FinTech News of the Week – 15.08.2021

FinTech news of the Week, payments

Nexus: Central Banks’ Solution Proposal for International Money Transfers

International money transfers made with traditional methods are still expensive, difficult, and costly… Central banks are one of the parties that focus on this area where fintech and crypto-based solutions have become alternatives. Bilateral agreements are being made between countries in order to make the local instant payment systems developed under the leadership of central banks and the number of which has reached 60, become interoperable. However, the large number of money corridors will be a barrier to the international expansion of instant payment systems. The innovation center of BIS (Bank for International Settlements), known as the central bank of central banks, in Singapore, brought up the platform called Nexus, which will eliminate this difficulty in the report it prepared together with the Central Bank of Singapore and NPCI. Nexus, which was created by taking the opinions of many participants from different fields, will not only determine the rules but also act as a bridge between the instant payment systems of the countries.

Germany and Spain to Develop Joint Digital Identity Structure

Germany and Spain signed an agreement to design, develop and test a digital identity structure that will allow their citizens to access digital services in both countries. In this context, a working group will also be established. The identity solution, which will have a decentralized and self-sovereign structure, will also be open to the participation of other EU countries.

Plaid to Pay $58M for Processing Customers’ Non-Consent Data

About 5 years ago, one of the most discussed issues in open banking in Europe was screen scraping. Although fintech companies did not want screen scraping that required users to enter the banking password into a third-party interface, the regulators did not allow screen scraping due to data security concerns and wanted API-based data-sharing structures to be designed. In the USA, which is a few steps behind Europe, we saw that screen scraping was preferred due to the lack of regulation and preventive environment in this regard. Plaid, which acts as a bridge between banks and fintech companies and has a valuation of 13.4 billion dollars today, is one of the players that implement this approach.

Plaid was decided to pay $58 million to users in the lawsuit, which was seen on the grounds that, beyond the consent of its customers, the relevant fintech pulled more than it needed and sold the transaction history information it obtained. Explaining that it will make the necessary arrangements in the workflows to stop pulling data beyond the purpose, Plaid aims to move 75% of its data traffic to API-based flows by the end of the year.

BharatPe Becomes the 19th Unicorn to Release India This Year

BharatPe, the mobile payment solution fintech company that enables businesses to receive UPI-based payments in India, tripled its valuation in a $350 million round led by Tiger Global. The valuation of BharatPe, which has given approximately $300 million in loans to businesses and sold 50,000 physical terminals this year, has increased to $2.85 billion. The company became the 19th company in India to become a unicorn in 2021. BharatPe, which has 7 million workplaces in its network, received its previous investment in February at a valuation of 900 million dollars.

Kroo Wants to Become the World’s Largest Social Bank

Founded in February 2019 and preparing to apply for a full banking license, London-based Kroo has received a £17.7 million Series A investment. Offering a prepaid card to its users, Kroo has functions such as tracking financial status, creating payment groups, splitting the account, and paying bills through the application. The company, which has the vision of being the world’s largest social bank, plants 20 trees on behalf of its users for every friend it makes as a Kroo member.

Circle to Apply for Banking License

Circle, which served in the P2P payments space in its early years but later focused on the crypto asset space, announced that it wanted to obtain a national banking license. Circle, which established the CENTER consortium three years ago with Coinbase to launch the stablecoin named USDC, received an investment of $440 million in June. The total size of USDC, whose amount in circulation is increasing rapidly, has reached 27.5 billion dollars.

Brex Withdraws Banking License Application

San Francisco-based Brex, which provides corporate banking services for startups, applied to the authorized institution FDIC (Federal Deposit Insurance Corp.) to obtain a banking license (ILC — Industrial Loan Company) in February. Withdrawing its application voluntarily, Brex announced that it plans to apply again at a later date after strengthening its application. Established in 2017, Brex collaborates with Radius Bank and UMB Financial to offer FDIC secured accounts to its customers.

Keebo: Personalized Credit Card Initiative

England-based Keebo, which will start to serve in October, has received an investment of 5 million pounds. In the application, which will show users their accounts and transactions in different banks by making use of open banking, the credit card limit will be determined by looking at alternative data besides loan payment performance. Users will also be given feedback on how payments they make with their cards and paired accounts affect their credit score.

Chip Crisis Threatens Issuance of 1 Billion Cards

I had mentioned in last week’s bulletin that the problems experienced in the supply of chips had a negative impact on production in various sectors, and one of these sectors was payments. This week, the subject was on the agenda again with the work done by ABI Research. ABI Research shared its prediction that the chip crisis will threaten the issuance of 1 billion cards in the next 18 months.

SEE ALSO: Differences Between MetaTrader 4 and MetaTrader 5

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Caroline Tetra

One thought on “FinTech News of the Week – 15.08.2021

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