Financial Capital Network (FCN) is excited to announce the launch of fincapnet.com, an emergent platform powered by MSCI Risk Analytics that is poised to transform the alternative investment capital raising process. Built for the investment community, FCN connects alternative investment managers with institutional investors, globally.

AJ Brancaccio, FCN's CEO, on the impetus of the company, "We launched FCN to meet the demand from asset owners who are looking for analytic and risk transparency to access quality managers quickly and efficiently. FCN is that solution.''

The FCN platform enables investors to search for quality managers by analyzing three main pillars - Performance Analytics, Risk Metrics, and Media Content. Powered by MSCI, the platform is supported by industry experts in all three disciplines, helping to drive the allocation process. FCN's team of seasoned professionals has a deep and diversified background in capital raising, risk management, alternative investing and the production of creative content. FCN's hybrid model of a technology-powered platform combined with human capital is the future of alternative capital raising. 

Amsterdam-based Fourthline is one of the fastest-growing digital KYC providers and offers KYC-related services that complement the °neo lending and accounts engines.

Integration will enable clients to do a quick and automated watchlist screening on existing customers against PEP and sanction lists. This will detect fraud and de-risk clients’ existing customer portfolio.

Stefan Wittens, Platform Experience and Ecosystem lead at °neo by Five Degrees: “We are proud to work with Fourthline for our cloud-native core banking offering °neo. Given Fourthline's ambition and presence, we foresee great opportunities to jointly serve the market.”

Serkan Ünal, Head of Strategic Partnerships at Fourthline: "We are very excited to be part of Five Degrees' ecosystem, a company with a wealth of experience and a world-class track record in the financial sector. °neo by Five Degrees' cloud-native SaaS platform, combined with Fourthline's bank-grade compliance as a service, will help our respective clients speed up their go-to-market strategies, smoothen their customer onboarding experience and increase their fraud detection rates.”

Five Degrees is a front-runner in delivering next-generation banking technology and has been for over a decade. Founded by bankers in 2010, their clients are leading banks and lenders in Europe and North America with a strong digital ambition. Solutions that can be offered in combination with Fourthline ares very important add-ons to the portfolio to offer banks and lenders a full-fledged solution.

The FCA’s enhanced financial promotions regulations that all regulated institutions must comply with begin to take effect this week, and fintech Delio is warning firms that offer their clients access to alternative assets to ensure that their regulatory processes comply with the new rules in order to avoid the risk of unlimited fines or criminal prosecution.

The Financial Promotion Regime changes come hot on the heels of the Consumer Duty guidance, which focuses on firms improving the outcomes for retail investors. It includes cross-cutting rules that require firms to act in good faith, avoid causing foreseeable harm and enable and support customers to pursue their financial objectives.

Part of the regulator’s move, both with respect to Financial Promotion and Consumer Duty guidance, is designed to help protect customers from being exposed to inappropriate risk. In respect to financial promotions of high risk investments, all firms regulated by the FCA must not only comply with the new regulations but prove they are doing so. If organisations are unable to clearly demonstrate their compliance, they could face regulatory sanctions. Delio has summarised the key points in a briefing note available via their website. 

The latest measures represent a further tightening of regulations around high-risk investments, which includes alternative assets. This trend is being seen across regulatory jurisdictions worldwide as an increasing number of investors turn to private markets to diversify their portfolios and achieve inflation-busting returns.

The FCA’s policy statement PS22/10 – Strengthening our financial promotion rules for high-risk investments and firms approving financial promotions - outlines the changes that firms must adhere to. They fall into three main categories:
 

• The FCA’s classification of high-risk investments;

• The consumer journey into high-risk investments;

• Strengthening the role of firms approving or communicating financial promotions.

These updated regulations fundamentally change the way that firms can promote alternative assets to retail investors and the procedural checks that they must pass before they can complete an investment.

By December 1, 2022, regulated institutions must include a highly visible risk warning when promoting any high-risk investment to an audience that could include retail investors. The exact wording will depend on the status of the firm issuing the promotion and whether the warning is online or offline.

By February 1, 2023, a personalised risk warning must also be included which is accessible the first time a direct offer financial promotion is made to the retail client. Firms will also need to implement several other measures including more robust categorisation of investors, investor appropriateness tests, and a 24-hour cooling-off period during the investment process to prevent clients from making snap decisions.

Gareth Lewis, co-founder and chief executive of Delio, said: “This is the FCA putting our industry on notice that it will not tolerate inappropriately targeted promotions that could put investors’ money at a higher level of risk than they anticipated.

“Firms offering their clients access to private markets need to take action now, as they have immediate regulatory deadlines to meet. This is why institutions using Delio’s technology have already had their governance processes updated to comply with the regulations that go live on December 1. We’re also seeing firms accelerate the digitisation of their regulatory operations so that they can continue to service the rising client demand for alternative assets while meeting their increasingly complex regulatory obligations in a robust, effective and efficient way.”

Delio’s private markets technology has already been updated to enable firms to add risk warnings to financial promotions that are required by December 1. Future product releases will enable users to configure their platform to meet all of the governance standards that firms need to comply with by February 1, 2023.

HELPFUL, the payout management platform, has partnered with Mastercard to enable creator and music platforms to reach their full potential by offering automated, instant, cross-border payouts.

Creator and music platforms experience challenges when managing payouts to their creators. These challenges centre around the ability to pay thousands of creators quickly, across multiple geographies, without the high associated fees.

The HELPFUL platform has redesigned the system from the ground up, to serve the thriving global creator economy. It uses Mastercard Send, which enables secure, near-real-time payment transfers to and from billions of card, bank and digital accounts globally.

Platforms can now pay thousands of creators around the world, with one click, to whichever payment method they choose – digital wallet, account or card – while maintaining full control over payout management and invoicing.

In the last two years, the creator economy has grown exponentially, leading to a massive demand for cross-border global payouts. With a current value of around $104.2 billion (1), the creator and music platforms are navigating one of the most complex economic environments of our time; with management, speed and the high costs of payouts at the forefront of their pain-points.

There have been more than 165 million new creators since 2020 (2) and with content creation tools so easily accessible, more people are becoming creators every day. While most of them would like to pursue it as a full-time job, this simply isn't possible due to not getting paid fast enough, or even equitably for their work. (3) Payout management is impacting the industry's ability to reach its full potential.

Evan Michaels, Co-founder and CEO of HELPFUL said:

“Creator and music platforms that work with HELPFUL to offer automated, instant and secure payments, can capitalise on the opportunities the creator economy offers. By removing the administrative burden of chasing invoices or blocked payments, it allows their operations and finance teams to focus on the growth of the business instead.”

Darren Deal, Senior Vice President, Business Development at Mastercard said:

“The use of our Send technology has the potential to transform the way creative platforms make payouts, with creators and artists able to receive instant payments, however, they choose, so they can concentrate on what they love doing.

“Simple, fast and secure payments can help some of the world’s most exciting new industries to grow, and we’re excited to help these platforms attract and retain top creators by giving them the ability to pay their community quickly, securely and on their terms. This will ultimately allow these platforms to scale and grow their businesses and gain a competitive edge.”

Ecospend, the UK’s leading Open Banking payment provider, today announces its partnership with Telsolutions, the specialist in multi-channel communication programmes for revenue collections. The partnership will allow Telsolutions to offer its clients Open Banking services, helping to protect customers against fraud whilst reducing the cost of transactions.

Telsolutions specialises in collections, working with local councils to support them in gathering council tax arrears, business arrears and parking fines. The collections specialist also works with energy, utility and financial services companies. The partnership with Ecospend will see Pay-by-Bank technology embedded into Telsolution’s collection messages, allowing customers to make an immediate payment directly from their bank. By selecting the link in the message, customers will be able to confirm the payment details and amount through their banking app, enabling the funds to instantly clear into the payee’s bank account.

This partnership will not only provide Telsolution’s clients with the safest method of payment, removing the chance of fraud and chargebacks, but it will also allow them to bypass all fees associated with incumbent payment methods.

Rob Perry-Jones, CEO at Telsolutions, comments:

“Telsolutions Ltd select innovative partners that provide new best-of-breed technology services that are effective out of the box. With Ecospend we have found a partner that is able to provide solid services for our clients in both local government and the private sector. We were able to address client needs for a secure and reliable alternative payment service that fitted perfectly around how customers now want to pay for goods and services using their banking apps.”

James Hickman, CCO at Ecospend comments:

“We are pleased to be working with Telsolutions and providing its customers with our industry-leading payment solutions that offer safer, and cheaper, ways to pay. This partnership is just the latest demonstration of the collections market turning to Open Banking services in the search for new and innovative products but is still just the beginning when it comes to the benefits these solutions can offer. We look forward to partnering with other industry members to make payments smoother, more efficient and simpler for everyone.”

Fino Payments Bank has tied up with Protean eGov Technologies (formerly NSDL e-Governance Infrastructure Limited), a market leader in universal, citizen-centric and population-scale e-governance solutions, to expand PAN card issuance services in India, especially in rural areas.

The association makes Fino the first payments bank to act as PAN Service Agency (PSA) of Protean and facilitate paperless PAN issuance services. The tie-up allows Protean to expand its reach in the interiors of the country through Fino Bank’s  phygital network of over 12.2 lakh merchant points.

At Fino Bank points people can apply for PAN card through Aadhaar-based authentication, without the need to submit or upload any documents.

Further, applicants have the option to choose PAN card either in digital or physical form. The digital version or e-PAN, introduced recently, will be sent within a few hours of applying to the applicant’s email id. It is admissible as actual PAN card. Those opting for physical will receive their PAN cards at their Aadhaar mentioned address within 4-5 working days.

Mr. Rishi Gupta, MD & CEO, Fino Payments Bank said, “The association is a reiteration of our commitment to provide all financial-related services under one roof. Our extensive pan India distribution network is best placed to provide efficient near-doorstep delivery of G2C services. We are already facilitating disbursal of direct benefit transfer payments of various Government schemes and providing last-mile access to banking services. We are pleased to partner with Protean towards their efforts to expand PAN coverage across the country and in the process ensure our objective of making every citizen financially secure is achieved.”

Mr. Suresh Sethi, Managing Director and CEO, Protean eGov Technologies, said, “We are delighted to partner with Fino Payments Bank as part of our strategy to contribute to a financial ecosystem that offers socio-economic benefits across all strata of society. Our partnership will help to advance our shared vision of an inclusive and empowered India. This initiative is aligned with our mission to leave no citizen behind and bring the digitally excluded into the fold of formal financial economy.”

Since inception in 2017 Fino Payments Bank has been transforming the rural banking landscape with its extensive distribution network of over a million points. The convenience offered by the neighbourhood banking outlets has led to increased banking adoption and usage with more than 25 million customers visiting the points every month. With its innovative asset-light model the transactions-focused bank is profitable and as of today the only listed entity in its space.

Protean, which accepts and processes PAN applications on behalf of the Income Tax Department, Government of India, has played a pioneering role in laying down the basic e-governance infrastructure for the nation and providing citizen-centric services to the masses over the course of the last 25 years. Access and inclusion lie at the heart of any e-governance initiative and towards that the company has adopted and established a “Phygital” (Physical+Digital) model to ensure a truly inclusive service delivery paradigm.

As per Ministry of Finance, more than 43.34 crore Permanent Account Numbers (PANs) have been linked with Aadhaar till January 2022. That is around 36% of India’s population has Aadhaar linked PAN card. With more than 131 crore Aadhaar cards issued, there is immense scope for PAN card penetration, especially within those falling in income tax bracket. 

A survey of more than 2,200 people across the United Kingdom and United States has found that Digital Wallet payments, such as Apple Pay, Google Pay or PayPal, is increasing in popularity in both the UK and US, with at least 7 in 10 using the method regularly to pay for online purchases.

The survey, conducted by PCI Pal® (LON: PCIP), the global provider of cloud-based secure payment solutions, in partnership with leading payments organisation, Worldpay and market research brand, Savanta, explores payment method preferences, including; the methods they trust most, and their interest in trying new payment innovations in the future.

Of those opting to use newer digital payment solutions in the past 12-months, 9 out of 10 in both the UK and US agreed that they are satisfied with the overall experience.

Around two-thirds of respondents in the UK (68%) and US (63%) said that paying using digital wallet solutions are appealing because they are faster and provide a simpler check-out process, with almost half of UK shoppers (49%) saying it is easier than inputting payment card numbers associated with more traditional pay by card options. Meanwhile 43% of US respondents said it makes it easier to track purchases they have made using digital wallets.

When asked about more trusted payment methods, there was a difference in perspective amongst US and UK respondents, with the former leaning towards debit and credit cards while card payments and digital wallet was mentioned by UK respondents. Cryptocurrency was mentioned the least with just 2% of US and 1% of UK respondents trusting this method over others.

In terms of other alternative payment methods used for online purchases, Pay By Bank has greater uptake in the UK than US, with just over half of Brits confirming that they have used this method, versus 46% of their counterparts in the US.

When it comes to the future of payments, unsurprisingly perhaps, the younger generation (Gen Z & Millennials) is more willing to try out new payment methods and integrate them into their routine vs. Gen X and Baby Boomers. In fact, 41% of 18–24-year-olds and 48% of 25–40-year-olds in the US are very interested in learning about new options. Although UK respondents were less open overall, Gen Z and Millennial respondents were more willing to explore new options, with 33% of 18–24-year-olds and 38% of 25–40-year-olds reporting that they are very interested.

“Based on the patterns we’re seeing among US and UK consumers, it is evident that while debit and credit cards remain popular choices, there is an upswing in the usage of alternative methods such as digital wallet and pay by bank.  It is therefore important for merchants to offer choice to consumers on how they pay for their goods or services to maintain a positive customer and payment experience,” says PCI Pal’s VP Product, Alessandro Dalla Volta. “PCI Pal is committed to continuing to be a part of the payment solution by offering technology that empowers companies and customers to transact with speed and convenience while safeguarding personal data.”

While there are many factors that impact payment method preferences for individuals in the US and the UK, over half of the survey respondents in both regions identified personal data security as the most important aspect, followed by ease of use.

In fact, an overwhelming percentage of consumers - 90% in the US and 89% in the UK – said that personal information security is the most important factor to take into consideration when choosing a payment method.

“The payments landscape continues to evolve and understanding what consumers are looking for and willing to try is an extremely important aspect of how we move forward,” says Nicole Asling, VP Enterprise Partners, from Worldpay. “We look forward to continuing to partner with companies like PCI Pal to continue to innovate in the space.”

As the payments industry continues to evolve, the most successful payment solutions will be ones that prioritise safety and security of personal data and can show clear outcomes that support security measures. As personal data security and ease of use dominate the most important factors to consumers, the data shows the younger generation excited to try new methods.

As new methods are implemented to serve the consumers’ spending preferences, there is an educational curve that is up to organisations to take consumers through on how to engage with this wide variety of payment methods as they enter the market. This is an opportunity for businesses to highlight their customer experience and security best practices if done properly.

PIMFA, the trade association for wealth management, investment services and the personal investment and financial advice industry, has welcomed the Financial Conduct Authority’s (FCA) proposals for a simplified advice regime to encourage more consumers to seek financial advice and reduce the cost burden of advice for relatively simple financial decisions.

Simon Harrington Head of Public Affairs commented: "We welcome this proposal from the Financial Conduct Authority (FCA). PIMFA has long been an advocate of a simplified advice regime - setting out our own proposals for such a regime in a policy paper published earlier this year - and while we think that there are areas where these proposals could be extended upon, they represent a significant building block in providing individuals with a safe way to save and invest.

“Financial advice is an extremely important tool in helping people to adequately understand the options which are available to them, delivered by an individual who is appropriately qualified and, most importantly, not commercially incentivised to sell them products which are not in their own personal interest.

“These proposals provide consumers with a first step on the ladder towards accumulating wealth in an efficient manner and should build broader individual confidence in the saving and investment market and the financial advice profession more broadly. We look forward to engaging positively with these proposals.”