UK Tightens Oversight on Critical Tech Providers in Finance
Hey FinTech Fanatic!
The Financial Conduct Authority (FCA) and the Bank of England have rolled out new rules targeting the resilience of critical third-party technology providers. With financial institutions relying more heavily on a small pool of tech firms to keep operations running smoothly, this framework is designed to mitigate risks that could disrupt services across the board.
Under these new guidelines, certain third-party service providers—now classified as Critical Third Parties (CTPs)—will be directly overseen in relation to the essential services they provide to financial firms. If HM Treasury designates a provider as a CTP, they’ll be required to meet rigorous standards, including resilience testing, scenario-based exercises, and regular reporting on major incidents, such as cyber-attacks or natural disasters.
The FCA has made it clear that while these new measures add oversight, financial firms themselves remain responsible for managing third-party risk effectively and ensuring they can handle operational shocks.
We’ll be keeping a close watch on how this unfolds and what it means for the industry.
Now, let's not waste any more of your time and dive straight into today's FinTech news I listed for you below👇
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POST OF THE DAY
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🇬🇧 UK financial watchdogs set out new rules for overseeing critical third party tech providers. UK financial regulators have announced new rules to strengthen the resilience of technology and other third parties that provide essential services to financial firms.
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PAYMENTS NEWS
💳 Payment Orchestration: Addressing critical challenges in digital commerce, by DEUNA.
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🇺🇸 Mastercard debuts platform to help small businesses consolidate digital tools. The Mastercard Biz360 platform provides a “one-stop shop” that allows business owners to access new features while also integrating their existing digital tools, the company said in a press release.
🇰🇭 Cambodia and Mastercard roll out ‘Bakong Tourists’ app for seamless payments. The app simplifies digital payments for international tourists visiting Cambodia, allowing them to download it upon arrival and seamlessly top up their Bakong accounts using a Mastercard issued in their home country.
🇬🇧 CLOWD9 partners with Discover Global Network. The partnership follows specific demands from customers, with Discover Global Network enabling CLOWD9 to provide a third network option for FinTech companies and programme managers, scaling opportunities for cross-border card issuance.
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DIGITAL BANKING NEWS
🇬🇧 Metro Bank fined nearly £17m for failure to monitor potential money laundering. The FCA said that while Metro started automating the monitoring of customer transactions for potential financial crime in 2016, the system did not work as intended. More on that here
🇺🇸 FinTech Chime has reportedly submitted a comment to Joint Banking Regulators’ Request for Information on bank-FinTech partnerships. Chime explained they did so to share more about their business and how they’re working to “keep members’ funds safe and continue unlocking their financial progress.
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🇺🇸 The FTC comes after Dave, stating the neobank misled consumers by marketing $500 cash advances as “instant” with phrases like “on the spot” while rarely offering them and charging an “Express Fee” for immediate access, which was only disclosed after users signed up and granted bank account access.
BLOCKCHAIN/CRYPTO NEWS
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PARTNERSHIPS
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DONEDEAL FUNDING NEWS
🇯🇵 SmartBank secures $26M for its personal finance management app. The startup will use the new capital to double down on hiring from 49 staff in October to around 100 employees by 2025; half of the total workforce will be the engineering team.
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🇫🇷 Treasury management platform Agicap closes on €45 million Series C. The firm currently supports 8000 clients, integrating banking & ERP connectivity, cash management, liquidity planning, accounts receivable, accounts payable and spend management.
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🇺🇸 Apollo invests in FinTech to boost service for private markets. Apollo Global Management Inc. is investing in startup Vega and adopting its technology that looks to improve service for clients looking to further their investments in private markets.
MOVERS & SHAKERS
🇬🇧 Sibstar appoints GoHenry co-founder and CEO Louise Hill as on-Executive Director. Louise will offer independent advice and provide oversight to Sibstar’s executive directors, ensuring optimal performance while providing strategic guidance and support to the executive team as needed.
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