JPMorgan, Zelle May Have Upper Hand If Litigation Ensues
Weekly news up to Monday, 19th of August 2024
👀 NEWS HIGHLIGHT
The Argentine neobanking battle is heating up.
Let’s take a look at the current competitive landscape, based on the estimated 33 million adults in Argentina (INDEC):
Ualá: 6 million users (Up 13% YoY) - 18.18% Market Share
Brubank: 5.8 million users (Up 14% YoY) - 17.58% Market Share
Naranja X : 4.7 million users (Up 84% YoY) - 14.24% Market Share
These three players command a significant portion of the digital-only banking market (50%), showcasing the intense competition in the region.
📰ARTICLE OF THE WEEK
🎤 PODCAST
What Vault’s co-founder learned at Revolut. Saud Aziz explains what it takes to build a locally-grown business banking platform in Canada.
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🔦 DIGITAL BANKING HIGHLIGHTS
⭐️ JPMorgan, Zelle may have upper hand if litigation ensues.
⭐️ Klarna takes on banking with new savings, cash-back offerings.
⭐️ Nubank doubles net income, reaches 105M customers.
⭐️ Revolut VS Nubank. Who performs better?
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🌎 REGIONAL HIGHLIGHTS
UK 🇬🇧
HSBC has pledged not to close any more branches until at least 2026 amid politcal and regulatory pressure to maintain access to cash on UK high streets. The lender, which has closed 743 branches since 2015, has also allocated a £50 million spend on refurbishing its remaining 327-strong branch network.
Monzo outage hits customer payments. Thousands of Monzo customers were left unable to make payments on Tuesday thanks to a technical problem with the digital bank's app. Customers flooded X with complaints about being unable to access their accounts or contact the company.
UK start-up Sync Savings to make market debut next month. The UK-founded start-up aims to provide banks, building societies and credit unions with a solution to embed their savings accounts into untapped third-party channels.
HSBC UK follows Nationwide and Lloyds as they join forces with OPDA for a more streamlined mortgage process. HSBC has joined the Open Property Data Association in a bid to improve the homebuying process for customers through data sharing after two of it’s competitors signed with the trade association earlier this year.
Science Card - a financial platform set up to accelerate innovation in science and technology, introduces a new e-money account and Mastercard debit card to help customers fund scientific research projects while they spend. This offering connects science with financial services, supporting research at leading UK universities.
Monzo rated as Britain’s top bank in survey of 36,000 people. The Competition and Markets Authority (CMA) published the findings of its latest survey of tens of thousands of people in Britain. Monzo was voted the best provider for individuals and businesses.
EUROPE 🇪🇺
Revolut and Tikkie simplify payments in the Netherlands. Revolut’s new feature makes it easier for its users in the Netherlands to split bills and manage payments seamlessly. By linking their Revolut accounts with Tikkie, users can enjoy enhanced financial versatility and convenience.
Fincluded introduces PINCARD, the payment account for migrant workers. With PINCARD, Fincluded provides a solution with a simplified signup process and documentation requirements, enabling migrant workers to quickly and easily access a Dutch payment account and participate in the payment system.
Russia's central bank on Tuesday cancelled the banking licence of American Express Co's Russian subsidiary after the U.S. lender's unit filed a voluntary liquidation request.
Banks face tough new security standards in the EU — their tech suppliers are under scrutiny, too. By January 2025, banks and their technology suppliers will have to comply with a new EU law known as DORA. It could help prevent major IT disruptions in future.
PTSB, a full-service bank headquartered in Dublin, Ireland, has expanded its relationship with merchant acquirer Worldpay to extend a suite of additional merchant services to its commercial customers. The expanded partnership will provide PTSB with access to additional Worldpay solutions.
USA 🇺🇸
Pennsylvania-based Customers Bancorp, the parent company of Customers Bank, has been hit with an enforcement action by the US Federal Reserve, with the regulator alleging it “identified significant deficiencies” concerning the bank’s “risk management practices and compliance with the applicable laws, rules, and regulations relating to anti-money laundering (AML).
People who have used Cash App accounts may be entitled to receive up to $2,500 each as part of a $15 million settlement related to a data breach involving the popular payments and investment platform, according to court documents and the company.
KeyCorp receives strategic minority investment from Scotiabank. As part of the transaction, KeyCorp and Scotiabank plan to explore commercial opportunities to partner together in the future to best serve their respective client bases.
Constellation partners with SavvyMoney to Offer Enhanced Credit Decisioning, Analytics and Financial Wellness Solutions to Constellation Digital Banking Platform Users.
Lili teams with Dun & Bradstreet on Business Banking. Through this integration with Dun & Bradstreet, Lili continues its mission to simplify business finances and provide business owners with the tools they need to succeed.
Pibank, the Direct Banking Solution of Intercredit Bank, launches its U.S. presence. The direct bank, which already has a robust presence in Spain and Colombia, will now be offering its high-yield, customer-centric savings products to U.S. consumers.
Fortuna Bank, an Ohio-based start-up, is preparing to open its doors after securing $20.7 million in funding and receiving conditional approval from the FDIC. The new financial institution will be majority female-owned and says on its website it will offer “boutique banking for small businesses.”
Michigan Educational Credit Union (MECU) implements new digital banking platform from Lumin Digital. MECU's rollout of Lumin's digital banking platform comes as the institution works to continually enhance its members' banking experience by evolving with the latest industry standards and innovations.
LATAM
Finsus, the third-largest "Sociedad Financiera Popular" (Sofipo) in Mexico, is preparing to start the process of becoming a bank. The company primarily operates in Mexico City, Monterrey (Nuevo León), and Guadalajara (Jalisco), and has reached 30% of municipalities with populations under 15,000. Carlos Marmolejo, CEO, and Norman Hagemeister, Chairman of the Board of Directors of Finsus, announced to Expansion that they plan to begin the necessary procedures with the National Banking and Securities Commission (CNBV) next month.
MoneyGram, a global leader in international money transfers, has integrated Brazil's instant payment system, Pix, into its website and app. This integration was made possible through a partnership with BS2.
Operating since the beginning of the year, Magie, a FinTech founded by Luiz Ramalho (CEO), is transforming the financial market with its digital bank that operates exclusively within WhatsApp. Utilizing artificial intelligence (AI), Magie simplifies financial transactions, offering users a practical and secure solution without the need to access a separate banking app.
Mercado Pago CEO on building Brazil’s biggest digital bank. Mercado Libre, as well as Mercado Pago, is ready to test that innovative spirit outside of Brazil. The company has bold expansion plans as it looks to become the dominant digital bank in Latin America, including its recent application of a digital banking license in Mexico.
David Vélez, the billionaire co-founder and chief executive officer of Nubank sells $𝟰𝟬𝟰 𝗠𝗶𝗹𝗹𝗶𝗼𝗻 of shares as stock hits record Velez unloaded 31 million shares, or about 3% of his total stake, via his trust Rua California Ltd. to raise $404 million, according to a filing. The sale is intended for “estate planning purposes,” the company said.
ASIA
Global FinTech Innovations Inc (Mynt), the Alibaba-backed parent company of the Philippines’ finance app GCash, is reportedly looking at the possibility of applying for a digital banking licence in the country now that the central bank lifts a moratorium, planning to accept four more digital lenders in the Philippines.
Wise Payments Ltd. plans to start signing up new customers in India for overseas remittances after a pause, seeking a bigger slice of a market that’s swelled to $32 billion. The London-based FinTech firm stopped accepting new clients in recent months in order to revamp its infrastructure after getting a license from the Reserve Bank of India that permits the app’s customers to send more money overseas.
Niyo, a travel banking platform, has expanded its services to include flight bookings and visa applications, adding up to its travel-banking solutions for users. This expansion targets India's growing segment of new international travelers.
Saudi Central Bank (SAMA) has announced the launch of a government banking services digital platform named ‘NQD’. The platform provides ‘easy access’ for government entities to their accounts at SAMA to conduct financial transactions through a ‘secure and unified’ digital platform,’ according to the announcement. The central bank describes NQD as part of its strategy to ‘deliver banking services to government entities, as well as supporting digital development’.
Neobank Keabank valued at €10.5m after fresh investment. The investment process involved nearly a year of comprehensive due diligence, reflecting careful evaluation and a strong belief in Keabank’s business model, technology, and team.
MOVERS AND SHAKERS
European digital bank N26 announces updates to Management Board. After over 2 years at N26, Chief Regulatory Officer Jan Stechele will step away from his executive duties “at the end of Q3 2024.” Her tasks will be taken over by Chief Risk Officer Carina Kozole, with whom Jan has worked with very closely since she started at N26 in Nov. 2023.