Exits & Deep Reads

Opportunities for Generative AI in Financial Services (TWIF 4/7)

Hello Fintech Friends,

Just in time for New York Fintech Week, we're excited to share our latest whitepaper co-authored with Visa: Opportunities for Generative AI in Financial Services:

After over a decade of methodical growth and continual refinement, generative artificial intelligence’s moment in the tech industry spotlight has come.

The emergence of competent large language models, which accurately mirror regular communication, have ignited a multi-industry arms race to incorporate AI across the board into product offerings.

In this paper, we’ll discuss the exciting emerging applications of generative artificial intelligence (Gen AI), as exemplified by cutting-edge banks and fintechs. We’ll evaluate how fintechs and banks are incorporating Gen AI differently, based on each of their relative strengths. We’ll explore areas for Gen AI that are still underexplored and present future opportunities. And we’ll evaluate the response from regulators, and potential implications for banks and fintechs.

📝 Read the whitepaper here.

Also resharing some of our content from the week in case you missed it :) Hope to see you at NYFW 2024!

Please find another week of fintech exits and deep reads below. (👍👎 Have feedback for us? Let us know!)

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📖 Reads of the Week

☯️ Exits

💻 IPOs & SPACs

British fintech consultancy Alpha Group is planning an IPO on the London Stock Exchange.

🤝 M&A - Fintech

Publicly-listed Canadian payment processing giant Nuvei announced that it will go private via a $6.3 billion acquisition by private equity firm Advent International.
Japanese financial services conglomerate Rakuten announced plans to consolidate its various fintech divisions – Rakuten Group, Rakuten Bank, Rakuten Card Company, Rakuten Securities and Rakuten Insurance Holdings – into one unit.
Bulgarian embedded finance provider Paynetics expanded into ESG via its acquisition of UK 'impact neobank' Novus.
Abrigo, a provider of compliance, credit risk, and lending solutions for financial institutions, acquired TPG Software, a builder of investment accounting and management solutions.
Nayax, a commerce enablement, payments, and loyalty platform, acquired Roseman, a global fuel and electric vehicle management solution provider.
Aico, a Finnish end-to-end financial close software platform for large enterprises, received a majority equity investment from Accel-KKR.

🏦 M&A - Bank and FinServ

Sequoia announced it acquired AltruVista, a registered investment advisor that provides independent and holistic financial planning and asset management services.
CVC Capital Partners sold off its 5% stake in Vietnam's fourth biggest non-state owned commercial lender, Asia Commercial Bank.
Italian asset manager Azimut will sell all of its stake in private credit fund Kennedy Lewis to Goldman Sachs' private equity unit Petershill Partners for $225 million.

One fee down, another fee uphttps://t.co/nwKROZJ3Tf
— Michael Jenkins (@MJenkins88) April 6, 2024

E*trade ‘fires back’ against Robinhood…

$125 when you deposit $5k, scaling up to $6k back on massive deposits.

Ends April 30 🤔 https://t.co/OhBtzXHcJL pic.twitter.com/1IZgfhp1u6
— Ryan Zauk (@RyanZauk) April 3, 2024

This will be a major issue. I've already seen a wire fraud situation using a cloned voice...it was very convincing. pic.twitter.com/CsUW6qLYHT
— Bradford Hardin (@bradford_hardin) April 4, 2024

The Federal Reserve Bank of New York will participate in an international technical research project that will explore whether the tokenization of central bank money and commercial bank deposits operating on a shared programmable ledger can improve wholesale cross-border… pic.twitter.com/q2fZjIgKdf
— Jevgenijs Kazanins (@jevgenijs) April 4, 2024

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