FinTech Weekly - Innovate and Regulate - Issue #451

FinTech AI Hackathon Targets Talent Development for Sustainable Goals - A dedicated FinTech AI Hackathon is set to cultivate talents to tackle Sustainable Development Goals (SDGs). The event focuses on harnessing AI capabilities within the FinTech sector to advance global sustainability objectives.

In an unprecedented move, crypto and fintech companies faced $5.8 billion in fines last year, surpassing penalties on traditional financial institutions. The fines, highlighted by a significant $4.3 billion penalty against Binance, were imposed for failures in customer verifications, anti-money laundering measures, and compliance with financial crime regulations. This surge in penalties reflects heightened regulatory focus on the evolving finance sectors, signaling a shift in enforcement priorities.

Risk Management Benchmarks 2024 report indicates only a quarter of central banks (25.8% of 31 surveyed) revised their cyber security and fintech risk policies last year. Among the 74.2% that didn't, a few plan future updates, highlighting a cautious approach in policy adaptation in this sector.

In collaboration with M-PESA Africa and Sumitomo Corporation, Safaricom introduces the Spark Accelerator program to foster early-stage tech startups. The three-month initiative offers training, mentorship, funding opportunities, and market support, with a primary focus on fintech and content sectors.

Phalanx Impact Partners, focused on environmental and community betterment, invests in Dallas-based FinTech firm CollateralEdge. The innovative solution aids community and regional banks in offering competitive commercial loans to underserved communities without sacrificing credit quality. This strategic investment aligns with Phalanx's commitment to enhancing access to mid-market credit solutions, supporting a new wave of entrepreneurs across various communities.

Mastercard is developing an AI-powered platform to guide and support small business owners. In collaboration with Create Labs, the tool aims to offer virtual mentorship, focusing on inclusivity and professional advice on entrepreneurial topics, leveraging resources from diverse partners including Blavity Media Group and TelevisaUnivision.

Grant Thornton's Rohan Lakhaiyar highlights a new era for fintech: prioritizing governance and profitability over 'vanity business models.' According to Cafral's 'India Finance Report,' nearly half of startups founded between 2016-2021 are fintech, with their lending expected to surpass banks by 2030. This optimistic projection, however, may need reevaluation in the current climate.