Discover more from Marcel’s Digital Banking Newsletter
Digital Banking | 2023 #6
Weekly news up to Monday, 6th of February 2023
Ualá built a financial ecosystem through an app in 2017 for the underbanked and achieved unicorn🦄 status in 2021.
👉 Check this report by C-INNOVATION here
“The Enablers of Open Banking, Open Finance, and Open Data”
👉 See this FinTech report from The Paypers here
If we ask 10 people in the financial services industry about what the future of banking will look like and we will get 10 vastly different answers. The one thing they’ll agree on? That it’s become essential for financial institutions to offer customer-centric digital experiences that give their users the same level of engagement as the heavy hitters of hyper-personalization, like Apple, Spotify, and Meta.
But what is hyper-personalization, and why is it a key part of banking’s future?
👉Read all about it in this FinTech report by Backbase and Mambu here
Like every other VC-dependent, loss-making FinTech, Varo is in the midst of reorienting from “growth” to “profitability.” The company released a statement highlighting some of the progress it has made.
Why is the FinTech sector booming and how can Neobanks unlock profitable growth?
👉 Check this Neobanking in Latin America report by Jose M. Noriega, and Luis A. Sanchez from Simon-Kucher here
👀 NEWS HIGHLIGHT
JPMorgan Chase is planning to build on the success of its UK digital bank by introducing a similar outpost in Germany.
Eventually, Berlin is set to be the base for JPMorgan to push into more EU markets.
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What are consortiums, and why do banks create them?
Alex Johnson explains in his article "The past, present, and future of Big Bank Consortiums".
Open banking is creating exciting opportunities for fintechs to improve customer experiences and streamline outdated processes in the banking sector.
See this “Decoding the jargon: Open banking explained for fintechs” blog post by Klarna Kosma below 👇
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🔦 DIGITAL BANKING HIGHLIGHTS
⭐️ Enfuce bolstered its management team with pivotal senior appointments as it gears up for further rapid expansion in 2023.
⭐️ Zopa Ltd. completed a funding round of £75 million and is on the lookout for deals as early as this quarter.
⭐️ The Global Open Finance Index leverages insights gained from more than 400 Open Banking and Open Finance experts across 23 markets.
⭐️Ghana hits 200% growth in Africa for finance app installs.
⭐️ livi bank is continuing its development with the pilot launch of its wealth management service.
🌎 REGIONAL HIGHLIGHTS
Monzo Bank experienced record revenue growth in 2022, setting it on course to achieve annual profitability by the end of 2023.
TerraPay announced its partnership with Beyon Money.
Barclays is opening semi-permanent banking pods in locations with high footfall.
UK Treasury is on the hunt for a head of the central bank digital currency.
HSBC is looking to boost its expertise in the area, advertising for senior digital assets and tokenisation staffers.
Christopher Yankson, head of recruitment at Revolut anounced that the firm is already seeking to hire 1,700 staff.
Revolut has soft-launched crypto ‘staking’.
Paymentology joined forces with a cloud-native core banking platform 10x to provide pre-integrated credit and debit card issuing and processing.
Klarpay expands its global payment capabilities with 13 new dedicated currency accounts.
Papara announced that it has hit 15 million users – making it one of Europe’s biggest neobanks.
Twitter began applying for regulatory licenses across the US and designing the software required to introduce payments across the social media platform.
SoFi is reportedly laying off 65 members of staff from its mortgage division, around 5% of its 1,300-person workforce.
Fidelity National Information Services Inc. eliminated 2,600 staffers as new Chief Executive Officer Stephanie Ferris continues her strategic review of the financial-technology giant’s business.
Cash App launched a new feature that helps consumers with their savings.
Oxygen announced $20 million in Series B funding – led largely by return investors – and the appointment of David Rafalovsky as Chief Executive Officer.
Nubank dismissed 40 employees and closed its investment advice for individuals.
Nubank ended 2022 with 75 million customers worldwide, 70 million of which are from Brazil. So, in 2021, roxinho ended the year with 53.9 million customers.
Fiserv announced that its local operating entity has been granted a Major Payment Institution license by the Monetary Authority of Singapore.
Mizuho Bank is modernizing its legacy banking system for international operations with Oracle.
Alex.Bank has unveiled its new Term Deposit product, further bolstering its growing product portfolio.
Dubai Investments acquired a 9% equity stake in Monument Bank.
TymeBank beats digital and traditional bank competitors in transaction fees battle.
Kenya dropped charges of financial impropriety against Flutterwave.