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November 2, 2020

On the web

Fintech startup SoFi gets preliminary approval for U.S. bank charter

Reuters

“Financial technology company Social Finance Inc has received preliminary, conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) over its application for a national bank charter, the company said on Wednesday. The application for “SoFi Bank, National Association”, which was filed in July, still needs to be reviewed by the Federal Deposit Insurance Corporation and the Federal Reserve. A banking licence would enable SoFi to hold customer deposits and make loans, without having to rely on a bank partner as it currently does.”

October 28, 2020

On the web

Pandemic creates big audience for wage access fintechs

“The pandemic has unleashed a boom in US fintech start-ups offering workers early access to their wages, even as questions mount about the impact their business models have on consumers.  So-called earned wage access programs vary in nature, but usually offer workers the option to receive some of their wages outside of the two-week pay cycle that is common in manyindustries.  Some companies, such as DailyPay and PayActiv, offer the service through employers, which can choose to pay some or all of the fees charged to employees.  Others, such as Dave and Earnin, make interest-free advances directly through a mobileapp but ask for optional “tips” on each transaction. These tips can translate to high annualpercentage rates, raising concerns that the apps could be worse for consumers than thepayday lenders they aim to replace”

October 20, 2020

On the wires

October 9, 2020

On the web

Colombian Fintechs Fill Latin American Banking Gaps

Financial Times

“When it comes to smartphone apps, banks in Latin America have been behind the curve. Movizzon, a Colombian fintech company, is helping them change that. The company buys thousands of smartphones into which it installs two apps: its own, and that of its bank clients. Movizzon’s app then takes control of the dummy phones, logging into the banks’ apps every couple of minutes and making transactions, like transferring money or paying off a credit card.”

October 1, 2020

On the web

German Fintech Deposit Solutions Launches in the US

Crowdfund Insider

“Deposit Solutions, a Germany based Fintech unicorn, has announced its launch in the US market. According to a release, its consumer savings portal SaveBetter connects American banks digitally with savers, targeting the $16 trillion U.S. deposit market. Prominent US entrepreneur and investor Peter Thiel is a backer of Deposit Solutions.”

September 24, 2020

On the web

PayPal and Capital One Alums Launch Bundled Banking App

American Banker (paywall)

“One, a banking app that launched to the public on Tuesday, is trying to take many of the products one might find at different fintechs — from spending to saving to borrowing — and bundle them into a single account and debit card. The effect of accumulating those features in one place, its founders hope, will make One a true challenger to traditional banks.”

September 23, 2020

On the web

Currencycloud and Tribe Payments Collaborate on Banking as a Service Product

Crowdfund Insider

Currencycloud and Tribe Payments are partnering on a new “Banking-as-a-Service” solution for Fintechs and digital banks, according to a note from the company…The two companies explain that the partnership has been developed to give Tribe Payments partners access to real-time, wholesale FX rates. Tribe Payments will also offer unique, named virtual accounts in 35 currencies, enabling the ability to receive, store funds, and make payments to almost anywhere in the world via Currencycloud Spark.”

September 22, 2020

On the web

September 14, 2020

On the web

Goldman Sachs is Taking What It Learned from a $100 Million Acquisition to Upgrade the Marcus App

CNBC

Goldman Sachs is one step closer to creating what it calls the digital bank of the future. The bank has just released the first version of a personal finance management tool that gives customers of its Marcus retail brand a top-down view of all their financial accounts, as well as insights into spending and a monthly snapshot of their budget, according to Adam Dell, a Goldman partner and head of product at Marcus.”

September 11, 2020

On the web

Latin American Fintech Übank, which Offers Automated Savings App, Plans Expansion into the US

Crowdfund Insider

Mexico ’s Übank, the provider of an automated savings solution that allows consumers to save based on their lifestyle and everyday expenses, is planning to expand its operations into the US in 2021. Übank claims that it uses innovative savings strategies. Its app can “transform” daily activities such as going for a run, going out for dinner with friends or buying new clothes into saving opportunities.”

September 9, 2020

On the web

Nigeria Fintech Sparkle Announces Partnership with Visa

Tech in Africa

“Nigeria’s digital banking platform Sparkle partnered with Visa in a collaboration aimed at entrepreneurs, consumers, and SMEs throughout Nigeria. Sparkle is a digital financial services platform supporting Nigerians across the globe. The new partnership will equip Sparkle with greater flexibility and freedom on how in-app payments are made. Users of the Sparkle app can make eCommerce payments through visa virtual cards and visa branded plastic cards attached to their profiles.”

September 3, 2020

On the web

Checkbook Joins Visa’s Fintech Fast Track Program

Checkbook.io , an end-to-end online payments processor, today announced that it has joined Visa’s Fintech Fast Track program, speeding up the process of integrating with the Visa network, and allowing Checkbook to easily leverage the reach, capabilities and security that VisaNet, Visa’s global payments network, offers. Through Fast Track, Checkbook is taking real-time payments to the masses with the launch of its Virtual Cards.”

September 1, 2020

On the web

August 20, 2020

On the wires

MX Widens Lead With More Than 50,000 Connections To The Top Financial Institutions And Fintechs

“MX, the leading financial data platform enabling organizations to develop, launch, and power new money experiences, today announced that it has widened its lead as the top connector to financial institutions and fintechs with more than 50,000 connections. By offering multiple connections through direct-to-bank API agreements, partners, white-listed IPs, and consumer-permissioned access, MX ensures that end users have the most reliable account information alongside world-class digital banking and financial experiences.”

August 17, 2020

On the web

Leveraging Digital Channels to Deepen Financial Inclusion

This Day Live

“Speaking on the app, the Founder, Samuel Muoto said: “Waya PayChat is a digital payment solution that addresses the issue of unbanked and underbanked, while digitalizing payment solutions in Nigeria.” The app is the new fintech app in Nigeria which combines financial inclusion and social solution. It offers safe and secure transactions for the banked and unbanked. It allows merchants to send and receive money. The app provides an easy way to pay merchants and bills, make transactions through Waya agents while allowing friends and family to socialize through chats, calls, and sharing personal moments.”

August 11, 2020

On the web

Vitesse, a fintech providing real-time cross-border payments for businesses, scores £6.6M Series A

Vitesse , the London-based fintech that offers real-time cross-border payments for businesses, has raised £6.6 million in Series A funding. Founded in 2014 by Phillip McGriskin and Paul Townsend, who sold their previous fintech to Worldpay, Vitesse operates a global banking and payment network. This sees it able to provide customers with direct access to the domestic payment networks of more than 100 countries in over 60 currencies.”

AmEx in Advanced Talks to Buy SoftBank-Backed Kabbage

Bloomberg (paywall)

American Express Co. is in advanced talks to buy the online small-business lender Kabbage Inc., which is backed by investors including SoftBank Group Corp. ’s Vision Fund and Reverence Capital Partners, according to a person familiar with the matter. The all-cash deal could value the closely held lender at as much as $850 million, including retention payments, according to the person, who asked not to be identified because the matter is private. An agreement could be announced as soon as this month, the person said, though talks could still fall apart.”

August 10, 2020

On the wires

August 4, 2020

On the web

August 3, 2020

On the web

July 30, 2020

On the wires

July 24, 2020

On the web

Fintech Powerhouse Nubank Buys U.S. Software Firm Cognitect

Bloomberg (paywall)

Nu Pagamentos SA , a seven-year-old company that’s grown into the world’s biggest standalone digital bank, purchased a U.S. software consulting firm in its first acquisition outside of Brazil. Chief Executive Officer David Velez said his company, known as Nubank and backed by Tencent Holdings Ltd. , bought Durham, North Carolina-based Cognitect Inc. He didn’t disclose terms. Velez said in an interview that Nubank already uses Cognitect services.”

July 22, 2020

On the wires

Brex Bolsters Cash Offering With FDIC Insurance, Adds Chief Legal Officer

“Brex, the company reimagining financial systems for growing businesses, today announced enhanced features and FDIC insurance on its zero-fee cash management account, Brex Cash. These emerge after many months of regulatory and technological investment that enable a robust, lightning fast experience for customers looking to access business banking services in today’s virtual environment.”

July 14, 2020

On the wires

Rapyd Launches All-In-One Payment Integrated Solution in Mexico

“Rapyd, a global Fintech as a Service company, announced today the launch of a single “full-stack” integrated local payment solution in Mexico, allowing local and global companies access to every local payment method through one convenient API, contract, and reconciliation service. In partnership with several major Mexican payment providers including Banregio, RedEfectiva, Cacao Paycard, among others, Rapyd’s new offering will give businesses the ability to accept every major local payment methods – such as cash, bank transfers, and cards – through a single connection through its all-in-one platform. In addition, Rapyd enables businesses to disburse funds through bank transfers, cards, and push to cards in Mexico and globally.”

July 13, 2020

On the web

Robinhood raises $320M more, bringing its latest round to $600M at an $8.6B valuation

TechCrunch

“The stakes keep getting higher for American discount brokerage Robinhood , which today disclosed that it has added hundreds of millions of dollars to its previously disclosed funding round. Including the $280 million that the company had already announced, Robinhood said that it was “pleased to share” that it “raised an additional $320 million in subsequent closings.” Its now $600 million funding round brings its post-money valuation to $8.6 billion. Fortune first reported the news .”

July 9, 2020

On the web

Robinhood Has Lured Young Traders, Sometimes With Devastating Results

The New York Times

“Millions of young Americans have begun investing in recent years through Robinhood, which was founded in 2013 with a sales pitch of no trading fees or account minimums. The ease of trading has turned it into a cultural phenomenon and a Silicon Valley darling, with the start-up climbing to an $8.3 billion valuation. It has been one of the tech industry’s biggest growth stories in the recent market turmoil. More than at any other retail brokerage firm, Robinhood’s users trade the riskiest products and at the fastest pace, according to an analysis of new filings from nine brokerage firms by the research firm Alphacution for The New York Times. In the first three months of 2020, Robinhood users traded nine times as many shares as E-Trade customers, and 40 times as many shares as Charles Schwab customers, per dollar in the average customer account in the most recent quarter. They also bought and sold 88 times as many risky options contracts as Schwab customers, relative to the average account size, according to the analysis.”

July 1, 2020

On the web

TransferWise to offer investment products but has ‘no plans’ to become a bank

TechCrunch

TransferWise, the London-headquartered international money transfer service recently valued at $3.5 billion , has secured an additional license with U.K. regulators to enable it to offer investment products in the future. This will mean that U.K. customers who have money deposited in a TransferWise multi-currency or so-called “borderless” account will be given the option to make that money work harder on their behalf. Total deposits currently sit at £2 billion, so there is quite a lot of customer cash potentially idle.”

US challenger bank Chime launches Credit Builder, a credit card that works more like debit

TechCrunch

“U.S. challenger bank Chime, now valued at $5.8 billion, is entering the credit card market with today’s launch of a new card designed to help consumers build their credit history by way of everyday transactions. With the Chime Credit Builder Visa Credit Card , users can control how much they want to spend by transferring funds from a “Spending Account” to their Credit Builder Secured Account, and can then charge up to this amount wherever Visa is accepted.”

June 30, 2020

On the wires

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