Citi analysts foresee fintech entering a “dynamic new phase” in 2025, building on Q4 2024 improvements after a year of stabilization. Despite fluctuations in the five years since the pandemic began, the sector’s core drivers—digitization, modernization, and enablement—remain robust. Here are the 10 key developments Citi analysts, led by Andrew Schmidt, predict:
Citi’s comprehensive analysis highlights opportunities and challenges shaping the fintech sector in 2025, underscoring its resilience and potential for innovation.
- Tyme Group has successfully raised US$250 million, the largest fintech raise this year in South-East Asia, valuing the business at US$1.5 billion
- Tyme welcomes strategic investor Nubank, one of the world’s largest digital financial service platforms, to fuel next phase of growth in South-East Asia
- With established operations in South Africa and Philippines, Tyme now gears up for expansion into Vietnam and Indonesia
Singapore – 17 December 2024 – Tyme Group, the multi-country digital banking group head-quartered in Singapore with 15 million customers in Africa and South-East Asia, today announced that Nubank, has joined its shareholder base through a strategic investment during its Series D Capital Raise. Nubank is one of the world’s largest financial services platforms with over 110 million customers.
Having completed its latest investment round, Tyme Group has now also firmly achieved unicorn status after securing a total of US$250 million in funding for a total valuation of US$1.5 billion. Tyme’s oversubscribed series D capital raise was led by Nubank, which invested US$150 million, with M&G’s Catalyst subscribing for US$50 million. Existing shareholders are investing a further US$50 million. Tyme’s investors includes the Founders, African Rainbow Capital, The Ethos AI Fund, Apis Growth Fund II (‘Apis’), Tencent, The Gokongwei Group, British International Investment (BII), Norrsken 22, Blue Earth and Lavender Hill Capital Partners.
The Nubank partnership solidifies Tyme’s position within digital banking and sets the stage for the latter’s growth in Southeast Asia. This partnership brings significant expertise and resources to Tyme, positioning the company well to expand its market presence.
“Nubank transformed financial services in Brazil. We are excited by the value that Nubank’s thought partnership and advice can bring to Tyme particularly in areas such as data analytics, credit risk management, product development and marketing – levers we believe are key to achieving leadership in our markets. This is a moment of great significance for Tyme,” said Coen Jonker, Co-Founder and CEO of Tyme Group.
David Vélez, founder and CEO of Nubank, added: “Since the beginning of Nubank, we have believed that the future of financial services globally is of digitally-native companies. We have met dozens of teams across different geographies, and we think that Tyme Group is extremely well-positioned to be a digital bank leader in Africa and Southeast Asia. We are excited to work with Tyme to share many of our learnings of scaling this model to hundreds of millions of customers.”
Praveg Patil, Head of Asia Pacific, Impact & Private Equity at M&G, commented: “Investing in innovative companies like Tyme Group is essential for driving financial inclusion in underserved markets. M&G’s Catalyst is able to invest in transformative initiatives that create lasting social impact. Through this investment we are addressing the needs of communities that have traditionally been excluded from the financial system to build a more inclusive financial ecosystem.”
Commenting on the Nubank partnership, Patrice Motsepe, Chairperson of major shareholder African Rainbow Capital, said: “As the long-term strategic shareholder in Tyme, we enthusiastically welcome the partnership with leading global digital bank, Nubank, as we are convinced this will lead to an even higher and significantly accelerated growth trajectory for the multi-country Tyme Group.”
Gunjan Banerji, lead writer for live markets coverage at The Wall Street Journal, shares insights on Squawk Box about the surge in high-risk stock market trades, the growing popularity of zero-day options and cryptocurrency trading, and the potential negative impact on investors’ well-being.
In a high-stakes legal battle, the Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart Inc. and its fintech partner, Branch Messenger Inc., alleging they illegally opened bank accounts for over a million delivery drivers without their consent.
The CFPB claims Walmart’s Spark Driver program forced delivery drivers to accept costly deposit accounts with Branch Messenger under the threat of termination. These accounts were allegedly opened using drivers’ sensitive personal information, such as Social Security numbers, without proper consent.
Drivers faced fees exceeding $10 million to instantly transfer their earnings to a personal account, despite being misled with promises of “instant access” to their pay. In reality, many drivers encountered delays in accessing their funds, according to the lawsuit.
The CFPB is seeking to halt these practices, secure compensation for affected drivers, and impose civil penalties on Walmart and Branch. CFPB Director Rohit Chopra criticized the companies for their conduct, stating, “Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers.”
While Walmart has not commented on the allegations, Branch has issued a strong rebuttal, calling the lawsuit a misrepresentation of the facts and accusing the CFPB of rushing to litigation without proper engagement.
“Branch stands behind its model and services and will defend this action vigorously,” the company said in a statement, arguing that their platform provides valuable services to Walmart and its drivers.
The lawsuit comes as the CFPB steps up its enforcement actions in the final months of the Biden administration. This case follows recent lawsuits against major banks over Zelle fraud and the introduction of new overdraft fee caps.
Walmart’s Spark delivery program, launched in 2018, relies on independent contractors to deliver online orders. With e-commerce sales rising over 20% in the latest quarter, the lawsuit has sparked concerns over Walmart’s treatment of its gig workers. The controversy has also impacted Walmart’s stock, which fell 3.2% following the announcement.
The CFPB aims to secure justice for affected drivers while shining a spotlight on the practices of fintech-bank partnerships. As the case unfolds, it will test the boundaries of how gig economy workers are treated and highlight the regulatory scrutiny faced by fintech platforms.
Stay tuned for updates as this case develops, shedding light on the evolving relationship between fintech, major corporations, and labor practices.
Looking Ahead: What Are the Top Trends for Fintech in 2025
In this episode of Deciphered, Adam Davis, an expert associate partner at Bain & Company, and Jeff Tijssen, Bain’s partner and global head of Fintech, sit down with an all-star Bain panel featuring Karim Ahmad, expert partner; Mike Smith, expert partner; and Tevia Segovia, partner. Together, they delve into the key Fintech trends expected to shape 2025.