Global Finance Shifts from Sovereign Cloud to Fintech Expansion

Sovereign as a Cloud?

How sovereign is a cloud? AWS today is advertising its brand-new
sovereign cloud for Europe, which will include ‘Cloud infrastructure built on
AWS's sovereign-by-design approach, delivering cutting-edge data protection
features and controls, dedicated subsidiaries, and EU-resident personnel.’
We’ll expect to shortly hear something on the matter from Microsoft and
Google/Alphabet. For many years, big tech companies in the US have lobbied
against data sovereignty, preferring to drive users towards US data centres. In
response, European leaders in particular have been digging in over US tech
players, and pushing for independence on matters financial and digital. Digital
data is a bit like the US dollar: if you use the dollar, you can find yourself
under US jurisdiction. The US CLOUD Act allows US law enforcement to seize the
data of non-US citizens if they are using the services of US digital companies,
driving the EU to consider a ‘Eurostack’ of data centres and digital services. As
you’ll hear this week, geo-political strife will be the top theme at Davos. Hey,
you, get off of my cloud…

US banks stay optimistic on strong 2025 growth

US banks increased their lending in the last quarter of
2025, with bank analysts optimistic that loans will continue to grow this year.
“‘We've seen growth in all of the consumer borrowing categories,’ Bank of
America Chief Financial Officer Alastair Borthwick told reporters on a
conference call, reports Reuters. ‘That's helped us in Q4, but generally, the
story in 2025 was more of a commercial borrowing story ... our clients in a
growing economy have continued to invest to support their businesses.’ The U.S.
economy and American consumer have remained resilient despite President Donald
Trump's sweeping import tariffs, thanks in part to the artificial intelligence
boom and Federal Reserve interest-rate cuts. The market expects two more cuts
this year.” Will the AI boom hold? Analysts have noted that the big tech
players have done well under the first year of the Trump administration, with
AI investment the main driver of the US economy.

More Brazilian fintechs head for New York IPOs

It’s been a few years since a New York IPO by a Brazilian
finance business: the last one was Nubank in 2021. Now come two at once: PicPay
and Agibank. “Founded in 2012, PicPay is one of the biggest digital banks in ⁠Brazil
and had 42 million active consumers as �€�of
September 30. PicPay started its operations with payments �€�and QR codes and has since
evolved into a digital bank offering financial products and services such as
credit cards, insurance ‍and buy now, pay ⁠later. Latin America-focused
growth equity firm Bicycle Capital and its affiliated entities plan to purchase
$75 million worth of PicPay shares in the offering,” reports Reuters. The
digital bank hopes to raise $430 million at a valuation of $2.65 billion. PicPay
is backed by J&F Investimentos, owned by Brazilian billionaire brothers
Wesley and Joesley Batista. The Batista family founded JBS, which is the
world’s largest meat-packing business. “Founded in 1999 by Marciano Testa as a
banking correspondent called Agiplan in Caxias do Sul, the company operates
1,101 retail locations called Smart Hubs across 723 Brazilian cities with a
combined population of more than 146 million,” writes Investing.com. “These
locations are strategically positioned in high-traffic areas, often near
competitors’ bank branches to attract customers frustrated with long wait times
and poor service.” Agibank is looking to raise $1 billion, and was last valued
at $1.7 billion.

Nedbank eyes NCBA acquisition for scale in East Africa

Nedbank is bidding to acquire a majority stake in Kenya’s
NCBA, as it seeks to expands its presence in East Africa. “Nedbank has
submitted an offer to acquire roughly 66% of NCBA Group, one of East Africa’s
leading financial services groups for around R1.9 billion based on the Nedbank
issue price of R250.00 per share,” reports MSN. NCBA was established in
2019 through a merger of NIC Group and Commercial Bank of Africa, and serves
more than 60 million customers through 122 branches. It also has a strong digital
banking and digital lending platform. Kenya has been a major target of African
banks and investors, with Access Bank last year gaining control of National
Bank of Kenya from KCB Group. “By combining NCBA’s substantial local presence
and Nedbank’s capital base, expertise and enduring commitment to Africa, we see
a compelling platform for sustainable growth in the region,” said Nedbank CEO
Jason Quinn. In the last quarter of 2025, Nedbank sold its 21 per cent stake in
Ecobank Transnational Limited, citing its plan to focus on south and east
Africa. Around the same time, it acquired iKhokha, the mobile POS and digital
payments service aimed at small and medium businesses, for which it paid $94
million.