Fintech

Pesa unlocks new markets to keep remittances flowing to emerging economies

Published

9 months ago

22 July, 2024

Remittance startup Pesa eyes global growth

Founders of WeighsA fintech that focuses on remittances, knows how expensive, inaccessible and unreliable remittance services push people to opt for risky informal channels, such as WhatsApp groups, to transfer money.

Their first-hand experience using informal channels and their awareness of how widespread their use was among Africans living in the diaspora after settling in Canada in 2017, inspired Tolulope Osho, Yusuf Yakubu and Adewale Afolabi, all Nigerians, to innovate responsive remittance products in late 2021, initially targeting the remittance market from Canada to Africa, but now also targeting global activity.

Their determination comes at a time when remittances to low- and middle-income countries (LMICs) are reported increase by 38% over the last six years, reaching $656 billion by the end of 2023.

The World Bank estimates a further climb in 2024 and 2025 against the growing demand for fast, convenient and reliable cross-border remittance services. Digital remittance tools, the World Bank notes, will continue to accelerate remittance activities by reducing transaction costs and increasing access to formal money transfer channels.

Pesa’s goal from the beginning was to allow users to send money in the “safest and fastest way possible” and to “remove the boundaries around money,” Osho, the startup’s CEO, told TechCrunch.

The channel was created as a multi-currency wallet that allows users to send, receive, and hold multiple currencies (six for now).

“The way we are looking at remittances is that you should continue to transact when you move to a new country; if I leave Nigeria for Canada, there should be no kind of disruption in transmission compared to how I see financial services. I should be able to transact at home as if I had never left,” Osho said.

“With our multi-currency wallet, when you travel between these countries (Nigeria, Canada, EU, US, UK and Ghana) you can take your money with you as if it were in your wallet,” he said.

Pesa pursues global expansion

The fintech is in the final stages of acquiring the licenses needed to launch in the United States, having just launched in 27 European countries. Pesa also has a presence in the United Kingdom, through a partnership, in the meantime, while it works to acquire an Electronic Money Institution (EMI) license, which Osho says will give it the full functionality of a bank. The license will allow it to offer cheaper services, issue and hold electronic money on behalf of customers, and create more products for its users.

Pesa’s efforts to increase coverage will allow its users in these regions to send money to its five African markets, including Nigeria and Ghana, and India, which it entered last March. The launch in India was a chess move that would facilitate forays around the world first destination of remittances: the country received $120 billion last year, with a projected increase to $129 billion in 2025. India is also the greater origin of migrants globally. Meanwhile, Pesa is ramping up its service in sub-Saharan Africa, which recently reached $54 billion, supported by major recipients such as Nigeria and Kenya.

Its continued expansion bid will intensify competition for other companies in the digital remittance sector, including Tanzania’s Nala, which recently raised $40 million in a Series A roundLeatherback, Send by Flutterwave, LemFi, Eversend and established entities such as Wise and Zepz.

And as it pursues global growth, Pesa, part of Fast Forward Venture Study The current cohort, which has largely been self-funded in its takeoff, has made great strides, including reaching profitability in less than two years of operation. It has so far processed over a million transactions worth $380 million, and has 60,000 users, 30% of which are active.

The team is very optimistic about the impact on new markets and products such as the planned multi-currency cards.

“We are looking to grow by completing our expansion and integrations in all the continents we are expanding to,” Yakubu said. “We will then generate more revenue than we do today.”

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Fintech

Lloyds and Nationwide invest in Scottish fintech AI Aveni

Published

9 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

9 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

9 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

9 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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