Issue #379 - Stronger USD? Yes, But It’s Not That Good September 1st, 2022

After the comments of Fed Chairman Jerome Powell about higher interest rates to address inflation, the US dollar continued to appreciate. Higher interest rates and a stronger currency can negatively affect not only fintech firms – especially those involved in the payment industry – but also US-based businesses that earn most of their revenue from foreign markets.

FinTech World Forum 2022 (https://fintechconferences.com) is based in London UK Europe as one of leading fintech events 2022 for global financial services, finance and banking technology industry. Its focuses on Mobile Payments, Lending, Insurance, Blockchain, Bitcoin, Investment, Money, Crypto, Cryptocurrency, Digital, Innovation, Wallet, Pensions, Funds, Payment, Tech, Financial Services, Technology, Bank, Wealth Management, Insurtech, Regtech and Wealthtech. For more info visit: https://fintechconferences.com/

Attend the premier conference for data & analytics leaders in North America – Chief Data & Analytics Officers, Fall on October 10-12, 2022 in Boston, MA. New this year is a personalized learning and networking track for data & analytics executives serving the Financial Services industry. Join your peers who understand your challenges and celebrate your successes when it comes to the nuanced intricacies of data & analytics. Qualified data & analytics folks can attend at no cost with a VIP pass.

Kristen Broady, a senior economist at the Federal Reserve Bank of Chicago, shares her thoughts on the condition of unbanked people, whose number is especially high among black communities. She also discusses the role fintech companies and banks can have in lowering these numbers, as well as the importance of education and transparency.

Brazilian LIFT (Financial and Technological Innovation and Technology Laboratory), a public program aimed at reaching financial inclusion in the country, launched a new blockchain and crypto-related project to reach its goal. The plan is to create a DeFi liquidity pool that will allow the tokenization of financial assets and the decentralization of credit risk. To realize the project, the Banco Central do Brasil chose seven partners, among which the largest Brazilian private bank Itaú.

It seems that the number of crypto billionaires – that is, those who built their wealth by investing in cryptocurrencies or crypto-related companies, increases every year. There are many reasons behind the success of these crypto enthusiasts – even if the risks are considerable when compared to the risks involved in traditional markets investments.

Different interest rates, approaches towards neo banking, and regulatory frameworks across the world, ignite – once again – the long-lasting debate on the competition between traditional banks and neo banking. Serge Beck, co-founder and CEO of Optherium Labs, shares his thoughts and possible scenarios for the next decade.

While the financial market and businesses are changing very rapidly after the most severe phases of the pandemic – and while they face more challenges, AI in finance proves that technology can still help people to make the most out of their money. Emotional investing is a huge threat for investors, especially during downturns, but some tools can be used to avoid that.

To prove that downturns are not only negative, the crypto space is constantly under development to offer new services, fun, and passive income opportunities.

According to McKinsey analysis, between 2020 and 2021 African fintech thrived despite the pandemic and social and economic issues faced by the continent. African tech-related start-ups tripled, and most of them are fintech companies. This boom may represent just the end of the beginning, but four possible challenges may slow the success of the African fintech industry.

As proof of the fintech success in Africa, investments in the country are still increasing despite hard economic times. The Nigerian fintech Grey has just raised $2 million to go on with its project to facilitate payments from and towards Africa by making it easier and less expensive to create and manage bank accounts.

In 2020, interest rates reached historically low levels, and the pandemic led more people to think about different living solutions and enter the real estate market. But as interest rates rise, the market is feeling the pressure and fintech firms make no exception.