Digital Banking Weekly | 2021 #17
Hi, there!
What does PYMNTS monthly ranking of digital banking apps say about the leading challenger in the industry?
For one thing, notice the preponderance of tied scores. It illuminates the fierce competition between apps and the challenger banks who field them, as consumers push on through the pandemic, trying to make better financial choices, starting with smartphone banking.
Furthermore, tied at No. 1 are Chime and Nubank, with Revolut also up one spot to No. 2.
Much has changed in a month.
👉 Learn more here.
PODCAST
The podcast recommendation of the week belongs to EY’s FinTech Beyond Borders, and their latest episode, focused on how new business models have emerged since PSD2 regulation has been implemented.
Hosted by EY and featuring panelists Davy Kestens, CEO of Cake; Cédric Neve, CEO of Digiteal; and Guillaume Haustrate, Go-to-market Manager Belux Digital Banking & Open Banking at Worldline.
👉 Listen here.
THE CARD COLLECTION
The Unifi Premier credit card has been launched by Unifimoney, the digital money management platform.
The new credit card offers customers a unique rewards option as they are given the choice to redeem them as Bitcoin, Gold or Equity.
👉 Read more here.
NOW, ON TO THE SUMMARY OF LAST WEEK'S DIGITAL BANKING SPACE
NEWS HIGHLIGHTS
Bloomberg interviewed Nick Storonsky, CEO of Revolut, about the impact of the pandemic on the company and the future ahead as it applies for a US banking license.
Revolut's revenue at least tripled during the pandemic. Storonsky, also said that an IPO is not a priority for the company.
👉 Watch the full interview here.
INDUSTRY HIGHLIGHTS
⭐️ Novus, a smart banking app that encourages sustainable living is releasing a beta product in the coming weeks to start testing with early users before launching to the wider public this summer. Link here.
⭐️ Earthbanc has partnered with Swedbank Lithuania to pilot the delivery of carbon and climate reporting for corporate and SME banking customers, which can open the door to sustainable finance opportunities. Link here.
⭐️ Jimmy Donaldson (aka MrBeast) has signed an exclusive, long-term content creation deal with fintech company Current–and has also become one of its investors. Link here.
UNITED KINGDOM
One of the frustrations with investing in Bitcoin through Revolut has long been its insistence that holdings remain tied to your account, meaning you can only buy and sell via Revolut’s app. Link here.
Tred, one of the latest o enter the eco-friendly banking scene, raised £1 million from more than 1,000 investors on Crowdcube last week. Link here.
Starling Bank maintained its hold in the final quarter of last year as one of the most switched-to UK banks of 2020. Link here.
Thought Machine has integrated Wise Ltd.'s international money transfer platform into its core banking engine, Vault. Link here.
What is abundantly clear about TS Anil, global chief executive of Monzo Bank, is his pride in the UK challenger bank and its distinctive culture. Link here.
EUROPE
Vivid Money has raised €60million in a Series B funding round led by Greenoaks Capital and joined by existing investor Ribbit Capital. The round gives Vivid, which was founded in 2019 by Artem Yamanov and Alexander Emeshev a €360 million valuation. Link here.
Viva Wallet has secured additional financing of $80 million from several technology and financial services investors, including Tencent, the European Bank for Reconstruction and Development (EBRD) and Breyer Capital. Link here.
Questions over returning to the office seem a distant thought for bunq as it looks to put down roots in Cologne, Germany. Link here.
Switzerland’s first fintech offering borderless multi-currency accounts to digital businesses will be delivered later this year. Klarpay AG is among the first fintechs in the country to receive the FINMA authorisation under the Swiss Federal Banking Act Article 1b. Link here.
US
Current, a digital banking start-up that has gained momentum during the pandemic, has tripled its valuation to $2.2 billion just five months after its previous fundraising round. Link here.
Also, Current added crypto to product roadmap after a $ 220 million fund increase. Link here.
Cheese announced its partnership with Dosh. As a fast-growing cash back platform, Dosh provides Cheese customers the opportunity to earn cash back on thousands of local and national brands. Link here.
Step, the new modern-day financial services company built for teens and families, today announced a $100 million Series C round of funding. Link here.
Greenlight Financial Technology has raised a $260 million Series D at a valuation of $2.3 billion, nearly doubling the unicorn valuation it received in a $215 million fundraise just last September. Link here.
Till Financial describes itself as a collaborative family financial tool that aims to empower kids to become smarter spenders. It has just raised $5 million to help it advance on that goal. Link here.
Locality Bank has chosen Nymbus’ Grow model to launch a new community bank for small and medium-sized enterprises (SMEs) in South Florida, US. Link here
CANADA
Revolut says the company intends to return to Canada next year, after leaving the Canadian market in March. Link here.
LATAM
Nequi is the first neobank in Colombia. It was born in the innovation laboratory of Bancolombia, one of the most solid financial entities in the country. Link here.
Brazilian digital bank Nubank has initiated preparations for a U.S. stock market listing that could come as early as this year, according to people familiar with the matter. Link here.
ASIA
Mox Bank expects to double its customer base this year having eclipsed 100,000 account holders in just eight months since its official debut. Link here.
AUSTRALIA
Ascenda unveiled its disruptive launch of Virgin Money Australia’s much anticipated digital bank loyalty programme. Link here.
Marqeta, Inc has picked Melbourne as its Asia-Pacific headquarters, hiring a country manager and a handful of local staff ahead of a slated $US10 billion float later this year. Link here.
AFRICA
Nedbank, working with Mastercard and South African fintech player UKheshe Technologies, has launched the ability for banking clients to make payments to businesses in Facebook-owned messaging platform WhatsApp. Link here.
MOVERS AND SHAKERS:
Varo Bank, the first all-digital nationally chartered bank in the US, announced three new appointments to its executive leadership team, including Shishir Singhania as Chief Lending Officer, Jose (Pepe) Porrata as Chief Operations Officer, and Carolyn Feinstein as Chief Marketing, Growth, and Design Officer. Link here.
Banking Circle, the tech-led licenced bank supporting the cross border flows of Payments businesses and Banks, has announced that Mahir Zaimoglu is joining senior management to, among other areas, assist with the strategic review of monetization options. Link here.
Before 2020, I used to travel around 50% of the time to all kinds of events and meet people in person all over the globe. I attended several FinTech events and had a great time networking. I'll still refer to 2020 as a "Virtual Year" when I reflect on it.
Sometimes I find myself really missing the hustle and bustle of physical events and the kind of networking that only a face-to-face meeting can provide.
👉 Read more here.
Sponsored Content: Fintech Meetup cuts straight to the most important part of an event: building connections. Sign up and meet with 1,000+ other knowledgeable & influential industry professionals.
This ends my weekly digital banking newsletter. Thank you for reading to the end! If you liked it, I invite you to like, share and/or leave a comment below. You may also subscribe here.
Let me know if there are any questions or news/insights worth mentioning in next week's newsletter. Until the next!
Regards,
Marcel van Oost