Fintech

How can DEI in Fintech help address broader social inequality?

Published

7 months ago

26 June, 2024

This June at Fintech Times we will focus on diversity, equity and inclusion (DEI). No longer just a trending topic, but an essential consideration not only for your business operations but also for your offering, this topic seems more relevant now than ever.

The fintech sector is known for its reputation for innovation and flexibility, but it still faces a significant diversity problem that risks stunting its growth and preventing innovation from moving forward.

When we think about DEI, it’s not just about having diverse teams within an organization, but also about ensuring that our products and services are accessible to as many people as possible.

Financial technology has the opportunity to make the world a better and more accommodating place for many when it comes to finance. We spoke to industry insiders to find out how.

Control of finances

David Daiches, co-founder and COO, INSHUR

David Daiches, co-founder and chief operating officer, of the motor insurance company, INSHUR, She said:

“Having control of your finances is a fundamental human need in our society, and fintech fills this need.

“That’s why INSHUR has developed insurance products embedded into our partner platforms to eliminate friction when onboarding new drivers on demand and provide them with fair and adequate coverage. Many of these drivers come from underrepresented backgrounds and are taking control of their income and work patterns to build a better life for themselves and their families.”

From paycheck to paycheck

Ram Palaniappan, founder and CEO of EarnIn

Ram Palaniappanfounder and CEO of Earn money, an earned wage access provider, said:

“Today’s traditional 2- to 4-week pay cycle can worsen social inequality by increasing costs for those living paycheck to paycheck. Invoices are rarely paid on payday, and the rigid fixed pay cycle can lead to debilitating late and overdraft fees.

“There are now financial solutions that break this cycle – including access to earned wages – that allow people to access their wages while they work, meaning they have access to their money when they need it most.”

Inclusive economic growth

Angy Watson, Chief of Staff and Chief Transformation Officer, Paymentology

Angy Watson, chief of staff and transformation manager at the card issuer and processing platform, PaymentologyShe said:

“Social progress depends on inclusive economic growth that delivers for all, including the United States 1.3 billion people with disabilities in the world, can move forward in life and prosper. Fintech is central to this progress, playing a crucial role in addressing broader social challenges for those who struggle to access traditional financial services.

“For example, by leveraging the best digital innovations, financial technology can improve accessibility by incorporating features such as voice commands, screen readers and simplified interfaces, allowing people with visual, hearing and cognitive disabilities to manage their finances independently. Through digital banking and mobile payments, financial technology offers convenience, enabling transactions without visiting a branch, which is particularly beneficial for those with mobility issues. Financial technologies are also good at providing tailored solutions such as micro-loans and plans of savings, responding to the unique needs of people with disabilities and ensuring they have the support they need to achieve financial independence”.

Hyperpersonalization

Nitika Vyas, CFA and Co-Founder, Aila Money

Nitika VyasCFA and co-founder, Aila Money, a digital financial assistant app, said:

“At Aila Money, our mission is to reduce wealth inequality across genders and socioeconomic backgrounds. As a personal finance coaching app, our mission is to ensure that everyone has access to the information and tools to feel confident and comfortable with their finances to achieve their life goals. Recognizing that people absorb information differently, we personalize financial insights, coaching, and action through tips that also help empower users and give them access to human expertise when needed. We partner with behavioral scientists from LSE AND University of the city to ensure our messages empower and engage users. We appreciate the personalized approach; Financial advice and accountability messages can be especially helpful for neurodiverse individuals.

“While the above highlights our company’s initiative in this regard, there are so many ways in which Ffintech has the potential to significantly address broader social inequality by leveraging technology to create more inclusive financial services. For people with disabilities, fintech can offer tailored solutions that meet different needs and preferences. Fintech can make a difference through accessibility, personalization, education and community. Exciting things to come!”

Social prejudice

Beautiful Renney, Product Director at Embedded Financial Platform, Free She said:

Bella Renney, Product Director, Liberis

“The most rapid impact comes from evolving hiring practices. We need to remove barriers to STEM roles, such as data science or engineering, and significantly expand the talent pipeline. We should no longer treat “computer science degree” as a must in job descriptions.

“Fintechs can work with coding boot camps to hire career changers in tech. They could also partner with local universities to host midterms or summer breaks to establish pathways into fintech for school leavers with paid internships or apprenticeships. These diversify and broaden the talent pipeline.”

“Our business provides greater access to capital across the spectrum. We use AI and ML for decision modeling, which means we have far fewer social biases in terms of access to capital. The companies are all evaluated based on the same criteria and it is a true meritocracy, which often sees companies managed by women surpass the others”.

Double the diversity

Lynda Clarke, Chief Operating Officer of Tribe Payments

Lynda Clarke, Chief Operations Officer, Tribe Paymentspayment technology providers for banks and fintechs, said:

“Amid an uncertain economic outlook, fintechs must face some uncomfortable truths and redouble their diversity efforts if they want to attract talent to continue innovating.

“Since I entered the industry, I have definitely seen dramatic improvements in diversity. However, there is still much work to be done, especially to support women to reach senior positions. The statistics prove it, with only 5% of CEO positions in our industry held by women. We also need to address the dominance of men at networking events – making sure women have the confidence to be in the room will help break this down. This won’t change overnight, so it’s important that women feel comfortable and that men recognize that it’s also their responsibility to make sure everyone feels included.

“To create big change, think small. It may sound strange, but I like the idea that if everyone did something positive every week to improve just 1% (whether it’s for their own personal growth, career development, or the improvement of others), it could have a huge impact over time. . Think about how you can help do those 1% things to move things forward every day. For example, if there are only one or two women at the table in a room full of men, they may not feel 100% comfortable. How can you help me with that?”

Polly Jean Harrison
Polly is a journalist, content creator and general opinion maker from North Wales. You have written for numerous publications, usually focusing on topics such as fintech, technology, lifestyle and body positivity.

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Fintech

Lloyds and Nationwide invest in Scottish fintech AI Aveni

Published

6 months ago

29 July, 2024

FinCrypto Staff

Lloyds and Nationwide invest in Scottish AI fintech Aveni

Lloyds Banking Group and Nationwide have joined an £11m Series A funding round in Scottish artificial intelligence fintech Aveni.

The investment is led by Puma Private Equity with additional participation from Par Equity.

Aveni creates AI products specifically designed to streamline workflows in the financial services industry by analyzing documents and meetings across a range of operational functions, with a focus on financial advisory services and consumer compliance.

The cash injection will help fund the development of a new product, FinLLM, a large-scale language model created specifically for the financial sector in partnership with Lloyds and Nationwide.

Joseph Twigg, CEO of Aveni, explains: “The financial services industry doesn’t need AI models that can quote Shakespeare, it needs AI models that offer transparency, trust and, most importantly, fairness. The way to achieve this is to develop small, highly tuned language models, trained on financial services data, vetted by financial services experts for specific financial services use cases.

“FinLLM’s goal is to set a new standard for the controlled, responsible and ethical adoption of generative AI, outperforming all other generic models in our selected financial services use cases.”

Robin Scher, head of fintech investment at Lloyds Banking Group, says the development programme offers a “massive opportunity” for the financial services industry by streamlining operations and improving customer experience.

“We look forward to supporting Aveni’s growth as we invest in their vision of developing FinLLM together with partners. Our collaboration aims to establish Aveni as a forerunner in AI adoption in the industry, while maintaining a focus on responsible use and customer centricity,” he said.

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Fintech

Fairexpay: Risk consultancy White Matter Advisory acquires 90% stake in fintech Fairexpay

Published

6 months ago

29 July, 2024

FinCrypto Staff

Treasury Risk Consulting Firm White Matter Alert On Monday he announced the acquisition of a 90% stake in the fintech startup Fair payment for an undisclosed amount. The acquisition will help White Matter Advisory expand its portfolio in the area of cross-border remittance and fundraising services, a statement said. White Matter Advisory, which operates under the name SaveDesk (White Matter Advisory India Pvt Ltd), is engaged in the treasury risk advisory business. It oversees funds under management (FUM) totaling $8 billion, offering advisory services to a wide range of clients.

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White Matter Advisory, based in Bangalore, helps companies navigate the complexities of treasury and risk management.

Fairexpay, authorised by the Reserve Bank of India (RBI) under Cohort 2 of the Liberalised Remittance Scheme (LRS) Regulatory Sandbox, boasts features such as best-in-class exchange rates, 24-hour processing times and full security compliance.

“With this acquisition, White Matter Advisory will leverage Fairexpay’s advanced technology platform and regulatory approvals to enhance its services to its clients,” the release reads.

The integration of Fairexpay’s capabilities should provide White Matter Advisory with a competitive advantage in the cross-border remittance and fundraising market, he added.

The release also states that by integrating Fairexpay’s advanced technology, White Matter Advisory aims to offer seamless and convenient cross-border payment solutions, providing customers with secure options for international money transfers.

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Fintech

Rakuten Delays FinTech Business Reorganization to 2025

Published

6 months ago

29 July, 2024

FinCrypto Staff

Rakuten (Japan:4755) has released an update.

Rakuten Group, Inc. and Rakuten Bank, Ltd. announced a delay in the reorganization of Rakuten’s FinTech Business, moving the target date from October 2024 to January 2025. The delay is to allow for a more comprehensive review, taking into account regulatory, shareholder interests and the group’s optimal structure for growth. There are no anticipated changes to Rakuten Bank’s reorganization objectives, structure or listing status outside of the revised timeline.

For more insights on JP:4755 stock, check out TipRanks Stock Analysis Page.

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Fintech

White Matter Advisory Acquires 90% Stake in Fintech Startup Fairexpay

Published

6 months ago

29 July, 2024

FinCrypto Staff

White Matter Advisory Acquires 90% Stake in Fintech Startup Fairexpay

You are reading Entrepreneur India, an international franchise of Entrepreneur Media.

White Matter Advisory, which operates under the name SaveDesk in India, has announced that it is acquiring a 90% stake in fintech startup Fairexpay for an undisclosed amount.

This strategic move aims to strengthen White Matter Advisory’s portfolio in cross-border remittance and fundraising services.

By integrating Fairexpay’s advanced technology, White Matter Advisory aims to offer seamless and convenient cross-border payment solutions, providing customers with secure options for international money transfers.

White Matter Advisory, known for its treasury risk advisory services, manages funds under management (FUM) totaling USD 8 billion.

Founded by Bhaskar Saravana, Saurabh Jain, Kranthi Reddy and Piuesh Daga, White Matter Advisory helps companies effectively manage the complexities of treasury and risk management.

The SaveDesk platform offering includes a SaaS-based FX market data platform with real-time feeds for over 100 currencies, bank cost optimization services, customized treasury risk management solutions, and compliance guidance for the Foreign Exchange Management Act (FEMA) and other trade regulations.

Fairexpay is a global aggregation platform offering competitive currency exchange rates from numerous exchange partners worldwide. Catering to both private and corporate customers, Fairexpay provides seamless money transfer solutions for education, travel and immigration, as well as simplifying cross-border payments via API and white-label solutions for businesses. Key features include competitive currency exchange rates, 24-hour processing times, extensive currency coverage of over 30 currencies in more than 200 countries, and secure, RBI-compliant transactions.

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