Regulators find flaws in an audit of Revolut; & more!

Connecting the Dots FinTech Update - June 27th

Sign up for my Daily Fintech or Daily Digital Banking Newsletters here. Check out my latest podcast episode below: This podcast episode is sponsored by YieldX. YieldX is transforming income investing to bring its benefits to all investors. With YieldX, the outcome is income. Welcome to your daily FinTech news! In case you missed it, please see below today's most relevant news, or tune in to our Daily Fintech Podcast here. NEWS HIGHLIGHT The 1st US framework on crypto regulation. The measures proposed to eliminate illegal crypto activity in the industry appear to be serious. The framework also points to the potential for “significant benefits” from a U.S. central bank digital currency, or CBDC. Link here. FINTECH NEWS #FinancialLiteracy Kendrick Lamar teams up w/ Cash App & Ray Dalio to give a quick financial literacy lesson. The ad comes from pgLang, the multilingual creative collective founded by Kendrick Lamar and Dave Free. Link here. #Insights BNPL market trends and consumer impacts. The industry mix of BNPL usage is diversifying. Apparel and beauty merchants, who had combined to account for 80.1 percent of originations in 2019, only accounted for 58.6 percent in 2021. Link here Argentine inflation jumped to 80% YoY. This puts the country second only to Venezuela in Latam in terms of high inflation, with prices rising almost 8% during August. Link here

Sign up for my Daily Fintech or Daily Digital Banking Newsletters here. Check out my latest podcast episode below: This podcast episode is sponsored by Klarna Kosma. Klarna Kosma can supercharge your business by providing essential connectivity to a growing network of more than 15,000 banks in 26 countries through a single Open Banking API. With Klarna Kosma, you have everything you need to create payment services and new user experiences your customers will love. Check out how we can make your game-changing ideas powerfully real with Open Banking. Visit kosma.com today! Welcome to your daily FinTech news! In case you missed it, please see below today's most relevant news, or tune in to our Daily Fintech Podcast here. NEWS HIGHLIGHT Regulators find flaws in an audit of Revolut. UK regulators highlighted significant flaws in the auditing of its accounts, including an “unacceptably high” risk of “material misstatement.” The watchdog also highlighted deficiencies in how Revolut’s payment processes were tested by BDO. Link here. FINTECH NEWS #CreditScoring Credit Karma has been fined £3 million by the US consumer watchdog for misleading claims that people have been or are likely to be approved for credit or loans. According to the Federal Trade Commission, the credit services company had deployed ‘dark patterns’ to misrepresent consumers ‘pre-approved’ for credit card offers. Link here #Insights Digital banking and Insurtech growing fast in LatAm. Looking at the industry's growth over the past years, IDB notes that the number of FinTechs in the region more than doubled. Link here German FinTech funding to reach $4.2B in 2022, a 34% drop from 2021. Deal activity in the country is also on track to fall, although by a less significant 7% to 272 deals for 2022. Link here

Sign up for my Daily Fintech or Daily Digital Banking Newsletters here. Check out my latest podcast episode below: This podcast episode is sponsored by Provenir. Provenir does more than help with your current tech challenges. They eliminate them. Designed and built to power agility, their cloud-native technology puts your team in control. Loved by Startups. Trusted by Decacorns. Welcome to your daily FinTech news! In case you missed it, please see below today's most relevant news, or tune in to our Daily Fintech Podcast here. NEWS HIGHLIGHT Stripe founders’ fortunes plunge by more than $6bn amid global tech stock meltdown. Stripe slashed its internal share price by 28% to $29 per share from $40 in early July in a move that brought down the company's valuation to $74 billion. Compared to $95 billion, when the company raised $600 million in a funding round last March. Link here. FINTECH NEWS #Insights 409 investors drove LatAm’s FinTech sector in H1 2022, Y Combinator, an American-based technology startup accelerator, accounted for the most deals, with seven in total. Link here Indian Fintechs struggle to turn a profit. A survey of over 125 founders at Indian fintech found that more than 70% of executives believe most companies may not be able to turn a profit. Link here Brazil will be a global leader in Open Banking. Brazil’s Open Banking and Finance ecosystem will soon be the largest in the world, according to speakers at an industry event. Link here Center of the start-up world. Listen to TechCrunch's latest podcast episode of their Equity series to learn more about the Figma-Adobe deal, the best deals of the week, the wave of new venture funds in Europe, etc. Link here #FinTechInnovation ECB picked companies to develop prototypes for user interfaces to assess the potential for a digital Euro. Each company will focus on one specific use case of a digital euro. Link here