Executive Summary
This week in fintech, major developments are shaping the future of payments, AI, cybersecurity, and digital banking. From groundbreaking partnerships and product expansions to pressing concerns over data security, the industry continues to evolve at a rapid pace. As BNPL expands into traditional banking, AI-driven innovations face new hurdles, and P2P payments surge past key milestones, businesses and consumers alike must adapt to these shifts.
📩 Stay ahead of these fintech trends! Read our full report for expert insights and deeper analysis on the latest industry developments.
Let’s dive into this week’s top news!
Trends in Fintech Verticals
Top Data Breaches
Cyberattack Disrupts Publication of Lee Newspapers Across the U.S: Lee Enterprises, the media company that owns newspapers across the U.S., reported widespread disruptions following a cyberattack last week. The company confirmed that its newspapers were unable to print, experienced issues with their websites, and published reduced editions as a result of the attack. In a statement released on February 9, Lee Enterprises described the incident as a “cybersecurity event” and stated that it had notified law enforcement authorities. The company, which operates more than 70 daily newspapers—including The St. Louis Post-Dispatch—and nearly 350 weekly and specialty publications across 25 states, did not disclose details regarding the cause of the attack or the identity of those responsible.
Hackers offer 20 million OpenAI credentials for sale, but OpenAI says there’s no evidence of a breach: A cybercriminal acting under the moniker “emirking” offered 20 million OpenAI user login credentials this week, sharing what appeared to be samples of the stolen data itself.
OpenAI responded, stating, “We take these claims seriously. We have not seen any evidence that this is connected to a compromise of OpenAI systems to date.”
Threat intelligence firm Kela has conducted an analysis of the sample data made available by the hacker and determined that the OpenAI credentials were likely obtained by infostealer malware.
Massive Data Breach Hits Healthcare Organizations in New York and Pennsylvania: UDMI, a medical imaging center in New York, says threat actors accessed certain information on its systems for a brief period on November 26, before the suspicious activity was discovered.The hackers, which it did not name, accessed personal information such as names, addresses, dates of birth, referring physicians, and diagnosis and treatment information.
The imaging center informed the US Department of Health and Human Services (HHS) that 138,080 individuals were impacted by the data breach.
Latest Funding News
Datalign Secures $9M Seed Funding to Accelerate AI-Powered Financial Advisory: Datalign, an AI platform matching people with financial advisors, has secured a $5 million investment from Link Ventures. The investment brings Datalign’s seed funding to $9 million on a post-money valuation of $75 million.
Founded in 2022, Datalign connects consumers and vetted financial advisory firms on its proprietary platform. The firm uses data and AI-powered analytics for a streamlined and efficient experience for both sides by aligning their unique needs to create one-to-one matches.The funds will be used to grow Datalign’s team of AI experts ahead of the release of several AI-focused products in 2025.
Raenest Raises $11M Series A to Expand Global Banking for Africans: Raenest, a multi-currency accounts platform for individuals and businesses across Africa, has completed an US$11 million Series A funding round.
QED Investors led the investment, with participation from Norrsken22, alongside existing investors Ventures Platform, P1 Ventures, and Seedstars. This brings Raenest’s total venture funding to US$14.3 million.
The company plans to use the funding to expand its operations in Nigeria and Kenya, while also entering the United States and Egypt this year.
Ghana’s Affinity raises $8 million to bank individuals and small businesses: Affinity Africa announces it has raised US$8 million in an oversubscribed Seed Round led by Grazia Equity and BACKED VC to accelerate its mission of delivering affordable and accessible financial services to the underserved and unbanked communities.
The digital banking platform, which focuses on individuals and micro, small, and medium enterprises (MSMEs), officially launched in Ghana in October 2024 and has onboarded over 50,000 customers to date, 65% of whom never had access to formal banking products and over 60% are women operating in the informal sector.
Investing Platform eToro Files for US IPO: eToro has reportedly filed for an initial public offering (IPO) with US regulators.
Founded in 2007, eToro describes itself as a social investing enabler that aims to revolutionize the way people invest. In March 2019, the company added crypto trading for US customers. Today, depending on the market, eToro offers over 7,000 different financial assets, including crypto and stocks. eToro reports over 30 million investors in 100+ different countries.
The update was revealed about a month after eToro submitted filings to the US Securities and Exchange Commission (SEC) as it moved towards launching an IPO in New York.
Banking and Payments
ShopMate Announces Partnership With DNA Payments to Transform Payment Solutions for Convenience Stores: ShopMate has announced a new partnership with DNA Payments, a provider of advanced payment solutions. Through this strategic partnership, ShopMate is enhancing its support for retailers by integrating “a seamless and efficient” payment solution into its EPOS system, ShopMate Pay. ShopMate Pay will be available to existing and new ShopMate customers.
“At ShopMate, we understand the challenges convenience stores face,” said Brian Eagle-Brown, managing director at ShopMate.
Affirm brings BNPL debit cards to more users through deal with FIS: A new partnership between FIS and Affirm will enable banks to offer Buy Now, Pay Later (BNPL) via debit cards.
San Franciso-based Affirm provides real-time underwriting technology and flexible payment solutions, including BNPL and monthly payment plans.
Through the partnership, FIS banking customers will be able to use Affirm’s services in their existing debit card programme through their digital banking mobile apps.
Under the agreement, participating FIS debit processing banks will also be able to offer eligible customers biweekly and monthly payment plans through the bank’s existing debit card products and, potentially, merchant-funded financing offers to provide longer payment terms and higher credit limits from Affirm’s merchant partners.
Klarna and JPMorgan Payments partner to expand BNPL services for merchants: Swedish BNPL giant Klarna has struck a new deal with JPMorgan Payments to see its flexible financing solutions integrated into JPMorgan Payments’ merchant services.
The partnership aims to broaden the accessibility of Klarna’s payment options, including its interest-free BNPL solution. This move is expected to provide merchants with a wider array of payment choices to enhance customer experience and drive sales.
Klarna, a leading BNPL provider, enables consumers to split purchases into instalments, often interest-free, while offering merchants tools to boost conversion rates and customer engagement. The company has rapidly expanded beyond BNPL, providing a comprehensive shopping ecosystem, including its own app and AI-powered personal finance management features.
Zelle’s $1 Trillion Triumph: The P2P Powerhouse Outpacing PayPal: Zelle, the payments network run by banks-owned Early Warning Services, crossed $1 trillion in total volumes last year, which it said was the most ever for a peer-to-peer platform.
The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.
Last year’s payment volumes were “by far the most money ever moved by a P2P payments service in a single year,” Denise Leonhard, general manager of Zelle, told CNBC.
BNY sends largest instant payment in US history: The $10 million payment was made by BNY and transmitted over The Clearing House’s RTP® network, according to a Monday (Feb. 10) press release. It came one day after the RTP’s transaction limit increased from $1 million to $10 million, a change TCH first announced last year.
The Clearing House (TCH) described the transaction in the release as an “inter-company liquidity management payment,” from global transfer agent Computershare — BNY’s transfer agent — to another bank account.
“This landmark payment from Computershare highlights the growing demand for higher value instant payments, providing a seamless alternative to traditional wire transfers and checks while improving liquidity management in today’s fast-paced economy,” TCH said in the release.
Wealthtech
Era Raises $6.2M to Advance Agentic AI for Personalized Wealth-Care: Era, the AI-driven financial intelligence platform redefining personal wealth management, has secured $6.2 million in seed funding. The round was co-led by MaC Venture Capital, Third Kind Venture Capital, and Protagonist, bringing Era’s total funding to $9.1 million with additional participation from Clocktower Ventures, K5 Ventures, and Northzone.
In addition to this milestone, Era has announced a groundbreaking partnership with Cerebras Systems, aiming to introduce agentic AI into personal finance. This collaboration is a major step toward Era’s mission of making “wealth-care” a universal reality by integrating real-time AI-driven financial intelligence into everyday money management.
Insurance Technology (Insurtech)
Clearcover unveils insurance exchange to boost non-standard auto insurance market: Clearcover, a next-generation auto insurer, has launched the Clearcover Inter-Insurance Exchange (CIX), a reciprocal insurance exchange aimed at expanding its presence in the non-standard auto insurance market.
Initially debuting in Illinois, CIX is expected to scale to additional markets in the near future.
The launch of CIX is part of Clearcover’s broader strategy to enhance profitability, growth, and accessibility in auto insurance. Alongside its recent expansion into Texas through Clearcover General Agency (CGA), the company is focused on delivering flexible, technology-driven solutions for a wider range of drivers.
Vouch Expands Insurance Capabilities With StartSure Acquisition: Vouch, the leading business insurance provider for high-growth companies, today announced that it has signed a definitive agreement to acquire the team and book of business of StartSure Insurance Services, Inc., an insurance provider that simplifies how small businesses get insurance.
Vouch is also announcing the first close of its Series D funding round, led by Allegis Capital with all other major investors participating, reinforcing its position as the go-to insurance platform for high-growth companies.
As part of the acquisition, the StartSure team, including CEO Tim DiPietro, will join Vouch. StartSure clients will gain access to a broader suite of insurance products through Vouch’s brokerage team, while Vouch clients will benefit from StartSure’s proprietary MGA programs for coworking and inventory insurance.
AI Regulation Divide Poses Growing Risks for Insurers, say Leaders: As AI innovation accelerates, the lack of coordinated global safeguards is increasing uncertainty for businesses and the insurance sector.
With AI adoption expanding across industries, the absence of clear regulatory frameworks presents significant liability, compliance, and cybersecurity challenges. The insurance industry, which plays a critical role in risk mitigation, faces mounting pressure to assess AI-related exposures, including algorithmic bias, data security breaches, and operational failures.
The UK and US collective decision not to sign a global AI declaration, underscores a growing division over international regulation and raises concerns about the emerging risks of unregulated AI, say insurance business leaders. Insurtech Insights gets the lowdown from Mark Kirby, Professional Services Director at Intersys Ltd. and Risto Rossar, Founder and CEO of Insly.
Regulatory Technology (Regtech)
The New York Stock Exchange to Launch NYSE Texas: The New York Stock Exchange has announced the launch of NYSE Texas, a fully electronic equities exchange set to be headquartered in Dallas.
This move will see NYSE Chicago reincorporate and rebrand as NYSE Texas, pending the effectiveness of regulatory filings. Once operational, the exchange will offer companies the opportunity to list their securities in Texas, an attractive proposition given the state’s status as a major financial hub.
The future of KYC: how banks can navigate compliance and risk in 2025: In 2025, Know Your Customer (KYC) solutions will become essential for financial institutions looking to enhance their anti-money laundering (AML) frameworks. With increasing regulatory scrutiny, sophisticated financial crimes, and growing customer expectations for seamless onboarding, the sector is witnessing a shift towards decentralised identity (DCI) and perpetual KYC (pKYC).
These innovations are redefining compliance and risk management strategies in the banking industry.
RelyComply, an AI-driven KYC/AML platform, recently explored the compliance and risk management trends in 2025.
What is RegTech: A Comprehensive Guide in 2025: How do you ensure seamless adherence to increasingly complex regulatory environment frameworks while maintaining operational agility? When regulatory landscapes continually shift, RegTech offers transformative compliance solutions to grapple with challenges of compliance across diverse industries.
Blockchain and Cryptocurrency
Bitpanda gets green light from FCA, eyes UK expansion: Bitpanda, the European cryptocurrency investment platform, has secured approval from the UK’s Financial Conduct Authority (FCA), marking a strategic step in its push for regulated growth across Europe.
The FCA’s authorisation allows Bitpanda to provide a full suite of crypto services to UK investors, including trading, staking, and savings plans.
Klarna Bank CEO Says Bank Is Exploring Crypto: Klarna Bank, a Swedish fintech company known for its Buy Now, Pay Later service plans to embrace cryptocurrency after previously criticizing it.
Klarna’s CEO Sebastian Siemiatkowski made the announcement about that the firm plans to embrace cryptocurrency. The announcement came as the fintech prepares for an initial public offering and business expansion in the US.
Klarna Bank CEO Sebastian Siemiatkowski has been vocal about his skepticism of crypto in the past, arguing that high transaction fees make it unsuitable for commerce. He has even dismissed digital currencies as a “decentralized ponzi.”
Siemiatkowski recently made a tweet saying “Ok. I give up. Klarna and me will embrace crypto.”
Artificial intelligence
Perplexity launches its own freemium ‘deep research’ product: Following ChatGPT and Google Gemini deep research advancements, Perplexity AI has unveiled its latest feature, “Deep Research,” designed to give users the tools they need to do extensive research in just minutes, providing comprehensive answers to their complex queries.
Deep Research is particularly adept at handling expert-level queries across various domains, including finance, marketing, and product research. It has demonstrated strong performance on industry benchmarks, such as scoring 21.1% on “Humanity’s Last Exam,” outperforming several other models.
Mastercard rolls out AI-based AML solution ‘TRACE’ in Asia Pacific: Mastercard has launched the TRACE (Trace Financial Crime) solution in the Asia Pacific, designed to combat money laundering and financial crime using artificial intelligence.
TRACE leverages payments data from various financial institutions, offering a view beyond individual banks to trace crimes across payment networks.
The company stated that the growth of Real-Time Payments (RTP) in Asia Pacific has been exploited by money launderers, while traditional detection methods such as often semi-manual or in-house AI solutions, lack the “network-level” insight needed.
Amazon’s AI-enhanced Alexa reportedly delayed again: Amazon Alexa’s new AI upgrade is set to be delayed by a month, The Washington Post reports. The delay is allegedly due to a “new version of the assistant giving incorrect answers to test questions at a recent meeting,” according to an anonymous employee.
The updated Alexa, which Amazon has promised will provide a “smarter and more conversational” experience, now isn’t expected to land until March 31 or later. However, the tech giant still plans to publicly unveil the revamped Alexa virtual assistant at an event in New York on Feb. 26.
This isn’t the first time that the project has been pushed back either, according to The Post. Amazon staff were allegedly told the upgraded version of Alexa would launch in time for the November 2024 presidential election, but Amazon was “hesitant to risk customer trust by launching a product that is not reliable.”
Alibaba to partner with Apple on AI features, sending shares to 3-year high: Alibaba will partner with Apple to support iPhones’ AI services offering in China, its chairman said on Thursday, a move likely to help the U.S. company ease falling smartphone sales in its key market.
For Alibaba, the partnership is a major win in China’s competitive AI market that is home to DeepSeek, which made headlines this year with models developed at a fraction of the cost of Western rivals.
The landmark deal also resolves months of speculation over Apple’s AI strategy in the region as the iPhone maker had been in talks with Chinese tech leaders including Baidu, ByteDance and Tencent.
Key Risks of AI Tool DeepSeek Analyzed By AdviserSoftware and InterGen Data: AdviserSoftware.com, part of FTRC, has collaborated with Robert Kirk, founder and CEO of InterGen Data, an AI-based financial lifetime events prediction service, to identify risks and recommendations for navigating DeepSeek.
AI creates enormous opportunities for financial advisers, and interest in DeepSeek has been immense. To understand the potential risks better, AdviserSoftware and InterGen Data have analysed DeepSeek’s terms and conditions. They have identified the following risks and provide recommendations to advisers on how to navigate DeepSeek:
Upcoming Events
- Finnovate Europe
FinovateEurope, one of Europe’s leading FinTech conferences, is set to bring together industry experts, innovators, and decision-makers for two action-packed days in London.
Date: February 25th – 26th
Location: London, United Kingdom
More Details Here - Staying Audit Ready: Simplifying Compliance Through Centralized Data Management
In today’s regulatory environment, maintaining audit readiness and compliance is a complex challenge for organizations dealing with fragmented legacy recording systems and evolving regulatory standards. In this webinar, we explore how centralized data management can transform compliance operations, enabling faster audit responses, robust data integrity, and reduced costs. Learn how adopting a unified approach to interaction data can minimize risks, streamline workflows, and prepare your organization for any compliance audit.
Date: March 4th
Location: Online (Zoom)
More Details Here
🎙️ Tech Behind Fintech Podcast Highlights
Coming Up This Week
Join us on Friday, February 21st, 2025, at 12 PM EST, for a must-watch episode of Tech Behind FinTech featuring Hans Tesselaar, Executive Director at BIAN. The financial services industry is at a breaking point—banks are spending billions annually just to maintain outdated systems and navigate complex integration challenges. But can standardization finally solve this crisis?
💰 The Hidden Costs of Banking Inefficiencies Banks spend over $500 billion annually on IT, with a staggering 60% of those costs going toward integration rather than innovation. Legacy systems and proprietary tech stacks are not just costly—they’re preventing banks from keeping up with FinTech disruptors. Standardization is no longer an option; it’s a necessity for survival. In this episode, we’ll explore how open banking standards, API-driven architectures, and interoperability frameworks are reshaping the future of financial institutions. Hans will share expert insights on how banks can reduce integration costs, accelerate innovation, and break free from legacy constraints that are stifling growth.
🔍 What You’ll Learn:
✅ The True Cost of Legacy Banking – Why financial institutions are losing billions on outdated infrastructure and integration issues.
✅ How Standardization Can Save Banks – The role of BIAN in developing global banking interoperability and reducing IT inefficiencies.
✅ The Future of Coreless Banking – How banks can modernize with open standards, APIs, and modular banking solutions.
Whether you’re a banking executive, FinTech leader, or industry innovator, this episode will provide actionable strategies to reduce costs, accelerate innovation, and future-proof financial services.
🚀 Don’t miss this critical discussion on the future of banking!
Live Show Links
Website: https://techbehindfintech.com/featured/the-billion-dollar-banking-problem-can-standardization-ensure-survival
LinkedIn: https://www.linkedin.com/events/7296342220465491968
YouTube: https://www.youtube.com/watch?v=FFnIJ0H_2AA
Facebook:https://www.facebook.com/events/1393121358377569
📌 In case you missed it – Latest Episode Highlights
The Deepfake Invasion – Can Biometrics Save FinTech from Fraud?
In the latest episode of Tech Behind FinTech, host Nnamdi Osuagwu speaks with Fabian Eberle, co-founder of Keyless, about the growing threat of deepfake fraud and the role of biometric authentication in safeguarding fintech platforms. As deepfake technology becomes more sophisticated, financial institutions must adapt to prevent identity fraud and cyber threats.
🔑 Key Lessons from the Episode:
⭐ Deepfake Fraud is on the Rise – Fraudsters are using AI-generated deepfakes to bypass traditional authentication methods, posing a major risk to financial institutions.
⭐ Biometrics Offer a Strong Defense – Advanced biometric solutions, such as facial and voice recognition, provide an extra layer of security, making it harder for fraudsters to succeed.
⭐ Passwords Are No Longer Enough – Traditional authentication methods, including passwords and SMS-based verification, are becoming increasingly vulnerable to AI-powered attacks.
⭐ Privacy-Preserving Biometrics is the Future – Solutions like Keyless leverage decentralized biometric authentication, ensuring security without storing sensitive personal data.
⭐ Fintech Must Stay Ahead of AI-Powered Threats – As fraud techniques evolve, fintech firms must continuously invest in cybersecurity innovations to protect users and maintain trust.
📩 Stay informed on the latest fintech security trends! Watch the full episode for expert insights on the future of fraud prevention.
🔗 Watch now: https://techbehindfintech.com/featured/the-deepfake-invasion-can-biometrics-save-fintech-from-fraud
Or stream it on your favorite podcast platform! 🚀
📩 Stay Connected
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