Financial Services

Mounting consumer pressure for faster, seamless, cheaper and more secure digital payments will press companies to collaborate and move quickly in order to keep up. This will also fuel consolidation in the industry. The latest development is the global fund Hellman & Friedman, which is fronting an investor group, bidding to acquire the Nordic payment system provider NETS for $5.1bn. Hellman & Friedman wants to use the NETS platform for European consolidation of the payment service industry and subsequent expansion into e-commerce.

Russia’s Central Bank announced the launch of a financial rehabilitation program for Otkritie Group, the country’s largest private financial institution. According to Russian monetary authority, Otkritie requires a significant capital increase and extensive measures to improve its financial health. As a result of the process, Russia’s Central Bank may take up to 75% equity position in the group.

Banks are exploring opportunities for IT to increase their range of services and value proposition. There are plans, too, to develop a legal chat-bot and other initiatives in the high-tech area. M&A opportunities may arise for smaller IT companies that develop FinTech solutions that can be “plugged in” to larger corporates.

Central banks and governments continue to voice their views on Bitcoin and other cryptocurrencies, which has resulted in prices becoming even more volatile than usual. One example is the recent ban imposed by Chinese authorities on initial coin offerings in the country, which led to a dramatic drop in Bitcoin prices and put a question mark on the future of a Chinese blockchain-based economy.