AI and Crypto: The Fintech Landscape is Shifting
Hi there! After attending Fintech Devcon last week and keeping an eye on industry news, as we always do, one thing has become overwhelmingly clear: AI and stablecoins have a bright future.
We’ve seen some massive valuations, crypto expansion, and even the growth of AI-first financial services.
If you’re building in this space, failing to keep an eye on market trends and competitors means you’re accumulating significant technical debt. Since regulatory compliance and security often hinge on staying up to date, it could even put your company at risk.
We’ve compiled everything we know about cybersecurity and fraud prevention into a single article, leveraging our industry experience as fintech specialists to provide unique insight into the topic. Make sure to check it out here.
Ramp, a fintech company specializing in expense management, has just raised $500 million, increasing its valuation to $22.5 billion. This is an incredible milestone for any startup.
A significant portion of their success can likely be attributed to the company’s autonomous finance vision.
The company has integrated AI features directly into its platform, including automated fraud detection.
AI is definitely opening up a variety of new avenues in the fintech industry. But whether you are integrating an existing machine learning model or creating your own, failing to implement certain best practices can result in more harm than good.
You need someone experienced on your team, even if it is just on a temporary basis, to ensure your new features not only work well but also allow you to maintain regulatory compliance.
We have connected many companies with not only AI and ML specialists, but also those familiar with the intricacies of fintech specifically.
On August 1, Hong Kong officially launched a new regulatory framework for stablecoin issuers.
The goal of these new regulations includes better reserve asset management, AML, and even redemption policies.
While an increase in governance is both an asset and an obstacle to many companies, it seems to be working out well, as fresh capital is being directed to blockchain, crypto, stablecoins, and other related industries.
It’s probably a good indication of what we can expect in the rest of the industry. As regulations evolve and infrastructure expands, we’ll see increased adoption of these technologies for mainstream transactions.
You need to ensure you are prepared to take advantage of these alternative finance models.
Hiring an expert through staff augmentation is the ideal way to gain direct advice tailored to your company and products. We can connect you with the right people in a matter of days, without the commitment that often comes with a long-term hire.
Other Stories Worth Noting
Some other things have happened in the industry recently:
Policybazaar, an Indian insurance broker, has just been hit with significant fines for regulatory violations. This demonstrates that compliance is being taken seriously, and the company is likely to face a considerable decline in brand trust, along with the potential loss of fines.
Another AI-powered fintech, Alaan, has raised a large amount of money in its Series A funding round. At $48 million, the spend management platform has had one of the best rounds in the MENA region. If you can solve a problem and find the right developers to bring the idea to life, the size of your company does not limit your success.
Final Thoughts
What a whirlwind the last few weeks have been! If you need help staying on top of everything you need to know about keeping your software secure, make sure to check out our article on cybersecurity and fraud prevention.
If you’ve found this newsletter insightful, make sure to share it with someone who can also benefit from it. Is there anything you think we’ve missed or would like to add? Hit reply to let us know!
Until next time - stay innovative!
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