BFC FinTech Monitor (March 2023)

Tags Artificial Intelligence Cryptocurrency Cybersecurity Digital Banking Events Payments Regulation

Stay up-to-date on all the latest FinTech news and information from around the world in the BFC FinTech Monitor.

Around the World

#Reports and Studies

• According to KPMG’s Pulse of FinTech report, global fintech investments in 2022 were down 30% (to USD 164 billion) year-on-year. At the same time, 2022 was still one of the best years for fintech investments.
• Capgemini analysts are predicting that large tech companies will spend an average of USD 1 billion each to transform cloud networks.
• A new Juniper Research report has found that open banking has revolutionized third-party vendors as technology has helped them expand their offerings beyond banking.
• A survey commissioned by Regula and conducted by Sapio Research has revealed that 9 out of every 10 businesses plans on increasing digital identify spending.

#Innovations

• Microsoft has introduced Microsoft 365 Copilot, a tool that combines  Applications for Work, Microsoft Graph and OpenAI’s GPT-4.
• Morgan Stanley‘s wealth management division will use OpenAI’s GPT-4 to develop ideas and content for financial advisors.
• Fintech startup FintechOS and consulting company PwC will join forces to support the new Infinite Financial Solutions for Banking, a digital banking solution that enables financial institutions to accelerate digital transformation and improve customer experiences in cost-effective ways.
• Open finance provider Brankas has introduced a new feature that allows users to instantly open bank accounts within the ‘built-in finance’ features of third-party apps.
• Mia-FinTech, a technology provider for financial institutions, has launched its new Payment Integration Hub app, which integrates all digital payment methods in one place.

#Cryptocurrencies, Blockchain and Non-Fungible Tokens (NFTs)

• Representatives of the International Monetary Fund have stated that cryptocurrencies have the potential to undermine the global monetary system. At the same time, the Fund’s director is in favor of differentiating and regulating crypto assets rather than prohibiting them.
• US regulators have shut down cryptocurrency bank Signature Bank in an attempt to prevent a financial crisis from developing after the collapse of Silicon Valley Bank.
• Bitcoin will be listed as a separate category on UK tax returns starting in 2025.
• Goldman Sachs has filed a patent for a blockchain solution for interbank settlements.
• After high-profile crypto industry scandals, Visa and Mastercard are postponing the launch of a number of products and services related to cryptocurrencies. At the same time, Santander, HSBC, Deutsche Bank, BankProv, Bridge Bank, Mercury, Multis and Series Financial banks are still ready to work with crypto assets.
• Silvergate, the largest crypto-oriented bank, was on the verge of bankruptcy following the collapse of FTX.
• 97% of payment companies believe that cryptocurrency and blockchain will play a significant role in enabling faster and cheaper payments in the next 3 years.
• Gate Group is planning the launch of a new Visa debit card in Europe that will allow users to convert crypto assets to fiat money.
• Binance, the world’s largest cryptocurrency exchange, has banned citizens and residents of the Russian Federation from buying and selling dollars and euros through its P2P service.
• Crypto exchange Coinbase has launched a new wallet-as-a-service (WaaS) business solution for enterprises that will make it easier to implement products and services in the Web3 landscape.
• ValidEntry has developed an identity verification platform for decentralized finance (DeFi).

#Central Bank Digital Currencies (CBDCs)

• The European Central Bank (ECB) has developed a timetable for the implementation of the digital euro. If recognized as legal tender, merchants in the Eurozone will be required to accept it.
• US Congressman Tom Emmer has introduced a bill to ban the deployment of CBDCs in the US.
• Europe can become a world leader in the development of the internet of things (IoT) by leveraging the potential of stablecoins.
• The Bank for International Settlements (BIS) and regulators in Israel, Norway and Sweden have successfully completed a study on the potential benefits and challenges of using retail CBDCs in international payments.
• Regulators and commercial banks actively have participated in a SWIFT network experiment to link CBDCs to the existing fiat infrastructure.
• China’s WeChat ecosystem has added the digital yuan to its payment services.
• The Reserve Bank of Australia is launching 14 pilot projects to explore potential use cases for a CBDC.
• Offline CBDCs could be a complement to cash, resulting in increased financial inclusion and greater privacy.
• The Central Bank of Brazil has announced the official launch of a local CBDC pilot that will last until February 2024.
• The State Council of China plans to tighten cryptocurrency supervision.
• The Scandinavian branch of the Bank for International Settlement (BIS)’s Innovation Center is inviting technology vendors to submit proposals for the implementation of offline functions for future CBDCs.

#Miscellaneous

• The European Parliament has passed a law on the creation of a digital wallet for every European Union citizen as well as a data protection law that deals with smart contracts.
• Western Union has launched its ‘Send Now, Pay Later’ service for international transfers.
• The European Commission (EC) has recommended analyzing the implications of using technologies such as Metaverse and ChatGPT.
• Fintech company Klarna has introduces late fees for buy-now-pay-later (BNPL) services.
• Open banking platform Yapily and payment technology company Zilch will provide millions of people with improved access to credit with fast repayments at 0% per annum.

Ukraine:

• Ukraine’s Ministry of Digital Transformation is testing the capabilities of ChatGPT for integration into the Diya app.
• Whitepay CEO Gleb Udovichenko explains how to start accepting bitcoin payments in Ukraine.
• Ukrainian WhiteBIT became the first crypto exchange to open authorizations using a Web3 wallet.
• A number of major crypto exchanges have suspended the withdrawal of funds to the cards of Ukrainian banks as this was being exploited by betting and gambling companies to avoid paying taxes. Binance is also imposing restrictions on hryvnia transactions through the fiat gateways Settlepay and Advcash.
• A free crypto-literacy course (Digital Light) was launched on the Diya.
• Yulia Barabash, managing partner at SBSB Fintech Lawyers, speaks about the “chips” offered by Ukrainian neobanks.
• Lending platform Steadypay has attracted investments from the Ukrainian fund N1.
• The National Bank of Ukraine has released a report on the state of the country’s financial sector as of February 2023.

Kazakhstan:

• The Ministry of Digital Development, Innovation and Aerospace will now coordinate and oversee the digital asset sector in Kazakhstan.
• Visa and Freedom Bank have launched Visa B2B Connect, an innovative business payment service.
• Natalya Romenskaya, an advisor to the Chairman of the Board of the Eurasian Bank, has stated that she is holding back the growth of the crypto market in Kazakhstan
• Bolat Sadykulov, managing partner of the DAR group of companies, discusses promising fintech areas.
• Vladimir Dobrynin, founder of Humans, speaks about the prospects of super apps, competitions between ecosystems and the digital revolution in Central Asia.

Kyrgyzstan:

• Biatex, a developer of solutions for the digital market of Kyrgyzstan, has become a gold sponsor of the Blockchain Life 2023 forum, which will be held in Dubai.
• Tap-to-phone services in Kyrgyzstan are already provided by 3 banks.
• Doskredo-Bank has signed an agreement with the company Bukhta regarding electronic money in Kyrgyzstan.

Tajikistan:

• MegaFon has launched an educational project to inform the country’s residents of how to use fintech services.

Uzbekistan:

• A digital financial technology center for foreign companies will be established at IT Park Uzbekistan in Tashkent.
• Farhod Makhmudov, founder and head of the OSON payment system, explains that Uzbekistan needs more digital banks.
• Startup Alif Uzbekistan (‘daughter’ of the Tajik fintech group) has reached the finals of the international competition Entrepreneurship World Cup 2022.
• The instant payment system of the Central Bank of Uzbekistan showed a 1.4 times increase in usage in 2022.
• A project to increase the speed of mobile internet and introduce 5G technology in Uzbekistan has begun.
• Under an initiative scheduled to launch on May 1, 2023, trade outlets in Tashkent will be allowed to issue cash.
• Non-resident legal entities are now allowed to open accounts for the purchase of cryptocurrencies.

Armenia:

• Binance plans to enter the Armenian market.
• The Armenian fintech company Idram has launched an app for teenagers.

Georgia:

• Binance has entered into a partnership agreement with CityPay that will allow users of the payment operator to pay with cryptocurrency in hotels, restaurants and retail outlets.

Moldova:

• The Digital Transformation for Financial Institutions 2023 conference will be held in Chisinau on March 24, 2023.
• Moldovan fintech startup Fagura plans to enter the Romanian market.