There are a growing number of eco-minded customers being drawn to fintech services, as it is easier to measure the green credentials of newer players than those operating in traditional finance. This is according to virtual payment card provider Lanistar.

Jeremy Baber, CEO of Lanistar comments: “The initial attraction of new fintechs was the focus heavily on perks such as shiny holographic cards and powerful in-app or platform-based services. But now, in a bid to attract eco-conscious customers and implement more sustainable industry practices, there are several environmentally focused fintech trends we expect to see come to dominate the industry, and those players that lean into these trends will be the winners in the race to appeal to this new demographic.

“It’s a great time to be involved in the fintech industry. Not only is it an exciting industry, but a socially conscious one too. Customers are now much more discerning when it comes to choosing financial services and are likely to scrutinise the green credentials of providers before making their selection.”

As we see continued growth in green initiatives in the fintech industry, what trends can we expect to see in the near future?

1) Goodbye Plastic

“Given that a lot of fintechs - particularly challenger banks – stood out from the crowd in the early days by offering a shiny new card to their customers, discontinuing them would seem self-damaging. However, as of 2021, there were over 150 million physical bank cards in circulation across the UK. That’s a lot of plastic,” continued Baber.

“We are likely to see a growing number of fintechs ditch the shiny cards in a bid to curb plastic pollution. Now that bank details and transactions are becoming increasingly app-based, this trend will likely gain further momentum in the fintech green revolution.”

2) Reforestation is a Key Contribution

“Deforestation has had an impact on our environment for decades. This is why a growing number of fintechs are partnering with charities such as One Tree Planted to counteract the effects of deforestation and offset the impact of their own carbon emissions.

“Initiatives such as planting trees for new customers, at certain intervals, or planting multiple trees once a business milestone has been reached, will make a forest-sized difference to our environment in the long-run,” added Baber.

3) Look To the Power Of AI

The capabilities of artificial intelligence have been a key talking point in the early months of 2023, and the latest developments in AI can play a crucial role in the success of fintech’s green initiatives.

Baber continued: “The latest developments in AI have meant businesses now have a very powerful tool at their disposal. Harnessing AI to monitor environmental targets will be a trend we can expect to see grow in the coming months and years.”

Rather than setting environmental, social and governance (ESG) targets which then fall to the back of the priority list, AI can now do the leg work for fintechs, to ensure they remain on track. It is now possible to harness AI to monitor fintechs’ data in key areas of environmental performance, such as energy consumption, water waste, carbon footprint and so on.  

This will be a major trend as we see the ESG targets come under much greater scrutiny. At its core though, AI will be a powerful tool to help ensure fintechs remain on target with their goals.

4) Set Clear and Achievable ESG Goals

Baber added: “In fintech, transparency is a major part of what sets us apart from traditional financial institutions. Fintech customers are often more environmentally conscious and want to know just how dedicated their fintech provider is to its own ESG goals.

“There is a lot of value in fintechs publicising their ESG targets to reassure customers that environmental concerns are key to any decision made. Furthermore, prospective customers might look at publicised ESG targets, and seeing that progress is being made could be the final push they need to become a customer.”

5) The Rise Of Green Banking

In the midst of greenwashing rows involving a number of traditional financial institutions, we can expect to see fintech widely adopt the concept of green banking.

The idea of green banking is for institutions to prioritise achieving their climate goals, rather than take a ‘profit above all’ approach to banking. Green banking involves investing in initiatives such as clean energy projects and avoiding fossil fuel financing. 

Baber continued: “Green banking avoids any investment in environmentally damaging markets. More fintechs will likely embrace green banking this year to showcase their green credentials.”

“The record level of green investment we have seen across fintech will form a firm foundation for the industry to embrace more sustainable business practices. If these practices see widespread adoption, other industries will come to look at fintech as the gold standard for green business,” concluded Baber.

6) Green in Crypto Currency

One final sector to note amongst the growth of green finance is crypto-currency.

“We believe crypto-currencies are here to stay but to need to improve their carbon footprint”, Baber said.

It is well known that Bitcoin is energy heavy through crypto mining processes, as are many of its peers. The industry is leaning towards more eco-conscious methodology, sure, but there is still vast room for improvement, for which Baber suggested the following solutions.

“This part of the fintech sector needs to get on-board with delivering plans to deliver carbon offsetting. This could be done either through a percentage or the transaction fees or a carbon levy created within the blockchain”.

No matter the execution, in order to continue to thrive in the green finance age, the crypto economy will need to change. With projects like Ethereum, that change is beginning to be seen, however, it is clear there is still work to be done.

Ashwin Chawwla, Founder & MD, Escrowpay, said, “Moving contingent money across rails and Escrow banking in India was archaic, completely branch driven and manual, which enabled us to come up with a solution that was seamless, digital and agile. By introducing Escrowpay, we are building a trust-based ecosystem which will not only be beneficial to large and listed companies but also will empower emerging businesses in India. We are looking forward to raising the fund and taking the escrow solutions to new levels and across various business sectors.”

BMLL, the leading, independent provider of harmonised, historical Level 3 data and analytics across global equity and futures markets, today announced the expansion of their equities and ETF data coverage to include Asia Exchanges. 

Level 3 data from CBOE Japan, Japannext and Singapore Exchange is now available to BMLL users, providing market participants with the industry’s first global view of market or venue behaviour based on the most granular, Level 3 data available. This complements the existing Tokyo Stock Exchange data already offered within the BMLL product suite.

BMLL users include banks, brokers, asset managers, hedge funds, global exchange groups, academic institutions and regulators; they now have access to the most granular Level 3, T+1 order book data on a global scale, as well as advanced pre and post-trade analytics. 

Adding APAC data coverage benefits buy-side firms who are looking for Level 3 alpha in Asia markets, or sell-side execution firms, who are looking to enhance their product offering by leveraging Level 3 order book data and analytics. Asia exchanges can perform venue comparisons against their peers both locally and globally, to understand their market quality or the performance of liquidity providers. 

Paul Humphrey, CEO of BMLL, said: “The demand for high-quality historic market data has grown exponentially as participants need to understand market or venue behaviour across the US, EMEA and APAC. They need to get the full picture of market quality, liquidity and order dynamics to ultimately make better-informed decisions on the markets they trade and the venues they run.

It is our mission to continue to democratise access to Level 3 data and analytics and widen our data coverage across global jurisdictions. With phase one of our APAC data coverage expansion complete, we are delivering on the strategy we set out following our successful Series B fundraise in October 2022.  Further exchange coverage announcements to follow in due course”. 

Dr Elliot Banks, Chief Product Officer at BMLL, added: “Expanding our data offering to include APAC moves us closer towards our goal of having global coverage to benefit our community of users. Exchanges across APAC, EMEA and the US can carry out venue analytics, compare equities and ETFs, without the need to buy, curate and harmonise data. They can do this across a much larger, global market that now also includes Japan, a fragmented trading environment with multiple venues. What’s more, regulators are now able to not only analyse the European and US markets, but also follow the development of Asia markets, which have different regulatory structures.”

BMLL brings together full-depth, historic Level 3 Data from 65 venues, in 3 asset classes, in 1 harmonised format, capturing more than 7 years of every insert, modify, execute or delete order book message, available at a T+1 basis at tick level granularity.

For every £1 they spend, TrustATrader American Express Cardmembers will receive 1 Membership Rewards® point which can be redeemed against their TrustATrader membership and turned into all kinds of rewards for their business from some of the world’s best-known brands.

TrustATrader’s Chief Executive Officer, Gary McEwen, is delighted with the partnership. “At TrustATrader, our mission is to help our members and their businesses flourish. We believe quality workmanship should be recognised, and by partnering with American Express, our members can be rewarded with a host of exclusive benefits and incentives simply for doing what they do best.”

As well as receiving a wealth of rewards and benefits, new Cardmembers can earn 20,000 bonus points when they spend £3,000 in the first three months, and earn 10,000 extra points whenever they spend £20,000 per quarter. And for a limited time, an enhanced Welcome Bonus is available for new Cardmembers allowing them to earn up to 60,000 Membership Rewards points. Offer ends 30 March 2023.

New Cardmembers will receive 40,000 Membership Rewards points when they are approved and spend £6,000 in the first three months, and another 20,000 Membership Rewards points 14 months later.

Cardmembers can enjoy their American Express Card for free their first year, with an annual fee of just £175 thereafter. Alternatively, TrustATrader members can apply for the Basic Charge Card with no fee, rewards, or other features available.

If they have more than one employee, TrustATrader members can also receive extra cards free of charge, allowing them to track spend, earn extra rewards, and see an overview of company spending via the American Express app or online account. Cardmembers can also set limits on cards and freeze them, making it easy to manage and control employee spending.

Are you ready to start receiving rewards for you and your business? If you’re a TrustATrader member, you can find out more about TrustATrader’s new partnership with American Express or sign up for your Cardmembership here.

Agent IQ, a provider of digital customer engagement solutions specializing in making financial services more personal again, announced today that their Lynq™ platform received a Highly Commended recognition for the “FinTech of the Future – Customer Engagement & Experience” category of the 2023 Banking Tech Awards USA, powered by FinTech Futures.

The Banking Tech Awards USA acknowledges the achievements and successes of the banking and financial technology market in the United States. Agent IQ was selected as a finalist for “FinTech of the Future” award, which is awarded to technology providers that demonstrate genuine solution innovation. This award recognizes organizations that are using emerging technologies, innovative ideas and reimagining processes and user journeys that will define the future of banking and finance.

Agent IQ’s Lynq platform leverages AI-augmentation and personal banker communication to enhance the digital banking experience. Utilizing a customer-first approach to engagement, the Lynq platform enables customers to engage bankers in real-time via their preferred channel. The platform also includes 24/7 AI chatbot support, video communication features and screen-sharing capabilities. The chat platform automatically presents answers to frequently asked questions, while empowering customers to connect with a trusted banker both during office hours or request follow-up outside of office hours.

“Agent IQ is proud to have the Lynq platform recognized for the 2023 Banking Tech Awards USA,” said Slaven Bilac, CEO & Co-Founder, Agent IQ. “We’ve strived to create an AI-augmented digital engagement platform that allows banks and credit unions to enhance the digital banking experience for their customers. As the banking industry continues to undergo a digital transformation, it’s essential for financial institutions to create meaningful customer relationships. Being acknowledged alongside other FinTech platforms that are helping to shape the future of the industry, is an honour for myself and the rest of the Agent IQ team.”

To see the full list of this year’s finalists and for more information about the awards, please visit FinTech Futures.

The Lending Standards Board (LSB) formally welcomes its new Chair, Ken Scott, who took up his role with effect from 1 April 2023. Mr Scott’s extensive experience will support the LSB’s mission of working to ensure fair outcomes for financial services customers.

During his executive career, Mr Scott played a key role in driving the regional growth of HSBC’s commercial bank, with a particular focus on championing customer service. He later led the subprime lending business for Citigroup across the UK and Republic of Ireland.

His other career achievements include leading a successful turnaround as Chief Executive of real estate agents Hamptons International; floating MG Capital, an early fintech player, on the Alternative Investment Market (AIM); and building listed software provider ILX Group into a leading international skills-based eLearning, classroom training and consultancy business. 

Mr Scott’s current appointments include non-executive chair of JLC Distribution, and Senior Independent Trustee at St John’s Foundation, a Bath-based charity supporting vulnerable members of the local Bath & NE Somerset community.

Mr Scott replaces Chris Pond, who has reached the end of his six-year tenure – the maximum term allowed under the LSB’s governance rules.

Emma Lovell, Chief Executive of the LSB, said: “While Chris will be a hard act to follow, we are gratified to have attracted someone of Ken’s calibre to take up the mantle. Ensuring fair outcomes for business and personal customers within financial services is a constant and ever-changing challenge.

I look forward to drawing on Ken’s counsel and expertise as we continue to help firms navigate this landscape. All that is left to do is to thank Chris – a committed and enthusiastic ambassador for the LSB who undoubtedly will be missed. And, to welcome Ken.” 

Ken Scott said: “The financial services regulatory environment is destined to continue changing and adapting. I am very excited to get going and begin contributing officially to the LSB’s vital work. I warmly thank Chris Pond for his assistance in onboarding me over the past few months.” 

Leading payments technology company, Cellulant aims to change how businesses make payments and get paid in Africa by introducing online and offline payment solutions.

The payments market in Africa is experiencing rapid growth, mainly due to advancements in peer-to-peer (P2P) and consumer-to-business (C2B) payment solutions. However, the fragmentation of payment processing continues to pose a significant challenge for businesses seeking to establish a presence in Africa.

Solving intractable problems is not new to Cellulant; founded at the height of Africa's mobile technology boom in 2003, Cellulant is building Africa's most comprehensive payments infrastructure. The company offers a single API payment platform that enables businesses to collect payments online and offline while allowing anyone to pay from their mobile money, local and international cards, or bank. Providing alternative payment methods for African consumers is particularly important on a continent that holds 70% of the world's $1 trillion mobile money market. Card penetration sits at a 3% penetration rate - meaning global companies looking to expand into Africa need a payments partner that can offer alternative payment methods for the local market.

At the recently held 25th Annual Harvard Africa Business Conference in Boston, Cellulant's Group CEO Akshay Grover stated, "Solving the payments challenges in Africa is not just about payments but accelerating global economic growth. Africa's dynamic economies and lack of an established payment infrastructure have resulted in a unique occurrence on the continent. On the one hand, this has prompted the growth of payment platforms and solutions to meet the various needs of businesses and consumers, turning Africa into a centre of innovation in the payments sector. On the other hand, with multiple providers, a wide range of payment methods exists due to the absence of a consistent infrastructure enabling businesses to collect payments seamlessly or easily operate across borders. Therefore, a payments infrastructure in Africa must holistically address the needs of businesses and their consumers by making it easy to collect payments online and offline -regardless of the size of the business."

Cellulant has built, Tingg, a payments platform that provides multinational and international businesses with a one-stop-shop solution for their payment needs across the continent. The payments gateway connects to over 370 payment methods from mobile money operators and banks across the continent to global and regional card switches such as Visa, Mastercard, NIBSS and Verve.

The payments platform has full-stack offline and online payment capabilities. It caters to businesses in various sectors, such as Airlines, Telecoms, E-commerce, Ride-Hailing, Retail and Remittances, enabling these businesses to deliver a frictionless payment experience to their customers. Today, Cellulant powers payments for renowned global companies such as Emirates, Bolt, KLM, Ethiopian Airlines, Glovo, Kenya Airways, and Jumia; and processes billions of dollars yearly.

Cellulant is ISO 27001 (ISMS), ISO 27701 (PIMS), ISO 22301 (BCMS), ISO 20000-1 (Service Management) and PCI-DSS compliant for all its payouts and collections products.

Neo Financial (Neo) is announcing the launch of the Neo Money™ card, expanding on the benefits of the high-interest Neo Money™ account with credit-like rewards when you spend. In 2022, Canadians saw the largest increase in inflation since 1982 resulting in almost half (44%) of Canadians feeling concerned about meeting their financial needs (StatsCan, 2023). With free everyday transactions, no monthly fees, and cashback on spend, the Neo Money™ card gives Canadians a new way to put more in their pockets when they need it the most.

The Neo Money™ card reimagines the way Canadians can spend and earn rewards, making the debit card a thing of the past. For those who prefer to use a debit card but want the rewards that a credit card can offer, the Neo Money™ card unlocks unlimited cashback at more than 10,000 rewards partners for the first time in Canada. Money can easily be accessed using any ATM worldwide and customers can open a Neo Money™ account in less than 3 minutes from the comfort of their home.

With the Neo Money™ account and Neo Money™ card customers can benefit from:

• Unlimited cashback, with an average of 5% cashback at partners, and up to 15% on first-time purchases at more than 10,000 partners across Canada
• Instant access to your balance with no card loading required
• Free everyday transactions and no monthly fees1
• Withdraw from any ATM worldwide
• High interest earnings (2.25%3) on every dollar
• The ability to send and receive unlimited Interac® e-Transfers4
• Added perks to access exclusive offers, services, and boosted cashback
• Personalized spend details with Neo Insights, auto-save setup, and automated bill payments
• Eligibility for CDIC protection up to $100,000 on the Neo Money™ account

“Canadians who have been using debit cards have been left behind when it comes to earning rewards when they spend, and we’re thrilled to put more money into Canadians’ pockets with the launch of our Neo Money™ card,” said Andrew Chau, Co-founder and CEO, Neo Financial. “Not only can you earn high interest on every dollar you save, you can now earn high cashback on every dollar you spend too.”

Neo has built a full suite of products that work seamlessly together to put the power of financial tools in the customers’ hands. Set up Auto-Invest to add money to Neo Invest on a regular basis, add Neo Perks to gain access to exclusive offers, services, and boosted cashback, and track spending in one place. The Neo Money™ card gives customers instant access to their funds while benefitting from the features of the Neo Money™ account.

475 new highly-trained financial crime investigators are being introduced to boost the UK’s response to economic crime, being deployed across enforcement, intelligence and asset recovery at key agencies.

The increased headcount, set out as part of the UK Government’s Economic Crime Plan 2, aims to recover an extra £1 billion in criminal assets over the next decade, with the detection and disruption of money laundering at the forefront of efforts.  

An additional £400 million is being invested into the three-year plan to tackle economic crime, including £200 million from the Economic Crime (Anti-Money Laundering) Levy raised from the private sector, and a £200 million investment from HMG. A central aim of the Plan is to explore reinvesting illicit funds back into combatting these crimes and supporting victims.  

As opportunistic criminals look for new ways to launder their profits, £100 million is also being invested into cutting-edge technology and data analytics to equip law enforcement with the tools needed to stay ahead of trends and identify changing methods of money laundering.  

Dr Henry Balani, Global Head of Industry and Regulatory Affairs for Encompass Corporation, comments: “This commitment to increased collaboration, the pooling of expertise and tangible investment is a crucial step in the efforts to truly tackle financial crime.  

“Such actions are necessary to protect the UK’s reputation, financial structures, and the widespread effects of economic crime on the public. Increased cooperation from the private sector will also play an essential role in the aims set out in the Economic Crime Plan 2 being successful and can, critically, strengthen current supervisory models.  

“Technology is a central aspect of detecting and preventing financial crime, bringing robust and efficient compliance processes through means such as dynamic Know Your Customer (KYC) process automation.  

“By utilising solutions available, financial institutions can significantly boost the effectiveness of compliance, helping to streamline processes, remove bottlenecks, and, ultimately, detect financial crime faster. It’s therefore encouraging, and important, to see the focus on harnessing technology in the Plan - an area I’d hope to see continual emphasis on and investment towards to support the financial services industry.” 

Home Secretary Suella Braverman added: “Economic crime undermines the integrity of our financial system and weakens our national security. Through robust legislation and a strengthened law enforcement response, we’ve come a long way in cracking down on dirty money, but this plan helps us go further. Backed by our partnership with the private sector, we have the resources and expertise we need to identify criminal networks and confiscate the proceeds of their illicit activities.” 

SAP is one of the world's foremost providers of enterprise resource planning (ERP) and business process management technology to help companies facilitate more efficient business workflows and more effective data management processes.

SAP applications help centralize data management by providing a single source of truth for data and better insights for more comprehensive across the entire enterprise. With SAP, companies are able to enhance system and employee productivity, automate workflows, improve operational efficiency, and increase profitability in the long run.

How Are Blockchain and SAP Connected?

SAP provides blockchain technology to connect SAP databases to enterprise blockchain platforms, ultimately improving collaboration and interoperability between systems, modules, applications, and blockchain networks.

Instead of creating a separate SAP-based blockchain network, SAP focuses on providing the tools needed for companies to integrate their current SAP platform with already existing blockchain platforms.

“SAP, along with a few other organizations, is leading the way into ERP-integrated blockchain solutions. Innovation happening right now will change the way we look at our supply chains, food/agriculture safety, pharmaceutical development, banking/finance, as well as other critical systems.” - JP Lexa, Managing Partner, COO, Surety Systems

What is Blockchain Technology?

Blockchain technology is a technological database mechanism that stores data in blocks that are linked together in a chain. It keeps organization chronologically consistent and allows information to be shared more transparently throughout a network of businesses.

Blockchain services help companies prevent unauthorized financial transactions with a decentralized recording system in which each transaction must be approved by both parties before financial information is automatically updated in their respective ledgers. A blockchain network can also be used to create a secure, unalterable ledger to more efficiently and securely track orders, manage payments, and update accounts.

Blockchain platforms offers a few main features to help organizations keep better track of transactions and improve overall data transparency:

●       Immutable shared ledgers for enhanced visibility and cohesion for business transactions

●       Established rules for participant consent to record financial transactions

●       Decentralized networks to maintain balanced system controls

The Big Four Blockchain Networks

There are four main types of blockchain networks: semi-private, private, public, and consortium. Here's a closer look at each different network:

Semi-Private Blockchain

A semi-private blockchain is controlled by a single company, and access to transaction records is only granted to users that meet the established criteria. These blockchains are considered "permissioned" because they require the enablement of specific permissions for users to access certain transaction data or records within the business network. These are most often used in government and business-to-business transaction networks.

Private Blockchain

Private blockchains are also controlled by a single company, but they are completely centralized within the business network. A private blockchain platform controls who has access to specific records, how transactions are submitted, and who can participate in the consensus process. With its centralized nature, private blockchains are often used as test environments rather than actual network production.

Public Blockchain

Public blockchain networks, like Ethereum and Bitcoin, are considered "permissionless", meaning that all transactions within the network are available to the public. With public networks, anyone can access the blockchain, participate in the consensus process, contribute transactions to the record, and remain anonymous in doing so.

Consortium Blockchain

As the most widely-accepted blockchain models, consortium blockchains not only help control consensus processes by outlining pre-selected groups, but they also offer both public and restricted controls for blockchain access. These blockchains are "permissioned", and business users have to be granted access to the network to be able to view, read, or submit transactions.

Key Benefits of Blockchain Solutions

●       Improved data transparency: A blockchain solution improves data transparency by not only limiting data alteration capabilities, but also allowing all participants to view information within the network. Network data is also translated into a hash code made of different numbers and letters that can only be accessed if users have the proper data key. This ensures that data stays in the right hands and is only accessed with proper permissions, like data keys and codes.

●       Better security: Blockchain systems use consensus, cryptography, and decentralization to improve the level of security within a company's software systems. With blockchain, there is no single point of failure and single users cannot change records without proper approval, making it nearly impossible to tamper with digital transactions.

●       Increased operational efficiency: Enterprise blockchain solutions place a greater emphasis on transparent data and better contract management processes to improve the efficiency of business-to-business transactions. Blockchain also helps reduce the risk of operational bottlenecks, further enhancing the speed and efficiency of a company's transactions and recording processes.

●       Faster, more traceable business processes: Because transaction records in blockchains are organized chronologically and the information included in those records cannot be altered, companies can track and trace items through an entire organization, including even the most complex supply chain networks. Blockchain framework also leverages transparent data and distributed ledger technology to speed up auditing processes and provide quicker return on investment (ROI).

Overview of Blockchain in SAP

All the blockchain services developed in SAP are centered around the maintenance of critical business values, including data integrity, blockchain use cases, and more. Here are a few of the main blockchain services offered by SAP:

SAP Leonardo Blockchain

The SAP Cloud Platform blockchain service has the ability to seamlessly integrate with SAP Leonardo, giving SAP users a new way to combine their blockchain with other key technologies, such as the Internet of Things.

The SAP Leonardo blockchain technology offers a front-end for the Hyperledger fabric, which makes both configuring and managing blockchain databases easier for users. Hyperledger fabric is an open-source, multi-project distributed ledger platform that allows users to improve interoperability between cross-industry blockchain technologies and support more efficient business management through quicker transactions and better control.

With SAP Leonardo blockchain applications, enterprises can not only quickly access and leverage Hyperledger fabric functionality, but they can also easily integrate blockchain tools with other SAP cloud services, including SAP Cloud HR and Cloud CRM. The SAP Leonardo blockchain tools are used to connect Hyperledger fabric networks to SAP applications through the SAP Cloud Platform, simplifying interoperability for users.

Blockchain SAP HANA

SAP Cloud Platform blockchain allows users to leverage blockchain technology to extend application functionality and build a strong foundation for adding distributed ledger technology to their pre-existing SAP solutions.

SAP HANA blockchain technology connects SAP HANA databases to any supported enterprise blockchain network by establishing a link between a cloud service within the SAP Cloud Platform and SAP HANA. The establishment of this link between technologies requires two main technological components to function properly:

●       SAP HANA blockchain service: A cloud service deployed with SAP Leonardo blockchain for more advanced cloud connection.

●       SAP HANA blockchain adapter: A Serial Digital Interface (SDI) connector deployed in conjunction with SAP HANA.

These core components work together to communicate with the SAP blockchain service, ensure proper replication of transactions into SAP HANA, and easily integrate SAP technology with other blockchain platforms.