$7.16 Trillion In Uninsured Deposits In US Banks At Risk Of No Federal Protection
Weekly news up to Monday, 12th of August 2024.
👀 NEWS HIGHLIGHT
JPMorgan Chase has rolled out a generative artificial intelligence assistant to tens of thousands of its employees in recent weeks, the initial phase of a broader plan to inject the technology throughout the sprawling financial giant.
The program, called LLM Suite, is already available to more than 60,000 employees, helping them with tasks like writing emails and reports. The software is expected to eventually be as ubiquitous within the bank as the videoconferencing program Zoom, people with knowledge of the plans told CNBC.
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🔦 DIGITAL BANKING HIGHLIGHTS
⭐️ Bunq’s boss on the regulatory headaches stifling his Irish mortgage ambitions.
⭐️ $7.16 Trillion in Uninsured Deposits in US Banks at Risk of No Federal Protection.
⭐️ Hong Kong's Mox Bank moves into crypto investing.
⭐️ Cogo integrates with SaaScada.
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🌎 REGIONAL HIGHLIGHTS
UK 🇬🇧
Banking and Financial Services taskforce delivers SME action plan to boost UK economic growth. The taskforce, formed in April, chaired by the CFIT and supported by an OBL secretariat, has found that increasing access to high-quality data will enable SMEs to expand and receive funding that will enable them to grow and scale.
Monzo announces that it has surpassed 10 million personal customers in the UK. The milestone follows Monzo’s first full year of profitability, a bumper funding round and multiple product announcements. Monzo now serves more than 10m personal customers - 1 in 5 adults in the UK - and more than 450,000 business customers in the UK.
London unicorn Thought Machine cuts losses by a quarter as IPO remains long-term goal. Thought Machine has cut its annual losses by a quarter to £63m in 2023 while new deals boosted revenues to £48m. The London-based FinTech reported that pre-tax losses were reduced from £84m in 2022 to £63m in 2023.
Google integrates GoHenry into smartwatch for kids. The collaboration advances Google's Tap to Pay capabilities in its Fitbit Ace LTE devices and enables kids under 13 years old to use a smartwatch to spend their own money safely and responsibly in the digital world.
EUROPE 🇪🇺
Revolut now has 1.5m users in Hungary - out of a 9.5m population. It also has just under 7000 business clients - up 56% YoY. Revolut plans to celebrate it together with its customers during this year’s edition of Sziget Festival.
France doesn’t have a consumer neobank. That might be about to change. With both French legacy banks and overseas neobanks competing, the race to become the go-to consumer neobank in France is heating up.
Tonik Bank is now in Cebu. This move underscores Tonik's vision for financial inclusivity, offering accessible banking solutions to more Filipinos. Now, customers in Cebu can access Tonik's full range of products and services.
ClearBank bags Dutch banking licence and expands to Europe. The new banking licence allows ClearBank to meet growing client demand by offering Euro accounts, payments, and access to major European payment systems, alongside its fully licensed banking services and advanced technology platforms. This new European company is expected to recruit over 60 new members of staff in the next five years.
USA 🇺🇸
JPMorgan Chase is considering taking legal action against the Consumer Financial Protection Bureau (CFPB) over an ongoing probe into the abuse of Zelle payments by scammers. In its recently released financial statements, JPMorgan notes the ongoing inquiries by the CFPB into the issues raised.
Mbanq launches new white-label mobile digital banking apps. These customizable apps are designed to meet the needs of traditional banks, neobanks, credit unions, FinTech platforms, and non-financial brands, offering a quick to deploy and cost-effective solution for digital banking.
NCR Voyix enters definitive agreement to sell digital banking to Veritas Capital for $2.45 billion purchase price. The transaction has been approved by NCR Voyix’s Board of Directors and is expected to close by year-end, subject to customary closing conditions, including regulatory approvals.
A US Senate investigation is shedding light on just how often America’s big banks refuse to reimburse victims of fraud. The Permanent Subcommittee on Investigations says JPMorgan Chase, Wells Fargo and Bank of America collectively refused to reimburse $880 million in Zelle transactions that customers reported as fraud between 2021 and 2023.
Marqeta signs five-year deal with Varo Bank to become exclusive issuer processor in the US. This partnership with Marqeta enables Varo to offer cutting-edge card issuing technology, giving their customers enhanced ability to view and manage their transactions efficiently.
Totem, a neobank designed to serve Native American communities, is shutting down due to funding difficulties. Despite its mission to provide financial services to an underserved population, Totem faced insurmountable financial challenges that led to this decision.
Arizona-based Vantage West Credit Union has introduced a new digital banking start-up designed for freelancers, HUSTL Financial. With this, HUSTL supports a wide array of banking services, including high-yield savings and interest-earning checking accounts, and certificates of deposit (CDs).
Greenlight teams up with Google Wallet to bring financial independence to New Kids Smartwatch. From now on, Greenlight’s debit card can be seamlessly added to the Google Fitbit Ace LTE so kids can learn to spend wisely and safely tap to pay on the go with their smartwatch.
BMG Money and WebBank team to offer employment-based loans. The partnership aims to broaden financial inclusion for employees and retirees with limited access to socially responsible loan programs, the companies said in an Aug. 6 news release.
FIS sees record sign-Ups for core banking products. FIS says it is on pace to have a record year for sign-ups to its core banking offering. It’s a trend driven by “competitive takeaways” and greater traction in the community banking sector, Stephanie Ferris, CEO of the financial services technology provider company.
Chime partners with NCR Atleos to expand brand reach across the United States. Atleos' Allpoint Network has provided secure, fee-free ATM access for Chime members since 2021. Today, Chime offers access to over 50,000 fee-free ATMs through Allpoint. Starting in August, Atleos will begin branding.
The middleware-or-direct debate persists in the banking-as-a-service space. Two new clients of Unit, Lincoln Savings Bank and Vantage Bank, believe these layers of technology help them scale their programs and manage risk efficiently.
LATAM
Ualá, reached 6 Million customers in Argentina, according to founder and CEO Pierpaolo Barbieri on Linkedin on Friday. That means more than 20% of the country uses Ualá.
ASIA
Revolut is coming to Dubai. Here's what you should know.
Revolut has launched Revolut Business in Singapore, first market in Asia. Businesses will get full financial control with corporate cards, custom spending rules and automated accounting on the B2B payments platform, says Revolut.
The GCC region’s banking sector has undergone profound changes as the proliferation of innovative technologies, shifting customer expectations, and disruptive forces propel the financial services industry forward. Here is how neobanks are transforming GCC’s banking landscape.
HD Bank launches Vikki Digital Bank in Vietnam powered by Thought Machine’s Vault Core. Vietnamese commercial bank HD Bank has leveraged its existing relationship with core banking vendor Thought Machine to launch Vikki Digital Bank.
BSP to allow up to ten digital banks in the Philippines from 2025. This move aims to leverage the benefits of digital banks while managing associated risks. The new decision will permit four additional licenses, available to both new applicants and existing banks seeking conversion.
Tencent offloads stake in British challenger bank. Chinese Tech titan Tencent has cashed in its stake in the British neobank Tide as part of a retreat from international investments. Tencent has offloaded its shares to an unknown buyer or buyers.
AUSTRALIA 🇦🇺
Australia moves one step closer to roll out of Confirmation of Payee. Australian Payments Plus (AP+) and the Australian Banking Association (ABA) have completed the design specs for a new national Confirmation of Payee service, providing another layer of protection against scammers.