Fintech Weekly | Issue 9

Financial software developer Intuit acquires San Francisco startup SeedFi

Recently, American financial software developer Intuit announced the acquisition of financial technology startup SeedFi. The transaction is expected to be completed within a few months. The specific transaction amount has not been disclosed. Based in San Francisco, SeedFi provides technology to help low- or no-credit borrowers build credit while saving. The deal will see SeedFi become part of Intuit's Credit Karma business. Credit Karma already partnered with SeedFi last year to use the latter's technology for its credit generator product, which provides customers with credit lines and secure savings accounts.

 

Information link:

https://www.intuit.com/company/press-room/press-releases/2022/intuit-to-acquire-financial-health-startup-seedfi/

Comment: Credit Karma was acquired by Intuit for $7.1 billion in November 2020, joining TurboTax, QuickBooks, and Mailchimp as part of the company's portfolio. Credit Karma currently has approximately 130 million members in the US, UK and Canada.

 

Teampay, an integrated purchasing platform in the United States, received US$47 million in financing, and Mastercard participated in the investment

Recently, Teampay, an integrated procurement platform in the United States, announced that it has received USD 47 million in Series B financing. The round was led by existing investor Fin Venture Capital, with participation from new investors including Mastercard, Proof Ventures, Trestle and Espresso Capital. Founded in 2016 and headquartered in New York, Teampayc has raised a total of US$65 million. Through its service platform, user companies can simplify various employee procurement processes including virtual cards, physical cards, invoices and reimbursements.

 

Information link:

https://siliconangle.com/2022/11/30/teampay-raises-47m-cloud-based-purchasing-platform/

Comments: In addition, Teampay will expand its partnership with Mastercard to "jointly explore opportunities to develop product capabilities". The two companies partnered in 2021 to launch Catalyst, a digital corporate card powered by Mastercard's network.

 

JPMorgan invests in Swiss startups Edge Laboratories and Evooq

Recently, the private banking division of JP Morgan Chase announced that it has made strategic investments in two Swiss fintech start-ups, Edge Laboratories and Evooq. The specific amount has not been disclosed. The two startups provide risk and portfolio construction software to major banks, wealth managers and pension funds.

 

Information link:

https://www.edgelab.ch/

Comment: Since 2021, JPMorgan Private Bank has also bought shares in OpenInvest and Global, and invested in Kraft Analytics Group and MioTech.

 

Goldman Sachs plans to spend tens of millions of dollars to acquire or invest in encryption companies

Goldman Sachs plans to spend tens of millions of dollars buying or investing in crypto companies after the collapse of crypto exchange FTX hit valuations of cryptocurrencies and dampened investor interest, Reuters reported. Mathew McDermott, head of digital assets at Goldman Sachs, said the collapse of FTX exacerbated the need for more trustworthy, regulated cryptocurrency players, and big banks saw an opportunity to take over the business. He added that Goldman Sachs is conducting due diligence on a number of different crypto companies, but gave no details.

 

Information link:

https://www.khaleejtimes.com/business/cryptocurrency/goldman-sachs-on-hunt-for-bargain-crypto-firms-after-ftx-fiasco

Comments: McDermott said in an interview last month that the company does see some very interesting opportunities that are more reasonably priced.

Insurtech CoverGo enters Middle East market

CoverGo, a no-code SaaS platform for global property insurance and life insurance, announced its entry into the Middle East market, and at the same time received a $15 million Series A round of financing from Middle East insurance fund Noria Capital. CoverGo can help global insurance technology companies and insurance companies launch various insurance products in just a few days, develop an omni-channel sales model, and realize digital operations of policy management and claims process.

 

Information link:

https://www.covergo.com/

Comments: Their clients include AXA, Dai-ichi Life, DBS Bank and BOC Insurance, etc.

 

Ticker launches pay-per-mile insurance

The European company MGA Ticker has launched a pay-per-mile insurance product for low-mileage drivers. It's the latest addition to a suite of connected cars, including novice drivers, van drivers and electric vehicles. Pay-by-the-mile offerings are live and available through Confused.com.

 

Information link:

https://www.ticker.co.uk/

Comments: To protect parked cars from theft or damage, customers must pay up front. He then receives a unique set of per-mile rates based on the miles he logs (an auto-installed plug-in sends the odometer data to the Ticker).

 

BookOutdoors announces partnership with insurtech Pattern

The BookOutdoors travel platform announced a partnership with Pattern, a global insurtech/managed general agency company. Consumers of the former can purchase discounted travel insurance and weather insurance when booking a trip. Pattern offers a variety of different insurance product combinations on its platform, embedded directly into the itinerary booking process.

 

Information link:

https://explore.bookoutdoors.com/news/bookoutdoors-partners-with-pattern-insurance-to-offer-their-customers-innovative-outdoor-experience/

Comments: For example, rain protection is a key insurance product for consumers who book outdoor trips, ensuring that the trip can be canceled and a full refund will be made when it rains in the weather forecast.

 

CerebrumX launched Ford's exclusive UBI car insurance service

CrebrumX Lab, a vehicle data service management platform, said that they will add data from Ford's connected vehicles to support its UBI insurance-as-a-service business model and provide it to insurance companies. For suitable Ford and Lincoln connected vehicles, this model enables faster and more cost-effective configuration and activation of UBI auto insurance products through embedded in-vehicle telematics systems.

 

Information link:

https://cerebrumx.ai/

Comments: CerebrumX's augmented deep learning platform, ADLP, collects and analyzes data directly from Ford and Lincoln vehicles to generate driver scores and vehicle scores without installing additional software or hardware. The generated driver scores and vehicle scores help insurance companies improve the risk assessment process and provide customers with more accurate personalized auto insurance products.

Fed launches consultation on climate-related financial risk framework for large banks

On December 2, 2022, the Federal Reserve Board invited public comments on proposed principles that provide a high-level framework for large banking institutions to safely and robustly manage climate-related financial risks. The proposed principles would apply to banking organizations with total assets exceeding $100 billion and address both physical and transition risks related to climate change. The proposed principles will cover six areas: governance; policies, procedures and constraints; strategic planning; risk management; data, risk measurement and reporting; and scenario analysis.

 

Information link:

https://4g.stockstar.com/detail/IG2022120600001929

 

Deloitte: Singapore's digital banking maturity is higher than the global average

On December 5, 2022, Deloitte released the latest report on Digital Banking Maturity. According to the report, the maturity of Singaporean banks in online banking and mobile banking is 60% and 53%, respectively, which is higher than the global average of 42% and 38%. This is the fifth time that Deloitte has released relevant reports, and the research scope covers 304 banks in 41 regions around the world. The report conducted a survey of 5,084 bank customers around the world, analyzed and evaluated the digital maturity of banks based on more than 1,200 digital functions and user experiences, and divided banks into four categories, namely, digital latecomers, digital adopters, and digital smart followers and digital champions.

 

Information link:

https://www2.deloitte.com/xe/en/pages/technology/articles/digital-banking-maturity-2022.html

 

Australia's CBDC pilot program has received over 140 use case proposals from the financial industry

According to Cointelegraph, the Reserve Bank of Australia released a speech by Assistant Governor Brad Jones at the central bank meeting today, detailing the possible impact of CBDC on the Australian economy. Jones noted that since the release of the white paper on August 9, more than 80 financial entities have proposed CBDC use cases covering e-commerce, offline and government payments, among many other areas. Currently, the team in charge of the pilot 'eAUD' project is studying which of the proposed use cases will enter its pilot phase early next year and expects to publish a project report around mid-2023.

 

Information link:

https://www.centralbanking.com/fintech/cbdc/7953955/rbas-jones-calls-for-more-analysis-on-cbdc

 

Pakistan plans to issue central bank digital currency by 2025

The State Bank of Pakistan (SBP) has signed off on a new regulation for electronic money institutions (EMIs) to ensure timely issuance of a central bank digital currency (CBDC) by 2025, local outlet Arab News reported. The World Bank helped Pakistan design the regulations. In addition to adhering to the timetable issued by the CBDC, these regulations guarantee preventive measures against money laundering and terrorist financing, taking into account consumer protection and reporting requirements.

 

Information link:

https://www.sbp.org.pk/ps/EMI.htm

To help achieve its net-zero target, Singapore has partnered with a number of countries to trade carbon credits

Recently, Pham Vivi, director of the Department of Industry of the Ministry of Trade and Industry, said in an interview that Singapore has limited land and dense population, and cannot deploy renewable energy on a large scale like other countries. Despite Singapore's various decarbonization measures, there are still some remaining carbon emissions that cannot be completely eliminated. Based on this situation, Singapore has had to buy some carbon credits from other countries to offset the remaining carbon emissions in order to meet the nationally determined contribution (NDC) it has set, commonly known as the national climate target.

 

Information Links:

https://finance.sina.com.cn/money/forex/forexinfo/2022-12-06/doc-imqmmthc7231708.shtml

 

United States: The Department of Labor passes regulations to remove barriers to ESG investing in retirement savings and pensions

The U.S. Department of Labor announced a rule that allows retirement savings and pension trustees to consider ESG factors when choosing investments and exercising shareholder rights. The Department of Labor believes that two rules issued earlier in 2020 limit the ability of plan trustees to weigh ESG factors when choosing investments, while the new regulations will remove barriers to ESG investing and make retirement savings and pension investments more resilient.

 

Information Links:

https://www.caus.com/detail/37672

 

The Ministry of Ecology and Environment has clarified the screening criteria for key units of environmental supervision

Recently, the Ministry of Ecology and Environment issued the Measures for the Management of the Directory of Key Units of Environmental Supervision. The Measures specify the key units of environmental supervision, including key pollutant dischargers for the water environment, key pollutant dischargers for groundwater pollution prevention and control, key pollutant dischargers for atmospheric environment, key pollutant dischargers for noise, key soil pollution supervision units, key environmental risk control units, and screening conditions for key units. Key units of environmental supervision will be uniformly listed on the information platform of the directory of key units of environmental supervision.

 

Information Links:

https://www.mee.gov.cn/xxgk2018/xxgk/xxgk02/202212/t20221201_1006540.html

Britain and Thailand signed a memorandum of understanding to jointly promote inclusive and sustainable financial development

On November 30, 2022, the British government, represented by the British Embassy in Bangkok, and the Bank of Thailand signed a Memorandum of Understanding (MoU) on cooperation in financial services. Building on the previous MoU, this MoU aims to strengthen the strategic partnership between the two parties and support Thailand's efforts to improve financial inclusion and promote sustainable growth in line with the Sustainable Development Goals.

 

Information link:

https://www.gov.uk/government/news/the-uk-and-the-bank-of-thailand-sign-new-mou-on-financial-services-to-support-inclusive-economic-growth

 

Bank of Italy: Meloni's plan to promote cash is risky

A government plan to promote cash payments rather than digital payments could spur the country's black economy and hamper efforts to crack down on tax evasion, the Bank of Italy said. Italian Prime Minister Giorgia Meloni's new right-wing coalition wants to raise the legal limit on cash transactions from 1,000 euros to 5,000 euros. In the 2023 draft budget, the Meloni government also proposed allowing merchants to reject digital payments for transactions below 60 euros.

 

Information link:

https://www.cnbc.com/2022/10/21/italys-giorgia-meloni-accepts-mandate-to-form-new-government.html

 

South Korea plans to force listed companies to provide English company documents from 2024

According to Yonhap News Agency, the relevant person in charge of South Korea's Financial Services Commission (FSC) stated at a meeting held at the headquarters of the Korea Exchange that in order to help international investors get enough information, the agency plans to force listed companies to provide English versions of their companies "in stages". document. It is reported that listed companies with assets of 10 trillion won (approximately 7.7 billion U.S. dollars) and above will issue corporate documents in English from 2024, while companies with assets of around 2 trillion won will implement this from 2026. one request. According to FSC data, as of the end of June, foreign institutions held about 30.7% of the local stock market in terms of market capitalization.

 

Information link:

https://www.fsc.go.kr/eng/index

 

Nigeria lowers ATM withdrawal cap to encourage digital payments

According to Bloomberg News, in order to encourage the development and application of electronic payment, the Central Bank of Nigeria recently issued a notice to relevant institutions, requesting that the daily withdrawal limit of ATM machines be lowered from 150,000 naira to 20,000 naira (about 45 US dollars), and the weekly Withdrawals are capped at N100,000 for individuals and N500,000 for businesses. The Central Bank of Nigeria stated that “customers should be encouraged to use alternative channels – Internet Banking, Mobile Banking Apps, USSD, Credit Cards, POS, eNaira for banking transactions.

 

Information link:

https://finance.stockstar.com/IG2022120900003497.shtml

The general trend of industry growth Datang Wealth released the "China Wealth Management Index"

Recently, Datang Wealth, one of the leading enterprises in the wealth management industry, released an overview of the development of the wealth management industry and the "China Wealth Management Index". During the previous Datang Live Broadcast Program, Kou Yufei, Senior Deputy General Manager of Datang Wealth Research Institute, shared the development history and prospects of China's wealth management industry. Datang Wealth Research Institute emphasized that today's traditional financial model is no longer suitable for the needs of economic transformation. Simple loan business is a more suitable financing method with traditional industrial structure. The development of the new era requires a complete overturn of the traditional financing model.

 

Information Links:

https://talk.cri.cn/n/20221209/7f917455-198c-da33-7a62-105f9ead7932.html

 

Wealth management from the perspective of "New Retail"

Yang Ya said: "In terms of products, we have strong product investment research and optimization capabilities, and have created a service system of strategy layer, product layer, sales layer, operation layer, and transmission layer in the industry. We regard the investment and research-driven investment advisory service system as the core competitiveness of the wealth management business, and have established an asset allocation committee at the head office to provide different perspectives and voices by bringing together all the investment and research forces of the group's subsidiaries to jointly formulate the asset allocation strategy of the group's wealth management sector.

 

Information Links:

https://kmrb.kmzscc.com/clzgcms/index.php?a=shows&catid=31182&id=169678

 

Fang Zhenyu, Assistant President of WeBank: Facing digital wealth management

After the implementation of the new asset management regulations, the wealth management industry has entered a new era. With the gradual emergence of the new pattern of "big wealth management", digital wealth management business is becoming a new battlefield for many financial institutions. Since the beginning of the year, not only the major state-owned banks and joint-stock banks have continued to move in wealth management, but more and more small and medium-sized local banks have also significantly accelerated the layout of digital wealth management business. As a digital bank focusing on inclusive financial services, WeBank recently officially launched the "WeBank Wealth+" brand.

 

Information Links:

https://fund.eastmoney.com/a/202212082582535487.html

Open banking platform Plaid plans to cut 260 jobs

On December 7, 2022, Zach Perret, founder and CEO of the open banking platform Plaid, announced that due to the external environment such as the economic recession, the company will lay off 260 employees, involving offices around the world. Founded in 2012, Plaid mainly uses its API products to help users connect their bank accounts with financial technology applications such as Venmo, Robinhood, Coinbase and Acorns, and share information and data.

 

Information link:

https://www.kron4.com/news/bay-area-financial-tech-company-plaid-announces-layoffs/

 

Amazon's cloud computing unit AWS will maintain hiring and build new data centers in 2023

Recently, Matt Garman, senior vice president of sales and marketing for AWS, Amazon's cloud computing division, said that although hiring in other parts of the company has been frozen, the AWS department may continue to recruit employees and build new data centers in 2023. The company also made several other announcements at the conference about new data and security services, and a new AWS self-developed chip. Earlier this month, Beth Galetti, Amazon's senior vice president of human resources, said the company was putting its workforce on hold.

 

Information link:

https://www.databricks.com/speaker/matt-garman

 

Animoca Brands Plans $2 Billion Metaverse Fund

Yat Siu, co-founder of venture capital and software firm Animoca Brands, recently told Nikkei that the firm is planning to launch a $2 billion fund to finance metaverse companies. The firm made a staggering 66 investments in the first half of 2022, a record for the cryptocurrency space. Animoca Brands raised $75.3 million last July at a valuation of $5.9 billion. In early September, the company secured $110 million in funding from investors including Temasek and GGV Capital, and a $21 million infusion later that month.

 

Information link:

https://cryptopotato.com/animoca-brands-unveils-2b-metaverse-fund/#:~:text=Animoca%20Brands%20Unveils%20%242B%20Metaverse%20Fund%201%20While,...%203% 20The%20exec%2C%20in%20a%20statement%2C%20said%2C

 

South Korea Releases Metaverse Ethics Guidelines

On November 28, 2022, South Korea’s Ministry of Science and ICT released a guideline on core ethical principles for Metaverse application participants, including users and developers, at a ministerial meeting. The department said its Metaverse guidelines are based on three core values, including authentic identity, safe experience and sustainable prosperity. The code identifies eight principles that underpin its core values: authenticity, autonomy, reciprocity, privacy, fairness, data protection, inclusion and responsibility for the future. The guidelines are not legally binding, but the Ministry of Science encourages Metaverse participants to refer to them.

 

Information link:

https://www.163.com/dy/article/HNEHFC5B05198086.html

 

"Buy now, pay later" giant Klarna's valuation has plummeted 85%

Klarna reportedly posted higher revenue and higher losses in the third quarter of 2022. In 2022, the company has experienced two rounds of layoffs. After the new funding round, the company’s valuation dropped 85% to $6.7 billion. In May, the company laid off 10% of its workforce, followed by a second round of layoffs in September, with about 700 people leaving the company. The job cuts helped cut the company's operating loss by 42 percent between the second and third quarters, but the business still lost 8.3 billion kronor (787 million kronor) in the nine months to the end of September, according to the company's latest report. One hundred million U.S. dollars). In the nine months to the end of September, revenue rose 22% from a year earlier to $1.4 billion, the company said.

 

Information link:

https://www.cnbc.com/2022/07/11/klarna-valuation-plunges-85percent-as-buy-now-pay-later-hype-fades.html

 

 

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