UK Fintech News Roundup: The Latest Stories 22/03

Every Wednesday we delve into the latest fintech updates from across the UK. This week brings updates from Microsoft, FCA, SmartSearch, AGAM and Recap.

Mastercard digital ID offer gets UK thumbs up

MasterCard has been certified under the UK’s Digital Identity and Attributes Trust Framework (DIATF) as an identity provider. It can now offer ID, its digital identity service, to UK organisations.

Mastercard’s ID app, which is available in major mobile app stores, aims to give consumers more choice in how they prove their identity.

DIATF sets the rules and standards for establishing trust in digital identity solutions. Certified organizations can collaborate with each other, ensuring that digital attributes and identities are consistent as well as trusted. Suppliers carry out annual assessments to confirm that they meet DIATF requirements.

“The UK is at the forefront of giving people more control when it comes to proving their identity easily and securely,” said Sarah Clark, senior vice president, digital identity at Mastercard. “By receiving certification in the UK, Mastercard can work with the private and public sector to offer ID.”

FCA calls for improvements in ESG benchmarks

The Financial Conduct Authority (FCA) has threatened ESG benchmark administrators with regulatory action due to the “potential for widespread failure”.

The UK watchdog has carried out a preliminary review of ESG benchmarks, assessing the quality of disclosures offered by a selection of them. It found the overall quality of ESG-related disclosures to be “poor”.

In a new letter to benchmark administrators, the FCA said it will “use the full range of our tools” if problems are not resolved.

It has sent an additional letter to administrators detailing the issues identified, including:

• Not enough detail about the ESG factors considered in benchmark methodologies
• Not ensuring that the underlying methodologies for ESG data and assessment products used in benchmarks are available, clearly presented and explained to users
• Not fully implemented ESG disclosure requirements
• Benchmark administrators who do not properly implement the ESG benchmark’s methodology. For example, by using outdated data and assessments or failing to apply ESG exclusion criteria

AGAM joins forces with Software Shop Limited

UK based fintech AGAM International has merged with Bangladesh payment gateway system Software Shop Limited (SSL).

The partnership sees AGAM facilitate instant, end-to-end digital lending (via partner banks) for SSL’s merchants, businesses and their employee base. Lending includes nano loans, BNPL and EWA (earned wage access), powered by AGAM International’s credit scoring system.

AGAM International will play the role of product manufacturer and developer while SSL acts as system integrator, sales partner or reseller to reach SSL customers and clients, which include companies, banks and financial institutions.

AGAM CEO and founder Shabnam Wazed, said: “The synergy between SSL’s strong platforms and network of merchants, together with AGAM International’s banking technology, will make access to finance for customers, merchants and corporate and enterprise employees immediate and seamless.

SmartSearch introduces the next generation platform

SmartSearch, a UK provider of anti-money laundering software, has unveiled an “enhanced” platform with enhanced features following customer feedback.

It now promises tailored configurability and automation, improved compliance standards, audit-ready reporting and strengthened perpetual KYC.

Stress-tested for reliability, the enhanced platform has performed more than six million searches for customers worldwide during beta testing.
CEO Guy Harrison said: “ As the best solution for AML and risk management, this development sees SmartSearch increase its advantages in the digital compliance solutions market.

“With advanced features and improved user-friendliness, our development efforts mark a significant step forward in response to the demands of modern times.

Recap launches NFT gallery

summary, a crypto tax calculation service, has introduced NFT Gallery. The platform provides investors with a single exposure platform that includes AI-powered valuations and tax tracking functionality.

Integrated with Recap’s tax reporting dashboard, the gallery brings valuations as well as taxable events to NFT collections.

Recap has teamed up with a trusted NFT rating engine Result to earn projected gains, losses and AI-informed judgments. The platform supports more than 67,000 types of NFTs. Users can view all non-fungible token assets in one place, including a live view for both static and video NFTs.

Daniel Howitt, CEO and Co-Founder of Recap said: “For NFT investors with multiple digital tokens, it can be difficult to keep track of assets across different platforms. On top of this, valuation of NFTs has always been somewhat questionable, with current calculations that rely on the most recent floor prices to calculate a value.

“At Recap we have simplified the process – delivering the UK’s first tax engine supported NFT Gallery which centralises a portfolio and produces automated tax calculations and reports. It also leverages Upshot’s powerful advanced machine learning algorithm to provide highly accurate valuations, which take into account order books, properties and NFT sales histories, as well as social and lending data to provide state-of-the-art price estimates for better informed investments. “