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!
XTCC pioneers first Shariah-compliant carbon credit investment ecosystem (Fintech Global)
XTCC has introduced the first Shariah-compliant multi-currency asset class for high-integrity carbon credits from projects like renewable energy and nature-based solutions. This new investment option links Islamic finance with global climate action, featuring a stock market quoted price for carbon credits. Certified by Yasaar Research Limited and supported by Al Waseelah, XTCC’s products meet high Islamic ethical standards and international guidelines. Dr. Scott Levy and Majid Dawood emphasized its significance for ethical and sustainable investments in global markets. Read more
ECB conducts first DLT trials with 16 companies (Payments Cards & Mobile)
The Eurosystem has completed its first experiment using distributed ledger technology (DLT) for settling wholesale transactions in central bank money. Sixteen private companies will participate in further trials involving real and mock settlements to explore the interaction between TARGET Services and DLT platforms. This initiative aims to develop central bank work in this area and assess the benefits of new technologies in financial markets. The initial experiment by Oesterreichische Nationalbank involved tokenizing and simulating the settlement of government bonds. Further trials over the next six months will cover various financial transactions, with results evaluated using key performance indicators. Read more
Wolters Kluwer unveils new Regulatory Violations Intelligence Index (Fintech Global)
Wolters Kluwer has introduced the Regulatory Violations Intelligence Index to help compliance executives manage risks more effectively. This Index analyzes penalties from U.S. financial regulators from 2018 to 2023, highlighting trends and key focus areas, especially consumer protection violations. It provides strategic insights for improving compliance strategies. Executive VP Vikram Savkar emphasized that the Index offers vital data intelligence, aiding financial institutions in understanding and mitigating compliance risks. Read more
TabaPay pulls the plug on proposed deal to acquire Synapse assets (Fintech Futures)
TabaPay recently terminated a purchase agreement due to a failure to meet the closing condition specified in the agreement. While TabaPay did not elaborate on the issue, Synapse CEO Sankaet Pathak claims that their banking partner, Evolve Bank & Trust, failed to fulfill their obligation to fully fund For Benefit Of (FBO) accounts, which was a condition for closing the agreement. However, Evolve denies any involvement in the deal, stating that they were not a party to TabaPay’s agreement. Read more
Nasdaq boosts market surveillance with GenAI (FinExtra)
Nasdaq is leveraging AWS’s Amazon Bedrock service to develop GenAI applications aimed at enhancing market abuse investigations. This technology aims to improve the quality, speed, and efficiency of investigations into manipulation and insider dealing. It consolidates regulatory filings, news summaries, sentiment analysis, and other factors impacting securities, streamlining the triage and examination process. During proof-of-concept testing, a 33% reduction in investigation time was observed. Nasdaq plans to implement this technology for US equity market surveillance, providing advanced tools to combat market abuse and respond to emerging threats. Tony Sio, Nasdaq’s head of regulatory strategy and innovation, emphasizes the importance of leveraging cloud technology and artificial intelligence to enhance the global financial system’s resilience against market abuse. Read more
Broadridge acquires Securities Industry Services business from Kyndryl (Fintech Futures)
Broadridge Financial Solutions is acquiring Kyndryl’s Securities Industry Services (SIS) business, specializing in back-office brokerage transaction processing for the Canadian securities industry. The undisclosed acquisition aims to integrate SIS capabilities with Broadridge’s wealth platform to enhance services such as clearing, settlement, regulatory reporting, and order management. The transaction, expected to close in the coming months, is subject to customary closing conditions. Despite the sale, Kyndryl plans to maintain a partnership with SIS, offering managed services to Broadridge’s Canadian division. Broadridge’s President Karin Kirkwood emphasizes the acquisition’s role in accelerating innovation and meeting the evolving needs of Canadian financial firms. This move aligns with Broadridge’s commitment to providing leading technology solutions in Canada, building on its track record of initiatives in the North American market. Read more
BIS opens call to private sector participants for Project Agorá (Fintech Futures)
The Bank for International Settlements (BIS) is inviting financial institutions from the private sector to participate in Project Agorá, an initiative aimed at exploring the application of tokenization in wholesale cross-border payments. The call for participants is open until May 31, with the final list expected to be announced on August 9. Project Agorá aims to test the feasibility of a multi-currency ledger for cross-border payments by consolidating tokenized commercial bank money and wholesale central bank money in a public-private programmable financial platform. Participants will contribute technical expertise to design the platform and test various use cases for cross-border payments within a two-tiered banking system. The initiative is supported by central banks such as the Bank of France, Bank of Japan, and Bank of England, with the Institute of International Finance acting as the convener for private sector participants. Cecilia Skingsley, head of the BIS Innovation Hub, emphasized the importance of testing the technology within the specific operational, regulatory, and legal conditions of participating currencies and financial companies. Read more
EU issues new guidelines to combat greenwashing risk in investment funds (Fintech Global)
ESMA has unveiled guidelines to combat greenwashing in investment funds, responding to concerns about the proliferation of ESG-related terms in fund names. Following a consultation, ESMA revised its guidelines to remove a proposed 50% sustainability-related threshold and introduced an 80% minimum investment proportion for funds using the term “sustainable.” A transition category was also introduced for strategies aimed at fostering a greener economy. These guidelines aim to enhance transparency and integrity in the ESG investment landscape, providing clarity for investors and addressing the risk of misleading practices. Zodia Custody CEO Julian Sawyer commended ESMA’s efforts, highlighting the importance of clear standards in promoting sustainability and responsibility in finance. Read more
InsurTech unicorn Go Digit General Insurance to launch IPO to raise funds (Fintech Global)
Go Digit General Insurance, a prominent InsurTech unicorn, has launched its initial public offering (IPO) to strengthen its solvency ratio and capital reserves, supporting its growth and expansion plans in the insurance market. The IPO consists of a combination of fresh issuance and a stake sale by existing shareholders, including notable investors like Canada’s Fairfax Group and celebrity couple Virat Kohli and Anushka Sharma. The offering includes an offer-for-sale component of up to 54,766,392 equity shares and fresh issuance worth Rs 1,125 crore. Despite facing a penalty from IRDAI for non-disclosure, Go Digit received SEBI’s approval for its IPO in March. The IPO is expected to conclude on May 17, providing investors with an opportunity to participate in the company’s growth. Read more
German insurtech Wefox facing prospect of insolvency within months (The Insurer)
Wefox, a major European insurance technology company, faces the risk of collapse within months due to regulatory and financial challenges. The company’s new executive chairman and CEO, Mark Hartigan, warned shareholders of potential insolvency by August, highlighting losses in its Italian unit and significant liabilities in Germany. Urgent discussions are underway to address these issues, including closing operations in Germany, selling parts of its business, and restructuring operations in other countries. Despite being valued at $4.5 billion less than two years ago and backed by prominent investors, including Mubadala and Omers Ventures, Wefox’s future remains uncertain. Hartigan’s memo cited progress in restructuring efforts but emphasized the need for a sustainable balance of cashflows and planned disposals. Job cuts are also underway in central functions. Wefox declined to comment specifically on the insolvency warning but emphasized its focus on consolidation and concentration of international activities to ensure financial flexibility and pursue technological innovation in insurance distribution. Read more
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