Rise

Nubank and Revolut are two of the world’s leading digital banks, transforming the financial services / banking industry, with two very different strategies: Nubank has focused on strengthening its presence in select markets. Revolut is expanding more broadly. Is one strategy better than the other? 1. Footprint: Nubank tailored its services to Brazil primarily, and is now in 3 LATAM markets, going deep and creating a dominant position, while Revolut offers services in 40+ countries. 2. Regulations: Nubank’s localized approach provides more focused regulatory engagements, while Revolut’s broader footprint requires more complex regulatory engagement in more markets. 3. Customers: Nubank has gained ~100 million customers (founded in 2013). Revolute has ~50 million (founded in 2015). 4. Revenue and Profitability: Nubank generates more revenue per customer ($80 vs $45). Revolut achieves higher profit per customer ($12 vs $10). Where will these two companies and the industry be 10 years from now? Source: CFTE - Centre for Finance, Technology and Entrepreneurship

Four alternative models are poised to revolutionize cross-border payments: The traditional correspondent banking model has long dominated cross-border payments, but it’s slow, costly, and opaque. Emerging technologies and alternative models are driving change. Here are some key factors behind this shift: 1. Connected real-time systems – initiatives like BIS Project Nexus and ASEAN’s XBPI are interlinking domestic payment rails for faster, seamless cross-border transactions. 2. Blockchain and digital asset frameworks – these technologies eliminate intermediaries, delivering real-time, transparent, and lower-cost payments. 3. FinTech disruption – agile startups are transforming payments by reducing fees, streamlining processes, and enhancing transparency. 4. Global payment ecosystems – initiatives like the G20’s roadmap are advancing efficiency, accessibility, and affordability in payments worldwide. How will global trade and financial inclusion continue to be impacted?

Lithuania currently ranks second in Europe for fintech licensing, with 79 EMI licenses and 30 PI licenses issued. Why? The Bank of Lithuania has introduced forward-thinking initiatives tailored to startups and established players: 1. Newcomer Program – a one-stop shop for licensing support, simplifying market entry. 2. Regulatory Sandbox – a supervised environment to test and refine innovations. 3. CentroLink Information Services – technical access to SEPA, enabling seamless cross-border payments for EEA fintechs. 4. RegTech – tools to streamline compliance and reduce administrative burdens. 5. DAMAMA Program – transforming how regulators collect and analyze data for efficiency. With a pro-business regulatory environment and support to help fintechs scale, companies like Revolut, Solaris SE, and Payhawk are regulated in Lithuania. What can regulators in other emerging markets learn from Lithuania? Source: Invest Lithuania

Fintech in Latin America is changing how people interact with financial services. The growth speaks for itself: 1. Brazil leads the charge with 722 fintechs, led by nu, which has redefined consumer banking. 2. Mexico follows with 618 companies, with Bitso leading the way in cryptocurrency and cross-border payments. 3. Colombia, Argentina, and Chile round out the top five markets, contributing 1,025 fintechs, respectively, with companies like Addi, Ualá, and Xepelin driving innovation in credit access and SME tools. These fintechs are bringing faster, more inclusive, and customer-centric solutions to underserved populations, creating a new era of financial empowerment. What’s next for fintech in Latin America? Source: Latinometrics

Africa’s fintech is shifting from vertical specialists to integrated ecosystems––a big opportunity in global finance: → Digital banks like Kuda are moving into SME services, while Brass Finance and Zazu offer SMEs tools like bookkeeping, lending, and payments → Mono and Paymentology are unlocking embedded finance with open banking APIs and scalable card infrastructure → MoMo from MTN leverages telco reach to connect underserved populations, while Ecobank Transnational Incorporated and Access Bank Plc are pivoting to BaaS models for fintech partnerships → Flutterwave and Moniepoint Group are rebundling into full-suite platforms, positioning themselves as ecosystem leaders What does this mean for Africa’s financial future? 1. Ecosystem-driven growth will deliver seamless user experiences. 2. Financial inclusion is unlocking access for millions of underbanked individuals and SMEs. 3. Competition and innovation are creating opportunities for investors to back scalable, impact-driven solutions. Image source: Germain Bahri

Brazil’s Pix just hit 5 billion transactions a month––a 41% increase from last year. Here’s why this matters for emerging markets: 1. Free and low fee transactions makes digital payments accessible and attractive to everyone, and reduces the reliance on cash and cards. 2. Pix is now fully integrated with Brazil’s banking apps, and its standardized QR code system is making it the default way to pay in-store and online. With high mobile penetration this streamlined approach can drive rapid adoption. 3. Starting with P2P payments, Pix now supports business payments too, with a 57% jump in B2B transactions. This highlights how instant payments can drive efficiency for businesses. PIX is one of the first digital payment systems to surpass combined credit and debit card usage, paving the way for greater financial investment and innovation across emerging markets. Source: Matera, Pix

The Middle East is emerging as a hotspot for fintech investment. Here's why: 1. Large, young, and tech-savvy population 2. Significant unbanked and underbanked communities 3. Growing demand for accessible digital financial solutions Fintechs are stepping up with tailored offerings including digital wallets, instant transfers, and FX, aligning with customer needs. What could this mean for MENA? ↳ Competition driving innovation in startups and incumbents ↳ Accelerated digital transformation in financial services ↳ Greater financial inclusion The region’s fintech is evolving fast, presenting attractive opportunities for investment and growth, and showing the positive impact the private sector can have in a region where there is a historical overreliance on the public sector.

According to ACI Worldwide, real-time payments will add $285.8 billion to global GDP and bring 170 million new people into the banking system by 2028. Here's why this matters: ↳ Large unbanked populations in emerging markets will gain access to financial services through RTP, creating millions of new bank accounts and increasing opening up economic participation. ↳ In markets where cash is still dominant, RTP offers an efficient alternative, improving cash flow and supporting local businesses that drive employment. ↳ While developed markets are projected to see GDP contributions of $17.7 billion from RTP, emerging markets will lead the way in financial inclusion and GDP growth. What will best support RTP adoption in cash-dominated economies?

Where is Egypt’s Fintech headed in 2025 and beyond? 1. Mobile Payments Surge: With high smartphone penetration, mobile wallets are set to lead digital transactions. 2. Financial Inclusion Grows: Government-backed efforts and fintechs will drive financial access. 3. All-in-One Services Rise: Bundled offerings will boost platforms, bringing digital savings, transfers, and credit to the mainstream. Where do you see the most opportunity in Egypt? Source: dLocal

5 Factors driving Africa's accelerated Fintech adoption: 1. The world’s fastest-growing population, expected to reach 4 billion by 2100. 2. A median age of 20 years and rapid urbanization / a young, digitally savvy population ready to embrace tech-driven financial solutions. 3. Fintech players using creative solutions to reach the unbanked population (57%) such as TymeBank’s use of existing retail networks and Kuda Bank’s budget tools. 4. The surge in mobile and internet usage - most African consumers now have access to digital services through their phones. 5. Alternative data has opened new possibilities for credit scoring in Africa, allowing fintechs to assess creditworthiness without traditional credit histories. ↳ Companies like Tala use phone data to provide instant loans in Kenya, while Jumo leverages mobile and behavioral data to partner with banks and telecoms, expanding financial access to underserved populations. What are developing African markets doing right in fintech? What could they do better? Source: FXC Intelligence