The Monday Roundup: what we are watching this week | August 28th

By Puja Sharma

The Monday Roundup sets the scene for the week’s biggest news stories, industry deals, and upcoming events. For Prime subscribers only.

Currency exchange services

Citi, a specialist in foreign exchange (FX) markets, has made a strategic investment in Rextie, one of Peru’s FinTechs for FX services. As part of the investment, Citi’s FX technology will be integrated into Rextie’s currency exchange services.

Through CitiFX Pulse and Instant Payments, Rextie’s clients will experience a service that stands out for its automation, real-time payments, greater liquidity, and highly competitive rates.

David Gonzalez, Regional Head of Corporate Sales and Solutions for Latin America at Citi, said, “This is a landmark transaction for Citi in Peru, our collaboration with Rextie shows the value-added opportunities that we can provide to FinTechs. We are excited to deliver the power of our global FX network and tech solutions.”

Payments titan Mastercard has formed a central bank digital currency (CBDC) Partner Programme to “foster collaboration” in the space with key players including blockchain technology and payment service providers (PSPs).

Confirmed partners currently include the blockchain and Web3 software company Consensys, the multi-CBDC and tokenised assets solution provider Fluency and blockchain specialists Ripple, among others.

The cohort will be tasked with providing a “greater understanding” of the advantages and disadvantages of CBDCs, and how they can be implemented in a way that is “safe, seamless and useful”.

“As we look ahead toward a digitally driven future, it will be essential that the value held as a CBDC is as easy to use as other forms of money,” said Raj Dhamodharan, head of digital assets and blockchain at Mastercard.

Transform payment credentials

Visa, a digital payments firm has launched the Visa Ready To Launch (VRTL) program, giving FinTech and non-banking entities a seamless experience in issuing payment products. NymCard is the first BaaS player in the Middle East and Pakistan region to join Visa Ready to Launch program and transform payment credentials issuance capabilities for FinTech through a first of its kind plug and play end to end platform in the region.

FinTech and non-banking entities face many challenges when attempting to launch new payment programs. Technological, operational and commercial enablement are all difficult to achieve in the marketplace as the card enablement landscape remains fragmented. This means partnership with numerous players in the ecosystem like Bank Identification Number (BIN) sponsors, issuer processors, Know Your Customer (KYC) and Anti-Money Laundering (AML) partners etc. is required for multi-market penetration.

VRTL addresses these challenges by delivering end-to-end credentials issuance capability through product bundling, program management and scalable tech integration platform via APIs, which are the essential tools developers use to let Visa services run on their own platform. The ‘One Contract’, ‘One Pricing’ & ‘One Integration’ approach makes the entire process much simpler and reduces Go to Market (GTM) timelines, a vital consideration for startups. The partnership will boost overall capacity and ensure that interested fintech and non-banking entities enjoy a quick onboarding experience.

Fibe (formerly EarlySalary), India’s FinTech lender, has announced its partnership with udChalo to offer personal loans to Indian Defence Personnel. Through this tie-up, Fibe will offer its personal loan product, serving personnel via udChalo.

Fibe has launched instant personal loans with exclusive features for defence personnel. Individuals serving in the armed forces can access a higher loan amount of up to Rs. 5 lacs with special interest rate offers. The firms’ personal loans are auto-decisioned through a proprietary AI/ML-based algorithm. Individuals can borrow and repay at their discretion, with 0 pre-closure charges. It also offers all its financial services to new-to-credit people with minimal paperwork.

Akshay Mehrotra, Co-Founder and CEO of Fibe said, “This partnership is our dedication to serving those who dedicate their lives to safeguard the country. We are committed to offering quick and hassle-free financial solutions that cater to the requirements of those in the armed forces. This partnership further solidifies our promise of driving financial inclusion for India.”

What is the buzz

The FinTech as a service market is predicted to reach $995.9 billion by 2032, as reported in a research study by Global Market Insights Inc.

The market growth has been fueled by the increasing demand for seamless, scalable, and cost-effective financial solutions across industries. FaaS providers offer a wide range of services, including payment processing, lending platforms, risk management tools, and compliance solutions. By leveraging FaaS, businesses can focus on their core competencies while benefiting from cutting-edge FinTech innovations.

Moreover, FaaS allows for greater flexibility and agility, enabling businesses to quickly adapt to changing sector dynamics and customer demands. This democratization of FinTech has opened doors for startups and small businesses, leveling the playing field and fostering innovation. As a result, the FaaS market is poised for continued growth, fueled by the ever-increasing need for efficient and customer-centric financial solutions.

The FinTech as a service market from the AI & ML segment is anticipated to show substantial growth through 2032, as these technologies enable FaaS providers to offer advanced solutions such as automated underwriting, fraud detection, personalized recommendations, and risk assessment. AI algorithms can analyze vast amounts of data, including transaction records, market trends, and customer behavior, to derive actionable insights and make informed decisions in real time.