The Fintech Fix 21/09/2022 | Fintech Finance

Welcome to The Fintech Fix, where we cover the biggest fintech stories of the workweek. Whether it’s the next disruptive crypto trend or a new partnership set to transform the global economic landscape, this is where you can keep up to date with the latest future news.

In with the new

This week’s big stories can be summed up in one word: beginnings. Fintechs are thinking outside the box and developing products and services that are better suited to the new age. The mysterious newfound fintech Power, which issues credit cards, has finally emerged from cover. After securing $16.1 million in seed funding and $300 million in credit facility, the start-up lifts the curtain on its operations and shares its vision of lending with the world.

“In just over 12 months, Power is already in the market and on track to issue thousands of credit cards this year,” said Randy Fernando, Founder and CEO of Power. “Looking ahead over the next year, we plan to issue tens of thousands of cards in the consumer, commercial and bank categories and process millions of dollars in transaction volume.”

Fintech unicorn Tipalti expands into mainland Europe after successful start in UK |  fintech finance

San Mateo Unicorn, Tipalti, makes another leap into the Eurozone and recently opened a new Benelux office in Amsterdam. The company, which is currently valued at over $8.3 billion, was launched in the UK last October and has now attracted over 100 UK-based clients. Access to the Central European market via the Netherlands will further expand Tipalti’s presence in the region with its leading automated global accounts payable solutions.

Looking ahead to product expansion, global payroll and compliance solution Deel has announced the launch of two new products, Deel Shield and Deel API/the Deel Partner Program. The former is designed for contractor compliance, giving companies the ability to hire globally with little risk of misclassification or liability. More geared towards internal needs, Deel API allows companies to deploy their HR products with Deel’s recruitment software.

Commenting on the launch, Alex Bouaziz, Co-Founder and CEO of Deel, said: “We built Deel Shield to enable companies to hire global talent at record speed, without the risk of misclassification, and enjoy all the benefits that come with associated with working with a contractor. without staff or compliance issues. That way it’s our responsibility, not yours. As for the Deel API – this is just the beginning. We have big plans to expand the capabilities of our API to enable companies to build more global hiring solutions.”

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With the launch of the UK’s New Payments Initiative and ISO 20022, we are also at the start of a new payments revolution. In our recent virtual arena, we brought together the brilliant minds from Nationwide, ACI Worldwide and Pay.UK to talk about the NPA and the infrastructure needed to enable faster, safer payments. In the VA, executives Mark Nalder, Shane Warman and Andrew Moseley spoke at length about the opportunities faster payments offer and how the industry must work together to create a robust ecosystem if we are to make our payment terms actionable.

Working together to work apart

Something else is brewing in the world of payments. In an international effort to improve cross-border payments (CBP) and align them with the goals of the European Commission’s Digital Identity Wallet program, a consortium of European identity experts has proposed running a large-scale cross-border payments pilot.

As part of the effort, Denmark, Germany, Iceland, Italy, Latvia and Norway, led by NOBID (Nordic-Baltic eID Project), plan to show how payments and ID can be combined across borders and in multiple currencies. With a focus on payments, the pilot will leverage each country’s existing payment infrastructure to facilitate features such as instate payments and issuance.

Concurrent with this amazing collaboration, NCR Corporation, a technology provider to banks, retailers and restaurants, will split into two independent public companies. Hopefully by the end of 2023, one company will focus solely on ATMs and the other on digital commerce — in a tax-free process. The goal of this separation is to continue to support the growth of NCR’s product offerings by focusing their teams on building these specific services.

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“This announcement is the right next step in NCR’s transformation. The separation would create two strong, large-scale companies, each with different business objectives and capital structures and allocations, as well as increased flexibility to innovate,” said Michael D. Hayford, CEO of NCR.

Mergers and acquisitions are happening around the world this week as news broke that global payments provider PayU has received approval from Colombian regulators to acquire the electronic payments fintech thing. Already well integrated into the Colombian online payments space, PayU will have more reach to create and develop online products tailored to an evolving customer base.

This is a major win for Colombia as the country continues to build a robust payments ecosystem as it advances financial inclusion among the unbanked and financially vulnerable members of its population.

Big funding rounds are back!

After the understandable dry spell in funding over the past two quarters, fintechs have rebounded and offer promising prospects for investment in 2023. B2B/C fintech Roslay has raised $10 million in its seed round led by Fin Capital dollars collected. The support will be reflected in the startup’s growing efforts to deliver its financial HR products to companies looking to build stronger employee engagement and financial literacy.

Roslay is unique in its corporate offering as it aims to help European employees get paid in a system that suits them rather than the consensus of monthly paychecks. With further investment, this could be huge for business operations in Europe, transforming everything from employee satisfaction to operations.

Refocusing on the eurozone, HSBC has approved a $35 million investment in pan-European digital banking platform Monese, bringing its total funding to $208 million. The investment will support Monese’s continued development of its Platform-as-a-Service business.

Taylan Turan, Group Head of Retail Banking and Strategy, Wealth and Personal Banking at HSBC, said: “HSBC is continually pioneering new wealth and banking innovations for our digitally savvy clients – we aim to help clients make smarter decisions so they can protect their Requirements can meet financial goals with innovative digital tools. This new partnership is an important step in helping us deliver digital wealth and banking tools at speed and scale by combining Monese’s fintech credentials with our own global wealth and banking capabilities.”

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Turaco, a provider of insurance products and services to over a million people in Nigeria, Kenya and Uganda, is stepping squarely into the African insurtech space and has raised $10 million in a Series A equity round led by AfricInvest. The company, which specializes in L&H and vehicle-related insurance services, is dedicated to relieving people of financial insecurity caused by potential unexpected health risks. With its partnerships and support from leading financial institutions such as Enza Capital, Global Partnerships and Zephyr Acorn, the company is able to further reach its audience of low-income earners who may be deterred from protection due to high fees and interest rates.

Turaco CEO and co-founder Ted Pantone said, “We’re proud to drive insurance adoption, especially among low-income earners. 90% of our customers have never had insurance, but the surprising thing is that people really want to get insurance! They just don’t have easy access to products that really work for them. This investment allows us to scale our business to serve millions of insurance customers in our current markets and beyond. We are very pleased to have these great new investors join our team for this next season of growth.”

It is evident that new beginnings do not come without new struggles, and in something as important to society as payments and insurance, institutions need to work in partnership to build a more inclusive fintech community.

That completes your weekly fintech fix! Stay tuned for another round of big fintech buzz, right here at FF News.

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