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Cryptocurrency exchange Coinbase made waves this week with the launch of its new open-source Onchain Payment Protocol — aimed at improving the company’s Commerce product for merchants.

The San Francisco-based exchange announced the new protocol on Thursday, describing it as a way to enable “instant settlement, low fees, and broad asset support” for merchants using its services. Coinbase Commerce was first introduced in 2018 as a platform for merchants to accept cryptocurrency payments. Since then, the company says thousands of merchants globally have processed billions of dollars in on-chain payments.

However, the volatility of cryptocurrencies and complicated user experiences have remained barriers to broader adoption. Coinbase’s new open-source protocol looks to solve these problems by automatically converting customers’ cryptocurrency payments into the popular stablecoin USDC, thus eliminating exposure to volatility. The protocol currently supports Ethereum, Polygon, and the Coinbase-incubated Base — with plans to expand to more networks soon.

Merchants may benefit from dramatically lower payment processing fees by accepting cryptocurrency directly rather than traditional credit card payments. The open-source nature of the protocol also opens the door for other platforms to integrate and build on top of Coinbase’s infrastructure.

The launch comes as Coinbase pushes forward with developing its own Layer 2 network, Base, to capture market share in the hot DeFi space.

Photo by David McBee.

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Like most entrepreneurs, You might require truly captivating your audience and looking for growth-hacking app features to maintain their interest. If that’s the case, this blog will help you; just read and take notes.

As a tech enthusiast and digital solutions provider, I understand it’s crucial and essential in your app growth process. So, without further ado, let’s find out what features we should incorporate that address their needs.

What Should You Know About Growth Hacking App Features that Fascinate Users

Creating an app that really fascinates users is like a much-needed toolkit  — you need the right tools and expertise to use them. Here’s a playful take on what you should know:

Solving Real Problems

Think of your app as the superhero cape for users, swooping in to rescue them from everyday hassles. Address their pain points, and you’ll be their hero.

Seamless User Experience

Imagine your app as a smooth dance partner, not one with two left feet. Users want it to feel natural and easy. Keep it simple, or they might exit the dance floor.

Visual Appeal

First impressions matter. Picture your app as a fashion model on a runway. Engaging visuals and aesthetics are your app’s runway attire—captivate users from the very start.

Adding Value

Your app should be the digital toolbox, offering solutions to their daily challenges. It should create a sense that your app makes their lives better.

Simplicity Factor

Sometimes, less might feel overwhelming and not attractive at all. Therefore, your focus should be to make difficult functions easier to use by simplifying them, like a technical documentation made into a comic book.

Stay Current on Growth Hacking Features

It’s always been worth considering to keep up with industry shifts and user preferences to ensure your app remains relevant and fascinating, just like a thrilling surf ride.

10 Such Intriguing Growth Hacking App Features

There is an implicit rivalry in the exciting world of app development to create apps that are more than merely useful; they must be utterly compelling and much more helpful then of competitors. Imagine finding an app that makes your life easier and makes you question how you ever got by without it.

So, without wasting our time, we’re about to uncover ten exceptionally captivating elements that can elevate an ordinary app to the extraordinary. These game-changers, from problem-solving tools to innovative surprises, are the keys to turning users into dedicated fans.

Stay tied with me as I will tell you what sets these apps apart from the crowd. We will examine the much sought-after “10 Such Intriguing  growth-hacking app features.” Here, you’ll find everything you need to know about these fascinating features that make apps truly exceptional.

User Onboarding Optimization

User onboarding is like a warm welcome to your app. Keep it simple, introduce features gradually, and offer interactive tutorials. Ensure navigation is clear, and provide positive feedback for exploration.

Push Notifications that Convert

Think of push notifications as friendly reminders. Personalize them, time them well, and make them clear and actionable. Let users control the frequency and experiment with A/B testing to see what works best.

In-App Referral Programs

In-app referral programs are like golden tickets. Offer irresistible rewards, keep the process simple, and be transparent about the benefits. Encourage users to refer friends and grow your app’s community.

Community Connections

Imagine your app as a gathering place. Create user profiles, forums, and events. You can also focus on encouraging the creation of user-generated content to promote a feeling of connection and belonging in your app.

User Feedback and Iteration

Listening to user feedback is like having a heart-to-heart conversation and fits as a growth hack in your app. It’s a valuable source of insight for improving your app. Offer various channels for feedback, making users feel heard. Respond promptly, acknowledging their input just as you nod in agreement during a chat. Embrace iterative updates as a way to continuously enhance your app based on user suggestions, like fine-tuning a beloved recipe to perfection.

Cross-Platform Compatibility

Think of your app as a versatile tool in a user’s toolbox. Cross-platform compatibility ensures your app is accessible to all, regardless of their device. Make transitions between platforms smooth, just like seamlessly switching between conversations. Design your app to adapt to different screens, offering users a comfortable experience, whether they’re on a phone or tablet.

Creative Content and Visuals

Visual appeal is like the icing on the cake. This can be the perfect growth hacking app feature. Consider creating eye-catching visuals that tell stories or convey information, much like captivating illustrations in a book. Craft informative yet conversational content as if you’re chatting with a friend. Inject bursts of creativity into your visuals and content to keep users engaged, like adding unexpected twists to a familiar tale.

Nifty Night Mode

Night mode is like dimming the lights for a cozy evening. It creates a comfortable ambiance for users in low-light conditions. Ensure it reduces brightness and adjusts colors for readability, like setting the mood lighting just right. Allow users to switch to night mode easily, as simple as flipping a light switch. It’s all about providing them a comfortable experience, day or night.

AI Insights Guru

Imagine having your own AI insights guru ready to offer wisdom and guidance. AI is no longer just strange; it has become a valuable tool for everyone. It can analyze data, spot trends, and offer insights to drive smarter decisions. Think of it as having a trusted advisor at your side, providing valuable insights without the need for complex jargon.

Voice-Activated Magic

Voice-activated technology is like a touch of magic and can be a crucial growth hacking app feature in our everyday lives. It allows us to interact with devices seamlessly, just like casting a spell. Whether asking for directions, setting reminders, or playing music, voice-activated technology makes tasks feel effortless. It’s like having a genie ready to fulfill your wishes with just a spoken word.

Wrapping Up! Everything You Need to Know About Growth Hacking App Features

In the realm of technology and innovation, we’ve explored the fascinating landscape of app development, optimization, and user engagement. From the art of user onboarding to the science of push notifications, from the warmth of community connections to the adaptability of cross-platform compatibility, we’ve uncovered the human touch that makes apps truly exceptional.

As I conclude this blog, know that the key to creating remarkable apps lies in understanding and empathizing with your users. It’s about crafting experiences that feel like a friendly conversation, not a user manual. It’s about building a community where users can connect and belong, just like a vibrant gathering of friends.

So, as you venture into the world of mobile app development (invictusstartechnology dot ae services) or seek to enhance your existing app, keep these insights in mind. Remember to keep things personal, welcome feedback with open arms, and keep pushing for ongoing improvements.

This way, you won’t just catch users’ interest — but you’ll make a meaningful mark in their digital journey. Here’s to crafting apps that truly connect with users’ hearts and minds. Cheers to a brighter, more engaging app future.

Inner Image and Featured Image Credit: Provided by the Author; Thank you!

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Nearly 30,000 fintech startups are operating worldwide — and many more are on the horizon. From investment apps and payment processors to budgeting tools and blockchain technology, there are so many different ways to step into the fintech space. If you want to stand out from your competition, though truly, you need to make sure your marketing campaigns are on point.

If you’ve been struggling with online marketing, this guide can help. Listed below are five reasons you might not see results from your fintech marketing strategy.

1. You Try to Cater to Everyone

When asked who their target audience is, many entrepreneurs (especially new ones) make the mistake of saying, “Everyone!”

Maybe you can see how everyone could benefit from your fintech company’s app or tool. However, if you try to cater to everyone with your marketing content, you’ll end up not catering to anyone at all.

Being too general with your ads and content makes it hard for people to connect with your brand. As a result, they’re less likely to engage with you since they can’t tell if what you’re selling is actually for them.

What to Do Instead

Be specific about whom you’re trying to reach with your content.

Are you catering to small business owners who need an affordable and convenient payment processing software? Do you want to reach young kids who are learning to budget for the first time?

When you know your target audience, it becomes easier to make decisions about fonts, text, colours, images, and other elements of your marketing materials.

2. Your Message Is Unclear

Even if they know who makes up their target audience, some fintech marketers still make the mistake of using the wrong messaging.

Maybe they sell an app for kids and teens, but their marketing content is full of jargon that only industry experts would understand. That’s not going to work very well when it comes to winning over their ideal customers, is it?

What to Do Instead

Remember your target audience. Ask yourself if you’re genuinely writing to them whenever you write a blog post, social media caption, eBook, or any other type of content.

Some people find it helpful to create avatars, which are highly specific descriptions of members of their target audience. For example, maybe you’re marketing your payment processing app to Sarah, a 35-year-old woman who just opened her own hair salon and needs a convenient and affordable way to accept credit card payments from her customers.

When you’re writing a blog, think about whether or not the content is valuable to Sarah. Would it be interesting and helpful? Would she understand what you’re trying to say and why it’s important?

3. You Aren’t Sharing Your Expertise

Just because you can’t use a lot of technical jargon doesn’t mean you can’t share your expertise and talk about what you know. In fact, you should showcase your expertise and let people know that you’re a credible source of information.

Suppose you aren’t publishing content that provides value and educates your audience or answers their questions. In that case, you’re not going to get a lot of traffic to your website or people interested in your product or service.

Think about it. If you were looking for help with fantasy romance book writing or interior design, you would want to learn from someone who is obviously an expert in their field. Keep in mind, too, that genuine experts know how to explain what they do in simple, plain language.

What to Do Instead

Regularly ask yourself, “How is this content helping my audience?” or “What problem does this content solve?” When you make it a priority to support your target customers and provide value with everything you publish, you’ll see that they’re more likely to engage with your content and your brand as a whole.

4. You Don’t Monitor Your Metrics

You know how important numbers are — you work in the fintech space, after all. Are you paying attention to the numbers related to your marketing campaigns, though?

If you don’t consistently pay attention to key metrics, you’ll have difficulty knowing what aspects of your campaigns are working and which ones need more attention. Instead, you’ll just throw things at the wall and hope they stick.

What to Do Instead

Before you launch a campaign, decide what your goals are, how you’re going to measure progress, and how soon you want to see results (at the end of the month, end of the quarter, etc.).

For example, if you launch a campaign to build brand awareness, you might measure website views or social media shares.

Check-in regularly and keep track of how your campaign is doing, too. Pay attention to the blogs that are getting the most views, the posts that are shared most often, the posts that don’t perform well, etc.

5. You’re Trying to Do Everything Yourself

You’re a busy professional, whether you’re running a small startup or a major fintech corporation. In either case, you likely don’t have time to create and execute a robust content strategy that helps you achieve your goals — at least not without neglecting other important parts of your business.

What to Do Instead

If you’re trying to do everything yourself, you’re probably spreading yourself too thin. You’re probably also not seeing as much progress as you’d like.

Instead of doing all your marketing alone, consider outsourcing to a third party. Partnering with a content marketing agency can give you more time to focus on other aspects of your job (the ones that you actually want to dedicate your time to).

Ideally, you’ll choose an agency that specializes in fintech content marketing. They will have a more in-depth understanding of what your business does and can offer advice tailored to you and your unique needs.

Time to Fine-Tune Your Fintech Marketing

Fintech marketing can be tricky, but it’s definitely not impossible.

Start by evaluating your current marketing strategy and ask yourself (and answer honestly!) if you’re making any of these common fintech marketing mistakes. If you are, don’t panic. That just means it’s time to make some changes!

Follow the tips and tricks shared above to level up your marketing strategy and see better results.

Featured Image Credit: Provided by the Author; Thank you!

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Back in November 2022, the crypto exchange FTX suffered a staggering $477 million hack amid its chaotic collapse. Just days before the trial of FTX founder and CEO Sam Bankman-Fried, the previously dormant hacked funds became active. Elliptic analysts have delved deep into the incident, tracing the complex blockchain trail left by the hackers and implicating Russia.

Elliptic’s insight into the hack

According to Elliptic’s report, the hackers skillfully concealed their activities, shuffling the stolen assets through a series of complex transactions. They utilized decentralized exchanges and privacy wallets to complicate the tracing process. However, Elliptic successfully traced the funds, observing that the hackers converted a significant portion into Ether and then distributed it to various addresses. Elliptic’s on-chain investigation also reveals potential links to Russian actors.

A possible FTX hack-Russia connection

Elliptic’s findings suggest a potential Russian nexus in the FTX hack. The methods used by the hackers and the subsequent movement of the stolen funds bear similarities to techniques commonly associated with Russian cybercriminals.

Specifically, the research firm’s analysis identified that the laundering techniques used post-theft closely resemble methods traditionally associated with Russian cybercriminals. The way they moved funds, their preference for specific privacy wallets, and their choice of decentralized exchanges all mirror tactics Russian hackers have used in past incidents.

The speed and efficiency with which the funds were moved and laundered also hint at a well-organized and experienced group. Though there may be a handful of such actors, known Russian cybercrime outfits fit the bill.

Elliptic’s investigation not only highlights the importance of advanced blockchain analytics in tackling such challenges but also raises concerns about the geopolitical implications of major cybercrimes. As the digital currency realm grows, understanding the origins and motivations behind such attacks becomes pivotal for both security measures and international diplomatic relations.

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The demand for fintech applications is increasing by the day. Fintech development includes apps, software, or systems for Investment, Banking, Finance, Insurance, etc.

Right from mobile gaming applications to P2P sharing apps, there is a surge in app development. While there are many dedicated wallet app developers and mobile banking app development companies offering development services, it’s essential to focus on companies that offer you Fintech software and app development.

These companies have exclusive expertise in developing end-to-end Finance apps. And with new technology and trends, you can expect the best finance app development from them.

We have curated a list of the Top 10 Fintech software development companies you can consider in 2023.

1. eSparkBiz

eSparkBiz is a trusted name in software and solutions. It is listed in the Top 10 Fintech software development companies that offer the best services for Fintech software and apps for your specific needs.

Moreover, it has offered custom software solutions to 1000+ clients in 20+ countries that optimize business performance. You can flexibly outsource your software development needs through various engagement models, and the company will help it transform into practical market solutions.

The best part about the company is that it offers seamless & agile digital transformation using modern techs like Blockchain, AI/ML, AR & VR, IoT, Cloud, & DevOps system that works best for your business. And provides comprehensive solutions like – MVP development, CRM software, Full stack, eCommerce, SaaS, Data Analytics, UI/UX designs, Testing, and Fintech software development.

Serving budding Startups to large-scale enterprises, their robust and tailor-made software products minimize your costs and increase the business reach. Their experienced team of 200+ talents can offer high-end solutions that can drive tangible business growth.

2. SoftwareMind

Software Mind has over two decades of experience supporting scale-ups, unicorns and enterprise-level game changers worldwide, delivering teams that smoothly integrate into cultures, act with respect, and cooperate through flexible models. With engineers in Europe and Latin America, they ensure needed support 24/7.

Financial institutions, payment firms and fintech companies to Software Mind for comprehensive product development that covers creativity, design, engineering, integration, deployment and ongoing maintenance. Their cross-functional teams establish effective software delivery processes that speed up time to market, create new revenue streams and ensure maximum data security.

Software Mind engineering teams combine high ownership with leading technologies, including cloud, AI and data science, to accelerate your digital transformation and boost software delivery, always embracing transparency and striving to understand client goals.

3. Altamira

The company helps build customized IT services for both startups and big enterprises. The main aim of the company is to power businesses via digital solutions. Moreover, the company has delivered 700-plus solutions all across the globe building long-term business relations with each client. It allows for delivering unique IT solutions as per the client’s needs. The company uses cutting-edge technology to adopt new packages and solutions.

Altamira uses cutting-edge technology to offer different services like web and software development, UX designing, and mobile apps, including Fintech. The main focus of the company is Healthcare, Finance, and Real Estate.

4. Miquido

With ten years of business experience, Miquido offers full-stack development with cutting-edge technology to transform businesses into exceptional digital products. It has delivered more than 150 business solutions across the globe, catering to big brands.

The company offers web and software solutions, mobile app development, Big Data Analytics, UX designs, product designs, and strategy based on  Fintech.

The main focus of the company is Finance, Healthcare, Retail, Art, Entertainment, and business services. It has created an exceptional niche in development, making it the best choice for startups and large enterprises.

5. EffectiveSoft

EffectiveSoft is a global software development company that offers customized client-oriented solutions that work with the latest technology providing tangible business results. The main services of the company include – web and software development, UX designing, wearable app development, Blockchain, Cloud computing, and Fintech development. And serves areas like  Finance, Banking, Healthcare, Information Technology, Business Services, Real Estate, and Transportation.

EffectiveSoft incorporates and customizes different trading platforms. It integrates with services like automated trading, mobile trading applications, cryptocurrency, and currency exchange software.

6. STX Next

STX Next is a Poland-based company that offers result-driven exceptional codes. The team of 250 developers works on complex projects to provide the best results on software development, mobile development, Blockchain, UX design, eCommerce, and Fintech software development.

It mainly focuses on Finance and Payments, Advertising, Marketing, Transportation, Logistics, and other business services. STX Next has more than 17 years of experience providing full-stack web development to clients globally. Their expertise gives flexible & reliable solutions in a short time that delights clients.

7. UppLabs

UppLabs is one of the top 10 Fintech software development companies with ten years of experience. It has more than 1000 successful deployments with out-of-the-box solutions. The company has more than 50 successful setups of dedicated deployment teams.

The company offers a range of services like – mobile app development, Fintech software development, web software development, Cloud computing, Big data analytics, and Blockchain. Moreover, it focuses on legal and compliance issues, giving it an edge over other companies.

8. Qulix Systems

Qulix systems is a global software development company that offers various software solutions for small and big enterprises. The company is located in Poland but has centers worldwide. It caters to different business needs and offers customized business solutions.

They are known for web and software development, UX designing, mobile app development, Cloud computing, and of course, fintech software development.

It also offers consultancy solutions for various business needs. It’s a great deal for all startups and companies that need experience in the development field.

9. Capital Numbers

Capital Numbers is a certified software and global solutions provider with a team of full-time experts. It features in the Top 10 fintech software development companies for providing scalable and high-performing digital solutions focusing on the client’s needs. It offers different development solutions like – Cloud development, IoT, AI, Big data solutions, Predictive Analytics, and Fintech development.

The company ensures that the work gets done with professionalism and affordability. Moreover, it provides full-stack development solutions inducing digital capabilities for improved customer experience. You can expect superior quality products as the company works on quality assurance and testing.

10. InnovationM

InnovationM is the best software and mobile app company based in India. The company transforms the ideas into a forward-thinking business by building end-to-end solutions and applications. It caters to different needs like applications, software, and websites.

InnovationM offers different services like Digital Transformation, Web design and development, Fintech software development, AWS services, UX design, Big Data Analytics, and mobile app development built on modern architecture and design patterns.

Moreover, it helps to mobilize your company and solves real business problems. And helps customers of all sizes to build and migrate mobile applications on AWS for Fintech solutions.

11. Uptech

Uptech is one of the top 10 Fintech software development companies that helps develop an idea into a full-fledged product. It works on creativity, expertise, and a product development approach.

And offers intuitive, user-friendly IT services, including mobile app development, web app development, UX design, and Fintech software development. Moreover, it works in the early stages of development for result-driven output. The best part is it helps in the project development cycle from idea to execution.

Two More Companies You Can Consider:

Appventurez

Appventurez is a leading mobile app development company that provides tech-oriented solutions to clients. It works on enhancing the overall product lifecycle.

The company has 9+ years of experience in web and mobile development. And has partnered with different clients to deliver various solutions like mobile app development, web software development, Fintech software development, and UX designing.

The company has majorly served in  Finance, Transportation, Logistics, Hospitality, and Retail sectors. The best part about the company is that it provides services like business analytics and strategy with quality assurance and complete project management.

Sombra

Sombra is a global software development company providing consultancy services, product design, and customized software solutions.

It offers UX design, software development, Fintech, and eCommerce development.

Sombra has developed over 300 Finance-based mobile and web applications, so the company has great expertise in Fintech development. It helps businesses expand their Finance and Investment portfolio with modernized software solutions.

To Conclude

With this list, you can rest assured that you will find a good Fintech development company for your business needs. To make the process easier, list down the things you are looking for in a company and evaluate the features.

Once you are sure of the features, you can hire a company. Moreover, you can check the best matches based on your requirements.

The budget also plays a significant role in choosing a Fintech company. Though, most companies provide cost-effective services that fit your budget.

Discuss your business objectives with the company and kick-start your Fintech development journey on the right note.

Featured Image Credit: Provided by the Author; Thank you!

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Indian fintech startup Slice is merging with North East Small Finance Bank after receiving approval from the Reserve Bank of India (RBI).

According to the Oct. 3 TechCrunch report, this is a rare feat that has eluded many tech companies and financial startups for decades. Slice previously offered credit card-like services and, at its peak, issued over 400,000 cards in a month, more than any other fintech or bank. The merger will allow the combined entity to better serve their shared mission of reaching more unbanked consumers.

The merger follows Slice — which currently has a yearly revenue of about $100 million — recently acquiring a 10% stake in North East Small Finance Bank. It should enable the new entity to expand its product offerings and accelerate innovation. The RBI implemented guidelines last year that impacted Slice, competitors like Uni and neobanks like Jupiter and Fi. The changes challenged how firms issued cards.

Slice founder and CEO Rajan Bajaj said they have worked with the bank for 12 months, allowing the board, investors and management to align on a shared vision. He commented:

“We’re grateful to the RBI for entrusting us with this immense responsibility. […] At Slice, our unyielding devotion to customers and robust risk management have set us apart. This approach allows us to serve a wider audience, including those often overlooked, while also building a deep emotional connection with our customers.”

Slice is backed by investors like Tiger Global, Insight Partners, Blume Ventures and EMVC. It was valued at $1.5 billion in its last funding round. Its first investment in the bank valued it at $68 million. At least two investors are already planning to invest about $125 million combined in the merged entity.

North East Small Finance Bank was incorporated in 2016 as a subsidiary of RGVN (NE) Microfinance. It serves northeast India and is backed by investors like Pi Ventures, Bajaj Group, and SIDBI Venture Capital. India is undergoing a pivotal banking evolution, increasing tie-ups between banks and fintechs. Larger banks like HDFC, ICICI, and Axis are also embracing this idea.

VCs are focused on investing in banks. Accel and Quona backed Shivalik Small Finance Bank last year. Obtaining a banking license or merging with a bank is still rare in India, as oversight has increased. The RBI largely rejected universal bank applications in recent years, including one by Flipkart’s Sachin Bansal.

In 2021, RBI issued a small finance bank license to Centrum Financial and BharatPe to address a capital-starved situation. In contrast, the capital adequacy ratio of the Slice-North East bank is much higher than RBI’s 15% mandate.

Featured Image Credit: iStock Photos; Pexels; Thank you!

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Coinbase Singapore obtained a Major Payment Institution license from the Monetary Authority of Singapore.

In a blog post published today, the crypto exchange said the development — which follows its initial In Principle Approval in the country — “amplifies our commitment to the Singapore market, enabling us to expand our provision of Digitial Payment Token services to both individuals and institutions in Singapore.”

Coinbase also identified Singapore as a “vital market” for the exchange, citing Singaporeans’ statistical interest in crypto and the country’s progressive economic strategies and regulatory approach.

“This license enshrines our commitment to the market and marks the end of our licensing journey,” Hassan Ahmed, the country director of Coinbase Singapore, said in an interview, adding:

“Our experience in Singapore in some ways contrasts what’s going on in the U.S. By providing this level of regulatory clarity and by providing clear rules that the industry has to play by, that’s really important for us as we’re thinking about our international strategy.”

Coinbase previously received virtual asset service provider registrations in Spain, Italy, Ireland and the Netherlands.

The exchange’s share price is up more than two percent today — as of publication time.

Coinbase committed to Singapore’s web3 ecosystem

Coinbase also said it is committed to Singapore’s broader web3 ecosystem, including training and hiring initiatives at its Singapore tech hub.

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The world of finance has taken quite a spin in recent years, hasn’t it? With the rise of financial technology, we’ve (almost) forgotten the hell of contacting call centers, waiting for months to complete an international transaction, and spending Friday afternoons in the bank queue.

But let’s not forget: the fintech domain is a fiercely competitive battlefield. Just one swift scroll through the finance category of any App/Play Store, and the user’s eyes will diverge before sticking with just one service. 

So, how do you cut through this hyper-competitive noise and make your app the next flagship of fintech? Maybe, the answer is programmatic.

This article will discuss the current state of fintech mobile apps, the peculiarities of working with programmatic, and whether incorporating it into your marketing strategy may accelerate the fintech app growth in the long run.

The Unstoppable Growth of Fintech Advertising

The infinity of offers in fintech isn’t just some metaphor to spice up this text. The extension of the industry is obvious even to those not involved in it. Why don’t we talk numbers to make things clearer?

With about 26300 startups globally, by 2024, the global fintech market will reach at least $201.9 billion. That’s a 100% growth rate compared to 2017. 

But wait, there’s more! Fintech services are not just making a splash; they’re making waves. 96% of consumers are aware of fintech services globally. 64% of them have been using at least one of the fintech platforms. 50 million people use Apple Pay regularly in the US, and 23 million use its counterpart – Google Pay.  

In 2021, worldwide downloads of fintech apps reached 6.1 billion, with Venmo and Cash App being the leaders and generating $850 million and $12.3 billion, respectively. JPMorgan Chase has 50 million active mobile users, and Bank of America – 35.5 million. 

4 Great Obstacles to Successful Fintech Advertising

Fintech goes hard, and there are no reasons for it to stop growing. However, with at least 30,000 fintech startups by the end of 2022, how many will actually turn out successful? 

The sheer size and variety of fintech create a standard list of challenges hanging on the wall of the marketing department and causing explicit levels of cortisol in the room. Some of these difficulties include:

• Customer Acquisition

In this particular survey, fintech marketers state their biggest challenge is acquiring high-quality leads and customers. It doesn’t take a genius to understand why, so we won’t speculate much.

The highly competitive sphere with numerous companies offering similar services, widespread financial illiteracy among users, and brand trust issues caused by the industry’s novelty – add all of this up, and you’ll have a hard-to-chew sandwich of customer acquisition.

• Budgeting

Customer acquisition is also expensive. Large banks usually spend up to $2000 to get a customer. With fintech app businesses, the price is a bit lower, but it still tops $800 if the cost of teasers and bonus points is included. The ever-rising expenses lead to ever-lowering budgets for the marketing teams.

Yeah, that’s quite dull since marketing is the bread and butter in B2B and B2C, but the fintech industry moves very fast, and if something doesn’t bring rapid progress, it gets cut. Don’t forget about the difficulties of finding niche-specific traffic sources; you’ll have a clear vision of why keeping CPA low is a primary goal of all media buying campaigns.

• Regulations & Compliance

The realm of advertising is often unfriendly to fintech, and its laws and regulations are where it shows most. Crypto-related advertising and ICOs face limitations by major advertising platforms like Google, Facebook, and Twitter. Those restrictions were implemented a while ago to prevent fraud, but even credible crypto businesses are regular subjects to these policies.

Fintech apps that provide loans or credit services may encounter similar fraud-scam regulations in ads. Fintech apps that offer banking/investment solutions might be required to include disclaimers and disclosure in their advertising materials. Fintech apps that handle sensitive information… you should’ve guessed already.

• Retention

Fintech applications have about 22.7% user retention on day 1, decreasing to 5.8% on day 30. And it’s not something a marketer could close their eyes to, and this isn’t a Flashlight app.

Sending funds, paying debts, or managing finances generate money; thus, low retention = reduced income. Remember the credibility issues we’ve mentioned before? Returning users are the best brand advocates in the long run, and their feedback is paramount to keeping up with the industry pace. 

How Programmatic May Benefit Fintech Apps [Case Studies]

According to a recent study, the banking sphere puts extreme stress on its employees, and if fintech marketers struggle with all the challenges above, imagine what life’s like in the other sectors.

So, could programmatic media buying make life easier for the fintech marketing department and bring tangible results? Spoiler: yes, case studies show it does, and here’s a brief summary of why:

Programmatic Cost-Effectiveness 

Automated bidding and real-time optimization allow advertisers to reach their target audience cost-effectively.  Some DSPs even allow the use of bidding multipliers to set automatic bids on media, thus minimizing expensive conversions.

For instance, Fintonic has achieved its CPA goal using its proprietary DSP. With the help of creative A/B testing and audience targeting, the company has reached its campaign performance goal, along with making its advertising more transparent and wide.

Programmatic Boosts User Engagement

Paysend’s goal was to acquire new customers and have users who’d send money via their app. Paysend needed high retention and engagement rates, so they used Mapendo’s DSP.

During the first weeks of the campaign app install rate increased by 200%. Along with exceeding Paysend’s KPI growth and reg-to-money transfer goals, the collaboration brought 10% cheaper eCPI in North America and drove up the registration rate by 176% within the first month.

Regulation Compliance

As you’ve seen, there are a lot of troubles regarding compliance with regulations in fintech. Advanced programmatic platforms can provide tools to ensure compliance, like setting custom targeting parameters, ad content filters, and ad placement preferences.

Moreover, DSPs might come with a variety of SSPs to choose from. For example, Epom white-label DSP’s client in crypto struggled with scaling an active user base due to limitations from significant ad platforms. 

With the help of Epom WL DSP, they found and established custom end-points with vertical-specific traffic sources, thus boosting the app install rate by 150% while meeting the expected CPA goal.

What to Expect from Fintech Advertising?

In the end, nothing’s perfect, and even programmatic might have drawbacks. The sphere has its part of unreliable solutions and fraud, plus the complexity of programmatic will require a deep understanding of what’s going on.

Still, automated media buying is one of the best shots for fintech advertising on the current playground. As much as we don’t want to upset our colleagues, the third-party data is fading away, and limitations keep getting more tense. Fintech app developers will probably have even more advertising-related troubles in the future.

The good news is that programmatic doesn’t stagnate as well. New formats like DOOH and IoT could present new ways to hyper-target users and gather more enhanced data. Stay vigilant. The changes are coming.

Featured Image Credit: Photo by alphatradezone; Pexels; Thank you!

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“The rise of Millennial and Gen Z powerhouses and how they are shaping the shopping landscape forcing companies to adapt or risk being left behind,” writes Donal McGuinness, CEO of Prommt.

Fast forward to 2029, and 72 percent of the global workforce will be dominated by Millennials and Gen Z, compared to 52 percent in 2019. With Millennials currently wielding an impressive $2.5 trillion USD in spending power and Gen Z representing an estimated $143 billion USD in annual purchasing power, the combined influence of these generations is transforming traditional business and payments models, forcing companies to adapt or risk being left behind.

As the torchbearers of modern commerce, Millennials and Gen Z are reshaping how we shop. They effortlessly navigate between physical, digital, and virtual worlds and expect technology to keep pace by delivering seamless, integrated, and nearly invisible payment experiences across all touch points. This cohort craves convenience, personalization, and a frictionless checkout process that mirrors their fast-paced lives. 51 percent of Millennials and 48 percent of Gen Z will abandon a purchase if their favorite payment method isn’t available, making it crucial for businesses to offer a combination of payment methods options.

From embedded payment links to open banking, the key to winning over Millennials and Gen Z lies in aligning your payment solution with their expectations. Here are five ways to effectively capture this dynamic duo’s demands for flexible payments and connected shopping experiences.

Understand the Millennial and Gen Z Mindset

As digital-first generations, this cohort demands a uniform and seamless brand experience with personalization and comfort extending to their remote checkout. They routinely transact online, are familiar with 3D Secure and SCA steps (Strong Customer Authentication), and typically use a mobile banking app. 84 percent of Millennials and 78 percent of Gen Z have connected money-related apps to their financial accounts, and 79 percent have tried a new payment method in the past year. They want autonomy and flexibility when it comes to making payments – the freedom to make payments anytime, anywhere, and using any device.

Facilitate Flexibility and Speed

With the growth in social and live commerce, every touch point is an opportunity to turn a want into a purchase in just a few taps. 67 percent of Gen Z believe that automated payments will reduce time at checkout and enhance their overall shopping experience. Embedding pay-by-link capabilities directly into social media apps, providing the option to pay by card or open banking transfer in multiple currencies, and enabling automatic recurring payments for memberships and events are all ways in which businesses can unlock a world of convenience for this customer cohort, leading to increased satisfaction and brand loyalty.

Retailers can maximize payment success by offering a range of payment options through an advanced payment request platform that supports both card and open banking transfer and with features available to set chase paths, reminders, recurring payments, or send group payments, which is useful for credit control.

Leverage Payments Innovation for an Omnichannel Shopping Experience

Millennials and Gen Z value a connected shopping experience seamlessly integrating physical stores, online platforms, and social media. This is even more vital for businesses that cannot easily transact online because the product or service needs to be more bespoke or custom to lend itself to self-selection. Such businesses require a solution that converts risky, time-consuming over-the-phone transactions into secure, convenient online payments.

Innovation in remote payments can help merge the gap between digital and in-store interactions, allowing retailers to provide a unified, frictionless shopping journey that upholds brand values. 78 percent of Millennials and Gen Z view a brand’s commitment to innovation and new technologies as a decisive reason for purchasing an item, and 81 percent of customers expect a seamless and cohesive shopping experience across all channels.

Millennials and Gen Z are hybrid shoppers who expect to simultaneously engage with brands through multiple channels. Merchants can facilitate smooth omnichannel retail experiences by implementing a payments solution that integrates seamlessly with their existing ERP/POS and payment gateways, enabling them to offer online, personal consultations and follow-up with 3D Secure, merchant-branded payment requests sent through SMS, email, WhatsApp, or web chat. Delighted customers who receive seamless, personalized offerings are keen to recommend the brand to friends and family and return to the brand in the future.

Prioritize Trust and Security

Sharing card details online and other sensitive banking information can make modern consumers uncomfortable and slow down the purchase process, which may have a negative impact on conversion rates. Merchants require a highly intuitive, mobile-friendly payment solution that gives customers control over their shopping experience.

The ability to authorize and authenticate payments in a single tap from the safety and comfort of their mobile banking app, without sharing a sensitive card and bank details, provides a native payment journey that invokes trust. Implementing robust security measures like encryption and tokenization ensures customer data remains secure throughout the payment process. Communicating these measures further helps build trust and reassures them that their sensitive information is protected.

Leverage Data and Analytics

Effectively harnessing data to gain valuable insights is a competitive advantage. By adopting a payments solution that offers live tracking, reporting, and comprehensive analytics, businesses can better understand purchase patterns and preferred payment methods, allowing them to make data-driven decisions and build lasting relationships.

Retailers have an opportunity to turn conversations about cart abandonments upside down and talk about payment success. It is possible to have payment success rates in excess of 90 percent when the above factors are taken into account. By quickly responding to consumer demands and paying attention to their needs, brands can thrive with the help of innovative and secure payment solutions.

About Prommt

Founded in 2017, Prommt is a success platform revolutionizing remote payments for enterprises and their clients. Its innovative solutions enable fast, frictionless card and open banking payments. Prommt is an enterprise-grade solution built for teams, supporting multiple locations and out in the field, reporting and alerting capabilities.

Based in Dublin, Ireland, Prommt is used by businesses across Europe and the USA today. For further information please visit https://www.prommt.com/

Featured Image Credit: Provided by the Author; John Schnobrich; Unsplash; Thank you!

The post Capture Millennial and Gen Z Flexible Payments and Connected Shopping Experiences appeared first on ReadWrite.

AngelList, a prominent organization in the startup ecosystem, is making a strategic move into the private equity space with the recent acquisition of fintech startup Nova. This acquisition marks AngelList’s foray into a new market and demonstrates its commitment to expanding its suite of products and services for venture firms, investors, startups, and fund managers.

Founded in 2010, AngelList initially started as a mailing list for high-quality angel investors. However, it quickly evolved into one of the most powerful fundraising channels for early-stage startups. Today, AngelList positions itself as an organization that creates innovative products and services to accelerate innovation in the startup economy. With a focus on building the infrastructure that powers the startup ecosystem, AngelList has continuously adapted its model to meet the changing needs of the industry.

AngelList’s expansion into private equity may seem like a departure from its original venture focus. However, CEO Avlok Kohli sees it as a logical and natural progression for the company. He believes that as startups mature, their capital providers expand beyond venture funds into private equity and eventually the public markets. By broadening its scope to include private equity, AngelList aims to support startups throughout their entire lifecycle.

To kickstart its private equity efforts, AngelList acquired Nova, a Y Combinator-backed fintech startup specializing in investor management software for institutional private funds. Nova’s expertise and established customer base make it a valuable addition to AngelList’s portfolio of products. The acquisition aligns with AngelList’s goal of providing a unified software stack that streamlines operations for venture firms and private equity funds.

As part of the acquisition, Nova will continue to operate as a business unit within AngelList. Its investor management products will be integrated into AngelList’s suite of offerings, including the newly launched AngelList Transact. This integration will enhance AngelList’s presence in the private markets industry and accelerate its growth in serving institutional funds. Nova’s digital subscriptions, data room, and investor portal will be rebranded as AngelList products, further expanding the company’s range of services.

AngelList has experienced significant growth in recent years. In 2022, assets supported for investors on AngelList increased by 50% to $15 billion. The number of startups funded on the platform also grew by 21% to 8,300. These positive metrics indicate an upward trend in AngelList’s revenue, although specific figures were not disclosed. The company generates revenue through various sources, including subscription and SaaS fees, as well as carried interest.

AngelList’s expansion into private equity is just one example of its ongoing efforts to provide comprehensive solutions for the startup ecosystem. The company has introduced several innovative products and services, such as SPVs, rolling funds, and Stack. SPVs are investment vehicles that allow interested investors to raise money through quarterly subscriptions. Rolling funds enable continuous fundraising through a subscription-based model. Stack, on the other hand, offers a suite of tools to help founders start, operate, and maintain ownership over their companies.

AngelList’s decision to acquire Nova instead of creating its own private equity-focused product reflects a common strategy in the industry. Acquiring an established company with a proven track record and existing customer base provides a faster route to market. Additionally, Nova’s investor management software brings added complexity and expertise to AngelList’s offerings. While AngelList already had its own Treasury product, Nova’s solution proved to be more robust and aligned with the company’s goals.

The acquisition of Nova and AngelList’s expansion into private equity position the company for further growth and market consolidation. As the startup ecosystem continues to evolve, AngelList aims to be at the forefront of innovation and serve as a trusted partner for venture firms and private equity funds. While no immediate plans for additional acquisitions have been announced, AngelList remains open to exploring opportunities that align with its long-term vision.

AngelList’s acquisition of Nova marks a significant milestone in the company’s journey to become a comprehensive platform for the startup economy. By expanding into private equity, AngelList aims to provide startups with the necessary infrastructure and support throughout their entire lifecycle. The integration of Nova’s investor management software into AngelList’s suite of products will enhance the company’s presence in the private markets industry and fuel its growth in serving institutional funds. With a focus on innovation and market consolidation, AngelList is poised to shape the future of the startup ecosystem.

First reported on TechCrunch

Frequently Asked Questions

1. What is AngelList, and what is its role in the startup ecosystem?

AngelList is a prominent organization in the startup ecosystem that initially started as a mailing list for high-quality angel investors in 2010. Over the years, it has evolved into one of the most powerful fundraising channels for early-stage startups. Today, AngelList focuses on building the infrastructure that powers the startup economy and provides innovative products and services for venture firms, investors, startups, and fund managers.

2. Why is AngelList expanding into the private equity space?

AngelList’s expansion into private equity is a strategic move aimed at supporting startups throughout their entire lifecycle. As startups mature, their capital providers often expand beyond venture funds into private equity and eventually the public markets. By broadening its scope to include private equity, AngelList aims to offer comprehensive solutions and support for startups as they progress through different stages of growth.

3. What recent acquisition did AngelList make to enter the private equity market?

AngelList recently acquired Nova, a fintech startup specializing in investor management software for institutional private funds. Nova’s expertise and established customer base make it a valuable addition to AngelList’s portfolio of products. Nova will continue to operate as a business unit within AngelList, and its products will be integrated into AngelList’s suite of offerings, further expanding the company’s range of services.

4. How has AngelList performed in recent years, and how does it generate revenue?

AngelList has experienced significant growth, with assets supported for investors on the platform increasing by 50% to $15 billion in 2022. The number of startups funded on the platform also grew by 21% to 8,300. While specific revenue figures were not disclosed, AngelList generates revenue through various sources, including subscription and SaaS fees, as well as carried interest.

5. What other products and services has AngelList introduced in the startup ecosystem?

In addition to its private equity expansion, AngelList has introduced several innovative products and services, such as SPVs (Special Purpose Vehicles), rolling funds, and Stack. SPVs are investment vehicles that allow interested investors to raise money through quarterly subscriptions, while rolling funds enable continuous fundraising through a subscription-based model. Stack offers a suite of tools to help founders start, operate, and maintain ownership over their companies.

6. Why did AngelList choose to acquire Nova instead of developing its own private equity-focused product?

Acquiring Nova, an established fintech startup with a proven track record and existing customer base, provided AngelList with a faster route to enter the private equity market. Nova’s investor management software brought added complexity and expertise to AngelList’s offerings, complementing the company’s long-term vision.

7. Does AngelList plan to make more acquisitions in the future?

While no immediate plans for additional acquisitions have been announced, AngelList remains open to exploring opportunities that align with its long-term vision. The company aims to continue its growth and market consolidation as it shapes the future of the startup ecosystem.

Featured Image Credit: Unsplash

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Swiggy, a India-based food delivery giant, has made a strategic move to boost customer engagement and retention by launching its own credit card. This new service is a collaboration between Swiggy and HDFC Bank, India’s largest private bank, and is intended to provide customers with a number of advantages. The credit card’s partnership with Mastercard means that cardholders can earn cash back not only on purchases made through Swiggy, but also through a wide variety of other partnered platforms, such as those operated by Amazon, Adidas, Zara, Flipkart, Nike, Uber, and BookmyShow. Swiggy’s move into the credit card space is similar to that of other non-fintech Indian startups like Zomato, which have done so in an effort to diversify revenue streams, leverage customer data, and stimulate spending.

Swiggy’s credit card, issued by Mastercard, is optimized to give cardholders the best possible experience. Every food order placed on Swiggy will help customers save money thanks to a 10% cashback bonus. In addition, the card allows its users to earn rewards on routine purchases from a variety of well-known brands by providing a 5% cashback across a variety of partnered platforms. This all-inclusive rewards program was designed to do two things: increase customer loyalty and encourage repeat business.

The Swiggy credit card comes with a free three-month trial of Swiggy One, a service that waives delivery fees. This perk improves the overall Swiggy experience for customers and encourages them to use the service more often. Customers can use their cashback on anything they buy, not just food, increasing their savings. The credit card’s added value comes from the fact that cardholders can take advantage of a variety of Mastercard perks.

Swiggy is following a growing trend among non-fintech Indian startups by expanding into the credit card market. These businesses are launching their own credit cards in an effort to increase growth, diversify their revenue streams, and gain access to valuable customer information. Offering personalized perks that deepen customer loyalty and encourage increased spending, the credit cards act as a gateway to India’s growing middle-class market. The fact that Swiggy’s main rival, Zomato, has also previously launched similar credit card offerings demonstrates the significance of this strategy in the food delivery industry.

Swiggy’s Chief Financial Officer, Rahul Bothra, reaffirmed the firm’s dedication to gratifying the changing wants and needs of today’s consumers. He elaborated on why the Swiggy credit card was created: to offer customers valuable rewards, discounts, and cash-back incentives.

In conclusion, with the introduction of the Swiggy credit card, the Indian food delivery giant has taken a major step toward strengthening relationships with its patrons. Providing its customers with a comprehensive rewards program that adds value to their everyday purchases is a top priority for Swiggy, so the company offers cashback on Swiggy spends and a wide range of partnered platforms. A growing number of non-fintech Indian startups are looking to credit card offerings to diversify revenue streams and leverage customer data. Swiggy has established itself as a frontrunner in the food delivery market by prioritizing its customers’ time and money.

First reported on TechCrunch

Frequently Asked Questions

Q1: What is Swiggy’s strategic move to boost customer engagement?

A: Swiggy, the India-based food delivery giant, has strategically launched its own credit card in collaboration with HDFC Bank and Mastercard to enhance customer engagement and retention. This move aims to further strengthen Swiggy’s position in the highly competitive food delivery market by providing its customers with exclusive benefits and rewards.

Q2: What advantages does the Swiggy credit card offer?

A: The Swiggy credit card offers an array of advantages to its cardholders. Customers can enjoy a 10% cashback on every food order placed through Swiggy, making their dining experiences more cost-effective. Additionally, the credit card provides a 5% cashback on purchases made on various partnered platforms, including popular brands like Amazon, Adidas, Zara, Uber, and more. This comprehensive rewards program aims to incentivize customers and foster long-term loyalty.

Q3: How does the credit card encourage customer loyalty and repeat business?

A: The Swiggy credit card’s rewards program is designed to encourage customer loyalty and repeat business. By offering enticing cashback incentives on both Swiggy orders and purchases from partnered platforms, customers are motivated to use the card for their everyday transactions, leading to increased engagement with the brand. This personalized approach to rewards helps create a stronger bond between Swiggy and its customers, enhancing their overall experience with the service.

Q4: What additional benefits come with the Swiggy credit card?

A: Apart from the cashback benefits, the Swiggy credit card comes with a valuable additional perk – a complimentary three-month trial of Swiggy One. This premium subscription service waives delivery fees, providing added convenience and cost savings for cardholders. Furthermore, the cardholders can utilize their earned cashback rewards on any purchase, not limited to food orders, which further enhances the flexibility and value of the credit card.

Q5: Why are non-fintech Indian startups, including Swiggy, entering the credit card market?

A: The entry of non-fintech Indian startups, like Swiggy, into the credit card market is a strategic move aimed at diversifying their revenue streams and tapping into the vast potential of India’s growing middle-class market. By launching their own credit cards, these startups can not only strengthen their brand presence but also gain valuable customer insights through credit card usage data. Moreover, offering personalized financial products like credit cards allows these startups to deepen their customer relationships and provide added value beyond their core services.

Q6: How does Swiggy’s credit card strategy compare to its main rival, Zomato?

A: Swiggy’s move into the credit card space reflects a growing trend among non-fintech Indian startups, including Zomato, to explore additional revenue streams and gain a competitive edge in the fiercely competitive food delivery industry. Both companies recognize the significance of enhancing customer engagement through personalized financial products. By leveraging credit card offerings, Swiggy and Zomato aim to provide customers with more incentives and rewards to enhance brand loyalty, ultimately improving their overall market position.

Q7: What was the motivation behind creating the Swiggy credit card?

A: Swiggy’s Chief Financial Officer, Rahul Bothra, reaffirms the company’s dedication to meeting the evolving wants and needs of today’s consumers. The Swiggy credit card was thoughtfully designed to offer customers valuable rewards, discounts, and cashback incentives. By collaborating with HDFC Bank and Mastercard, Swiggy seeks to provide an optimized credit card experience that adds value to the everyday lives of its customers, fostering long-term loyalty and repeat business.

Q8: How does Swiggy prioritize its customers’ experience with the credit card?

A: Swiggy’s credit card offering is optimized to provide the best possible experience for cardholders. By providing a 10% cashback on Swiggy food orders and a 5% cashback on purchases from partnered platforms, the credit card incentivizes customers to use the card frequently, creating a seamless and rewarding dining experience. Additionally, the complimentary three-month trial of Swiggy One, along with access to various Mastercard perks, adds significant value to the cardholder’s overall experience.

Q9: What impact does the Swiggy credit card have on the food delivery giant’s relationship with its customers?

A: The introduction of the Swiggy credit card represents a major step for Swiggy in strengthening its relationships with its patrons. By offering a comprehensive rewards program that adds value to everyday purchases, Swiggy demonstrates its commitment to providing a top-notch customer experience. The credit card fosters a sense of loyalty and trust among customers, who can now enjoy enhanced benefits while indulging in their favorite cuisines through the Swiggy platform.

Featured Image Credit: Unsplash

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The world of fintech has experienced significant growth and transformation in recent years, and Latin America (LatAm) has emerged as a key player in this rapidly evolving industry. Despite a global funding slump in the second quarter of 2023, the region has managed to maintain a steady upward trajectory, attracting international investor interest and witnessing a surge in venture funding. In this article, we will delve into the state of fintech in Latin America, exploring the region’s growing influence, notable startups, and the factors contributing to its success.

Latin America has become a hotbed for fintech innovation, with the region witnessing a substantial increase in venture funding in recent years. According to The Association for Private Capital Investment in Latin America (LAVCA), VC investors deployed $7.8 billion across a record 1,114 deals in Latin America in 2022, making it one of the most attractive destinations for fintech investment. The fintech sector, in particular, accounted for 29% of investments, highlighting its dominance in the region.

The surge in global investor interest in Latin American startups has played a vital role in driving the growth of the fintech industry in the region. Investors worldwide have recognized Latin America’s immense potential and opportunities, leading to a substantial influx of capital. This increased interest has not only boosted the profile of Latin American fintech startups but has also contributed to the overall growth and development of the ecosystem.

According to CB Insights’ State of Fintech Q2 report, fintech in Latin America and the Caribbean drew $500 million in the second quarter of 2023, marking a remarkable 150% increase compared to the previous quarter. While the deal count remained relatively stable, the region’s early-stage deal share reached a five-year high of 81%, indicating a strong focus on nurturing and supporting emerging fintech startups.

During the second quarter of 2023, several notable deals occurred in the Latin American fintech landscape. One of the most significant investments went to Cayman Islands-based DeFi platform Kross Wallet, which raised a staggering $100 million in a seed round. This substantial funding round reflects the growing interest in decentralized finance and its potential for transforming the financial landscape in Latin America.

Other notable deals included a $60 million raise for Mexico-based spend management startup Clara and a $26 million investment in Brazilian payments infrastructure company Liquido. These deals highlight the diversity and innovation within the Latin American fintech ecosystem, showcasing the region’s ability to attract significant investments across various industry segments.

While the fintech sector in Latin America has witnessed impressive growth, the second quarter of 2023 was not kind to payments startups. Funding to these companies plummeted by 75% during the quarter, reaching a six-year funding low of $2 billion. Despite this setback, there were a few bright spots, with early-stage funding for payments companies reaching a five-year high.

One standout company in the payments space is Tipalti, an accounts payable automation platform for mid-market companies. Tipalti secured the top equity deal for the quarter, raising $150 million in a growth round. This investment adds to the company’s impressive list of funding achievements, including a $270 million Series F and a $150 million Series E. Tipalti’s success showcases the immense potential for disruptive payment solutions in Latin America and highlights the growing interest in financial automation and efficiency.

In the second quarter of 2023, all five IPO exits within the fintech industry came from companies based outside of the United States, with the majority originating from Asia. This global trend underscores the increasing importance of international fintech markets and their opportunities for investors and startups alike. According to CB Insights, the Latin American fintech sector experienced a 20% drop in M&A activity, with 142 exits reported during the quarter.

Despite the challenges faced by payment startups and fluctuations in funding, the future of fintech in Latin America remains promising. The region’s ability to attract global investor interest and its growing ecosystem of innovative startups position Latin America as a key player in the global fintech landscape.

To ensure continued growth and success, Latin American governments and regulatory bodies must provide a supportive environment for fintech innovation. By implementing favorable policies and frameworks, governments can foster collaboration between traditional financial institutions and fintech startups, leading to mutually beneficial partnerships that drive innovation and financial inclusion.

Latin America has already demonstrated its appetite for technology and innovation, with the fintech sector at the forefront of this transformation. As technology advances, Latin American startups can leverage emerging technologies such as blockchain, artificial intelligence, and open banking to revolutionize the region’s financial services landscape. By staying at the forefront of technological advancements, Latin America can continue to attract investment and drive innovation in the fintech industry.

One of the key drivers of fintech growth in Latin America is the focus on financial inclusion and empowerment. By leveraging technology and innovative business models, fintech startups in the region are bringing financial services to underserved populations, providing access to banking, payments, and investment opportunities. This focus on inclusivity and empowerment has the potential to transform the lives of millions of people in Latin America, bridging the gap between traditional financial services and the unbanked or underbanked.

In summary, Latin America has emerged as a force to be reckoned with in the fintech industry, attracting global investor interest and witnessing a surge in venture funding. Despite the challenges faced by payment startups, the region continues to foster innovation and drive technology adoption in the financial services sector. With a supportive regulatory environment, a focus on technology and innovation, and a commitment to financial inclusion, Latin America is poised to shape the future of fintech globally. As the fintech ecosystem in Latin America continues to evolve, it will be exciting to see how the region’s startups and investors collaborate to drive the next wave of innovation and transformation in the industry.

First reported on TechCrunch

Frequently Asked Questions

Q. How has Latin America emerged as a key player in the fintech industry?

Latin America has experienced significant growth in the fintech sector, witnessing a substantial increase in venture funding and attracting global investor interest. The region’s fintech industry accounted for 29% of investments, making it one of the most attractive destinations for fintech investment.

Q. What is the state of venture funding for fintech in Latin America?

In 2022, VC investors deployed $7.8 billion across 1,114 deals in Latin America. Additionally, fintech in Latin America and the Caribbean raised $500 million in the second quarter of 2023, marking a remarkable 150% increase compared to the previous quarter.

Q. How are global investors contributing to the growth of fintech in Latin America?

Global investors have recognized Latin America’s immense potential and opportunities, leading to a substantial influx of capital into the region’s fintech startups. This increased interest has not only boosted the profile of Latin American fintech startups but also contributed to the overall growth and development of the ecosystem.

Q. What notable deals have taken place in Latin America’s fintech landscape?

During the second quarter of 2023, notable deals included a $100 million seed round for DeFi platform Kross Wallet, a $60 million raise for Mexico-based spend management startup Clara, and a $26 million investment in Brazilian payments infrastructure company Liquido.

Q. What challenges have payments startups faced in Latin America?

In the second quarter of 2023, funding for payments startups in Latin America plummeted by 75%, reaching a six-year funding low of $2 billion. Despite this setback, there were positive indicators, with early-stage funding for payments companies reaching a five-year high.

Q. How is Latin America driving financial inclusion through fintech?

Fintech startups in Latin America are leveraging technology and innovative business models to bring financial services to underserved populations, bridging the gap between traditional financial services and the unbanked or underbanked. This focus on inclusivity and empowerment can potentially transform the lives of millions of people in the region.

Q. What role do Latin American governments play in fostering fintech innovation?

To ensure continued growth and success, it is crucial for Latin American governments and regulatory bodies to provide a supportive environment for fintech innovation. Implementing favorable policies and frameworks can foster collaboration between traditional financial institutions and fintech startups, driving innovation and financial inclusion.

Q. How can technology advancements further boost fintech growth in Latin America?

As technology advances, Latin American startups can leverage emerging technologies such as blockchain, artificial intelligence, and open banking to revolutionize the region’s financial services landscape, attracting more investment and driving innovation in the fintech industry.

Q. What is the outlook for fintech in Latin America?

Despite challenges faced by payments startups, Latin America’s fintech sector remains promising due to its ability to attract global investor interest and focus on financial inclusion. The region’s growing ecosystem of innovative startups positions Latin America as a key player in the global fintech landscape.

Featured Image Credit: Clay Banks; Unsplash; Thank you!

The post Fintech Funding in LatAm & Caribbean Soars: Payments Take a Dive appeared first on ReadWrite.

First reported on TechCrunch

Frequently Asked Questions

Q. What is Collectly, and how does it aim to revolutionize payment collection in the healthcare industry?

Collectly is a Pasadena-based company founded by Levon Brutyan and Max Mizotin. It aims to revolutionize the payment collection process for medical providers, especially for solo or small practices lacking resources for electronic billing. By seamlessly integrating with electronic health records and practice management software, Collectly enhances patient billing operations and automates various aspects of the payment collection workflow.

Q. Why is payment collection a persistent challenge for medical providers in the healthcare industry?

Medical providers face challenges in payment collection due to confusing healthcare bills and the potential for lost or overlooked paper bills. In 2021, medical providers collected only about 55% of the amount they were owed, a significant decrease from the previous year’s 76% collection rate. Patient responsibility continues to grow annually, putting financial strain on hospitals and medical practices. With a substantial portion of patient payments remaining uncollected, healthcare organizations face further financial challenges, especially those operating on narrow profit margins.

Q. How has Collectly’s technology improved payment collection for medical providers?

Leveraging technology, Collectly has enabled medical group partners using its platform to achieve a remarkable 75% increase in patient collections on average. The “days sales outstanding” metric, measuring the average days to collect payments, has been reduced from 60-90 days to an impressive 12 days. These improvements not only contribute to enhanced financial outcomes but also result in a remarkable 93% patient satisfaction score, crucial for patient retention.

Q. When did Collectly begin its journey, and how has it evolved since then?

Collectly’s journey began in 2017 as a digital debt collection startup. However, after participating in the prestigious Y Combinator program and raising $1.9 million in funding, the company pivoted its focus towards automating and streamlining billing operations as a patient financial engagement company. Since then, Collectly has grown significantly, engaging over 300,000 patients daily and consistently increasing its revenue year over year.

Q. What recent funding milestone has Collectly achieved, and how will it use the capital?

Recognizing its impressive growth and profitability, Collectly recently closed a $29 million Series A funding round, led by Sapphire Ventures, with participation from prominent investors. This brings the total capital raised by Collectly to an impressive $34.1 million. The company plans to utilize the newly acquired capital to enhance its technology and product offerings, ensuring that medical providers can continue to benefit from cutting-edge solutions. Additionally, Collectly aims to double its team’s size by the end of the year, enabling the company to scale its operations and provide even greater support to its growing customer base.

Q. How does Collectly plan to address the evolving needs of healthcare providers and patients?

Collectly aims to roll out new products focused on pre-service modules and in-person payments, catering to the evolving needs of healthcare providers and patients. By staying at the forefront of emerging technologies, such as ChatGPT, Collectly seeks to harness the power of artificial intelligence to enhance the patient experience and promptly resolve billing-related queries.

Q. What implications does Collectly’s success have for the healthcare technology sector?

Collectly’s impressive results and recent funding success solidify its position as a key player in the healthcare technology sector. As the company continues to grow and expand, it showcases the importance of innovative solutions for payment collection in the healthcare industry. Other healthcare technology companies may look to Collectly as a model for success and inspiration in developing similar transformative solutions.

Q. How can Collectly’s solutions benefit medical providers and patients in the long term?

Collectly’s streamlined payment collection solutions can significantly benefit medical providers by increasing collections, reducing collection times, and improving financial outcomes. Patients, on the other hand, can enjoy a more seamless billing process, leading to increased satisfaction and retention. By empowering healthcare organizations with technology-driven payment collection tools, Collectly contributes to improved financial success and enhanced patient experiences in the long term.

Q. How can healthcare providers avail Collectly’s services and integrate their systems?

Healthcare providers interested in leveraging Collectly’s payment collection solutions can explore partnership opportunities and reach out to the company to discuss integration options with their existing electronic health records and practice management software. By seamlessly integrating Collectly’s technology, medical providers can benefit from streamlined billing operations and improved financial outcomes.

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The New York-based startup Cognaize has raised $18 million to develop its unstructured data processing platform for use in financial artificial intelligence (AI) applications. The company takes a hybrid approach, utilizing both deep learning technology that has been trained on financial models and human input to hone the final product. Cognaize will use the funds to increase staff size, launch new research and development efforts, and create additional products. Argonautic Ventures served as the round’s lead investor, joined by Metaplanet and other backers.

Although AI has had far-reaching effects in the banking industry, the majority of current efforts are focused on structured data. Cognaize’s platform is designed to take advantage of the tidal wave of unstructured data that is waiting to be mined for useful insights. The company operates under the assumption that despite the vast amounts of data available to the financial sector today, only a small fraction of that data (the structured part) is actually used to improve understanding of services, market conditions, and customer preferences. Cognaize uses deep learning that has been trained on financial models and a large corpus of documents to remedy this problem.

Cognaize’s infrastructure is based on deep learning tools that have been trained exclusively on financial models. The 1.3 million documents accessed by the platform could contain numerous “cells” of information that would require a trained eye to “read.” Loan applications, SEC filings, environmental, social, and governance (ESG) documents, presentations, trustee reports, and others fall under this category.

The company has developed a platform that draws from deep learning trained on financial models and a wide range of documents (over 1.3 million in total) that may contain numerous “cells” of information that require a more trained eye to “read.” (Not only do the documents include SEC filings, ESG documents, presentations, trustee reports, and more, but they also cover loan applications.)

Cognaize acknowledges that AI has the potential to advance in ways never before imagined, but it will never be able to fully replace humans. Therefore, the platform also includes “humans in the loop” to help fine-tune the work. Financial analysts and other human workers use the platform to correct the readings and draw conclusions and decisions based on the results.

Cognaize’s founder, CTO, and Chief Product Officer is Vahe Andonians. A prior fintech he founded, which focused on analytics and risk management for credit investments, was acquired by Moody’s. His philosophy there and with Cognaize is based on the idea that AI can complement human beings by performing tasks that humans cannot.

Two of the three largest credit rating agencies, as well as major insurance providers and banks, are among the many large companies that have signed on as Cognaize clients. Customers can process massive amounts of unstructured financial data and extract insights with remarkable precision and speed using the company’s platform, leading to better decision-making, risk assessment, and the discovery of patterns and trends that were previously obscured by complexity and human error.

The success of AI-focused startups like Cognaize exemplifies a key trend in the industry. An interesting trend is the rise of very strong players specializing in specific fields and use cases, even as many companies make big swings at general knowledge graphs in AI and create truly “large” large language models. It’s possible that these powers are still constructing “large” LLMs, but they’re putting more emphasis on quality than breadth.

It’s possible that investors are betting on specialists because they believe they will always be able to communicate with their customers on a more personal level in the language they use. Better results and training on the company’s unique needs are the strongest arguments for more tailored approaches, but they may also be less expensive to run because their LLMs have fewer parameters and thus require less processing power.

Viken Douzdjian, managing Partner at Argonautic Ventures, said in a statement, “We are thrilled to partner with Cognaize as they apply the transformative power of AI and large language models (LLMs) to finance.” Although AI has caused disruption in many sectors, there are countless applications for finance-specific generative AI due to the vast quantities of unstructured financial data. Our faith in Al, Vahe, and the rest of the Cognaize team to shape the way AI is used in finance is solid.

In summary, Cognaize is an exciting startup to keep an eye on because they are one of the first to provide consistent, quantifiable benefits from artificial intelligence in the banking sector. For Rauno Miljand, managing partner at Metaplanet, investing in Al, Vahe, and the rest of the Cognaize team was a no-brainer. “They have already harnessed the power of AI, as evidenced by the enviable expansion of Cognaize’s business, the global leaders in finance that they have secured as customers, and their unmatched technology roadmap. They are rapidly redefining the limits of what modern AI can do for the financial sector by leveraging the power of their own data to slash expenses dramatically and gain a competitive edge.

First reported on TechCrunch

Frequently Asked Questions

Q. What is Cognaize, and what is its recent funding announcement about?

Cognaize is a New York-based startup focused on developing an unstructured data processing platform for financial artificial intelligence (AI) applications. The company recently raised $18 million in funding to further develop its platform, which combines deep learning technology with human input to extract useful insights from the vast amounts of unstructured data in the financial sector.

Q. What sets Cognaize’s platform apart from other AI efforts in the banking industry?

Unlike many AI initiatives that primarily focus on structured data, Cognaize’s platform is designed to leverage the enormous potential of unstructured data in the financial sector. It operates under the belief that only a small fraction of available data is currently used to improve services, market understanding, and customer preferences.

Q. How does Cognaize’s platform process unstructured financial data?

Cognaize’s platform is built on deep learning tools trained on financial models. It analyzes over 1.3 million documents that may contain valuable information, such as loan applications, SEC filings, ESG documents, presentations, and trustee reports. These “cells” of information require a trained eye to interpret accurately.

Q. How does Cognaize incorporate human input into its platform?

Recognizing that AI cannot entirely replace humans, Cognaize includes a “humans in the loop” approach. Financial analysts and other human workers utilize the platform to fine-tune the readings, draw conclusions, and make decisions based on the results.

Q. Who is Vahe Andonians, and what is his vision for AI in finance?

Vahe Andonians is the founder, CTO, and Chief Product Officer of Cognaize. He believes that AI can complement human capabilities by performing tasks beyond human abilities. His prior fintech venture, which focused on analytics and risk management for credit investments, was acquired by Moody’s.

Q. Which industries and companies are utilizing Cognaize’s platform?

Cognaize’s clients include two of the three largest credit rating agencies, major insurance providers, and banks. These companies use the platform to process vast amounts of unstructured financial data, leading to better decision-making, risk assessment, and discovery of hidden patterns and trends.

Q. Why are investors interested in AI-focused startups like Cognaize?

Investors recognize the potential of specialists like Cognaize, who focus on specific fields and use cases in AI. Tailored approaches offer better results and training for a company’s unique needs and may be less expensive to run with fewer parameters in their large language models.

Q. What do the lead investors, Argonautic Ventures and Metaplanet, have to say about Cognaize?

Argonautic Ventures believes in the transformative power of AI and large language models (LLMs) in finance and has faith in Cognaize’s team to shape AI’s future in the financial sector. Metaplanet, another investor, praises Cognaize for harnessing the power of AI and its unmatched technology roadmap, leading to significant cost reductions and a competitive edge in the financial industry.

Q. Why is Cognaize considered an exciting startup in the banking sector?

Cognaize stands out for providing consistent, quantifiable benefits from artificial intelligence in the banking sector. Its platform’s ability to unlock insights from unstructured data sets it apart in the industry, making it an innovative company to watch closely.

Q. What does the future hold for Cognaize and its platform?

Cognaize’s future roadmap involves further development and expansion of its technology, enabling even more applications and benefits for the financial sector. The company’s AI-driven approach is poised to reshape how data is utilized in finance and bring valuable insights to businesses and decision-makers in the industry.

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KPMG, a worldwide leader in professional services, has formed a multi-year alliance with Microsoft to modernize its workforce practices, strengthen its development, and incorporate artificial intelligence (AI) solutions into its offerings. KPMG will invest $2 billion in Microsoft Cloud and AI services over the next five years as part of this partnership.

KPMG and Microsoft have joined forces to streamline client engagement across the audit, tax, and advisory industries by putting the power of the Microsoft Cloud and the Azure OpenAI Service to use. The 265,000 professionals who make up KPMG’s global workforce will have more freedom to innovate, move more quickly through analysis, and focus on providing strategic guidance.

Through workforce transformation, secure development practices, and the incorporation of AI solutions, the partnership aims to modernize KPMG’s professional services. Both companies are dedicated to ethically deploying cutting-edge AI and cloud services.

KPMG’s global lead partner for Microsoft, Cherie Gartner, recently spoke about how the Microsoft Cloud and Azure OpenAI Service capabilities will allow their teams to assist clients in navigating the rapidly developing AI landscape and resolving their most pressing problems. KPMG stands to gain an incremental growth opportunity of over $12 billion through this partnership.

With the KPMG Clara smart audit platform, KPMG intends to incorporate data analytics, AI, and Azure Cognitive Services into its audit procedure. KPMG’s 85,000 audit professionals will be better able to concentrate on high-risk areas and industry-specific risks and challenges as a result of this merger.

To better serve its clients in the tax services sector, KPMG has decided to incorporate Azure OpenAI Service and Microsoft Fabric into the KPMG Digital Gateway. This will allow for a more holistic approach to tax function management and increase openness.

KPMG and Microsoft have worked together to create an AI solution using the Azure OpenAI Service. This service provides an effective method for analyzing ESG data, discovering trends, and generating ESG tax transparency reports.

KPMG will create new models for servicing clients and increasing output with the help of an AI-powered virtual assistant. The use of generative AI tools will greatly enhance the efficiency and timeliness with which tax professionals and their clients can analyze data.

In addition, KPMG intends to use Microsoft Azure to launch an AI-powered application development and knowledge platform. To increase clients’ competitive advantage and profitability in the advisory domain, this platform will facilitate the rapid development of customized solutions without compromising on ethics or security.

KPMG is very concerned with the security of its network and the privacy of its internal and external data and information. Safeguards have been set up to guarantee the ethical application of open-source AI models like ChatGPT.

KymChat is a proof-of-concept (POC) that was recently introduced by the company in Australia. KymChat gives its customers access to industry-standard practices and methods, allowing them to maximize performance in a variety of areas, such as marketing, product development, innovation, and education.

In conclusion, the partnership between KPMG and Microsoft has the potential to transform the professional services sector through the adoption of AI and cloud computing. KPMG is making a sizable investment in Microsoft Cloud and Azure OpenAI Service so that its worldwide staff can better encourage innovation and provide strategic direction.

KPMG plans to improve its auditing process by incorporating data analytics, AI, and Azure Cognitive Services in order to better equip its professionals to deal with high-risk areas and industry-specific challenges. Faster delivery of individualized solutions for clients in the advisory space is made possible by the company’s cutting-edge platforms and AI-enabled application development on Microsoft Azure.

KPMG places a premium on network security, data privacy, and client confidentiality as part of its commitment to ethical and responsible AI development. KPMG’s KymChat is an artificial intelligence (AI) accelerator that provides access to industry best practices and methodologies to back up optimization efforts across businesses.

KPMG and Microsoft’s partnership exemplifies a responsible and ethical approach to AI and cloud services, and it establishes a new benchmark for innovation and excellence in the professional services sector.

First reported on VentureBeat

Frequently Asked Questions

1. What is the purpose of the alliance between KPMG and Microsoft?

The alliance aims to modernize KPMG’s workforce practices, strengthen its development, and incorporate AI solutions into its offerings.

2. How much will KPMG invest in Microsoft Cloud and AI services?

KPMG has committed to investing $2 billion in Microsoft Cloud and AI services over the next five years.

3. How will the alliance streamline client engagement across industries?

By utilizing the Microsoft Cloud and Azure OpenAI Service, the alliance will empower KPMG’s workforce of 265,000 professionals to innovate, expedite analysis, and focus on providing strategic guidance to clients.

4. What areas of KPMG’s professional services will be enhanced through the alliance?

The alliance will enhance audit, tax, and advisory services by incorporating data analytics, AI, and Azure Cognitive Services into KPMG’s processes.

5. What is the incremental growth opportunity projected for KPMG through this partnership?

The alliance has the potential to unlock an incremental growth opportunity of over $12 billion for KPMG.

6. How will KPMG improve its auditing process through the alliance?

KPMG plans to integrate data analytics, AI, and Azure Cognitive Services into its audit process using the KPMG Clara smart audit platform. This will allow audit professionals to focus on high-risk areas and sector-specific risks and challenges.

7. How will KPMG enhance its tax services?

KPMG will integrate Azure OpenAI Service and Microsoft Fabric into the KPMG Digital Gateway, providing clients with comprehensive access to KPMG Tax and Legal technologies. This will enable a holistic approach to managing tax functions and increase transparency.

8. What AI solution has been co-developed by KPMG and Microsoft?

The alliance has resulted in an AI solution that utilizes the Azure OpenAI Service to analyze ESG data, identify patterns, and generate ESG tax transparency reports.

9. How will KPMG utilize generative AI tools?

KPMG plans to employ a generative AI-powered virtual assistant to develop new client service models and increase efficiency in data analysis for tax professionals and clients.

10. What platform will be developed on Microsoft Azure?

KPMG intends to create an AI-enabled application development and knowledge platform on Microsoft Azure to accelerate the development of tailored solutions for clients in the advisory domain.

11. How does KPMG prioritize network security and data privacy?

KPMG has implemented safeguards to ensure the ethical use of open-source AI models and prioritizes the security of its network and the privacy of internal and external data and information.

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AI refers to computing systems that mimic human cognitive capabilities. Artificial Intelligence involves modeling human thought processes. It enables machines to learn, reason, and make decisions on their own. The widespread use of AI has led to exciting improvements in many domains. It envisions a future where machines seamlessly integrate into our daily lives.

8 AI’s Footprint That Can Change Everyday Life

AI Revolutionizing Communication

Artificial Intelligence has ushered in a communication revolution that has profoundly impacted our daily lives. Intelligent aides use natural language processing and machine learning algorithms. They understand and respond to our vocal commands. They provide a convenient, hands-free way to access information and control smart devices. And They can also perform various tasks efficiently.

Additionally, AI has empowered businesses to enhance their customer support capabilities through the use of chatbots. These intelligent bots are programmed to understand and respond to customer queries, providing instant assistance and support around the clock. With AI-driven chatbots, businesses can handle a large volume of customer inquiries efficiently, improving customer satisfaction and reducing response times.

AI has greatly impacted language translation and interpretation. Advanced AI algorithms have made significant language processing and understanding strides, enabling real-time translation services. AI-powered language translation tools have revolutionized communication globally. They translate text on websites, convert speech to different languages, and facilitate live conversation translation. Language barriers are overcome with ease thanks to these tools.

AI Enhancing Healthcare

AI-driven diagnostics and medical imaging have improved accuracy and efficiency in detecting and diagnosing various medical conditions. Machine learning algorithms analyze medical images, including X-rays, MRIs, and CT scans. They do so with remarkable precision. These algorithms help radiologists identify potential abnormalities. They also assist in the early detection of diseases.

Moreover, AI has paved the way for personalized medicine and targeted treatment approaches. AI algorithms analyze patient data, including genetics, medical history, and treatment outcomes. They identify patterns, make predictions, and recommend tailored treatment plans. This approach enables personalized care based on unique characteristics and medical needs.

AI in Transportation

The transportation realm is undergoing a profound metamorphosis with the emergence of artificial intelligence (AI). AI algorithms power the dawn of self-driving cars. It has the potential to transform transportation. It brings heightened safety, efficiency, and convenience. These vehicles use sensors, cameras, and algorithms to perceive their environment. They can make smart choices.

 Consequently, this leads to a notable decrease in vehicular accidents and a remarkable improvement in the smooth flow of traffic.

AI is also making an impact on traffic management systems. AI-powered traffic management systems can optimize traffic flow, reduce congestion, and improve overall transportation efficiency by analyzing real-time data from various sources, including cameras, sensors, and GPS devices. These systems can detect traffic patterns, predict congestion points, and dynamically adjust traffic signals to facilitate smoother traffic movements.

Additionally, AI plays a crucial role in predictive maintenance for vehicles. By analyzing sensor data, performance history, and maintenance records, AI algorithms can identify potential issues and recommend maintenance actions proactively. This approach helps prevent breakdowns, reduces maintenance costs, and increases the lifespan of vehicles, leading to improved reliability and efficiency in transportation systems.

AI in Entertainment

The entertainment industry is undergoing a transformation fueled by AI innovations. AI-generated content is becoming increasingly prevalent in movies and music. Film studios leverage AI algorithms to create realistic visual effects, enhance post-production processes, and generate computer-generated imagery (CGI) that seamlessly blends with live-action scenes. Similarly, in the music industry, AI algorithms can analyze vast music databases to compose original songs, mimic the style of famous artists, and even generate personalized playlists based on individual preferences.

Streaming platforms have also embraced AI to provide personalized recommendations to users. AI algorithms can curate content suggestions that match users’ interests by analyzing user behavior, viewing history, and preferences. AI algorithms are used to create immersive virtual environments, realistic simulations, and interactive experiences. From gaming to training simulations, virtual reality and augmented reality technologies powered by AI are transforming how we engage with digital content.

AI and Education

AI is reshaping the field of education, offering innovative tools and platforms to enhance learning experiences. Intelligent tutoring systems leverage AI algorithms to provide personalized guidance and support to learners. These systems can adapt to individual learning styles, identify knowledge gaps, and provide tailored instructions and feedback to help students achieve better learning outcomes.

Adaptive learning platforms powered by AI are also gaining popularity. These platforms use machine learning algorithms to analyze student performance data, identify strengths and weaknesses, and dynamically adjust the learning content and pace to match individual needs. Adaptive learning ensures students receive a customized learning experience, maximizing their learning potential.

AI and Workforce Automation

Integrating AI technologies into various industries has sparked concerns about job displacement. Artificial intelligence possesses the ability to automate specific tasks and occupational functions, yet it also holds the potential to enhance human capabilities and engender fresh prospects. By assuming responsibility for monotonous and repetitive duties, AI liberates human workers to concentrate on intricate and imaginative endeavors.

Consider, for instance, the realm of manufacturing, where AI-driven robots and automated systems operate in harmony to optimize production processes, thereby fostering heightened efficiency and productivity. Consequently, human workers can assume more prominent roles involving supervision and strategy, ensuring meticulous quality control, process refinement, and groundbreaking innovation.

AI and Smart Homes

The concept of smart homes has gained significant traction with advancements in AI technology. With the help of these voice-controlled systems, homeowners can now manage a wide range of functions within their living spaces. 

From adjusting lighting and temperature settings to managing security systems and entertainment devices, AI-enabled smart homes offer convenience, comfort, and energy efficiency.

Beyond convenience, AI algorithms can optimize energy usage in smart homes. By analyzing energy consumption patterns, AI can suggest strategies to minimize waste, reduce utility bills, and contribute to environmental sustainability. For instance, smart thermostats can learn residents’ preferences and automatically adjust temperature settings to maximize energy efficiency without compromising comfort.

AI and Finance

The finance business is using AI to simplify and enhance various procedures. Algorithmic trading powered by AI can analyze vast amounts of financial data, spot patterns, and make data-driven investment decisions in immediately. This has led to greater productivity in trading and better investment results.

Robo-advisors are another application of AI in B2B business. These online tools use machine learning algorithms to provide customized investment advice based on individual financial goals, risk tolerance, and market conditions. Robo-advisors offer accessible and cost-effective investment solutions, making investment opportunities more inclusive for a broader range of individuals.

Featured Image Credit: Pexels; Thank you!

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The world of tech regulation is ever-changing as new technologies, guidelines, and reporting requirements arise. If you’re developing software in such a rapidly evolving landscape, you’ll have an increasing number of challenges to overcome. With new regulations set to go live in the near future, you’re likely facing growing pressure to create compliant, secure, and resilient applications.

In this article, we’ll explore the current state of the Regtech industry and examine how regulatory requirements impact software development in 2023.

Skilled talent shortage

One of the biggest hurdles the regulatory industry faces is the need for more skilled talent with experience in the area. According to ISACA’s State of Security in 2022 report, many organizations are struggling to find and retain qualified personnel. In addition, the growing demand for professionals who understand the complex regulatory landscape naturally leads to a competitive job market, thus exacerbating the issue.

The most common skill gaps noted are soft skills(54%), cloud computing (52%), and security control(34%). In 2023, software providers can prioritize training staff in skills the industry needs. Enough qualified talent would allow you to backfill in-demand positions and prevent this shortage from affecting your operation.

Data Privacy

In 2016, the European Union adopted the GDPR – General Data Protection Regulation – giving E.U. citizens control over their data and how it’s used. Since then, other countries have followed suit, strengthening people’s control over their personal information.

Ever since the United States has also been putting its own privacy regulations in effect.

The California Consumer Privacy Act(CCPA), passed in 2018, is one of the most significant U.S. privacy bills, giving citizens greater control over how businesses use their data.

Last year saw 29 US states introduce data privacy bills. One of them was the California Privacy Rights Act, which took effect on January 1st, 2023. It expanded the CCPA to give residents even more power, such as the right to restrict personal information use, correct it, inquire about automated decision making and opt out of it. The American Data and Privacy Protection Act (ADPPA) aims further to regulate the gathering and storing of consumer information.

With all of that in mind, a software provider has a growing legal and moral obligation to meet an increased need for user privacy. Your first step in tackling that is to understand the regulations and identify the requirements your product or service needs to meet.

Once you understand the situation, you can incorporate security principles and processes into your work. For example, Privacy by Design(PbD) is an approach to data that emphasizes privacy at every stage of development and can help you ensure you’re complying with the latest regulations.

The increasing complexity of regulatory requirements

The European Market Infrastructure Regulation(EMIR) was introduced in 2012. By introducing reporting requirements, it aimed to simplify and improve the regulation of over-the-counter(OTC) derivatives and central counterparties(CCPs) in the E.U.

On April 29th (April 30th in the UK), 2024, the EMIR refit is going live. A review of the EMIR makes significant and granular amendments to the original legislation. It increases the total number of reportable fields and changes the reporting format significantly.

By introducing these new reporting requirements, the refit significantly increases the complexity of regulatory reporting. Software companies must keep a watchful eye on these changes, invest in compliance technology and consider automating some regulatory processes to remain compliant.

Industry collaboration

With the increased regulatory complexity we discussed, the industry recognizes that working together to share knowledge and solutions is critical to ensuring compliance. Gone are the early days of regulatory reporting when firms tried to tackle new requirements and challenges alone.

The growing adoption of the unified ISO XML 20022 format is a testament to this. Using a uniform regulatory reporting format means that all market participants, regardless of location, will be reporting similarly. This increased standardization serves to facilitate collaboration and cross-border reporting, as well as reduce inconsistent reports.

Working groups are one prominent example. Industry participants, subject matter experts, and clients work together to understand the industry’s needs, focus their efforts and ensure solutions to upcoming challenges cover all use cases.

For an example of an identified upcoming challenge, look at UTI(Unique Trade Identifier)  matching. Since it refers to reconciling a trade’s unique identifier across multiple counterparties, it’s a manually intensive, time-consuming process. Working groups tackling this issue are looking for a way to reduce UTI pairing breaks and allow reporting companies to identify and amend incorrect trade details before TR submission.

Wrap Up

As you can see, technological regulation is a rapidly evolving landscape, and it would take a conscious effort on software developers’ part to stay compliant. In 2023, people will get much greater control over their data. In addition, we’ll be facing an increasingly complex reporting environment. And all that coincides with a shortage of skilled talent with regulatory experience.

With that being said, the future is far from bleak. Industry participants are coming together and collaborating on a growing scale. Working groups are spearheading breakthroughs and streamlining reporting and compliance processes. And if you’re having trouble meeting the latest requirements, a good RegTech software partner (dreamix dot eu) could help you.

Ultimately, as they say, knowing is half the battle. You’re much closer to keeping your operation aligned and secure by staying informed of tech regulation developments.

Featured Image Credit: Provided by the Author; Dreamix eu; Thank you!

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Companies in today’s fast-paced business environment require dependable and efficient tools to manage financial planning. Legacy tools have been around for a while, but they typically fall short due to their awkward design and limited functionality. Jirav is a fintech startup led by veteran entrepreneur Martin Zych, who saw a need in the market for cloud-based financial planning software and set out to fill it. Jirav’s mission is to help businesses succeed by providing them with comprehensive, automated accounting and financial model solutions. In this piece, we’ll look at how Jirav is shaking things up in the financial planning world, catching the eye of investors, and establishing itself as a frontrunner in the field.

Martin Zych spent a number of years working for startups like Limeade and Zephyr Health, during which time he came to appreciate the shortcomings of conventional methods of financial planning. There was a lack of holistic measurement and planning due to the siloed nature of these legacy systems and their clumsy architectures. When Zych’s company spent nearly $100,000 and six months implementing a financial planning and analysis (FP&A) solution, he finally snapped. This experience strengthened his resolve to develop a quicker, cheaper option for financial experts.

Zych and his business partner Steve Turner created Jirav, a cloud-based platform with a collection of ready-made FP&A solutions geared toward various sectors. Financial planning for businesses can be simplified with Jirav’s access to a variety of financial models, KPIs, reports, and dashboards.

The recent $20 million Series B funding round is evidence that investors believe in Jirav’s mission. Cota Capital led the round, and Alumni Ventures, Born Capital, Bluefish Ventures, and Information Venture Partners also participated. With this new round of financing, Jirav has raised a total of $33 million, which will be used for product improvement, customer expansion, and employee expansion.

According to Martin Zych, this capital raise is in line with Jirav’s long-term strategic plan and will help the company stay ahead of the competition and pioneer new approaches to financial planning. Jirav is positioning itself for success as the economy recovers by raising capital now, ensuring its growth trajectory and continued development.

Jirav provides a wide variety of financial planning tools to meet your needs. Business budgets, scenario plans, and forecasts can be analyzed by integrating operational, accounting, and workforce data into the platform. Here are just a few of Jirav’s software’s many strengths:

1. Forecasting Profits and Loss

With Jirav, businesses can make reliable financial projections. Businesses can foresee potential financial trends by analyzing past data and using industry-specific models. With this foresight, businesses can better prepare for future growth or difficulties.

2. Cash Flow Analysis

The health of a company’s finances depends on how well its managers handle cash flow. The software offered by Jirav helps companies examine their cash flow, spot problems, and develop better cash management practices. Businesses can run smoothly by foreseeing and addressing cash flow gaps using cash flow projections.

3. Planning and Budgeting

Effective financial planning and budgeting are made easier with Jirav’s platform. In-depth budgets, efficient resource allocation, and KPI monitoring are all within reach for businesses. With this capability, businesses can maximize resource utilization, boost productivity, and increase profits.

4. Scenario Planning

Companies today must adapt to a constantly shifting landscape full of unpredictability and market volatility. With Jirav’s scenario planning tool, businesses can simulate a variety of hypothetical situations to see how they might affect financial results. Companies can plan ahead for a variety of outcomes and reduce risk by simulating best-case, worst-case, and most-likely scenarios.

Jirav has a solid foundation in the financial planning software market, but it is still challenged by other companies. Cube, which also makes tools for financial teams to prepare for the future, is a major competitor. Similar to Jirav, Cube has managed to raise a substantial amount of money, in this case over $45 million. Financial planning and analysis startups are also competing for market share. These companies include Firmbase, Vereto, and Mosaic.

Allied Market Research predicts that by 2031, the global market for FP&A software will have grown to $16.9 billion, reflecting the increasing need for cutting-edge offerings in this sector. Jirav’s differentiated product offering and concentration on accounting firms put it in a strong position to capitalize on this market demand despite the presence of strong competitors.

Jirav’s dedication to providing value to its customers is reflected in the extensive list of over 4,000 companies that use its services. While Martin Zych did not disclose specific revenue figures, he did call Jirav’s performance “strong.” In recent quarters, the company has seen record growth, with hundreds of new businesses joining its platform every month.

Jirav understands the significance of constant innovation in the current fintech landscape. Mosaic and Datarails are two new entrants in the financial planning space that have joined industry veterans Workday Adaptive Planning and Netsuite. Jirav competes with these companies by providing a product that stands out from the crowd and is tailored to the needs of accounting firms.

Jirav is well-positioned for future growth and market dominance thanks to a recent funding round and expanding customer base. Jirav will be able to further improve its product offering, increase its efforts to acquire customers, and attract top talent to support its mission with the additional funding. Jirav’s goal is to maintain its status as the industry’s preeminent provider of software for financial planning by keeping abreast of emerging technologies and consumer preferences.

In conclusion, Jirav’s cloud-based software is a game-changer in the world of financial planning. Jirav’s automated, all-encompassing solutions help businesses save time and money when it comes to budgeting and planning. Jirav’s recent funding round has set the company up for sustained growth, groundbreaking new developments, and a leadership role in its field. Jirav’s dedication to its customers and distinctive product offering will help it thrive in the growing FP&A software market.

First reported on TechCrunch

Frequently asked questions

Q: What sets Jirav apart from legacy financial planning tools?

A: Jirav offers a cloud-based platform with ready-made solutions for various sectors. It overcomes the siloed nature and limitations of legacy systems, providing comprehensive financial models, KPIs, reports, and dashboards for efficient financial planning.

Q: What are the main features of Jirav’s financial planning software?

A: Jirav’s software includes features such as profit and loss forecasting, cash flow analysis, plan and budget creation, and scenario planning. These tools enable businesses to make reliable projections, manage cash flow effectively, allocate resources efficiently, and assess risks.

Q: How does Jirav help businesses succeed?

A: Jirav’s platform simplifies financial planning and analysis, saving time and money for businesses. It provides access to a variety of financial models, KPIs, and reports, enabling businesses to make informed decisions and optimize their financial performance.

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The fintech industry in the United Kingdom is poised for a major transformation with the potential introduction of a digital pound. Innovate Finance, the leading industry body for fintech, has expressed its support for the concept, highlighting the tremendous potential it holds for spurring payment innovation in the country. This support comes in response to a joint consultation initiated by the UK Treasury and the Bank of England to explore the feasibility of a state-backed digital asset, commonly referred to as a central bank digital currency (CBDC). In this article, we will delve into the implications of the proposed digital pound, its benefits, and its role in solidifying the United Kingdom’s position as a global leader in payments innovation.

The Bank of England has identified the need for a central bank digital currency in the future, signaling that a digital pound is likely to become a reality. This digital currency would function as a “digital banknote” issued by the Bank of England, providing households and businesses with a convenient and secure means of conducting everyday payments. The adoption of a retail digital pound has the potential to stimulate innovation across various domestic markets, including rental and e-commerce, while fostering financial inclusion and reducing costs for small and medium-sized enterprises. Janine Hirt, CEO of Innovate Finance, believes that the digital pound, alongside a broader ecosystem of digital payments, will enhance the United Kingdom’s global standing in payments innovation.

To gather industry insights and opinions, the Treasury and the Bank of England launched a consultation in February, inviting stakeholders to contribute their views on the digital pound. The consultation period has been extended until the end of June, indicating the significance and complexity of the topic at hand. This extension allows for a comprehensive examination of the potential benefits, challenges, and implications associated with the introduction of a digital pound in the UK.

The proposed digital pound offers several advantages that can revolutionize the payments landscape in the United Kingdom. Let’s explore some of the key benefits:

Introducing a digital pound would fuel innovation and pave the way for economic growth in various sectors. By leveraging emerging technologies such as blockchain, the digital pound can enable faster, more secure, and efficient transactions, driving productivity and competitiveness. This digital infrastructure would encourage the development of innovative financial applications and services, further solidifying the UK’s status as a global fintech hub.

One of the primary goals of the digital pound is to promote financial inclusion. By providing individuals with access to a secure and user-friendly digital currency, barriers to participation in the formal financial system can be reduced. This would enable underserved populations, including the unbanked and underbanked, to effortlessly engage in digital transactions, access credit, and manage their finances more effectively.

Small and medium-sized enterprises (SMEs) stand to benefit significantly from the adoption of a digital pound. Traditional payment methods, such as card transactions and bank transfers, often come with high fees and processing times. By embracing a digital currency, SMEs can streamline payment processes, reduce costs, and improve cash flow. This can have a transformative impact on the growth and sustainability of these businesses, ultimately contributing to a thriving economy.

A digital pound would offer enhanced security features that mitigate the risk of fraud and unauthorized access. The use of advanced encryption and distributed ledger technology would provide a robust framework for secure transactions, protecting both individuals and businesses from potential cyber threats. This increased security would instill confidence in the digital payment ecosystem and encourage wider adoption.

While the concept of a digital pound brings forth numerous benefits, it also presents certain considerations and challenges. These factors need to be carefully examined and addressed to ensure the successful implementation of a state-backed digital currency.

The widespread adoption of a digital pound relies heavily on the availability and reliability of technological infrastructure. Access to the internet, digital devices, and secure networks is essential for individuals and businesses to fully leverage the benefits of a digital currency. Efforts must be made to bridge the digital divide and ensure that all segments of society can participate in the digital payment ecosystem.

The introduction of a digital pound necessitates the establishment of a robust regulatory framework to ensure compliance with existing laws and regulations. This framework must address concerns related to money laundering, terrorist financing, and consumer protection. Striking the right balance between innovation and regulation is crucial to maintain the integrity and stability of the financial system.

As with any digital transaction, privacy and data protection are paramount. Safeguarding personal information and ensuring secure data management is essential to build trust among users of the digital pound. Comprehensive data protection measures and privacy regulations must be in place to protect individuals’ sensitive information and preserve their digital rights.

The successful implementation of a digital pound requires widespread user education and acceptance. Individuals and businesses must be educated on the benefits, functionalities, and security measures associated with the digital currency. Promoting awareness and conducting outreach programs can help to build trust and encourage adoption among all segments of society.

The proposal to introduce a digital pound in the United Kingdom has garnered significant support from industry experts and stakeholders. The potential benefits of a digital currency, such as fostering innovation, enhancing financial inclusion, and reducing costs for businesses, cannot be overlooked. However, careful consideration must be given to address challenges related to infrastructure, regulation, privacy, and user education. By navigating these considerations effectively, the UK has the opportunity to establish itself as a global leader in payments innovation, setting a precedent for other countries to follow. The digital pound holds immense potential to reshape the future of payments, and its successful implementation could mark a major milestone in the evolution of the fintech industry.

Frequently Asked Questions

Q: What considerations and challenges need to be addressed for a successful implementation of a digital pound?

A: Considerations include ensuring reliable technological infrastructure, establishing a robust regulatory framework, addressing privacy and data protection concerns, and conducting user education and acceptance programs.

Q: How important is technological infrastructure for the widespread adoption of a digital pound?

A: Access to the internet, digital devices, and secure networks is crucial for individuals and businesses to leverage the benefits of a digital currency. Efforts must be made to bridge the digital divide and ensure broad participation in the digital payment ecosystem.

Q: What regulatory considerations are necessary for a digital pound?

A: A robust regulatory framework is required to address compliance with existing laws and regulations, particularly related to money laundering, terrorist financing, and consumer protection. Balancing innovation and regulation is important for maintaining the integrity and stability of the financial system.

Q: How can privacy and data protection be ensured in a digital pound ecosystem?

A: Comprehensive data protection measures and privacy regulations must be in place to safeguard personal information and secure data management. This helps build trust among users and preserves their digital rights.

Q: How can user education and acceptance be promoted for a digital pound?

A: Individuals and businesses need to be educated about the benefits, functionalities, and security measures associated with a digital currency. Awareness campaigns and outreach programs can help build trust and encourage adoption across society.

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