Hello Fintech Friends,
We have some exciting announcements to share with readers next week, stay tuned!
Please enjoy another week of fintech and banking news below.
💬 Quote of the Week
“We find solace in the market being high. But the market is not a reflection of the economy or progress — it is increasingly driven by a few firms’ ability to arbitrage the gap between the pace of technology and regulation. It’s depressing. What to do? I’ll check my likes, mentions, and stocks.”
Prof. Scott Galloway (Source)
📖 Read of the Week
It’s pretty fascinating to read a sitting member of Congress publicly defending the right to innovation in decentralized finance. This week, Rep. Tom Emmer of Minnesota lays out a case to avoid overregulation of blockchain and defi in The Hill.
📊 Stat of the Week
Commission-free trading and investing apps are making over $100 million a month in commission on other products. (Financial Times)
Modern Treasury is the most powerful API for money movement. Businesses with complex money flows like Pipe, ClassPass and LedgerX use MT to automate, track and scale payment flows over ACH, Wire, RTP and other payment methods. The platform connects directly to your bank account to give you 2x faster settlement, complete control over your funds and real-time visibility into payment statuses. Learn more about Modern Treasury
💼 Open Role Spotlight
Banking as a service platform Synctera is hiring across the board in BD, Product, Compliance, and Engineering.
🏦 Financial Services & Banking
🚀 Product Launches
Crown Agents Bank launched a pension with biometric authentication.
Equifax UK partnered with United Utilities to launch an open banking income verification tool for the water industry.
📰 Other News
Wells Fargo is shutting all personal lines of credit to its consumers with no warning, which is expected to negatively impact credit scores across the board.
American Express expanded the information in its digital receipts for Amazon purchases.
The line between fintech and crypto is blurring. 650 US banks will soon be able to offer bitcoin purchases to 24 million consumers through partnerships with NCR and NYDIG. Meanwhile, Mastercard is hiring a crypto product manager, while Visa crypto-backed cardholders spent over $1 billion this year.
Russia’s central bank is piloting a digital ruble.
Chase customers became billionaires overnight due to a glitch.
🚀 Product Launches
Uruguayan fintech powerhouse dLocal will now issue physical cards across Latin America.
Euphoria.LGBT launched a savings app for gender transitions.
PayPal launched Zettle, a digital point of sale solution for merchants.
KYC and anti-fraud platform Socure launched a user identity solution built specifically for BNPL.
Scandinavian open banking provider Nordigen will let users connect their bank accounts to Google Sheets.
Funding Options launched a UK green finance marketplace.
Aries Financial launched mobile trading.
📰 Other News
India’s central bank is getting increasingly worried about the presence of large technology providers in financial services.
Booking.com launched an internal fintech unit to build travel financial services.
Venmo raised its peer-to-peer payment fees for the sale of goods and services.
Wish, the Chinese e-commerce site, was granted a Payments Services License by the Dutch Central Bank, allowing it to process European payments on its platform. Germany’s Solarisbank is coming to France, Italy and Spain.
GoCardless and Pennylane partnered to provide automated accounting to small businesses.
Chime is in hot water for closing accounts and not returning customer money.
Instagram is getting in on NFTs.
In collaboration with Ben White.
The Bank of International Settlements published a landscape survey on jurisdictions regulating “non-bank payment service providers.”
To enable more bank innovation, The Financial Crimes Enforcement Network could write rules to add No Action Letters to their supervisory toolkit for AML requirements.
New Zealand announced it will be the next country to establish a Consumer Data Right, following its neighbor Australia which recently celebrated its first anniversary by launching three new pathways for businesses to ingest data.
Following regulatory actions in the UK, Binance suspended deposits from Europe’s Sepa payments system.
Six US-based fintech companies sent a letter to the CFPB asking for more guidance on how to manage “disparate impact” of AI/ML decisioning algorithms.
The European Central Bank lifted its COVID-19 restrictions on bank dividends and share buybacks.
UK Chancellor of the Exchequer Rishi Sunak announced new climate and technology related goals for Britain’s financial sector.
The European Commission published a Renewed Sustainable Finance strategy.
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