MAY 7, 2021
4 min read
May is already picking up speed, but our attention shouldn’t be distracted by the nice weather outside. Let’s make a productive pause and fine-tune your fintech knowledge! Follow our digest, and you’ll be at the top of the world!
Support vs. Opposition in FinTech
Citi & Mastercard Partnership — Another Successful B2C Case in the US?
Mindful fintech businesses are now strengthening their position in the market by bridging their ties with the other powerful banking service providers instead of staying away from the cost-effective liaisons. That’s exactly what Citi has been doing, building the cooperation with Mastercard Send technology. As a result, its customers are free to send money to their debit/prepaid card accounts, which saves time and skips the step of routine bureaucracy connected with cheques and banks’ verified access to the users’ credentials. Pure intermediation of today!
Why Does CSRC Put a Damper on Local Fintechs?
If you’re complaining about the European jurisdiction and regulations towards the fintech sector, pay attention to China. New and new law restrictions are coming into action to tie the fintech companies’ hands in the country. Though the reason behind is open-ended, the recent CSRS’ guidelines are blocking the air even more. According to them, fintechs are out of the list of legal businesses that are allowed by the Chinese authorities. However, many argue about the fintech end, reminding the abrupt suspension of Ant Group’s plans for a dual-listing in Hong Kong and Shanghai. A sliver of hope?
What’s Like to Be the RegTech in the 21st Century?
The Regtech organizations have been always seen as the antagonists of fintech, right? It’s time to break down this myth and destroy the related distortions! Except for the risk management within the financial system, there are way more functions and duties that are put on regtechs’ shoulders. One of the most tangible these days is fostering innovation in the sphere of finance, which involves cross-border junctures, open banking, and regulatory sandboxes. So, are they the ‘bad cops’ in the end?
FinTech News from Abroad
UK Fintech Week 2021 Begs a Question on Wise Divergence
Though the UK is thought to be among the top world innovators in fintech, the interested domain founders exhibit an interest in the more rigid regtech regime as well as ‘smart divergence’ implementation. One of them is Kristy Duncan, CEO of Women in Payments, who reckons that the lack of proper enforcement does no good to the fintech progress in the UK, comparing the situation in the other European countries. To her mind, the ‘smart divergence’ approach should improve the state of things by accelerating the adoption with the starting point in London. How do you feel about that?
Cryptocurrency Exchange Scandal in Turkey: Stay Сautious!
If you’re thinking about trying crypto and making a profit on it, steer clear of Thodex, which has turned out to be a new scam. 62 people are already arrested, and thousands of users are currently scared of no account access or withdrawal opportunities. What adds fuel to the fire is the mysterious escape of Faruk Fatih Ozer, CEO of Thodex, to Albania. Things seem complicated right now, but the Turkish police are already handling this, so we’ll know the investigation outcome very soon. Stay tuned!
Norway Is Thinking Over the New Tech Solutions for Central Bank
Norway’s central bank does its best in the in-time analysis of users’ behavioral patterns. Having noticed that the share of cash payments in Norway constitutes the world’s minority, they decided not to hesitate. The plan is to become a host of technical options for a CBDC in the foreseeable future. From now on, the Norges Bank scrutinizes the successful experience brought by Sweden, China, and the UK and aspires to leverage the beaten path at home. Let’s the luck accompany them!
Future Predictions about FinTech
Post-COVID Impact on Banking Tools: ‘Don’t Do This’ List
The recent research by Deloitte indicates that 35% of US citizens prefer using digital banking apps as a replacement for traditional financial services. Another tangible proof is provided by the BAI, testifying that half of its customer base is currently moving online, which wasn’t so before the pandemic. So, in the pursuit of digitalization, you need to know how not to stumble and slip. Get the basic recommendations in the article below!
Israelian Startup Pagaya Continues to Go Down A Storm
After gaining $317 million in revenue for the first 3 months, an Israel-originated start-up dared to set the even more ambitious goal — to enter Wall Street with the $8 billion rates. Sounds impressive, right? Another big plan of Pagaya is to blend with a SPAC, no matter what the recent regulations have brought to the fintech industry. And though some critics consider Pagaya too optimistic or even careless, the 350-people team is undoubtedly getting some heat. Will see what awaits them in the future!
Who Will Be the Next Under Affirm’s Buying?
No need to introduce Affirm — this BNPL giant is widely known in the global fintech market. But have you ever heard about Returnly? This young star has impressed the leader with its loyalty reputation and ability to effectively cope with merchants’ pains. The last business activity of Returnly with its $1 billion in returns finally persuaded Affirm in purchasing this business. Who else?
Were these reading pieces useful and interesting to you? Have you noticed our trust in Finextra? Next time, we’ll come up with more variety in our sources for you to be familiar with the best financial magazines in the world. But is DashDevs Digest a better alternative collecting the best of the best in one place? Think it through!