REPORT
The Latino market offers a $155 billion opportunity for U.S. banks according to the latest Mckinsey report.
Financial-services revenues from Latinos may grow by up to $93 billion by 2030. To get more of that market, institutions would need to tailor their offerings.
👀 NEWS HIGHLIGHT
ANZ announced it has become the first major bank to go live with a natively built, API-enabled, PayTo service for Billers. The first successful transaction on the service was completed with the Australian Bond Exchange (ABE) on 13 December, 2023.
ANZ’s PayTo initiation service will allow businesses to send a payment agreement (a request to debit) to their customers via digital banking platforms. The biller’s customers can then review and accept the payment agreement, providing authority to the biller to collect the payment. The payment agreement can be one-off or recurring.
📰 ARTICLE
The European financial sector stands on the brink of a major transformation. The Banking-as-a-Service (BaaS) model could unlock a staggering €100 billion opportunity, reshaping how consumers and businesses interact with financial services.
BaaS enables companies, from startups to established platforms, to incorporate traditional banking services like accounts, cards, and loans into their products.
This integration allows end clients to manage their finances seamlessly through non-banking platforms, deepening the brand's engagement with customers.
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Neobanks are delivering innovative, digital-only services and giving millions more customers access to banking.
Over the past few years, the market has been revolutionised by a new generation of independent disruptors known as neobanks, who are delivering innovative, digital-only services and giving millions more customers access to banking.
🧐 ANALYSIS
The digital banking sector in 2023 is experiencing a notable shift in its merger and acquisition (M&A) dynamics, with a decrease in the number of deals compared to the bustling activity of 2022. This year has ushered in a more strategic and cautious approach to M&A, this change reflects a complex interplay of economic factors, and evolving market conditions within the industry.
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🔦 DIGITAL BANKING HIGHLIGHTS
⭐️ ABN AMRO Bank N.V. acquires neobroker BUX after cost-cutting drive.
⭐️ Citi shuts muni business that once was envy of rivals.
⭐️ Lemfi and ClearBank partnership provided migrants with 37,000 virtual accounts carrying out 550k transactions/month.
⭐️ Former BigPay, Monzo, and VP Bank execs launch Pave Bank with $5.2M seed funding round.
🌎 REGIONAL HIGHLIGHTS
UK 🇬🇧
UK's Metro Bank experienced widespread outrage last Thursday, rendering online services and mobile apps inaccessible. Thousands of customers left without account access. On a different note, the bank has announced Board changes after recent resignations.
Raiffeisen Bank International, operating across 12 countries, has all the apparent challenges and requirements for data sharing across applications, platforms, and governments.
EUROPE 🇪🇺
Portuguese lender Novo Banco is exploring a potential tie-up in Portugal with Madrid-based consumer finance provider WiZink, two sources familiar with the matter told Reuters.
Paysera bank opens in Georgia. The company is poised to provide a diverse range of financial services to the local community.
The lack of alternatives from banks in Spain has led Revolut’s Flexible Account to reach €350 million invested. In fact, Spain has led the way in the adoption of this product.
Deutsche Bank forms stablecoin joint venture company. The new venture, AllUnity, regulated by BaFin, Germany’s financial supervisory authority, plans to launch within the next 18 months.
Nebeus unveils nomad accounts to empower users across the globe, providing them with the tools they need to get paid and monetize their skills and expertise not dependent on their location.
USA 🇺🇸
MoneyLion reaches settlement with Colorado over membership fee requirement. Last month, MoneyLion reached an agreement with the administrator of Colorado’s Uniform Consumer Credit Code.
Mercury has filed an emergency lawsuit against Synapse seeking a temporary protective order, a right to attach, and a writ of attachment as it seeks to recover some $30 million from the embattled company.
Neobank Dave launches DaveGPT chatbot and is exploring multiple uses of the technology. The challenger bank expects chatbot to resolve up to 75% of customer inquiries.
Elemi Bank applies to FDIC and seeks $25m in capital to launch corporate offering. However, it’s not currently known when or from where it will attempt to attract such funding.
Revolut U.S. doesn't rule out return to Crypto services. Revolut U.S. CEO Sid Jajodia says the company might one day revive its crypto trading, having shut down the service this year.
E-commerce lender SellersFi secures Citi-led credit facility. With the new funding secured, SellersFi plans to launch additional financial tools in 2024.
Hyperplane wants to bring AI to banks. The startup, focused on building foundation models for banks to predict customer behavior, is emerging from stealth.
CANADA 🇨🇦
TD Bank Group and Plaid enter into North American data-access agreement that will enable TD customers in Canada and the U.S. to more securely connect to and share financial data with Plaid's data network.
Synctera launches embedded banking platform in Canada. The platform will launch with bank account, card, and electronic fund transfer functionalities, with more features like bill payment planned for the future
LATAM
Nubank expands its investment product portfolio in the app with real estate and agriculture credit bonds. The company's customers in Brazil now have two new alternatives to invest in fixed-income.
ASIA
Maya launches stock trading service. The digital bank has launched Maya Stocks, the first retail investing service in the Philippines integrated in a digital bank app.
Lesha Bank partners with Temenos. The core banking platform of Temenos is expected to enable Lesha Bank to increase its speed to market Shari’a-compliant investment capabilities.
Toss Bank just reached profitability. The company attributed the swing to profitability to increased interest revenue, which rose to 391.8 billion won in the third quarter.
AUSTRALIA 🇦🇺
Neobank Volt enters solvent liquidation as wind down continues. Numerous affiliates have entered solvent liquidation, with expectations that all creditors will be paid in full during a year-long wind-down process.
MIDDLE EAST
AstroLabs announces strategic collaboration with Wio Bank PJSC to facilitate business expansion in the Gulf through simplified banking processes.
MOVERS AND SHAKERS
Starling alum Megan Cooper joins ClearBank as CPO from Barclays. In her new role, Cooper will lead ClearBank’s product management team and develop its product strategy.