fintech digest
AI in VC, Privacy Regulation in Fintech, P2P in Saudi Arabia & More
Research Team
25 August 2023
Privacy regulation, fintech lending, and financial inclusion
Increasing numbers of countries are introducing privacy legislation to protect users’ data. But while consumers value their privacy and protection from potential misuse of data, fintech firms often rely on personal data to innovate and provide new products and services. This column presents evidence that the California Consumer Privacy Act in the US mitigated this trade-off. By enhancing users’ control over data and reducing concerns over sharing them, the landmark Act has boosted fintech lending and benefitted consumers through improved financial services. In particular, it has lowered loan rates for traditionally underserved groups.
Tokenization: A digital-asset déjà vu
Tokenization adoption was poised for success six years ago, but progress was limited. Renewed interest might feel like déjà vu, but stronger business fundamentals and structural changes suggest the path could be different this time.
3 Peer-to-Peer lending platforms empowering SMEs in Saudi Arabia
Saudi Arabia’s peer-to-peer lending market is flourishing due to expanding technological innovation, enhanced transparency above traditional banking systems, low operational costs, and the growing modernisation of digital technology. According to Statista, as of Q4 2021, the lending rate of Saudi National Bank was 1.33 percent in Saudi Arabia. In comparison, the Saudi Arabia British Bank (SABB) had a lending rate of 0.9 percent for that same period.
How firms can prepare for the rise of AI In venture capital
Venture capital (VC), long regarded as the pulsing heart of innovation and entrepreneurial risk-taking, is on the brink of transformative change. When VC industry giants like Mike Moritz from Sequoia step back, it underscores an impending shift in the rhythm of venture capitalism.
Challenges such as inexperienced general partners (GPs) and hurdles in fund-raising have nudged the sector into a period of introspection and self-reinvention. Likewise, technology innovation is impacting VC as much as the companies that VC supports.
Coinbase takes stake in stablecoin firm Circle
Cryptocurrency exchange Coinbase is taking a stake in Circle, the issuer of the USDC stablecoin, signifying a closer relationship between the two crypto heavyweights.
The two companies also said they will close down the Centre Consortium, a private governance organization for USDC, as they now see “regulatory clarity” on stablecoins.
“Reflecting Coinbase’s belief in the fundamental importance of stablecoins to the broader crypto economy, Coinbase is taking an equity stake in Circle,” Coinbase said in a blogpost Monday.