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Hi, fintech fam! 💜

As always, the fintech world is buzzing with news. This week, my attention is captivated by stories highlighting fintech companies addressing diverse global challenges.

While most of us are based in the U.S., I find immense value in staying up-to-date on global developments. It's easy to get nestled in our spheres, yet there's a wealth of wisdom to glean from observing ventures worldwide.

In today's newsletter, we'll examine two compelling news pieces that offer insights from international contexts. We'll also conclude with reflections from Serena Williams, a world champion who has transitioned into investing.

Let's jump right in!

P.S. Be sure to check out the upcoming events listed at the bottom of this newsletter. Both in-person and virtual, they provide invaluable opportunities for our community to foster connections. I look forward to seeing you at one!

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#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 Tala and Maya Bank Team Up to Bridge Financial Gap for Millions in the Philippines

Tala, a fintech company that uses mobile phone data to extend loans to consumers in emerging markets, announced Wednesday a partnership with Maya Bank, a digital bank in the Philippines. 

This collaboration is designed to channel $48.5 million through independent digital platforms, ensuring millions more Filipinos can access credit.

Tala, founded in 2014 by CEO Shivani Siroya, has been making waves with its financial platform. It processes nearly $200 million in monthly transactions and serves 9 million customers across Kenya, the Philippines, Mexico, and India. Notably, 58% of its customer base comprises women.

The Philippines has emerged as a strategic focal point for Tala, with nearly one million Filipinos utilizing its Tala Wallet since its official launch in April 2023.

Tala's wallet lets customers borrow and store money, pay bills, and send and receive cash from their phones, saving them time traveling to and waiting at banks.

Why It Matters

Despite being one of Southeast Asia's fastest-growing economies, the Philippines grapples with a glaring financial access gap.

Traditional banks, focusing on wholesale and corporate sectors, have left a significant portion of the population underserved. This void is further exacerbated by incumbent banks' underinvestment in digital offerings, leaving Filipinos clamoring for accessible financial solutions.

Several other factors contribute to the exclusion of these individuals and small businesses from financial services, with a core issue being the absence of sufficient data preventing traditional banks or lenders from catering to the specific needs of individuals in these developing economies.

When a consumer or business owner applies for a loan – the legacy financial institution must check their identification to track their historical data and determine if the consumer is trustworthy enough to repay the loan.

The problem with this approach is that nearly 850 million people worldwide lack an official identification.

Within low-income countries, 46% of adults cite documentary requirements, 44% mention the distance to registration points, and 40% highlight the prohibitive costs of obtaining an I.D. as reasons for not having one.

However, we can leverage alternative data metrics to develop tailored financial products and give these individuals purchasing power and liquidity.

In that case, it's possible to encourage their participation in the economic marketplace, but someone has to start the new cycle. 

Enter Tala and Maya Bank. By leveraging alternative data metrics and mobile technology, Tala circumvents traditional credit scoring hurdles, empowering individuals with limited or no formal borrowing history to secure loans ranging from $10 to $500.

Siroya's leadership philosophy, rooted in what she terms "radical trust," has been instrumental in Tala's meteoric rise. By fostering a culture of innovation and actively engaging with market realities, Tala has thrived and revolutionized the financial landscape.

In the words of Siroya herself, "The best way to predict the future is to create it."

One intriguing anecdote showcasing Siroya's leadership is her decision to launch the platform in the Philippines, a story recounted in Julia Boorstin's book When Women Lead. 

Siroya reveals that Tala's debut in the Philippines initially fell below expectations compared to its successes in India and Kenya. 

To tackle this challenge head-on, she sent one of her team members to immerse themselves in the local culture for six months. 

This deep dive into the Filipino market led to a crucial insight: with 85% of transactions being cash-based, Tala's services could only gain traction by integrating with remittance centers and retail chains. 

Had she not trusted her team to explore the issue, they wouldn't have known how to change their strategy. 

The Santa Monica, California-based fintech company has delivered over $4 billion in credit access, reached 3.5 million monthly active users in December 2023, and raised $350 million in funding since its inception. 

#2 Fintech Unlocks Opportunities In Africa’s Gaming Industry

Fintech innovations are reshaping the gaming industry, carving new pathways for mobile money adoption and digital transactions. 

Lucy Hoffman, the Co-Founder and COO of Carry1st, spotlights this transformative synergy in a compelling piece featured by the World Economic Forum.

Carry1st, headquartered in Cape Town and New York, develops, licenses, and publishes mobile games explicitly tailored for the African market. Their payments platform, Pay1st, facilitates in-app purchases for popular titles like Call of Duty: Mobile and embraces various local payment methods across the continent.

With a revenue of $25 million in 2023, this startup shows growing impact and regional success.

Why It Matters

Hoffman underscores several notable trends for fintech leaders to consider. I’ll paraphrase a few highlights (but definitely read the full article!)

First, gaming plays a pivotal role in global entertainment, raking in a staggering $350 billion in revenue in 2023, surpassing the combined earnings of movies, music, and streaming platforms. This exponential surge owes much to the meteoric rise of mobile gaming over the past decade.

Yet, this burgeoning player base presents unique challenges, particularly in Africa, where only 3.92% of the population can access credit cards.

Enter fintech leaders poised to bridge this gap and foster financial inclusion.

Africa has become a hotbed of payment innovation, with many regions leapfrogging traditional banking systems to embrace digital transactions. Nigeria boasts a roster of fintech unicorns like Opay, Flutterwave, and Interswitch, while Kenya leads the world in mobile money adoption.

The prevalence of mobile money in Sub-Saharan Africa, accounting for a staggering 66% of global mobile transactions, underscores the region's pioneering spirit in innovation.

These fintech advancements hold profound implications for scaling games profitably across Africa.

Historically, traditional app stores have streamlined the global distribution of games, enabling developers in Los Angeles to reach audiences worldwide and receive payments in US dollars, regardless of their customers' locations.

However, Hoffman notes that these conventional platforms need help keeping pace with Africa's fintech revolution.

As a result, many eager customers cannot transact using accessible payment methods, depriving them of the gaming experience they crave. Crucially, this also hampers African game developers from building profitable businesses tailored to their local audiences.

Arts and entertainment represent a vast opportunity for economic growth across the continent, provided the platforms exist to connect creators with their audiences.

In Hoffman's words, "There's no ambiguity here – fintech and gaming is a partnership where everyone stands to benefit."

#3 Get Funded By Serena Williams? Here’s How.

The queen of tennis and 23-time Grand Slam Champion Serena Williams retired in September 2022 to turn her focus on venture capital, establishing Serena Ventures, a venture capital fund specifically designed to champion women and underrepresented founders.

In a TikTok video, Williams shared that she has invested in more than 85 companies, 14 of which have reached unicorn status. According to Serena Ventures’ website, the company’s portfolio comprises 79% underrepresented founders, 54% women founders, 47% Black founders, and 11% Latino founders.

I witnessed Williams' inspirational speech at Money20/20 in Las Vegas in October 2022, where she unveiled her 'Play to Win' strategy. It was a moment etched in memory when Williams outlined her criteria for investing in startups and entrepreneurs.

Here are the top 5 factors Williams considers crucial when evaluating potential investments:

1. Personal Connection: Williams emphasizes the importance of the founder's personal story and passion for their product. She seeks out founders driven by a genuine connection to their mission, believing that this passion breeds resilience and determination, essential qualities for success in the face of adversity.

2. Response to Adversity: Williams values how founders respond to challenges and setbacks. She believes that adversity builds character and resilience, essential traits for navigating the unpredictable landscape of entrepreneurship.

3. Uniqueness: Williams looks for products or services that address unmet needs in the market, avoiding oversaturated sectors. She seeks out innovation and uniqueness, steering away from crowded markets like credit cards and banking products.

4. Team Dynamics: Williams conducts thorough due diligence by engaging with a company's team beyond its leadership. She recognizes the importance of the first 10 employees in shaping a company's culture and trajectory.

5. Diversity: Williams recognizes the value of diverse perspectives and prioritizes investments in companies with diverse teams. Research shows that ethnically diverse teams outperform homogeneous ones, making diversity a cornerstone of Williams' investment philosophy.

Why It Matters:

Williams' foray into venture capital represents a seismic shift in the investment landscape, amplifying the voices of underrepresented founders and driving meaningful change in the tech ecosystem.

By prioritizing diversity and inclusion, Williams champions untapped talent and catalyzes innovation and economic growth.

_{MARK YOUR CALENDARS}

Join us every Thursday to stay updated on the top fintech events each week! These events are a great way to network, learn, and connect with our fintech community. Let's fill our calendars with these awesome events - I would love to see you there! If you have an event to share, please inform me!

_{THURSDAY 5/9}

[VIRTUAL] ​Fintech Is Femme proudly presents SUFFS: Building As Women, a special virtual event!

​Join Fintech Is Femme as we spotlight the creation of this groundbreaking all-female-cast Broadway production, drawing parallels to the challenges faced by female leaders and entrepreneurs in the business world.

​Join us on May 9th as we gather our community to glean invaluable insights, including:

• ​The essential ingredients for initiating and expanding pioneering projects

• ​Key lessons on fostering an entrepreneurial mindset within corporate environments

• ​Effective strategies for collaboration and fundraising as a startup founder.

​SUFFS, the Broadway musical, is not just a historical account of the 1913 Women's Suffrage Movement but a poignant reminder of our responsibility to unite, organize, collaborate, and challenge the prevailing norms, just as the trailblazing women who came before us did.

​Speakers include:

• ​Rachel Sussman, Tony award-winning creative producer, educator, entrepreneur, and SUFFS producer.

• ​Mayte Natalio, theater choreographer for SUFFS.

• ​Jessica Shpall Rosen, Partner, Greenwald Doherty

• ​and more!

​Following the virtual event, we will extend an exclusive invitation to unite as a community by securing tickets to experience SUFFS live on Broadway.

​Let's continue championing and amplifying narratives and projects led by women. Together, we can make a real difference. 

_{MONDAY 6/3}

[NYC] ​Fintech Is Femme Founders Summit NY #TechWeek

Building on the success of our SOLD OUT New York Fintech Week Leadership Summit, Fintech Is Femme is excited to invite you June 3 to our Fintech Is Femme Founders Summit—Building A Resilient Future.

​Part of New York Tech Week, join us at Rise Created by Barclays for a full-day summit centered around the Fintech Founder Experience. Enjoy panel discussions, fireside chats, and founder spotlights that provide the blueprints and tactics designed to help you build a resilient organization in this uncertain economy.

​After the afternoon content sessions, we'll close the evening with our unforgettable Evening of Storytelling— a one-hour intimate session during which industry leaders like Sallie Krawcheck, Lule Demmissie, Brandis DiSimone, Sarah Kirschbaum Levy, Laura Lucas, Margaret Hartigan, Cleve Mesidor, Elise Brown, Liza Landsman, and many more have given exclusive insight into their leadership.

_FINTUNES

🎵 Doja Cat - WYM Freestyle

This week, I am completely indulging in Doja Cat's music. She happens to be one of my favorite artists, and I have been listening to both Scarlet and Scarlet 2 nonstop. There is something very empowering about her aggressive flow and her lyrics resonate with me so much as she says all the things I know we are all thinking.

It's time to get hyped for the weekend!

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

Love,

Nicole

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