MSME Financing in India: Making it Easy, Accessible & Affordable

https://gomedici.com/making-msme-financing-easy-accessible-affordable/

The contribution of Micro, Small and Medium Enterprises (MSMEs) to Gross Domestic Product (GDP), job creation, and balanced economic development is well-established. There are more than 55 million MSME enterprises in India, contributing to around one-third of India’s GDP and almost 43% of our exports. However, the lack of adequate, timely, and affordable access to credit has remained the biggest challenge for these enterprises to grow.

It is estimated that around 40% to 65% of MSMEs in emerging markets are either underfunded or not funded in the first place, by the formal financial sector. There have been various efforts and policy measures across developing economies and emerging markets, particularly focused on establishing robust financial infrastructure, and innovative financing mechanisms for MSMEs. Credit Guarantee Scheme (CGS) is one such policy intervention for addressing these market imperfections.

Globally, these schemes have played an invaluable role in promoting financing and development for MSMEs. The Korea Credit Guarantee Fund (KODIT), a public financial institution established in June 1976, is one of the largest credit guarantee agencies in the world, with outstanding guarantees of over USD 41 billion. This dovetails well with the growth of MSMEs in Korea, wherein they account for 99% of all enterprises and almost 48% of total national production. The credit guarantee corporation of Malaysia, established in 1972, has also supported the Malaysian economy and MSMEs over the years, with credit guarantees of over USD 15 billion. There have been other prominent examples from Thailand and Indonesia as well, using CGS as an enabling policy tool for easing the financial constraints of MSMEs.

In the Indian context, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was established in July 2000, jointly by the Ministry of MSME, Government of India and Small Industries Development Bank of India (SIDBI).

In the last 18 years of its existence, CGTMSE has established itself as an important institution in facilitating the flow of credit to MSMEs. Over these years, CGTMSE has been instrumental in providing guarantee cover worth INR 1.76 lakh crores, covering 35 lakh guarantees, extended by its Member Lending Institutions. The Trust crossed a significant milestone in FY 2019 by enabling 4.35 lakh guarantees with an aggregate loan amount of ~INR 30,000 crores.

CGTMSE has undergone transformative reforms since 2017 to expand the scope of its schemes to previously uncovered segments like partial collateralized loans and retail trade, and amongst uncovered lenders like NBFCs and small finance banks. This has further created a positive multiplier effect by encouraging banks and non-bank institutions to focus on multiple MSME lending avenues.

Furthermore, a slew of favorable government programs announced in recent years has fostered a more favorable business environment for FinTech models to emerge in the MSME lending space in India. FinTech companies are offering solutions that can substantially improve efficiencies at every step of the lending process.

making-msme-financing-easy-accessible-affordable2.png

SIDBI and CGTMSE acknowledge the pivotal role technology can play in further democratizing the credit access. We are encouraged to see that a number of Indian Fintech companies are focused on the MSME sector, and are providing small-ticket loans to entities with limited credit history, through data-driven scoring models and credit assessment. Considering the emerging role being played by new-age FinTech players in the MSME ecosystem, CGTMSE has recently included such FinTech NBFCs, engaged in financing Micro and Small Enterprises (MSEs), in its scheme as well.

A key differentiator has been the use of technology capabilities to bring the entirety of CGTMSE operations online. This has not only enabled it to achieve scale, but has also provided enhanced efficiencies and better customer service to its Member Lending Institutions. This would be particularly beneficial for these FinTech entities, as the platform can seamlessly interact with their end-to-end digital lending model and processes.

With this progressive approach of diversifying our product offerings, we are in the process of creating a unique demand-side disruption, letting MSE borrowers directly reach out for an upfront guarantee, in addition to our existing lender lead scheme. This would not only allow CGTMSE to extend its reach to unserved and underserved MSE segments, but would also create a sustainable lead-generation platform for Member Lending Institutions, aided by superior technology capabilities.

The CGS Model globally, as well as in India, has successfully demonstrated that it can increase credit flow to the MSME sector by mitigating risk for lenders. With the emergence of alternate lending models backed by technology and analytics, further impetus has been provided to the digitization of small enterprises themselves. It is, therefore, imperative that we continue to benchmark, re-examine and re-orient our credit guarantee model to ensure it remains aligned with our strategic objectives in a sustainable manner.

SIDBI, as the principal MSME Financial Institution in India, will continue to be at the forefront of building a vibrant, dynamic and inclusive MSME ecosystem in India. ‘Facilitating Ease, Access, and Affordability for MSMEs’, would remain our key mantra.

SIDBIChairman & MD

Mr. Mohammad Mustafa, IAS, who served as Joint Secretary of Department of Financial Services at Government of India since March 2014, has been the Chairman and Managing Director of Small Industries Development Bank of India since August 2017. He is also Chairman of India SME Asset Reconstruction Company, Ltd.

Over the years, he has held a number of senior positions across prestigious institutions such as the National Housing Bank, The New India Assurance Co. Ltd., Small Industries Development Bank of India, Bank of Baroda, Union Bank of India, and Andhra Bank.

Mr. Mustafa holds a Masters in Philosophy. After joining the IAS in 1995, he has served in various capacities like Joint Secretary, Special Secretary, Additional Commissioner, as well as District Magistrate in departments including Land Revenue Management & District Administration, Rural Development, Finance, Commercial Tax, Education & Higher Education, Personnel & General Administration, and Backward Classes Welfare, among others.

Apply to Become a Contributor

https://gomedici.com/making-msme-financing-easy-accessible-affordable/

The FinTech Chemist: Keeping an Open Mind with Open Banking

https://gomedici.com/fintech-chemist-keeping-open-mind-open-banking/

Studying the properties and composition that make up the FinTech ecosystem

Welcome to this week’s industry analysis with the FinTech Chemist. While I may not be literally mixing solutions and preparing reagents, I am studying and testing out the latest and greatest in FinTech. I recently attended Money20/20 Europe in Amsterdam, and here’s what I was able to formulate over the three days I was there:

With massive amounts of sensitive data, comes great responsibility. Like trying to handle a delicate substance, the financial services industry is still finding its footing when it comes to open banking. Even though the UK has pushed hard to implement the concept, David Birch said it best: “To the average person in the streets, it’s delivered basically nothing and all they get is an occasional letter from their bank with incomprehensible gibberish and something about the CMA.”

To most people, the idea of sharing so much data is intimidating. But, like any great invention or initiative, the benefits have the potential to reshape the way money moves. From giving access to underserved markets, to a more fluid customer experience, and not to mention new entrants into the marketplace, it has a lot of people rooting for its success.

Another prominent element from Money20/20 Europe was how payment providers are hyper-focused on creating a seamless front-end experience. This is where core banking providers stood out. Many of them are looking to technologies like Artificial Intelligence (AI) and Machine Learning (ML) to usher in a new era of banking, and drive customer satisfaction. An article by banktech.com summed up the general feeling in the room, citing that “…a bank ought to do that without the customer even realising. This is the so-called ‘invisible banking’, where your financial life is catered for, but you barely notice.” But hey, to be fair, even science hasn’t cracked the code to invisibility (yet).

For those fellow science and FinTech geeks (we should really start calling it ‘finence’ or ‘scientech’), a covalent bond is a chemical bond that involves the sharing of electron pairs between atoms. These pairs are known as bonding pairs, and the stable balance of attractive and ‘unattractive’ forces between atoms when they share electrons is known as covalent bonding. This scientific phenomenon was witnessed at Money20/20 when Trulioo, a leading global identity verification provider, and Refinitiv, a worldwide provider of financial markets data, announced that they’ve bonded together to foster financial inclusion and fight financial crime. This partnership aims to help institutions meet KYC/AML regulations and requirements more efficiently. As Stephen Ufford, CEO of Trulioo said in a video interview conducted by MEDICI Studio, “It’s such a breath of fresh air to have a large partner that sees the world the same way little Trulioo does, and that combination can really help us drive results for customers.”

One thing is for certain: three days and 350+ speakers later, FinTechs have positioned themselves to be appealing partners for the industry giants looking to capitalize on the ever-expanding payments marketplace. Now, onto my next scientific… I mean FinTech hypothesis adventure. And as always, remember to take your vitamins!

MEDICIDirector of Multimedia

Shannon Rosic is the Director of Multimedia at MEDICI, where she manages video, creative projects as well as marketing efforts. She is best-known for pioneering ways of integrating FinTech platforms with video through custom storytelling.

Prior to joining MEDICI, Shannon spent five years at InvestmentNews, a leading news source for financial advisors. She served as a specialist that helped drive the development and implementation of integrated content projects. She also launched a custom FinTech video series as her alter ego: Gadget Girl.

Shannon holds a B.A. in Mass Communication from Miami University, Ohio (never to be confused with Florida). She lives in Denver, Colorado with her husband and miniature Australian shepherd. All three of them enjoy horseback riding, hiking, and all the outdoor activities the West has to offer.

Apply to Become a Contributor

https://gomedici.com/fintech-chemist-keeping-open-mind-open-banking/

JP Morgan’s Finn: One Birthday Down, No More To Go

https://gomedici.com/jp-morgan-closes-finn/

Ever since its opening in 1871, JP Morgan has remained a valuable and reliable player among the top brands in the banking sector. So, when JP Morgan announced the launch of their digital-only bank, Finn, it was assumed that the innovative offering would be the new paradigm for incumbent banks; especially given that the bank designed it in-house by working closely with millennials for more than a year to understand their unique money management and banking-related behaviors/requirements.

They conducted trials for nine months in the state of Missouri (USA) before they rolled out the app. No wonder it came as a shock to the financial community when the bank shut down Finn within just a year of its launch. The question that has intrigued many in the industry remains – what went wrong? In this article, we try to analyze from our viewpoint.

Finn was targeted at young adults who wish to do transactions on phones rather than visiting branches. The app came with auto-saving features, smart budgeting tools, and emojis to enhance the experience of millennials. Moreover, to acquire customers, JPMorgan offered $100 to people who opened accounts and completed 10 transactions of certain types. It was seen as an add-on to providing regular branch-based accounts.

Competitors like Wells Fargo and Goldman Sachs are also promoting digital offerings under separate brands. After all these efforts in product development and given similar offerings by other competitors, the closing of Finn by JP Morgan comes as a surprise move. JP Morgan alerted Finn customers on June 6 that it will port over their accounts to Chase on August 10. Monthly fees will be waived indefinitely for Finn customers, and account numbers will not be required to change.

In our view, here are a few reasons that could have led to the shut-down of Finn:

1. Both Chase brand and Finn brand competing with each other: **According to a *JP Morgan spokesperson, “The Chase brand is already among the most popular banks for millennials, so we’re leaning in on that, rather than continuing to build a brand from scratch*,” Moreover, Chase has already incorporated parts of the Finn app, like auto-saving features into its main banking app. This shows that customers of Finn did not feel the need to have a separate brand for meeting their banking requirements. More than half of Finn’s customers also have a Chase account.

By shutting down Finn, JP Morgan is also removing some mix-up in product usage. While the Finn app was targeted at digitally savvy millennials, the customers still had access to Chase physical locations for more complicated services. In short, both the brands were offering similar types of services.

**2. A futile attempt to lure millennials: **The Finn app was launched with a lot of emojis to attract millennials. The customers had the option of sharing their feelings about a purchase through emojis. Over time, customers could access a report which shows the motivation behind their spending habits.

However, this feature did not resonate with millennials who use such emojis on every other app. To them, it appeared like a futile marketing attempt with nothing new to appeal to customers. Clearly, one of the key lessons here is to have a well-differentiated product offering for a parallel brand to exist & thrive.

3. Competition from FinTechs/Challenger Banks: According to estimates from Cornerstone Advisors, Finn managed to sign up just 47,000 customers since inception. According to another estimate, Chime had 3 million customers as of Q2 2019, and BankMobile (US) has over 2 million account holders.

Another example could be Goldman Sachs’ Marcus, which offers US customers one of the best interest rates in the country. Finn did not provide its customers with features that they could not get with any other brand.

4. Diminished need for a digital-only brand: **Chase has been focusing on increasing its physical presence. Last year, the bank **announced it would open 400 new branches in new markets over the next five years. There was another announcement this year that the bank expects to open up to 90 new branches in new markets by the end of this year.

Clearly, the focus is on opening new branches. With new branches catering to new markets and Chase’s main banking app as support, there is a diminished need for a separate digital-only brand.

This move by JP Morgan to shut down Finn has already given rise to much debate about whether similar units of traditional banks could meet with the same fate. Despite having garnered close to 50,000 customers in the year it was around, Finn couldn’t survive in the long-term. Having said that, and despite certain commonalities, different digital banks tend to offer unique services that distinguish them from their competitors.

Could this be key to their survival over time? It remains to be seen! For the time being, we continue to debate what could be done differently for big banks to go completely digital.

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI who collaborate to create FinTech insights.

Apply to Become a Contributor

https://gomedici.com/jp-morgan-closes-finn/

Empowering Startups: FInD the Right Partner in Your FinTech Journey

https://gomedici.com/empowering-startups-find-right-partner-in-your-fintech-journey/

The accelerated growth of FinTech startups in India during the past few years has come as no surprise. Technology has indeed become a great leveler and has served to reduce the cost of developing products and services. Earlier this year, MEDICI had published the India FinTech Report, which documented the growth of this sector. Despite this, there remain some major roadblocks to the FinTech growth trajectory, chief among them being access to capital and investors. In order for them to grow, FinTechs need support and constant backing. Entrepreneurship in FinTech is a challenging path requiring mentors, specialized advice, and a constant flow of potential clients and contacts.

With this understanding, in a move to help scale FinTech startups across India, the Mumbai FinTech Hub, PWC, and MEDICI have come together to launch a new initiative called FInD (FinTech Investment and Deals Program). FInD is a program supported by the industry, ecosystem players and the Mumbai FinTech Hub (MFH – an agency created by the Government of Maharashtra). It seeks to catalyze funding access and strategic partnerships between FinTechs, investors, and partners in India. The objective of this initiative is to unlock major opportunities for startups by facilitating investment and boosting entrepreneurship across the FinTech ecosystem. The program goes live on June 17, and its structure is as follows:

  • A democratized digital platform that gives freedom beyond biases

  • An enabler not only for investments but also for strategic partnerships

  • A curated matchmaking process guided by experts that is precise and quick

Accordingly, a number of domestic and international roadshows have been planned, that will help create awareness about this program.

empowering-startups-find-right-partner-in-your-fintech-journey-1.png

**You can register and RSVP for the roadshow in your city here: **https://bit.ly/2Wpawa1

The agenda of the roadshow is as follows:

empowering-startups-find-right-partner-in-your-fintech-journey-2.png

The panelists will consist of a PwC Partner representative, a Government of Maharashtra representative, investor representatives, and startups’ representatives. MEDICI, as Knowledge Partner, looks forward to hosting you at the event and taking you through the FInD program and its value proposition.

For more information, please reach out to neeraj.shetty@pwc.com, or call +91 9870920640.

MEDICISenior Manager – Innovation

Mohit is a FinTech aficionado and is constantly scouting for the latest innovations disrupting the financial services industry. He has been actively working with prominent banks and other FIs on their innovation programs.

Apply to Become a Contributor

https://gomedici.com/empowering-startups-find-right-partner-in-your-fintech-journey/

May 2019 FinTech Funding – Payments & Lending Startups Top the Chart

https://gomedici.com/may-2019-fintech-funding-payments-lending-startups-top-charts/

In May 2019, FinTech startups across the globe raised $2.67 billion worth of VC/PE investments across 121 deals. The US heavily dominated the funding charts with $1.59 billion, which was a whopping 59.6% of the global FinTech funding in the fifth month of 2019. The United Kingdom was a distant second with a 12.1% ($325.4 million) contribution, with Canada and Mexico contributing 4.3% ($117.5 million) and 3.9% ($105.5 million) respectively.

In region-specific terms, the Americas dominated global FinTech VC funding in May with 68.8% in contributions in terms of funding value ($1.84 billion) and 35.5% in terms of the number of deals (43). Europe placed second with 19% in contributions to global FinTech VC funding in May by value ($509.1 million) and 35.5% in terms of the number of deals (43). Asia placed third with 11% in contribution to global FinTech VC funding in May by value ($295.6 million) and 22.3% in terms of the number of deals (27).

may-2019-fintech-funding-payments-lending-startups-top-chart.png

Among the segments, Payments led the VC funding race in May 2019 with $713.25 million in funding across 16 deals. Some of the biggest fundraises from this segment in May were the USA-based Marqeta series E funding of $260 million, the UK-based Checkout series A funding of $230 million, and the Mexico-based Clip series C funding of $100 million.

The segment that held second place in the funding race was Lending, which saw $706.6 million raised across 20 funding deals. SoFi received the highest funding in this segment with $500 Private Equity funding followed by Harbin Consumer Finance from China that received funding of $65.37 million.

WealthTech (Retail) was third in the list of segments with the highest VC funding in May 2019 as the startups in this space raised $388.2 million across 15 funding deals. This was majorly contributed by Carta’s series E funding of $300 million. InsurTech and RegTech were the other two among the top five FinTech segments in terms of funding value in October.

InsurTech startups raised $248.8 million across 13 deals. The InsurTech funding charts were led by Singapore-based GoBear with $80 million. A couple of other major deals in this segment were – Netherlands-based CarePay International series A round of $44.8 million and Coalition series B round of $40 million. On the other hand, RegTech startups raised $138.8 million across 10 deals. The funding in this segment was majorly contributed by the US-based Dashlane’s $110 million series D funding.

MEDICISenior Research Manager

Ravi conducts research across all FinTech domains and has in-depth experience in the areas of consulting & research. He also has a deep understanding of talent mapping solutions and has previously worked with Fortune 500 companies to solve their talent-related problems. Ravi is especially interested in Cryptocurrency and Blockchain. He has helped various companies understand upcoming technologies in the FinTech domain across the globe. He truly believes that the two things that matter the most in any business is ‘money’ and ‘talent’ and loves solving problems related to these two drivers.

Apply to Become a Contributor

https://gomedici.com/may-2019-fintech-funding-payments-lending-startups-top-charts/

15 Top Performers in Australia’s FinTech Market

https://gomedici.com/15-top-performers-australia-s-fintech-market/

The Cricket World Cup fever has taken over the globe, and we feel it here at MEDICI too. The matches have begun, and all enthusiasts are looking closely at the points table. Interestingly, New Zealand and Australia are on top of the table. Seeing this, we decided to look at the FinTech market in the region.

To provide an overview, the FinTech industry in Australia has grown drastically, with the financial services sector being the largest contributor to the national economy, contributing around $140 billion to GDP in 2018. In March, the government announced a boost of AU $100,000 for its plan to develop a national blockchain roadmap. More recently, on June 13, Europe based FinTech startup Revolut launched its app in Australia and announced that over 20,000 customers from Australia had already placed themselves on the waitlist.

In our research, we found that the leading startups headquartered in Australia seem to cover a range of segments. Over the next few weeks, we hope to do a deep dive into each segment. For now, here is a look at the top 15 FinTech startups in Australia:

  1. Judo capital, founded in 2016, provides an online lending platform for small and medium Enterprises (SMEs), enabling them to avail financing solutions for their business needs. It provides credit ranging from $250,000 to $5,000,000.

  2. Airwallex, founded in 2015, is a foreign exchange market and cross-border payment company that is focused on the APAC markets. Airwallex’s platform enables businesses to issue and pay invoices in their preferred currency at the mid-market foreign exchange rate.

  3. MoneyMe, founded in 2013, is an automated provider of loans which includes short-term loans, medium loan, and personal loans. It claims that it takes a minute to an hour to credit the loan amount into the account of the borrower.

  4. Tyro Payments, founded in 2003, is Australia’s first independent EFTPOS provider which allows users to take money on deposit and to advance money to Australian businesses.

  5. Spaceship, founded in 2016, is superannuation fund for millennials with technology investments at its core. For its members, the company has pledged to provide greater weight to tech stocks and eventually, exposure to unlisted startups.

  6. MoneyPlace, founded in 2014, is an online marketplace that uses peer-to-peer lending to connect investors with creditworthy borrowers looking for personal loans.

  7. SocietyOne, founded in 2011, is Australia’s leading P2P lending platform connecting creditworthy borrowers with savvy investors.

  8. Invoice2go, founded in 2002, is a mobile app that helps small businesses manage cash flow through easy-to-use invoicing, expense tracking, and simple reporting tools. The customer can create and send invoices straight from their smartphone, tablet, or computer.

  9. Athena Home Loans, founded in 2017, offers an online lending platform for the users, enabling them to avail home loans digitally, without any paperwork.

  10. Moula, founded in 2013, provides an online platform for businesses to receive unsecured loans without any paperwork. Users receive funds in their account within a day.

  11. Waddle, founded in 2014, is a financing software to borrow funds against outstanding invoices. They provide an instant draw-down option on invoices before they are paid. This avoids the cash flow gaps in their customers’ business by simply linking your favorite online accounting software to Waddle and never worry about paperwork or late payments again.

  12. Brighte, founded in 2015, focuses on providing households with affordable payment solutions. The payment plans help households buy solar panels, home batteries, and air conditioners. Brighte claims to be a one-stop ‘no interest’ payment solution for all the household energy and improvement needs.

  13. Decimal, founded in 2006, operates as a cloud-based, software-as-a-service platform, primarily for the financial services sector in Australia as well as internationally.

  14. Credit Clear, founded in 2016, enables payments of invoices in multiple currencies alongside sending users messages in their native language on their mobile phones. It allows merchants to offer multiple payment options such as PayPal, WeChat Pay, and credit/debit cards to their customers.

  15. i2x.ai, founded in 2017, provides a machine learning-based application for speech analytics. It analyzes different data points from speech and gives real time feedback/training suggestions. This solution is useful in various industries for different purposes like sales, marketing, HR, and customer support. i2x.ai’s clientele includes Bonaverde, Homebell, EichenGlobal, CBL International, and others.

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI who collaborate to create FinTech insights.

Apply to Become a Contributor

https://gomedici.com/15-top-performers-australia-s-fintech-market/

Differences Between Canadian and US Car Loans

https://gomedici.com/differences-between-canadian-and-us-car-loans/

Car loans are not the same in the US and Canada. There are different terms and conditions, different rates, and different qualifying criteria. When you are ready to purchase a car in Canada, you need to learn about a few different loan features, unless you plan to pay cash for the new vehicle. Although you can visit a dealership in person, there are many innovative ways to make a car purchase using financial technology, or FinTechs, to facilitate the transaction. Learning about interest rates, what is available, checking credit, and applying for loans can all be done using FinTechs, and help to streamline the process.

First, there are some similarities to discuss. Both the United States and Canada offer both lease and purchase options for new and used vehicles. Both countries require credit checks before assigning an interest rate or monthly payment amount. And, both will offer varying loan terms and conditions.

What are the major differences?

Canadian car buyers will notice several differences compared to vehicle purchasers in the United States. One thing that is important to know is that the terms for Canadian buyers have changed over the past several years, and those purchasing vehicles may notice terms and conditions have changed. Many car loans in Canada are now being set at 84-month repayments or seven years. This is longer than the average of four to five years in America. While this may make the payments lower on a monthly basis, Canadians may ultimately pay more for vehicles than their southern neighbors. Lenders are happy to extend these terms because they will eventually make more money because of higher interest payments overall. This extended period is not great for many consumers; however, since many car buyers end up ready to get a new vehicle before their seven-year payment term ends, leaving them with a balance to pay off before they can finance a new vehicle.

Canadian car loans often have higher interest rates than American car loans, which is why lenders are offering longer repayment terms. They are able to offer somewhat lower interest rates when the repayment terms are longer because they can make up the loss over a few more months.

Benefits of Canadian car loans

Many people are opting for the longer repayment terms because they may be able to afford a more expensive vehicle than they might with shorter loan terms. When the payments are spread out longer, then it is not as painful to make a car payment, since it can be a bit lower than it might be for an American car loan. The automotive industry is probably in favor of this trend, since they may be able to sell some pricier models when lower interest and longer terms are involved.

Problems with longer loan terms

Car buyers in Canada who opt for longer loan terms and do not end up keeping their car until the entire loan is repaid will be in for a shock when they try to trade in or sell their vehicle. Because they still owe a good amount of money, they will not reap the best trade in benefits, nor will they be able to offset the remaining loan costs by selling their cars privately. This is one huge advantage to having a shorter loan term. When you try to sell a car that is completely paid off, there is a little more wiggle room in the selling price, since your profits won’t go entirely toward satisfying an existing loan. This is often a situation referred to as being “upside down” or “underwater” in a loan, meaning that you owe more on the loan than the item (e.g., car) you are selling is really worth at that point.

Additionally, insurance companies have certain requirements when it comes to insuring vehicles. If you owe money on the car, your insurance premiums will typically be higher than if you own the car completely. The insurance company needs to make sure that if the car is completely totaled in an accident that they will not be paying more for the car than it is worth. Those who are insured often have a rude awakening if they are in an accident with a six-year-old car, finding out that the value they can get from an insurance company will not cover the remaining amount on the loan. Insurance values are often based on the manufacturers’ standard retail price (MSRP), and this may not be the same as what is owed on a vehicle, especially if it is not in mint condition. Having this kind of debt to pay off will impact a person’s ability to get a new car loan because the existing payments will affect their debt-to-income ratio, and make it look like they don’t have enough money for the new car loan.

While there is a difference between American and Canadian car loans, both have their distinct advantages and disadvantages. You can take longer to pay back a Canadian car loan but may pay more interest over the long term. You may pay less overall for an American car loan but have a higher interest rate. Some people may have the option of looking into both scenarios, and hopefully, be able to make the best financial decisions.

Post66Co-founder

Miruna Secuianu is the Co-founder of Post66, a social media management platform for businesses. Miruna is also an experienced freelance writer passionate about digital marketing, finance, and technology trends.

Apply to Become a Contributor

https://gomedici.com/differences-between-canadian-and-us-car-loans/

Hong Kong FinTech Week 2019: InvestHK Announces Significant Expansion

https://gomedici.com/hong-kong-fintech-week-2019-investhk-announces-significant-expansion/

To strengthen Hong Kong’s status as the leading international location for FinTech business in Asia, InvestHK has announced a significant expansion of its annual Hong Kong FinTech Week, moving to a bigger venue to accommodate a greater variety of program, business events, exhibitors, and attendees after the success of the 2018 edition. Get a glimpse of the 2018 edition here.

Now in its fourth iteration, the Hong Kong FinTech Week 2019 will be held at the AsiaWorld-Expo from November 4–8, 2019, in close vicinity to the Hong Kong International Airport to welcome more worldwide participants. This year, the event is expected to welcome more than 10,000 attendees, 250+ speakers, 4,000+ business meetings, 400+ media persons, and 150+ FinTech exhibitors.

“We now have the chance to grow the event further. And, with the airport expansion and the new Hong Kong-Zhuhai-Macau Bridge on Lantau, we will show the participants the “Double Gateway” role of Hong Kong,” said Charles Ng, Associate Director-General of Investment Promotion at InvestHK.

Attendees will hear from globally renowned experts in technology innovation, meet the world’s most innovative FinTechs and leading industry experts, experience China’s Silicon Valley – Shenzhen via companies’ visits, discover the latest technology solutions from the exhibitors, and meet the fastest-growing FinTech startups from China, Asia, and across the world.

What is new in 2019?

  • Virtual banks and digital-only insurers will be among the key topics

  • Greater Bay Area FinTech Summit covering arising opportunities across the region

  • Doubling the expo size to 18,000 square meters

  • Growing to over 10,000 attendees from 70+ economies

  • Chatham House stage for off-the-record talks with key CEOs and founders

  • Hardcore Tech stage to dive into the technology side of the industry, such as AI, APIs, Cloud, DLT, and more

  • Even more business networking and matchmaking opportunities

It is a good time to join the FinTech Week. The Hong Kong Monetary Authority (HKMA) announced the award of eight virtual banking licenses. These new virtual banks are expected to take 6–9 months to launch their initial banking services, meaning that the Hong Kong FinTech Week in early November is well-timed for them to showcase their services.

Also this year, the Open Application Programming Interface (API) Framework for the Hong Kong banking sector has taken effect. The open APIs involve around 130 sets of information covering all financial data and important information. Together with over 650 new datasets, which will be released in 2019 by other government bureaux and departments, these encourage more parties to provide innovative and integrated solutions.

The new developments this year follow last year’s launch of the Faster Payment System, the Hong Kong Common QR Code, and trade finance blockchain – all of which contribute towards Hong Kong’s appeal as a launch pad for FinTech companies in Asia.

According to InvestHK’s recent study of over 550 FinTech companies in Hong Kong, 52% of the founders are from overseas, while the remaining founders are from Hong Kong or mainland China. About 61% base themselves in Hong Kong for global expansion, and more than a quarter (28%) target Greater China. The companies do see Hong Kong as a regional base for business expansion. Besides, 51% of the companies are three to four years old or even longer. It demonstrates that the FinTech ecosystem here is maturing.

All this helps explain the appeal of Hong Kong FinTech Week, which is so effective at connecting the East and the West. In 2018, it had a record number of attendees from more than 50 economies. Over 260 speakers shared their vision, including top executives from Ant Financial, Tencent, Xiaomi, WeBank, WeSure, Ping An, Lufax, Yunfeng, ZhongAn Insurance, PayPal, Grab Financial, Revolut, Starling Bank, Tinkoff Bank, AMTD Group, Standard Chartered, and Citi. There were a series of business matching meetings and side events such as the innovation lab tours and the involvement of universities. Regulators and companies also shared breaking announcements which facilitate FinTech development. Last year’s cross-border event to Shenzhen even looked closely at the collaboration between Hong Kong and the other cities in the Greater Bay Area.

Register your early-bird tickets now at www.FinTechweek.hk or follow InvestHK’s Twitter account (@HongKongFinTech) #HKFinTechWeek and LinkedIn Page. See how the HK FinTech Week is reshaping the global FinTech ecosystem here.

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI who collaborate to create FinTech insights.

Apply to Become a Contributor

https://gomedici.com/hong-kong-fintech-week-2019-investhk-announces-significant-expansion/

Call for Entries: IBM Launches IBM Hyper Protect Accelerator Powered by IBM LinuxONE

https://gomedici.com/ibm-launches-ibm-hyper-protect-startup-accelerator-powered-by-ibm-linuxone/

We have seen that launching and scaling a startup continues to be a challenging journey for early-stage entrepreneurs, and we have all heard the statistics that a large number of startups fail.

That is why today, IBM announced the IBM Hyper Protect Accelerator Powered by IBM LinuxONE designed to build and scale the next generation of FinTech and HealthTech companies with solutions engineered to keep their sensitive data highly secured.

Over four phases – call for entries, startup identification, an in-person workshop, and ongoing mentorship – selected startups will work with IBM and our collaborators IBM Alpha Zone, Queen City Fintech, and MEDICI, to help them develop their ideas into sustainable and scalable companies.

The selected startups will have access to technical workshops from IBM, an experienced network of business and technical support, connections to Queen City Fintech’s 300 business mentors, business value design assistance, curated curriculum specifically designed for startups, and up to $10,000 monthly in IBM Cloud technology credits that can be used within that month to access IBM Cloud Hyper Protect Services running on IBM LinuxONE. By the end of the program, the cohort will have had the opportunity to each receive up to $120,000 in credits.

Phase I: Call for Entries

Starting today, we’re looking for early-stage FinTech and HealthTech founders from around the world who need access to the resources required to help them build world-class applications and technical solutions.

By helping companies build scalable solutions while providing a highly secured platform for development, the program is designed to drive business and social innovations across the financial services and healthcare industries.

Nominations for the IBM Hyper Protect Accelerator are now open. This program is designed for early-stage, pre-Series A startups from across the globe that are less than five years old and have less than $1 million in revenue. Startups should have a website and matching email address. The application process will remain open until July 31, 2019, at 5:00 p.m. PST.

Phase II: Startup Identification

Over a 12-week period, IBM will work with IBM Alpha Zone, Queen City Fintech, and MEDICI to review startup applications and select 15 early-stage FinTech and HealthTech startups with technical and business best practices.

For startups in the healthcare and financial services space needing to protect highly sensitive data in cloud native applications, LinuxONE is designed to offer a highly secured environment, with a Hardware Security Module (HSM) certified to the highest level of commercial cryptographic security, FIPS 140-2 Level 4, and capable of scaling as their companies grow. LinuxONE also provides the highest level of uptime and availability for companies that rely on uninterrupted service.

Phase III: In-Person Workshop

In November, IBM will host an in-person workshop which will take place over four days in Charlotte, North Carolina in the week of November 11, 2019. The workshop will include agile design workshops from IBM, technical expertise from IBM engineers, business value sessions from IBM Alpha Zone, Queen City Fintech, and MEDICI, helping the startups to refine their ideas, and will conclude in a demo day where founders will present their solutions to IBM partners, customers, and the venture capital community.

Phase IV: Ongoing Mentorship

To create a long-term, successful accelerator, IBM will provide virtual mentorship to this cohort of entrepreneurs, consisting of monthly one-on-one engagement and quarterly all-hands with IBM technical personnel over a two-year period.

The cohort will also receive virtual business mentorship over a one-year period, which includes monthly one-on-ones and quarterly all-hands. After one year of mentorship, the cohort will be invited back to a second in-person demo day.

Diversity & Inclusion

IBM recognizes that diversity and inclusion are integral to a company’s strategic and profitability objectives – solidifying the connection between customer satisfaction and winning in the marketplace. IBM values opportunities for businesses owned and operated by minorities, women, LGBT+, disabled veterans, and other disabled persons.

IBMStartup Program Manager – IBM Z Influencer Ecosystem

Melissa is social entrepreneur outside the office, and an intrapraneur inside the office. In here role at IBM, shes partners with early-stage startups and the VC community to evangelize IBM’s mainframe business.

Apply to Become a Contributor

https://gomedici.com/ibm-launches-ibm-hyper-protect-startup-accelerator-powered-by-ibm-linuxone/

Are Credit Cards the Same in the US & Canada?

https://gomedici.com/are-credit-cards-the-same-in-the-us-and-canada/

Getting a credit card can be an excellent way to improve personal finances and build credit. In many ways, the United States and Canada are quite similar. When it comes to credit cards, however, there are some important distinctions to learn about starting with basic credit cards. But consumers today have many new options such as the new Apple Card or Zero Card. The Apple card works directly with your Apple Wallet, and you can make payments using your phone and keep track of all of your spending while earning cashbacks. The Zero Card is the answer for those afraid of building up high balances since it works like a debit card and you won’t carry a balance from month to month. Zero Card has no fees, no chance of going over your limit, and no complicated rewards system.

Not all credit cards are created equal, and the best credit cards in the US are not necessarily the best credit cards in Canada. Learn how to spot the differences easily, so that you can interchange if you need to, whether you are visiting, moving, or otherwise need this information.

Canada offers many of the same advantages when it comes to credit cards. You can use your credit cards in the same ways in both countries – to pay for purchases, pay for gas, pay at restaurants, etc. And, in both countries, you have a monthly payment that is due on a certain day so that you do not incur late fees or other penalties. You will pay interest on any balances that are not paid in full each month, though most credit cards, in the US and Canada, will not charge any interest during the “grace period,” or the time between the day the charge is posted and the day your payment is due.

Know your credit score

The best credit cards in Canada, just like in the US, will require a credit report before issuing a credit card in your name. You must prove that you are creditworthy before any bank extends credit to you. Interestingly, the same credit bureaus operate in both countries – Experian, Equifax, and TransUnion, but they are distinct entities for both countries, and you may actually have a different credit history in each country since they do not share information internationally.

What are the differences between American and Canadian credit cards?

There are some distinct differences between the best credit cards in Canada and the best American credit cards. One of the most common things noticed by consumers is the big difference when it comes to earning rewards. In the United States, many people seek the best deals when it comes to airline rewards, hotel deals, cashbacks, and other rewards. Many of these programs are extremely generous and lure customers in because of the great perks that they offer.

However, when it comes to credit cards in Canada, the perks and offers are far less enticing. While American credit cards may offer up to 5% cashback or reward perks, the best credit cards in Canada may top out at 2% rewards, whether in the form of cashback or other rewards. Additionally, it is quite rare to find a credit card in Canada that offers airline miles as rewards or hotel points.

Some people may think that they can “outsmart” this problem with earning perks and cashback, but before trying to get an American credit card to use in Canada so that you can earn the bigger rewards, you must make sure that there are no foreign transaction fees. Many credit cards have a foreign transaction fee that can range from 1–3%, and this will quickly eat away at any rewards or cashback that is offered.

Another common difference between Canadian and American credit cards is the presence or absence of annual fees. You can find many credit cards in the US that have no (or very low) annual fees. However, as soon as you cross that border to the north, you may have a hard time finding a credit card that offers a $0 annual fee. This often applies even to the cards that have no cashback or rewards programs.

There is also a fairly significant difference in interest rates between American and Canadian credit cards. In the US, you can often find promotional credit card interest rates that begin at 0% and perhaps rise to between 8–12% after the first year (or some other predetermined period). Only the best credit cards in Canada can match these interest rates, as the average interest rates are between 19–30%. If you do happen to find a credit card in Canada with a lower rate, it is pretty likely that it will carry an annual fee.

How to find the best credit cards in Canada

When it comes to choosing the right credit card for your needs, especially if you have any reason to have credit cards in multiple countries, you really need to know the fine print or the details of the credit card terms. Be sure that you are very clear about the annual fees, the interest rates, the foreign transaction fees, whether or not there is a grace period on purchases, how payments are calculated, and any other important details so that you don’t find yourself saddled with unexpected charges or costs. Also, remember to find out ahead of time about the perks and benefits, if any, related to the best credit cards in Canada.

Post66Co-founder

Miruna Secuianu is the Co-founder of Post66, a social media management platform for businesses. Miruna is also an experienced freelance writer passionate about digital marketing, finance, and technology trends.

Apply to Become a Contributor

https://gomedici.com/are-credit-cards-the-same-in-the-us-and-canada/

BBVA: Behind the Architecture of an Innovation Ecosystem

https://gomedici.com/bbva-behind-architecture-innovation-ecosystem/

A recent study by MEDICI showed a clear pattern that has emerged over the past few years in terms of bank-FinTech partnerships. Collaboration has emerged as a beneficial path of growth for both sides. For traditional financial institutions (banks), working with FinTech startups enables them to integrate innovative technologies for customers as well as building solutions from scratch. For FinTechs, the collaborations mean access to a broader range of customers through well-established industry names, experience & shared learning – accordingly, banks are going proactive in their approach of collaborating with FinTechs either via innovation programs, incubators, accelerators, or M&A activities. One of the most innovative and progressive banks in the world, BBVA, stands out as an apt example of the fact that banks and startups are not competitors; instead, that collaboration is the key to mutual growth.

At MEDICI*, *we have been writing about the nature of relationships between the corporate world of traditional banking and the FinTech world. In line with this, our team has been covering BBVA’s activity in the startup sector actively. Founded in 1857, BBVA has been dedicated to innovation in the global financial ecosystem for almost 160 years. The upcoming BBVA Open Talent 2019 is further proof of that dedication.

Towards a Holistic Startup Ecosystem: BBVA’s Approach

Among the most interesting initiatives run by the company is BBVA Open Innovation. As described by the bank, the Open Innovation team is one of the units within BBVA charged with forging connections and partnerships with the world’s FinTech entrepreneurs. The aim is to build partnerships that can bring new products and services, both to the bank and as importantly, to its customers and clients.

As the bank puts it, “Open Innovation builds connections and partnerships with FinTech entrepreneurs and startups around the world, with the aim of bringing new products and services both to BBVA and to its customers and clients, while nurturing the FinTech ecosystem as a whole.”

One of the key components of the Open Innovation Team is the Open Talent Program, a global startup competition focused on innovative startups that are transforming financial services and those related to e-commerce, user experience, big data, etc. The program is a part of the company’s open innovation strategy through which BBVA collaborates with entrepreneurs, developers, and the leading players who are changing the financial industry.

For more than 10 years, BBVA has been writing success stories through its Open Talent challenge and has proved itself to be a gateway to international success in FinTech. The bank has proactively supported true disruptors and some of the most innovative and promising ventures & individuals that can make a change in the financial services industry.

Success Stories Co-Authored by BBVA Open Talent

bbva-behind-architecture-innovation-ecosystem-1.jpg

Success stories from the Open Talent competitions of previous years speak to the scale of possibilities and success opportunities that startups are presented by entering the contest. In the last 10 years, over 6000 companies have entered the challenge from 90+ countries. More than €1.65M has been awarded in prize money over the 10 editions of the BBVA Open Talent Program.

“The vision of BBVA Open Innovation for 2019 and beyond is to support startups that have already scaled up or completed pilot projects, but also to broaden its partnerships with VCs and other investors to maximize the value delivered for entrepreneurs embarking on what is ultimately a journey of trust and collaboration with Open Innovation.” – BBVA Open Talent Team

The Tenth Edition of the BBVA Open Talent Program

Once the ‘beginners,’ young startups such as Dunforce, Sedicii, and ChargeAfter were the FinTech startups who took the winning titles and worked with the bank to develop pilots in conjunction with their needs. BBVA Open Talent is a way to get in line with those names and even outpace them for those who will dare to accept the challenge.

Open Talent 2018 brought companies like ToGaratido, Sensibill, BlueOpes, Neoeyed, Tikket, Glassbox and others to the headlines. The winners go hand in hand with BBVA into a more prosperous future, and the bank is as eager to give the best it can to the contestants as it is to learn from the brightest entrepreneurs. As a result, a total of €150,000 was distributed among the winners of 2018 to be used by them to support the growth of their business. The startups were chosen from more than 850 applications that came from 90+ countries. Other FinTech leaders that have gone through BBVA Open Talent in previous editions are Epiphyte, PeerTransfer, Socure, and Busuu, among others.

BBVA Open Talent 2019 is not just another competition. It is a journey to reveal the next generation of innovators and provide them an opportunity to make an impact and leave a mark on the international FinTech scene.

Learn more about BBVA Open Talent 2019 and register your startup to kick start an adventure to impact the future of the global financial ecosystem.

MEDICISenior Research Analyst

Kumar is a FinTech consultant/enthusiast with a keen interest in the budding startup ecosystem. Kumar has worked on several facets of the FinTech value chain, right from research & consulting to managing accelerators and innovation programs. He has been active in the financial services consulting space for over 1.5 years.

Apply to Become a Contributor

https://gomedici.com/bbva-behind-architecture-innovation-ecosystem/

15 Crowdfunding FinTech Startups for Socially Conscious Investors

https://gomedici.com/15-crowdfunding-fintech-startups-for-socially-conscious-investors/

Today, the MEDICI team was discussing the progress of the FinTech ecosystem and the impact it has delivered for the communities around the world. An interesting question that came up: why doesn’t the community talk much about FinTechs that work on charity, especially crowdfunding platforms? Why don’t we hear much about FinTech players providing socially-conscious financial services? The conversation inspired us to look at such FinTech players around the globe; we’re pleased to bring you a list of 15 crowdfunding platforms. Who knows, you might just find a cause on one of these platforms worth investing in!

  • iDonate is a United States-based company founded in 2010. It has raised $10 million in total funding. iDonate is a provider of a donor engagement solution that connects donors with a cause. As of October 2018, it had around 700 customers, including universities, religious organizations, and museums, which bolstered its revenue by double digits.

  • Chuffed is an Australia-based company founded in 2013. It has raised $1.1 million in total funding. Chuffed.org is a global crowdfunding platform for socially conscious projects. It supports various community groups by running crowdfunding campaigns. It takes care of campaign basics, as well as editing, managing, and promoting the campaign.

  • StartSomeGood is an Australia-based company founded in 2011 and has raised $400k in total funding. StartSomeGood offers crowdfunding platforms for social impact projects. It helps change-makers raise the funds they need to create tangible social good around the world. StartSomeGood works with individuals, non-profits, and for-profit social enterprises. The company gives expert advice on crowdfunding campaigns. It helps in preparing the campaign, and once the project is approved and live, the company seeks out opportunities to promote the project through its social media channels, as well as through its blog, newsletter, Twitter chats, and even its e-books to raise money. It claims to have already helped 550 projects raise almost $5 million and has made a difference in 30 countries around the globe.

  • GiveHope is a United States-based company founded in 2017. GiveHope is a crowdfunding platform that enables users to raise money for themselves for various purposes like medical expenses, education costs, volunteer programs, youth sports, funerals & memorials, and animals & pets. GiveHope enables users to donate for a particular cause through any major credit or debit card. It offers the ‘GiveHope Guarantee’ for protecting the funds contributed by a donor.

  • Crowdera is a United States-based company founded in 2015. Crowdera offers a cloud-based fundraising platform and a comprehensive fundraising framework for non-profits and social innovators to raise funds. It encompasses various aspects of the online fundraising ecosystem like donation buttons, cross-site donation widgets, websites (CMS), P2P campaigns, donation management, etc. The platform doesn’t charge any fee or commission from charitable organizations or individuals for creating campaigns. It also doesn’t ask for any tips from donors.

  • Donation Road is a Denmark-based company founded in 2014. Donation Road provides an online crowdfunding platform that allows a user to publish their own app or webpage to create a campaign. The platform enables supporters to find a campaign and support it with likes, funds, or membership. It also enables a user to create his own campaign for charity. The campaign created can relate to categories like children, nature, human rights, education, medical & healthcare, environmental, homelessness, religion, elderly health & care, rescue charities, animal shelters, and corporate social responsibility.

  • CoinFunded is a Sweden-based company founded in 2013. CoinFunded provides funding solutions to sustainable and creative projects & businesses. It allows users to create campaigns surrounding causes related to food, ecology, ethics, the environment, design, technology, social welfare, agriculture, startups, finance, film & video, clothing, gaming, photography, education, and research.

  • Pottermate is an Australia-based company founded in 2014. The crowdfunding platform enables users to create a new project and share the cause among their friends. Users can further request their friends to promote projects and offer a reward in returns of their support.

  • OzCrowd Crowdfunding is an Australia-based company founded in 2014. OzCrowd offers a crowdfunding platform to raise money for business, personal, or charity campaigns. The platform allows two types of campaigns: All or Nothing or Keep All (flexible funding). ‘All or Nothing’ is suitable for business or social enterprise campaigns which are creating a product. The backers are charged for their pledge only if/when the goal is met. ‘Keep All’ is suitable for donation-based or non-product-based campaigns. This option allows campaigners to keep what the campaign raises, regardless of whether the goal is met or not. The campaign can be created in many categories like animals & pets, charity, education & schools, medical, entertainment, sports, babies & family, community, holidays, memorials, other (personal), technology, weddings, adult, new business, legal, other (business), and video games.

  • Couee Community (Couee Life) is an Australia-based company founded in 2007. Couee Life is a fundraising portal for Couee Community Limited, a registered charitable organization. Couee Community aims to improve the lives of people and communities in need or those who are disabled or experience disadvantages by providing funds to them to access services, programs, receive goods, or other benefits. Couee Life’s fundraising page accepts online donations.

  • LawFunder is an Australia-based company. LawFunder.org provides a crowdfunding platform which enables people who can’t afford a lawyer to crowdfund donations or investments to provide them with access to justice. The company offers a crowdfunding platform for raising donations/investments for causes related to the environment, family, human rights, injury accidents, insurance, politics, property, and trade & business.

  • SPRNT (formerly Sportaroo) is an Australia-based company founded in 2012. SPRNT is a sports funding platform for everyone who is involved with sports, from grass-roots to professional. It provides an opportunity to raise funds needed to achieve users’ sporting goals. It offers athletes, sports teams, and associations the opportunity to raise funds through selling supporter packs (merchandise, experiences, or sponsorship) by posting a SPRNT on the platform. Each SPRNT has a funding goal and a time limit (from 1–50 days) set by the creator of that particular SPRNT.

  • iPledg is an Australia-based company founded in 2011. iPledg is a crowdfunding platform for charitable, community, creative, and commercial projects. iPledg provides project creators with commercial, creative, charitable, and community projects with an online platform to raise money, enabling these project creators to promote their ideas, engage a fan base, and fund their passion.

  • Talents Funding is a Norway-based company. It provides a platform to create crowdfunding projects. The projects can be created to follow one’s interest, develop talent, and celebrate achievements in sports, music, and entertainment. The company allows raising funds to attend events, as well as take music, dancing or singing lessons, get a skilled trainer or acquiring costly instruments or other equipment required to pursue an increasingly higher level.

  • SPONSOR.ME is a Norway-based company founded in 2014. SPONSOR.ME offers a crowdfunding platform for sports-related projects. The company makes it essential to disclose to the public what the project is hoping to achieve, the purpose of the project, the people behind it, and the contributors supporting it.

  • https://gomedici.com/15-crowdfunding-fintech-startups-for-socially-conscious-investors/

    How to Invest Your Money So It Grows

    https://gomedici.com/how-to-invest-your-money-so-it-grows/

    To build a fortune, it is wise to learn how to invest. There are several great ways to do this, and the more you learn, the more money you can make. Most people who become wealthy don’t get there simply by working at their job, they learn smart ways to make their money grow through the right investments. Many people find that working with FinTech can facilitate their wealth goals. These FinTechs include wealth management platforms that help customers make transactions without human assistance with a program that helps make predictions regarding markets and other innovations that make investing more available to the average person on an everyday basis.

    What should you invest in?

    As you learn how to invest, you will quickly realize that there are many options when it comes to building personal wealth. Some of the most common ways to invest money include buying stocks and bonds. The advantages of stocks and bonds include the fact that you can get started with a small amount of money, as little as $5 may be enough to start an account with some brokers. As the price of the stock rises, your investment becomes worth more. Plus, if you choose to re-invest the dividends and interest, you will be able to purchase more stock shares or more bonds. A potential disadvantage to investing in stocks and bonds is that the stock market does fluctuate, and if the price of the stock drops dramatically, you will lose some or all of your investment.

    If you are not ready to invest in stocks and bonds, or not sure how or where to begin, look into mutual funds. You can sign up for accounts from a number of different companies that offer mutual fund investing. Essentially, a mutual fund is a collection of different stocks rolled into one investment – this is considered “diversified.” Mutual funds are managed by professionals, and you would have someone making decisions about what stocks you are investing in. By expanding the number of stocks in the funds you invest in, you are reducing your risk because if one stock goes down, your entire account will not be as heavily impacted.

    Another popular way to invest is by purchasing real estate. Purchasing a home that you can rent and earn income from is a great way to invest if you do it right. You should be familiar with the area, and know whether or not the property values are going up in that area. There are multiple advantages to investing in real estate. First, as the value of the home grows, the equity or the value of an investment will also grow. Additionally, if you are renting the home, then you are probably getting enough money to cover the mortgage and taxes, and being able to pocket some extra money each month. Potential disadvantages include expensive repairs, declining neighborhoods, and bad tenants. This can be a good way to get started if you want to know how to invest.

    Retirement accounts are extremely popular. Many people want to plan well in advance for their retirement so that they don’t have to plan on working forever. A huge advantage of many retirement accounts, such as 401k plans, is that employers will often match the amount that an employee contributes, helping the account to grow more quickly. Traditional and Roth IRAs (Individual Retirement Accounts) are also common. As with any other investment, there are pros and cons, and with retirement accounts, the pros and cons are most closely associated with when you have to pay income tax on the amount (some are pre-tax contributions, others are after tax; some accounts will tax you when you withdraw, others will not). Be sure you know the details and understand all of the tax implications.

    How risky is investing?

    Certainly, as with anything that comes with a reward, there is some risk involved in investing. But, while you can continue to work at your regular job and just bring home your paycheck, perhaps setting aside a few dollars each month, when you start learning how to invest you can turn those few dollars into many, many more, with the right knowledge and techniques. It can be intimidating when you begin investing, if you don’t fully understand how the returns, dividends, interest, fees, etc., all work. But, there is plenty of help online, or by contacting a financial or investment advisor. Don’t be afraid to turn your small nest egg into big wealth! Make wise, well-educated decisions, have patience, and start simple if you want to go far with your investments.

    Post66Co-founder

    Miruna Secuianu is the Co-founder of Post66, a social media management platform for businesses. Miruna is also an experienced freelance writer passionate about digital marketing, finance, and technology trends.

    Apply to Become a Contributor

    Further reading

    https://gomedici.com/how-to-invest-your-money-so-it-grows/

    Mobile Payments: Comparison of Two Powerhouses of the World

    https://gomedici.com/mobile-payments-comparison-of-two-powerhouses-of-the-world/

    China and the USA are the largest economies of the world, and one of the most important criteria for being a large economy is having an evolved financial infrastructure. A well-advanced financial infrastructure has helped in the financial inclusion of both countries which have in-turn helped in the growth of the economies. The financial infrastructure of both the countries have been heavily dependent on the advanced technologies to provide convenience to the user so far, but in the next stage, the increase of financial activity features on mobiles would determine the next wave of convenience for the users. In the chart below, we have compared the mobile transaction value to the total cashless transaction value in the respective countries.

    mobile-payments-comparison-of-two-powerhouses-of-the-world-1.jpg

    Source: BIS, People’s Bank of China, and Forrester Research.

    It can be noted that China has mobile payments accounted for approximately 6.1% of cashless transactions in 2018 and this is majorly due to the faster adoption rate of mobile payments by consumers in online retail, financial, and on-demand services, such as ride-sharing activities, movie ticket bookings, and retail payments. According to the China Internet Network Information Center (CNNIC), around 583 million people made mobile payments in China in 2018 compared to 526.6 million people in 2017 – an increase of 10.7% from 2017 to 2018. Alipay and WeChat Pay are the two players that are prominent in the mobile payment market in China. Collectively, both companies hold 92% of the market share in China.

    mobile-payments-comparison-of-two-powerhouses-of-the-world-2.jpg

    On the other hand, mobile payment transactions in the USA has grown steadily with a CAGR of 32.71% from 2014 to 2018. Consumers in the US are more inclined towards making payments through credit cards and debit cards compared to mobile payments. On average, a person in the USA holds 3.1 credit cards, and 67% of the total population in the USA have credit cards. The other major concern for mobile payments is that consumers do not feel secure in linking their bank accounts with payment applications. A study by YouGov states that 56% of US consumers feel that mobile payments increase the chances of fraud and theft. Only 5% of people trust mobile payment as a secure method.

    Introduction of payment applications from major companies such as Apple, Google, and Amazon have fueled the growth of mobile payments in the USA in recent times. Alipay has entered the US market by partnering with Atlanta-based payments processor First Data, under which more than 4 million US merchants will accept payment via Alipay. However, Alipay is more interested in the growing number of Chinese tourists and students in the USA to gain mobile payment market share.

    According to a study by Nielsen, over 90% Chinese tourists would prefer to use mobile payment overseas and that if overseas merchants supported the use of Chinese mobile payment brands, it would further increase their desire to shop. This, along with the significant rise in per capita income of residents in China and the increasing number of Chinese citizens traveling overseas, makes accepting China’s mobile payments smart business for US merchants. The number of Chinese visitors to the USA is expected to reach 6 million by 2021, according to the US Travel Association.

    Conclusion

    It is quite clear that China is way ahead of the United States in terms of mobile payments. China’s mobile payments inflation has been escalated by the adoption of smartphones, financial and on-demand services, online retail, and because of being the world’s largest internet market. However, the US mobile payments market has also grown over the past years, and as per The Economist, it is projected to reach $282 billion by 2021. The fundamental challenge in the USA would be to remove the fear of identity theft or data breach besides vastly enhancing contextualization and personalization of payments; and consequently, the opportunity ahead of the American payment FinTech ecosystem is to utilize the smartphone to provide a seamless mobile transaction element into the overall payment experience of the user.

    Ravi conducts research across all FinTech domains and has in-depth experience in the areas of consulting & research. He also has a deep understanding of talent mapping solutions and has previously worked with Fortune 500 companies to solve their talent-related problems. Ravi is especially interested in Cryptocurrency and Blockchain. He has helped various companies understand upcoming technologies in the FinTech domain across the globe. He truly believes that the two things that matter the most in any business is ‘money’ & ‘talent’ and loves solving problems related to these two drivers.

    A FinTech researcher and management graduate, Nagendra works on various syndicated and custom research assignments spanning multiple FinTech segments. He likes to analyze startup companies in the online retail and FinTech sectors. His interests also lie in corporate social responsibility, environmental impact assessment, and financial modelling.

    Apply to Become a Contributor

    https://gomedici.com/mobile-payments-comparison-of-two-powerhouses-of-the-world/

    Top Funded FinTech Startups Founded in 2018

    https://gomedici.com/top-funded-fintech-startups-founded-in-2018/
    Top Funded FinTech Startups Founded in 2018

    FinTech

    MEDICI

    A growing number of new players in any industry is a sign of an expanding market and opportunities for innovators. FinTech is not an exception here. Increasing access to capital, consumer awareness, and acceptance to new ways of managing finances and other ecosystem drivers have been attractive for entrepreneurs in 2018 as well. We were looking at MEDICI startup database stats of new FinTech startups & their growth stories and came across many interesting cases of new players that secured good equity in order funding within one year of entering the market. In case you are inquisitive like us, here is a list of 15 such well-funded startups that were founded in 2018:

    FinTechs that have secured 10 million+ in funding

    1. Figure Technologies, a United States-based company, has raised $50 million in total funding. Figure is a financial technology company that offers consumer credit products by leveraging blockchain, AI, and advanced analytics. It helps users to learn how to use home equity to consolidate debt, pay for home improvement, or fund their retirement.

    2. Lumi Finance, an Australia-based company, has raised $6.5 million in total funding. Lumi allows MSME companies to avail business loans required for business expansion. It provides both secured and unsecured loans.

    3. Terra, a Singapore-based company, has raised $32 million in total funding. Terra is a crypto project that offers a decentralized stable coin that can be used at various e-commerce platforms.

    4. Nervos Network, a China-based company, has raised $28 million in total funding. Nervous Network is a Chinese blockchain startup that helps enterprises to create solutions & products by leveraging distributed ledger technology. It has developed a protocol that allows the business to develop and deploy solutions for enterprises that want to integrate blockchain into their systems.

    5. ErisX, a United States-based company, has raised $47.5 million in total funding. ErisX is a cryptocurrency trading platform which offers both spot and futures contracts. It supports Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. It also provides settlement services for the spot market.

    6. CDRX, a Singapore-based company, has raised $34 million in total funding. CDRX is a free cryptocurrency trading platform. It allows users to deposit and withdraw digital instruments such as coins, tokens, and crypto depository receipts (CDRs) via securely dedicated wallets.

    7. LoanSnap, a United States-based company, has raised $12.3 million in total funding. LoanSnap is a lending startup that makes people aware of dumb loans and protects them against it. It leverages artificial intelligence to analyze a person’s financial situation and then provide them with loan options as per their needs.

    8. SKALE Labs, a United States-based company, has raised $9.7 million in total funding. Skale provides an open-source, decentralized platform that helps developers to make decentralized applications in a secure & cost-effective manner.

    9. KyckGlobal, a Georgia-based company, has raised $8 million in total funding. Kyckglobal is a B2B FinTech startup that offers payment process for 1099 contractors. It enables businesses to streamline their workforce invoicing and disbursement processes.

    10. Helicap, a Singapore-based company, has raised $6.5 million in total funding. Helicap is an online lending platform that offers funding to alternative lenders like peer-to-peer platforms and micro-financiers. It has developed proprietary tools and to assess both equity and credit risks of originators before providing them funds.

    11. Wagestream, a United Kingdom-based company, has raised $25 million in total funding. Wagestream is a FinTech startup that offers a “get-paid-as-you-go” service, thereby allowing workers to access their monthly wages in real-time instead of their payday. The platform directly connects with the company’s timekeeping systems and makes a percentage of reported hours/earnings available to its employees. Upon request by employee for early withdrawal, the platform funds the transfer from its own balance sheet. The Wagestream platform is paid back as per the company’s normal payroll process.

    FinTechs in the 1-to-10-million funding bracket

    1. Unblockable, a United States-based company, has raised $5 million in total funding. Unblockable offers a blockchain powered crypto collectible market for sport and entertainment. It provides unique, non-fungible tokens that are based on individual athletes, thereby enabling fans to play games and use tokens based on their favorite stars and team.

    2. KZen Networks, an Israel-based company, has raised $4 million in total funding. It helps users to store the digital currency in a wallet & can use it on cryptocurrency trading platforms.

    3. Lumina, a United States-based company, has raised $4 million in total funding. Lumina offers a digital investment platform for institutional investors that allows them to invest in digital assets.

    4. FundGuard, a United States-based company, has raised $4 million in total funding. FundGuard offers a fund management platform for asset managers, asset owners, banks & fund administrators, enabling them to manage investments across mutual funds, ETFs, separately managed accounts, pension funds, as well as insurance. It leverages cloud-based AI technology to provide a real-time SaaS application, support, recommendations, and insights.

    MEDICI

    MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI who collaborate to create FinTech insights.

    Apply to Become a Contributor

    • Who We Are
    • What We Do
    • Popular Links
    • Stay Connected

    © 2018 Copyright MEDICI Global, Inc. All Rights Reserved.

    https://gomedici.com/top-funded-fintech-startups-founded-in-2018/

    A Quick Guide to Getting a Student Loan

    https://gomedici.com/quick-guide-get-student-loan/

    We all hate student loan debt with a passion, but somehow, we all need it to get a good education. Unfortunately, the success of many young Americans depends on student loans, which is why it is crucial to understand the ins and outs of the industry. Getting a student loan in a smart way and without a lot of pain is possible, and you will learn how to do so from this article. The primary purpose of this article is to guide and educate young audiences. It is important to mention that this is not a magical system that will get you out of debt. But it will, however, help to have a better understanding of the whole process, offer valuable information, help to formulate a good financial plan and learn more about the terms and rates of the best balance transfer credit cards.

    What are some of the things that everyone needs to know about student loans?

    For a lot of people, getting any type of loan, including a student loan, should be a carefully considered decision. But unfortunately, more often than not, people will simply throw themselves heads first into debt. In some cases, student loans can be more dangerous and complicated than other types of debt, so it is very important to put the same amount of thought into getting this type of loan as you would a mortgage. According to an article published by CNBC, more than 70% of Americans who graduate from college are in serious debt, and no less than one in four Americans are currently paying off their student loans.

    It is important to understand that student loan debt is just regular debt.

    Student loan debt is not a special type of debt, and the student loan is just a regular loan – this means that by the end of your college studies you will owe a serious amount of money. In some cases, you will owe money to the US government, and in other cases, to a bank. But regardless of where the money comes from, you will have to pay back the debt with interest. Furthermore, interest will increase over time. So, you will probably have to pay a lot more than what you initially borrowed. In the long run, having a huge amount of debt can sometimes prevent you from renting an apartment, leasing a car, and even from buying a house.

    What are you borrowing against when you get a student loan?

    In general, banks will use collateral to secure the debt. For example, if you get a mortgage loan, the collateral will be the house, and if you get a car loan, the collateral will be the car. So, if somehow, you fail to pay the loan, the bank will simply repossess the house or the car. However, with student loans, the collateral is your future. The general idea is that by getting a student loan, you get an education that will guarantee a better job and a higher income. If that is the case, then you shouldn’t have any problem paying off the debt after you finish college.

    But this is a huge risk for the institutions that sell you the credit, and they are not there to simply make people’s lives better. Their main goal is to make money. So, to prevent people from not paying the student loans, they have made it almost impossible to get rid of – this means that most of the times, a student loan will have so many restrictions that it will be pretty much impossible to declare bankruptcy. The only ways in which people can get rid of a student loan that they cannot pay back is by being permanently disabled or by dying. When talking about student loans, the collateral is your future earnings, which will have to suffer for as long as you will be in debt. According to Forbes, there are more than 40 million people in the US dealing with student loan debt and who collectively owe over $1.5 trillion.

    When you decide to get a student loan, it is extremely important to be informed!

    Looking at all the facts and figures is crucial when deciding whether or not you should get a student loan. For starters, you should know that you will have to sign an MPN (Mastery Promissory Note), which is a legal document through which you become obligated to pay back the loan and all fees and interest that accumulate. Before signing any document, you must always read it carefully, and if you find any details that are not clear, you should always seek assistance from a specialist. Signing without fully understanding the terms is extremely dangerous.

    It is also important to be informed about the best balance transfer cards, which can be a helpful tool along the way. Some of the highest-rated balance transfer cards are Discover it® Balance Transfer, HSBC Gold Mastercard, and BankAmericard credit card.

    Post66Co-founder

    Miruna Secuianu is the Co-founder of Post66, a social media management platform for businesses. Miruna is also an experienced freelance writer passionate about digital marketing, finance, and technology trends.

    Apply to Become a Contributor

    https://gomedici.com/quick-guide-get-student-loan/

    The FinTech Chemist: Blue Vs. Red Pill – State of Neo-Banks in the US

    https://gomedici.com/fintech-chemist-blue-red-pill-neo-banks-usa/

    Studying the properties and composition that make up the FinTech ecosystem

    Welcome to this week’s industry analysis with the FinTech Chemist. While I may not be literally mixing solutions and preparing reagents, I am studying and testing out the latest and greatest in FinTech. My most recent experiment has led me down the not so linear path of neo-banks, not to be confused with Neo from *The Matrix. *Although a fully digital bank does sound a bit Matrix-esque… But I digress.

    The concept of neo-banks is said to have truly started in 2009, with the UK as the standout. The FinTech-meets-science-geek in me not-so-secretly enjoys the fact that some of the first players were Monzo, Starling, and Atom Bank. While places like Europe and Australia have embraced these new challenger banks, the US still lags. However, are they finally ready for the spotlight?

    When it comes to testing a new concept, it is best to follow the scientific method:

    1. Make an observation

    2. Ask a question

    3. Form a hypothesis, or testable explanation

    4. Make a prediction based on the hypothesis

    5. Test the prediction

    **Make an observation: **We all remember the financial crisis of 2008. What started with a subprime mortgage crisis in the states, led to a full-blown international banking crisis with the collapse of the investment bank Lehman Brothers in September 2008. Observation? Scarred and unhappy people were going to shun the larger banks in favor of smaller, disruptive competitors.

    **Ask a question: **Why didn’t consumers immediately jump at the chance to embrace digital-only, mobile-forward banks?

    **Form a hypothesis: **While the US has seen more and more challenger banks pop up, there still seems to be a trust gap. Lately, the US seems keener to build solutions around payments, lending, and investing, not opening an account with an unknown name or brand. Consumers still seem to gravitate towards the incumbents because the already-established players seem to be enjoying the best of both worlds. They’ve been working hard to adjust their full-service models *with *digital banking. Neo-banks are also facing the reality of now needing to be profitable. While the majority, such as Chime and BankMobile, have been successful in signing up millions of users, the trick is holding onto them while generating a profit.

    **Make a prediction: **Charles Keenan said it best, “While mobile banking startups might be perceived as a threat to larger banks, they still have yet to show they can make a profit.” In the US, there are around 40 digital banks. It’s shocking that more haven’t cropped up, but that’s because we’re seeing US startups join banks, not challenging them. Banking and payments consultant Faisal Khan stated, “However, it will take more than a better customer experience enabled by technology to motivate customers to open an account or switch from their current bank, despite their general dissatisfaction with the current financial system. These new experiences need to focus more on customer behavior – something banks get, but startups need to work on more. What will ultimately make a digital bank stand out from legacy banks that are improving digitally is the way it handles data.”

    **Test the prediction: **While we’re clearly still in a testing phase in the US, I genuinely believe millennial are at the nucleus of this phenomenon. According to a Gallup poll, millennials are 2.5 times more likely than Baby Boomers and 1.5 times more likely than Gen Xers to switch banks. According to an article in *The Balance, *“The primary appeal of neo-banks, particularly for millennials, is their streamlined and tech-centered approach. Neo-banks offer mobile banking, but they can go beyond the standard features and offer things like faster loan approval and funding compared to regular banks, low or no banking fees at all, broader ATM network access or ATM refunds and built-in money management & budgeting tools that give millennial banking customers more control over their finances.”

    While neo-banks are still evolving, they at least seem to be having a positive impact on how consumers manage their finances for the time being. Now, onto my next scientific… I mean FinTech hypothesis adventure. Also, as always, remember to take your vitamins!

    MEDICIDirector of Multimedia

    Shannon Rosic is the Director of Multimedia at MEDICI, where she manages video, creative projects as well as marketing efforts. She is best-known for pioneering ways of integrating FinTech platforms with video through custom storytelling.

    Prior to joining MEDICI, Shannon spent five years at InvestmentNews, a leading news source for financial advisors. She served as a specialist that helped drive the development and implementation of integrated content projects. She also launched a custom FinTech video series as her alter ego: Gadget Girl.

    Shannon holds a B.A. in Mass Communication from Miami University, Ohio (never to be confused with Florida). She lives in Denver, Colorado with her husband and miniature Australian shepherd. All three of them enjoy horseback riding, hiking, and all the outdoor activities the West has to offer.

    Apply to Become a Contributor

    https://gomedici.com/fintech-chemist-blue-red-pill-neo-banks-usa/

    Banks & Banking: Digital Transformation and the Hype of FinTech

    https://gomedici.com/banks-banking-digital-transformation-hype-fintech/

    Business impacts, new frameworks, and managerial implications

    The rise of the ever-growing relationship between technology and financial services is bringing significant changes to the banking industry, which is becoming a battleground where competition is developing to be increasingly multifaceted. Shifting market conditions, customer needs, the entrance of new players & digital technologies, along with new regulations, are reshaping the whole industry and financial intermediation as well. Digital transformation is not only about technology but also about change, which is beneficial and desirable. In this scenario, FinTechs are becoming one of the main game-changers in the financial services market by leveraging the inherently interconnected nature of finance.

    Even though technology is widely spreading in the industry, the human element will likely remain key in the future of banking as it is a ‘people business’ (Omarini, 2015). Visions, strategies, business models, and actions can be effective by consciously stepping away from the noise. Both banks and FinTechs will have to face ever-changing conditions and develop the ability to balance short-term targets and long-term goals, as well as short-term moves and a longer-term vision.

    All of this is increasing the need to have a resilient financial system, which helps to keep up the customer’s trust in developed countries and create an environment conducive to financial inclusion in the developing ones.

    The book Banks and Banking: Digital Transformation and the Hype of FinTech intends to pursue four main goals:

    1. To highlight the clues for understanding the changes financial services industries have undertaken in the most developed countries.

    2. To picture the role FinTechs are playing in the market and the financial services industry, as well as view the next challenges they will face.

    3. To outline the ways banks are reacting to participate in a fragmented, highly competitive, and open landscape.

    4. Finally, to highlight the innovative attempts which the financial services industry is undertaking to change, transform, and evolve itself.

    This book came about from the idea that enriching the perspectives through which we look at things makes each of us more aware of our decision-making processes – it helps us try to develop a more in-depth critical thinking approach to view why, when, and how to take the next step in our choices.

    This book’s subject matter can be summarized in the following 10 points:

    1. Banking will remain a ‘people business’ (Omarini, 2015, Palgrave McMillan), which means that certain factors – such as trust, distinct professional knowledge, soundness, and a strong culture of fact-based decision-making – will keep their relevance.

    2. The real challenge is financial innovation. The challenge lies in knowing not just where innovation will take off, but also where it is going to land (think of Open Banking).

    3. APIs are not the main issue in the next banking business game – they are the ways effective and robust strategies can get in touch with one another. Vision and strategy still remain the main issues.

    4. Invisible banking is taking shape in the market, and an emphatic need for intermediation exits. Are we sure customers want it, though?

    5. If data is the new oil, it needs humans to refine it and make it meaningful for customers.

    6. In-depth financial and banking knowledge is fundamental and strong competencies on both old and new rules are required. They are all crucial to step into the market and move ahead.

    7. Both banks and FinTechs have to move beyond seamless end-to-end experiences.

    8. The next step, as well as the future challenge, is to create a true differentiating strategy for both banks and FinTechs to make their business less replicable and resilient over the long term.

    9. Everything seems to be moving from unbundling and rebundling products & processes to fragmenting old value chains while framing platforms and ecosystems where stakeholders co-evolve.

    10. The business is still complex, and its complexity has increased. It has been exacerbated by digital technologies and new frameworks developed in the financial market so far.

    In conclusion, the message is to step away from the noise in the market and move straight towards true changes useful to the industry, while balancing competition, innovation, and financial soundness. Under this scenario, regulators and supervisors ought to play a key role in being wise and fair agents of change.

    Bocconi UniversityResearcher & Adjunct Professor – Department of Finance

    Anna Omarini is a tenured researcher & adjunct professor in the Department of Finance in Bocconi University, Milan (Italy).

    Anna is the director of the following courses:

    Apply to Become a Contributor

    https://gomedici.com/banks-banking-digital-transformation-hype-fintech/

    The Mobile Component Is Growing Across US Financial Services

    https://gomedici.com/mobile-component-growing-across-us-financial-services/

    The revolution in FinTech has changed the way banks and payment companies are retaining their customers. For most technological innovations in the financial industry, mobile has acted as a base platform for the entire infrastructure. Mobile payments, due to its penetration potential and easy-to-access platform, has the ability to capture the underbanked population as well. Globally, the mobile-first FinTech market is evolving at a high rate, and the adoption of mobile payments & banking has increased significantly over the years. According to a report, the global mobile payment technology market is expected to reach approximately $3,371.6 billion by 2024. Looking at the growth of this market in the US in particular, we found that 55 million people transacted through mobile in 2018 and the number is expected to increase to 61.6 million in 2019. The infographic below illustrates the adoption of mobile devices across different financial domains in the US:

    mobile-component-growing-across-us-financial-services-1.jpg

    • The number of mobile transactions and users have consistently increased alongside its growing popularity. The large banks in the US have a higher number of active mobile users than any other segment. In 2018, JPMorgan Chase had 67% of active mobile users. Similarly, out of their total digital banking customers, Wells Fargo and Bank of America had 77% and 74% of active mobile users, respectively.

    • Bank of America experienced a steady growth of 20% from 2017 to 2018 with respect to their active mobile users.

    • Out of all the transactions processed on Amazon Pay, approximately 23% were mobile transactions in 2018.

    • Approximately 70% of Western Union’s digital transactions globally now happens on mobile devices.

    • About 41% of the total payments processed on PayPal is done on mobile. The number has grown by 109% since 2017.

    • In the United States, Starbucks’ mobile payment application accounted for 14% of all US transactions in Q4 2018.

    • Mobile payments accounted for an estimated 42% of Starbucks’ total transactions in Q4 2018.

    According to a report, the mobile payment industry in the United States is expected to record a CAGR of 6.0% to reach $1,074,071.4 million by 2025. It is clear that mobile components have been enjoying tremendous momentum in US financial services industry – this will continue to grow further as smartphone adoption & usage increases and more businesses start harnessing the potential of mobile applications.

    MEDICI

    Ravi conducts research across all FinTech domains and has in-depth experience in the areas of consulting & research. He also has a deep understanding of talent mapping solutions and has previously worked with Fortune 500 companies to solve their talent-related problems. Ravi is especially interested in Cryptocurrency and Blockchain. He has helped various companies understand upcoming technologies in the FinTech domain across the globe. He truly believes that the two things that matter the most in any business is ‘money’ and ‘talent’ and loves solving problems related to these two drivers.

    Shivangi is a FinTech enthusiast and an avid researcher who spends her time learning, researching, and writing about market trends, traction & disruptions in the industry. She focuses on understanding FinTech companies and various emerging technologies impacting the business model. She has been active in the financial services space for 1.9 years.

    Apply to Become a Contributor

    https://gomedici.com/mobile-component-growing-across-us-financial-services/

    Frenemies: 20 Top Funded FinTechs That Work With Banks

    https://gomedici.com/frenemies-20-top-funded-fintechs-that-work-with-banks/

    For many years, FinTech and banks were assessed from the perspective of the zero-sum game. While FinTech firms were pegged as disruptors, banks were driven to make a move towards agility or face serious market challenges driven by innovative players. However, in the last two years, things have become amicable between FinTechs and banks. While some FinTech players still believe that it is important to challenge banking at large and find their niche with exceptional service offerings, a considerable number of FinTech players have found clients in the banking community.

    Automated invoices, accounting services for business banking clients, data, analytics, white-label software solutions, cloud-based communications, and other such offerings from FinTech players are being welcomed with open arms. Here is a list of 20 FinTech firms that have found friends in the banking business:

  • AvidXchange is a United States-based company founded in 2000, which has raised $545.3 million in total funding. AvidXchange provides automated invoice and payment processes for midmarket companies spanning multiple industries, including real estate, financial services, energy, and construction. Its main clients include Bank Atlantic, Branch Properties LLC, Canderel, CDS Monarch, Colliers International, Community Trust Bank, Duke Realty, and others.

  • Kabbage is a United States-based company founded in 2009, which has raised $488.7 million in total funding. Kabbage provides SMBs with a line of credit by evaluating various alternative data parameters. It leverages data generated through business activity such as accounting data, online sales, shipping, and dozens of other sources to understand performance and deliver fast, flexible funding in real time. It also provides white label platforms to companies looking to start their own lending platforms. Recently, Kabbage was selected for the 2019 Forbes FinTech 50 startups list. Its client base includes companies from the banking and electronic payments industry.

  • Klarna is a Sweden-based company founded in 2005, which has raised $356 million in total funding. Klarna provides payment solutions for e-commerce customers and offers integrated mobile payment & checkout platforms that allow customers to pay after they receive the goods instead of when they order them. Recently, the company received a full banking license by the Swedish Financial Supervisory Authority and is planning to launch P2P payments services. Its client base includes retail banking players and merchants. Its main clients include Aargauische Kantonalbank, Baloise Bank, BancaStato, Banco Alcala, Cler, Safra Sarasin, VP Bank, and others.

  • Avaloq is a Swaziland-based company founded in 1991. Avaloq is a financial services provider for wealth management, the financial industry, and universal & retail banks. It offers business & IT outsourcing and application management services. Its main clients include Aargauische Kantonalbank, Baloise Bank, BancaStato, Banco Alcala, Cler, Safra Sarasin, VP Bank, and others.

  • ThoughtSpot is a United States-based company founded in 2012, which has raised $306 million in total funding. ThoughtSpot offers an AI-powered search and analytics platform for enterprises. The platform analyzes complex, large-scale enterprise data and provides insights with a single click. It provides analytics solutions to retail, communication, healthcare & life science, financial service, and manufacturing sectors. Its main clients include Batteries Plus Bulbs, Scotiabank, PC Connection, Amway, Chevron, Capital One, and others.

  • Symphony is a United States-based company founded in 2014. Symphony provides a secured cloud-based communication & content-sharing platform which connects markets, organizations, and individuals. It helps them to improve workflow productivity while maintaining global security and regulatory compliance. Recently, Symphony was selected for the 2019 Forbes FinTech 50 startups list. Its main clients include Citi, CLSA, Jefferies, J.P Morgan, Morgan Stanley, and others.

  • Mu Sigma is a United States-based company founded in 2004, which has raised $211 million in total funding. Mu Sigma is a decision science & analytics firm that helps companies institutionalize data-driven decision making and harness big data. Its main clients include commercial banks, US healthcare companies, global pharmaceutical companies, and others.

  • UiPath is a Romania-based company founded in 2012, which has raised $1 billion in total funding. UiPath provides a robotic process automation software platform to help organizations to efficiently automate their business processes such as HR, finance, accounting, and operations, etc., by leveraging computer vision technology. It has over 200 customers globally in industries ranging from banking, financial services, and insurance.

  • OneSource Virtual is a United States-based company founded in 2008, which has raised $165 million in total funding. OneSource Virtual (OSV) is a leading Business Process-as-a-Service (BPaaS) provider, which offers deployment, consulting, training, and in-application payroll, benefits, and application management services (AMS). Its main clients include HKS, Primerica, First United Bank, GoPro, ASI, Genband, Uber, and others.

  • Blend is a United States-based company founded in 2012, which has raised $160 million in total funding. Blend offers a digital lending platform for loan officers, mortgage lenders, mortgage servicers, portfolio analysts, and mortgage investors, enabling them to manage their loan origination and customer experience. It is based on analytics and cloud security, which in turn helps them to elevate their business digitally. Recently, Blend was selected for the 2019 Forbes FinTech 50 list. Its main clients include LendUS, Blue Hills Bank, Mountain America Credit Union, Camden National Bank, and others.

  • SpringCM is a United States-based company founded in 2005, which has raised $123.6 million in total funding. SpringCM is a secure cloud platform that optimizes the generation, workflow, and archiving of business documents across an organization. It manages contracts and all types of documents across desktop, mobile, and partner applications like Salesforce. Its suite of workflow automation tools eliminate manual & repetitive tasks and includes document management, sales contract lifecycle management (CLM), and sales content management, thereby providing a holistic view of customer relationships and enabling users to respond to stakeholder needs. Its main clients include Valvoline, Qlik, IKEA, ING Bank, Addepar, and others.

  • Ionic Security is a United States-based company founded in 2011, which has raised $162.4 million in total funding. Ionic Security was formerly known as Social Fortress. The company provides a distributed data protection platform to encrypt, control, and protect data across devices, cloud applications, and the network. Ionic Security takes a comprehensive approach to protect distributed data in today’s borderless enterprise without proxies or gateways or changes in user behavior. Its main clients include banking, insurance, government, retail, services, and manufacturing companies.

  • Dynamics is a United States-based company founded in 2008, which has raised $110.7 million in total funding. Dynamics produces next-generation interactive payment cards that utilize programmable magnetic stripes to communicate dynamic information to magnetic stripe readers that are used in day-to-day payment card transactions. Its main clients include banks, merchants, and retail consumers.

  • Kony, Inc. is a United States-based company founded in 2007, which has raised $109.4 million in total funding. Kony empowers you to compete in mobile time by rapidly delivering multi-edge mobile apps across the broadest array of devices and systems. Its main clients include Warburtons, ESB Networks, Atena, Medical Mutual, CIBC, QRS, Scotiabank, and others.

  • Digital Asset Holdings is a United States-based company founded in 2014, which has raised $107.2 million in total funding. Digital Asset Holdings is a technology company that provides tools that use distributed ledgers to track & settle both digital and mainstream financial assets in a cryptographically secure environment, where counterparty risk is minimized and settlement times are drastically reduced. It offers software for various market segments, such as loans, securities, derivatives, and foreign exchange. The company has offices in New York, London, Zurich, Budapest, Sydney, and Hong Kong. Its main clients include banks, dealers, exchanges, central securities depositories, and others.

  • Attivio is a United States-based company founded in 2007, which has raised $102.1 million in total funding. Attivio is a cognitive search and insights platform for enterprises which helps in making better decisions from the data information. Attivio offers the Active Intelligence Engine that connects all types of data and delivers it in a single view, revealing the hidden relationships, insights, and intelligence that allows customers to take business decisions. Its main clients include UBS, HSBC, Citi, Cisco, GE Aviation, and others.

  • CompareAsiaGroup is a Hong Kong-based company founded in 2015, which has raised $95 million in total funding. The CompareAsiaGroup is an online comparison platform for banking and insurance products in the Asia-Pacific region. It helps people across Asia to compare and select the most suitable financial product as per their needs. Its main clients include Allianz, American Express, ANZ, AXA, BNI, CIMB Group, Citibank, DBS, and others.

  • Ripple is a United States-based company founded in 2012, which has raised $93.6 million in total funding. Ripple provides infrastructure and transaction protocols that enable banks to offer financial settlements at lower costs via a distributed network – this is done by allowing banks to transact directly, instantly, and with the certainty of settlement. The Ripple settlement infrastructure or the Ripple protocol enables two critical functions: a common ledger to connect banks & payment networks and a real-time funds-exchange to settle transactions. Recently, Ripple was selected for the 2019 Forbes FinTech 50 startups list. Its main clients include Standard Chartered, UniCredit, Bank of America Merrill Lynch, RBC, Westpac, and others.

  • ThreatMetrix is a United States-based company founded in 2005, which was acquired by Relx in January 2018. The company secures businesses and end-users against account takeover, payment fraud, and fraudulent account registrations resulting from malware and data breaches. Its main clients include Rabobank, Trip Advisor, Yandex, paysafecard, and Skrill.

  • Tandem is a United Kingdom-based company founded in 2013, which has raised $75.7 million in total funding. Tandem is a banking tech platform that provides consumers with digital banking services like current accounts, credit cards, loans, etc. It received its banking license in 2016 and launched its services in beta version for more than 10,000 customers. Currently, the company is in the product development stage and is planning to roll out its service in early 2017. Its main clients are bankers.

  • https://gomedici.com/frenemies-20-top-funded-fintechs-that-work-with-banks/