Financial Technology Weekly | Issue 23

German embedded B2B payments platform Monite secures US$5 million seed funding round

Monite, a Berlin-based embedded B2B payments platform, recently announced $5 million in seed funding led by Third Prime and followed by S16, Audeo Ventures and Long Run Capital. The company has also received support from Nium founder Prajit Nanu, Penta co-founder Igor Kuschnir, Klarna founder Victor Jacobsson, Mollie founder Adriaan Mol, former PayPal executive Phil Valka and Plaid executive Jason Pate's support, Monite, provides APIs for businesses to embed invoicing and vendor management into existing payment tools, thereby reducing manual intervention in the B2B payment process, not only streamlining costs but also increasing efficiency.

 

Information link:

http://www.ocn.com.cn/touzi/202303/buiir24091955.shtml

Comment: Monite had received a $5 million investment led by Point72 Ventures in early 2022, bringing the company's cumulative funding to date to a total of $10 million.

 

Indian mobile payments company PhonePe receives $200 million investment from Walmart

PhonePe, an Indian mobile payments company, recently announced that it has received $200 million in funding from US retail giant Walmart. In the future, PhonePe plans to shift its business from Singapore to India and further develop and expand a number of financial services including insurance, wealth management, stock trading and loans.

 

Information link:

https://www.163.com/dy/article/I09S1TST05198086.html

Comment: To date, the company has raised a cumulative US$650 million in funding, valuing the platform at US$12 billion.

 

Helping Users Survive Silicon Valley Banking Crisis, Workforce Management Startup Rippling Raises $500 Million

17 March 2023 - Rippling, a cloud-based workforce management platform, has announced a $500 million funding round led by Greenoaks Capital, raising approximately $1.2 billion in cumulative funding since its inception in 2016 and keeping the platform's valuation at $11.25 billion.

 

Information link:

https://www.weiyangx.com/420986.html

Comment：With Rippling's cloud-based platform, HR teams in user companies can perform various daily tasks such as payroll management, insurance registration, data entry, etc.

 

Israeli social investment platform eToro raises another US$250 million

21 March 2023 - Israeli social investment platform eToro has announced a US$250 million funding round with participation from SoftBank Vision Fund 2, ION Group and Velvet Sea Ventures, taking the platform's valuation to US$3.5 billion.

 

Information link:

http://www.wzsee.net/event/2023/0323/0323114162.html

Comment: eToro, which primarily provides users with stock trading, crypto and other asset trading services, has raised $582.7 million in cumulative funding since its inception in 2007, with the last funding round being a $100 million Series E round in 2018.

UK government establishes new national fintech centre

The UK Government has officially launched a new National Fintech Centre with jurisdiction over insurtech companies. The new financial innovation and technology centre, which will promote the development of fintech and innovation in the UK, has received £5.5 million in funding from HM Treasury and London.

 

Information link:

https://www.gov.uk/government/news/new-national-hub-for-fintech-to-be-launched-at-leeds-event

Comment: Acrisure is a global insurance brokerage company that aims to transform the insurance value chain and deliver high quality insurance and risk management solutions through agency partners.

 

Esusu partners with insurtech Sure for rental insurance

Insurtech company Sure has announced a partnership with fintech Esusu for rental insurance. The product will be sold through Esusu's rental exchange marketplace. Esusu reports monthly to the three major credit bureaus, Equifax, Transunion and Experian, on rental payments for the month, building up the population's credit score system.

 

Information link:

https://www.prnewswire.com/news-releases/esusu-partners-with-sure-to-offer-renters-insurance-to-its-nationwide-community-301760368 .html

Comment: Now Esusu is using Sure's digital insurance infrastructure to provide rental insurance products to millions of Americans who do not have access to financial services. sure will deploy technology for this partnership to provide better financial services to consumers.

 

Insurtech Novidea and Further Group enter into partnership

Insurtech Novidea has entered into a partnership with Further Group, a provider of health insurance product solutions. Novidea will implement the deployment of its cloud-native, end-to-end data-driven insurance management platform to support its new partners.

 

Information link:

https://www.the-digital-insurer.com/zh-CN/aggregator/insurtech-novidea-teams-up-with-further-to-implement-insurance-platform/

Comment: Founded in 2012, Further is a high-growth company in the health insurance sector with a presence in 30 countries and partnerships with over 300 insurers and groups.

 

RAC Connected launches AI smart camera-based fleet telematics solution

RAC Connected has partnered with Exeros Technologies to add AI-powered intelligent camera capabilities to its fleet telematics solution. The partnership is said to give the video telematics solution a new feature upgrade to keep drivers and vehicles safe and address distracted driving issues.

 

Information link:

https://fleetworld.co.uk/rac-integrates-ai-powered-smart-cameras-into-fleet-telematics-solutions/

Comment: Its features include capturing front and rear images of the vehicle, monitoring the driver's posture in real time and detecting if the driver is driving fatigued. The fleet can also use advanced driver assistance systems to prevent accidents through road scanning and other means.

Southeast Asian 'buy now, pay later' platform Kredivo raises $270 million in funding led by Mizuho Bank

Formerly known as FinAccel, fintech platform Kredivo provides "buy now, pay later" credit services to consumers in Indonesia and Vietnam who do not have access to adequate banking services. The company recently announced a US$270 million Series D round led by Japan's Mizuho Bank, with participation from existing investors Square Peg Capital, Jungle Ventures, Naver Financial Corporation, GMO Venture Partners and Openspace Ventures. In 2022, Kredivo announced that it was abandoning its plans to go public with SPAC due to unfavourable market conditions. Going forward, Kredivo will use the financing primarily to support its existing digital payments and credit services ecosystem and to fund the upcoming launch of Kroo, an emerging bank.

 

Information link:

https://finance.stockstar.com/IG2023032400013864.shtml

 

UBS acquires Credit Suisse for CHF 3 billion

On 19 March 2023, the Swiss Federal Government announced that Credit Suisse will be acquired by UBS. The Swiss Federal Government has stated that the acquisition of Credit Suisse by UBS is the best solution to restore the confidence recently lacking in the financial markets in the face of the current difficult situation, as well as to manage the risks faced by Switzerland and its citizens.

 

Information link:

https://news.cctv.com/2023/03/20/ARTIK2ZNVKjYbGyXm7JEzVui230320.shtml

 

Coalition of US mid-sized banks calls for federal deposit insurance to be extended to all deposits

A coalition of mid-sized US banks recently asked federal regulators to extend Federal Deposit Insurance Corporation (FDIC) insurance to all deposits for a period of two years to avoid a wider run on these banks. In a letter to regulators, the coalition said, "Doing so would put an immediate stop to the outflow of deposits from smaller banks, stabilise the banking industry, and significantly reduce the likelihood of additional bank failures. Despite the overall health and safety of the banking sector, confidence in all but the largest banks has been eroded. Confidence in our banking system as a whole must be restored immediately and if one more bank fails, the flight of deposits will accelerate."

 

Information link:

https://new.qq.com/rain/a/20230319A02W3M00

 

Russian media: Bank of Russia announces ban on Russian financial institutions using SWIFT system for domestic transactions

Russia's financial regulator, the Bank of Russia, announced on March 20 that it has banned Russian financial institutions from using the Society for Worldwide Interbank Financial Communications (SWIFT) communications system when conducting domestic transactions, Russia Today TV reported on its website on March 20. The SWIFT system will only be allowed to be used for international settlements, the report said. The Central Bank of Russia created the SPFS system in 2018 as an alternative to the SWIFT system in the domestic market.

 

Information link:

https://finance.sina.com.cn/jjxw/2023-03-22/doc-imymsuqe2943563.shtml

Turning farmland into a carbon capture system, climate tech company Andes secures $30 million in funding

Andes, a climate technology startup from California, USA, has announced a $30 million funding round with participation from investors including Leaps by Bayer, Cavallo Ventures and Germin8. The company uses microorganisms living in large areas of farmland to capture carbon dioxide and convert it into minerals, thereby reducing the amount of greenhouse gases in the atmosphere. According to statistics, about 52% of the land in the US is used for agriculture. This technology has the ability to turn large areas of land into carbon-absorbing ecosystems. For a long time, this technology was only used by soybean growers. They will use Bradyrhizobium, a nitrogen-fixing bacterium that acts as a natural fertiliser while also increasing yields. But it is not easy for other crops to coexist peacefully with the slow-growing rhizobia. Carbon capture technology has been one of the most popular categories for seed round investments in recent times.

 

Information link:

https://www.weiyangx.com/category/express

 

Tencent launches billion dollar funding programme for China's CCUS sector

Carbon Capture Utilisation and Storage (CCUS) technology is an important tool for reducing carbon emissions, ensuring energy security and achieving sustainable development, and is one of the key technologies that are indispensable for achieving the goal of peak carbon neutrality. "The Carbon Search Project was officially launched in Beijing.

 

Information link:

http://www.xinhuanet.com/tech/20230324/986404fef07744f49bc13302238ccf47/c.html

 

Korean government unveils carbon neutral programme, plans 90 trillion KRW R&D budget

The Korean Ministry of Environment and the 2050 Carbon Neutral Green Development Committee released the government programme "The First National Carbon Neutral-Green Development Basic Plan" (2023-2042) on 21 March. According to the plan, the government aims to reduce carbon emissions by 40% by 2030 compared to 2018. In addition, the Korean government will invest a budget of 89.9 trillion won (approximately 473.5 billion yuan) from this year to 2027 for research and development of core technologies for carbon neutral industries, zero-carbon energy and green transformation and upgrading, and subsidies for electric and hydrogen vehicles.

 

Information link:

https://finance.sina.com.cn/esg/2023-03-22/doc-imymtfcz9614742.shtml

 

J.P. Morgan and China Rural Development Foundation Launch Green Development Project for Rural Industries

As the first wholly foreign-owned securities company in China, J.P. Morgan Securities (China) is exploring a greener platform for rural industry development with the China Rural Development Foundation, in addition to developing its own business, to create a more sustainable economic development model and ecological environment. In the next three years, the project will continue to promote and improve the existing successful practice model of Shanpin Commune, add new green demonstration sites for climate resilience and sustainable agricultural rural revitalisation, and further promote the development of a green curriculum, improve the system of practical training and follow-up services through the J.P. Morgan-supported Sichuan Mengdingshan Cooperative Development Training Institute, which will train over 400 farmers' cooperatives with a more sustainable development philosophy. This will train more than 400 farmers' cooperative leaders who are better equipped with green and sustainable development concepts, promote inclusive growth and help consolidate the achievements of poverty alleviation and rural revitalisation.

 

Information link:

https://news.cnstock.com/news,qy-202303-5035267.htm

FCA proposes changes to ESG disclosure benchmark

On 20 March 2023, the UK Financial Conduct Authority (FCA) announced the completion of an initial review of environmental, social and governance (ESG) benchmarks. The results showed that the overall quality of ESG information disclosed by the benchmark administrators was poor. In response, the FCA sent a separate letter to the above institutions outlining the issues that had been identified, including: 1) insufficient detail on the ESG factors considered in the benchmarking methodology; 2) failure to ensure that the ESG data used in benchmarking and the underlying methodology for rating products are accessible and clearly presented and explained to users; 3) incomplete implementation of ESG disclosure requirements; and 4) failure of benchmarking administrators to properly implement its ESG benchmarking methodology, for example by using outdated data and ratings, or by failing to apply ESG exclusion criteria.

 

Information link:

https://www.weiyangx.com/category/express

 

Swiss Financial Supervisory Authority speaks out for the first time this week, stressing that full write-down of AT1 bonds is legal and compliant

Last Sunday's official announcement of UBS's takeover of Credit Suisse coincided with the Swiss financial regulator's approval to grant financial support to the new merged UBS, in addition to ordering a full write-down of Credit Suisse Group's Additional Tier 1 capital debt (AT1), with a subsequent dust-up of assets worth CHF16 billion (about R120 billion). As a result of the "AT1 bonds before equity capital write-down" scenario in the Swiss regulatory logic, in addition to triggering a panic sell-off in the AT1 bond market, a number of banks have had to postpone their plans to issue new bonds in the near future, pending stabilisation of market conditions.

 

Information link:

https://finance.eastmoney.com/a/202303232670928098.html

 

SEC proposes new rules on cyber security risks in securities markets

The U.S. Securities and Exchange Commission (SEC) has proposed requirements for broker-dealers, clearing agencies, major security swap participants, municipal securities rulemaking committees, national securities associations, national securities exchanges, security swap data repositories, security swap dealers and transfer agents (collectively, "market entities") to address their cybersecurity risks. The proposal would require all Market Entities to implement policies and procedures designed to reasonably address their cybersecurity risks and to review and assess, at least annually, the design and effectiveness of their cybersecurity policies and procedures, including whether they reflect changes in cybersecurity risks during the period under review.

 

Information link:

https://www.weiyangx.com/category/express

 

FTC launches investigation into small business credit reporting

On March 16, 2023, the U.S. Federal Trade Commission (FTC) launched an investigation into the small business credit reporting industry, ordering five companies in the industry (Dun & Bradstreet, Experian Information Solutions, Equifax, Ansonia Credit Data and Creditsafe USA) to provide the Commission with detailed information about their products and processes. Credit reporting by individual consumers is governed by the Fair Credit Reporting Act. In contrast, there is no specific federal law in the United States that outlines the procedures and protections available to small businesses with respect to credit reporting. This can make business credit reports difficult to understand, and it is particularly difficult for small businesses to correct errors or omissions in their credit reports in a timely manner.

 

Information link:

https://finance.stockstar.com/IG2023032300013019.shtml

Hong Kong shows goodwill to global family offices for the second time with 'tax incentives and exemptions'

On 24 March, the Hong Kong SAR Government released its Policy Statement on the Development of Family Office Business in Hong Kong, mentioning the introduction of a new Capital Investment Entrant Scheme, tax concessions and incentives to attract global family offices to do business in Hong Kong. "Our goal is to develop Hong Kong into a philanthropic hub, deploying philanthropic funds for family offices and philanthropists worldwide to benefit Hong Kong, the Mainland and the rest of the world." The HKSAR Government said.

 

Information link:

https://www.21jingji.com/article/20230324/herald/01f887f691f351ad44b5d9b3a0134450.html

 

China Digital Finance Cooperation Forum and the Institute of International Monetary Studies of Renmin University of China jointly released the "China Wealth Management Capability Assessment Report (2022)

The report lists the top 100 institutions in terms of wealth management capability in 2022, of which 18 of the top 20 are banks, with China Merchants Bank ranking first with a total retention size of RMB 245.29 billion, with China Construction Bank, Industrial and Commercial Bank of China, and Bank of China ranking second to fifth. In addition, third-party internet distribution agencies Ant Fund and Daily Fund ranked seventh and fourteenth respectively. In terms of the number of top 100 institutions, among the top 100 institutions, 65 banks were listed, still in an overwhelmingly dominant position; brokerages, third-party internet institutions and fund companies were listed as 18, 10 and 6 respectively.

 

Information link:

https://cs.com.cn/xwzx/hg/202303/t20230324_6331962.html

 

Alecta, Sweden's largest pension fund, has sold its entire stake in First Republic Bank at an investment loss of SEK 7.5 billion

Sweden's largest pension fund Alecta, the fifth largest shareholder in First Republic Bank, had a total invested capital of SEK 9.7 billion before selling its stake on 15 March. Alecta's CEO said there was too much uncertainty about the future of First Republic Bank, partly due to the bank's downgrade to junk status, and that they had sold all their stake in the troubled US bank First Republic Bank at a loss of SEK 7.5 billion Swedish kronor (approximately US$728 million). The financial regulator has reportedly asked the firm to explain how and why it invested some SEK 21.8 billion of its fund in three niche US banks linked to the collapse of Silicon Valley Bank.

 

Information link:

http://stock.10jqka.com.cn/20230321/c645717693.shtml

 

Ping An Health Insurance launches 0 deductible version of medical insurance

Ping An Health Insurance has joined hands with Ant Insurance to launch the industry's first 0 deductible long-term medical insurance for children - "Good Medical Insurance - Children's Long Term Medical (0 Deductible)", which has been selected as one of Ant Insurance's "Gold Choices". Unlike most similar products in the market which have a deductible of RMB 10,000, the product breaks the limit of the deductible and allows users to be reimbursed as long as they spend money in designated hospitals, no longer limited by the reimbursement threshold. It is reported that the coverage of the product includes accidental outpatient and emergency medical benefits (covering large and small accidental outpatient and emergency medical benefits, 29 types of highly prevalent infectious diseases for children such as hand, foot and mouth disease and influenza A, and 3 types of specific disease outpatient and emergency medical benefits), general inpatient medical insurance benefits, 28 specific disease inpatient (including special needs) insurance benefits, and out of hospital specific malignant tumour drug expenses insurance benefits.

 

Information link:

https://finance.eastmoney.com/a/202303212668324222.html

Bill Gates: GPT is a revolutionary advance in over 40 years

On March 21, 2023, Microsoft co-founder Bill Gates published a blog post, "The Age of AI has begun". The article stated that OpenAI's GPT AI model was the most revolutionary technological advancement he had seen since the graphical user interface was first seen in 1980. Before that, people ran computers from the command line. Gates adopted the "GUI" technology and used it as the basis for the Windows operating system, creating a modern software giant.

 

Information link:

https://www.sohu.com/a/658225846_121124379

 

UAE and India sign MoU to boost cooperation in fintech, including CBDC

On 15 March 2023, the Central Bank of the UAE (CBUAE) and the Central Bank of India (RBI) jointly signed a Memorandum of Understanding (MoU) to plan cooperation in a number of fintech areas, sharing technology and knowledge on emerging trends, policies and laws. Among other things, the collaboration will focus on Central Bank Digital Currency (CBDC), facilitating the proof of concept and piloting of a "Bilateral CBDC Bridge" to facilitate cross-border CBDC remittances and transactions, and strengthening bilateral economic ties.

 

Information link:

https://www.163.com/dy/article/I09S1UDI05198086.html

 

Mastercard acquires Swedish cyber security company Baffin Bay

As part of its plan to build a multi-layered protection barrier for its global customers, payments giant MasterCard announced on 20 March 2023 the acquisition of Swedish cyber security company Baffin Bay, the terms of which were not disclosed to the public. Baffin Bay's cloud-based service uses artificial intelligence technology to automatically filter and counter malicious internet traffic at the network and application level. In the future, Baffin Bay's threat protection system will be attached to MasterCard's RiskRecon data analytics product, enabling users to identify vulnerabilities in advance.

 

Information link:

https://finance.stockstar.com/IG2023032200012516.shtml

 

IRS is considering taxing NFT

The IRS is considering whether to tax NFT on the same level as other collectibles such as stamps, art and fine wine, a move that could have an impact on those who include digital assets in their retirement plans, according to a document released on Tuesday. This proposed guidance is the first time in some time that the IRS has clarified the tax treatment of digital assets, addressing a vacuum of speculation by some taxpayers about their liabilities. The IRS and the Treasury Department are "seeking feedback on upcoming guidance on the tax treatment of NFTs as collectibles under the tax code" until 19 June on issues such as when an NFT constitutes an artwork.

 

Information link:

https://new.qq.com/rain/a/20230321A0ATA700

 

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