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FinTech Global
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Top Story of the Week
Redefining banking financial services and insurance operations - In the ever-evolving landscape of banking, financial services, and insurance (BFSI), a groundbreaking movement is underway, poised to revolutionise traditional operations and service delivery. At the forefront of this transformation is Intelligent Process Automation (IPA) – a pioneering blend of Artificial Intelligence (AI) and advanced process automation technologies. IPA is not merely an incremental improvement; it represents a paradigm shift, specifically engineered to automate written inquiries. InsurTech firm Simplifai investigates this pioneering technology.
Read the full story here.
Research highlight
Singaporean Blockchain & Digital asset companies raise almost half of FinTech seed deals in 2023
Key Singaporean FinTech seed investment stats in 2023:
• Singaporean FinTech seed funding totalled at $191m in 2023, a 49% drop from 2022
• Singaporean FinTech seed deal activity reached 102 deals in 2023, a 42% reduction YoY
• Blockchain and Digital assets companies raised 46% of all FinTech seed deals in the country during 2023
In 2023, the total seed investment in Singaporean FinTech amounted to $191m, marking a notable decline of 49% compared to the previous year. Concurrently, the number of seed deals in Singaporean FinTech saw a significant reduction, reaching 102 deals, which represented a YoY decrease of 42%.
dtcpay, a regulated payment service provider, had the largest Singaporean FinTech seed deal in 2023 after raising $17m in their latest seed deal, led by Kwee Liong Tek. dtcpay is set to unveil a new payment system that will support both fiat and cryptocurrencies for in-store and online transactions. In their announcement, the company referenced Tether (USDT), Ether (ETH), and Bitcoin (BTC). The company is partnering with open-source blockchain PlatON for privacy-protected digital infrastructure and Allinpay International to create smart terminals and a digital interface. Both PlatOn and Allinpay are based in China. Dtcpay and Allinpay are registered with the Monetary Authority of Singapore (MAS) as major payment institutions.
The Blockchain and Digital assets subsector had 47 deals in 2023, accounting for 46% of Singapore’s seed deal activity. Second was PayTech with 12 transactions, a 11% share of total deals and Lending Technology was third with 10 deals, a 9% share of total deals.
The latest Singaporean Fintech regulation comes from the PayTech sector. The Monetary Authority of Singapore (MAS) has issued a Notice on December 18, 2023, instructing licensed payment service providers offering cross-border money transfer services (remittance companies) to temporarily halt the use of non-bank and non-card channels when sending money to individuals in China. This suspension will be in effect for three months, from January 1, 2024, to March 31, 2024. The decision comes in response to reports of funds sent by individuals (mostly Chinese nationals working in Singapore) through remittance companies being frozen in their recipients' bank accounts in China. Although most remittances using these channels are successful, a small portion has faced freezing in China, prompting MAS to take this precautionary measure to protect consumers. Remittance companies have been instructed to assist affected customers, improve complaint handling processes, and review their arrangements with partners for the China remittance corridor. The suspension aims to safeguard consumers and will commence on January 1, 2024, following a 14-day notice period. MAS advises the public to use alternative channels like banks or card networks during this period to avoid any potential freezing of funds. The situation will be closely monitored, and the suspension may be extended or terminated as deemed necessary after March 31, 2024.
Weekly FinTech deal roundup
FinTech records a quiet week with 20 deals - The FinTech sector has recorded its second week of investment below $500m across 20 deals reported on by FinTech Global.
RegTech news
Navigating KYB checks: The gateway to business transparency and trust - In today’s digital era, where business transactions and partnerships extend beyond borders, the importance of conducting due diligence cannot be overstated. Read the full story here.
New SEC rules could change the game for hedge funds and trading firms - The U.S. Securities and Exchange Commission (SEC) has recently made significant adjustments to its regulatory framework, introducing two pivotal rules, Rules 3a5-4 and 3a44-2, collectively known as the Final Rules. Read the full story here.
Navigating the maze of policy management in finance: A technological compass - The importance of robust, clear, and compliant policies and procedures cannot be overstated in the dynamic realm of financial services. These fundamental elements empower firms to align their operations with strategic goals, adhere to regulatory mandates, and cultivate a culture rooted in accountability and transparency. Read the full story here.
InsurTech news
Inside the evolution of risk data in insurance - Underwriting has often been considered as the bedrock upon which insurance policies are built. Coupled with a rigid loss control strategy, these tenets make up the heartbeat of the insurance industry, shaping its trajectory and resilience in the face of evolving challenges. A host of insurance industry experts delved into the changing roles of underwriting and loss control and discussed the future of risk engineering. Read the full story here.
Earnix’s Fairness Lab: Shaping the future of ethical AI and ML equity - The advent of machine learning (ML) and artificial intelligence (AI) has revolutionised the predictive analytics landscape. Yet, as we leverage these advancements, the imperative to navigate the terrain of fairness and ethics becomes paramount. It’s crucial that we strive to foster equal opportunities and outcomes for all, irrespective of race, gender, age, or other sensitive attributes. Read the full story here.
How evolving customer expectations will change insurance - As the landscape of the insurance industry undergoes a profound transformation, driven by technological advancements, shifting societal values, and evolving consumer preferences, incumbents are grappling with the imperative to redefine their approach to customer engagement. Today’s insurance customers demand more than just protection; they seek slick and efficient operations, that are personalised and tailored to their exact needs. Read the full story here.
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WealthTech news
Embracing personalisation: How WealthTech is redefining investment strategies - The landscape of investing is undergoing a seismic shift, transitioning from the traditional broad-stroke approaches to a new era where personalised investing takes centre stage. Read the full story here.
Key AML compliance strategies for wealth and asset managers in 2024 - In an era where regulatory oversight of the wealth and asset management sector is intensifying globally, the stakes for compliance have never been higher. This sector, pivotal to national economies, plays a crucial role in helping consumers manage their assets and achieve their financial goals. However, its significance also makes it a potential target for misuse by malicious entities aiming to launder money. Read the full story here.
Elevating salesforce with lightning web components: A journey to front-end excellence - The cutting-edge world of Salesforce Lightning Web Components (LWC) allows for innovation and seamless user interface design converge to craft dynamic, personalized experiences on the Salesforce Platform. As LWC’s global adoption eclipses traditional UI development methods, such as Aura, its significance for Salesforce Developers has never been clearer. Read the full story here.
CyberTech news
$60m boost for BigID to lead AI data security and compliance market - BigID, an AI-augmented data security, compliance, and privacy firm, has announced the closure of a significant $60m growth funding round. Read the full story here.
CyberSaint’s $21m Series A fuels global cyber risk management innovation - CyberSaint, a cyber risk management solutions firm, has announced a milestone in its growth trajectory, securing $21m in Series A funding. Read the full story here.
Cybersecurity innovator Sevco Security lands $17m for growth acceleration - Sevco Security, a cloud-native Cyber Asset Attack Surface Management (CAASM) platform, has announced a significant milestone in its growth trajectory. Read the full story here.
ESG FinTech news
Bridging the compliance gap: A roadmap for CSRD readiness and beyond - In the realm of financial and environmental sustainability, conducting a double materiality assessment (DMA) is a crucial initial step for businesses. Read the full story here.
Morningstar unveils low carbon transition leaders indexes - Morningstar, a provider of independent investment insights, has announced the launch of its Morningstar Low Carbon Transition Leaders Indexes. Read the full story here.
US court temporarily blocks SEC’s climate disclosure rule - The Fifth Circuit U.S. Court of Appeals has temporarily halted the enforcement of the U.S. SEC new climate-related disclosure rule. Read the full story here.
Other FinTech news
Mastercard simplifies subscription management with open banking-powered solution - Mastercard, a global leader in payment technology, has launched an open banking-powered solution which seamlessly integrates into consumer banking applications for financial institutions. Read the full story here.
Nuapay acquisition by GoCardless: A strategic move towards full-service bank payment solutions - GoCardless, a leading bank payment company, has entered into an agreement to acquire Sentenial, which operates globally under the Nuapay brand, from EML Payments Limited, pending regulatory approval. Read the full story here.
NatWest boosts payments innovation with strategic investment in Icon Solutions - NatWest, a major player in the banking sector, has made a strategic minority investment in Icon Solutions, a pioneer in the FinTech industry known for its advanced payments technology and consultancy services. Read the full story here.