, with the final framework considering stakeholder responses. The RBI believes that with the right design, self-regulation can support self-discipline, internal governance, and the organized development of the fintech sector. While formal recognition is not mandatory, the RBI suggests that a formally acknowledged fintech SRO could enhance legitimacy and provide regulatory assurance. Read more
ING Sells In-House KYC Assets CoorpID and Blacksmith to Encompass Corp (Fintech News)
Encompass Corporation has acquired CoorpID and Blacksmith KYC, two assets from ING, to enhance its Corporate Digital Identity (CDI) platform. CoorpID, launched by ING Labs, simplifies Know Your Customer (KYC) data collection for global banks from corporate customers. Blacksmith KYC, developed at ING Labs Singapore, optimizes Customer Due Diligence (CDD) requirements and streamlines data collection in the financial industry. Encompass plans to create comprehensive KYC profiles by integrating public and private customer information, offering a unified view of client identities and risks for financial institutions. ING will maintain a stake in the venture and collaborate as a development partner. The move is part of Encompass’s strategic effort to advance its CDI platform and transform KYC processes. Read more
Thailand-based Insurtech Roojai Acquires Indonesian Online Insurance Aggregator Lifepal (Technode Global)
Thailand-based insurtech Roojai Group has acquired Lifepal, an online insurance aggregator in Indonesia with over 2 million unique visitors per month. The acquisition aims to combine strengths, with Lifepal providing access to a large online distribution channel in Indonesia, and Roojai enhancing performance through its proprietary pricing, underwriting technology, and customer experience. Both companies plan to expand their product offerings and distribution channels. Roojai is ranked #3 as the “top of mind” car insurance brand in Thailand and #1 in customer experience. Lifepal will continue to operate independently, delivering online comparison services for car and health insurance. Read more
Insurtech Getsafe acquires a student loan platform to meet its future clients upstream (TechCrunch)
European insurtech company Getsafe has acquired deineStudienfinanzierung, a German digital platform for student loans. The acquisition is part of Getsafe’s strategy to expand its user base and gain access to potential clients before they seek insurance. deineStudienfinanzierung will continue to operate as a standalone business, helping students apply for publicly subsidized loans offered by German state bank KfW. The acquisition follows Getsafe’s earlier purchase of the German portfolio of French insurtech company Luko. While short-term revenue targets are not the primary goal, Getsafe aims to understand and access its target customers better through this acquisition. Read more
–
Do you have any news to share? Please put feed@hollandfintech.com on your press list.
Curious to read and find out more from fintech? Then subscribe & read our full newsletters here. In order to see our other weekly highlights, check out the following link: funding, research, analysis & opinion.
