Digital Banking Weekly | 2021 #26
Hi, there! Welcome back to another Digital Banking Weekly Newsletter. In this newsletter, I cover all the major weekly news related to digital banking around the world. The newsletter begins with recommended articles, reports, podcasts, interviews, etc. I then cover the news highlights for that week before diving into a regional breakdown. Thank you for subscribing!
Around the globe, there are more than 1.6 billion unbanked adults, according to the World Bank. Without a doubt, financial exclusion undermines their quality of life and holds their nations’ economies back.
Most of us take basic access to financial services for granted. Thus, we fail to see how expensive financial exclusion really is. Access to financial services is a vital factor for coping with and escaping poverty.
But financial exclusion is costly not only for those directly affected: it impedes nations’ economic growth and development.
However, there are already signs that the COVID-19 pandemic could turn into a powerful booster of financial inclusion everywhere. Looking ahead, the challenge will be in reducing unequal access to digital infrastructures.
👉 Read more here.
PODCAST
The podcast recommendation of the week belongs to episode five of season 2 of Riding Unicorns.
A thrilling episode with guest Matthew Ford, a VC investor at Mouro Capital, which backs ambitious entrepreneurs and start-ups shaping the future of financial services.
Join them as they discuss the advantages of being a founder and operator before becoming an investor, what's next for FinTech and Matt picks some great guests for his virtual business lunch.
👉 Read more here.
MVO’S CARD COLLECTION
Customers of BBVA en México can now apply for a ‘blank’ biometric credit card that enables them to authenticate payments with their fingerprint.
The bank’s Smart Key card “does not have printed data, nor does it have payment limits,” BBVA explains.
👉 Read more here.
NOW, ON TO THE SUMMARY OF LAST WEEK'S DIGITAL BANKING SPACE
NEWS HIGHLIGHT
Los Angeles-based sustainability and financial services startup Aspiration has announced that Drake has joined a list of Robert Downey Jr., Leonardo DiCaprio and more as an investor of the company.
👉 Read more here.
INDUSTRY HIGHLIGHTS
⭐️ One of the most prominent UK challenger banks, Revolut, has added Polkadot (DOT) cryptocurrency trading to its app. Link here.
⭐️ Starling Bank, a digital bank, is supercharging its Kite debit card for children by giving users aged 6 to 16 access to the Starling app. Link here.
⭐️ American Express is marketing partnerships with Better and Rocket Mortgage by Quicken Loans for customers interested in home loans. Link here.
⭐️ The grand opening for rapper and activist Michael “Killer Mike” Render’s Greenwood banking platform has been postponed a second time, the company confirmed last week. Link here.
⭐️ Citi is planning to disrupt the local buy now, pay later (BNPL) players like Afterpay Ltd with the launch of its own offering in Australia. Link here.
⭐️ With the deadline for Malaysia’s digital banking license application being less than a day away, a majority of the players are surprisingly still coy about confirming their status. Here’s a list of aspirants we know so far:
👉 Read more here.
UNITED KINGDOM
Metro Bank has issued a teaser that more product expansion is on its way after eight months in which it pursued a lively growth strategy in specialist mortgages. Link here.
Following receipt of a provisional banking license in 2019, Capital International Bank has received the full Class banking license under the Alternative Banking Regime (ABR) from the Isle of Man’s Financial Services Authority. Link here.
Zopa says it’s on track to reach profitability by the end of the year, largely thanks to its popular lending products that have helped many get through the Covid-19 pandemic. Link here.
As the Financial Conduct Authority (FCA) recently confirmed that more than 2.3 million people in the UK own cryptocurrencies of some kind, it comes as no surprise that another company has been added to the regulator’s crypto-assets register, with London fintech app Mode Global Holdings becoming the fifth company to be added. Link here.
Revolut has prepared a surprise for customers on the occasion of Pride Month, which is the month of pride of the LGBT + community. Link here.
EUROPE
Starting on June 1st, Hamburg-based challenger bank Tomorrow, in conjunction with FinTech ecolytiq - Every transaction has an impact and Visa, began offering a new proposition within their banking app that shows customers carbon emission calculations alongside their bank transactions. Link here.
N26 announced the launch of N26 Installments, a new flexible payment feature that will offer eligible customers in Germany the option to split past purchases into installments. Link here.
Also, N26 plans to release its trading feature for the beginning of 2022, crypto trading should start at the end of this year. Link here.
Fibank Albania (First Investment Bank) continues to expand the options for its customers to make contactless payments at any time and through various means. Link here.
neon has raised five million CHF (£3.9 million) in a crowd investing drive that lasted less than an hour. Link here.
After the relaunch of Bitwala, Nuri receives a new round of financing.
The aim is now to address a broader target group. Link here.
With their acquisition plans, Solarisbank AG clearly sets itself apart from other neo-unicorns such as Trade Republic or Scalable Capital. Link here.
YAPEAL, which is based in Zurich, is a digital bank offering a full suite of services – and it will now offer international money transfers via the company Wise, which was formerly known as TransferWise. Link here.
Bank Zero faces the challenge of transitioning to banking operations while working from home. Link here.
Danske Bank in Northern Ireland has launched the UK’s first mortgage to be certified as carbon neutral by The Carbon Trust. Link here.
US
Karat Financial announced a $26 million Series A round led by Union Square Ventures with participation from GGV Capital and SignalFire. Link here.
Founded by LGBTQ+ entrepreneurs Rob Curtis (CEO), Billie Simmons, a trans woman (COO), and Paul Barnes-Hoggett (CTO), Daylight is announcing today that it has secured $5 million in a seed funding round. Link here.
Credit Sesame announced a new credit building technology through its digital banking service, Sesame Cash, that allows consumers to use their cash to establish and build credit quickly and rewards them with cash when they do. Link here.
NorthOne announced that it has officially eliminated all non-sufficient funds (NSF) and overdraft fees for all its current and future customers. Link here.
JPMorgan Chase & Co. has agreed to buy OpenInvest, a San Francisco-based start-up backed by Andreessen Horowitz and founded by former Bridgewater Associates employees. Link here.
CANADA
Visa Canada plans to help two Canadian banks provide installment payment options to card holders. Link here.
Equitable Bank announced the successful closing of an offering of an additional $150 million principal amount of 1.774% fixed rate deposit notes due September 21, 2023. Link here.
LATAM
Mexican billionaire Ricardo Salinas Pliego said on Sunday his banking business may begin using bitcoin, becoming the country’s first bank to start accepting the cryptocurrency. Salinas is the owner of the large Banco Azteca banking business. Link here.
JPMorgan Chase and C6 Bank announced that they have entered into a strategic agreement, whereby JPMorgan Chase will take a 40% ownership stake in the full-service Brazilian digital bank, subject to regulatory approvals. Link here.
AUSTRALIA
Aussie student-focused fintech QPay has secured $1.15 million through an equity crowdfunding campaign, as it ramps up to meet a global opportunity in the disrupted university sector. Link here.
Non-bank lender Nano Home Loans will launch with a promise to approve home loans charging a rock bottom 1.99 percent in less time than it takes to order an Uber. Link here.
Volt Bank has inked a deal with the nation's largest marketplace for university students, QPay, in a deal that Volt says will give it instant access to one in four (400,000) university students across the country. Link here.
For new partners Pelikin and Nium, FinTech plays a central role in the travel industry’s recovery, and it starts with the ability to issue travel cards that can be used around the world. Link here.
ASIA
Rizal Commercial Banking Corp. plans to set up a digital banking arm and ramp up tech investments after securing $93.9 million in fresh capital from Japan's Sumitomo Mitsui Banking Corp. Link here.
Grab confirms that it has applied for a digital banking license through a joint venture between Grab and Singtel as part of a consortium of other Malaysian investors. Link here.
Voyager Innovations, Inc., the Filipino technology firm behind popular payments app PayMaya Philippines, has raised US$167 million in funding to launch a digital bank. Link here.
Tide, the UK’s leading business financial platform, has selected India as its first international market, with a fully-fledged launch early next year. Tide announced that it will create over 1,000 jobs in India over the next five years. Link here.
Jitendra Gupta-led neo banking startup Jupiter has acquired EasyPlan, a financial saving app for individuals. This is the second acquisition by Jupiter after it took over Mitter.io in 2019. Link here.
MIDDLE EAST
Capital Bank Group has selected Codebase Technologies as it looks to launch a new digital bank in Jordan and Iraq. Link here.
The UAE Islamic fintech community has grown with the entry of a digital money service provider which recently secured a Fatwa for its new line of Shariah compliant services. Link here.
Zand plans to be the first fully independent digital bank in the UAE, with a remit to service both retail and corporate customers. Link here.
AFRICA
Neobanks operating in a credit-led model start by offering credit via cards or on an app and subsequently offer bank accounts as a gateway to other services. Nigerian FinTech startup FairMoney operates this model, and it is announcing a $42 million Series B raise to diversify its offerings and expand to “become the financial hub for its users.” Link here.
MOVERS AND SHAKERS:
Moneycorp has appointed global payments expert Francesco Giovanni Ghizzardi as its new Head of Payment Solutions. Link here.
Stash, the subscription platform empowering middle-class America to invest and build wealth, announced Adriel Lares as its new CFO. Link here.
Goldman Sachs seeks to fill two newly created roles within its Marcus direct bank to help to grow its buy now, pay later (BNPL) arm, per Insider. Link here.
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
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