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financial services

Leading UK Fintech Firms Now Working with PwC to Streamline Digital Financial Services with AI, Data Analytics

Ten of the United Kingdom’s leading Fintech companies are now working with Big Four auditing firm PwC in order to showcase how the future of banking will focus on both collaboration and innovation, along with greater personalization.

After 3 years of ongoing development, the 10 Fintechs have managed to contribute to the company’s “Tysl” ecosystem which includes various solutions related to software, automation, AI, data management and analytics.

These solutions aim to make it easier or more convenient for clients to open new bank accounts, obtain specialized financing services, move house and digitally sign official documents.

By leveraging an API-powered approach, which lets software apps communicate with each other, Tysl has enabled these firms to work cooperatively and innovate together with PwC to create a banking tech proposition that helps organizations with significantly enhancing performance across several different measures.

This includes dealing with complex customer or user experience journeys like advanced Customer Relationship Management (CRM), Know Your Customer (KYC), Credit Decisioning, and in life account and loan servicing across several key areas such as mortgages, savings and corporate lending.

By leveraging Tysl, PwC can effectively develop all-digital solutions through an innovative, affordable, and user-centric online lending platform. This can help the company’s customers with enhancing their customer-facing business operations and improve products and services in order to meet the speed and multi-channel expectations required by companies today.

James Morgan, Lead Partner on Tysl stated:

“Banking is changing, people expect more and require personalised digital interactions. Based on the needs and expectations of tomorrow’s customers, we have developed our Tysl platform. This is helping our clients reach new customers, upsell and grow topline revenue by delivering enhanced capabilities whilst significantly reducing the costs of servicing the client from onboarding to in life servicing.”

The companies or businesses that are now integrated with the Tysl platform include:

Mambu – is a software-as-a-service or SaaS financial services platform supporting innovation in banking, lending, and – a Cloud-native alternative to more traditional core banking systems.

Yoti – is a global identity platform that makes it more seamless and safer for banking clients to prove who they are via ID verification and biometrics

Kompli Global – created a remote due diligence solution that harnesses artificial intelligence and “human expertise” to provide intelligence on organizations and their workers.

DueDil – is an insights provider assisting financial services organizations and insurers with a better understanding of their client base to handle digital or online onboarding, manage compliance, risk, and in-life monitoring.

Just Move In – provides a home setup experience for people moving home that arranges essential services including council tax, insurance, and broadband.

SignNow – is a legally binding eSignature application, allows users to create and complete legally binding electronic signatures on any device.

Codat – connects the tools and services that small businesses need for their operations to their financial service providers and takes care of the “heavy lifting” of those integrations.

Flexys – is a specialist tech firm focused on enhancing the value and performance of debt management and collection systems with a low-code, Cloud-native platform.

Saltedge – develops PSD2-powered solutions that are used by Fintech firms, banking institutions, and other financial institutions across the globe. The company provides connectivity to over 2500 banks across Europe for data aggregation and payment initiation capabilities – through a single API.

Credit Kudos -an open banking credit reference agency that uses real-time financial behavior to “measure creditworthiness” and “affordability” to assist lenders when unwriting consumer and commercial loans.

Lendingmetrics – Auto Decision Platform (ADP) is a decision engine environment that may be applied across “unlimited” brands, products or lending journeys under a single license and offers a comprehensive (no-code) editor, helping non-technical staff to make real-time changes to credit risk logic

Gazeal – enables the seller of a property to provide key details required to meet the estate agent’s Consumer Protection Regulations requirements, and, as a Licensed Provider of the Law Society, all of the requirements of the Conveyancing Quality Scheme. By using Gazeal’s reservation service, it will “almost” completely eliminate abortive transactions.

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Goldman Sachs Opens Office in Birmingham UK

In a significant endorsement of the city, Goldman Sachs (NYSE:GS) has opened an office in Birmingham, UK – a community that has been promoting itself as an alternative to super pricey London.

Goldman Sachs stated that Birmingham offers access to a deep talent pool, excellent academic institutions, and a growing technology sector. The easy proximity to London is said to be an advantage as well. Goldman said that engineering will be the first division to build out in Birmingham and they expect to have a headcount of several hundred across a number of divisions over time. Beyond its investment banking business, Goldman also operates its digital bank Marcus in the UK.

In a report from last year, the regional representatives said that Fintechs already employed about 24,000 people in Birmingham.

Neil Rami, Chief Executive of West Midlands Growth Company, the official investment promotion agency that helped to secure the investment, on the significance of the bank’s major new presence among the West Midlands’ Business Professional and Financial Services (BPFS) sector commented on the news:

“Goldman Sachs is one of the world’s most prestigious investment banking institutions, renowned for its laser-focus on recruiting the best and brightest talent and the pre-eminence of its data-driven, customer-centric technologies. We are delighted that Goldman Sachs has chosen Birmingham as the home of its major new presence, where it will harness the region’s entrepreneurial talent to develop its mission-critical digital expertise, creating hundreds of jobs. As the investment banking landscape continues to innovate in the face of rapid Fintech transformation, the West Midlands Growth Company put forward a compelling appraisal of the region’s digital engineering workforce, academic facilities and long-standing influence in the field of banking and finance. The region boasts the largest and most high-value Financial & Professional Services sector outside the capital and is super-charging the UK’s innovative potential through SuperTech; the UK’s first and only dedicated professional services-tech accelerator.”

Rami added that the area is already home to other financial services firms such as HSBC’s UK headquarters and Deutsche Bank. He said that the West Midlands is successfully recasting typically London-centric banking structures, offering a premium but far more cost-effective base for innovative businesses.

“This is just the beginning of a surge in momentum in foreign investment here, with the 2022 Commonwealth Games and Coventry’s City of Culture status opening up new international avenues to strengthen trade and investment flows into the region. We look forward to supporting Goldman Sachs’ long and prosperous journey here in the West Midlands,” said Rami

Richard Gnodde, CEO for Goldman Sachs International, stated:

“Establishing a new office in Birmingham will diversify our UK footprint and give us access to a broad and deep talent pool in the local area. We see tremendous opportunity to enhance our UK presence and continue delivering for our global clients.”

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ZA Tech Global, the Technology Initiative Backed by Softbank Vision Fund I, Launches Asia Fintech Center

ZA Tech Global Limited, the technology venture established by ZA International and supported by Softbank’s Vision Fund 1, revealed on Friday (April 9, 2021) that it’s launching its Asia Fintech Center (AFC) in Singapore. The new center will focus on financial services innovation projects and it will also assist industry participants in the region so they can develop new products that will accelerate their digital transformation strategies.

The AFC launch is reportedly a global first for ZA Tech, as the business increases its focus on supporting the vision of providing a unified tech platform that aims to support the future of financial services and offer access to underserved consumers.

The Singapore-headquartered Center will aim to address specific use-cases in insurance and the financial services sector with assistance from industry partners. It will initially work on various insurance use-cases by co-developing innovative projects with ASEAN region-based insurance service providers. It will also work with local academic institutions or universities to develop appropriate Fintech-related expertise and talent.

Bill Song, CEO of ZA Tech, stated:

“We partner with industry players to strive to boldly redefine financial services, and the AFC is an important pillar of making that happen. As we have entered 2021, the year the internet economy continues to rapidly reshape consumer expectations across Asia, digital transformation is becoming as crucial as ever for financial services firms. AFC will bring together technology, talent and partner network to build innovative propositions that fit closely with the evolving customer expectations across both online and O2O and to help financial services prepare for the next chapter of the digital revolution.”

George Kesselman, Head of Commercial for ZA Tech, remarked:

“I am incredibly proud of the work that the team is doing with our partners in the region. AFC will allow us to bring collaboration to the next level by launching new innovative use-cases and enable rapid product-market fit testing and iteration. Southeast Asia is the major epicentre of financial services transformation. We strongly believe that Singapore, as the hub of innovation and talent in the region with its innovation friendly environment and forward oriented regulator Monetary Authority of Singapore, provides the perfect location to launch and scale fintech innovation across Southeast Asia.”

ZA Tech is the tech platform for ZA International that focuses on expanding its global operations by teaming up with major internet firms and financial services companies based in Southeast Asia, Japan and Europe. ZA Tech offers technical solutions and professional services as well.

ZA Tech aims to digitally transform the insurance sector by working with several different customer technology platforms. It’s focused on creating innovative insurance solutions while offering the digital core system to insurers as the infrastructure for their distribution.

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Malaysia based Telecom Axiata Group and Norway’s Telenor to Merge Malaysian Mobile Businesses

Axiata Group and Telenor Asia revealed on Thursday (April 8, 2021) that they’ve revisted and confirmed their merger plans involving Celcom and Digi. At present, the deal is in advanced discussions.

Malaysian telecoms company Axiata Group Bhd and Norway-based Telenor ASA will be focused on merging their  Malaysia-based mobile business operations.

Both firms stated that they had been planning the merger of the telco operations of Celcom Axiata Berhad and Digi.Com Bhd. As part of the deal, both companies will have equal ownership (at around 33% for each company).

As first reported by Reuters, Malaysian institutional investors need to own at least 17.9% of the outstanding shares in the new firm, ensuring that the total domestic ownership is more than 51%, Axiata confirmed.

The firm will be known as Celcom Digi Bhd.

Reuters had also reported earlier that Axiata and Telenor were planning to confirm a deal that was expected to involve the Malaysia-based mobile operations of both companies.

As part of the deal, Axiata will be getting newly issued shares in Digi, which is a cash consideration from new debt in the merged firm of around $400 million and an additional $70 million from Telenor Group, Telenor’s management noted.

Telenor also mentioned:

“A transaction will realize synergies and provide value for shareholders in line with our strategy of further developing Telenor’s Asian portfolio.”

The Norwegian firm, which is the major shareholder in Digi, has other Asia-based operations in Bangladesh, Pakistan, Myanmar, and Thailand.

Axiata’s management confirmed that the merged entity will aim to serve as “a leading telecommunications service provider in Malaysia in terms of value, revenue and profit.” It’s expected to generate proforma revenue of approximately 12.4 billion ringgit or around $3 billion USD.

The entity is also expected to have earnings before interest, taxes, depreciation and amortisation of around 5.7 billion ringgit, and about 19 million customers.

Trading in the company shares of Axiata and Digi had been suspended earlier, as the announcement details were being finalized.

In September of last year, Axiata and Telenor had backed out of a potential deal to establish a telecoms joint initiative with almost 300 million clients based in Southeast Asia. The firms had said that the transaction may have led to certain “complexities” which is why they didn’t follow through with it.

During 2020, Telenor had also been planning to combine its Asia-based business operations into one entity under new management so that it could work on other initiatives more effectively.

Digi is notably one of Malaysia’s biggest mobile services platforms in terms of subscribers, while Axiata’s local division Celcom is the third-largest.

As covered in February of last year, the Telenor Microfinance Bank of Pakistan revealed the new DLT-based cross-border payments service, which is available via Easypaisa, a leading mobile-based digital wallet.

The Easypaisa online wallet app lets Pakistani citizens, working in Malaysia, send money back home instantly and securely, via Telenor’s Malaysia-headquartered payment platform Valyou.

As reported in June 2020, GREAT Eastern (Life Assurance), the largest life insurance company in Singapore and Malaysia, had confirmed a $70 million investment into Axiata Digital’s financial services business, in order to take part in the company’s Fintech-focused plans, according to Khor Hock Seng, group CEO at Great Eastern.

The investment was reportedly made through a newly launched holding company, called Boost Holdings.

As mentioned in the announcement, Boost Holdings is a wholly-owned subsidiary of Axiata Digital, which is the digital services division of the Axiata Group, a major telecommunications group in Malaysia.

After finalizing the investment, Great Eastern will have a 21.875% stake in Boost Holdings. As noted in the release, Axiata Digital Services will be holding the remaining stake in the company.

Malaysia-based Boost offers a digital wallet and lifestyle app which has more than 7.5 million users and around 170,000 merchant touchpoints (as of June 2020).

The investment will reportedly be used to finance Axiata Digital’s new digital financial services business in Malaysia (and in Asia in general). The expansion includes Boost Holdings’ plans to support and develop its merchants network while onboarding more customers. The funds will also be used to improve Aspirasi’s credit-scoring technology. Aspirasi is an online micro-financing and micro-insurance provider.

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Update: Monva Set to Close Crowdcube Round With More Than £335,000 Raised

Monva, a UK-based intelligent comparison platform for financial products and services, is set to close its latest equity crowdfunding campaign on Crowdcube with more than £335,000 secured from nearly 450 Crowdcube investors. 

As previously reported, Monva is on a mission to “reimagine” how everyone compares and buys products and services by removing the “friction” involved in buying financial services and utility products, using customer’s data for good, and automating mundane tasks. The company will use the data to help with the following:

  • Personalize ongoing offers through your account dashboard and mobile app
  • Intelligently update your financial offers, helping you to be proactive by enabling faster switching using the data you have already provided
  • Automatically complete credit card searches in just 10 seconds

While sharing more details about the company’s products, CEO of Monva, Steve Wiley, recently stated:

“Our smart technology and money saving assistant, Mo, represent the biggest advancement in the industry yet. Our aim is to serve not only those who use comparison today, but also those who have been put off from making important financial decisions and the potential of saving money by using services promoted by gimmicks that do little to support the customer.”

Funds from the Crowdcube round will be used to expand Monva’s products and services. Monva is offering 5.01% in equity at a £3,791,653 pre-money valuation through the campaign. The funding round is set to close on Thursday. 

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