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Digital Banking | 2023 #26
Weekly news up to Monday, 26th of June 2023
This third edition of The Banking Battleground presents the findings of CCG Catalyst’s 2023 US Banking Study and explores how the industry is thinking about what comes next.
In 2022, European banks saw increased profitability in anticipation of higher interest rates in 2023. However, challenges remain compared to pre-2008 levels.
C-Innovation research shows that digital banks have identified lending as a crucial source of income, expanding their lending activities compared to pre-pandemic times.
👀 NEWS HIGHLIGHT
Revolut said it was launching a streamlined version of its app in Sri Lanka, Chile, Ecuador, Azerbaijan and Oman, allowing customers to transfer money to over 50 countries using more than 30 currencies.
The company said there would be no fee for customers transferring to other Revolut customers, while transfers to non-Revolut accounts would incur a 1% fee, with a $1 minimum, in the five new countries.
😎 SPONSORED CONTENT
Lenders can now more easily embed Plaid Link into their user journey so that they can start using cash flow data in underwriting. With cash flow underwriting becoming the industry standard, our goal is to make it as easy as possible for lenders to access real-time cash flow data through Plaid.
A document from the Federal Deposit Insurance Corp., which the agency said it mistakenly released unredacted in response to a Bloomberg News Freedom of Information Act request, provides one of the most detailed glimpses yet into the bank’s big customers.
BaaS offerings are on the rise and the term is widely used. However, there are essential differences between licenses and resulting capabilities.
Millions of people in the UK already use at least one of the challenger banks. If your current account already offers similarly-priced transfers, what's the incentive to switch?
We all know Peter Ramsey for his famous UX case studies and the time has come to put Wise under the microscope.
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🔦 DIGITAL BANKING HIGHLIGHTS
⭐️ Banked has signed a new partnership with incentive programmes provider Tillo to develop its customer retention strategy in place.
🌎 REGIONAL HIGHLIGHTS
Bankable has acquired of Arex Markets, giving the combined company the ability to embed credit and working capital into the payment flows of established neobanks, multinational brands and fintech platforms.
Wise launches instant access savings account paying 4.12%. Wise Interest allows UK personal and business customers to use their cash balances, including pounds, US dollars and euros.
Compass acquired 100% of HeidiPay Switzerland AG from parent company HeidiPay. The acquisition will enable Compass to become a consumer credit operator in the Swiss market through HeidiPay Switzerland’s distribution licence.
Froda has partnered with Lunar and Visa to launch its card-based embedded lending solution for small businesses in Denmark.
Deutsche Bank has become the latest investment bank to announce its push into the crypto custody market.
The Bank of Lithuania revoked the licence of the electronic money institution UAB PAYRNET for serious, systematic and multiple violations of legal acts.
Bank of Italy, the Associazione Bancaria Italiana (ABI) has brought together a group of banks in a pilot program for a central bank digital currency (CBDC).
SVB Financial Group entered into an agreement to sell its investment banking business, SVB Securities, to a group led by Jeff Leerink, SVB Securities’ CEO and founder, and backed by funds managed by hedge fund firm The Baupost Group.
nCino Inc is exploring its options, including a potential sale, after attracting takeover interest from private equity firms.
Nubank completes all mandatory steps for the payment initiator status. Nubank can now perform the initiation of Pix payment transactions within the framework of Open Finance Brasil.
Hong Kong Monetary Authority (HKMA) is applying pressure on HSBC, Standard Chartered, and the Bank of China to consider accepting crypto exchanges as clients.
MUFG is partnering with JR East to allow customers to consult with their financial advisors from a booth in “Ekinaka” (literally, “inside the station”) as another move to eliminate restrictions imposed by the conventional format of branches.
SVB customers in Asia still stuck with outstanding loans. These customers had their deposits seized by the Federal Deposit Insurance Corp. (FDIC) and still have outstanding loans with First Citizens Bank.
SCBX announced its readiness to apply for a license to establish a virtual bank with South Korean digital bank KakaoBank.
The Bangko Sentral ng Pilipinas (BSP) intends to introduce further incentives to promote sustainable and green financing in the Philippines.
JPMorgan Chase & Co will be establishing its commercial bank in Singapore as part of its global expansion plans.
Nine25 set the benchmark for the rest of the Australian banking and financial services industry to follow by announcing the launch of the fastest transaction account opening in just 30 seconds.
MOVERS AND SHAKERS
If you are a fintech startup and have over 100 questions send me an email, maybe I can answer a few.