Hi, fintech fam! 💜

It’s the beginning of our favorite time of the year — Women's History Month!

At Fintech Is Femme, we tirelessly uplift women all year long. However, I am thrilled to have this month to curate extraordinary events and content exclusively for you.

To celebrate, I’m hosting a virtual event designed to bring us all together no matter where in the world we are — scroll to the bottom for the details — I hope to see all of you there!

The events and content I’m putting together this month will enable you to further your knowledge, personal growth, and professional advancement in the fintech industry by learning directly from the remarkable women who have fueled and motivated me.

Throughout the month, prepare to be inspired as I share the captivating leadership journeys and invaluable tactical advice from these exceptional women.

Now, let's dive into the latest news!

WHY UPGRADE?

For our premium members, I send out updates 3x a week through our new column, "On Performance.” These columns will provide tactical advice to improve your entrepreneur and business leader performance.

Plus, premium members support female-led journalism and keep this work going. Because of your support, Fintech Is Femme is more than just a newsletter; it's a media empire and community for women to connect, learn, and support one another.

#TRENDING

What’s Up In Fintech

Every Thursday, I share news stories and trending pieces I follow. Think of it as a way to quickly find the most important news in the fintech world.

#1 Fintech Orum Connects to Federal Reserve Bank

Last summer, the government's payments system got its first facelift since the disco era with the launch of FedNow.

Enter Orum, the brainchild of CEO Stephany Kirkpatrick, a New York-based account-to-account payments company with a mission to revolutionize financial institution's use of the Federal Reserve's FedNow instant payments rail.

In a press release that dropped today, Orum proudly declared its live status with FedACH, sharing about its upcoming additions of FedNow and FedWire services.

This direct connection is part of Orum's new money movement API, Deliver, orchestrating money's grand entrance through the Fed’s payment rails, making banks feel like innovators.

And let me tell you, clearing the bar for this direct connection is like acing a survival obstacle course – you need to exceed the Federal Reserve's rigorous diligence, contracting, and IT testing requirements, not to mention the financial institutions' demands.

Orum is here to shake up the payments world, and let's be real – it's about time someone did. The female-founded fintech is on a mission to conquer the B2B payment world, having raised a whopping $82 million since its 2019 inception.

Why It Matters

Many payment platforms and fintechs are stuck in a maze, trying to gain access to all possible payment rails, all while battling technical issues and the dreaded downtime monster.

According to the Ponemon Institute, downtime can cost a business up to $500,000 per hour. Ouch.

Now, in October, Orum flexed its FedNow muscles by launching an account verification tool that zips through the Fed's instant payments network. Imagine verifying a bank account in 15 seconds.

FedNow, born in July, gave Orum the green light to create this service, turning days of waiting for bank account verification into mere seconds. Talk about a leap into the future.

The Federal Reserve decided to join the 21st century with the FedNow Service. And I could feel the industry nearly yawning at how slow our federal payments systems were before fintech came to the rescue.

FedNow allows financial institutions, big and small, nationwide, to dance with safe instant payments 24/7. Orum's the matchmaker, connecting these institutions to the FedNow Service.

Even better, the FedNow doesn’t believe in weekends, bank holidays, or downtime. It's a 24/7 party for transactions. Unlike ACH or wires, it's clearing and settling payments whenever the heck you want – weekends, holidays, nighttime – you name it.

Other benefits include:

• Efficient business operations because who needs delays?

• Quicker access to salary payments because waiting for payday is so last century.

• Cheaper processing costs because who wants to burn money on transactions?

• Promoting financial inclusion by letting everyone join the real-time payment party.

• Fueling innovation by giving fintech companies a shiny new platform to build on.

#2 Black Women Fastest Growing Group of Entrepreneurs

Black women are tearing up the entrepreneurial scene, racing ahead as the fastest-growing group of business moguls and slamming the door on the racial wealth gap.

Entrepreneurship is the golden ticket to generational wealth, and let me tell you from experience, it's not just a theory – it's a game-changer.

Essence reported that Black founders own 15% of U.S. microbusinesses, and guess who's holding the crown in that category? Black women — owning 68% of microbusinesses.

Now, that's what I call taking the reins.

Hold on, it gets better.

One in six microbusinesses is raking in over $100,000 annually. And almost three out of ten women running these microbusinesses are the head honchos of their households.

And if you're thinking, "No surprises here," you're on the same wavelength as me.

Why It Matters

According to data from Wells Fargo, over 2 million Black women-owned businesses are doing their thing in the U.S.

That's not just numbers; that's a powerhouse of economic influence.

When Black women-run businesses, it's not just about the Benjamins; it's about giving back to their communities. We're talking 528,000 people employed and $98.3 million in revenue generated. Boom.

The stark reality is that despite Black women launching businesses left and right, the venture capital world seems to have missed the memo.

Funding to Black founders was down in 2023 for the third year. Black founders in the US raised 0.48% of all venture dollars allocated last year, around $661 million out of $136 billion. This number is the lowest it's been in recent history.

The gap between the surge in Black female entrepreneurs and the crumbs of venture capital they receive is a red flag for our fintech community.

According to data from McKinsey & Company, teams with different genders and ethnicities can yield a remarkable 30% boost in multiples on invested capital compared to more homogenous groups. 

Yet, VC-backed startups are still dominated by the same faces. According to data from Diversity VC, founding teams receiving VC financing are: 

• 89.3% men

• 71.6% white

• 35.3% based in Silicon Valley

• 13.7% Ivy League-educated 

This lack of diversity represents a missed opportunity.

World Economic Forum research shows that companies with above-average diversity scores drive 45% of average revenue from innovation. In comparison, companies with below-average diversity scores drive only 26%.

Newsflash: diverse entrepreneurs mean businesses with not just one but two bottom lines – more profits and sustainability.

It's not just about the dollar signs in the grand scheme of things. It's about creating wealth and our industry's power to cater to communities that hunger most for financial technology.

Let's get on the right side of history, shall we?

#3 Change Machine: Who Is Fintech Still Leaving Behind?

As I embarked on my daily LinkedIn dive, chasing the latest news, an article by the nonprofit Change Machine, led by the CEO Mae Watson Grote, snagged my attention and didn't let go.

Being a fintech nerd, the allure of advanced technology intertwining with my inner activist always gets me pondering on which communities fintech is missing.

While we make strides, it's the same cast year after year – women, people of color, and low-income communities.

Now, let's talk about the intriguing question raised by Change Machine's piece, which you absolutely should read here.

Why It Matters

Sure, digital finance tools are spreading across income brackets and identities.

Plaid's recent survey even spills the tea that Black (76%) and Hispanic Americans (86%) are hopping onto digital finance faster than their white counterparts (72%).

But here's the million-dollar question – or should I say fintech dollar question:

 Does using fintech actually fortify the financial security of these groups?

This is a question that keeps me up at night.

It's fantastic that more folks are getting their hands on fintech tools, but who's schooling them on how to wield these tech marvels to their advantage? Where's the education in this fintech ecosystem?

Despite fintech's meteoric rise, Change Machine's article drops a startling statistic – only half of U.S. adults are riding the positive cash flow wave.

Credit where it's due, fintech has bulldozed some of these hurdles, making financial products more accessible to those who traditionally faced locked doors at financial institutions.

But access is just the warm-up act. It doesn't answer the pressing questions:

Are these fintech innovations genuinely nudging people toward their financial goals, or are they left to navigate the storm of financial insecurity solo?

Did the multicultural design process go beyond translating language or stop there?

Do these products play nice, reducing harm instead of becoming the breeding ground for inequities, like hiking fees or dishing out nightmarish user experiences?

These are the queries that need airtime if fintech intends to make a real difference in the lives of marginalized communities.

We can't just settle for "access." It's time to raise the stakes and focus on a loftier goal: Financial Security.

Enter Change Machine, stage left, doing the heavy lifting to infuse equity into financial systems by:

• Setting national standards for equitable fintech.

• Cracking the code to boost adoption and usage of equitable fintech solutions.

• Championing programs and policies that lay the groundwork for financial security.

Now, that's what I call doing THE work. Kudos.

_{MARK YOUR CALENDARS}

Join us every Thursday to stay updated on the top fintech events!

_{MARCH 19}

_{[VIRTUAL] Trailblazing Women In Fintech Event} 

To celebrate Women’s History Month, I’m joining forces with Arta Finance to host a virtual event designed to inspire you with insights from female leaders driving the change our industry needs. 

Not only will we be hosting an event for the community to come together, but we're also providing a unique opportunity to nominate a female trailblazer to speak on a panel with industry luminaries during the event. 

Here’s how it works: 

• Secure your seat by registering

• Fill out your information

• Know a trailblazing woman who deserves to have her voice amplified? Nominate her during the registration process for the opportunity to join the speaker faculty. 

I cannot wait to drop the speaker lineup for this event and see the incredible women you nominate to join the discussion. 

Save your seat here, and let’s celebrate Women’s History Month together! 

I hope to see as many of you as possible!

_{APRIL 10}

_{[NYC] Empire Startups Fintech Conference}

Earlier this year, I asked my friend, Jon Zanoff, of Empire Startups to write to the Fintech Is Femme community and share a special message about New York Fintech Week.

Here’s what he had to say.

Jon Zanoff: We are bouncing off the walls with excitement as we roll out the red carpet to welcome Nicole and Fintech Is Femme back to the Empire stage for the third consecutive year!

And let's talk about the Empire stage – it's not just diverse. It's a melting pot of ideas, innovation, and probably a few dance moves thrown in for good measure.

Hold onto your term sheets because here's a fun fact: 

We've been the ONLY FinTech conference at gender parity going strong for five straight years! We’re  👀 looking 👀 at you,  Vegas!  

It all started with a lightbulb moment – which, when you really think about it, isn’t that “lightbulb” at all.

Why settle for anything less than a stage that truly reflects the colorful tapestry of the FinTech world? 

We're not just here to ‘talk the talk’; we're showing the world that representation matters.

In a world where even salad ingredients can spark political debates, we're standing firm and proud with our #NoManelPolicy.

Because let's face it, who needs a frat party when you can have a powerhouse of diverse voices shaking things up and making waves?

As FinTech (yup, capital T!) continues to move the needle forward, it only can do so with a variety of perspectives, identities, and experiences sharing what they’re doing and why it matters with the masses.

So mark your calendars for April 10, 2024, because we're excited to be making history once again.

Our next ticket price jump happens at 11:59 PM ET on 2/29. We've set up a FintechisFemme15 code that subscribers can use for 15% off of their conference pass. Grab yours here.

_FINTUNES

🎵 Victoria Monét - Jaguar

Let me give a special mention to the amazing artist, Victoria Monét, who has been in the music industry for a decade and a half. Despite being behind the scenes, writing and producing some of the best music, she's finally getting the recognition she deserves and has received multiple Grammy Awards for her work this year. Her story is a great reminder that each of us is on our own unique path to success.

That’s all for now! Stay safe, everyone. Hug your loved ones. See you Sunday!

Love,

Nicole

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