Every company will be a Fintech, Visa allows payment settlements using crypto, Dimon's threat & more



Happy Thursday!



In this edition:


  • Every Company Will Be a Fintech Company

  • Exclusive-Visa moves to allow payment settlements using cryptocurrency

  • Who is getting rich from Europe’s €50bn in fintech IPOs this year?

  • Jamie Dimon: Fintech poses ‘big time’ threat to JPMorgan and major banks

  • The Work from Home Effect on Banks and Fintechs




Every Company Will Be a Fintech Company



Nearly every company will derive a significant portion of its revenue from financial services. Delving into the infrastructure that’s enabling this transformation and, more importantly, how that’s going to fundamentally change banking as we know it. Every company, even those that have nothing to do with financial services, will have the opportunity to benefit from fintech for the first time.


Start-ups will be able to launch companies faster and more cheaply. Existing financial services institutions will be able to introduce new products quickly—and spend less on IT maintenance. And most importantly, this means more choices, better products, and lower prices for consumers.


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Exclusive-Visa moves to allow payment settlements using cryptocurrency



Visa Inc said it will allow the use of the cryptocurrency USD Coin to settle transactions on its payment network, the latest sign of growing acceptance of digital currencies by the mainstream financial industry.


Visa’s move comes as major finance firms including BNY Mellon, BlackRock Inc and Mastercard Inc have embraced some digital coins, sparking predictions that cryptocurrencies will become a regular part of investment portfolios.


“We see increasing demand from consumers across the world to be able to access, hold and use digital currencies and we’re seeing demand from our clients to be able to build products that provide that access for consumers,” Cuy Sheffield, head of crypto at Visa, said.

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Who is getting rich from Europe’s €50bn in fintech IPOs this year?



It’s set to be a busy year for the public markets. Following in the recent footsteps of Deliveroo, Cazoo and Huuge, 40 European tech companies are looking to go public, according to a dataset from Dealroom, boasting a combined valuation of €115bn.


While only 6 of the 40 are FinTech's, they take up a huge 43% of the combined market valuation at €50bn. The FinTech's also attracted 38% of that group’s funding, driven by outliers like Klarna — Europe’s second most valuable unicorn.


These six companies — Wise (formerly TransferWise), Klarna, Checkout.com, WorldRemit, Trustly and Allfunds — are looking to list soon, from London to New York to Amsterdam.


It’s an interesting environment to go public in. Tech stocks have been buoyant throughout the pandemic and alternative methods of listing, using special purpose acquisition companies (SPACs) or Spotify-style direct listings, are on the rise.


We take a dive into the companies which are set to float. Where they are opting to list? How are they going to list? And which investors are set to cash in?


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Jamie Dimon: Fintech poses ‘big time’ threat to JPMorgan and major banks



Silicon Valley’s technology prowess poses a major competition threat to Wall Street.


The US investment bank’s chairman and chief executive wrote in his annual letter to shareholders that banks are now facing an attack “from multiple vectors”, as fintech firms and big tech companies size up the sector.


“As the importance of cloud, AI [artificial intelligence] and digital platforms grows, this competition will become even more formidable,” Dimon wrote on 7 April. “As a result, banks are playing an increasingly smaller role in the financial system.”


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The Work from Home Effect on Banks and Fintechs



In 2020, the world as we know it was turned upside down by the Covid-19 pandemic. Every aspect of our lives was changed, including our professional work lives. Going into the office was no longer a viable option, meaning everyone who could, was asked to work from home (WFH). As lockdown restrictions have eased and people have had the chance to return to their “normal” lives, workers have noticed a strong difference in their work ethics based on where they’re located.


Sleepstandards.com, a site dedicated to giving impartial, practical advice to its consumers on how to improve their sleeping habits, published its survey’s findings on how working from home impacted employees across a variety of industries.


Additionally, both employees who preferred working from home and those who preferred working from the office found distractions to be a big problem with their degree of productivity. While 54% have higher productivity thanks to fewer distractions at their offline office, 58% are less productive due to more distractions at their physical workplace. 44% of employees found they were able to better communicate with their co-workers and therefore be more productive when working in the office.


Communication, and lack thereof when working from home, is a factor many companies began to realise was affecting the efficiency of its employees.


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Thank you for the time!




Fasanara Fintech Weekly