BFC FinTech Monitor (September-October 2024)

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

• Global fintech investments fell to USD 51.9 billion (2,255 deals) in the first half of this year, down from USD 62.3 billion (2,287 deals) in the second half of 2023. »»»
• 10x Banking’s Core Banking without Compromise survey of more than 200 IT bank executives found that 55% believe that limitations in automated banking systems are holding back digital transformation, with 53% also mentioning scaling difficulties due to outdated systems. »»»
• Deloitte experts believe that financial fraud using deepfakes will grow rapidly in the coming year. »»»

#Payments

• BRICS countries are working on creating a SWIFT analogue. »»»
• Banks in Europe, Asia and North America are planning to use the SWIFT network for trial transactions of digital assets and currencies. »»»
• Visa is piloting a new commercial payments ecosystem – Visa Commercial Solutions (VCS) Hub – to provide financial institutions and enterprises with access to solutions, additional features and integrations into several fintech services. »»»
• Mastercard is testing an expanded verification service that allows issuers to verify more detailed personal information about cardholders. Testing is ongoing in select European countries. »»»
• Mastercard and Paysend have launched Libre in Mexico to improve access to financial services. The service allows senders to initiate a transfer using only the recipient’s phone number. A new virtual Mastercard is then generated, making Libre available to those who do not have a bank account. »»»
• The European Payments Initiative (EPI) has launched Wero, an instant payment service that allows users to instantly send and receive money using a phone number or email address. Currently available in France, the service is expected to be available in other EU countries in the near future. »»»

#Artificial Intelligence (AI)

• OpenAI will be among the top 100 global companies if it goes public. As of October 3, 2024, the company was valued at USD 157 billion. »»»
• Visa has signed an agreement to acquire Featurespace, which develops payment protection technologies using real-time AI. »»»
• Bud has introduced an AI-powered banking agent to optimize customers’ personal finances. »»»

#Innovations, Neobanks and Open Banking

• The European Parliament has adopted a package of laws on payments and access to financial data to move beyond open banking to open finance. »»»
• British fintech startup Revolut has applied to the Central Bank of the UAE for licensing as an electronic money financial institution. The neobank is also considering entering the Saudi Arabian market. »»»

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

• CryptoQuant founder and CEO Ki Yoon Joo has stated that bitcoin is likely to be used as a global currency by around 2030. »»»
• A Chainalysis report shows that crypto scammers are increasingly running shorter, more profitable campaigns. »»»
• Hester Peirce, Commissioner of the Securities and Exchange Commission (SEC), believes that the US government has overregulated cryptocurrencies. »»»
• The US Federal Trade Commission (FTC) has reported that bitcoin ATM scams have increased by 1,000% since 2020. »»»
• Binance, the largest crypto exchange in the world, has lost its dominant position in the market. »»»
• According to the FBI, cryptocurrency fraud losses in 2023 reached USD 5.6 billion, up 45% from 2022. »»»
• British fintech startup Revolut has launched a virtual crypto card in the UK. »»» The neobank also plans to launch its own stablecoin »»» and a separate app for trading assets. »»»
• US merchants can now buy, store and sell cryptocurrency directly through their PayPal business accounts. »»»
• TikTok has been recognized as a potential unregulated crypto platform in the UK. »»»
• Cryptocurrency transactions in the UAE will be exempt from VAT starting November 15, 2024. This will also impact transactions made before 2018. »»»
• Robinhood has launched a cryptocurrency transfer service in the EU. »»»
• BBVA, one of the largest Spanish banking companies, will launch a pilot project to create tokenized money using the Visa Tokenized Asset Platform (VTAP). »»»
• Bybit exchange has launched a Sharia-compliant cryptocurrency account. »»»
• Former Coinbase executives have launched their own TrueX exchange, which will focus on stablecoins. »»»
• Mastercard and Mercuryo will issue a euro-denominated crypto debit card. »»»
• American companies Fireblocks and Chainlink Lab have announced a new solution for banks wanting to issue and conduct stablecoin transactions on global financial markets. »»»
• PayPal has conducted the first commercial transaction using its PYUSD stablecoin. »»»
• SWIFT is preparing to include regulated digital assets and currencies. »»»
• The Vietnamese government has adopted the National Strategy for the Application and Development of Blockchain for 2025–2030. »»»

#Central Bank Digital Currencies (CBDCs)

• The central banks of Australia, Canada and Colombia have postponed plans to launch their CBDCs due to the lack of a clear rationale for issuing a retail version. »»»
• According to a study by the Veblen Institute and Positive Money, the EU has not considered the full potential of the digital euro during its development. »»»
• The Atlantic Council thinktank has reported that 134 countries are researching CBDCs, including all G20 countries. Of these 134 countries, 44 are in the active testing stage, with China, the Bahamas and Nigeria having already launched their CBDCs. »»»

#Miscellaneous

• The fintech associations of Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey and Uzbekistan have signed a memorandum of understanding to create the Fintech Alliance of Turkic States. »»»
• Fintech startup BILLZ has attracted USD 500,000 in investments. BILLZ, launched in 2017, develops solutions for retail automation across the Caucasus and Central Asia. »»»
• Career consultant Alena Vladimirskaya discusses the situation with personnel working in banks and fintech companies across Central Asia. »»»

Ukraine:

• The Open Finance & Payments Summit 2024 will be held in Kyiv on November 14, 2024. It will be dedicated to the implementation and operation of open banking in Ukraine as well as the development of payment and other finance innovations. »»»
• Applications for the PaySpace Magazine Awards 2024 are now being accepted. »»»
• Ukraine ranks 6^th on the global cryptoasset adoption index. »»»
• Elena Sosedka, co-founder of Concord Fintech Solutions, believes that the legalization of cryptocurrencies in Ukraine will be a new milestone in the development of the country’s financial system. »»» According to MP Danylo Getmantsev, cryptocurrencies could be legalized in Ukraine as early as the first or second quarter of 2025. »»»
• The National Bank of Ukraine’s BankID system has passed its preliminary check for compliance with EU rules. »»»
• Financial inclusion banks may start to appear in Ukraine. According to a draft law, the purpose of their activities will be to ensure adequate access to financial services for all citizens, with a focus on socially-vulnerable groups and micro-enterprises operating in areas close to combat zones as well as in hard-to-reach and sparsely-populated areas. »»»
• NovaPay has begun issuing business cards for individual entrepreneurs. »»»
• Privatbank has begun issuing PROSTIR payment cards. »»»

Kazakhstan:

• The Digital Kazakhstan International PLUS Forum will be held October 30–31, 2024 at the Rixos Hotel in Almaty. »»»
• The parliament of Kazakhstan is considering a draft law on endowment funds that will provide tax incentives and the creation of a fintech platform to attract funds. »»»
• The Agency for Regulation and Development of the Financial Market has reported that business lending procedures in banks will be digitized. »»»
• Kazakhstani fintech giant Kaspi has acquired about 65% of the shares of the leading Turkish marketplace Hepsiburada. »»» This news comes against the backdrop of Kaspi CEO Mikhail Lomtadze being named ‘Best CEO’ by the Kazakhstan Growth Forum yet again. »»»
• Binur Zhalenov, the Head of Digital Transformation and advisor to the chairman of the National Bank of Kazakhstan presented the concept of a digital regulator during the Central Asia Fintech Summit. He also stated that the launch of a single QR code system for all banks in Kazakhstan has been scheduled for the first half of 2025. »»»
• The Financial Services Regulatory Committee (an independent regulator) has issued a full regulatory license to Bybit, making it the second cryptoexchange in the country (after Binance) to undergo a large-scale regulatory inspection. »»»
• The special Crypton Unit has been created within the Financial Monitoring Agency of Kazakhstan to combat offenses involving digital assets. »»»

Kyrgyzstan:

• The O!Dengi service has canceled the commission for transfers made via QR code. »»»
• Fintech Farm, a British company with Ukrainian roots, has launched the neobank Simbank in Kyrgyzstan. »»»
• The turnover of cryptocurrency transactions in Kyrgyzstan in the first 7 months of 2024 increased by 166% compared to the same period in 2023. »»»

Tajikistan:

• Fintech startup zypl.ai and software developer Vatan ICT have signed a memorandum »»» on the creation of a joint credit bureau in Tajikistan that uses AI technology. zypl.ai is also cooperating with the Uzcard payment system to further introduce AI into the financial sector of Uzbekistan. »»»
• Tajikistan is beginning to use e-wallets more frequently. »»»

Uzbekistan:

• The Fintech & Banking 2024 Forum was held in Tashkent October 3–4, 2024. During the event, BFC’s Managing Director, Michael Kortenbusch, took part in a panel discussion on bridging financial gaps for underserved populations. He later served on a jury that evaluated 10 startups driving innovative solutions in fintech. »»»
• The Central Bank of Uzbekistan is requiring banks to implement a special electronic system for registering and processing customer requests that includes the ability to analyze complaints and identify systemic problems. »»»
• President Mirziyoyev has signed a decree approving the Strategy for the Development of Artificial Intelligence 2030. »»»
• The Central Bank of Uzbekistan is updating the procedure for issuing online loans to better combat fraud. »»»
• Mastercard, in cooperation with ZOOD, will launch the first virtual buy-now-pay-later (BNPL) card for clients in Uzbekistan. »»»
• Humans plans to unite all its fintech services under the Humans Pay brand. »»»

Azerbaijan:

• The VIII International Banking Forum will be held December 3–4, 2024 in Baku. »»»

Armenia:

• A member of the National Assembly has stated that the uncontrolled cashing out of cryptocurrencies in large volumes is creating serious problems and stimulating crime in Armenia. »»»

Georgia:

• Fintech company Keepz, working with the Association of Georgian Banks, has successfully undertaken the first real-time transfer within the framework of open banking in the country. »»»

Moldova:

• Victoriabank is collaborating with Salt Edge to ensure compliance with national legislation and expand open banking services and financial innovations. »»»