May Insights

In our monthly Fintech & Open Finance Insights newsletter we highlight the key industry news that has got us talking, shine a light on our SHIFT Fintech Members, and share exciting Woodhurst updates.

• 🎧 Listen Here: Our latest episode of our ‘Fintech Diaries’ podcast offers a deep-dive into our Open Finance Community SHIFT.
• 🚀 Read our new whitepaper ‘Powering the Modern Mutual: The Technology Landscape’ which delves into the latest technology vendors currently in the market.
• ✅ Attend our next webinar on June 13th: In partnership with docStribute®️ , our upcoming webinar will explore Consumer Duty Board Reporting ahead of the July 2024 deadline.
• 🔥 Woodhurst have launched its own incubator programme, ‘Ignite’ in partnership with SHIFT, which will provide financial support and financial services expertise for early stage fintech founders. Read more here.

Industry Download

• Earnr acquired by Untied: Two SHIFT Open Finance Community members have come together in a partnership in a bid to accelerate the digitisation of the tax industry. Earnr offers digital bookkeeping via bank feed connections, tax return filing and basic reporting functionality; the UK’s personal tax app, Untied, saw the opportunity to collaborate and has acquired Earnr and its range of features to fulfil its ambitious growth plans.
• Stripe launches Pay By Bank and financing tools in the UK: Stripe is launching its first Open-Banking-powered payment method. Offering a more streamlined operation, Pay by Bank allows consumers to pay directly from their bank account at a low-cost and in real-time. Small UK businesses can now access flexible financing to invest through the Stripe Capital product, which uses business history as a decisioning tool for financing eligibility.
• Engine by Starling partners with Ozone API: Integrating the Ozone API platform into Engine’s SaaS core banking platform, the partnership will accelerate Engine by Starling’s ambition to meet to needs of customers and compliance measures, unlocking the benefits of over 400 Open Banking and Open Finance standard APIs, so that digital-native banks, fintechs and FIs can combine their technology with Engine and Ozone API via a single integration.
• Smart Wallet assistant Kudos accelerates growth with successful funding round: Led by QED Investors, Kudos has raised $10.2 million in a Series A funding round following its launch of several new features. This includes MariaGPT, an AI-powered card discovery tool, as well as its Dream Wallet feature which automatically recommends the best credit card for shoppers to use when paying based on their spending habits.
• Payments platform Dwolla partners with Visa to bring enhanced account verification capabilities to their A2A solution: Dwolla, a US-based payments platform, will benefit from an improved ability to provide streamlined solutions for mid-sized businesses to pay and get paid via their bank accounts through Visa’s new Open Banking solution. This allows Dwolla clients to instantly verify account ownership and monitor real-time balances.
• CFPB’s new rule asserts that BNPL providers must align with credit card standards: Sparking industry reactions, The Consumer Financial Protection Bureau (CFPB), which seeks to safeguard consumers in the financial sector in the US, recently clarified that BNPL providers are akin to credit card issuers and must uphold the same legal rights and protections to consumers as traditional credit card providers do.

SHIFT Member Spotlight

CRIF: Pioneering ESG Analytics for a Sustainable Future

Environmental, Social, and Governance (ESG) factors are reshaping the global market, driving business dynamics, investments, and public perception. With increasing demands for sustainability and ethical conduct from consumers, investors, and regulators, robust ESG data is essential.

The Power of ESG Data

Collecting ESG data involves analysing and disclosing a company's environmental impact, social responsibilities, and governance frameworks. This data is crucial for informed investment decisions, ethical consumer choices, and regulatory compliance.

CRIF’s Comprehensive ESG Analytics

CRIF’s ESG Analytics solution empowers banks, insurers, and corporations to assess ESG compliance with over 130 key indicators from public and private sources. The tool offers features such as:

• ESG Score: Measures compliance based on European Banking Authority criteria.
• ESG Key Indicators: Criteria used to calculate the ESG Score.
• Physical Risk: Geographical-industry score assessing physical risk impacts.
• GHG Emissions: Scope 1, 2, and 3 emission data and calculation methodology.
• Transition Risk: Industry scores for single-name and portfolio risk.
• EU Taxonomy: Indicators on taxonomy alignment and eligibility.
• Other Pillar III Variables: Flags for companies in polluting sectors.
• ESG Repository: Data on water usage, waste production, emissions, health and safety, modern slavery, and inclusiveness.

Global Impact and Future Goals

CRIF’s latest ESG Analytics solution complements its existing Synesgy service, offering businesses a comprehensive understanding of their supply chain’s ESG implications. The introduction of these solutions in the UK extends their global availability, benefiting more than 600,000 companies worldwide, including 350 banks and insurers across 80 countries, and contributing to international corporate sustainability standards.

As the UK's regulatory landscape evolves, CRIF’s tools provide a robust framework for understanding and acting on ESG implications. Sara Costantini, CRIF’s Regional Director for the UK & Ireland, emphasised, “There’s no doubt that protecting the environment for future generations is the number one most pressing challenge for individuals, businesses, and governments today.” She highlighted the tool’s capacity to support banks in making informed decisions towards a greener economy and ensuring ESG compliance. Optimising ESG strategies with CRIF’s cutting-edge analytics fosters business growth and sustainability, contributing to a better future for all.

For more details on CRIF’s ESG solutions, explore their blog here and their latest advancements here.

Woodhurst's latest insights

• ‘Fintech Diaries’ with Kyle Masterson, Head of SHIFT and Navpeet Parmar, Head of FI Partnerships: In our latest episode of ‘Fintech Diaries’, we sit down with Kyle Masterson and Navpreet Parmar to chat about their roles at SHIFT, the challenges and opportunities in building a fintech community, and what the future holds in this exciting space. We'll delve into the purpose and mission of SHIFT, SHIFT+ and the Fintech Champions Community. Settle in to learn about SHIFT’s success stories, and discuss the latest trends in open banking and finance. Watch the full video on YouTube here.

• SHIFT & Woodhurst Launch Ignite to Support Fintech Founders: In partnership with our open finance community, SHIFT, Woodhurst is thrilled to announce the launch of the ‘Ignite’ incubator programme, which offers personalised mentorship from Woodhurst’s team of consultants to help accelerate fintech founders. Offering both financial support and financial services expertise, the dedicated support will be offered to one successful applicant at a time, and reap the benefits of an initial cash injection, access to co-working space and technology, to name a few. Read here to learn more about the exciting Ignite Incubator Programme.

• Woodhurst launches ‘Powering the Modern Mutual: The Technology Landscape’: This month saw our latest report fly off the shelves at the BSA 2024 Conference. The report, which explores the vendor technology at length, includes an overview of the technology structure of Building Societies and provides insights into the perspectives from over 30 top technology vendors that are currently in the market. Follow the link to download the report in full and learn how technology is shaping the future of Building Societies.

• Woodhurst partners with Monmouthshire Building Society: This collaboration will ensure Monmouthshire Building Society can continue to build the business capabilities and technical systems needed to provide the modern services their members and colleagues expect, to continue delivering their purpose of helping members, colleagues and communities thrive. Learn more here.

• Eliq and Woodhurst partnership: We are thrilled to announce that Eliq and Woodhurst have partnered to help deliver leading energy data insights and green capabilities to mortgage providers and their customers. Combining a cutting-edge energy data platform with Woodhurst’s wealth of experience in implementing innovative solutions across financial services, this enables lenders to deliver a range of capabilities, such as energy usage insights and personalised retrofitting recommendations for mortgage customers.

• Tokenisation for Building Societies: Our latest blog sees consultant Sam Spacey delve into how societies can leverage blockchain to benefit their members, including accelerating the home buying process with smarter contracts, and unlocking new liquidity opportunities with tokenised homes. Read how tokenisation could disrupt the narrative of Building Societies here.

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If you'd like to find out more about Woodhurst and how we can help you please get in touch at lydia.coyle@woodhurst.com.