Integrating Kyndryl’s SIS platform into Broadridge’s suite of services will bring about accelerated innovation and increased investment in products for the Canadian wealth market. Broadridge is known for its commitment to providing advanced solutions that promote simplification and innovation within the financial services industry.

Broadridge offers technology and services that support the financial services sector in various capacities, including investment management, governance, and communications. The company’s platforms are crucial in processing over seven billion communications annually and support the daily trading of securities worth over USD 10 trillion globally.

With the acquisition of Kyndryl’s wealth management platform, Broadridge, which is part of the S&P 500 Index, continues to solidify its position in the industry.

Meanwhile, Broadridge reported its first quarter EPS (Earnings per share) of USD 1.00, USD 0.03, which is better than the analyst estimates of USD 0.97. Revenue for the quarter came in at USD 1.42 billion versus the consensus estimate of USD 1.48 billion.

As the results were announced on November 5, 2024, Broadridge’s stock price closed at USD 209.64, down -2.25% in the last three months and up 18.22% in the last 12 months. The global fintech leader also saw zero positive EPS revisions and six negative EPS revisions in the last 90 days.

The venture has already appointed David Fellah as its vice-president of artificial intelligence (AI) trading solutions based in New York. This newly created role at the New York-headquartered fintech will target financial institutions and corporates.

Fellah will be tasked with leveraging data, AI and analytics to deliver solutions that improve trading strategies and reduce costs for Broadridge’s clients. The newly appointed senior official has nearly 30 years of experience in the field of trading technology, quantitative research and advanced analytics, with his most recent role as head of international quantitative trading strategy at Instinet LLC, a trader broker subsidiary of Nomura Group. He has also worked for ITG and JP Morgan on trading analytics and quantitative research.

In 2023, Broadridge launched its generative AI-powered products, BondGPT for corporate bond traders and OpsGPT for operations teams. Both tools can answer queries, aggregate and analyse transaction data, and provide settlement visibility.

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The Financial Times reports that the banking app is preparing to sell USD 500 million worth of shares, allowing current owners—including staff members—to realise a portion of their gains at an estimated valuation of more than USD 40 billion.

Revolut would be by far the most valuable private company in Europe with that price tag, though the exact amount and valuation are still up in the air.

According to Sky News, Storonsky intends to profit in the tens or hundreds of millions of dollars, and other board members may follow suit.

The decision of a CEO and board members to sell down their stakes can be contentious, and this secondary sale will be closely watched as Revolut has emerged as the fintech industry’s crown jewel in the United Kingdom.

The fact that only current Revolut employees are eligible for the round and that former employees are not allowed to sell down their stakes is another contentious aspect. Revolut recently disclosed that it had turned a profit, bringing in 438 million pound (USD 553 million) and doubling its revenue to 1.8 billion pound (USD 2.27 billion).

A 46% increase in customers, bringing the company’s total to 38 million customers across the 38 countries it currently operates in, was cited by Storonsky as the reason for the company’s “exceptional financial performance.”

The fintech giant has also hit headlines in July due to other reasons. However, before discussing those developments, let’s have a quick brief about Nik Storonsky.

Who Is Nik Storonsky?

Nik Storonsky was born in Russia in 1984. He completed his Master of Science in General and Applied Physics at the Moscow Institute of Physics and Technology.

Storonsky was able to think analytically and have a thorough understanding of complex systems, because of his scientific training, which has helped him throughout his career.

Later on, Storonsky graduated from Moscow’s New Economic School with a Master of Applied Economics and Finance. The combination of his scientific and economic education prepared him for his success as a financial industry leader and entrepreneur in the future.

Nik Storonsky started his financial career as a trader at Lehman Brothers following his graduation. Later, he traded a variety of options, swaps, and foreign exchange instruments while employed at Credit Suisse.

Due to his trading background, Storonsky possessed a thorough understanding of global finance and the difficulties faced by individuals and companies requiring cross-border money transfers.

Storonsky envisions a world where financial services are available to everyone and money is not restricted by national boundaries through Revolut. His goal is to give customers and companies an easier way to transact without having to deal with cumbersome and complex traditional banking systems.

It’s possible that Storonsky’s love of travel and adventure sports had an impact on Revolut’s offerings. Along with access to airport lounges and travel insurance, the company also provides a budgeting tool to help customers save money for their next trip.

Additionally, Storonsky is dedicated to leveraging technology to improve the efficiency and accessibility of financial services, in addition to using state-of-the-art technology to give customers real-time transaction tracking and analytics.

Revolut’s Impact

The financial sector has been greatly impacted by Revolut. The company’s cutting-edge goods and services have put conventional banking systems under pressure and made them adjust to the shifting needs of customers. Due to Revolut’s success, other fintech businesses have been motivated to enter the market, increasing competition and stimulating creativity.

In the financial sector, Revolut’s success has not gone overlooked. Nik Storonsky is a well-known expert in his field who has won various honours and recognitions for his work with Revolut. He is number 906 on Forbes’ list of Billionaires for 2023, having a net worth of USD 3.03 billion as of May 2023. Forbes lists him on one of their prestigious lists of ‘who is who.’

In the financial sector, Revolut’s success has not gone overlooked. Revolut has won multiple accolades, including the title of overall winner of the Deloitte UK Technology Fast 50 award, in addition to being named the largest fintech company in the UK.

The innovative services and products offered by Revolut, like currency exchange, international money transfers, and surcharge-free ATM withdrawals, are partly responsible for its success.

Revolut has become a well-liked option for travellers and those requiring international money transfers thanks to these features.

In addition, Revolut provides investment choices, budgeting tools, and other financial services aimed at assisting consumers in improving their money management.

First Profit, IPO Talks And Many More

Revolut has finally registered a profit, as its revenues in 2023 almost doubled to 1.8 billion pound (USD 2.27 billion), helping it turn a pretax profit of 438 million pound (USD 553 million). This will provide relief to the fintech’s top-tier investors, including Index Ventures, SoftBank Vision Fund 2, and Balderton Capital, who have collectively poured over USD 2 billion into the company since 2015.

Revolut’s surge in profits was driven by a 46% jump in customers; 12 million new customers were added, bringing the total to 38 million across the now 38 countries in which Revolut operates. The feat powered a 59% increase in card and interchange fees (to 486 million pound) and a 46% rise in FX and the use of Revolut’s wealth platform, which includes crypto trading, to 395 million pound.

Revolut has also been working on securing a British banking license since 2021, and has repeatedly claimed that it would become an official bank “any day now.” The license is needed for the fintech venture to harness without its UK customer deposits to offer complex lending products, apart from enjoying the benefits of having the same customer deposit protections as official banks.

Revolut last completed a funding round in 2021, when SoftBank Vision Fund 2 and Tiger Global led an USD 800 million Series E funding round at a valuation of USD 33 billion. Revolut will “keep an open mind” on a potential listing venue as its latest financial results hinted at plans for a much-anticipated IPO. While Martin Gilbert, a veteran fund manager who joined the firm’s board in 2020, added that the venture was at least a year away from a stock market listing, the fintech company’s share sell will help it to rival the market capitalisations of FTSE 100 lenders Lloyds and Barclays.

Gilbert’s latest comments differ from those of Storonsky, who said in 2023 that he did not “see the point” of listing in London due to the United Kingdom’s regulatory environment. Storonsky added that he would likely choose New York’s Nasdaq exchange in the event of an IPO. As per the reports, Revolut’s top brass seems frustrated due to its more than three-year struggle with regulators (mainly Financial Conduct Authority) to secure the UK banking licence.

However, the Financial Conduct Authority (FCA) has now proposed making it easier for firms to use dual-class share structures, letting founders retain control despite selling down much of their stakes in an IPO. Talking about the IPO, Chief Financial Officer Victor Stinga earlier said that Revolut had “set solid foundations” that, in the long term, would “bring our financial processes in line with the standards expected from publicly listed companies”.

The post Business Leader of the Week: Nik Storonsky-led Revolut eyes breakthrough 2024 appeared first on International Finance.

Technology is advancing at a rapid pace, which has caused the banking industry to change and will continue to do so. Banks are using cutting-edge technologies like blockchain, artificial intelligence, and data analytics to improve their services in this era of digital transformation. These developments are simplifying banking procedures while also giving consumers a more tailored and responsive banking experience. With the advent of open banking and decentralised finance (DeFi), which give consumers more control over their financial data and access to a greater range of financial services, the all-pervasive technology layer is continuing to change and empower consumers.

In response to customers’ growing demands for convenient and seamless banking experiences, banks are utilising automation and data-driven insights to offer customised financial services and products. Customers can now access banking services more easily and manage their finances while on the go thanks to the introduction of chatbots, virtual assistants, and mobile banking apps.

At its core, banking is a customer-centric business, and its ability to adapt to technological advancements and customise services will determine how far banks can go in the future.

Generation Alpha

Banking has always been the foundation of trade, from trading in Renaissance Italy to the sophisticated financial instruments of today. Although the methods and procedures are changing, the fundamental goal stays the same. By 2024, banks want to be more than just financial hubs—they want to be comprehensive platforms designed with customer interaction in mind.

The emergence of Generation Alpha, or people born in 2010 and beyond, marks a turning point in consumer behaviour. Over the next few decades, Generation Alpha will have higher expectations of the banking system than previous generations did. Because of their inherent inclination toward technology, banks will be compelled to use it as well and offer a technology-first service that meets their unique financial needs. The expectations of this generation regarding banking services are shaped by their experience with digital technology. They look for platforms where interactions happen, not just transactions; where things happen instantly, seamlessly, sympathetically, and in harmony with their digital lives.

In order to provide real-time, context-aware services to this tech-savvy generation, banks need to leverage data analytics and artificial intelligence (AI). The idea of a fixed credit score, for example, is becoming dated. Rather, dynamic credit assessments at the point of sale will become standard practice, enabling quicker and more precise financial decision-making. As demonstrated by China’s recent social credit law, credit evaluations now consider individuals’ moral principles and social conduct in addition to transactional factors. Credit needs to be placed in context.

The foundation of banking’s future is intelligence, individualisation, and intuitive design. AI systems that can create individualised financial plans with little human supervision are replacing human experts in the field of financial advice. The intention is for banking services to provide customised solutions and anticipate the needs of their clients without requiring their requests.

Embracing technology-driven approach

In this new era, technological infrastructure is essential, and the idea of convergence is crucial. Banks can now provide incredibly dependable and speedier services thanks to 5G technology, bringing in a new era of seamless connectivity. The Internet of Things (IoT), advanced analytics, and high-speed data transmission are coming together to create a revolutionary wave of innovations that will continue to reshape the banking experience. The convergence of these technologies fosters a potent partnership that allows banks to offer personalised, context-aware, real-time financial solutions to their clientele.

The integration of diverse financial services from all industries, including banking, payments, insurance, and investing, all accessible through a single digital ecosystem, is another aspect of this convergence beyond connectivity. Customers can anticipate an unparalleled degree of ease and effectiveness in handling their financial matters as a consequence, paving the way for a banking environment that is more connected and focused on the needs of its clients than in the past.

The growing collaboration between the banking sector and the transportation industry is exemplified by ride-sharing applications that feature automatic payment mechanisms. By 2027, there will be 3,467.00 million users in the shared ride market, and revenue is expected to reach $429.10 billion in 2023. The way we pay for transportation services has been drastically altered by ride-sharing apps. Those days of trying to find the closest ATM before getting a ride are over. Instead, users can connect these apps to their credit cards or bank accounts to enable automated, cashless transactions. The payment process is made easier and security is improved by this integration.

Additionally, the e-commerce industry and banks are collaborating more and more. By providing co-branded credit cards and even investigating the idea of offering Amazon-branded checking accounts, Amazon, for example, has made a foray into the financial services industry. In addition to strengthening Amazon’s relationship with its clientele, these financial products establish the business as a major force in the financial industry. Furthermore, Amazon Pay has expanded its influence in the digital payments market by enabling users to make payments on other e-commerce websites, in addition to Amazon’s own platform.

The distinction between banking and shopping will likely become increasingly hazy as banking services become more integrated into the e-commerce ecosystem. Customers may benefit from more tailored financial advice, adaptable payment options, and improved security measures as blockchain, digital wallets, and artificial intelligence technologies develop. The way that people shop and handle their money is ultimately going to change as a result of this developing partnership.

The food and beverage industry is one of the other sectors to which this also applies. In the past, the partnership has mostly focused on handling payments for delivery services and restaurants. However, biometric authentication techniques, like fingerprint recognition, are increasingly being incorporated into the payment process. The latest collaboration between Mercedes and Mastercard, providing fingerprint authentication for car purchases, is just one instance of the application of this technology. With the help of this development, consumers will soon be able to safely and easily use biometric information, like their fingerprints, to pay for groceries or restaurant meals.

We may expect additional biometric authentication integration across different touchpoints in the food and beverage industry as technology develops. This could include self-checkout options at grocery stores, fingerprint-enabled payment terminals in restaurants, and even biometrically secured food delivery services. These innovations improve security while streamlining the payment process and increasing consumer convenience and efficiency. In the end, banking spreads throughout society.

Fintech collaboration

The partnership between fintechs and banks signifies a significant change in the financial services industry. Financial institutions, frequently encumbered by antiquated systems and conventional methods of operation, require substantial digital enhancements to effectively mesh with the nimble and technologically advanced methodologies of fintech enterprises. This integration forces banks to embrace open APIs for improved interoperability, modernise their IT infrastructure, embrace cloud computing, and improve their data analytics capabilities.

Meanwhile, Fintechs have to conform to the strict security and regulatory frameworks that are characteristic of the banking sector. In addition to quickening the rate of financial services innovation, this convergence forces traditional banking institutions to change their culture in order to promote a more customer-focused and cooperative approach.

Fintech businesses are experts at creating digitally first, user-friendly experiences that appeal to today’s tech-savvy customers. By utilising this expertise, traditional banks are modernising their outdated systems and switching from rigid, paper-based procedures to flexible, digital platforms. This change improves the overall customer experience, lowers expenses, and streamlines operations.

Moreover, banks can access cutting-edge technologies like blockchain, artificial intelligence (AI), and data analytics through fintech partnerships. These technological advancements enable banks to provide more individualised services, instantaneous risk assessment, and effective fraud prevention. Consequently, clients experience expedited loan approval processes, customised investment suggestions, and improved security protocols.

Even though there are many reasons to be optimistic about these partnerships, organisational outlook alignment and cultural synergy are necessary for true success. The recent split between Apple and Goldman Sachs emphasises how crucial it is to align oneself not only in terms of technology but also in terms of values and strategic vision in order to forge enduring and successful relationships.

Meanwhile, the market capitalisation of publicly traded fintechs as of July 2023 was $550 billion, which is two times more than in 2019. Furthermore, as of the same time frame, there were over 272 fintech unicorns, valued at a total of $936 billion, a seven-fold rise from the 39 companies that had a $1 billion or higher valuation five years prior.

A market correction in 2022 caused this rapid growth momentum to slow down. Even now, the effects are still noticeable. There is a general decline in funding and deal activity, fewer initial public offerings (IPOs) and SPAC (special purpose acquisition company) listings, and fewer new unicorn creations. The macro environment is still unpredictable and difficult.

In this case, fintechs are starting a new chapter in their value-creation history. Businesses in the past have been more experimental, taking calculated chances and going for growth at any cost. Fintechs can no longer afford to sprint in the new era due to a difficult funding environment. They have to run more slowly and steadily to stay competitive.

The way forward

The transformation of the banking industry is driven by a move away from conventional profit models and toward ones that prioritise customer outcomes. Banks are gauging their success by the total value they offer to clients, rather than just the difference between deposits and loans. Providing an integrated platform with a seamless convergence of banking, commerce, and lifestyle services is part of this.

These days, banks are supposed to be flexible organisations that can adjust to shifting consumer needs and technological advancements. Future banks will be transparent, data-driven, customer-focused, and flexible. It must be prepared to adapt its offerings instantly, placing the needs of the client first at all times.

The future of banking is being shaped by three layers of models: innovative, flexible, and agile products at the top, ever-evolving, robust technology at the base, and a customer-centric approach at the top. This has the potential to propel the banking industry forward and make banking experiences as instinctive and natural as the environment we live in. Banks are laying the groundwork for a time when banking will be more than just a service—rather, it will be a customised path to financial empowerment and well-being as they adopt this revolutionary model.

The post Future banking: Tech-first solutions appeared first on International Finance.

Although embedded finance is not a new idaea, it has not received much attention until recently. Payments are the foundation of embedded finance since they allow a client to purchase goods or services through a straightforward application without switching to another app.

With the ability to connect banks and FinTech to their platforms through APIs, non-finance companies can embed or incorporate financial products and services, providing customers with financial products and services. It is a significant departure from the idealised FinTech model, and that of traditional banking and embedded finance has the potential to disrupt both.

However, studies show that economists and scholars have ignored the development and benefits of embedded finance. Many contend that the ability of embedded finance to assist their consumers was made possible by open banking. Researchers are now pointing out the success of the programme through integrating APIs for banking data, financial services, and goods into non-financial enterprises’ apps and goods in collaboration with embedded finance partners.

Defining embedded finance

The incorporation of financial services into non-financial businesses is known as embedded finance. An online retailer that sells insurance, a coffee shop software that allows one-click payments, or a credit card that bears the name of a department store are a few examples of integrated finance.

Whether it’s a loan, payment programme, insurance plan, or simple means to make a payment, effective integrated finance solutions meet the consumers where they are and provide them with the financial alternative they require.

Some embedded financial services, such as credit cards for airlines, insurance for auto rentals, and payment plans for expensive goods, have been available for some time. Now that e-commerce businesses are providing financial services directly on their websites rather than sending clients to a bank, embedded finance is gaining traction online. This phenomenon is made possible by third-party ‘banking-as-a-service’ providers that integrate financial services into non-financial enterprises’ user interfaces through the use of APIs.

By 2029, embedded financial services are predicted to earn $384.8 billion in revenue, a roughly 17x increase from the $22.5 billion they did in 2020.

Some potential use cases

The term “embedded finance” is closely associated with terms like “embedded banking” or “banking as a service.” That’s because banks traditionally provide most embedded financial solutions, such as loans and payments. In this instance, we’ll define “embedded banking” to refer to bank accounts and the debit cards that go along with them, leaving other aspects of embedded finance, such as payments and loans, to stand on their own.

Non-financial businesses can provide their customers with a branded checking account to hold money and make payments with embedded banking. For sellers or service providers who use a company’s platform to do business, embedded banking often makes the most sense. It probably provides quicker access to money and benefits only available to platform members.

For instance, the ride-hailing app Lyft offers its drivers an individual checking account with a corresponding debit card. Instead of waiting weeks for a lump-sum payment, drivers can use this account to receive payment right away after each ride. Then, they can use those dollars from their Lyft debit card to make purchases and receive cashback and perks not available elsewhere.

Another illustration is Shopify Balance, which enables store owners to “skip the bank” by receiving payments more quickly and avoiding the requirement to register a separate company bank account. Additionally, it provides a debit card with special benefits for expenditures made to expand a Shopify firm.

Through a convenient user experience and unique rewards, embedded banking is intended to increase platform loyalty in both cases. It’s less probable that a Lyft driver will simultaneously drive for Uber if they have a Lyft checking account that expedites payment.

Another use is in integrated payments. The difficulty in pulling out a credit card and entering the information can make customers decide not to make a digital purchase. By linking and preserving a payment method for later usage at the touch of a button, embedded payments simplify this process. For instance, the Starbucks app keeps card details for one-click payments, and users get points for doing so.

Credit cards are just one type of embedded payment. While saving retailers money on fees, embedded payments can also provide customers with the opportunity to pay directly from their bank accounts.

Customers can receive discounts and prises by using the embedded bank account payments capability in the mobile app SmartPay Prises, which is designed for petrol stations and convenience stores. Because ACH fees are sometimes lower than credit card fees, using ACH for payments saves merchants money. Discounts and prises foster brand loyalty and encourage repeat business.

Then there are personalised credit cards. Branded credit cards are older than fintech because consumers may still buy them at their preferred department stores. Fintech, on the other hand, has boosted the use cases where it makes sense and enhanced businesses’ capacity to issue branded credit cards.

The B2B market is one place where branded payment cards have an influence. Companies have long allowed their employees to use their credit cards for work-related spending, or they’ve given them a company credit card from their bank. Both approaches have several drawbacks, such as having employees pay for business expenses out of their accounts or providing them with a corporate card that they may easily use to buy non-business products.

Nowadays, firms can more easily obtain their business credit cards and provide them to all employees thanks to platforms like Ramp and Divvy. Compared to traditional banks, these platforms often speed up and simplify the sign-up process, provide more access to company credit, and let businesses produce as many branded business credit cards as they want, with both virtual and physical cards being offered.

Any company that provides embedded banking should also be able to provide branded debit cards to customers, staff, vendors, and even independent contractors. A prime example is the Lyft debit card, which was stated in section one and is connected to the integrated bank accounts that Lyft only provides to its drivers.
Finally, there is embedded lending and investing. A sort of embedded finance called embedded lending gives customers access to better loan options at the point of sale. Before embedded finance, consumers had to borrow money from a financial institution or use their credit card, which might have exorbitant interest rates. Embedded lending improves consumer access to credit and aids in business growth.

One of the most prominent types of embedded financing encountered by internet customers is “Buy Now, Pay Later” (BNPL). The offer to spread the payment out over time arises throughout the online checkout process when customers are thinking about their available cash. These products often offer interest-free monthly or weekly payment instalments over a defined period. In addition to Klarna, Affirm, and Afterpay are well-known businesses that provide buy now, pay later options.
Any size of business may easily give their consumers new payment options thanks to embedded lending. Customers who frequently choose to spread out payments over time would benefit greatly from this, as will businesses looking to boost sales and customer engagement.

Embedded investing enables non-investment service providers to provide investment solutions that improve customer satisfaction and open up new revenue streams for businesses. Consumers had to open a new account with a traditional company like Fidelity or Goldman Sachs to invest in the past.

Consumers may now purchase cryptocurrencies from other services they currently use, including Venmo and Paypal, thanks to the growth of embedded investment.
Although this is a more recent application of integrated financial services, it has great potential as users learn to anticipate more services from the websites they visit. In the future, this might involve letting users purchase shares of stock through their checking account app or enabling them to discuss equities in a chat room before doing so.

The difficulties ahead

Embedding financial services can make it unclear who is ultimately accountable for regulatory violations, which is a significant barrier for embedded finance. Regulators must decide who is ultimately responsible for customer data privacy violations.

Second, the use of embedded financial services contributes to the complexity of business interactions. For instance, problems arise when a loan defaults because the bank is unaware of the borrower when a non-finance company extends credit through its platform. The recovery of the [bad] debt requires the redeployment of valuable resources, particularly when the loan is integrated into the platform of a non-financial organisation and does not have [direct] contact with the end user.

Customers’ complicated economic interactions with goods or services from two different organisations present another difficulty. Customers become confused as a result since they do not know which company is in charge of each component of the buying process.

Who does the customer complain to if they need to? It results in regulatory issues with data security.

Furthermore, a traditional bank might not want to support a third party’s API in the financial ecosystem, which could result in embedded finance costing banks market share. This problem is made worse by a lack of collaboration, which slows the development of embedded finance. Even though embedded finance requires collaborations with API providers, financial institutions, end users, and regulators, financial institutions may have good reason to reject relationships with non-finance enterprises and API providers.

Additionally, utilising embedded financial services can necessitate relaxing anti-money laundering and know-your-customer (KYC) rules, opening up companies to payment fraud.

The excitement surrounding embedded finance is expanding and displacing the accepted thinking about institutions. The advantages are significant and include increased customer satisfaction, better customer experience, more revenue streams, a deeper understanding of consumer behaviour, and increased competitiveness.
Regulatory compliance, integration difficulties, data privacy and security concerns, building customer trust, and managing heightened business complexity are some of the difficulties to be overcome.

Despite these obstacles, companies that adopt integrated finance will benefit greatly from the changing fintech market. Embedded finance will be essential in determining how financial services are developed in the future as the trend develops.

The post The game changer called embedded finance appeared first on International Finance.

Ascend Money recently received an award as ‘Fastest Growing Digital Payment Solution Provider’ at the International Finance Award 2022.

Ascend Money has always been a purpose-driven company. Its goal is to make it possible for everyone to have access to cutting-edge financial services that improve lives. The primary motivation is to enhance the accessibility, affordability, and impact of financial services in the region.

The company currently has operations in six Southeast Asian countries which include Thailand, Cambodia, Myanmar, Vietnam, the Philippines, and Indonesia. Through the network of 88,000 agents spread throughout the area and the TrueMoney Wallet application, it services 50 million users and clients. In addition to digital payments, Ascend Money offers digital loans, digital savings, digital investment, and digital insurance.

Although financial inclusion has advanced significantly in Southeast Asia’s economy in recent years, millions of people in the region are still underbanked or unbanked today. They have only a few options because they cannot access banking services. In order to help individuals improve people’s lives, Ascend Money wants to grow into the biggest digital financial platform connecting them to cutting-edge payment and financial solutions. The company is facilitating improvements by transforming how people and businesses pay, enjoy, live, and grow their lives.

Services Ascend Money Provides

The company provides various services when it comes to digital payments, some are as follows:

TrueMoney Wallet: TrueMoney Wallet is a superapp for digital payments and financial services that makes it simple and convenient to access different financial services. Users of TrueMoney Wallet can purchase insurance, apply for BNPL and loans, open saving and investment accounts, and more while earning more TrueMoney Rewards. These activities are in addition to topping up mobile phone and internet packages, shopping online and in physical stores, paying bills, transferring money, and other activities.

TrueMoney Agent Network: Millions of Southeast Asians still have restricted access to financial services because they don’t have bank accounts or live in distant places. TrueMoney agents give them the ability to transact in a more convenient and safe manner by providing one-stop financial services including cell top-ups, bill payments, and remittances at local shops. Most TrueMoney representatives are small-town business owners and entrepreneurs who are struggling to make ends meet. In addition to increasing their income, they have made a significant contribution to increasing the community’s financial inclusion, accessibility, and simplicity.

TrueMoney Transfer: TrueMoney Transfer, a hassle-free international remittance service, enables migrant employees to safely and affordably remit money to their relatives back home. The service is now offered for cross-border money transfers between Thailand and Cambodia and Myanmar.

Pay Beyond Border

In order to provide a simple and safe method of making cashless payments abroad without incurring additional costs, TrueMoney Thailand recently expanded its cross-border payment service. Popular tourist locations like Japan, South Korea, Singapore, Malaysia, France, Italy, Germany, the United Kingdom, and more are covered by the service. The service allows Thai travelers to dine, travel, and shop more easily, using secure cashless payments. The payments are made possible using TrueMoney at convenience stores, retail stores, and department stores in Thailand.

In doing so, travelers can avoid finding currency exchanges and using ATMs to get cash. In the end, they can access the programme to view the currency rates prior to transactions. The currency rate simply depends on the daily foreign exchange rates and is not subject to daily variations. Users can pay at checkouts by just scanning the QR code, or they can open a QR code on the TrueMoney Wallet app and have the cashier staff scan it to finish the transaction.

TrueMoney: Thailand’s First Mobile Fintech’s Risk Intelligence

In addition to service expansion, TrueMoney is the first fintech business in Thailand to use industry-leading Mobile Risk Intelligence. The cutting-edge solution, which makes use of device and network intelligence, is the outcome of TrueMoney’s technical cooperation with SHIELD, the world leader in risk intelligence. It uses artificial intelligence (AI) to continuously safeguard the TrueMoney platform. In order to maintain user confidence and enable the TrueMoney platform’s continuing growth in Southeast Asia, the technology secures it from beginning to finish.

The post Ascend Money: Southeast Asia’s most sought-after unicorn appeared first on International Finance.

During an interaction with International Finance, Wael Ziada, Managing Partner of the company said, “I agree with many that the Feds keeps getting it wrong, but the world monetary powerhouse cannot afford to do nothing when inflation is soaring and unfortunately it doesn’t have many tools when it comes to curbing inflation. Aside from the erroneous magnitude and timing of the rate hikes, the Feds has chosen to ignore that the financial markets have changed over the past decades since the Volcker’s playbook, and that’s a big mistake, reusing it now can be dangerous”.

Wael Ziada also shared his views about the current situation of the global financial markets, monetary policies and much more.

He said, “The Feds’ tightening is dragging major economies into a currency war, which keep testing the limits of the global financial markets and exposing its major vulnerabilities. Moreover, the Ukraine war and COVID are two very significant events and dealing with their repercussions will require a degree of coordination between the fiscal and monetary policies that few countries are capable of. This is the result of years of no real policy practice with the near-death of one or both policies at most governments. What happened few months ago in the British bond market (Gilts) and the sterling (GBP) is a case in a point. It was another Lehman moment that cost the chancellor his job.”

What’s Next
Talking about inflation, Wael Ziada stated that inflation will not respond as expected to the upcoming rate hikes and this heavy monetary artillery used by central banks will bring the roof down soon, and something big will pop.

“At an average of 4-5% global policy rates, recession will be induced, inflation will cool down (but won’t fade), sovereign defaults will occur (Brazil, Turkey, and South Africa top the list) and issuers credit rating will deteriorate raising costs of borrowing further and shutting down global bond markets for many emerging economies which will further accelerate this race to the bottom. Policy makers will have then added two other problems to their inflation problem: unemployment and recession,” he said.

According to Wael Ziada the impact of the monetary tightening won’t appear on corporate earnings before next quarter, and analysts then will downgrade their forecasts.

A recent report by Fitch expected some 20-25% cut in 2023 earnings for the S&P500 under the 4-5% policy rate scenarios.

“This means that the adjusted 2023 PE of the index is actually close to 23.0x. This is very high compared to the market’s PE during the previous five monetary-induced recessions when the PE averaged 12.0x at the bottom. It’s fair to argue that the world is a different place and that the earning drivers of the index are not the same as two decades ago and that the monetary steroids the world has been ingesting is likely to make the growth curve steeper than previous cycles…etc and hence imply higher PE at the down cycle,” he added.

Wael Ziada concluded by saying that he agrees to all of that, but it would still leave the markets with at least another 20-30% to fall.

The post Monetary steroids to make growth curve steeper: Wael Ziada appeared first on International Finance.

Apart from this, the bank has also decided to shut retail banking operations in Tanzania and Ivory Coast. The bank wants to fully concentrate on corporate and commercial banking.

According to the company, this step has been taken to improve profits by narrowing its focus to faster-growing markets situated in the region.

On the other hand, the Standard Chartered Bank is also trying to make its presence felt in some of the fastest-growing economies. The bank has recently opened its branch in Saudi Arabia and at the same time has obtained preliminary approval for banking in Egypt.

The CEO of the bank Bill Winters said in a statement, “We remain excited by a number of opportunities we see in Africa and the Middle East region, as illustrated by our new markets, but remain disciplined in our assessment of where we can deliver significantly improved shareholder returns.”

The post Standard Chartered shuts operations in many Middle East, African countries appeared first on International Finance.

The regulatory authority – The Australian Securities and Investments Commission (ASIC) – in a new information sheet has now said that in order to give such tips, individuals need to obtain a valid license.

This regulation comes after a survey conducted by the ASIC found that a third of the 18-21 age group followed financial influencers. The survey also found that 64% of youngsters in the country also changed their spending habits under the influence of these trendsetters. BBC quoted ASIC commissioner Cathie Armour saying that not only do the influencers need to follow existing regulations so that investors don’t unwitting suffer losses, but also to safeguard them from punishment.

According to the ASIC, the maximum punishment can be as high as up to five years of imprisonment.

According to this information sheet, budgeting tips do not come under regulation. It also gives explicit warnings regarding making outrageous and misleading statements about financial products.

The information sheet numbered INFO 269 said that the rules will also be applicable for registered financial services companies who employ influencers for propagating their products.

It warned that providing financial product advice or arranging their followers to deal in a financial product without a valid AFS license may be deemed illegal. Further projecting unbalanced opinions or inaccurate information in their content will also amount to breaking the law.

The information notes detailed hypothetical multiple case studies that can be deemed illegal.

It suggests seeking legal advice if individuals are unsure of their obligations or have any ambiguity if their content is in violation of laws or not.

The post You may land in jail for giving financial ‘advice’ appeared first on International Finance.

Founded in 2018 by Cynthia Wandia and David Hwan, Kwara has built a digital banking platform that is primarily designed to help the unbanked and underbanked people to help build wealth in a frictionless way. The company also offers a management platform that helps drive efficacy and automation at the cooperative staff level.

Kwara also connects the savings cooperatives with banks, payment gateways and other third parties by utilising an open API. All these features come in one software-as-a-service package and it lets cooperative clients pay for their usage and get a single end-to-end solution.

Kwara CEO Cynthia Wandia told the media, “We are building a solution for people – an estimated one billion – who do not currently have access to personalised banking services. This is the result of a gap in banking-grade technology and the lack of neobank-like experiences for the end clients. We’ve been thrilled to see the excitement around the Kwara brand among credit unions and their members, which is fast becoming synonymous with a superior user experience and the future of banking. Thanks to our investors, we will now be able to offer an end-client experience that is 100 times better than what they previously had access to.”

The post Kenyan digital banking startup Kwara raises $4mn to build a neobank appeared first on International Finance.

The company said in a statement, “There may be a delay before all card programmes are fully operational, so some customers could find themselves unable to transact immediately but we anticipate this lasting no longer than 24 hours. We apologise for the inconvenience to our valued customers that the temporary suspension caused.”

The Financial Conduct Authority (FCA) has lifted restrictions allowing Wirecard to resume its banking operations in the country. The authority told the media, “The primary objective of these requirements was to protect the electronic money funds of consumers in safeguarded account. It also had the effect of preventing consumers from withdrawing and making payments with those funds.”

Last week, the company filed for insolvency following a disclosure of missing funds. After that, the authority had forced the company to stall financial operations in the country. The lifting of restrictions will benefit all its consumers who had temporarily lost access to their funds.

Experts believe the situation with Wirecard will have a negative impact on people, leading them to lose faith in financial services companies. Last week, the company said in a statement, “There may be a delay before all card programmes are fully operational, so some customers could find themselves unable to transact immediately but we anticipate this lasting no longer than 24 hours.”

The post Wirecard granted permission to resume banking operations in the UK appeared first on International Finance.