Despite the applause from FinTech leaders and industry associations for the open banking update in Tuesday’s federal budget, key questions linger regarding its implementation and timeline.

The government revealed that the Financial Consumer Agency of Canada (FCAC) will oversee the new system, with plans to introduce legislation in spring 2024 to expand the agency’s mandate. This legislation will include framework elements addressing the system’s scope and technical standard, with additional elements expected in a second piece of legislation in the fall.

However, a concrete launch date for the operationalization of the system for Canadians was not provided, although the government previously targeted 2025. This lack of clarity leaves uncertainties about the timeline within the FinTech community.

The envisioned consumer-directed finance system aims to enable Canadians to securely share their financial data with third parties, such as FinTech companies, facilitating easier switching between financial institutions. Presently, financial data sharing often relies on insecure methods like screen-scraping, posing risks to consumer privacy and potentially violating bank terms of service.

Alex Vronces, executive director of Fintechs Canada, described the announcement as the most substantial update the sector has received since discussions around open banking began. He noted the government’s recognition of consumer-directed finance as a tool to address affordability issues by fostering competition in the financial sector, as evident from its placement within the budget.

However, the absence of an update on a specific go-live date raised concerns for Vronces and others in the industry. While acknowledging the government’s commitment, Vronces emphasized the need for clarity to avoid uncertainty within the sector.

Vronces highlighted a significant shift in government attitude towards FinTech in the latter part of 2023, attributed to various factors including industry campaigns, international developments, and domestic economic priorities. This shift underscores the growing importance of open banking in Canada’s financial landscape.

Source: betakit.com

EverBank and Finzly have established a strategic partnership with the aim of revolutionizing the bank’s payment processing system.

Motivated by EverBank’s objective to modernize its payment infrastructure in response to the changing demands of the market, this collaboration seeks to consolidate its payment systems onto a unified platform. By doing so, the partnership intends to streamline operations and decrease reliance on manual processes.

This transition is expected to enable EverBank to efficiently handle a large volume of payments to investment firms, leveraging automation, scalability, and enhanced control to improve the overall client experience.

Finzly, known for its innovative payment and financial solutions, will utilize its Payments Galaxy platform to transform EverBank’s payment operations.

Lindsay Lawrence, EverBank’s Executive Vice President and Chief Operating Officer, expressed confidence in the partnership, stating, “As we sought a new payments operations partner, we were impressed with Finzly’s technology and expertise. We anticipate deploying the platform to enhance performance for our clients and counterparties. We chose Finzly based on several key factors, including its support for foreign exchange (FX) and foreign currency payment processing, USD to FX conversion capabilities, provision of appropriate disclosures and receipts for customer payments, and seamless integration with other technology for trades and settlement.”

Booshan Rengachari, Founder and CEO of Finzly, expressed enthusiasm for the collaboration, saying, “We are excited to collaborate with EverBank and support their journey toward modernizing payments operations. Our innovative solutions empower financial institutions like EverBank with the tools needed to thrive in today’s dynamic banking landscape. By consolidating their payment rails onto our platform, EverBank will unlock new levels of efficiency, scalability, and compliance, ultimately delivering enhanced value to their clients.”

Source: fintech.global

Monese, boasting a customer base of two million individuals, is collaborating with Interpath Advisory on a strategic initiative to split into two distinct entities, Sky News has learned.

The HSBC-backed technology firm, once on the verge of securing funding at a valuation exceeding £1 billion four years ago, now faces mounting losses, prompting the decision to undergo a corporate restructuring.

City insiders reveal that Monese, known for catering to underserved banking customers, is exploring a division into separate consumer-facing and corporate entities under the guidance of Interpath Advisory. This move could potentially pave the way for a sale or further restructuring down the line.

With operations spanning more than 30 countries and a workforce of approximately 275 employees, Monese has briefed its staff on these proposed plans.

Led by Norris Koppel, Monese has been actively seeking additional capital over the past year amid investor pressure to evaluate restructuring options. Its business-to-business arm, XYB, reportedly plays a crucial role in powering HSBC’s retail banking app.

In response to inquiries, a Monese spokesperson stated, “The business has evolved in two distinct directions: the original B2C business and the newer, rapidly growing B2B PaaS (Platform as a Service) business. We are exploring the optimal organizational and capital structure to maximize shareholder value.”

In its recent financial filings, Monese highlighted “material uncertainty” regarding future fundraising success and its going concern status. Despite this, the company’s shareholders, including Investec and Augmentum, have remained supportive.

Despite facing challenges, Monese has reported continued revenue growth and a significant reduction in losses, signaling a path towards profitability in the near term.

The implementation of Monese’s break-up plans is expected to unfold over several months amid a challenging funding landscape for fintech firms.

Source: news.sky.com