The post Telangana fintech entrepreneur honoured with icons of UAE award appeared first on AIBC.
]]>Rachakonda, a native of Godkal village in Nizamabad, is the founder and chief executive officer of the Mensa Group, a fintech and investment banking solutions firm based in Dubai. The award solidifies Rachakonda’s influence in the global financial landscape, especially in the Gulf region.
He holds a degree in computer science. He later transitioned into the financial sector after recognising the potential for technological disruption in traditional banking systems.
Rachakonda founded the Mensa Group in 2015. It was initially a boutique investment banking advisory firm, which quickly evolved into a leading fintech solution provider in the region. The company is involved in investment and financial technologies in Dubai and other parts of the world.
The company offers a variety of financial services supported by state-of-the-art financial technologies, such as capital raising, asset management, mergers and acquisitions advising, and financial planning.
Under his leadership, the group has specialised in investment banking solutions, fintech innovations, and providing financial services to businesses and individual investors across the Middle East, Asia, and Africa.
Mensa Group leverages fintech innovations such as blockchain for secure transactions, AI for predictive analytics, and big data for enhanced decision-making.
In his acceptance speech, Rachakonda said, “This award is not just for me but for the entire Indian fintech community that continues to innovate and disrupt traditional financial models. Dubai is a melting pot for fintech, and I am proud to be a part of this transformative journey.”
Speaking to a media house, Rachakonda said, “It is a privilege to be recognised among many distinguished icons.”
The Icons of the UAE Award is an exclusive initiative by the?India Today Group?and?NKN Media.?This event celebrates the exceptional success stories and remarkable achievements of leading businessmen across diverse sectors in the UAE.
The awards event honours 13 visionary business icons in the UAE, delving into their inspiring journeys of success. Rachakonda receiving the award is an acknowledgement of his achievements and signals the global relevance of fintech innovations emerging from the Gulf region.
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]]>The post UAE surpasses Germany and Hong Kong as top tech destination appeared first on AIBC.
]]>The survey, conducted across countries like Singapore, Hong Kong, Vietnam and India, finds that the Middle Eastern country has substantially improved as a preferred destination for tech talent. It finds that about 45 percent of respondents are willing to relocate to the UAE.
This competes closely with 46 percent of respondents looking to relocate to Singapore, while the UK interests 57 percent of the surveyed professionals.
This establishes the Middle Eastern country as a prime location for tech professionals, competing closely with traditional tech hubs like the UK and Singapore.
Tarik Chebib, the CEO of Capital.com, Middle East, said about the findings, “With 8 in 10 respondents from our recent survey recognizing the UAE as a competitive tech hub, it’s clear that the region is gaining momentum as a favorable destination for tech talent.
“Asia’s tech professionals have traditionally gravitated to cities in the UK, the US, and Singapore to further their careers, so it’s encouraging to see the UAE stand shoulder-to-shoulder with this cohort and get the recognition it deserves as an attractive location to live and work.”
The important role of the government in improving UAE’s tech industry profile was also highlighted by the survey. About 93 percent of respondents reiterated that the UAE’s governments’ focus to improve the country’s tech ecosystem played a key role for such a change.
A number of key aspects solidifying UAE’s position as a desirable relocation choice for the tech talent include advanced banking systems, visa provisions, and high-quality healthcare.
The survey finds that 47 percent of the surveyed professionals are actively seeking relocation. The UAE could potentially continue to improve its trajectory as a leading tech destination if it continues to retain international talent and positively harness this growing interest.
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]]>The post Start-up Ziina innovates with UAE Central Bank licence appeared first on AIBC.
]]>The SVF licence will empower Ziina to offer a comprehensive suite of financial services. These include business and consumer accounts, peer-to-peer payments, bill pay, external payment link issuance, QR codes for remote point-of-sale transactions, and prepaid card services. Ziina will also serve as a principal member of networks such as Visa and Mastercard, offering Banking Identification Number (BIN) sponsorships. These services aim to support over 557,000 businesses, enhancing operational efficiency and fostering growth.
Small and Medium Enterprises (SMEs) constitute 94 percent of all companies in the UAE and contribute 63.5 percent to the non-oil gross domestic product (GDP). Despite their significant role in the economy, SMEs often face cash flow challenges, primarily due to delayed client payments. Ziina’s expanded services are designed to address these challenges, providing businesses with the necessary tools to enhance operational efficiency and stimulate growth.
The UAE is rapidly transitioning towards a cashless society, with SMEs playing a crucial role in this shift. As per estimates, 60 percent of consumers plan to go cashless by 2024. The digital payments market in the MENA region is projected to reach $9 billion by 2028, marking a 124 percent increase from 2021. This growth is driven by convenience and accessibility. Current trends in the UAE indicate a strong preference for credit cards and digital wallets, particularly for online transactions. The popularity of payment options like Buy Now Pay Later is on the rise, aligning with the expanding e-commerce sector.
Faisal Toukan, CEO and Co-Founder of Ziina, underscored the significance of the license, stating, “Securing this license is a monumental step for us, reinforcing our commitment to the highest standards of compliance and security. The UAE’s Central Bank has outlined a bold vision for financial technology, and we are thrilled to work closely with their team to support this vision. This regulatory approval allows us to expand our services further, strengthening our role as a dedicated financial partner for SMEs—the true backbone of the UAE’s economy—by offering them a fast and secure way to send, receive, and grow their money.”
As part of the UAE’s ambitious digital economy strategy, the country aims to double the digital economy’s contribution to its GDP from 9.7 percent in 2022 to 19.4 percent within the next decade. This strategy demonstrates the UAE’s commitment to becoming a global hub for digital innovation and economic growth. Ziina’s growth is fuelled by the UAE’s robust infrastructure, extensive connectivity, and dynamic entrepreneurial environment. The Central Bank’s nine-pronged Financial Infrastructure Transformation (FIT) Programme, which includes initiatives like a domestic card scheme and an instant payments platform, aims to support financial inclusion and enable a cashless society through digital payments.
Ziina’s suite of financial services is designed to support businesses at every stage, fostering an ecosystem conducive to long-term success and growth. The Ministry of Economy projects that the number of SMEs will increase to over 1 million by 2030, further highlighting the importance of dependable financial services.
In addition to securing the licence, Ziina is reportedly in the process of raising a substantial financing round from institutional investors. This funding is intended to support Ziina’s growth strategy throughout the Middle East, further strengthening its ability to offer essential financial services to the region’s economic landscape.
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]]>The post Unseen challenges of Fintech and a digital economy appeared first on AIBC.
]]>The inability to make card or contactless payments is a daily reality for millions of UK adults who predominantly use cash. In fact, there was a surprising 66 percent increase in the number of people primarily using cash for everyday spending last year, marking the first rise in four years.
These statistics, released by UK Finance, coincide with the Financial Conduct Authority’s plans to ensure future access to cash. While this may offer some relief to the most vulnerable and elderly consumers who rely heavily on cash, it does not address their limited access to online banking and other digital services.
Adrian Roberts, Deputy Chief Executive of Link, which operates the UK’s ATM network, said, “We’re not ready to go cashless until digital payments are completely robust, reliable, and accessible to everyone in a way that meets their needs.”
As traditional bank branches disappear, with a loss of 6,000 in the past nine years, the regulator is turning to shared banking hubs to fill the void. By the end of this year, 100 such hubs are expected to be operational, with plans for an additional 250. These hubs ensure access to cash withdrawal and deposit facilities, but new legislation does not mandate access to other banking services, leading to a broader issue of digital exclusion.
According to UK Finance, 60 percent of all adults used mobile banking in 2023, leaving a significant 40 percent who did not. Banking hubs offer face-to-face interaction with various high street lenders, but customers have expressed frustration with the limited services available.
The cost of managing money online is another barrier. The need for a smartphone or tablet capable of running a bank’s app, coupled with “data poverty” where only 5 percent of eligible customers use social tariffs, cheaper mobile and broadband packages available to benefit claimants, exacerbates the issue.
Considering the 13 million Britons with very low digital capability, half of whom are over 70, it becomes clear why the poorest in society are stuck with cash – it’s not necessarily a choice.
Natalie Ceeney, Chair of Cash Access UK, states that banks are voluntarily collaborating to overcome IT issues and provide a commonality of hub services. However, digital exclusion impacts more than just financial management; it affects life in many other ways.
For instance, those excluded from the digital world are less able to save money by comparing prices online for various goods, services, and credit products. They are also excluded from innovations in digital payments. Last year, one in seven people in Britain used ‘buy now, pay later’ schemes to split the cost of a large payment into several interest-free monthly installments. When used responsibly, this can be a lifeline for those on tight budgets who lack the creditworthiness to borrow elsewhere.
Access to public services is another area where digital exclusion has a significant impact. State benefits such as universal credit are “digital by default”, undoubtedly contributing to the estimated ￡7.5 billion that goes unclaimed each year. Phone helplines are often understaffed, and taxpayers who needed to phone spent the equivalent of 800 years on hold in the 2022-23 tax year.
The recent cyber outage wreaked havoc on the UK’s healthcare system. Most GP surgeries have prioritized digital appointment booking systems over phone lines, offering patients a convenient way to obtain test results and repeat prescriptions. Yet again, the digitally excluded are left with an inferior system.
The recent CrowdStrike debacle may be over, but for millions of UK adults, the digital outage continues.
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]]>The post Revolut secures UK banking licence after a three-year wait appeared first on AIBC.
]]>Revolut, a London-based fintech firm, has successfully obtained a banking license in the UK, marking the end of a three-year regulatory battle and paving the way for its expansion plans in its home market. The company, which initially applied for the licence in early 2021, announced that it had received the permit from the Prudential Regulation Authority (PRA).
The application process was fraught with challenges, including an auditor’s warning that they could not fully verify the revenue figures in the group’s 2021 accounts. Despite these hurdles, Revolut, which already holds a European banking licence from Lithuanian authorities and was granted one in Mexico this year, remained focused on securing a UK licence.
The PRA’s approval will enable Revolut to broaden its product and service offerings in its largest market. This is a significant vote of confidence in the company and will enhance its prospects of obtaining banking regulation in other key markets, such as the US.
Nik Storonsky, CEO of Revolut, expressed immense pride in reaching this crucial milestone. Francesca Carlesi, who joined Revolut as the CEO of its UK entity at the end of last year, hailed the license as a significant step forward for both Revolut and its customers.
Revolut received the licence with restrictions, a common practice for new lenders. This will allow the company to develop its UK banking operations before launching them. Revolut, founded in 2015, has approximately 9 million customers in the UK and over 45 million globally.
As a fully-fledged bank, Revolut will be able to offer new products, including mortgages. Its customers will also be included in the Financial Services Compensation Scheme, providing them with deposit protection of up to ￡85,000.
Setting the stage for enhanced services
Revolut, last valued at $33 billion in a 2021 fundraising round, is currently in discussions to sell about $500mn worth of shares in a deal that would value it at approximately $40 billion. Its aggressive overseas expansion has made it significantly larger than other lenders to which the PRA has granted a UK license in recent years.
Revolut faced several obstacles and intense negotiations in its journey towards approval. Regulators awaited a clean audit of Revolut’s full-year accounts after auditor BDO warned last year of a risk of material misstatement in the bulk of its 2021 revenue. The Bank of England also demanded that Revolut simplify its share structure to be regulated as a bank, leading to a dispute with Japanese investor SoftBank that was eventually resolved.
In 2020, Revolut brought in city veteran Martin Gilbert as chair to help manage its relationship with regulators. Last year, it lost the head of the UK entity that applied for the licence and its chief financial officer. The PRA declined to comment on the matter.
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]]>The post UAE’s Asseta Holding purchases UK-based Bux Financial appeared first on AIBC.
]]>BFS, which is licensed by the UK’s Financial Conduct Authority (FCA), is an investment firm that specializes in providing Contracts for Difference (CFDs) and spread betting services to both retail and professional clients.
This sale follows Bux Holding’s previous divestment of its Dutch digital investment business, Bux, to ABN Amro last year for an undisclosed amount. Bux is a mobile app that allows commission-free investing in a variety of companies and operates in several European markets, including the Netherlands, Germany, Spain, Austria, France, Italy, Ireland, and Belgium.
Bux Holding stated that the sale of BFS is the next step in its divestment strategy. Yorick Naeff, CEO of Bux Holding, explained, “We are in the process of divesting all the remaining regulated subsidiaries of Bux Holding. With the sale of the Netherlands, and now the UK-based business, only the Cyprus-based business remains.”
The acquisition of BFS by Asseta Holding is a significant move in its global expansion strategy and broadening its investment portfolio. BFS will now operate as a sister company of APM Capital.
Disha Rajdev, co-founder of APM Capital, commented on the acquisition, “The UK market is a crucial component of our expansion strategy, and BFS’s strong reputation and client-centric approach align perfectly with our vision.”
Salim Sebbata, CEO of Bux Financial Services Limited ( pictured above), stated that the deal “marks a new chapter for BFS” and will help the firm to “elevate our capabilities and market presence”.
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]]>The post Decline of US Dollar and rise of Bitcoin appeared first on AIBC.
]]>The radical Project 2025 policy plan has set bitcoin on a collision course with gold. Yellen fears that US financial sanctions will diminish the dollar’s role globally as Russia promotes the use of bitcoin and other cryptocurrencies. “The more we have used sanctions, the more countries look for ways to engage in financial transactions that don’t involve the dollar,” Yellen explained to U.S. lawmakers on the House financial services committee.
BlackRock’s CEO, Larry Fink, who led the successful campaign to bring bitcoin spot exchange-traded funds (ETFs) to Wall Street, has issued a warning about the rapid growth of the U.S. debt pile. He expressed concern about the burden this massive spending, which we can’t afford, is placing on future generations. Fink called for global economic growth and strategies to minimize the impact of the deficit on the economy.
Bank of America analysts have warned that the U.S. debt load is set to increase by $1 trillion every 100 days, which could fuel a surge in bitcoin prices. Meanwhile, BlackRock analysts have cautioned about an unprecedented scenario that could impact the bitcoin price and crypto market as the Federal Reserve and central banks are forced to keep interest rates higher than pre-pandemic levels to tackle persistent inflationary pressures.
Fink, who once labelled bitcoin as “an index of money laundering,” has now acknowledged it as a legitimate financial instrument. He believes it is an investment tool for those who fear countries are debasing their currency through excessive deficits. BlackRock’s acceptance of bitcoin is widely credited with powering the bitcoin price and crypto market rebound over the past year.
The U.S. has imposed strict financial sanctions on Russia and Iran in recent years, leading to accusations of weaponizing the dollar and pushing the so-called Brics group of emerging countries away from the western financial system. In response, Russia’s central bank has encouraged the use of bitcoin and crypto to counter Western sanctions.
As the U.S. election in November approaches, some bitcoin and crypto traders are betting that the bitcoin price will reach an all-time high. Geoffrey Kendrick, Standard Chartered’s head of forex and crypto research, predicts a fresh all-time high for bitcoin in August, followed by $100,000 by U.S. election day. He expects the bitcoin price to reach $150,000 by the end of 2024 and hit $200,000 before the end of 2025, giving bitcoin a market capitalization of around $4 trillion.
Trump, who has emerged as the preferred candidate for the bitcoin and crypto community, promises to protect people’s right to hold bitcoin. This stance starkly contrasts with the Biden administration’s anti-crypto stance, further fuelling the crypto revolution.
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]]>The post Revolut’s founder Storonsky to divest part of his stake appeared first on AIBC.
]]>Storonsky, who has been at the helm of Revolut since its inception in 2015, holds a stake in the company worth billions of dollars. The exact size of his stake remains unclear, but at the $40 billion valuation that Revolut hopes to attract, it would be worth several billion dollars. Storonsky plans to offload stock worth tens or even hundreds of millions of dollars in the secondary deal.
The sale is being organized by Morgan Stanley, and the size of Storonsky’s disposal will depend on the valuation that Revolut can attract from new investors, as well as final allocation decisions by the company and its advisers. This move comes after Revolut’s announcement last month that it had hired Morgan Stanley to organize the secondary share sale, which would be at not less than the $33 billion valuation it raised primary funding at in 2021.
Revolut, which boasts more than 40 million customers worldwide, is not planning to raise new capital as part of this transaction. However, any sizeable share sale will still be closely watched across the global fintech sector. The sale is expected to be restricted to company employees, many of whom have been allotted stock options as part of their compensation packages.
This development comes at a time when Revolut revealed record earnings of ￡438 million last year on revenues which nearly doubled to ￡1.8 billion. Despite facing a string of regulatory and compliance challenges since its founding, the company’s growth has been nothing short of remarkable. Customer numbers have soared from 16.4 million at the point of the Series E fundraising nearly three years ago.
Despite the protracted downturn in tech valuations over the last two years, insiders argue that Revolut’s relentless expansion would easily justify it maintaining its status as Britain’s most valuable fintech. This is in contrast to the broader funding landscape, which has seen a growing number of tech companies, which had attracted unicorn valuations of more than $1 billion, now struggling to stay afloat.
The news of the proposed share sale comes as Revolut’s investors continue to await positive news about its application for a UK banking licence. The company applied to regulators to become a bank in Britain more than three years ago, but has so far failed to secure approval.
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]]>The post Singapore-based fintech Aspire expands to Hong Kong appeared first on AIBC.
]]>Aspire’s suite of financial solutions is tailored to the needs of small and medium-sized enterprises (SMEs) in Hong Kong. The platform offers a range of services, including local business accounts for managing payables and receivables, international payments, and payment gateway solutions. This integrated solution is designed to support the fast-growing SME segment across various industries in Hong Kong, enabling efficient multi-currency cash management and seamless domestic and cross-border money transfers.
Hong Kong is currently experiencing a resurgence in business digitalization, with 93 percent of local SMEs acknowledging its importance for their growth. Aspire is perfectly positioned to cater to this new generation of digital-savvy startups and SMEs. The platform provides a robust and integrated solution that streamlines business finance operations, ultimately saving time and money.
Andrea Baronchelli, CEO & Co-Founder of Aspire, said, “With Hong Kong’s digital economy growing exponentially, there’s a clear demand for dependable, integrated financial solutions. At Aspire, we’ve always believed in tailoring our offerings to the unique needs of each market, and we’re proud to now empower Hong Kong SMEs with the financial tools they need to drive their growth.”
The acquisition of the MSO license is a significant milestone for Aspire. It not only facilitates the company’s broader strategic expansion across Asia but also underscores its strict adherence to the regulatory requirements of each country in which it operates.
King Leung, Global Head of Financial Services and FinTech at InvestHK, commented, “Hong Kong stands as a thriving ecosystem for startups and fintech worldwide, offering a conducive environment for growth and innovation. We are happy to welcome regional fintech startups like Aspire and wish Aspire every success in Hong Kong.”
Aspire’s strategic expansion in Hong Kong and Singapore is a testament to the company’s commitment to providing innovative fintech solutions. It’s a clear indication of the company’s vision to empower SMEs with the tools they need to thrive in the digital economy. Aspire’s success story serves as an inspiration for other fintech companies looking to make their mark in the industry.
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]]>The post United Fintech pioneers digital transformation in Dubai appeared first on AIBC.
]]>The UAE is acknowledged as a vital centre for financial technology, and United Fintech’s move underlines the country’s significance in this field. The company is poised to cater to the growing market demand in the region, a distinctive intersection where Western and Eastern influences converge.
United Fintech’s Digital Transformation platform, which is industry-neutral, is engineered to expedite banks and Financial Institutions’ access to a variety of innovative fintechs specializing in capital markets. The company is already experiencing considerable interest in the region, especially for Athena’s comprehensive Order Management System/Portfolio Management System (OMS/PMS) solution.
Christian Frahm, the CEO of United Fintech, (photo above), expressed his excitement about the expansion, stating that it signifies a strategic progression for the company. It expands the global reach of their industry-neutral Digital Transformation platform and caters to the escalating demands of the financial services industry.
Rasmus Bagger, the CCO of United Fintech, reiterated Frahm’s sentiments, emphasizing the substantial opportunity this expansion offers for the company. He conveyed his enthusiasm about expanding their client base and team in the region and playing a pivotal role in linking Financial Institutions with state-of-the-art technology providers, all within a unified platform.
Raj Rathor, the Head of EMEA Sales at Athena, also shared his thoughts on the development. He pointed out that United Fintech’s establishment in the DIFC considerably widens Athena’s prospects and augments their capacity to extend their services to drive technical transformation and enhance the operating models of asset managers and hedge funds in the region.
United Fintech, established in 2020, boasts a workforce of over 160 individuals across eight countries, including the UK, Denmark, Spain, and the USA. Its platform offers access to a wide array of products from five trailblazing capital markets software companies: Athena, CobaltFX, FairXchange, Netdania, and TTMzero.
United Fintech recently announced an executive reshuffle and welcomed Danske Bank into its circle of institutional investors. Danske Bank procured a stake in the company, which was founded by Christian Frahm. The firm’s mission is to serve as the backbone of finance in the digital era, accelerate innovation, and unite the finest fintech founders on a single platform by acquiring startups, optimizing their business, and incorporating them into a fintech one-stop-shop for banks, brokers, hedge funds, and asset managers.
United Fintech aims to promote an efficient symbiosis between customers, banks, and technology, resulting in sophisticated solutions for automating workflows, simplifying onboarding, delivering efficiencies, and reducing costs. Other significant stakeholders in the company include BNP Paribas and Citi.
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