Discover more from Marcel’s FinTech Europe Newsletter
FinTech Europe | 2023 #33
Weekly news up to Tuesday, 15th of August 2023
In this report from the IIF and Deloitte we look at the impact of data policies and the importance of broadening the scope from Open Banking to Open Data, not just Open Finance.
👀 NEWS HIGHLIGHT
Designed for a hybrid workforce, a virtual Just Eat Pay card allows companies to provide parity of benefits to their teams wherever they're working.
It's a fully flexible solution, meaning that you can add it to your Apple Wallet/Google Wallet and order food and drinks on the go from a wide variety of restaurants and eateries.
Key FinTech investment stats in Ireland, H1 2023:
• Irish FinTech companies raised a combined $61m in H1 2023, an 81% drop YoY
• Irish FinTech deal activity reached 17 transactions in the first half of the year, a 1% increase from H1 2022
A Guide for how and where to Play - to Win:
If you shop online, you’ve likely interacted with (or at least seen) embedded finance, most commonly in the form of the Buy Now, Pay Later button that has become all but ubiquitous during online checkout.
The emergence of fintech companies focusing on innovative climate solutions has gained significant momentum in recent years. They are offering fresh perspectives to financial institutions and corporations, helping them achieve their climate goals. As world leaders begin to grasp the urgency of the situation, climate technology is rapidly maturing beyond just being a hot topic.
A recent study has revealed that two-thirds of crypto firms in the UK are failing to verify the credentials of the financial firms they conduct business with.
The research from anti-money laundering software firm SmartSearch reveals that, out of 500 financial institutions it surveyed in the UK, ranging from crypto firms, gaming outlets, and banks, only 28% often carry out verification checks.
In the first quarter of 2023, the revenue of Electronic Money Institutions (EPĮ) and Payment Institutions (MĮ) in Lithuania🇱🇹 increased by 29% to 107 million EUR, while payment transactions grew by 24% to 108 billion EUR.
While individual institutions continue to significantly influence sector results, the Bank of Lithuania aims for maturity in the EPĮ and MĮ sectors.
The monthly transactions from external companies (i.e. excluding Klarna’s own use of the platform) on Klarna’s open banking platform have grown by 210% in the past 12 months. Due to this impressive growth, Klarna has changed the architecture of the brand. Klarna Kosma will continue as the identity for the bank connectivity product. This innovative service allows fintech companies to access 15,000 banks worldwide through a single API, fostering seamless integration and connectivity in the finance sector. This allows us to provide more focus to this fast-growing business.
This is how employees rank the top boss at European fintech unicorns, according to hundreds of employee Glassdoor reviews
Like most of European tech, the continent’s fintech CEOs have had to navigate a rough 12 months. A funding drought and sweeping layoffs have led to redrawn business plans and complete pivots becoming commonplace among the sector’s leaders.
The next couple of years will see lots of evolution in the space, with Open Banking used to facilitate transferable digital identity, popular finance management apps gaining more widespread adoption and even more niche Open Banking solutions for customers.
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🌎 FINTECH HIGHLIGHTS
⭐️ Bud Financial launches Bud.ai, a generative Al core platform to deliver hyper-personalized banking experiences.
⭐️ TransferGo hit with €310,000 fine from Bank of Lithuania for AML failings.
⭐️ SumUp secures $100m credit facility for new cash advance product.
⭐️ Fronted is shutting down in the face of rising capital costs.
Deko has announced a milestone BNPLaaS partnership with Aero Commerce, bolstering the e-commerce platform's offering and technological capabilities.
Brite Payments announced that it has expanded its product coverage with the launch of open banking-powered instant payments and payouts in Denmark.
Revolut to boost crypto team by 20% despite US exit. Digital lender eyes growth in other jurisdictions after pulling back from the US crypto market
Kore has raised just under £2.4 million from angel network Wealth Club under the Enterprise Investment Scheme (EIS) in a heavily oversubscribed round.
Vesttoo is in "active discussions" with potential investors to find alternative collateral for clients after a fake collateral scandal.
Yonder announced it is working with Smart Pension to enable companies and their UK-based employees to easily administer and enrol in a workplace pension.
Unicard announced its acquisition of Smart Ticketing specialists Ecebs from Visa, in a market transaction that will enable Unicard to offer a more comprehensive range of solutions in the UK, and abroad.
TSB and Fintech Scotland launch third annual Innovation Labs programme. The programme is open for applications across four areas: money confidence, inclusive services, delivering differently and a wildcard sector for fintechs that are beyond the bounds of the first three categories.
Allbricks is offering an alternative and mortgage-free route for property investors which boasts 32% higher returns than traditional buy-to-lets.
SureIn has closed a €4M Seed round for its mission to provide end-to-end insurance solutions to small and medium-sized businesses (SMBs).
Vesttoo files for bankruptcy protection. The firm announced plans to sack 75% of staff amid a growing scandal over the alleged use of a fraudulent letter of credit in a multi-billion dollar insurance transaction.
MOVERS & SHAKERS
Sanjiv Somani, the JP Morgan exec overseeing the bank’s fintech challenger business Chase in the UK, has stepped down.
In an overview of French FinTechs, Thomas Yeddou has categorized them into six main sectors .
If you are a fintech startup and have over 100 questions send me an email, maybe I can answer a few.