DigFin Group

Sometimes a different approach to business journalism can illuminate the wider things going on. That's our excuse and we're sticking to it. https://lnkd.in/gcvfA9ri #tokenization #rwa

Brazil, India and South Korea have emerged as the biggest success stories for open banking. Open banking comes in many varietals, but after several years of hits and misses, we can begin to identify the best models. That doesn't mean there's an open-banking monolith taking shape, but it does help to see not just what's working, but why. DigFin Group takes a look around the world to grasp the current state of play for open banking, how readily these concepts expand to the broader remit of open finance, and how regulators, banks and fintechs can think about their own market. #openbanking #openfinance #openapi https://lnkd.in/gc6hCkw9

“Cat-bond models need to address and struggle with climate change,” says Mohit Mehra of Peak Re, who spoke recently about how these models work, and the #data they require. DigFin Group takes a good, hard look at how #AI can, hopefully, make a huge difference to how catastrophe bonds are priced, and expand the ability for cover against natural disasters. But this will require more than integrating new types of data and using better AI models. It will also need authorities - all kinds, not just financial regulators - to proactively shake up the way information is gathered and disclosed. https://lnkd.in/gVEMgNjN #catbond #ils #insurance

"The lesson is that if licensed entities with retail deposits are going to get into bed with #crypto exchanges, they need to double down on compliance, and be realistic about the costs and obligations." So says DigFin Group in this look at why 케이뱅크(Kbank) is postponing a long-expected IPO – which may be due to its over-reliance on UpBit, the crypto exchange. More #digitalbanks (aka #virtualbanks or #neobanks) are teaming up with exchanges and other players in the crypto space. This can provide growth and differentiation. But the case in Korea shows what happens when these relationships go too far. https://lnkd.in/ghQ3y-gR

“We’re at the early stages of unlocking the real power of data that transits through the platform,” says Tarun Nagpal of S64, a young #wealthtech company focused on private markets. According to DigFin Group, S64 has finally completed its strategy to operate in most major APAC markets, with Australia the final puzzle piece. Local regulatory requirements led the wealthtech to team up with tech-PE firm Hg to finalize a solution for Aussie investors and private banks. The expansion was supported by a Series A funding round in 2024. Thomas Hu is running the APAC business out of Hong Kong. S64 is taking on the likes of Moonfare and iCapital - not to mention parallel efforts build on blockchain rails to make private markets accessible to a broader investor base. At a time when valuable companies are staying private as long as possible, digital technology is enabling many more investors to access these companies. It's still early days but fintech will force us to rethink the definition of a 'private' company.

"The player that reduces the number of counterparties, touchpoints, and risks is the one that delivers the most value." So says DigFin in a look at opportunities to massively grow cross-border #payments as business goes increasingly digital. We look at reasons why fragmentation endures, and the resulting problems this creates, including opaque businesses, too many intermediaries, and other frictions. The results of a survey by Visa Direct reveal a readiness by global businesses and individuals to switch companies and financial service providers if these problems can be addressed. The story also includes a link to a report detailing the marketplace worldwide. I learned a lot from it and I encourage you to check it out, particularly if you are a #fintech or a #bank looking to scale your solutions for cross-border payments. https://lnkd.in/grkyreEP

“Embedded is not huge today, but we want to diversify our lines of business,” says Alessandro Lavenia at Generali. This is one reason why the insurer sought a #payments partner for its Hong Kong business that would broaden its ability to collect premiums via new methods beyond Visa and Mastercard. The solution, put together by Citi, was provided by local #fintech Wonder (part of Bindo Labs). Wonder is known for enabling digital payments for taxis. "If we can integrate digital payments in taxis, why not with insurers?" says co-founder Jason Ngan. The deal also marks Citi's building out its merchant acquiring capabilities, says Sean Brierly. DigFin Group's story highlights the way banks, insurers and fintechs are connecting to solve current problems and set the stage for business expansion - into new markets and new products. Carine Souvannavong #embeddedinsurance #openbanking https://lnkd.in/giAYgQMP

"It's more like actuarial science than vague, hand-wavy stuff," says Thomas Thurston, chief technologist at Ducera Partners LLC. He's talking about a big-data and AI-led approach to #vc and #privateequity investing – as well as #investmentbanking and M&A. It's all focused on private companies, he tells DigFin Group. Since its launch in 2015, Ducera has put AI at the core of deal origination and startup investing. It's a rare approach in private markets, but one that Thurston thinks will catch on. (Private capital firms, banks, and hedge funds have been using algos in public markets for decades.) Because of results, because of the ability to analyze global ecosystems rather than the dozens of companies in a banker's or GP's Rolodex, because it scales. And with #genAI, it's now easier to handle. Oh, and necessity, as most investors "feel existential anxiety when they look at what AI can do." https://lnkd.in/gEVyg66U

"Access is the million-dollar question," says Karim Gilani at Sun Life, referring to how #insurance companies are chasing business from Asia's fast-growing ultra-HNW segment. This line of business hit the public eye in February when HSBC Life sold a $250 million whole-of-life policy in Hong Kong. But these customers can be hard to risk-manage: “Strange things happen when people are worth more dead than alive,” notes Akash Gupta of Munich Re. This segment remains very high-touch, but insurers and specialist brokers are starting to use fintech to help reach wealthy customers and to support relationship managers when they interact with customers. DigFin Group's deep dive into this business looks at how some #ai and #insurtech startups are finding a way, as well as the challenges to #automation. Jean Wong Justin Man Partha Rao Geoffrey Au Marc Karim Baloch https://lnkd.in/gPHs-c9h

Is #insurtech still a viable play for #venturecapital money? There are some reasons to think that in most cases, it's not, especially in Asia. The data suggests insurtech funding is back to 2018 levels and there's not a trendline indicating it will rise. Corporate VCs and reinsurers are pulling back. This is a bad sign because insurtech requires most of all PATIENT capital. This makes it difficult for VC. And the biggest drop off in VC funding to insurtech is Series C-plus, so for earlier investors there's not an obvious exit. The public markets usually drive FOMO but when the segment's leader is Lemonade, nobody's worried about missing out. But it's not all bad news. There are greenshoots and certain areas where successes are happening. The mega trends that have buoyed the insurance industry are also under pressure, so over time the industry must digitalize. Whether those solutions are found among VC-backed startups, though, is not guaranteed. https://lnkd.in/eJT8aWqy