Fintech is a wide-ranging, multi-sector, global industry, whose growth influences not only the banking world, but society at large. Our deep dives, interviews and coverage looking at the evolution of payments, finance and banking are fuelled by constant updates, news and commentary on deals, funding rounds, and partnerships.
This fortnight, Turkey gets a new unicorn neobank, Africa continues to be a fintech darling, while women still struggle for equal pay. Revolut’s ignorance of the US payments market costs its customers $20m and GoCardless continues to grow with a new board appointment.
Unicorn alert!
Leading Turkish neobank Papara acquires Rebellion, becomes Europe’s latest fintech unicorn
Papara’s acquisition of Spanish-based, multi-million challenger bank Rebellion Pay is the business’s first acquisition, bringing the Turkish fintech company to a valuation of more than $1bn. The acquisition begins the Turkish neobank’s ambitious international expansion strategy. Rebellion will rebrand to Papara Spain and retain the business’s staff to allow Papara to offer its mobile banking, transfer and insurance products to the Spanish market. Having increased its user base by 27% to over 16 million and headcount by 43% to 555 in the last 12 months, Papara is driving its mission of financial inclusion for all forward.
Fintech march continues
Africa to be fastest growing fintech region as global industry grows to $1.5tn by 2030
Emerging economies will lead the way as fintech gains momentum. Asia-Pacific is poised to outpace the US, becoming the world’s largest fintech market by 2030, while Africa will be the fastest growing region, according to a new report. Africa’s fintech market – led by South Africa, Nigeria, Egypt and Kenya – is projected to grow thirteenfold to $65bn in 2030, and will have a projected compound annual growth rate of 32%.
Financial technology revenues are projected to grow sixfold from $245bn to $1.5tn by 2030, according to a new report released by Boston Consulting Group and QED Investors. Despite fintechs losing more than half their market value on average in 2022, Global Fintech 2023: Reimagining the Future of Finance found that the plunge was merely a short-term correction in an otherwise long-term positive trajectory, as the industry’s fundamental growth drivers haven’t changed.
Screaming into the void alert!
Women in UK finance industry earn 23% less than men, according to Spendesk research
The CFO Salary Benchmark study also reveals that 81% of finance professionals in the UK felt that the current economic climate has had an impact on their mental health.
The survey carried out by Spendesk, along with the global finance community CFO Connect, looks at the salaries of business finance leaders of all levels in Europe and the US.
Key findings include:
- Women in UK finance roles on average earn 23% less than men and overall 12% less in the Europe and US.
- In the UK, 33% of finance professionals don’t feel they are fairly compensated.
- The average finance salary in the US is almost double that in Europe.
- In the UK, 81% of finance professionals felt the current economic climate has had an impact on their mental health.
The average overall finance salary in the US is €194,380/£167,030, which is almost double the €102,192/£87,813 of Europe. In line with last year’s survey, the UK’s €122,896/£105,604 average remains Europe’s highest.
Is this lesson number 486?
Revolut’s US payment flaws allowed thieves to steal $20mn – FT
A flaw in Revolut’s payment system in the US allowed criminals to steal more than $20m of its funds over several months last year before the company could close the loophole, according to multiple people with knowledge of the episode. The incident, which has not yet been disclosed publicly, is likely to add further pressure to the highly valued fintech, which has faced a string of senior departures and a qualified audit from BDO while it awaits a banking licence in the UK.
GoCardless gets a new chair
GoCardless appoints Franck Cohen as its first Chair of the Board
Franck Cohen, the industry veteran and entrepreneur, brings a wealth of experience in the technology and software space, including stints as the EMEA president and global chief commercial officer during his 10-year tenure at SAP. Prior to that, he was the executive vice-president and general manager of North America and EMEA at Lawson.
Cohen is the most recent leader to join GoCardless, following the addition of Alan Cairns, chief people officer, and Kamila McWilliam, director of corporate development, to the fintech’s senior team. Prior to that, GoCardless announced the appointment of three former Nordigen executives to capitalise on the $400bn global open banking opportunity.
The Banker lends its condolences
Co-founder of investment fintech Nutmeg, Nick Hungerford, passed away on July 6 after a long battle with bone cancer. Inspired by his daughter, Mr Hungerford set up a charity to support children who lose parents called Elizabeth’s Smile. Donations to the charity, as well as messages of sympathy for his family, can be made here.
