fintech digest
Ukraine Fintech, Consequences of ESG Ignorance, UK Mortgage Arrears & More
Research Team
22 September 2023
The cornerstones of fintech advancements in Ukraine
At the beginning of the full-scale invasion, many people in Ukraine feared the collapse of the country's financial system. However, this did not happen, largely attributed to the effective fintech solutions forged in recent years. What exactly enabled the fintech breakthrough in Ukraine in the late 2010s and early 2020s? Five pivotal catalysts can be discerned, and this roster could potentially expand with the addition of another factor, Open Banking, contingent upon the adoption of requisite legislative modifications. Now more details about each of them.
Goldman analysts have bad news for fund managers ignoring ESG
Asset managers trying to sell funds in Europe are finding it “increasingly difficult” to do so unless their products are registered as ESG, according to a study by analysts at Goldman Sachs Group Inc.
Fintech faces its reckoning: It’s only a matter of time until the house of cards collapses
The 2008 Global Financial Crisis was easily the most destructive economic crisis since the Great Depression. And yet, it’s not without a touch of irony that without it, we wouldn’t have a thriving startup ecosystem.
In an attempt to reboot the global economy, central banks slashed interest rates to almost zero, resulting in an era of cheap money.
This resulted in two things. First, it incentivized investors to fund promising (and, in many cases, not so promising) young tech companies. But it also allowed for the emergence of business models that, in any other circumstance, would be completely unviable.
SocGen and Brookfield to launch private debt fund
French lender Societe Generale and asset manager Brookfield Corp plan to launch a private debt fund targeting total volume of 10 billion euros ($10.73 billion) over the next four years.
Initial seed funding, which will be directed towards the power, transportation and finance sectors among others, amounts to 2.5 billion euros, the companies said.
The fund "will have a positive impact on the real economy", SocGen Chief Executive Slawomir Krupa said in a press release.
UK mortgage arrears hit 7-year high rates squeeze borrowers
British households are further falling behind on loan payments after a surge in interest rates, with arrears jumping by more than a quarter in the year through June as higher interest rates began to bite harder.