FinTech Collective

Soaring rents have been squeezing renters nationwide, rising over 25% since the pandemic began—especially in fast-growing cities like Miami and Phoenix. As Americans struggle to afford housing, the US Department of Justice is stepping in, accusing RealPage, a property management software, of enabling price-fixing among landlords through its AI-driven pricing tools. The DOJ claims that RealPage's algorithm, by gathering confidential data from landlords, allows for coordinated rent hikes, undermining competition and harming millions of renters. The machine learning system evaluates competitors' data and suggests prices based on that input, which the DOJ claims restricts independent price competition—effectively turning private data sharing into a tool for illegal coordination. In an age where AI and real-time data are shaping nearly every industry, pricing decisions have become more dynamic than ever. This trend extends beyond rent; even something as seemingly trivial as the cost of a cocktail, or as we wrote about previously, the cost of a cheeseburger (Fast Food to Fintech). As we prepare for the US Open final this Sunday, we wonder how many Honey Deuce cocktails will be sold. The price of this iconic drink has outpaced inflation in recent years, prompting many to ask: who truly sets the cost and what could happen if AI begins to dictate pricing based on real-time consumer data? Featured Companies: Vestwell, Ziina زينة, Fondeadora, Centrifuge, minu, Flutterwave https://bit.ly/4e7rTjm #fintech #fintechnews

During a week where it feels like the world economy rests on Nvidia’s earnings (Nvidia’s earnings have been reported to have the same impact on markets as US jobs figures), the Magnificent 7 stocks continue to be top of mind. But it would appear that the opportunity set extends far beyond the U.S. - the emerging markets are back.   In the 2000s, the economic growth of emerging markets was first coined the “rise of the rest.” But by the early 2010s, it was clear that the world was back in an era of U.S. centric growth. That landscape is subtly changing again today.    Thematically, many emerging market economies are well poised to serve the wave of AI application driven needs - Taiwan in semiconductors, Malaysia in data centers and Mexico for nearshoring capabilities given its proximity to the U.S. If met, this wave of demand is likely to create new pools of profit in emerging economies. In short - just like a celebrity emerging from filtering drinking water through their underwear with Bear Grylls on the side of a wet mountain - from the depths they emerge! Featured Companies: Flutterwave, Simetrik, MoneyLion, Performativ - Wealth Management Software https://bit.ly/4g6SmiD #fintech #fintechnews

For those in Riyadh next week, we are excited to have Faisal Kawar participating on several different panels - see below for more details and please reach out!

Apple's recent decision to open its tap-to-pay technology to third-party developers is set to reshape what's possible with an iPhone! In the beta version of iOS 18.1, developers in key markets like the US and UK will gain access to the iPhone's NFC chip and Secure Element via APIs, a feature previously restricted to Apple Wallet and Apple Pay. This move, prompted by regulatory pressure from US and EU authorities, could spur a wave of innovation, with Circle’s CEO Jeremy Allaire tweeting, “Wallet devs, start your engines” on the back of the announcement from Apple. In opening up the APIs, developers will likely be able to innovate in more ways than just payments. One particularly exciting frontier beyond payments lies in Decentralized Identity (DID) systems, where Apple’s Secure Element could play a pivotal role. Imagine a world where your iPhone securely manages your identity, allowing you to verify your age or the validity of your driver’s license with a simple tap without revealing unnecessary personal details like your address, actual date of birth, or social security number. Magic indeed… Unless you are a 17-year-old aspiring clubber trying to get into the KitKat club in Berlin! Featured Companies: minka_, Flutterwave, Vestwell, Grâce https://bit.ly/3MmXlya #fintech #fintechnews

As the thrill of meme stocking trading fades, a new temptation may be luring thrill-seekers away from Wall Street – sports betting. A newly published working paper titled Gambling Away Stability finds that every dollar spent on sports betting is associated with a $2 decrease in net deposits to traditional brokerage accounts.    This data comes to light after a fantastic summer of sport, featuring events like the Paris Olympics, Euro, Copa America, and Wimbledon. NBCU reported this week that the Paris Olympics averaged 30.6m viewers across their platforms, an 82% jump from the Tokyo Olympics. Now, as the Premier League kicks off and the NFL season approaches, sports fans are gearing up for another round of high-stakes action – both on the field and in their betting apps. But the excitement may come with a hidden cost: a shift away from sound financial planning toward the dopamine-driven highs of sports wagering.   While platforms like Robinhood are attempting to nudge users toward more responsible investments and retirement accounts, the lure of quick gains from sports betting continues to grow. In the end, whether on the pitch or the stock market, it seems some fans just can't resist a good gamble. But as with all games of chance, when the final whistle blows, will they find they've bet on the wrong horse? Featured Companies: Octane®, Antler, IMMO, Contabilizei, Coincover https://bit.ly/4dPGAqQ #fintech #fintechnews

The Coca-Cola controversy bubbled to the surface recently thanks to a colossal $16b tax dispute with the IRS, a sum capable of wiping out a year and a half of profits. The red flags originated from Coca-Cola’s practice of funneling profits through low-tax countries like Ireland - a maneuver that is allegedly shifting profits to reduce U.S. tax liability – making Uncle Sam's share look like the diet version. The case is a litmus test for the IRS, showcasing its commitment to tackling corporate tax evasion. This ruling could send shockwaves throughout the corporate world, as other multinational companies closely monitor the outcome. The IRS's approach may serve as a template for auditing other firms with profitable overseas subsidiaries. A decision against Coca-Cola might encourage stricter enforcement on similar tax arrangements, prompting companies to rethink their tax strategies and brace for increased scrutiny on their global operations. With stakes this high, Coca-Cola's next moves are pivotal. Will it dance out of the IRS's grasp, or face a hefty payout that could reshape its financial landscape? As this saga unfolds, the beverage behemoth's battle is set to be a defining moment in the corporate tax arena. Featured Companies: Octane®, Mondu, Ziina زينة, MoneyLion, Embroker https://bit.ly/3M2URVi #fintech #fintechnews

The winds of change are sweeping through the mid-tier accounting firms in the US, ushering in a new era of global financial operations. Once overshadowed by the Big Four - KPMG, Deloitte, PwC, and EY - these firms are now rethinking their global networks to better serve their increasingly multinational clients.   For decades, the US accounting industry below the Big Four has been highly fragmented. However, recent years have seen rapid consolidation, with many of the largest players now pushing to extend their brands internationally.    This reevaluation by mid-tier firms follows mixed success in the Big Four's attempts to revamp their networks.    As mid-tier firms strive to expand, the question arises: Who will capture the boring accountants running globally? We wonder if new tech infrastructure will emerge to help them or if they will manually find ways to close their books. Featured Companies: Flutterwave, Octane®, MoneyLion https://bit.ly/3Swfw7J #fintech #fintechnews

With the Paris Olympics taking off, competition is in the air. As excitement builds in France and globally, the financial system is seeing its own brand of breakthroughs and new records. This week the first US ETFs that invest directly in Ether are showing high trading volumes for fund debuts, according to Bloomberg. On Day 1 alone, Ether ETF volumes surpassed $1b, relative to Bitcoin’s first trading day volume of ~$4.5b.    With both Bitcoin and Ether ETFs being approved and traded this year, these asset classes are gaining more institutional recognition, and may soon become required learning in financial literacy, just like credit or debit cards. That said, financial literacy remains a problem at large in the US. Many people are unable to understand the effects of inflation on their income, and a third of young people don’t know the difference between a credit and debit card, as reported by the FT.    Additionally, some of the financial literacy content on social media doesn’t help - for example, some “get rich quick” schemes that operate in legal gray areas or are actual scams. To combat general lack of awareness in financial literacy, half of the country’s states have now introduced or implemented legislation requiring financial literacy classes in schools. As the financial system continues to increase in complexity, with concepts like cryptocurrency ETFs coming into public view and discussion, these classes could be coming just in time. For now, let the games begin! Featured Companies: bunch, Simetrik, Stables https://bit.ly/4cY478Z #fintech #fintechnews

We are thrilled to announce FinTech Collective’s lead role in the $15.5m Series A investment in bunch, a Berlin-based company building the end-to-end fund admin infrastructure for private markets investors. Existing investors Cherry Ventures and Motive Ventures also participated, in addition to industry experts and angels from Moonfare, AngelList, and Klarna. Congratulations to Levent Altunel and Enrico Ohnemüller and the entire bunch team! Read more about their story and why we think this is such a big opportunity here 👇 https://lnkd.in/dK_f6-ZZ

As investing in alternative asset classes becomes more accessible, alternative asset managers are moving beyond traditional asset classes like private equity, hedge funds, and real estate into even more ‘alternative’ categories.   Ken Griffin, CEO of Citadel, made headlines this week with his purchase of Apex for $44.6m. This purchase comes a few years after Griffin outbid a group of cryptocurrency enthusiasts to buy a copy of the U.S. Constitution for $43.2m.    Other high net worth executives and alternative asset managers are also diving into unique investments, such as purchasing professional sports teams.   Now, rumors are swirling that the recent NBA Champion Boston Celtics might be up for sale. Will we see another alternative asset manager add a high profile sports team to their portfolio? Or will someone else decide it's time to join Griffin and finally diversify into the rare and lucrative market of dinosaur bones? Because, let’s face it, nothing says "alternative investment" like a Stegosaurus in your living room. Featured Companies: Embroker, MoneyLion, Octane®, Termii Group https://bit.ly/4fdvBck #fintech #fintechnews