Digital Banking Weekly | 2021 #29
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!
PODCAST
The Future of Banking Podcast is back with an insightful episode on “The Future of Regulation and Adoption of Cryptocurrency”. Podcast host, Kymberly Waldron (SkyParlour) sits down with Julian Sawyer (CEO of Bitstamp), Asen Kostadinov (Head of Strategy at Copper), Erica Stanford (CEO of the Crypto Curry Club), and Rene van Pelt (Founder and CEO of Catadesk), to discuss what the future looks like for crypto.
👉 Read more here. 👉 Listen here.
👉 Follow my Crypto News - LinkedIn Channel here.
Anirudh Singh, from the Wharton Fintech Podcast, sits down with Adam Green, CEO and co-founder of YieldX.
Adam Green is a technology innovator, founder and capital markets veteran. He is currently the CEO and co-Founder of YieldX, a breakthrough technology infrastructure that is reimagining fixed income.
👉 Read more here.
REPORT
A new report by Swiss digital banking tech provider Banking, Payments: Context (BPC) and the Dutch fintech consultancy firm Fincog, provides useful insights on the accelerated growth of the Fintech industry in LATAM.
Over the last few years, digital banking in Latin America (Latam) has experienced extraordinary growth on the back of changing customer needs, expanding technological penetration, and rapidly evolving regulatory standards.
In 2019 the number of customers surged 307.8%, from just 9 million in 2018 to 36.7 million. From 2019 to 2021, that number doubled, reaching 77 million in 2021.
👉 Read more here.
👉 Access the full report here.
ANALYSIS
According to global tech market advisory firm ABI Research, neo and challenger banks will continue on an impressive grow trajectory, with the user base for the top 57 neo and challenger banks expanding their number of accounts from 155 million in 2020 to 590.6 million in 2026.
"The global push in digital acceleration across a number of market verticals also applies to the financial services sector. Throughout the global pandemic, as banks and building societies closed branches and migrated their in-person staff to already burdened telephony services, the reliance on flexible banking and payments has been pushed to the fore," said Sam Gazeley, Digital Security Analyst at ABI Research.
👉 Read more here.
INTERVIEW
Isabel Woodford (Sifted) interviewed Monzo’s COO Sujata Bhatia and Monzo’s general counsel Stephanie Pagni about the bank’s product plans, profitability and going public.
“In lending, we’re very much looking at where the white space is and where we can offer really authentic value and fairness and transparency,” says Bhatia, who spent 16 years at American Express and can lend a wealth of credit experience.
So far, Monzo has rolled out overdrafts and fixed-interest loans of up to £15k. The next move should include business loans, along with more innovative products that Bhatia refers to as “contextual” (or highly flexible) loans.
👉 Read more here.
NOW, ON TO THE SUMMARY OF LAST WEEK'S DIGITAL BANKING SPACE
NEWS HIGHLIGHT
Starling Bank reported a sevenfold increase in revenue in the 16 months ending March 2021 as its lending soared, helping to cut losses in half.
Losses after tax totaled £23.3 million ($32 million) in the period, down from the £52.1 million Starling lost in its last annual accounts, which covered the 12 months up to Nov. 30.
Revenues, meanwhile, shot up 600% to £97.6 million from £14 million in its 2019 fiscal results.
👉 Read more here.
INDUSTRY HIGHLIGHTS
⭐️ Mastercard announced that it will join the Regional Alliance for the Digitalization of Women in Latin America and the Caribbean (LAC), a regional multi-stakeholder partnership under the leadership of the Ministry of Women and Gender Equality of Chile, supported by Mexico, Uruguay, Costa Rica, Panama, ECLAC, UN Women, and Microsoft. Link here.
⭐️ Visa announced it has signed a definitive agreement to acquire Currencycloud, a global platform that enables banks and FinTechs to provide innovative foreign exchange solutions for cross-border payments. Link here.
⭐️ Revolut is jumping into the travel industry. The London-based firm launched a new feature called Stays, which lets users book hotels and other accommodation through its app. Link here.
UNITED KINGDOM
Railsbank, an established global embedded finance solution provider, and Visa are joining forces to promote local Fintech services, with Railsbank becoming a Visa Ready Banking Identification Number (BIN) sponsor. Through the BIN sponsor program, all of Railsbank‘s customers will be able to access the same international payment tech, expertise, and revenue-generating opportunities as they could had they been working as a direct card issuer with Visa. Link here.
After a six-month extension, Banking Competition Remedies Ltd (BCR) closed the Incentivised Switching Scheme (ISS) at the end of last month and published its results with Starling Bank as the big winner. Link here.
The UK has another fledgling challenger bank in Dion.Money, which promises to “turn banking on its head” with its personal account. Dion.Money offers an IBAN account and virtual and physical cards, and promises more than 250 individual ways to “top up” a user’s account. Other promised features include free global transfers, currency exchange, health insurance, and investment accounts. Link here.
Business and consumer insights firm Equifax has penned a deal with Revolut to become the challenger bank’s new data and analytics partner for the UK. The partnership means Revolut’s app, which currently has over 16 million global users, is now powered by Equifax cloud-based data in both the UK and US. Link here.
Also, Revolut announced it’s introducing interest rates on savings vaults for its non-fee paying customers. The fintech is offering 0.15 percent interest on cash up to £85,000, a hair higher than its closest competitors. Link here.
EUROPE
International online banking PayDo announced a collaboration with the leading bank in Germany - Fidor Bank AG. Companies will improve the payment infrastructure and help popularize online payments across Europe and the world. Link here.
Cake and Sopra Banking Software (SBS), announced that Cake for Banks Solution will now be available for SBS European Customers through Marketplace. For Cake, this is a new step in fulfilling its Belgian and European ambitions. SBS is hereby expanding the services they offer to their customers. Link here.
US
HMBradley saw massive growth in deposits since its launch in June last year, passing its 2021 year-end goal for deposits in May. Furthermore, HMBradley is putting a pause on new accounts, shifting to an invite-only model as it shops around for additional partner banks. Adding another banking partner could take months, so HMBradley expects to be referral-only until later this year. Link here.
Finicity signed a data access agreement with Green Dot, a digital bank and fintech-focused on delivering trusted, best-in-class banking and payment solutions that seamlessly connect people to their money. The Finicity direct API experience will first be available through Green Dot’s flagship digital bank GO2bank. Link here.
Upgrade, Inc. launched a new version of the Upgrade Card that allows cardholders to earn bitcoin rewards on every purchase they make. The company launched the new card in partnership with Visa, and it comes with all the standard Visa Signature benefits. Link here.
Coatue Management led a Series B investment in Mercury - Banking for Startups, a banking service for other start-ups, with a valuation of approximately $ 1.6 billion, including new capital, according to two people familiar with the deal. Link here.
Square Inc. is deepening its involvement in the world of banking with new savings and checking accounts for businesses. The financial-technology company, which began operating an industrial bank earlier this year, had already been offering loans to its small-business customers. Link here.
AUSTRALIA
Digital lending and payments non-bank WLTH announced it has closed a $3 million seed round, as the company strategically prepares for its next scaleup phase and expansion into overseas markets, all whilst maintaining a strong focus on creating positive environmental change. Link here.
Australia’s buy now, pay later darling Afterpay is gearing up to launch its first banking products. ‘Money by Afterpay’ will be a standalone finance app, separate from its current shopping experience, with customers to be issued a “basic” deposit account and debit card. Link here.
LATAM
Nubank was elected on best bank in Latin America in 2021, according to the Euromoney’s Awards for Excellence, published by the British magazine Euromoney. In addition to the main prize, Nubank has also won this year the category of “Best Digital Bank in Latin America“. Link here.
Klar, a leading digital financial services platform providing a transparent, free and secure alternative to traditional debit and credit services in Mexico, today announced its Series B funding round, subject to applicable regulatory approvals, including clearance of the Mexican Banking and Securities Commission (CNBV) and the Mexican Economic Competition Commission (COFECE). Link here.
ASIA
Gojek is moving deeper into digital banking by integrating Indonesia-listed Bank Jago’s cashless payment services into its app. Jago’s customers will also be able to link their bank accounts directly with Gojek’s payment options. This way, each transaction made by Jago customers in the Gojek app will be debited directly from their Jago accounts, bypassing Gojek’s own GoPay payment gateway. Link here.
South Korean mobile-only bank 카카오뱅크 Kakaobank has defended its valuation ahead of a planned initial public offering (IPO) after financial regulators in South Korea demanded that the digital lender adjust its prospectus, arguing that it was “highly overvalued”. Link here.
Netbank has started a partnership with several alternative lenders that allow these lenders to expand their lending without needing to raise additional capital. Netbank is working with 3 leading alternative lenders; Global Mobility Services (GMS), New Cross Credit Gate PH Inc. and Inclusive Financial Technologies, Inc. (Blend PH). Link here.
MOVERS AND SHAKERS:
Robert ‘Bobby’ Zagotta is the new US CEO of Bitstamp. In his new role, Robert will lead their U.S. business as they continue to provide best-in-class service and transparency to their growing U.S. customer base. He will oversee day-to-day operations and accelerate Bitstamp’s growth in the region as part of their commitment to further expand into the U.S. Link here.
Former Deloitte UK chief executive David Sproul is set to become the new chairman of challenger Starling Bank. Sproul, who also held the role of global deputy chief executive during his three decades with the Big Four auditor, has joined Starling as a director, and will take over as chairman on 1 October. Link here.
Sponsored Content: Meet, Network, and Partner on an unparalleled scale --30,000 meetings with 4,000 Participants! Online, March 8-10, 2022. Discounted early bird tickets are available for a limited time only, qualifying Banks and Credit Unions eligible for FREE tickets.
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
Follow me on Twitter, Linkedin, and Telegram.
Discover other newsletters by MVO.
You content never dis appoints keep it going..
Waqas Anwar
https://boujeeleathers.com