Fintech

Ping An Asset Management: HSBC advised to carefully study proposals to improve operating performance and enhance value

Published

2 years ago

November 4, 2022

Mr. Huang Yong, Chairman of Ping An Asset Management, interviewed by various international and local media on the recent market issues regarding Ping An and HSBC. Below is a summary of the Q&As.

1. The recent change of HSBC’s CFO has attracted much attention in the market, with rising speculation about HSBC’s next CEO. What are Ping An’s views?

A: After HSBC publicly announced the change of CFO, we were also informed by HSBC of the situation. It is not appropriate for us to comment on HSBC’s management, but one thing is for sure, we believe that the criteria for evaluating the CEO of any company should be his or her ability to generate good performance and long-term value for shareholders on a sustainable basis.

2. Regarding generating good performance and long-term value, Ping An has publicly made a number of comments on HSBC’s operating performance, spin-off, etc. Can you talk about this in detail?

A: Recently, there has been some misunderstanding in the market regarding Ping An’s views on HSBC. We would like to take this opportunity to clarify that Ping An has never made any public comments on HSBC’s performance, spin-off or other topics. We have repeatedly reiterated that, as one of HSBC’s major shareholders, we are willing to study and support any proposals that are conducive to improving HSBC’s operating performance and enhancing the company’s value, and that are helpful to HSBC’s development strategies and business strategies.

3. Has Ping An communicated with HSBC’s management about HSBC’s development strategies and business tactics?

A: Ping An has had a deep relationship with HSBC for more than 20 years, and has maintained a good relationship. In 2002, HSBC became the largest shareholder of Ping An and gave us a lot of help. Especially in the early stage of Ping An’s development, HSBC provided us with advanced management experience including operations and risk control, and we are still grateful for them even now for the support that they provided in that period. Meanwhile, over the past decade, Ping An has also provided practical experience and support to HSBC in innovative areas such as fintech. In 2015, we invested in HSBC and became one of its major shareholders, because we had trusted in its century-old brand, and had expected that they be able to continue delivering sustainable performance, stable historical dividend policy, and robust growth strategy.

We have long maintained communication with HSBC’s management and some of its directors regarding HSBC’s development strategies and business tactics. Despite differences in views, both parties have maintained open, friendly and constructive communication at all levels. However, in recent years, as you have observed, the market has been rather disappointed with HSBC’s poor performance, dividends, market capitalization, etc.

4. In what ways is Ping An disappointed with HSBC’s performance, etc.?

A: Ping An has a fiduciary duty towards our own life insurance policyholders. As one of HSBC’s major shareholders, we are most concerned about HSBC’s performance, dividends and market capitalization. However, in recent years, HSBC’s performance on these indicators has been far below that of an equivalent peer group and far below the expectations of most shareholders. Particularly, there are 3 main issues in terms of performance:

1) HSBC’s RoTE has underperformed its peers. Over the past five years, HSBC’s RoTE only averaged 7.0%, which is far too low in absolute terms and also low relative to peers that also suffered from a low interest rate environment. Last year HSBC’s delivered a RoTE of just 8.3% which far below the 12.3% average RoTE delivered by an equivalent peer group, who on average generated 59% of their revenue from Asia which is similar to HSBC’s own Asia revenue contribution of 51%. We acknowledge that there is no perfect comparable for HSBC Group, so internally we created a synthetic peer by taking an average performance of 12 banks that in aggregate have a similar Asia revenue mix to HSBC Group’s own revenue mix, and compare HSBC’s RoTE and CIR performance to that average. We note that the static official peer group that HSBC uses in its remuneration reports only generated 22% of revenue from Asia in FY21, which we believe is not an appropriate comparison group.

2) HSBC’s market ranking lags behind its peers. Out of HSBC’s 8 separately reported territories in Asia, HSBC ranks Top 10 in lending in only 2 territories (1st in Hong Kong, 10th in Australia). In the other geographies, HSBC’s ranking hovers around 20th to 35th, and only ranks 58th in Chinese Mainland. As of 2021, HSBC’s loan market share in Chinese Mainland is 0.15%^[1]. Given that Asia is HSBC’s most important business and profit contributor, we worry about their long-term sustainable competitiveness and scale in these markets.

3) HSBC’s operating performance lags behind its peers. Our post-investment team did a detailed benchmarking analysis of HSBC’s operational performance and found that HSBC Group ranked bottom quartile in 45% of key operating metrics and HSBC Asia ranked bottom two or worse in 56% of key operating metrics amongst peers in FY21. For example, we are worried that HSBC Asia revenues has been declining for the past two consecutive calendar years, when the rest of the market and key peers have been growing. HSBC’s cost-income ratio is also materially higher than peers at both HSBC Group and HSBC Asia level.

Over the past 2 quarters, we have started to see HSBC’s performance thanks to rising interest rates. However, we believe such an upcycle in rising rates is temporary and unsustainable. It can temporarily improve performance and capital return, but we pay more attention on HSBC’s business strategy and development strategy, as well as its sustainable performance improvement and long-term value growth.

5. What are Ping An’s specific suggestions on HSBC’s business and development strategy?

A: In recent years, Ping An has engaged with HSBC management in candid and in-depth exchanges of views around its operations and development strategy to help the company improve business performance and increase long-term growth value. We have put forth suggestions in the following three aspects:

1) Allocate global resources effectively. HSBC Asia contributed 68.7% of total pre-tax profit in 1H22, whereas Europe and North America contributing less than 10% respectively and Latin America less than 5%. Asia is the main driver of HSBC’s profit growth. However, HSBC’s global resource allocation strategy in the past has made the Asian business compensate its European and American businesses, making HSBC Asia unable to gain sufficient resources for business growth. We suggest HSBC to review its global resource allocation strategy, reallocate more resources to Asia to gain higher return, and exit sub-scale peripheral ex-Asian markets.

2) Improving efficiency by increasing revenue and reducing costs. Although HSBC management claimed its cost-cutting efforts are paying off, its cost-income ratio is still up to 64.2%, which is 13% points higher than an equivalent peer group mean. Meanwhile, HSBC Asia’s cost-income ratio is 58.7%, which is 18% points higher than the 40% mean of an equivalent Asia banking peer group. We suggest HSBC be much more aggressive in radically reducing its costs to close the huge ‘cost-income ratio gap’, for example, by reducing its operating costs such as manpower and IT, as well as reducing its ‘global headquarters costs as a % revenue’ compared to that of an equivalent peer group. This is the most important, urgent and absolutely needed action for HSBC to improve its business performance, reducing costs and increasing efficiency, particularly amid slowing growth in the global financial industry.

3) Focus on the development of the Asian business. Since HSBC’s management proposed the “Pivot to Asia” strategic upgrade in February 2020, the market hasn’t seen any substantial actions or material results over the past two to three years. In April 2021, HSBC publicly announced it would relocate four senior executives to Hong Kong; however, this move has not been completed despite having been 18 months since the announcement was made. To our understanding, three out of HSBC’s four global business line CEOs only have one year’s work experience or less in Asia. As such, we suggest HSBC take comprehensive consideration of various factors, including growth, return, risk, competitiveness, etc. and take effective and concrete measures to implement the “Pivot to Asia” strategic upgrade, strengthen its market position in Asia and capture the opportunities arising from the rapid development in the Asian market, while striking a balance between its global finance model and cross-border systemic and geopolitical risks.

6. What’s Ping An’s view on how HSBC can strike a balance between its global finance model and cross-border systemic and geopolitical risks?

A: HSBC is known for its ‘global finance and banking’ model for years. As one of the major shareholders that focus on long-term value, Ping An recognizes that global finance model has played a role in creating a unified brand and providing global banking services to a selected core group of clients; however, to what extent it creates value and contributes to businesses cannot be quantitatively verified. This has always been a controversial topic.

As an old Chinese saying goes, “in the first thirty years, east side of the river enjoys fortune; in the next thirty years, the fortune goes to the west side”, which means tides and trends are so fickle that they could totally reverse. The current global macroeconomic landscape has experienced great changes. The global finance model that once dominated and shaped the global financial industry in the last century is no longer competitive; its weaknesses, costs and risks have become increasingly evident, particularly following the two global financial crisis in 1997 and 2008. Since then, the financial market risks and geopolitical risks and other negative impacts that are transmitted across the borders, have continued to increase. On the one hand, governments and regulators have become concerned with, and often even averse to the pressure of having to take all the risks of global banks across their entire global business in their home location. On the other hand, global banks have to bear the heavy burden of overlapping regulatory costs, risk costs and capital needs when operating globally. In recent years, multinational banks in the Europe and US have announced their exit from businesses in some regional markets and further shrunk their global footprint.

We suggest HSBC should also plan ahead and think of what a “new global model” should look like, carefully evaluating the value and business contribution of each aspect, while striking a balance between its global finance model and cross-border systemic and geopolitical risks to achieve long-term, sustained and steady operation. Just divesting a few small markets or businesses will not fundamentally solve these issues.

7. How would Ping An comment on the discussion around HSBC spinoff which is spreading in the market?

A: Many HSBC’s shareholders have communicated privately with Ping An on this issue over the past several years. There have also been a lot of discussions in the capital market and media; some support it while some are against it. We note that, despite different views, we all share a common goal to help HSBC improve its long-term value.

As one of the major shareholders of HSBC, what Ping An cares the most is for HSBC to improve its business performance, create and enhance its long-term value. We have always upheld a candid and open attitude and keen to listen to all voices in the market. We will support any initiatives including a spin-off that are conducive to improve HSBC’s performance and value; we will consider any suggestions that will help HSBC improve its development and operation strategy. Meanwhile, we would also suggest HSBC adopt an open attitude by studying the relevant suggestions carefully and prudently and incorporating constructive views into its prioritized agenda, rather than attempting to simply bypass and reject them.

Related Topics:latest-news Mr. Huang Yong Ping An

Up Next

WOO Network joins FinTech Poland Ecosystem

Don't Miss

Verified.com Announces a Proprietary Verification Platform for Identity Intelligence to Create Trust in Everyday Interactions

Click to comment

Fintech

Fintech Pulse: Your Daily Industry Brief – April 29, 2025 – Thunes, AI Agents, Railsr & Equals, Surfin, UK Fintech, Visa

Published

12 hours ago

April 28, 2025

Peter Tolan

fintech-pulse:-your-daily-industry-brief-–-april-29,-2025-–-thunes,-ai-agents,-railsr-&-equals,-surfin,-uk-fintech,-visa

Good morning, Fintech insiders! Welcome to Fintech Pulse, your daily op-ed–style briefing on the stories shaping our industry. Today we cover six major developments—from blockbuster funding rounds to cutting-edge AI trends, high-profile mergers, and education initiatives—alongside incisive commentary to help you stay ahead of the curve.

1. Thunes Secures US$150 M Series D to Fuel U.S. Expansion

Key News
Cross-border payments innovator Thunes has closed a US$150 million Series D round led by Apis Partners and Vitruvian Partners, marking its largest ever capital raise. The Singapore-based fintech, which connects traditional banking rails to digital wallets in over 130 countries, will deploy the proceeds to expand its Direct Global Network and deepen its newly-licensed U.S. operations across all 50 states. CEO Floris de Kort highlighted Thunes’ US$150 million revenue run-rate and positive EBITDA as proof that rapid growth and financial discipline can go hand in hand.

Analysis & Opinion
Thunes’ ability to attract blue-chip growth capital underscores a broader investor appetite for cross-border payment platforms that tackle real-world inefficiencies. With remittance corridors booming and digital wallets proliferating, Thunes is well-positioned to capture market share in the U.S., where instant, low-cost transfers are still nascent. Yet, scaling a global network poses regulatory and compliance challenges; the true test will be executing seamless integrations with U.S. banks and digital wallets without sacrificing speed or reliability. If Thunes can replicate its international success domestically, it could trigger a new wave of consolidation among smaller regional players.

Source: FinTech Magazine

2. Forbes Spotlights AI Agents for Investment Research

Key News
In a thought-provoking piece, Forbes’ Jeff Kauflin identifies “AI agents” as fintech’s next frontier for deep investment research. Leading platforms—from trading app Robinhood to nimble NYC startups—are deploying autonomous AI agents that process vast datasets (SEC filings, earnings calls, macro reports) to generate actionable insights faster than human analysts. These agents can simulate investment theses, adjust portfolios in real time, and even draft regulatory filings.

Analysis & Opinion
The shift toward autonomous AI in asset management is inevitable, but it raises profound questions about accountability and transparency. While AI agents promise cost efficiencies and 24/7 research capabilities, financial firms must guard against overreliance on black-box models. Rigorous backtesting, explainable-AI frameworks, and human-in-the-loop oversight will be essential to mitigate model drift and guard against false signals—especially in volatile markets. Firms that navigate this balance effectively will gain an edge, but regulators are watching closely and may soon demand disclosures on algorithmic decision-making.

Source: Forbes

3. Railsr and Equals Merge in £283 M Deal to Forge Embedded Finance Powerhouse

Key News
UK-based Railsr (formerly Railsbank) has agreed to acquire Equals Group in an all-cash £283 million transaction, creating one of Europe’s largest embedded finance platforms. Under the terms, Equals shareholders will receive 140 pence per share (135 pence cash plus a 5 pence special dividend). The deal—expected to close in Q2 2025—brings together Railsr’s BaaS/CaaS capabilities (virtual cards, balance holding, open banking) with Equals’ strengths in cross-border payments (FairFX, CardOneMoney). Leadership teams from both firms, including Ian Strafford-Taylor (CEO, Equals) and Philippe Morel (CEO, Railsr), will spearhead the integration.

Analysis & Opinion
This merger signals a coming era of embedded finance consolidation. By pooling resources, Railsr-Equals will offer end-to-end solutions—from issuing payment instruments to facilitating international transactions—under one roof. Cross-selling opportunities abound, but integration risks loom large: aligning technology stacks, unifying compliance frameworks, and retaining client trust will be critical. Success here could set a new M&A benchmark in embedded finance, prompting VCs and strategic investors to reevaluate other mid-market fintechs as future roll-up targets.

Source: FinTech Magazine

4. Singapore’s Surfin Meta Digital Technologies Nets US$26.5 M

Key News
Surfin Meta Digital Technologies, a Singapore-based fintech serving the underbanked, has closed US$26.5 million in a fresh round led by Insignia Ventures Partners, with participation from Woori Venture Partners, Washington University in St. Louis, and Phillip Private Equity. Founded by Dr Yanan Wu, Surfin’s platform spans consumer lending, payments, and wealth management services for emerging markets. Proceeds will fuel expansion into new geographies and bolster R&D for intelligent financial products.

Analysis & Opinion
Surfin’s focus on underserved segments taps a massive, often overlooked market. As interest in financial inclusion intensifies, platforms like Surfin that marry tailored lending with digital onboarding can leapfrog legacy institutions. Yet competition is heating up, with incumbents and neobanks eyeing similar demographics. Surfin must differentiate via superior credit-scoring algorithms and localized partnerships. The level of institutional investor support here suggests confidence in its unit economics—but execution will hinge on balancing rapid scale-up against credit risk management.

Source: FinSMEs

5. Inside the Rapid Rise of UK Fintech

Key News
The UK’s fintech workforce now exceeds 82,000, with projections to surpass 100,000 within two years—a testament to a sector that has thrived on regulatory support, talent density, and customer demand for digital services. From London-based challengers (Monzo, Starling) to BaaS platforms and insurtechs, the ecosystem has become a global benchmark.

Analysis & Opinion
The UK’s ability to cultivate fintech lies in its “sandboxes,” progressive open-banking mandates, and close ties between HM Treasury and the FCA. Yet Brexit uncertainties and visa restrictions pose lingering talent challenges. Firms must continue to advocate for flexible immigration policies and invest in domestic upskilling to sustain momentum. Moreover, the next phase will emphasize AI-driven personalization, regtech, and cross-sector collaborations (e.g., healthtech + fintech). The UK is at a crossroads: maintain its edge by adapting to emerging technologies, or risk ceding ground to agile hubs in Asia and North America.

Source: Yahoo Finance

6. University of Notre Dame and Visa Launch Fintech Foundations Program

Key News
The Meruelo Family Center for Career Development at the University of Notre Dame, in partnership with Visa, has introduced the inaugural Visa Fintech Foundations Program—a six-week immersive for undergraduates. Covering fundamentals of banking, digital currencies, decentralized finance, and industry career pathways, the pilot drew over 40 students within 48 hours of launch. Industry experts from Visa led weekly sessions, one-on-one consultations, and a capstone project. The program will run again in Fall 2025, with plans to expand to other universities.

Analysis & Opinion
As fintech reshapes finance, academia-industry alliances like this are vital to bridge the skills gap. Visa’s investment signals a recognition that tomorrow’s fintech leaders must understand both technology and regulatory nuances. Programs of this sort create a talent pipeline and foster brand affinity—benefitting both students and sponsors. The broader question: can similar models scale across disciplines (insurtech, regtech, wealthtech) and institutions? If so, we may see a new standard for fintech curricula, combining theory, practice, and peer networking.

Source: University of Notre Dame

The post Fintech Pulse: Your Daily Industry Brief – April 29, 2025 – Thunes, AI Agents, Railsr & Equals, Surfin, UK Fintech, Visa appeared first on News, Events, Advertising Options.

Fintech

Fintech Pulse: Your Daily Industry Brief – April 25, 2025 | Nubank, Fiserv, LendMN, Clara, Alternative Payments

Published

4 days ago

April 25, 2025

Peter Tolan

Welcome to today’s Fintech Pulse, your op-ed–style deep dive into the developments reshaping financial technology. In this edition, we examine five pivotal stories—from strategic regulatory wins and M&A moves to capital infusions empowering underserved markets. Our analysis delivers not just the facts, but the insights driving tomorrow’s fintech landscape.

1. Nubank Secures Mexican Banking License

News Summary
Brazil’s digital banking powerhouse Nubank has cleared a major regulatory hurdle in Mexico, obtaining initial approval from the National Banking and Securities Commission to transition from a payments-focused issuer to a full-service bank. This milestone permits Nubank to broaden its product suite—adding salary deposits, expanded savings offerings, and potentially consumer loans—currently restricted under its existing license. With over 10 million customers in Mexico, the move cements Nubank’s regional footprint.
Source: Reuters

Analysis & Commentary
Nubank’s license approval represents a calculated shift from neo-banking into universal banking, mirroring strategies by other challengers seeking diversified revenue streams. By evolving into a full bank, Nubank can integrate deposit-taking operations with cross-sell opportunities for credit, insurance, and investment products. This vertical integration not only boosts customer lifetime value but also insulates against margin compression in transactional services.

Industry watchers should note that Nubank’s success could spur incumbents to accelerate digital transformation, potentially igniting a wave of partnerships or counter-moves across Latin America’s top banking markets.

2. Fiserv to Acquire Money Money in Brazil

News Summary
U.S. payments stalwart Fiserv has inked a definitive agreement to acquire Brazilian fintech Money Money Serviços Financeiros, aiming to enhance its suite of merchant services for Latin America’s SMB segment. Pending approval by Brazilian regulators, the deal is slated to close in Q2 2025. Through this acquisition, Fiserv gains localized technology, a built-in merchant portfolio, and foothold in one of the fastest-growing digital payments markets.
Source: Electronic Payments International

Analysis & Commentary
The Fiserv–Money Money merger exemplifies established fintech firms’ appetite for inorganic growth in emerging markets. Rather than building solutions from scratch, acquiring a homegrown player accelerates time-to-market, leverages regulatory know-how, and taps existing customer trust.

Strategically, Fiserv’s playbook highlights three key benefits: 1) Market entry at scale, 2) Technology integration with minimal friction, and 3) Enhanced local relationships—factors critical in regions where regulatory complexity and cultural nuances can hamper pure digital entrants. As competition intensifies, incumbents and challengers alike will reassess M&A as the quickest path to growth.

3. LendMN Raises $20 Million to Drive Inclusion in Mongolia

News Summary
LendMN, Mongolia’s leading digital lending platform focused on micro, small, and medium enterprises (MSMEs), has secured a $20 million debt facility from Lendable. The injection will enable LendMN to expand its tech-enabled lending to underserved MSMEs, many of which lack access to traditional credit. Since launch in 2017, LendMN has disbursed over $70 million across 3,800 borrowers, catalyzing economic participation in remote regions.
Source: Financial IT

Analysis & Commentary
Fintech’s greatest promise lies in democratizing finance—and LendMN is a textbook case. By leveraging alternative data, digital onboarding, and remote underwriting, the platform bypasses hurdles that exclude rural entrepreneurs.

This funding underscores a broader shift: investors are increasingly channeling capital into purpose-driven fintechs that marry profitability with social impact. As LendMN scales, expect partnerships with global development banks and regional regulators to further legitimize digital credit as a cornerstone of economic growth in underserved territories.

4. Clara’s Meteoric Rise in Latin America

News Summary
Mexican fintech Clara has skyrocketed from $102,000 in first-year revenue to $28.3 million by 2023, earning a unicorn valuation north of $1 billion. Operating across Mexico, Brazil, and Colombia, Clara offers corporate spend management, expense tracking, and virtual cards. Despite its rapid growth, Clara faces headwinds: fragmented regulatory regimes, low financial literacy, and significant unbanked populations.
Source: Financial Times

Analysis & Commentary
Clara’s trajectory illustrates the dual-edged nature of rapid scale: while its product-market fit in corporate expense management is undeniable, sustaining growth demands navigating divergent compliance frameworks and investing in customer education.

Opinion: Clara’s next frontier should be embedded finance—integrating expense tools directly into ERP systems and e-commerce platforms. By shifting from a standalone app to an API-first infrastructure, Clara can embed its services where customers already work, accelerating adoption and deepening stickiness.

5. Alternative Payments’ $22 Million Funding Round

News Summary
Embedded fintech specialist Alternative Payments has raised $22 million in a Series B round led by strategic investors. The capital will fuel product development for seamless integration of payments, credit, and loyalty directly into non-financial platforms—retail, gaming, and SaaS ecosystems. This trend of “fintech as infrastructure” is gaining traction as businesses seek new monetization avenues.
Source: Axios Pro

Analysis & Commentary
Embedded fintech is more than a buzzword—it’s the next frontier of customer experience. By migrating financial services under the UI of non-financial apps, companies can drive conversion, loyalty, and ancillary revenue without re-directing users to external portals.

Looking ahead, partnerships between fintechs like Alternative Payments and major platform providers (e.g., e-commerce marketplaces, ERP vendors) will accelerate. The winners will be those who provide turnkey, compliant solutions that integrate seamlessly into existing tech stacks while managing regulatory risk.

6. Emerging Themes & Strategic Imperatives

From Challenger to Universal Bank: Nubank’s licensing pivot signals a maturation trend—fintechs evolving into full-service banks to command broader customer value chains.
Strategic M&A in Growth Markets: Fiserv’s Money Money acquisition underscores M&A as the fastest path to market in complex, high-growth regions.
Capital for Inclusion: LendMN’s latest facility reflects sustained investor appetite for fintechs driving social impact in underserved areas.
API-First Expansion: Clara and Alternative Payments exemplify the shift toward embedded finance, offering modular, scalable solutions that plug into enterprise workflows.
Regulatory Adaptation: Across markets, success hinges on navigating evolving compliance regimes; firms that can anticipate and adapt will secure durable advantages.

Opinion-Driven Takeaway:
The fintech sector’s trajectory in 2025 is defined by convergence—between digital banking and universal banking, between fintechs and incumbents via M&A, and between finance and everyday digital experiences through embedded APIs. To thrive, companies must balance innovation with regulatory foresight, pursue partnerships that accelerate scale, and root their growth in genuine customer value.

Conclusion

Today’s news paints a vivid picture: digital banking pioneers are leveling up to universal banking, payments giants are buying local champions to accelerate Latin American expansion, capital is flowing to fintechs advancing inclusion in frontier markets, and embedded finance continues its march toward ubiquity. For industry observers and participants alike, these developments affirm that fintech’s next chapter will be written in collaboration—with regulators, incumbents, and global investors—all striving to make finance seamlessly accessible to everyone, everywhere.

Stay tuned for tomorrow’s Fintech Pulse, where we’ll continue to bring you the insights that matter most.

The post Fintech Pulse: Your Daily Industry Brief – April 25, 2025 | Nubank, Fiserv, LendMN, Clara, Alternative Payments appeared first on News, Events, Advertising Options.

Fintech

Fintech Pulse: Your Daily Industry Brief – April 24, 2025 (Revolut, Citigroup, BNP Paribas, Coinbase, Omnea, HKIAS)

Published

5 days ago

April 24, 2025

Peter Tolan

In today’s rapidly evolving financial landscape, staying abreast of the latest developments in fintech is not just an advantage—it’s imperative. From blockbuster profit milestones to seismic collapses, and from talent wars in U.S. banking hubs to pioneering academic–industry collaborations in Hong Kong, April 24, 2025, offers a whirlwind of insights. In this edition of Fintech Pulse, we dissect five pivotal stories, offer opinion-driven analysis, and explore the broader industry implications.

1. Revolut’s Profit Bonanza: Mainstreaming the Super-App

What happened:
British fintech unicorn Revolut announced a record pre-tax profit of £1.1 billion ($1.46 billion) for the year ending December 31, 2024—up 149% year-on-year—on revenues of £3.1 billion, a 72% increase over 2023.

Why it matters:
Revolut’s profit surge marks its transformation from a niche currency-exchange app into a full-blown digital bank aiming for global scale. Having secured a UK banking license after a protracted three-year approval process, it now seeks to expand into lending products—credit cards, personal loans, and mortgages—to capture a larger share of customers’ financial lives.

Analysis & Commentary:
In my view, Revolut’s results underscore a broader trend: “super-apps” consolidating diverse financial services under one roof. Crypto trading and wealth management now account for a significant slice of profits, but true differentiation will come from how seamlessly Revolut integrates lending. As traditional banks shutter branches, fintech challengers can accelerate customer acquisition—but must manage credit risk carefully to avoid overextension. I believe regulators will keep a close watch on how Revolut scales its loan book, especially given its 86% year-on-year increase in customer lending balances to £979 million.

Source: CNBC

2. Stenn’s Implosion: A Cautionary Tale in Trade Finance

What happened:
Trade-finance fintech Stenn Technologies, once touted as a $1 billion rising star, collapsed into administration last December, leading to the loss of most of its 200 jobs. Investigations revealed that major banks—including Citigroup and BNP Paribas—backed deals they barely vetted, missing warning signs as weekly deal summaries ballooned to nearly $1 billion in size.

Why it matters:
Stenn’s collapse highlights persistent due-diligence gaps in trade finance. As fintechs promise speed and efficiency, established banks must not sacrifice risk controls for deal flow. The fallout eroded confidence and may prompt stricter counterparty assessments industry-wide.

Analysis & Commentary:
I argue that this episode is symptomatic of a “too eager to lend” mindset. In an environment of slackening yields, large banks pursued yield-rich fintech credit lines, only to face unexpected defaults. Going forward, I expect banks to re-evaluate their fintech partnerships, incorporating more robust real-time monitoring and third-party risk assessments. Stenn’s demise should catalyze the adoption of blockchain-based trade-finance platforms that embed transparency and immutable audit trails. Until then, caution remains the watchword.

Source: Bloomberg

3. Coinbase’s Southern Pivot: The Talent Play

What happened:
Coinbase, the largest U.S. cryptocurrency exchange, is targeting Charlotte, North Carolina, for a major talent investment—adding over 130 employees to its compliance and customer-support teams and potentially scaling to 1,000 new U.S. hires this year.

Why it matters:
Charlotte has long been a banking powerhouse, but its rising pool of tech talent makes it an attractive fintech hub. Coinbase’s move signals a shift in talent strategy: “meet talent where they are,” rather than concentrate in coastal tech camps.

Analysis & Commentary:
In my assessment, spreading operational centers beyond saturated markets is a savvy cost and culture play. By embedding in Charlotte, Coinbase gains access to experienced banking professionals and benefits from lower cost structures. However, maintaining a cohesive company culture amid geographic dispersion will be a challenge. Remote-first models must be balanced with local engagement to foster innovation. I anticipate other crypto players following suit, seeking a “hybrid hub” approach across U.S. secondary cities.

Source: Axios

4. Omnea’s eProcurement Crown: The Automation Imperative

What happened:
Procurement orchestration platform Omnea clinched the “Best Overall eProcurement Software” award at the 2025 FinTech Breakthrough Awards, recognized for its AI-driven intake, deduplication, and end-to-end automation.

Why it matters:
Procurement remains a pain point for enterprises—manual approvals, fragmented tools, and shadow processes lead to inefficiencies and maverick spending. Omnea’s win spotlights a surging wave of procurement fintech aimed at centralizing workflows, enforcing policies, and integrating with ERP ecosystems.

Analysis & Commentary:
I believe Omnea’s approach exemplifies the next frontier of “invisible finance”—embedding financial controls directly into business processes via Slack, Teams, or web portals. By surfacing policy-aligned choices and automating renewal reminders, companies can mitigate risk and free strategic buyers from administrative drudgery. Given Omnea’s backing by Spotify, Wise, and Pleo post-Series A, it’s clear that market demand for frictionless procurement tools is accelerating. Expect consolidation as ERP vendors scramble to embed or acquire these specialized platforms.

Source: FinTech Breakthrough

5. HKIAS Workshop: Bridging AI and Fintech Frontiers

What happened:
The Hong Kong Institute for Advanced Study (HKIAS) at City University of Hong Kong hosted a “Mini Workshop on AI and Fintech” featuring Professors David D. Yao, Houmin Yan, and Guangwu Liu. Key presentations covered emission-trading risk hedging, AI-driven credit-risk management for Amazon seller financing, and automated market-making research.

Why it matters:
Academic–industry collaboration is vital for next-generation fintech innovation. By tackling real-world challenges—carbon cost integration, dynamic hedging, AI credit scoring, and automated trading—researchers and practitioners can co-develop solutions that scale globally.

Analysis & Commentary:
I contend that Hong Kong is positioning itself as a “Fintech Alpha Node” for Asia, leveraging top-tier academics to incubate disruptive ideas. The workshop’s focus on tokenized clean-energy assets and AI for credit decisions signals where investment dollars will flow: sustainable-finance fintech and machine-learning risk engines. As regulatory sandboxes in Hong Kong and beyond open, such cross-pollination workshops will be the crucible for breakthrough products.

Source: Newswise

Conclusion: Charting the Course Ahead

Today’s headlines—from Revolut’s meteoric profit to Stenn’s cautionary collapse, and from Coinbase’s talent migration to Omnea’s automation triumph, capped by HKIAS’s academic symposium—paint a vivid picture of an industry in flux. Key themes emerge:

Super-App Evolution: Fintechs are racing to embed a full suite of services—lending, trading, payments—blurring lines with incumbent banks.
Risk Control Reboot: Collapses like Stenn’s will drive banks to reinforce due diligence and embrace transparent, blockchain-backed workflows.
Talent Democratization: The coastal tech epicenters are ceding ground; remote and regional hubs are powering the next wave of fintech innovation.
Invisible Finance & Automation: Real-time, AI-driven tools are automating procurement and credit decisions, embedding controls directly into workflows.
Academic–Industry Fusion: Workshops bridging theory and practice are critical to solving complex challenges—from ESG-linked assets to automated trading.

As we digest these developments, one thing is clear: fintech’s pulse is strong, but its beat demands constant vigilance, adaptability, and a thirst for innovation. Join me tomorrow for another briefing—because in fintech, today’s news is tomorrow’s roadmap.

The post Fintech Pulse: Your Daily Industry Brief – April 24, 2025 (Revolut, Citigroup, BNP Paribas, Coinbase, Omnea, HKIAS) appeared first on News, Events, Advertising Options.