Union Credit, a marketplace for credit unions to make firm, one-click credit offers at the point of purchase, today announced a partnership with TransUnion (NYSE: TRU) to better serve the evolving credit needs of consumers.

Union Credit is a fintech startup with a mission to help credit unions acquire new, credit-worthy members from outside their ecosystems. Partnering with TransUnion enables lenders in the Union Credit marketplace to deliver consumers convenient, transparent financing in their everyday retail and financial experiences.

“Union Credit opens the doors for credit unions’ trusted relationships and competitive rates to become available in new marketplaces,” said Sean Flynn, senior director of community financial institutions at TransUnion. “We are excited to be a part of this movement by serving as the data provider of choice for their unique marketplace. Together we are empowering lenders to make more informed decisions, serve consumers more efficiently and effectively and increase financial opportunity for all.”

Data and automation will continue to play a critical role in shaping the future of lending and digital engagement. Leading credit unions recognize this, which is why a number of them have already entered Union Credit’s data-driven marketplace.

Dave Buerger, CEO of Union Credit, said “TransUnion provides the fast, convenient access to data we need to give consumers more control over their financial opportunities. With TransUnion’s innovative trended credit attributes, algorithms, and fraud tools, Union Credit can more intelligently assess borrower creditworthiness, and help participating lenders determine appropriate loan amounts, interest rates and repayment terms, and make more relevant offers to consumers. This robust marketplace will be a game-changing product for all Americans in need of affordable credit.”

Source: Unsplash

The Fintech industry has been high on the list of industries that have recently undergone the digital revolution. As projected by Allied Market Research, global payment processing was valued at $39.57 billion in 2020 and is expected to reach $146.45 billion by 2030. This explosive growth is due to the advent of several technologies and innovations that are shaping the future of payment processing. This article discusses some of these innovations.

Mobile and Digital Payment

Mobile and digital payment has become one of the leading trends in the finance industry. And as customers seek more convenient payment options, the importance of mobile and digital payment has increased. This has revolutionised how we pay for products or services across various platforms and marketplaces. As a result, transactions have become faster and more seamless.  

Furthermore, integrating payment processing with other financial services has paved the way for a better customer experience where the convenience of payment transactions is the order of the day. This convenience is perfectly illustrated by a single platform, which allows customers to manage their bank accounts, transfer funds, and access credits. As a result, Fintech companies can provide comprehensive financial services, further driving mobile and digital payment adoption. 

From an economic perspective, the growing trend of mobile and digital payments is important to watch closely. Fintech enthusiasts can stay up-to-date on the latest trends and developments in this space by following relevant events on the economic calendar. The calendar typically includes a list of important economic indicators, such as GDP, inflation, and events that may affect financial markets. For instance, financial institutions may monitor the release of reports on the growth and adoption of mobile payment platforms or announcements of new partnerships between financial institutions and fintech companies.

Blockchain Technology

Despite being an infant industry, blockchain has already caused significant disruptions in several industries, including Fintech. Decentralisation, the hallmark of blockchain technology, could potentially solve several challenges facing the payment industry. These problems typically include the cost of transactions, security, speed, and the involvement of third parties in a financial transaction. 

As customers' need for instant gratification increases, the payment industry must stay ahead of the game by providing a system with increased payment efficiency and an overall improvement in transaction speed, cost, and a reduction in intermediaries between both ends of a transaction. 

Biometric Authentication

Biometric authentication has become an increasingly popular trend for enhancing the security and convenience of transactions. Examples of biometric authentication methods include fingerprint scanning, facial recognition, and iris scanning. These methods are integrated into mobile wallets, allowing customers to authenticate payments across different platforms with a simple touch or glance. 
 
Source: Pixabay

Biometric authentication can help prevent fraud and provide an added layer of security, as it is much more difficult for someone to replicate or steal biometric data than to steal a password or PIN. As more and more customers are concerned about the security of their financial transactions, biometric authentication will likely continue to be an important trend in the future of payment processing.

While these are just a few examples of the trends shaping the future of payment processing, it's evident that the industry is poised for continued growth and transformation. Therefore, only businesses that adapt to new technologies and customer demands will stand out.

CASHe, India’s leading credit-led, AI-driven financial wellness platform, today released the Financial Mood of the Millennials 2022-23 report, an exclusive and proprietary analysis based on a pool of 540,000 customers.  The report reveals unique and valuable insights into the millennials borrowing, spending, and investing habits.

One of the top findings of the report is that 84% of its customers prefer to take a credit line over personal loans (14%) and BNPL (2%). Satchetised loans of less than Rs 10,000 are preferred by 49% of millennials. The data further indicates a significant credit demand from bureau-based prime (44%) and near-prime (38%) millennials, thereby reinforcing the need for unsecured and hassle-free digital credit products that are easily accessible by all.

Unforeseen medical and monthly expenses are the top two reasons for availing short-term digital credit followed by shopping, home renovation, education, etc. Bangalore leads all the cities in India for credit demand followed by Hyderabad, Pune, Ghaziabad, and Gurgaon.  The data also throws up a surprising insight – West Bengal, Punjab, Gujarat, Assam, and Kerala represent the states from where millennials with the highest bureau scores have availed credit from CASHe. Incidentally, the customers chose UPI (27%) as the second most preferred repayment method after e-NACH (36%).  2022- 23 also saw an uptick of 1% in women borrowers compared to previous years.

The report also sheds interesting light on millennial investment habits using the customer base of its Sqrrl investment platform. It is observed in the report that 68% of millennials seek assistance from financial advisors for making investment decisions. Another 45% trust social media as a prime source to make investment decisions.

The report also states that about 37% of millennials are still somewhat financially dependent on their parents, but a majority of 63% of millennials are financially independent. SIP has emerged as the most popular option for online investors, accounting for 35% of their investing activities, interest in digital gold (18%) is beginning to catch up, followed by tax-saving products (15%), goal-based investments (10%), real-estate (9%), & fixed deposits (5%). There is a growing consciousness among millennials to start saving early for their post-retirement life. More than 33% of millennials stated they believe in saving 20% of their annual income to become financially secure for retirement.

Speaking on the release of the FMOTM, 2022-23 Report, Mr. V. Raman Kumar, Founder Chairman, CASHe, said, “The report offers unrivaled access to a large sample of data covering over 540,000 millennials – the insights provided here are valuable to policymakers, financial institutions, and researchers to better understand the borrowing, spending and saving habits of over 125 million credit-starved and underbanked urban mass of millennials. The India consumption story is defined by the credit and spending habits of this cohort. CASHe is committed to building its entire financial wellness business around catering to this cohort in order to create a financially inclusive Bharat in the coming years.”

Banks, processors and fintech startups have a clear role to play in a sustainable future. Digital payment services reduce paper and can be used to promote financial inclusion. But is going paperless enough? To be recognized as a truly sustainability-oriented organization, a company must embrace a business and operational model that draws on CSR, or corporate social responsibility, and strive towards ESG (environmental, social, and governance) goals. OpenWay shares its own best practices to highlight how banks and fintechs can put the environment in payments, focus on social initiatives, and demonstrate their awareness of the bigger picture.

Find the answers in OpenWay’s latest report:

• Why can payment companies no longer afford to ignore the public’s scrutiny when it comes to CSR and ESG practices?
• What role does company culture play in making sure that sustainability initiatives become part of an organization’s vision for growth?
• What kind of digital payment services are being used to further social and environmental initiatives?
• In what areas could payment companies demonstrate compliance and resilience to increase brand recognition and reputational benefits? 

Link to the report: https://www.openwaygroup.com/new-blog/2023/4/6/esg-for-payment-companies-openway-shares-strategies-for-a-sustainable-future

Token GmbH, the leading open banking platform in Europe, is proud to announce the appointment of Dr. Lea Maria Siering as its new Managing Director (Geschäftsführerin). Lea will be responsible for driving Token GmbH’s growth strategy, leading its Berlin operations, and expanding its presence in the region. 

With more than 15 years of experience in the financial sector, Lea Siering brings a wealth of knowledge and expertise to Token. Previously, Lea was Chief Risk Officer at finleap connect GmbH, a licensed open banking platform provider. Lea was also a partner at the international law firm Taylor Wessing in the regulatory/capital markets department, where she has also advised numerous payment service providers, and has served General Counsel at CrossLend GmbH.

Lea Siering has previously acted as CEO of the 2° Investing Initiative (2DII) - an independent, non-profit think tank that aims to align financial markets and regulations with the goals of the Paris Agreement.

“We are thrilled to have Lea lead our operations in Germany,” commented Todd Clyde, CEO of Token Inc. “Lea’s wealth of knowledge and experience, combined with her deep understanding of open banking and digital transformation, will be tremendous assets as she drives Token GmbH’s next phase of growth.”

Token is authorised as an Account Information Service Provider (“AISP”) and as a Payment Initiation Service Provider (“PISP”) by the FCA in the United Kingdom, and by BaFin in Germany, where its industry-leading tech hub is headquartered in Berlin. 

Dr. Siering commented, “I look forward to once again serving in the role of Managing Director, and am excited to be rejoining an industry I am passionate about: open banking, and in particular, account-to-account payments. Not only are account-to-account payments cheaper, faster, more secure, and more reliable than cards, they are also the payment method with the lowest carbon footprint.”

Analysts predict the German open banking market will undergo significant growth over the coming four years, with the total value of open banking payments anticipated to soar from $4 billion in 2022 to $60 billion by 2027. During the same period, the value of open banking payments are projected to exceed $334 billion globally. 

“I am eager to contribute my energy, passion, and experience to help Token grow in the German and broader European market, and look forward to working with Token’s experienced team to disrupt the payments industry,” Dr. Siering added. “In light of forthcoming PSD3 developments, I believe that open banking is still in its infancy, and I see great potential in the future. Through open banking, so much can and will be done better.”

Token is the leading infrastructure provider enabling a blue-chip portfolio of payment service providers to launch and scale their own account-to-account payment propositions. Token is the only provider offering open banking connectivity for data access and payment initiation with API-based integrations to over 80% of bank accounts in its 16 supported markets. Its customers can plug and play, white-label or use Token’s unique platform to earn greater revenues and higher margins with their own account-to-account payment solutions, while strengthening their own customer loyalty and stickiness.

In addition to serving as Managing Director of Token GmbH, Lea is also a supervisory board member, a member of the Digital Finance Forum at the German Federal Ministry of Finance, and serves on the board of Bitkom in the areas of digital banking and fintech.

Lea is the author of numerous publications related to digitalisation and regulatory matters. She also co-edits the magazine "Recht Digital," and is also a podcast host. Lea advocates for diverse corporate governance, and is committed to advocating for sustainability and for increasing the number of women pursuing careers in finance.

TransPecos Banks, SSB – a Texas banking organization with locations in the TransPecos Region of West Texas and San Antonio – has announced the launch of its extensive credit card offering in partnership with global payments and banking infrastructure provider Episode Six (E6).

As a leader in the fintech sponsorship market, which is increasingly moving beyond deposit accounts and debit cards, TransPecos Banks identified “Card as a Service” (CaaS) as an untapped market that offers customers advantages through more innovative card solutions and rewards options. Through E6’s E6Issuing and E6Wallet products, both built on the Tritium^® platform, TransPecos is well-equipped to offer speed-to-market credit capabilities to its customers with the ability to adjust as demands shift.

“We were looking for a tech stack and bank sponsorship services in a single platform that was fully integrated and ready to launch,” said Dave Kochbeck, chief technology officer of TransPecos Banks. “We found the right partner in Episode Six, as they provide the flexibility to support any card type, including the ability to offer multi-currency transactions, without the need for our customers to build their own mobile app. By breaking free of limitations presented by legacy solutions, we’re now able to pursue any type of business.”

TransPecos is using E6’s Tritium platform as a virtual account ledger to sponsor their customers and as an issuer processor to sponsor card programs. Through E6Issuing specifically, TransPecos has already implemented multiple credit card products, including one that helps new doctors succeed after they graduate medical school.

“We share common values with TransPecos, including developing and bringing to market innovative, digital-first products that are customer-centric,” said John Mitchell, CEO and co-founder of E6. “We’re proud to help this Texas-based institution deliver innovative payments and credit products that meet the needs of its customers – both today and well into the future.”

TransPecos joins a growing list of banks that are choosing E6 as their payments and banking infrastructure partner.

Clausematch, a technology company developing solutions for regulatory compliance, is pleased to announce it has signed an agreement with Várri Consultancy, an independent management consulting boutique specialising in strategy, risk and governance advisory. This is the first collaboration with a business in the Middle East for Clausematch. 

Várri Consultancy, led by Johnny Kollin, proactively advises organisations in times of fundamental societal changes. Clients in sectors such as financial services and renewable energy seek professional guidance from Várri on governance, risk and compliance matters. Award-winning regulatory technology (RegTech) provider Clausematch helps regulated entities operate securely and comply with legal requirements. The company has raised over $20 million in funds and counts several Tier 1 banks in the North American and EMEA regions, including Barclays, as clients. Combining the expertise of Várri with the necessary technology tools has proven a superior response to challenges. 

“Organisations are struggling to make sense of all the uncertainty in the world, and executives find it difficult to stay updated on the constant stream of regulatory changes,” said Johnny Kollin, Founder and Managing Director of Várri Consultancy. “Companies’ policies and procedures meant to address those issues often lack an apparent linkage to the real risks and regulatory environment. As a result, they don’t get the necessary staff buy-in and end up on a shelf. Clausematch allows companies to manage the policy lifecycle, link internal policies with external regulations, and demonstrate compliance to their stakeholders, improving their compliance and risk management efficiency.”

All clients of Várri Consultancy need to adhere to various regulations. Many are rapidly expanding companies looking to gradually increase their organisational risk maturity, while others are looking to apply for financial services permissions. By combining advisory services with modern technology, consultants at Várri can more efficiently transfer and integrate their expertise within the organisations they advise. Furthermore, employing technology in these operations saves time during the implementation, resulting in fewer billable hours, which is important for small and medium corporate clients. It also saves time on the client’s side in the longer run. Therefore, this way of doing business contributes to the return on investment (ROI) of clients of Várri – an approach that aligns well with the productivity of the Clausematch platform.

Claudia Coutinho-De Somma, EMEA Account Exeсutive at Clausematch, said: “We’re delighted to collaborate with Várri Consultancy as they have significant knowledge and experience with regulated entities in the UAE. The approach Várri employs when providing clients with technology solutions is thorough, completely sincere, and objective, all of which are very valuable to us. It also fits Clausematch’s mission of providing highly regulated businesses with best-in-class efficient SaaS compliance solutions.” 

Clausematch has a successful track record as a global RegTech leader. The company collaborates with regulators and recently introduced the digital regulatory knowledge graph in open source, resulting from its collaboration with the Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA). The knowledge graph is a source of digitised rules available for the use of decision automation systems. With the digital regulatory rulebooks, financial institutions will be able to gain a deeper contextual understanding of the current applicable legislation and apply requirements more effectively and efficiently. 

Navan, the all-in-one travel and expense management super app, today announced its agreement to acquire Tripeur, a modern, travel management company serving the $35 billion travel market in India. The agreement marks the fifth acquisition for the Navan Group in two years, following purchases in the UK, Germany, Sweden, and Spain.

“Employees are tech-savvy and require online, mobile-first solutions designed for people, whether located in the U.S., UK, India, or anywhere else,” says Navan CEO and co-founder Ariel Cohen. “Regardless of their geographic location, global companies are no longer willing to compromise on tech. The world has changed.”

Ranked as the world's seventh-largest business travel market with an anticipated annual growth rate of 9%, the historically manual region requires mobile-first technology to cater to the dynamic demands of Indian consumers. Notably, India leads the world in per capita mobile data consumption, making it essential to prioritize mobile-centric solutions.

Tripeur has spearheaded the transformation of the Indian travel market from offline to online. This acquisition enables Navan to immediately solve for local obstacles, such as:

●    Direct connections to local low-cost carriers such as Indigo

●    Access to atypical inventory, including booked taxis, Indian Railways, and chauffeured cards, in addition to automated GST reconciliation for employee expenses.

●    Local support: VIP and lounge assistance at airports and visa facilitation (a more complicated process in India)

Tripeur will enable the Navan team to scale and localize its technology in order to serve our growing list of enterprise customers that demand the Navan experience be available globally.

“There is unprecedented demand for high-quality corporate travel solutions in India," says Thiagarajan Rajagopalan, Tripeur co-founder and CEO. "Navan's scalability, combined with Tripeur's localized technology, inventory, and support, ensures the group will offer unparalleled products and services in the region. We are thrilled to become a part of Navan's success story in India and beyond.”

Founded in 2015 by Thiagarajan Rajagopalan and Sajit Chacko and backed by investors including Pentathlon Ventures and Incubate Fund, Bengaluru-based Tripeur enables businesses to manage their entire travel experience on a single platform. The seamless solution lowers program travel spend and enhances the employee experience, driving program adoption for companies that range from unicorns to enterprises.

Tripeur's proprietary "three-in-a-box" platform complements Navan's all-in-one, people-centric software design, providing an unparalleled solution that enhances traveller experience, maximizes CFO savings, and streamlines travel admin efficiencies — without compromising on the needs of each stakeholder. Specialized GST technology enables the automatic reconciliation of employee purchases, removing the complex burden from finance teams.

With this latest acquisition, the Navan Group has completed five acquisitions across the UK, Germany, Sweden, Spain, and India in the span of two years. The addition of Tripeur bolsters the company’s footprint, with offices now in Amsterdam, Atlanta, Austin, Bengaluru, Berlin, Dallas, Dublin, Gurgaon (Delhi), Gothenburg, Lisbon, London, New York City, Palo Alto, Paris, Salt Lake City, San Francisco, Seattle, Singapore, Sydney, and Tel Aviv.

“Enabling our global enterprise clients at scale includes having a robust, market-relevant solution in India that seamlessly taps into local inventory,” says Navan APAC General Manager, Tim Gibson. “Tripeur’s understanding of the market, in addition to their deep inventory and payments connectivity, further solidifies Navan’s position as a global all-in-one travel, corporate card, and expense management solution.”

OKX, the second-largest crypto exchange by trading volume and a leading Web3 technology company, today announced that its Liquid Marketplace, an on-demand liquidity network tailored for institutional traders, exceeded USD1 billion in trading volume in 2023.

The on-demand OKX Liquid Marketplace provides access to deep institutional liquidity and provides access to a number of crypto trading strategies, including futures spreads, large options block trades or spot OTC, to run at scale. One-click atomic execution of both legs allows traders to easily execute efficient and low-risk spread trading to farm funding rates, generate yield via cash-and-carry trades, and roll expiring futures hedges.

Lennix Lai, Managing Director of Global Institutional at OKX, said: “Institutional clients demand liquidity, superior fee structures, and streamlined execution of advanced trading strategies. We’ve designed our Liquid Marketplace to hit this sweet spot, and the market is responding. Our aim is to become the go-to venue for institutional traders by listening to their needs and leveraging our technical expertise, creativity and product design to build the best platform for their needs.”

OKX Liquid Marketplace overhauls the traditional RFQ process by automating workflows, offering an integrated position builder and enabling anonymous RFQs with two-way quotes. Users can construct custom multi-leg strategies and request quotes on futures spreads and basis trades with the click of a button. The platform also offers leading security underpinned by end-to-end connectivity with OKX's risk management and settlement system.

The growth of the OKX Liquid Marketplace has occurred against the backdrop of OKX’s global expansion, which has seen it reach 50 million global users.