Neobanks – Innovative Words http://innovativewords.com/ Wed, 23 Nov 2022 08:34:11 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://innovativewords.com/wp-content/uploads/2021/04/default.png Neobanks – Innovative Words http://innovativewords.com/ 32 32 Starling Bank cuts customers off from crypto-related payments https://innovativewords.com/starling-bank-cuts-customers-off-from-crypto-related-payments/ Tue, 22 Nov 2022 18:53:25 +0000 https://innovativewords.com/starling-bank-cuts-customers-off-from-crypto-related-payments/ Starling Bank has decided to block all card payments to crypto merchants and restrict other crypto-related outgoing and incoming bank transfers, the bank said in a message to customers on Tuesday. Starling customers have never been able to hold cryptocurrencies with the neobank, but the announcement means they will no longer be able to use […]]]>

Starling Bank has decided to block all card payments to crypto merchants and restrict other crypto-related outgoing and incoming bank transfers, the bank said in a message to customers on Tuesday.

Starling customers have never been able to hold cryptocurrencies with the neobank, but the announcement means they will no longer be able to use a Starling account to withdraw or deposit fiat money in or out of crypto exchanges.

“We are always reviewing our position on financial crime. We consider crypto activity to be high risk,” the bank said in a message to customers, seen by Sifted.

“We have made the decision to prevent all card payments to crypto merchants and to put in place new restrictions on outgoing and incoming transfers.”

The neobank made the decision after the collapse of crypto exchange FTX sent crypto markets skyrocketing. But shared tweets on social media suggest that customers received no advance warning or delay before the decision.

A Starling spokesperson told Sifted: “We have recently tightened restrictions on inbound and outbound card and wire transfer transactions. Today’s message was to make sure customers who have made such transactions in the past, but not recently, are aware of this.

“The innovative technology and thinking behind cryptocurrencies has great potential benefits, however, at present they are high risk and heavily used for criminal purposes and as such we no longer support them. .”

Crypto critics

This is not the first time the neobank has criticized crypto. Starling CEO Anne Boden told Sifted in June that customers were being “ripped off” by people in the industry.

“We spend a lot more time protecting customers from scammers than trying to promote crypto,” she said in an interview at the Money 2020 conference.

Several UK retail banks such as Lloyds TSB, Virgin and Santander have hardened their position on cryptocurrencies recently – but their measures have mainly focused on preventing the purchase of crypto assets.

Starling’s restrictions on two-way transactions will mean that customers likely to cash out their cryptocurrencies following the collapse of FTX will not be able to deposit their funds into their bank accounts. This will likely send customers elsewhere, i.e. to rival neobanks like Revolut and Monzo, where they can still deposit.

Amy O’Brien is a reporter at Sifted. She tweets from @Amy_EOBrien and writes our fintech newsletter You can register here.

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Daylight, the LGBTQ+ neobank, raises funds to launch a subscription plan for family planning • TechCrunch https://innovativewords.com/daylight-the-lgbtq-neobank-raises-funds-to-launch-a-subscription-plan-for-family-planning-techcrunch/ Fri, 18 Nov 2022 11:01:13 +0000 https://innovativewords.com/daylight-the-lgbtq-neobank-raises-funds-to-launch-a-subscription-plan-for-family-planning-techcrunch/ A day after a bill that would codify same-sex marriage in the United States cleared a major hurdle in the Senate, Daylight, a digital bank that markets itself as LGBTQIA+, closed a $15 million Series A round led by Anthemis Group with participation from CMFG Ventures, Kapor Capital, Citi Ventures and Gaingels. Daylight co-founder and […]]]>

A day after a bill that would codify same-sex marriage in the United States cleared a major hurdle in the Senate, Daylight, a digital bank that markets itself as LGBTQIA+, closed a $15 million Series A round led by Anthemis Group with participation from CMFG Ventures, Kapor Capital, Citi Ventures and Gaingels.

Daylight co-founder and CEO Rob Curtis said the new capital will be used to, in his words, “build the financial products and services to help queer people live their best lives” – starting with a subscription plan called Daylight Grow designed to help future gay families with financial planning.

“There are over 30 million LGBTQ+ Americans with a spending power of approximately $1 trillion and yet the community lacks access to the suite of products and services they need to live their best lives. his life,” Curtis told TechCrunch in an email interview. “Daylight was created with one mission: to create financial products and services to help gay people live their best lives.”

Curtis co-launched Daylight with Billie Simmons, a trans woman, and Paul Barnes-Hoggett in early 2020. Prior to launching Daylight, Curtis worked for several organizations supporting LGBTQ+ lifestyle and causes, including Gaydar, a site dating for gay and bisexual men. . He also co-founded Squad Social and Helsa Helps, startups aimed at improving access to mental health for members of the LGBTQ+ community.

Daylight is part of the wave of recent neobanks — banking-like fintech companies that operate online, without physical branch networks — organized around ambitious causes and missions. Greenwood by rapper Killer Mike aims to help black and Latino communities build generational wealth. Majority, launched the same year as Greenwood (2020), seeks to create banking tools and resources for immigrants. Purpose Banking, Aspiration and One all promise never to let deposits fund fossil fuels.

Picture credits: Day light

With the wealth of ethical fintechs, why create a neobank for LGBTQ+ people? According to Curtis, most mainstream banking products simply weren’t designed for US-based gay people. (Pride Bank, a neobank with a similar brand image, is based in Brazil.) For example, Daylight provides debit cards with the names chosen by customers, which are not always the same as those on their card. of identity. It offers members 10% cash back every time they spend with a queer and allied business that Daylight has partnered with. And it offers guided goals for gender-affirming procedures such as top surgery and facial feminization.

Beyond cash management features like a checking account, free ATMs, and the ability for members to get paid two days early, Daylight hosts communities where customers can ask questions about “queer financial literacy,” like family planning, in what Curtis claims is a safe and supportive environment.

“At Daylight, our mission has always been to break down the financial barriers that hold LGBTQ+ people back…In this post-Dobbs world, Daylight’s commitment to supporting gay families has never been more necessary,” said said Curtis, referring to the Supreme Court case. who legalized the ban on abortion in the United States and opened the door to legal challenges to marriage equality.

Certainly, members of the LGBTQ+ community face tax challenges that many cisgender heterosexual adults never encounter. Some suffer the consequences of being kicked out of their homes by parents who do not accept them. Others find themselves forced to undergo HIV/AIDS treatment, hormone therapy and fertility procedures. Most queer people gravitate to expensive metropolitan areas because they are more tolerant and progressive, and many queer people lack a safety net, either because they lack family support or have no no children who can take care of them.

For these and other reasons, LGBTQ+ people often earn less, live in poverty, and have less retirement savings than their cisgender counterparts. The situation for transgender people is particularly dire, with the poverty rate for the transgender community in the United States averaging around 30% — nearly double the rate for cisgender adults — according to a 2019 study from the Williams Institute of the United States. UCLA School of Law. Transgender people are also twice as likely to be unemployed and four times as likely to have a household income below $10,000; the 2021 US federal poverty was $12,880.

The aforementioned Daylight Grow is not a panacea, but targets the main obstacles faced by many gay couples in starting a family. This is an important part of Daylight customers. A recent survey by the Family Equality Council found that nearly two-thirds of LGBTQ millennials – 63% – plan to become first-time parents or expand their family.

Day light

Picture credits: Day light

At the product launch in early 2023, Simmons says Daylight Grow will offer a personalized “Family Building Plan” covering financial, legal and logistical steps tailored to states and individual needs, “Family Planning Concierges” to provide financial advice and logistical support, a “family building marketplace” with vetted family advocate networks and referrals for IVF and surrogacy clinics, and financial education events and fertility in person.

“Starting a family is a major event in the lives of queer people and the challenges we face are increasingly more complex than those faced by non-LGBTQ people,” Simmons told TechCrunch via email. . “The launch of Daylight Grow will help queer people navigate the complex legal and financial challenges of starting a family, making it faster and easier to start a family and unlocking critical intergenerational wealth for our community.”

Daylight Grow will also offer access to family building loans, a potential change for gay customers who have faced discrimination from traditional banks. According to a 2019 study, same-sex borrowers were 73% more likely to be denied a mortgage or approved for a mortgage at a higher than average interest rate.

Daylight plans to offer hundreds of free Grow subscriptions to marginalized, low-income families in states where LGBTQ+ rights are under significant legal attack, Curtis said. Which states — and Grow’s pricing — are still being decided.

Daylight has raised $20 million in capital to date. Curtis would not answer questions about earnings and hiring plans, preferring, at least for now, to focus on the company’s core mission.

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Forget neobanks: In 2022, it’s B2B fintech that investors find ‘sexy’ https://innovativewords.com/forget-neobanks-in-2022-its-b2b-fintech-that-investors-find-sexy/ Tue, 15 Nov 2022 10:58:36 +0000 https://innovativewords.com/forget-neobanks-in-2022-its-b2b-fintech-that-investors-find-sexy/ Shiny coral debit cards and buzzing investment apps stole all the limelight as the European fintech scene came of age around 2015. But this year, it was fintechs supplying their piping that was all the rage. Fintechs selling to businesses (B2B) in Europe have attracted $14.1 billion in investment so far in 2022 across 819 […]]]>

Shiny coral debit cards and buzzing investment apps stole all the limelight as the European fintech scene came of age around 2015.

But this year, it was fintechs supplying their piping that was all the rage.

Fintechs selling to businesses (B2B) in Europe have attracted $14.1 billion in investment so far in 2022 across 819 rounds of funding – more than four times the $3.2 billion raised through 230 B2C tours (business to consumer), according to Dealroom. It has been buoyant despite European fintech funding as a whole falling 25% from a year ago – with the number of consumer fintech rounds at their lowest since 2015.

As macroeconomic headwinds weigh on consumer-facing business models, some VCs believe B2B fintech is more immune to market volatility. Others say the shift to B2B is an inevitable part of the maturation of the European fintech scene.

New B2B subsectors dominated funding announcements. CFO Tools, capital markets fintech, B2B buy now, pay later (BNPL) and payment rails are what investors apparently find sexy now.

But much of B2B’s brilliance has to do with B2C challenges. What are they?

B2C is more exposed to macroeconomic weakness

Compared to B2B, B2C business models are much more vulnerable to rising inflation, interest rates, and macroeconomic swings.

In the short term, European neobanks and lenders benefit from higher rates. But investors expect the overall drop in spending to hurt consumer-oriented business models as demand for loans falls and defaults rise.

Take the BNPL providers. They thrive in a low interest rate environment, but their margins start to shrink when central banks raise rates. This, coupled with drop in consumer spendingled several investors to tell Sifted that they would not be hitting the sector with a barge boom just yet.

Retail investing – and the fintech apps that enabled it – exploded during the pandemic, as people found themselves with more time and money on their hands. But now they are much less likely to part with money, even though savings rates are higher.

“For many savers who have become investors for the first time over the past few years, it is very difficult emotionally to watch their portfolio drop by 20% or more and continue to invest steadily,” says Tara Reeves, CEO of Eurazeo.

“While B2B fintech companies are also exposed to the pressures of the recession, they are less exposed as these B2C companies.

There are many B2C fintechs, so it’s hard to convert new customers

In addition to these macroeconomic factors, the simple fact that there are more and more B2C and B2C fintech offerings every year makes scoring customers even more difficult. Fledgling fintechs must gain the critical mass needed to make their business model work in a world where Revolut clings to customers with more great app deals every week.

“The customer acquisition model for B2C fintech is pretty much broken,” says Pär-Jörgen Pärson, partner at Northzone VC, who argues that big tech companies are stealing marginal consumer value from startups.

“I think there was some hope in the emergence of new fintechs related to Web3, because they could engage and monetize a new audience. But now, with the extreme volatility of this space, they are also facing a tough battle,” he says.

More and more B2C fintechs have also developed a B2B software part of their business to diversify revenue streams, in the face of customer acquisition challenges.

Starling Bank CEO Anne Boden decided it would only offer consumer neobanking in the UK and expand internationally through a banking software offering, Engine by Starling.

“It’s pretty easy to gain market share as a new company and a founder if you have some market momentum,” Boden said at the Web Summit conference in Lisbon. “But when you decide to go international, the chemistry may not work.”

Another of Europe’s fintech giants, Klarna, is also looking for safe B2B ports to shelter in. In March, he launched Klarna Kosma, a new B2B open banking software unit, and last October it in partnership with its B2B counterpart Billie to offer merchants in its network the option to pay for goods later.

Investors think there are more B2B customers

A final reason why investors have fled from B2C BNPL to B2B lately is the sheer size of the addressable market. Berlin-based B2B start-up BNPL Mondu recently said subdued he estimates that the market will reach $200 billion in Europe and the United States over the next two years, while London’s Hokodo has pegged its potential at a colossal price $12 billion.

More and more business transactions are done online, catalyzed by Covidwhich offers a huge advantage for market growth that is not matched by the consumer market.

In Billie and Mondu’s home market of Germany, for example, €200 billion in B2B e-commerce transactions were processed in 2021, compared to around €86.7 billion in B2C e-commerce revenue. , according Statistical.

“The opportunity of market size also goes hand in hand with the fact that many B2B fintechs actually need fewer customers. Each one is much bigger and brings them much more revenue,” says Khalil Hefaf, Chief Financial Officer. investments at Target Global.

“While on the B2C side you have to waste a lot of money on marketing, on the B2B side there’s often a network effect where every customer you onboard has a network of partner companies you can tap into.”

New fintechs need new infrastructure

B2B fintech funding has overtaken B2C in Europe for yearsbut the gap between the growth of the two segments suddenly widened.

Some investors say this is a natural evolution as Europe’s fintech ecosystem grows – and a hangover effect of the record funding amounts versed in all sorts of new fintech business models in 2021.

Magda Posluszny, a fintech investor at Lakestar, divides fintech into two clubs: an application layer (i.e. those consumer applications) and an infrastructure layer (i.e. the software bank that feeds them).

“There’s always a lag while building the infrastructure, but when so many new fintech apps and new business models have emerged, what’s become really apparent is that interacting with banks is really difficult. – they are not designed for these higher volumes.”

This year, two of the most high-profile fintech seed rounds focused on these payment processing issues. The enterprise invoicing software API sequence raised a $19 million seed round led by US venture capital giant Andreessen Horowitz (a16z) in September, and Berlin-based payments infrastructure startup Payrails has also secured backing from a16z for its $6.4 million seed round in March.

And no matter how much or how little people spend, they will still transact money – which Posluszny says means the B2B payments infrastructure will never lose its shine.

“Payments will always be sexy – there is still a huge problem to solve all over Europe around B2B payments, so we will always be looking for the next solution there.”

Amy O’Brien is Sifted’s fintech reporter. She writes Sifted’s fintech newsletter and tweets of @Amy_EOBrien.

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Neobank Market: Size, Booming Trends in the Ahead Year, Competitive Landscape and Opportunities and Forecast to 2022-2028 https://innovativewords.com/neobank-market-size-booming-trends-in-the-ahead-year-competitive-landscape-and-opportunities-and-forecast-to-2022-2028/ Fri, 11 Nov 2022 12:55:07 +0000 https://innovativewords.com/neobank-market-size-booming-trends-in-the-ahead-year-competitive-landscape-and-opportunities-and-forecast-to-2022-2028/ Get 10-30% off select market research reports purchased before December 31. The research report on “neo-banking market” shows the most recent market experiences, the ebb and flow of business situation with upcoming patterns and the breakdown of subjective and quantitative examination. The report gives key information about the available status, size, share and development factors […]]]>

Get 10-30% off select market research reports purchased before December 31.

The research report on “neo-banking market” shows the most recent market experiences, the ebb and flow of business situation with upcoming patterns and the breakdown of subjective and quantitative examination. The report gives key information about the available status, size, share and development factors of the Neobanking industry. The concentrate further provides data on past and current market patterns and advancements, drivers, limitations, innovations, and changes in the design of market capital. The enhancements of each geologic location are graphed using legitimate and verifiable information to help gauge in detail the future direction of the market worldwide by service, segmenting the market into mobile banking, payments, data transfers money, savings account, loans. The Application segment is separated into Business, Personal Other. The scope of the report covers Neobanking type which includes savings account, business account. Finally, the Neobanking market is segmented by geography into North America, Europe, Asia-Pacific (APAC) and ROW (Rest of World) and further sub-segmented by country.

Get a sample PDF of the report @ https://marketdigits.com/neobanking-market/sample

Market analysis and overview

Neobanking market size is estimated to grow from USD Billion in 2021 to USD Billion by 2028, growing at a CAGR of % during the forecast period 2022 to 2028.

Main key players in the neo-banking market:

Key Players/Manufacturers:

Market scope and market size

The main deliverables of this report are market statistics with detailed classifications and breakdowns by revenue. Neobanking Market revenue split by type, application, and region. Players, stakeholders, and other participants in the global Neobanking market will be able to gain a strong position as this report will surely benefit their marketing strategies. The market analysis focuses on revenue and forecast by region/country and by application in terms of revenue and forecast for the period 2016-2027. Detailed competitive landscape with identification of key players with respect to each type of market, in-depth market share analysis with individual revenues, market shares and company rankings.

Report further studies market development status and future of Neobanking Market trend across the globe. Also, it splits Neobanking Market segmentation by Drugs, Route of Administration, Distribution Channel, End-Users, Application, and Region for in-depth research and reveals market profile and prospects.

Segmentation of the neobank market:

The main classifications are as follows:

By department

  • Mobile banking
  • Payments
  • Money transfer
  • Savings account
  • Loans

By app cloud

  • Companies
  • Personal Other

By type

  • Savings account
  • Company account

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Global Regional Neobank Market Analysis:

North America: (USA, Canada, Europe, Germany, France, UK, Italy, Russia)

Asia Pacific: (China, Japan, South Korea, Australia, Taiwan, Indonesia, Thailand, Malaysia)

Latin America: (Mexico, Brazil, Argentina, Colombia)

Middle East and Africa: (Turkey, Saudi Arabia, United Arab Emirates)

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The research team offers detailed studies which will analyze the global Neobank market based on type, application, and regional market shares. The report covers global regions including North America: USA, Canada, Europe: Germany, France, UK, Italy, Russia, Asia-Pacific: China, Japan, South, India, Australia, China, Indonesia, Thailand, Malaysia, Latin America. . Americas: Mexico, Brazil, Argentina, Colombia, Middle East and Africa: Turkey, Saudi Arabia, United Arab Emirates and South Korea. We also split the report into industry types and application

This will give the client an in-depth understanding of the regional market share analysis of the global market, which will help him to formulate his own market entry strategy.

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The coronavirus pandemic and the Russian invasion of Ukraine have greatly affected the lives of individuals across the world. All other businesses and all markets have to fight on both fronts – welfare and monetary – and have to weather this forced downturn. With the financial crisis costing billions of dollars, there is a very broad assumption that the payback period will last up to a year from now.

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MarketDigits is a leading business research and advisory firm that helps clients tap into new and emerging revenue opportunities and areas, thereby assisting them in operational and strategic decision-making. At MarketDigits, we believe that the market is a small place and an interface between supplier and consumer, so our focus remains primarily on business research that includes the entire value chain and not just markets.

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Innovation offers neobanks a key to growth https://innovativewords.com/innovation-offers-neobanks-a-key-to-growth/ Wed, 09 Nov 2022 21:41:23 +0000 https://innovativewords.com/innovation-offers-neobanks-a-key-to-growth/ Neobanks are seen by some as the future of banking. According to the last Neobanking Market report, growth is expected to reach a compound annual rate exceeding 50% through 2030. That’s an impressive projection, but like all financial institutions, economic uncertainty and a looming recession threaten this outlook. As neobanks struggle to gain traction, they […]]]>

Neobanks are seen by some as the future of banking. According to the last Neobanking Market report, growth is expected to reach a compound annual rate exceeding 50% through 2030. That’s an impressive projection, but like all financial institutions, economic uncertainty and a looming recession threaten this outlook.

As neobanks struggle to gain traction, they face higher operating costs, rising interest rates, and competition from traditional banks and other innovators. Simple, considered the first neobank in the United States, closed its doors last winter amid growing pressures and Varo, among others, recently announced layoffs. Striving to achieve profitability is proving elusive for most neobanks: a recent report found that of the approximately 400 neobanks worldwide, less than 20 operate in the dark.

To secure their future, these fintech challengers need effective ways to cut costs and conserve cash. They also need competitive advantages to counter traditional banks, which have embraced digital transformation. Technological innovation, including the adoption of powerful technologies such as artificial intelligence (AI), machine learning (ML) and application programming interfaces (APIs), can provide significant benefits that help them not only to survive, but also to move forward.

Here is an overview of the key benefits these technologies can offer neobanks and their customers as they weather these challenging times and seek to establish a foothold in the future:

Save time and money with APIs: APIs are one of the most important technologies available – without them, tools like AI cannot be used to their full potential.

By connecting to different software, APIs unlock data and enable sharing of information and functionality. For example, APIs can enable the efficient sending and receiving of payment and invoicing data between accounts payable, accounting, and enterprise resource planning (ERP) software without user intervention.

This seamless communication also allows neobank financial systems to connect and share data much faster and at lower cost. Instead of spending months or more building financial apps, neo-banks can build them in days or even hours – saving time that quickly translates into cost savings.

Competitive advantages with AI: AI was once a tool used only by the biggest companies, but cloud-based software solutions have removed cost barriers and made the technology more affordable for smaller players. Neobanks can leverage AI in multiple business applications to transform internal and external processes to capture competitive advantages.

Perhaps most importantly, the technology improves ongoing compliance and real-time protection against fraud and money laundering, potentially saving banks costly fees and reputational damage. It also dramatically speeds up the processing of invoices and payments through more secure electronic payment methods.

AI can also replace time-consuming manual processes and free up back-office employees for more strategic work. This could help neobanks avoid the staff cuts that other institutions have resorted to to cut costs. Elevating the roles of back-office staff is more likely to improve job satisfaction, which could help retention efforts.

According to Bankrate, there are around 23 million neobank customers today and that number is expected to reach 50 million by 2025. To ensure customer loyalty and satisfaction, neobanks can leverage AI-powered chatbots to provide more personalized and convenient service to customers.

Machine learning for future-proof operations: Neobanks have created a viable alternative to traditional banking, but a myriad of factors, including tough economic times and intense competition, threaten their growth. The need exists for the leaders of neobanks to protect their cash and capitalize on the means to sustain their operations. Ensuring survival means creating new efficiencies to reduce costs and better analyze data to monitor business health and guide future decisions.

Machine learning, a popular type of data-centric AI, allows neobanks to analyze historical financial data to detect patterns of behavior in supplier payments and invoices and predict the likelihood of those behaviors continuing. It can also help forecast market or vendor payment risks, predict future spending needs, and provide loan assessments.

Continuous investment in innovation – namely AI, ML and APIs – can play an important role in business continuity and strategic planning. This can offer neobanks a clearer path to success amid the challenges that currently threaten their survival.

Boyce Adams is Senior Vice President of Growth at AvidXchange.

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Tech layoffs reflect deteriorating outlook https://innovativewords.com/tech-layoffs-reflect-deteriorating-outlook/ Sun, 06 Nov 2022 13:02:41 +0000 https://innovativewords.com/tech-layoffs-reflect-deteriorating-outlook/ Layoffs at ride-sharing company Lyft Inc. and payment company Stripe Inc., as well as a pause in hiring at Amazon.com Inc., reflect a bleaker outlook for tech. So far, enterprise technology has been a relative bright spot in the sector. This may continue, but with an increasing focus on businesses and services that are considered […]]]>

Layoffs at ride-sharing company Lyft Inc. and payment company Stripe Inc., as well as a pause in hiring at Amazon.com Inc., reflect a bleaker outlook for tech.

So far, enterprise technology has been a relative bright spot in the sector. This may continue, but with an increasing focus on businesses and services that are considered essential to running a business and can be monetized immediately.

The business case for adopting cloud computing and automation is fundamentally sound, said Sunil Kanchi, who is chief information officer and chief investment officer of UST, a private company in Aliso Viejo, in California, which helps customers with digital transformation. UST operates internationally and has over 30,000 employees.

“The changes we will see in the future will be based solely on the economic drivers of the downturn in the overall economy,” Kanchi said.

He expects customers to continue to invest in areas such as automation and so-called low-code, no-code software platforms that reduce the need for human programmers, which are in short supply.

The metaverse, NFTs and certain aspects of cryptocurrency, or technologies that have no immediate monetary value, will continue to fall out of favor, Kanchi said.

“The job cuts are only the beginning and the tip of the spear. Larger, more thoughtful companies are beginning to realize that capital is fleeing from stock market investments to ‘safer’ assets like bonds or treasury bills as interest rates rise,” said investor Wesley Chan. and a former chief technology officer at Google who developed early Google projects, including Google Analytics, Google Voice and Google Ventures, and is a co-founder of startup investor FPV Ventures.

“The downturn has sort of started, but it hasn’t bottomed out and will get worse very quickly, probably in the middle of next year,” Chan said. He expects a drop in demand for fringe or luxury areas like crypto, grocery and food delivery services, “neobanks” and high-end travel and beauty.

Demand for essential business services that resemble utilities will fare better. The outlook for drug discovery and life sciences, cybersecurity, and companies that help customers fix costly inefficiencies or unlock inventory the way Uber Technologies Inc. or Airbnb Inc. are also promising, according to Chan. He predicts that “the new Google or Uber of 2023 and 2024 will emerge from this downturn.”

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With Savings Account Rates Rising, Should You Switch to Online Banking? https://innovativewords.com/with-savings-account-rates-rising-should-you-switch-to-online-banking/ Fri, 04 Nov 2022 15:30:02 +0000 https://innovativewords.com/with-savings-account-rates-rising-should-you-switch-to-online-banking/ Following the The latest rate hike from the Federal Reserve, savings account rates are starting to rise. With many high-yield savings accounts offering rates as high as 2.5% to 3% – and others well above – it might be time to switch from traditional banks. Although earning 3% on your savings account won’t offset the […]]]>

Following the The latest rate hike from the Federal Reserve, savings account rates are starting to rise. With many high-yield savings accounts offering rates as high as 2.5% to 3% – and others well above – it might be time to switch from traditional banks.

Silver Tips Logo

Although earning 3% on your savings account won’t offset the cost of inflation, it can help you grow your savings faster than traditional savings accounts, which are closer to 0.01% . With lower operating and overhead costs, online banks (digital-only banks) can offer customers lower fees and above-average savings returns. And many of these banks offer innovative features like early access to your paycheck.

If you can’t remember the last time you set foot in your bank, it might be financially beneficial to switch to an online bank with no fees and better interest rates. But before you take the plunge, think about these five questions first.

1. Switch to a real bank?

While many neobanks offer savings and checking accounts, debit cards and other standard banking features, they are not always nationally chartered banks – with the exception of Varo – with all the appropriate licenses. . Instead, they are “fintech companies” that offer a more limited range of banking-like services.

This is a potential red flag since neobanks are not regulated in the same way as licensed banks. For consumers, it is particularly important to know whether there is a real bank or banking partner that supports the neobank. At a minimum, you want to make sure it provides FDIC insurance, which means the federal government will insure your individual account for up to $250,000 in the event the neobank goes bankrupt. You can usually find the mention “We are not a bank”, as well as one of the neobank’s legal banking partners on the “About us” pages.

2. What will you do in the event of a digital glitch?

Chime has recently made headlines due to its relatively high rate of customer complaints. Researchers found that Chime had experienced outages in the past that would have left customers financially stranded, according to a ProPublica report in July. It has also received 920 complaints filed with the Consumer Protection Bureau since April 2020, all related to “closed accounts”. At the time, Chime had approximately 12 million customers.

In contrast, Wells Fargo, which has had its share of scandalsreceived only one-third the number of complaints about similar “closed account” issues, but six times as many customers.

No matter where we park our money, we have to be prepared for things to go wrong. This makes it all the more important that your financial institution has 24-hour customer service and, ideally, workarounds to help you access your money when you need it. You can find a neobank associated with a specific ATM network. But in general, neobanks are not always as equipped as traditional banks to respond to these issues. If my bank’s app is down, for example, and I need to transfer money, I can always go to any ATM or send a check.

It can be helpful to create your own backup plan, such as storing emergency money in another bank account in case of unexpected disruptions.

“If moving to a non-brick-and-mortar business makes you anxious, only move some of your money if you want to check it out,” says Erin Lowry, author of The Broke Millennial.

3. How will you contact customer support in the event of a problem?

Although neobanks do not have branches, they may have customer support powered by real people. This is an important characteristic and to be favored in your search for a well-suited neobank. In the event of a technical problem or breakdown, you want to know that you can get help as soon as possible. Before signing up, take customer service for a test drive, to make sure help with a live person is easy to access, Lowry says.

4. Does online banking offer all the financial services you need?

Does a neobank offer loans, credit cards, investment accounts, and other services? It’s important to think about your long-term financial goals and how this digital-only financial account may or may not support you on your journey.

A more established bank with a robust digital branch can serve you better in the long run, especially if it offers a more comprehensive range of products and services like mortgages and retirement accounts.

5. Should I choose between a traditional bank and an online bank?

I’m particularly happy with my bank’s digital experience, which for years has allowed me to deposit checks through the mobile app and send money seamlessly and securely to others. These are features that my bank was among the first to deliver, almost 10 years ago, so it’s had time to iron out some bugs and wonky user experience issues.

And while I know many may not have visited a bank branch since pre-pandemic times, my bank’s local presence brings me comfort. I walked in to get a certified check for a car purchase at the time. And I felt better about depositing a big check in person last year after we sold our apartment.

If you’re torn between a bank you like and interest rates you’d like to have, that’s not a decision to make. You can keep the same primary bank account and divert your savings to a high-yield digital bank account. This way you still have access to the convenient features of your main bank, while maintaining a separate savings account that earns you more money.

I see no clear and present danger in opening an account with a neobank – as long as your money is FDIC insured and you are aware of its limitations. If it offers live customer support, even better. But having a backup bank with an ATM and a local branch, a bank where you keep your savings on rainy days, might not be a bad way to further guarantee liquidity and access to cash in case technological disruptions.

The reality is that many of us, if we are not already, will become polybankers. We will have accounts spread across various financial institutions, as the likelihood of one bank (or neobank) optimally meeting all of our banking needs is unlikely.

My mortgage is with a different bank where I found the best interest rate. I also have several credit cards from different issuers. So, just like with retirement, it often pays to take a diversified approach to banking to get the best returns.

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Chqbook launches digital checking account for small business owners https://innovativewords.com/chqbook-launches-digital-checking-account-for-small-business-owners/ Wed, 02 Nov 2022 00:01:45 +0000 https://innovativewords.com/chqbook-launches-digital-checking-account-for-small-business-owners/ Chqbook, India’s first neobank for small business owners, announced the launch of a one-of-a-kind digital checking account today at the Singapore Fintech Festival. Small business owners like kiranas, chemists and other business owners can open a checking account instantly on the Chqbook app from their smartphone and in a language they are comfortable with. The […]]]>

Chqbook, India’s first neobank for small business owners, announced the launch of a one-of-a-kind digital checking account today at the Singapore Fintech Festival.

Small business owners like kiranas, chemists and other business owners can open a checking account instantly on the Chqbook app from their smartphone and in a language they are comfortable with. The current account is available in 8 languages, which makes it more accessible and easy to understand.

The brand new digital and instant checking account service is a timely innovation for over 63 million Indian small businesses. It furthers Chqbook’s vision for financial inclusion by enabling small business owners to access financial services – checking accounts, loans and insurance, on their smartphones through the paperless Chqbook app, to manage and grow their business. .

Majority of small business owners transact through savings accounts resulting in freezing of accounts due to multiple credits or current accounts of cooperative banks giving them absolutely no digital interface. A bank transaction usually means a visit to a branch, which is time consuming, tedious and involves paperwork. Apart from that, it takes between 7 and 20 days to open a current account in a bank branch.

A checking account is a basic facility required by any business owner to document and track expenses, organize cash flow, and allow for easier tax liability calculations. A business current account therefore allows deposits, withdrawals and accepts UPI transactions. Chqbook’s newly launched checking account solves the traditional problems of long waiting times and allows a small business owner to open a checking account in minutes.

The checking account feature on the Chqbook app digitizes the entire account opening process. Any compatible business owner with an Android smartphone can open a checking account instantly. The digital current account offers full functionality including downloading account statements to reconcile transactions, adding and managing payees, providing transaction history, ensuring easy fund transfers and security enhanced biometrics. Customers can also make cash deposits easily. Chqbook is further increasing the number of cash deposit points to over 1 Lakh over the next few months, reducing the time needed to travel to a remote branch to deposit money. In addition, customers benefit from a zero-balance checking account as well as a free debit card. Customers can also use a POS machine with just one click on the Chqbook app.

Chqbook received strong traction in the beta phase within two weeks of the launch of its brand new digital checking account. Based on initial traction, Chqbook is launching it for the masses today and will open over 100,000 checking accounts this fiscal year.

“Chqbook’s mobile app brings together all the financial transactions a small business owner needs to manage, and these are available on demand and at your fingertips. We want to make sure that when a small business signs up with we provide her with all the financial services she needs to run and grow her business and that she doesn’t need to go out and waste time.Our brand new digital checking account is a game changer and will bring a significant change in how digital banking services are delivered to this underserved segment. Our launch today not only appeals to our customers with its localization, but also addresses challenges on the ground, as evidenced by strong feedback and adoption. Going forward, our efforts will be to open at least 20-25,000 current accounts in a month Our goal is nationwide financial inclusion and providing ture of exceptional customer experience through technology, and we are just getting started,” said Vipul Sharma, Founder and CEO of Chqbook.

The growing use of the Internet and the penetration of smartphones in India, with 725 million active users, are revolutionizing access to financial services. Aligning with the vision of a digital India, Chqbook aims to give small business owners digital access to financial services, through bank loans and insurance, on the Chqbook app. With over 1.6 million app downloads and 250,000 active users across India, Chqbook aims to help grow their small businesses.

Chqbook is in talks with investors for its Series B funding round. To date, the company has raised a total of $13 million in funding from renowned investors including Aavishkaar Capital, Rajiv Dadlani Group, Earlsfield Capital UK , Harsha Bhogle, Bharat Shyam, Ken Glass, Rohit Chanana, Bhupesh Kumar, Amit Manocha, Amit Singal, Nilesh Shrivastava and Sakshi Vij.

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Capital Bank of Jordan launches new mobile banking experience https://innovativewords.com/capital-bank-of-jordan-launches-new-mobile-banking-experience/ Sun, 30 Oct 2022 13:44:44 +0000 https://innovativewords.com/capital-bank-of-jordan-launches-new-mobile-banking-experience/ Amman, Jordan – Capital Bank of Jordan, one of Jordan’s leading banks with a strong regional presence, has launched its new mobile banking application for customers, powered by Codebase Technologies’ Digibanc platform. The launch of the revamped mobile banking experience is an important milestone in the long-standing strategic technology partnership between Capital Bank of Jordan […]]]>

Amman, Jordan – Capital Bank of Jordan, one of Jordan’s leading banks with a strong regional presence, has launched its new mobile banking application for customers, powered by Codebase Technologies’ Digibanc platform. The launch of the revamped mobile banking experience is an important milestone in the long-standing strategic technology partnership between Capital Bank of Jordan and Codebase Technologies. Over the past year, the two teams have collaborated in the launch of Jordan’s first neobank “Blink” which provides banking services through its smart digital platform, in addition to digital integration for Capital Investments – the investment arm of Capital Bank Group.

“Codebase Technologies has been a long-standing and valued technology partner for us. The team’s in-depth knowledge of software, IT and the nuances of banking has been of immense value in our digitalization journey,” commented Izzidin Abusalameh, Group Chief Operating Officer, Capital Bank of Jordan.

Leveraging Codebase Technologies’ award-winning Digibanc platform, the two teams created the first of its kind in the MENA region, a widget-based banking application experience inspired by cutting-edge operating systems. Using a component-based development approach by customizing several market-ready solutions within the Digibanc platform dramatically accelerated the time-to-market of the mobile app. In addition, the open and agile nature of the Digibanc platform allowed functionality to be developed and integrated with the bank’s existing core banking system and IT infrastructure for seamless deployment.

Hani Khalil, Chief Digital and Innovation Officer of Capital Bank of Jordan Group, said, “Codebase Technologies’ technical savvy and ability to work under extreme time constraints is truly impressive. Their Digibanc platform puts us in a position of commercial and technological strength and gives us the flexibility to innovate at scale, now and in the future.

With a population of over 10 million and just over 8 million active mobile connections, Jordan is a mature market hungry for digital services. Moreover, with only 27% of women and 53% of men having access to a bank account, there is a strong need for digital financial services in the country. By improving customer engagement and acquisition through the new digital offering, Capital Bank of Jordan aims to increase market share and drive growth across the organization.

Mohammed Othman, Group Chief Consumer Banking Officer at Capital Bank of Jordan, added, “We are extremely proud of the new mobile app and the experience our customers will enjoy. The high level of customization and ease of use helps us grow our customer base, improve customer retention and acquire new customers, which ultimately drives revenue across our business . »

Tamer Al Mauge, Managing Director – MENA of Codebase Technologies, added, “The recent launch of the mobile app is another milestone in our strategic technology partnership with Capital Bank of Jordan. We are honored that Capital Bank of Jordan has trusted us as a long-time technology partner and has chosen our Digibanc platform as the solution for multiple projects in their digitization journey.

-Ends-

About Codebase Technologies

Codebase Technologies is one of the fastest growing open API banking solutions fintechs in the world. With a vision to “disrupt the way technology is used, for a greater purpose”, the company designs impactful digital financial experiences for conventional and Islamic banks, fintechs, neobanks, lenders and start-ups.

Codebase Technologies has launched multiple digital, challenger, neo-banking and financial propositions worldwide with a proven success rate and unparalleled speed to market, experiencing exponential growth as a pioneer of digital banking technology in the banking industry global.

The Company’s award-winning DigibancTM fintech platform is a cloud-based, API-driven and highly adaptable digital banking platform for institutions to deliver inclusive digital financial experiences. The platform’s open architecture encompasses a diverse ecosystem of partners and vendors, enabling collaborative experiences across the financial services landscape. Built on a component-based micro-services architecture, DigibancTM provides a robust and agile environment to launch new financial products and services quickly and at scale.

Learn more about:
Website: www.codebtech.com
LinkedIn: https://ae.linkedin.com/company/codebasetechnologies
Youtube: https://www.youtube.com/channel/UCHchl1RaH_38KeYUTQjllsQ
Instagram: https://www.instagram.com/codebase.technologies/?hl=fr

About Capital Bank Group:

The Capital Bank Group is considered to be one of the leading financial institutions operating in the Jordanian and regional markets, with assets of approximately JOD 6.5 billion, while the total equity of its shareholders stands at almost 600 million JOD.

Capital Bank Group comprises Capital Bank, which since its inception in 1995 has become one of Jordan’s leading financial institutions, offering the Jordanian market a comprehensive set of commercial and investment banking services and solutions tailored to the needs of individuals and companies. similar customers.

In 2005, Capital Bank (Jordan) purchased majority shares of the National Bank of Iraq (61.85%), which enabled the NBI to develop its products and services, strengthen its presence and improve the financial inclusion at the national level, to support export activities and to provide all services to Jordanian companies operating in Iraq. In 2021, the National Bank of Iraq continued its expansion strategy by launching its operations in the Kingdom of Saudi Arabia to provide financial and commercial services to its corporate clients.

As for Capital Investments, it is a wholly-owned subsidiary of Capital Bank established in 2006 and which has established itself as a regional leader in the provision of comprehensive investment banking services including asset management, brokerage as well as financial advice to companies. The company serves a wide range of local, regional and international clienteles, including large corporations, government entities and high net worth individuals through its offices in Jordan and the United Arab Emirates / Dubai International Financial Center (DIFC) .

Building on its ambitious expansion strategy, Capital Bank Group also acquired Bank Audi’s operations in Jordan and Iraq in 2021 and followed this step in 2022 with the acquisition of Societe Generale Bank’s branches and operations in Jordan, thereby strengthening its competitive position in the Jordanian banking market. In early 2022, Capital Bank launched its digital bank – Blink, to reinvent the way people bank, targeting young people.

In June 2022, Capital Bank Group raised its capital and integrated the Saudi Public Investments Fund – one of the largest sovereign wealth funds in the world – as a strategic partner with a 23.97% stake, a step that will allow the Group to implement its expansion strategy and introduce new products and services to meet the needs of its customers and benefit its shareholders.

For more information, please visit the Capital Bank website: www.capitalbank.jo

For more information contact:
Tom Romansky
Branding and communication manager
Code base technologies
Email: romanski@codebtech.com
Orayb Akil
Corporate Communication & CSR Manager
Capital Bank of Jordan
Email: Orayb.akeel@capitalbank.jo

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CFPB says surprise overdraft fees are illegal https://innovativewords.com/cfpb-says-surprise-overdraft-fees-are-illegal/ Wed, 26 Oct 2022 16:07:27 +0000 https://innovativewords.com/cfpb-says-surprise-overdraft-fees-are-illegal/ Being hit by unexpected overdraft charges can be annoying, but according to America’s leading consumer advocate, it’s probably illegal too. As part of its ongoing campaign against “unwanted charges”, the Consumer Financial Protection Bureau (CFPB) on Wednesday (October 26th) issued guidance on two such practices which it says are “probably unfair and illegal under of […]]]>

Being hit by unexpected overdraft charges can be annoying, but according to America’s leading consumer advocate, it’s probably illegal too.

As part of its ongoing campaign against “unwanted charges”, the Consumer Financial Protection Bureau (CFPB) on Wednesday (October 26th) issued guidance on two such practices which it says are “probably unfair and illegal under of the law in force”.

Surprise overdraft charges include charges levied on consumers who had sufficient funds in their account to cover the debit charge at the time the bank approves it.

“Often, the financial institution relies on complex back-office practices to justify charging fees,” the CFPB said. “For example, after the bank authorizes a debit card transaction when there is enough money in the account, it still charges a fee on that transaction later due to the intermediary transactions.”

The second undesirable tax is the surprise depositor’s fee, or the “practice of indiscriminately charging depositor fees to anyone who deposits a bouncing check”, which the CFPB calls “an unexpected shock to depositors who thought that they were increasing their funds”.

The bureau notes that someone who deposits a check has no way of knowing if the check will clear and could even be the victim of fraud. In most cases, a check bounces because the person who wrote it “simply doesn’t have enough money available in their account,” the report says.

The agency says the charges likely violate the Consumer Financial Protection Act’s prohibition against unfair practices when consumers “cannot reasonably avoid them.”

Read more: Banks reduce Neobanks’ first-mover advantage on fees and technology

PYMNTS noted last week that a number of banks – Citi, Ally, Capital One – have begun to eliminate overdraft fees, spurred both by competition from neobanks, as well as a desire to stay deviation from regulators.

The CFPB warned earlier this year that as banks collected billions of dollars in overdraft fees, they had essentially shut some consumers out of traditional banking services.

Most recently, the CFPB fined Regions Bank $191 million in customer redress as well as a civil monetary penalty related to overdraft fees.

We are always looking for partnership opportunities with innovators and disruptors.

Learn more

https://www.pymnts.com/news/cfpb/2022/cfpb-guidance-consumer-reporting-agencies-must-eliminate-junk-data/partial/

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