The Fintech Fix 23/03/2022

Welcome to The Fintech Fix, where we cover the biggest stories of the financial week! Whether it’s the next groundbreaking trend in cryptocurrency or Blockchain technology, a new partnership about to change the global, economic landscape or an upcoming startup generating a huge following. 

Hot Topics – Kicking of this week’s roundup, we’re heading to Italy for a truly transformative service. By Miles, the largest pay-by-mile car insurance provider in Europe, recently launched Italy’s first pay-by-mile insurance policy. The company has proven its success in the UK already, insuring over 250 million miles for its UK members since launching in 2018. James Blackham, Co Founder and Chief Executive at By Miles noted that “average annual mileage has been on the decline for over a decade in both the UK and Italy, and shows no sign of reversing soon. After converting some of our measurements from miles to kilometres, we’re excited to replicate the success of our UK playbook in another territory.” If all goes well, the company intends on expanding to more EU territories by the end of 2023.

We stay in Italy to cover our second hot topic of this week’s fix, as Banca AideXa, looks to be the first Italian FinTech dedicated exclusively to small and medium-sized enterprises. SMEs have been paid much attention in the last few years, especially after the hardships suffered from the pandemic. This focus from Banca AideXa look to ensure the world of online financing is very efficient for SMEs starting from the assumption that those who are running a business don’t have time to lose. Banca AideXa makes it possible for SMEs to receive a loan proposal in just a few minutes and to have the amount credited to their bank account within 48 hours, without the need to sign or print any paper documents. The company is also looking to develop new credit products with a capital-light approach and launch checking account and value added services to “meet their [entrepreneurs] specific needs with speed, simplicity and efficiency”, according to Federico Sforza, CEO of Banca AideXa; one thing is for sure, the Italian fintech space is extremely exciting!

Zilch, the fastest fintech to reach double unicorn status, continued their impressive journey by announcing it has surpassed 2 million customers. Furthermore, the company highlighted their impressive end to 2021, with record registrations of over 425,000 new customers in December. To put this into perspective, Zilch has reached this milestone quicker than some of the biggest fintech unicorns we know, such as N26 or Revolut. You don’t gain this much of a following without truly appealing to your audience though, as this is exactly what Zilch has done. Philip Belamant, CEO and Co Founder of Zilch, noted the recent surge in the cost of living and how that necessitated a product that helps the individual. “In December 2021 alone, we provided over $5 million in cashback & rewards to our customers, just at a time when it most counts. It’s testament to our growing international team and the unique customer-centric approach that we’ve pioneered. With an imminent US debut coming too, Zilch won’t be slowing down!

Mollie announced the launch of Connect for Platforms, the “most efficient and easiest way” for companies of all sizes to integrate payments, onboard customers and accept and route payments. The platform caters for the specific needs for SaaS and Marketplace businesses with a low-code integration which enables effortless onboarding, improved operational efficiency with a faster time to market. Mollie verifies both the marketplace and sellers with full KYC (Know-Your-Customer), saving time and reducing operational workload. It also offers dedicated local, multilingual support.

Big Partnerships To Watch – We have 3 big partnerships to cover in this section. First, we head to Rabobank who have collaborated with Visa to issue a new, future-proof debit card in the second half of 2022, as they abandon their existing debit card portfolio. The new card offers all sorts of new possibilities, such as allowing customers to pay easily and securely in store and online in Europe and beyond. Rabobank will leverage Visa’s global acceptance at more than 100 million merchants in more than 200 countries and territories around the world. The new card is also sustainable, produced from recycled material, as we all look to make a bigger, greener effort for our planet

Secondly, it is Currencycloud and Moov, a US-based developer platform focused on payment experience, that have caught our attention in this week’s partnerships section. The two organisations have partnered to improve a range of international and domestic payments capabilities for each other’s customers, a very mutual alliance. Both businesses provide customers with embedded finance solutions – financial technology that can be integrated within a customer’s existing business. This setup is ideal for business-to-business payments or business-to-individuals. The embedded finance specialists at Currencycloud and Moov help manage and reduce regulatory, compliance and risk burdens, while the customer focuses on their unique business value, providing the end-user with a seamless money movement experience. Wade Arnold, CEO at Moov commented how “Moov is excited about this partnership because both companies were founded on a similar premise: to make moving money easier. We approach the problem from different angles – Currencycloud tackles international payments, and Moov domestic. Together our services complement each other in a way that our customers are going to benefit from immensely.”

Our last partnership is between Mastercard and HSBC. HSBC is the first issuer to launch Mastercard’s new B2B payment solution in the UK, Mastercard Track Card to Account Transfer. This allows businesses to use their commercial card programme to make payments to any supplier, regardless of whether the supplier accepts card payments. The new solution can help businesses manage cash flow, eliminate manual work and expand payment options as suppliers receive card payments from buyers directly in their bank account. Brian Tomkins, Global Head of Commercial Cards at HSBC, said by “allowing our customers to make early payments while utilising the credit terms on their underlying card account, for extended days to pay, a number of customers are already benefiting from the service and we expect to see continued growth in this space more Mastercard Track ecosystem use-cases to come.”

Funding – Only one fundraising story to report this week, but it is incredible nonetheless. Furthering financial inclusion and providing access to financial services for those who have been previously excluded is imperative, especially in this day and age where so many people’s cash flows have been hampered by disasters and pandemics. Onuu announced it had received $6 million in Seed A funding led by Latinx-led VC Leap Global Partners, and will use this to serve approximately 166 million Americans of modest means who lack access to basic financial products that provide financial security. The company will personalise its life insurance, savings and credit card products, as well as provide an individualised financial literacy experience and digital guide unique to each member. This is such a powerful move and is very personal to Co Founder Felix W. Ortiz III; his grandparents, arrived in the US from Puerto Rico with financial support, “To turn the financial challenges they faced into an opportunity to serve millions of people who are in a similar position is not only an honour, it’s a responsibility.” Truly inspirational.