Weekly Newsletter - 12.11.2024

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EVENT OF THE WEEK 📅

EDITOR’S PICK 🎯

How Your Confidence Crisis is Costing You Sales – And How to Stop It

Practical Tips by Kate Philpot from Getty Images

Ever felt like a fraud in a client meeting, worrying that you'll be exposed? You're not alone. Imposter syndrome can impact anyone, especially in sales, where confidence is key.

Kate Philpot, VP of Global Sales Enablement at Getty Images, and Camille Kempell, Business Development Director at Hive Perform, recently had an eye-opening conversation about overcoming self-doubt and building lasting confidence. They shared actionable strategies that go beyond managing imposter syndrome and help you build your career and maintain consistent performance.

Kate and Camille discuss:

• How imposter syndrome impacts your sales confidence and performance.

• Practical tips to speak up and combat self-doubt.

• The power of preparation to build lasting confidence.

• Why tracking your wins is essential to shifting your mindset.

• How mentorship and sponsorship can fuel your growth in sales.

Want to hear more? Get all their insights now and watch the recording now.

INDUSTRY INSIGHTS 🌐

Revolut Early Investors Reap Massive Returns as Valuation Soars to $45 Billion

Revolut meteoric rise to a $45 billion valuation is a testament to the power of early-stage investment in fintech. Early crowdfunders, who took a chance on the British start-up, are now poised to reap returns up to 400 times their initial investment. This remarkable growth underscores the potential of retail investors to drive significant economic value, particularly in the UK, where Revolut has become a major player with over 50 million users globally.

The secondary share sale, brokered by Morgan Stanley, offers a rare liquidity opportunity for these early investors, as Revolut remains privately held. Platforms like Crowdcube and Republic Europe have facilitated this process, highlighting the growing importance of secondary markets in providing liquidity and value realization for private investors. Crowdcube co-CEO, Matt Cooper, emphasizes the substantial impact retail investors have had on the UK economy, with the top 25 firms funded through Crowdcube now valued at twice the leading stocks on the AIM market.

Revolut success story is mirrored by other British fintechs like Monzo and Moneybox, which are also leveraging secondary sales to enhance valuations and liquidity. This trend indicates a shift in the financial landscape, where private markets are increasingly outpacing public ones. As Revolut considers a potential stock market listing, possibly in New York, the trajectory continues to inspire confidence in the transformative power of fintech and retail investment.

When Artificial Intelligence Means Business

AI is transforming finance, with 92% of firms reporting positive returns. KPMG's report reveals 71% of companies are implementing AI, particularly excelling in financial planning and accounting, where 78% and 76% are utilizing AI, respectively. However, tax functions lag at 45% due to complexities in regulations. AI leaders, comprising 41% of firms, drive higher returns through strategic investments and resources, allocating 13% of IT budgets to AI.

AI's significance is growing, shifting focus from cloud technology to non-generative AI, now prioritized by 61% of finance leaders. Companies are exceeding return on investment (ROI) expectations, attributing success to enhanced productivity and decision-making. Nonetheless, challenges such as data privacy and cybersecurity persist, with 57% identifying these as barriers. Organizations are developing responsible AI use principles and strengthening governance to address risks.

Despite hurdles, the potential for AI in finance is clear. KPMG emphasizes the collaboration between CFOs and CIOs to align AI with business objectives, ensuring continued innovation. As firms embed AI into financial reporting, they are reaping the benefits of digital transformation. This momentum underscores AI's vital role in reshaping finance, urging leaders to overcome adoption barriers and harness its full potential.

How Impactful Has Open Banking Been to WealthTech?

Open banking, introduced by the EU in 2015, has significantly influenced the WealthTech sector by enabling greater competition and innovation. This regulatory framework allows customers to share their banking data with third-party providers, fostering a more personalized and efficient financial service landscape. Countries like Australia, Brazil, and Japan have adopted similar models, with the US and Canada on the verge of joining. Despite its potential, open banking’s impact on WealthTech has been mixed, with some industry leaders praising its ability to enhance data sharing and service personalization, while others criticize its limited scope, particularly in wealth management.

The benefits of open banking in WealthTech are evident in its facilitation of personalized services and improved collaboration across financial institutions. By providing secure API frameworks, it allows WealthTech companies to integrate real-time data, enhancing their service offerings. However, challenges remain, such as security concerns and regulatory inconsistencies, which hinder its full potential. In the US, the lack of comprehensive regulatory support for wealth management limits open banking effectiveness, necessitating alternative data access methods.

INDUSTRY NEWS 📰

DPL Financial Secures $23M to Transform Commission-Free Annuities Market

DPL Financial Partners secured a $23 million investment to enhance its commission-free annuities platform. This funding, involving Eos Ventures and TIAA Ventures, aims to expand DPL technological offerings and product range, reinforcing its commitment to accessible financial products. Galen Shaffer joins the board, strengthening governance and innovation.

Ant International Drives Fintech Growth with AI and Global Expansion

Ant International has expanded its fintech services across Asia, restructuring into four units and leveraging AI for growth. The company reported tripled payment volumes and doubled SME lending in 2024. Its new embedded finance division serves 11 million customers, focusing on cross-border payments and financial inclusion through innovative technology.

How Dock and Parabank Aim to Enhance Disability Inclusion in Financial Services

Dock and Parabank collaborate to advance disability inclusion in Brazil's financial sector. Through customized products and financial education, they aim to improve access to credit and financial services for disabled individuals. Their innovative approach leverages technology to create a more inclusive economic environment, inspiring global efforts.