Executive Summary
Let’s dive into this week’s top news!
Trends in Fintech Verticals
Top Data Breaches
BeyondTrust says 17 customers impacted by December cyberattack spree: BeyondTrust determined 17 customers were impacted in a December attack spree related to the compromise of a Remote Support SaaS API key.
The attack, attributed to a state-linked threat actor, included the compromise of several offices of the U.S. Treasury Department, where hackers gained access to unclassified data.
BeyondTrust said it worked with its affected customers to support their respective investigations by providing them with artifacts, logs, indicators of compromise and other information.
Procter & Gamble operations unhindered by Blue Yonder disruption: The consumer goods company built an in-house solution to keep orders moving as its transportation management system provider navigated a ransomware attack. Procter & Gamble CFO Andre Schulten said a shutdown of its transportation management service provider Blue Yonder in Q4 had a “relatively benign” impact on its operations, according to a Dec. 3 session at the Morgan Stanley Global Consumer and Retail Conference.
While Schulten didn’t specify the cause of the shutdown, Blue Yonder was the target of a ransomware attack in late November, and major companies, including Starbucks, experienced disruptions due to the outage. The Arizona-based supply chain management software provider was already near full recovery by the beginning of December.
Engineering giant Smiths Group says hackers accessed its systems during cyberattack: British engineering giant Smiths Group is scrambling to restore systems that were knocked offline in response to a cyberattack.The company said it was managing the attack, which it described as a cybersecurity incident that resulted in unauthorized access to some of its systems.
“We are currently managing a cyber incident involving unauthorized access to our systems. As soon as we became aware of this activity, we rapidly isolated the affected systems and activated business continuity plans,” a Smiths spokesperson told SecurityWeek.
In an incident notice, Smiths said it has been working on restoring the affected systems and on determining the impact on its business. The engineering giant’s shares dropped over 2% shortly after the hack was publicly disclosed.
While the company has not shared specific information on the type of cyberattack it fell victim to, ransomware might have been used, as taking systems offline is the typical response to a ransomware attack.
Latest Funding News
ElevenLabs, the hot AI audio startup, confirms $180M in Series C funding at a $3.3B valuation: ElevenLabs said on Thursday it has raised $180 million in a new funding round that triples the voice cloning artificial intelligence startup’s valuation to $3.3 billion.
The Series C funding round was co-led by Andreessen Horowitz and Iconiq Growth, with participation from additional new investors NEA, World Innovation Lab, Valor, Endeavor Catalyst Fund and Lunate.
Investors are racing to fund generative AI startups after the meteoric success of OpenAI’s ChatGPT to capitalize on the commercial potential of AI-powered products.
OpenAI said to be in talks to raise $40B at a $340B valuation: OpenAI is reportedly in discussions to raise up to $40 billion in a new funding round, potentially pushing its valuation to $340 billion. According to a report from The Wall Street Journal, SoftBank is expected to lead the investment, contributing between $15 billion and $25 billion to the artificial intelligence company and a part of it will go into Stargate AI infrastructure venture.
This development comes amid growing competition in the AI space, particularly from China-based DeepSeek, which has been making headlines in the market. OpenAI CEO Sam Altman recently hinted at significant advancements in the company’s collaboration with Microsoft. In a post on the social media platform X, he stated that the “next phase” of the partnership would surpass expectations.
Data center operator DataBank raises $250 million from TJC: DataBank, a data center colocation, interconnection, and managed services company, has raised $250 million.
The investment from TJC (formerly The Jordan Company) came from excess interest in the company’s $2 billion round last October. The operator has raised nearly $5bn in debt and equity over the past year and a half, with $600m of shares also sold by existing investors.
“We are delighted to have TJC join our investor group,” said Raul K. Martynek, DataBank’s CEO. “Their investment and the secondary offering signal both confidence in our strategy and our proven ability to execute and scale the DataBank platform.”
Swan secures €42M to lead Embedded Banking in Europe: Swan, a company specialising in embedded banking, has raised €42m in a Series B funding round.
The funding will support Swan’s mission to make embedded banking the standard across Europe. The company believes the industry is undergoing a major transformation, where financial services are becoming a key part of everyday business tools rather than standalone applications.
Swan offers a banking platform designed to simplify the process of embedding financial services. By developing its own core banking infrastructure, the company ensures full control over its technology, allowing it to deliver advanced, localised solutions for businesses across Europe. It also takes on regulatory responsibilities, including compliance, KYC, and fraud prevention, so its partners can focus on growing their businesses.
Brooklyn trio raises $10 million for startup that wants to help open-source developers get paid: Merit Systems is trying solve a longstanding problem in tech: how to reward open-source developers. The startup has raised a $10 million seed round co-led by Andreessen Horowitz’s crypto fund and Blockchain Capital.
Merit is headquartered in Brooklyn’s old Domino Sugar Refinery, which has been recently converted into a modern office complex.
Here are all the IPOs reported to be in the works for 2025: Tech is upbeat about more companies going public this year, thanks in part to a new presidential administration that has promised to ease regulations and embrace industries like crypto and AI.
But there were already early signs of bullishness — especially in fintech — thanks to the wildly successful 2024 IPO of ServiceTitan, a SaaS platform for the trades.
Banking and Payments
Wise Launches in Mexico and Expands Services for Customers in Latin America: Wise, a global technology company, has announced its official entry into the Mexican market. The new service, designed for Mexican nationals who need to send money abroad, enables transparent, fast, and seamless international money transfers.
Wise’s launch in Mexico is part of the company’s goal of improving cross-border payments and providing financial services to consumers.
Now, Mexican nationals can easily and quickly send money from Mexico to over 40 currencies and 160 countries using Wise’s fully digital app or website, which is accessible in one place. This includes the ability to send money from MXN to USD, a vital offering that hugely benefits Mexican nationals with connections to the United States.
JetBlue and Barclays Launch Premier Credit Card Packed with Premium Travel Benefits: JetBlue has announced that it rolled out the JetBlue Premier World Elite Mastercard, issued by Barclays US Consumer Bank, developed to provide additional benefits to frequent travellers and everyday spenders.
By including the JetBlue Premier Card in its offering, the airline aims to advance its JetForward strategy and equip its customers with more benefits and capabilities. Commenting on the announcement, representatives from JetBlue underlined that the credit card was designed based on input offered by customers and Mosaic members, building on the perks of TrueBlue and Mosaic programmes to provide more benefits on the ground and in the air.
UK plans ‘digital wallet’ for driver’s licenses and other ID: The UK government is launching a GOV.UK Wallet and App to simplify access to services and documents like digital driver’s licences, alongside reforms to public sector technology to save £45 billion and drive efficiency and growth.
Brits will be given the option to use a digital version of their driver’s licence from their phone to easily prove their age when buying age restricted items online and in person – as well as proving their right to drive.
A mobile driver’s licence will be one of the first digital documents in a GOV.UK Wallet launched later this year and will ultimately allow people to prove their age from their phone in shops or online, the Science Secretary Peter Kyle announced today.
Wealthtech
Emirates NBD’s Deniz Ventures, Rasmal Ventures provide Mena securitisation innovation $7.6m boost: Qatar’s Rasmal Ventures and Deniz Ventures — the venture capital arm of DenizBank under Emirates NBD Group — have jointly invested $7.6 million in TeamSec, the world’s first AI-driven securitization platform. TeamSec operates on a “Securitization-as-a-Service” model, using AI and data analytics to make financial markets more efficient and transparent.
The significant investment will fuel TeamSec’s expansion across the MENA region, helping to scale operations, while diversifying the company’s offerings and enhancing existing services.
What are the WealthTech markets to watch in 2025?: The WealthTech sector continues to have strong growth opportunities across major markets, like the US and Europe, but it is also gaining significant attraction in other markets around the world.
Adoption of WealthTech solutions is only expected to continue over the coming years. For instance, ResearchAndMarkets.com estimates the WealthTech solutions market to be worth $5.4bn in 2024 and grow at a CAGR of 14.9% to be valued at $9.4bn by 2028.
The sector has largely been led by countries like the US, UK, Germany and France but funding in these regions has been in decline. With 2024 being a tough year for a lot of businesses, it is no surprise that total funding in the WealthTech sector declined. Research from FinTech Global found that US WealthTech deal activity dropped by 65% YoY, with total funding going from $23.1bn down to $8.2bn – a 65% drop. Similarly, European WealthTech deal activity plummeted by 80% in 2024 YoY, with total funding across the continent dropping 65% to $5.4bn in 2024.
Insurance Technology (Insurtech)
Nationwide and Integrity Wealth Partner to Expand Securities-Backed Lending Solutions: Nationwide is expanding the reach of its Securities-Backed Line of Credit (SBLOC), Nationwide Smart Credit, through a new partnership with Integrity Wealth. This collaboration gives Nationwide access to Integrity’s network of financial professionals while enhancing Integrity’s portfolio with a digital and streamlined SBLOC offering.
Nationwide is also offering a cost comparison calculator to help financial professionals assess the benefits of securities-backed lending. The tool provides side-by-side comparisons for clients evaluating options to access cash, whether for an unforeseen expense or a planned purchase.
Aviva selects AutoRek to bolster CASS compliance and operational efficiency: Aviva, one of the UK’s leading insurance, wealth and retirement businesses, has chosen AutoRek, a leader in automated reconciliations, as their reconciliation and CASS tool.
The collaboration aims to help Aviva automate its reconciliation workflows, reducing manual effort, enhancing compliance with regulatory requirements, and improving operational efficiency, according to InsurTech Insights.
By leveraging AutoRek’s platform, Aviva seeks to minimise operational risks and streamline its financial operations.
AutoRek is a RegTech firm offering advanced automated reconciliation and data management solutions to financial institutions.
Its technology is designed to enhance control, transparency, and regulatory compliance by eliminating manual processes and ensuring auditability.educe operational inefficiencies, streamline compliance, and enhance overall financial control.
African Insurtech Pula Secures €10 Million Grant to Insure 10 Million Farmers: Pula Foundation, a Rwandan-based insurtech company, has received a €10 million grant from the Bayer Foundation to expand access to climate risk insurance for 10 million smallholder farmers by 2030. The significant grant, announced at the World Economic Forum, will be used to provide insurance coverage worth US$127 million across seven countries, including Bangladesh, Pakistan, Malawi, Ghana, Nigeria, Kenya, and Mali. The initiative aims to enhance the resilience of smallholder farmers in the face of increasing climate-related disasters, such as droughts and floods.
Founded in 2014 by Rose Goslinga and Thomas Njeru (pictured), Pula has pioneered the development of scalable, data-driven agricultural insurance solutions. This partnership with Bayer will significantly expand the reach of these solutions, enabling farmers to recover from yield losses and reinvest in their livelihoods.
Regulatory Technology (Regtech)
Sumsub Joins Payments Association EU to Help Stop ID Fraud in Digital Transactions: Regtech Sumsub announces its membership into the Payments Association EU, an industry group of stakeholders in the payments sector that fosters commercial connections between businesses and advocates for better policies.
It joins a group of members, including the following firms: Mastercard, Visa, and Paypal and retailers like eBay and Amazon.
As a patron-level member of the organization, Sumsub will have the opportunity to speak to policymakers and senior industry leaders to advocate for more “effective protections against the growing threat of identity fraud.”
FCA serves first fine for breach of transaction reporting requirements under Mifir: The UK Financial Conduct Authority (FCA) has served its first enforcement action for breach of transaction reporting requirements since it came under law through the UK Markets in Financial Instruments Regulation, Mifir. The case concerns Infinox Capital which has been fined £99,200 by the watchdog for failing to submit 46,053 transaction reports between 1 October 2022 and 31 March 2023.
This oversight “risked market abuse going undetected,” said the regulator, adding that “to monitor, detect and disrupt market abuse effectively, the FCA needs to receive complete, accurate and timely transaction reports.”
Blockchain and Cryptocurrency
Trump Media launches FinTech services brand amid crypto boom: Truth Social owner Trump Media & Technology Group announced Wednesday it plans to expand into financial services and potentially buy bitcoin and other cryptocurrencies. Shares of Trump Media (DJT) climbed 8% on the news.
Trump Media said it plans to launch a fintech brand called Truth.Fi and to introduce investment vehicles that will focus on American growth, manufacturing, energy and the “Patriot Economy.” The push into fintech was telegraphed by a trademark application filed in November.
The moves by Trump Media, a company built on President Donald Trump’s brand, are likely to raise further conflict of interest concerns about the second Trump administration.
Kraken launches Kraken pay to simplify crypto payments:
Kraken has launched Kraken Pay, a service that allows users to send payments using over 300 cryptocurrencies and fiat currencies.
The platform enables account holders to transfer funds internationally and settle transactions instantly. Following the launch, Kraken pointed out that traditional financial transactions, especially cross-border payments, can be slow and costly. Kraken Pay aims to simplify the process by allowing users to send payments directly from their Kraken accounts.
The service supports conversions between different assets, making it possible for a sender using Bitcoin to transfer funds to a recipient who prefers CHF, with Kraken handling the conversion and settlement.
Stablecoin payments platform Cedar Money raises $9.9m: Cedar Money, a payments company that enables seamless cross-border money movement on stablecoins, has announced a $9.9 million seed round led by QED Investors. North Island Ventures, Wischoff Ventures, Lattice, and Stellar also participated.
The funding will enable Cedar Money to accelerate its mission of transforming international money flows using cutting-edge payment infrastructure.
Cedar Money’s platform addresses the challenges of the correspondent banking network, a system dating back to the 1970s that has resulted in slow, expensive, and complex processes, creating barriers for businesses. Cedar Money leverages stablecoins to deliver faster, more reliable, and cost-effective cross-border payments between developed and emerging markets.
Artificial intelligence
Who is Liang Wenfeng, the founder of DeepSeek?: DeepSeek founder Liang Wenfeng doesn’t fit the profile of an artificial intelligence pioneer that’s common in the popular imagination. Unlike OpenAI CEO Sam Altman, for example, he’s not a Silicon Valley entrepreneur.
Instead, Liang hails from the world of finance. After graduating from Zhejiang University, he cofounded the quantitative hedge fund High-Flyer in 2015 and incorporated AI in its trading strategies to predict market trends and help make investment decisions.
Nearly half of consumers “comfortable” with carriers using AI – report: Insurity, a provider of cloud-based solutions for insurance carriers, brokers and MGAs, has released its 2025 AI in Insurance Report, which examines consumer perspectives on artificial intelligence in property and casualty insurance, particularly in severe weather.
The report found that 45% of consumers are comfortable with insurers using AI to monitor and issue real-time alerts about potential weather-related risks. However, 42% expressed concern about how the accuracy of these predictions might affect their premiums or coverage.
The results highlight a key challenge for insurers as they introduce AI-powered preventative services while ensuring transparent communication about their reliability and financial impact.
SoftBank in talks to lead OpenAI funding round at $300 billion valuation: SoftBank Group is in talks to lead a funding round of up to $40 billion in artificial intelligence developer OpenAI at a valuation of $300 billion, including the new funds, sources said, in what could be a record single funding round for a private company.
The funding comes as Chinese startup DeepSeek has launched an inexpensive AI model that has caught worldwide attention and challenged expectations of what it costs to develop and deploy AI.
FTC raises antitrust concerns over Microsoft $13bn investment in OpenAI: The Federal Trade Commission (FTC) has raised antitrust concerns regarding tech giant Microsoft’s $13.75bn investment in OpenAI. In a report, the commission suggested that the investment may extend Microsoft’s dominance in cloud computing into the emerging AI market.
The report highlighted several potential competition concerns, including: the partnerships’ impact on access to key inputs such as computing resources and engineering talent; the potential increase in switching costs for AI developer partners.
The report also indicated the possibility that cloud service providers’ partners gain access to sensitive technical and business information not accessible to others.
How DeepSeek changed Silicon Valley’s AI landscape: The release of China’s new DeepSeek AI-powered chatbot app has rocked the technology industry. It quickly overtook OpenAI’s ChatGPT as the most-downloaded free iOS app in the US, and caused chip-making company Nvidia to lose almost $600bn (£483bn) of its market value in one day – a new US stock market record.
The reason behind this tumult? The “large language model” (LLM) that powers the app has reasoning capabilities that are comparable to US models such as OpenAI’s o1, but reportedly requires a fraction of the cost to train and run.
🎙️ Tech Behind Fintech Podcast Highlights
Coming Up This Week
Join us on Friday, February 7th, 2025, at 12 PM EST, for an insightful episode of Tech Behind FinTech, featuring Aditi Subbarao, Global Financial Services Lead & Strategic Partnerships Lead at Instabase. We’ll explore how Generative AI is revolutionizing financial services by unlocking the potential of unstructured data. Aditi will share her expertise on how AI-powered automation is streamlining workflows, enhancing decision-making, and driving innovation across banking, insurance, and fintech. Don’t miss this deep dive into the future of AI-driven financial transformation!
More than 80% of the data within financial institutions is unstructured, making it difficult to process and extract value. With Generative AI, banks, fintechs, and insurers can now analyze, validate, and act on critical data faster than ever before, unlocking new efficiencies, improving customer experiences, and driving innovation.
What You’ll Learn:
✅ The Power of Generative AI in FinTech – How AI is reshaping banking, insurance, and financial services by automating workflows and accelerating decision-making.
✅ Solving the Unstructured Data Challenge – The impact of AI-powered document processing on everything from loan origination to compliance.
✅ Future-Proofing Financial Services – How leading institutions are integrating AI to enhance customer experience, reduce risk, and streamline operations.
Whether you’re a FinTech leader, AI enthusiast, or financial services professional, this episode will provide actionable insights into how AI is reshaping the industry and unlocking new possibilities.
Live Show Links
Website: https://techbehindfintech.com/featured/the-role-and-evolution-of-the-chief-revenue-officer-in-fintech
LinkedIn: https://www.linkedin.com/events/7291163431200530434
YouTube: https://www.youtube.com/watch?v=Zo9V9p6xmdI
Facebook:https://www.facebook.com/events/1155956672540935
In case you missed it – Latest Episode Highlights
The Role and Evolution of the Chief Revenue Officer in FinTech
Last Friday January 31st, Tech Behind FinTech hosted Matt Beecher, Chief Revenue Officer at interVal, to discuss unique insights about the challenges and opportunities CROs face in this dynamic industry.
Key Highlights:
🎯 Strategic Leadership: Aligning sales, marketing, and product development for success.🏆 CRO Role Evolution: Moving beyond revenue generation to tech-driven growth strategies.
⚡ FinTech’s Rapid Changes: Why staying ahead in a competitive market is crucial.
Missed the live show? Watch the full episode now on our website or any of the platforms linked below!
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👉 https://techbehindfintech.com/podcast/all-episodes
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