Fintechs to play large role in the metaverse

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What to read today: US Banking Channel Forecast: Digital banking channels are enjoying supercharged momentum as a result of the coronavirus pandemic. Insider Intelligence forecasts the development of five key banking channels in the US between 2020 and 2024: branches, digital platforms, smartphones, call centers, and ATMs. The report identifies the drivers behind the trajectory of each channel's penetration, including changes in consumer behavior or advancements in technology. .
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November 6, 2021
Insider Intelligence
Fintechs will play a key role in the metaverse
Facebook's rebranding as a metaverse innovator opens up opportunities for firms looking to embed fintech solutions into this next iteration of the digital realm.

The ability to manage finances and transactions in this new environment will be key to making it as immersive and comparable to real life as Facebook hopes.

This space is still very nascent, and it's unclear what a metaverse will look like. As Facebook positions itself as the gatekeeper to its own metaverse, fintech startups could benefit from integrating their solutions into its ecosystem.

Alternatively, larger fintech players may explore creating their own metaverses: Coinbase's upcoming NFT marketplace, for example, will include personal feeds based on each users' interests to help connect them with like-minded users and creators.

Insider Intelligence's Victor Chatenay has the full story.
BRIEFING HIGHLIGHTS
Klarna's super app launch kicks off transformation from payments platform into end-to-end shopping hub
Buy now, pay later (BNPL) firm Klarna unveiled a super app that consolidates shopping, payment management, and support for products, delivery, and returns, per a press release.
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Lemonade taps new revenue stream with car insurance launch
The US-based insurtech's latest coverage, Lemonade Car, went live in Illinois before rolling out nationwide in the coming months.
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Engagement surge from NatWest's message personalization strategy helps it compete with neobanks
NatWest revealed that its digital engagement from customers has surged 41% year over year (YoY) for the first nine months of 2021.
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Nubank's younger-leaning customer base should worry incumbents
Nubank revealed that its customers skew younger than those at established banks, per findings included in its newly disclosed US initial public offering (IPO) filing.
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U.S. Bank expands SMB market push with cross-selling plans for State Farm customers
U.S. Bank is now offering banking products to State Farm's small and medium-sized business (SMB) insurance customers.
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New deals and products can help Fiserv invigorate growth in Q4
Financial services technology giant Fiserv reported 10% year-over-year (YoY) revenue growth in Q3, notching $3.96 billion and strongly outperforming Q3 2020's 1% decline.
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Q3 global fintech funding smashes records
Fintechs raised $31.1 billion across 1,185 deals, the second-largest haul on record behind Q2's $36.8 billion.
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SMB neobanking may get a confidence boost from Qonto's possible €400M round
Qonto, a French neobank that caters to small and medium-sized businesses (SMBs), is in discussions to raise about €400 million ($456.1 million) at a valuation of up to €4.4 billion ($5.02 billion), per Insider.
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Square, seeking life-long users, opens Cash App ecosystem to teens
Square's Cash App is now letting users 13 to 17 years of age join its platform and open a Cash Card with parental oversight—previously, Cash App was only available to users over 18, per TechCrunch.
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Zip anticipates strong holiday season amid BNPL blitz—but with more competition
Zip Fest—Zip's preholiday shopping event held from October 21 to 25—was a smash for the provider.
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RESEARCH IN FOCUS
US Banking Channel Forecast
Digital banking channels are enjoying supercharged momentum as a result of the coronavirus pandemic. Insider Intelligence forecasts the development of five key banking channels in the US between 2020 and 2024: branches, digital platforms, smartphones, call centers, and ATMs. The report identifies the drivers behind the trajectory of each channel's penetration, including changes in consumer behavior or advancements in technology.
Get the full report →
Canada Mobile Banking Emerging Features Benchmark 2021
This inaugural study, weighted based on responses to a consumer survey, ranks the seven largest Canadian financial institutions by assets according to their mobile banking capabilities. The Insider Intelligence 2021 Canada Mobile Banking Emerging Features Benchmark uses a dedicated survey of 1,187 Canadian consumers to identify the mobile banking features that consumers demand, highlighting features that the top seven Canadian FIs by assets deploy and the mobile functionality that consumers value most.
Get the full report →
The Banking Heads of Digital Report
Digital is integral to the customer experience, and banks' heads of digital are the lynchpin. We synthesize exclusive interviews with a dozen heads of digital at some of the largest financial institutions in the US, UK, and Canada and heads of product at three top neobanks. We glean insights into how heads of digital define their roles and their place in the organization; how trends are shaping their responsibilities; the greatest challenges heads of digital face; and the priorities they've set for the future.
Get the full report →
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