FinTech Weekly - Adapt or Atrophy? - Issue #465

On the latest episode of FinTech Focus TV, Digitec CEO Peer Joost and CRO Stephan Von Massenbach discuss the company's transformation from a hardware startup to a leading fintech player. Celebrating over four decades in business, they detail Digitec's evolution into a software powerhouse with its innovative d3 platform. The discussion also covers the firm's shift towards SaaS-based models and data-driven solutions, highlighting its pivotal role in FX swaps and forward pricing to aid banks in risk management and operational efficiency. Looking ahead, Joost and Massenbach emphasize Digitec's commitment to further automation and sustained growth in the fintech arena.

Venture capital investment in the UK's AI sector rebounded in early 2024, stabilizing after a global slump. The fintech industry led with $1.4 billion in funding, while emerging areas like quantum computing also saw more support. Conversely, crypto funding dropped to a three-year low, raising questions about the sector's long-term viability.Venture capital investment in the UK's AI sector rebounded in early 2024, stabilizing after a global slump. The fintech industry led with $1.4 billion in funding, while emerging areas like quantum computing also saw more support. Conversely, crypto funding dropped to a three-year low, raising questions about the sector's long-term viability.

The digital transformation in banking is being driven by strategic partnerships that enhance customer experiences and streamline operations. An example is the collaboration between Bankjoy, a U.S. provider of digital banking solutions, and Pinwheel, a FinTech company specializing in digital deposit switching. Their partnership significantly simplifies the traditionally cumbersome process of setting up direct deposits. Pinwheel's solution, Pinwheel Prime, offers a seamless platform for users to effortlessly manage their direct deposits, marking a shift towards more efficient financial processes.

Global supply chain disruptions, fueled by factors like the COVID-19 pandemic, freight price volatility, and infrastructure challenges, have pushed businesses to modernize their logistics. Amid these disruptions, a new wave of startups has emerged, focusing on updating the processes that manage the vast global spend on logistics services. Despite innovations, the movement of money across the supply chain continues to pose significant challenges.

Financial technology firm Revolut plans to invest over $100 million in Mexico this year, capitalizing on record remittance flows, according to the company's top local executive in a Reuters interview.

Scott Dawson, Head of Strategic Partnerships at DECTA, has shared insights on the potential implications of the UK diverging from the EU in AI legislation, as the UK rethinks its approach to regulating artificial intelligence.

A new report by EY and Innovate Finance highlights that while UK FinTech boards are crucial for driving growth and innovation, they often lack key skills, experience, and gender diversity. The report, titled "Setting the pace or keeping up – are FinTech boards future-fit?", includes insights from market research, roundtable interviews with over 40 FinTech CEOs and Chairs, and a survey of 38 executive and non-executive directors.