Convergence of Identity and Payment; Why become a SEPA participant; A guide to types of payment methods;
In this Fintech Wrap Up, we explore three major trends shaping the industry: wealth management innovations in banking, Africa’s booming BNPL ecosystem, and the rise of stablecoins as digital cash.
Insights & Reports:
1️⃣ Cracking the wealth code: Strategies for neo and universal banks
2️⃣ ASEAN Bilateral Links and Project Nexus
3️⃣ 5 rules for token launches
4️⃣ Africa’s Consumer BNPL Ecosystem
6️⃣ Convergence of Identity and Payment
7️⃣ A guide to types of payment methods
TL;DR:
Welcome to the latest edition of Fintech Wrap Up! This time, we’re diving into some exciting shifts in fintech, payments, and banking.
First up, neo and universal banks are cracking the code to wealth management for the mass affluent. With a smart blend of in-app wealth products, seamless integration into user journeys, and personalized financial education, banks are building confidence and helping customers invest more easily. Over in the ASEAN region, the focus is on cross-border payments. Bilateral links like Singapore’s PayNow with Thailand’s PromptPay are leading the charge, paving the way for cheaper, faster P2P and P2M transactions — though they may need a multilateral boost soon with projects like Nexus.
Next, token launches are facing scrutiny from the SEC, but blockchain builders aren’t backing down. While regulators want stricter oversight, Web3 projects are pushing to prove that decentralized models can foster transparency and equity. On another front, Africa’s BNPL market is expanding rapidly, driven by a demand for consumer credit and innovations like biometric authentication. And let’s talk stablecoins — these “internet-native” currencies are reimagining cash, creating an inclusive, programmable financial system that moves money faster and more cost-effectively.
Finally, the convergence of digital identity and payment systems in the EU is groundbreaking. With the European Digital Identity Wallet, we’re seeing a shift towards a seamless, privacy-focused digital landscape that could eventually support everything from age verification to cross-EU payments.
Catch you in the next one!
Insights & Reports
Cracking the wealth code: Strategies for neo and universal banks
In today’s market, five key models for wealth management products have proven highly effective in catering to the mass affluent segment. Each of these models leverages technology and personalisation to deliver cost-effective, accessible, and efficient wealth management solutions to the mass affluent demographic.
Three broad strategies to evolve customers into accessing wealth-building opportunities
I. Offer wealth products within the app
Banks can expand their offerings to include wealth-building tools and services such as investment accounts, robo-advisory services, mutual funds, stocks, and bonds within their existing platforms to allow customers to start investing with just a few clicks.
Personalised investment portfolios tailored to individual risk profiles and financial goals can increase customer confidence in their investment decisions. Bundling these wealth products with existing services provides a comprehensive financial solution that encourages users to grow their wealth over time.
II. Seamlessly integrate with current set of user journeys
To facilitate a smooth evolution from basic CASA to wealth-building services, banks should integrate these offerings directly into their existing customer experience. Simplified, intuitive interfaces and streamlined processes can guide users from everyday banking to more advanced financial planning.
ASEAN Bilateral Links and Project Nexus
The ASEAN region leads in the development of cross-border RTP links, boasting 18 live, under development, or announced initiatives. The bi-lateral link between Singapore’s PayNow and Thailand’s PromptPay, launched in 2021, has been notably successful, capturing half of the corridor’s P2P volume. Notably, these platforms have developed interoperability between the QR standards and alias directories within their respective markets.
Given the significant presence of immigrants and travelers in the region, the primary focus of these bilateral links is to facilitate faster and more affordable P2P remittances and person-to-merchant (P2M) payments for international visitors. These use-cases are setting the foundation for a likely expansion into an array of use-cases, such as P2M for e-commerce and lower value B2B and B2C payments.
Driving the development of these cross-border linkages are ASEAN central banks and regulators, motivated by four pivotal objectives that include gaining control over critical infrastructure, enhancing payment efficiency and transparency, strengthening monetary sovereignty, and aligning with the G20 objectives to support digitization and financial inclusion.
Curated News
PayPal Completes Its First Business Transaction Using Stablecoin
PayPal completed its first business payment using its proprietary stablecoin as a way to demonstrate how digital currencies can be used to improve often-clunky commercial transactions.
