Brazil: Brazil’s central bank is expected to raise its key interest rate in response to rising inflationary pressures. The increase would mark a shift from its recent easing stance and comes amid concerns over inflationary dynamics in the country. This decision could impact borrowing costs and economic growth as the bank aims to balance inflation control with economic stability. The move follows recent signals from policymakers about the need to address inflation more aggressively. Source
Mexico: The Mexican Peso strengthened by 0.40% against the US Dollar, supported by positive US retail sales and industrial production data. Despite these figures, traders continue to expect a 50 basis point rate cut from the Federal Reserve. The USD/MXN trades around 19.11, with key resistance near 19.50 and support at 19.02. Upcoming Mexican Q2 Aggregate Demand and Private Spending data are also being watched, while the Federal Reserve's rate decision is highly anticipated. Source
Brazil: Circle has integrated USDC with Brazil's PIX and Mexico's SPEI payment systems, allowing users to buy USDC using local currencies. This move aims to lower transaction costs and improve cross-border payment efficiency, particularly benefiting businesses in both countries by facilitating easier dollar-based trade. The integration enhances USDC's utility in Latin America, especially in Brazil and Mexico, which are key regional economies. Source
Brazil: Brazilian fintech Magie has launched an AI-powered financial assistant that operates through WhatsApp, making it easier for users to manage payments. With nearly 14,000 clients and over BRL 120 million in transactions, Magie is already surpassing its initial growth targets. The startup's mission is to provide personalized financial services, using AI to improve user experience compared to traditional bank chatbots. While starting with WhatsApp, Magie has plans to expand its services beyond the messaging platform. Source
Brazil: Latin American fintech Clara has appointed Travis Foxhall as its new finance director as the company’s Brazil operations grow rapidly. Clara, a Mexican unicorn, has reached over BRL 3 billion in payment volumes, serving clients like Burger King and Toyota. Foxhall, previously at Point72 Ventures and Neon Bank, will oversee financial operations and fundraising as Clara continues to expand in Brazil, Mexico, and Colombia. Despite strong capital reserves, the company remains open to further investment opportunities. Source
Mexico: MercadoLibre has secured $250 million in financing from JPMorgan to enhance the credit capabilities of its fintech arm, Mercado Pago, in Mexico. This funding will be used to expand Mercado Pago’s credit profile, allowing it to support more small and medium-sized businesses and individuals in the country. The fintech has been rapidly growing in Mexico, particularly with the adoption of its mobile credit-card readers. Mercado Pago is also pursuing a banking license in Mexico, which would enable it to offer additional services like savings accounts, commercial loans, and mortgages Source
China: China’s local government debt is becoming a significant concern for the country’s economic growth. Hidden liabilities, accumulated through off-balance-sheet borrowing, are creating financial strain. Local governments are struggling to generate enough revenue to repay these debts, which limits their ability to invest in infrastructure and social services. This growing debt burden is posing a risk to China’s broader economic recovery and efforts to boost growth, especially as the central government tries to manage the slowdown. Source
India: India can achieve sustainable economic growth of 7% to 8% over the medium term, according to the Reserve Bank of India (RBI) Governor Shaktikanta Das. He attributes this potential growth to structural reforms, a young workforce, and strong investment inflows. Das also highlighted the importance of stable inflation and monetary policies in supporting long-term growth. The RBI is optimistic about India’s future, provided there is continued focus on maintaining macroeconomic stability and increasing productivity. Source
India: The University of Wollongong, India, is offering a 50% tuition waiver for meritorious women pursuing studies in fintech. This initiative aims to promote gender diversity and encourage women to enter the fintech sector. The scholarship is available for select programs, and applicants must meet certain academic and professional criteria. The program highlights the university's commitment to supporting women's education and empowerment in the growing fintech field. Source
China: Hong Kong will release AI policies for the finance sector in October 2024. These guidelines aim to regulate the use of artificial intelligence, balancing innovation with ethical considerations. The policies are expected to cover AI applications in trading, investment banking, and cryptocurrency, positioning Hong Kong as a leader in financial AI. The announcement will coincide with Hong Kong’s Fintech Week and comes amid US-China tech tensions, with AI regulations designed to attract investment while ensuring responsible use. Source
India: Centricity, a wealth management platform, raised $20 million in a seed funding round led by Lightspeed. The platform aims to offer advanced solutions for financial advisors to manage client assets and enhance user experience. This funding will help Centricity expand its team, scale its technology, and broaden its services. Lightspeed's investment reflects growing interest in wealth management technologies that streamline operations and foster personalized financial planning. Source
India: Indian insurtech startup Onsurity has raised $21 million in a new investment, led by private equity firm Creaegis, completing the company’s Series B round at a total of $45 million. This funding will be used to support Onsurity's expansion plans, including improving its technology stack, launching new digital offerings, and enhancing the claims process. The startup, which focuses on providing healthcare and insurance solutions to small and medium-sized enterprises (SMEs), aims to increase its customer base from 8,000 to 50,000 companies by 2026. Source
South Africa: South African markets are responding to key upcoming economic announcements, including data releases and policy updates. Investors are closely watching for signals from the South African Reserve Bank on interest rates and inflation trends, which could affect market sentiment. These announcements are expected to impact both domestic economic forecasts and the outlook for financial markets, particularly in relation to inflation management and economic growth prospects. Source
Nigeria: Nigeria’s current economic policies, including subsidy removals and currency devaluation, are fueling social unrest. The rising cost of living, driven by inflation and poor wage growth, has left many Nigerians struggling to meet basic needs. Critics argue that the government’s austerity measures disproportionately affect the poor, while the lack of social safety nets exacerbates the situation. These policies have sparked protests and increased dissatisfaction, raising concerns about future stability. Source
Kenya: Kenya's finance ministry forecasts that the country's budget deficit will decrease to 3.5% of GDP in the 2025/26 fiscal year, down from 4.3% in the current fiscal year. This projection comes after President William Ruto scrapped tax hikes due to protests and opted for spending cuts and more borrowing instead. The deficit is expected to shrink further to 3.3% of GDP in the 2026/27 fiscal year. Source
Nigeria: Nigeria's fintech sector is facing a surge in fraud, with reported cases rising to 11,532 in Q2 2024. The amount lost to fraud spiked dramatically, reaching ₦56.3 billion. Major players like Flutterwave and Interswitch have suffered significant breaches, leading to increased scrutiny. Regulatory bodies, such as the Central Bank of Nigeria, have introduced stricter KYC measures to combat fraud. Experts emphasize early detection, collaboration, and consumer education as key solutions to tackling the issue. Source
Nigeria: Nigerian compliance platform Regfyl has raised $1.1 million in pre-seed funding to expand its unified compliance services across Africa. The platform helps businesses manage regulatory requirements, such as customer onboarding and transaction monitoring, with a focus on sectors like finance, gaming, and e-commerce. The funding will be used to enhance the platform’s capabilities, grow the team, and develop new tools for supply chain compliance. Investors include Rally Cap, Techstars, and other venture firms. Source
Kenya: Nigerian fintech company Risevest has acquired Hisa, a Kenyan investment startup, as part of its expansion into Kenya’s growing digital investment market. The deal, approved by Kenya's Capital Markets Authority, allows Risevest to operate legally in the country. Hisa will continue under its existing brand and leadership, with Risevest focusing on understanding the new market. This acquisition positions Risevest to tap into Kenya's projected $2.776 billion digital investment sector in 2024. Source
South Africa: South African fintech Happy Pay has secured $1.8 million in pre-seed funding. The round was co-led by E4E Africa and 4Di Capital, with additional support from DotExe Ventures, Launch Africa, and others. Happy Pay offers a Buy Now, Pay Later service, utilizing AI-driven credit scoring. With rapid user growth, the company plans to expand its merchant base, introduce new products, and grow its team. The funding will support its goal of providing interest-free credit solutions to consumers and boosting eCommerce for merchants. Source
Israel: A recent report indicates that nearly half of Israeli tech startups (49%) have had investments canceled due to the ongoing conflict, with 31% of companies lacking confidence in their ability to raise funds next year. Northern Israel, in particular, faces heightened concerns, with many companies contemplating relocation. Despite the challenges, there are signs of resilience, with $7.8 billion raised in tech investments this year. However, confidence in the government's ability to support recovery remains low. Source
UAE: The UAE and Australia have concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA), which will eliminate tariffs, streamline trade, and open new investment opportunities. This agreement marks Australia’s first trade deal with a MENA country, with bilateral non-oil trade reaching $2.3 billion in H1 2024. It aims to strengthen economic ties, with Australian exports expected to increase by $460 million annually, benefiting sectors such as renewable energy, agriculture, and construction. Source
Israel: Israel has launched the second phase of its national AI program with a NIS 500 million investment aimed at enhancing research and development infrastructure. This phase focuses on establishing advanced AI capabilities and bolstering Israel's position as a global leader in AI technologies. The investment will support R&D in areas such as natural language processing, machine learning, and AI ethics, with plans to integrate these technologies across various industries. Source
Dubai: Bybit has secured a provisional Virtual Asset Service Provider (VASP) license in Dubai, marking a significant step in its global expansion. This license allows the cryptocurrency exchange to offer a range of services while complying with the local regulatory framework. Bybit's move into Dubai aligns with the city's efforts to become a global hub for digital assets and blockchain technology. The exchange plans to continue working with Dubai regulators to offer compliant and secure crypto services in the region. Source
Egypt: Settle Payments, a B2B payment platform in Egypt, has secured $2 million in pre-seed funding, led by Shorooq Partners. The funding will be used to enhance its platform aimed at overhauling Egypt’s B2B payment processes, helping businesses manage cash flow and transactions more efficiently. Settle Payments aims to provide a streamlined solution for businesses dealing with inefficient, fragmented payment systems. This round also included participation from angel investors, marking a significant step forward for digital payment solutions in Egypt. Source
