united-kingdom

Apr 29 2021

Thought Machine, a Cloud Native Tech Provider for Banks, Integrates Fintech Wise’s Money Transfer Platform

Thought Machine, a company that builds Cloud-native technology for banks, has reportedly integrated Wise‘s (formerly doing business as TransferWise) global money transfer platform into its core banking engine, Vault.

The integration should allow Thought Machine‘s banking and Fintech clients the option to use Wise’s fast and affordable global transfers service more quickly and in a more efficient manner. The companies have developed an integration layer that, they explained, lowers the developer effort required for financial institutions to link up with Wise’s API (developer effort reduced as much as 60%).

Wise, which recently rebranded from TransferWise (earlier in 2021), began its business operations as a consumer-facing startup providing an alternative to slower, inefficient, and costly currency transmission services offered by incumbents.

While still working with millions of clients directly, Wise is now more focused on teaming up with banks in order to integrate its API within their platforms.

The latest deal sees Wise’s technology being provided to Thought Machine’s clients, which includes Lloyds Banking Group, Standard Chartered, Atom bank, Monese, Curve, and SEB.

Stuart Gregory, MD, Wise Platform & Wise Business, stated:

“Our integration today makes it quicker and easier for financial institutions and banks to enable faster and cheaper payments for their customers and brings us one step closer to our mission of building money without borders.”

Wise, a top Fintech that may be described as a stealth bank, recently announced that it’s giving away shares in itself. According to the private company, it has gifted 2000 customers a single share of the firm that has emerged as popular global payments and transfer platform.

The UK-based Fintech firm noted that currently there are 2400 employees in 15 offices working at Wise. All of the employees are said to have shares in the company that has indicated in the past it will seek to remain private as long as possible. Of course, if and when, Wise goes public, early shareholders may benefit from their confidence in the company’s mission.

Wise stated:

“We believe our customers should also be shareholders. You have the strongest understanding of the problems we’re trying to solve and our mission, so it’s natural you should have a say in how Wise is built and run. We believe having you represented amongst our shareholders will help us move even faster towards completing our mission. That’s why we’re giving one share in Wise to 2,000 of our active customers. Having a share is a bit like having a slice of the Wise pie — it means you own a bit of Wise. If you’re one of the lucky 2,000, we’ll be in touch with how to claim your share.”

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Apr 25 2021

London Regtech ComplyAdvantage Releases Report Noting that Firms Update Risk Enterprise-Wide Assessments to Account for Digitization Trends

London-based ComplyAdvantage, a company that offers real-time financial crime insight that “puts you in control,” notes that the European Union has introduced a strategy to deal with organized and financial crime and the US recently imposed new sanctions on Russia.

While sharing recent financial crime regulatory highlights, ComplyAdvantage pointed out that the European Commission (EU) recently proposed a new Strategy to deal with Organized Crime (2021-2025) for the European Union (EU).

The ComplyAdvantage team writes in a blog post that amongst the key priorities of the Strategy is “the need for the Union and its member states to take a tougher – and more consistent – line on AML.”

The Regtech firm added:

“The Strategy provides a five-year plan for new legislation and cross-border operational initiatives that will target serious and organized criminal gangs (OCGs). As the Strategy notes, organized crime has long been a problem for the EU, but the recent COVID-19 pandemic has provided new opportunities for criminals to expand their activities into cybercrime, especially online fraud.”

While referencing the 2021 Serious and Organized Crime Threat Assessment (SOCTA) from Europol, the EU’s policing agency, the Strategy notes that that OCGs have tried to sell more than a billion fake or “non-existent” vaccine doses. It also mentioned that criminal groups have made considerable revenues from trafficking arms, drugs, and people.

According to Europol estimates, the illicit proceeds of these serious offenses reached 139 billion euros (appr. $166 billion) back in 2019, which is the equivalent to around 1% of the EU’s GDP, ComplyAdvantage noted in their blog post.

You may check out further details on these issues here.

ComplyAdvantage has also released their State of Financial Crime 2021 Report. The main takeaways from the report are as follows:

Firms should “update their risk enterprise-wide assessments to take account of digitization trends and identify ways to keep employees connected and motivated.”
Firms will need to “ensure that they have robust, flexible, and integrated screening and monitoring systems in place to navigate the complexities of different types of financial crimes.”
Firms should “follow global trends as part of their horizon scanning activities and be prepared to quickly update AML/CFT policies, processes, and procedures to ensure that they remain on the right side of the law.”
In addition to incorporating regulatory changes into AML/CFT programs, firms will need “to ensure that they support their assurance and audit functions in identifying and addressing potential regulatory issues.”
Firms should be “ready to address new threats, engage in cross-industry dialogue and seize opportunities to innovate as industry trends change quickly.”

You can check out the complete report here.

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Apr 24 2021

UK Fintech Freetrade Survey Reveals that Brits Struggled with Financial Literacy Questions on ISAs, Retirement Planning

A recent research study has found that a lack of proper financial education has left consumers across the UK a bit confused with how to manage their funds. The study reveals that UK residents may be dealing with detrimental effects on their confidence, mental well-being and their overall health.

Digital investment app provider Freetrade had prepared the Great British Financial Literacy Test— which includes 18 questions on savings, investment, ISAs and retirement that most people will have to deal with at some point in their lifetime.

Asking 2,000 UK residents to complete the financial literacy test, Freetrade found that nearly 50% of respondents (48%) were unable to answer simple questions regarding personal finance such as what an (individual savings account) ISA stands for, the difference between fixed rates and variable rates, and what annuity providers do at the time when a person gets ready for retirement.

Notably, the Freetrade study reveals that retirement was a key area of personal finance that UK consumers really struggled to understand with around or 4 in 5 or 80% of respondents saying they couldn’t correctly answer this part of the financial literacy test. This particular figure was 81% among people 55 or older (getting ready to approach retirement age).

The average pass rates for questions related to making investments were the second-lowest at 44%. This was followed by savings (34%) and ISAs (32%). The Freetrade survey further revealed that consumers weren’t too confident about aspects of personal finance. Approximately 88% of UK citizens claim they lack confidence when it comes to money, and 32% noted that this also created a negative impact on their mental wellbeing.

Around 90% of survey participants said that they’re not confident when making investments. About 90% of UK residents responding to they sruvey also said they feel like they can’t effectively manage their retirement funds. Around 88% of the UK consumers taking part in the survey noted that they’re not too confident about ISAs.

Dan Lane, Senior Analyst at Freetrade, stated:

“The greatest advantage you can give your investments is time. So it’s concerning that the cohort with the most time on their hands feels so ill-equipped. Whether we realise it or not, investing early on in life could be the difference between reaching our eventual financial goals or missing them entirely. Getting to grips with the basic concepts later in life might just be too late.”

Lane further noted:

“There should be alarm bells ringing about the fact that 90% of Brits lack confidence with their pensions. With advances in medical technology and increased life expectancies we’re likely to live longer in retirement than ever before. But a massive gap in our understanding of how to invest for our third age, or even how to access those investments suitably later on, means we really aren’t prepared for a sizable portion of our lives. Unless we’re thinking about investing for retirement long before we get there, we could end up in the awful position of regretting the simple financial decisions we made 30 years ago.”

Lane added:

“It’s a real sign of the nation’s lack of financial education when a huge portion of the population doesn’t know the name of one of the most common savings products. The frustrating thing about the lack of confidence around ISAs is just how helpful, accessible and easy to use ISAs can be. Chances are, if we’re unsure about the headline facts around ISAs, we’re not using them to help us as much as we could.”

Lane continued:

“Basic concepts like compound interest might be ticked off in the National Curriculum but setting us up to deal with that in the real world takes more than a textbook exercise. These results should be a wake-up call for the nation’s education system to equip young people well enough to put theory into practice.”

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Apr 22 2021

Safenetpay, an E-Money Institution Authorized by UK FCA, Partners with Payments Specialist Banking Circle

One-stop business payment solution provider, Safenetpay, has partnered with payments specialist, Banking Circle, to enhance its international payment offering.

By utilizing Banking Circle’s multi-currency accounts, SEPA and SWIFT transactions solutions and foreign exchange (FX) capabilities, Safenetpay’s business clients will be able to “access additional currencies, competitive FX rates and quick, reliable transactions within SEPA,” according to a release.

Safenetpay is an Electronic Money Institution that has been authorized by the UK’s Financial Conduct Authority (FCA). It aims to offer a “one-stop solution for business payment needs.” Safenetpay provides its customers – mostly UK-based SMEs – “with a single platform that offers multi-currency accounts, competitive FX rates, card payment processing, and merchant accounts.”

Teaming up with Banking Circle will allow Safenetpay to “serve a wider range of customers, whilst providing additional support to existing customers looking to expand into new markets,” according to a release which also noted that “crucially for Safenetpay it can extend its service offering without the usual investment required.”

Sanjar Mavlyanov, CEO and founder of Safenetpay, said that their ambition or goal has always been to offer businesses faster, easier access to banking and payment services locally and internationally. Mavlyanov added that Banking Circle shares that vision and their new partnership should add value to the Safenetpay offering by allowing them to offer a more comprehensive range of options and currencies than they were able to with their last partner.

Mavlyanov added:

“We can now give our customers the benefit of faster, less complex payments as well as access to more products, immediate FX and additional currencies including USD and CHF. The ability to accept payments and hold funds in more currencies is a vital part of our business plans, helping us serve a wider range of small businesses regardless of where they or their customers are based.”

Anders la Cour, Co-founder and CEO at Banking Circle, stated:

“Most Safenetpay customers are SMEs – a group that we know often struggle with the impact of financial exclusion. Payments are traditionally too slow and too expensive, especially across borders, and that can hold small businesses back from achieving their global potential. In collaboration with Banking Circle, Safenetpay can now provide SMEs with access to international markets without the costly delays caused by traditional cross border payments and FX. Instead, businesses can focus on delivering the products and services their customers need.”

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Apr 18 2021

Danial Daychopan: CEO at Plutus Explains how Financial Services Provider Is Bridging Worlds of Fiat and Crypto

We recently connected with Danial Daychopan, CEO and Founder of UK-based Plutus, a financial services provider that aims to bridge the gap between traditional fiat currencies and “upcoming” cryptocurrencies.

Plutus says it offers the “best of both worlds,” which includes centralized fiat and non-custodial crypto, “under one intuitive banking-like app.”

To stay true to the “decentralized” culture of crypto, users may attach their personal crypto wallet to the app and interact with it alongside their fiat current account “without ever revealing the private keys,” the Plutus team notes. A “custom-built” decentralized exchange (PlutusDEX) allows users to “swap between the two asset types without having to trust a 3rd party,” the company explains.

The Plutus app comes with a Plutus Debit Card which users can load with fiat and converted cryptocurrency in order to spend at more than 60 million merchants, “circumventing the need for mass adoption and making crypto payments a reality now!.” With 3% “crypto back built-in,” Plutus claims it’s one of the “most secure” and “rewarding” accounts available. Our conversation with Danial Daychopan is shared below.

Crowdfund Insider: What are the main products and services that you offer at Plutus?

Danial Daychopan: We are essentially looking to bridge the gap between crypto and traditional finance, but in a way that stays true to the cypherpunk culture of cryptocurrencies. We offer traditional banking features such as a UK Sort Code & Account Number, or a European IBAN depending on where you live, and then allow users to connect any personal cryptocurrency wallet they like to this account.

Almost all services out there require users to use a centralized wallet which the company has access to, so I think the ability to connect any wallet of your choice whilst retaining the private keys is of huge significance. Ownership of the private keys is what gives crypto value, and the rest of the market seems to be moving increasingly further away from that. The app also includes a decentralized exchange (DEX) so you can seamlessly convert crypto for fiat and vice versa without having to trust a 3rd party, and a Plutus Visa Debit Card awards users 3% in crypto rewards every time you spend with it.

Crowdfund Insider: Many more people have been using investment apps and other types of Fintech apps following the COVID outbreak.

Have you seen more people sign up to use your products as well? What’s been the response overall from consumers this past year?

Danial Daychopan: We have definitely seen a surge in customer acquisition across the last 12-months and exceeded our EOY target of 25,000 accounts. However, I believe there are a huge number of contributing factors other than COVID; the bull run experienced at the start of 2021 was by far the biggest driving force for us.

Crowdfund Insider: What are the benefits of using all-digital Fintech apps to conduct transactions?

Danial Daychopan: I think the core benefits of all-digital FinTech apps lie beyond just transactions, it’s the whole financial experience. Creating an account in just 2-minutes without having to visit a branch; efficient customer support outside of your traditional 9-5 working hours; a thorough breakdown of your expenses and instant notifications. Traditional banks are overly reliant on outdated tech, and given the size of these corporations, the risks of implementing alternative technologies are remarkably high and extremely costly.

All-digital Fintech apps, on the other hand, are much more adaptable and able to develop innovative features that really cater to what users want – they have a much more customer-centric approach.

Crowdfund Insider: The crypto market recently surpassed the $2 trillion mark. Do you feel we are at the beginning of what could be a much larger ecoystem in the next 5 to 10 years?

What can we expect to see in the coming years in terms of cryptocurrency adoption?

Danial Daychopan: Absolutely, depending on the research study, between 4–10% of the population currently own cryptocurrencies, which means there is a super-majority out there that are yet to adopt crypto.

Whilst there could be several market cycles over the next decade, I am certain the overall trajectory will be increasingly higher adoption. I imagine we will also see further institutional investment into the likes of Bitcoin and Ethereum, followed by the release of a centralized cryptocurrency by the federal reserve bank. Users will have the option of a centralized fiat currency, or the decentralized alternatives such as Bitcoin, and hopefully the smart money will choose the latter.

Alongside that, I am sure the tech will become progressively more user-friendly to accommodate the mass market. The rate of development in this sector is phenomenal.

Crowdfund Insider: What are your plans as a company for 2021 and beyond?

Danial Daychopan: In the immediate term, there will be two major product releases. We are adding Bitcoin to our list of supported cryptocurrencies, meaning you can connect any Bitcoin wallet you like to your Plutus Visa Debit Card which is a world’s first – previously our card was more ETH-focused. We are also launching our own Plutus Wallet. This is non-custodial and follows a similar format to MetaMask, except users can interact with both BTC and ERC-20 tokens from the same browser extension.

Major events to look out for later this year include our launch in both Asia and Latin America which will help rapidly expand the product, and we also aim to attain a full banking license in 2022 which would allow us to offer a much wider range of financial services.

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