This week’s roundup will feature titles on digital currency, investment in stocks and cash protection. Join us and Unlimit BaaS’ Managing Director, Jovi Overo in the exploration of some of the biggest headlines of our industry.
- Users of open banking in the UK have swelled to 7 million, with a drastic rise in consumers and SMEs using the services. The trend comes soon after the completion of the CMA Roadmap and fifth anniversary of the Second Payment Services Directive (PSD2) which has regulated open banking in the UK. [source: Finextra]
The benefits of open banking are innumerable as it opens up opportunities for better financial wellness. Open banking is giving users the power to make better informed financial decisions and uplifting the use of fintech driven innovations. It’s even more exciting because of the additional security around data in open banking, and both businesses and consumers will have more rights when it comes to how their data is managed. – Jovi
- European neobanks are overtaking legacy banks as customers adopt super apps more than fiat banking apps. App Radar completed a study of Google Play Store downloads, which showed neo banks have made the largest gain in 2022. [source: FinTech Magazine]
Challenger banks have continued to grow in popularity for their convenience, alternative methods for gaining credit and lower fee rates. As traditional banks’ processes show resistance to rapid adoption of new ways of working, users turn to faster solutions that simplify complex banking processes. – Jovi
- Hong Kong’s Securities and Futures Commission (SFC) have launched plans to regulate digital asset trading platforms. The plans will create tighter rules around the regulations already in place in exchanging digital assets to protect the safe custody of assets, such as through KYC, cybersecurity, accounting, risk management, etc. [source: Fintech Futures]
The tighter regulations may have a heavy impact on those who are unprepared to adhere to more regimented frameworks, however it is a sensible move considering that we have seen the corruption and collapse of some large named crypto trading platforms. More thorough regulations will also provide individuals a better sense of security and protection, which is essential particularly during this time period in which users are still learning and accepting alternative currencies. – Jovi
See you next week, back in the blog for your next weekly news roundup.