Hi there fellow FinTech Fanatic!
I listed some interesting FinTech updates for you but first I would like to highlight some news on a hot topic called "embedded finance":
I recently published an article where I explained why Starbucks app is actually a bank app.
Starbucks' hugely popular rewards program held $1.8bn in customer cash as of April 2. If Starbucks was a bank, that would make it bigger than 90 percent of institutions covered by the US FDIC by deposit size.
Contrary to banks, which must maintain cash reserves to prepare for potential mass withdrawals, the coffeehouse chain only needs to stock up on coffee and snacks.
I think the Starbucks story is a great example and validation of the opportunity of embedded finance. And it seems more people in the coffee industry agree ;) Last week a Canadian Coffee Maker launched a financial service unit:
The Canadian coffeehouse and restaurant Tim Hortons launches a financial unit called Tims Financial and introduces their first product: a credit card.
Customers receive reward points for different transactions and higher rewards for transactions at Tim Hortons. The company was providing a rewards app before, and launching their first financial product inside the app is the logical next step.
So coffee houses are on board of the embedded finance train. Who will be next?
Now enjoy other great industry news below!
Cheers,
REPORT
Banks continue to partner with fintechs this year, with the aim of expanding their payment offerings in an increasingly competitive space. Here are the key partnerships in Q2 by FX Intelligence.
👀 NEWS HIGHLIGHT
Goldman Sachs Group Inc. is considering a potential sale of GreenSky Inc., the installment lending platform added to its money-losing consumer division less than two years ago.
GreenSky is part of Goldman’s new Platform Solutions unit, which also houses its credit-card partnerships like Goldman’s Apple card alongside its transaction banking business.
😎 SPONSORED CONTENT
The Fraud Fighters Manual is now available for digital download 🎉
In six exciting chapters across 168 pages, authors from top companies like Brex, Mercury, and Lithic share the best practices of fraud prevention—offering practical strategies and real-world examples to empower fellow professionals in the fight against fraud 💪
📰 ARTICLE
Is Apple the next identity verification juggernaut? Apple appears to already have the capabilities to own identity verification and fraud for iOS users
💡INSIGHTS
The U.S. Open Banking Movement: How consumers are driving U.S. open banking innovation, a FinTech report by Visa.
🎤 PODCAST
Miguel Armaza sits down with Trisha Kothari, CEO/Co-Founder of Unit21, a company that has raised ~$100 million to be at the forefront of the fight against financial crimes.
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🇺🇸 NATIONAL HIGHLIGHTS
⭐️ Apple previews new features coming to Apple services this fall. Users will be able to create Collaborative Playlists in Apple Music, browse offline maps and trails with Apple Maps, enjoy new experiences in Apple Podcasts, and much more.
⭐️Visa nearing deal for Brazil payments provider Pismo.
⭐️Better.com lays off real estate team and shutters business unit.
⭐️FIS acquires banking-as-a-service startup Bond.
😇 Do you want to have access to the best deal flow in FinTech? And/or do you want to invest alongside me and 1000+ other FinTech Angel investors?
Join my Angel Investors Syndicate!
DIGITAL BANKING
The Bank of New York Mellon Corporation (BNY Melon) has partnered with black-owned fintech startup MoCaFi, helping the underserved access bank services.
Majority grabs $9.75M amid expansion in Texas.
VC FUNDS
OneVest raised a C$17m to expand its business, in a Series A funding round led by Omers Ventues.
Paro lands $25m Series C funding. The round was led by Top Tier Capital Partners, with participation from existing investors Madrona Venture Group, Revolution Ventures, and Sierra Ventures.
PAYMENTS
Toast picks FreedomPay as preferred payments gateway partner.
Stripe adds support for Cash App Pay in the US.
Iliad Solutions is offering support to financial institutions adopting the new FedNow Service to help them get ‘Service’ ready.
Payments Canada is undertaking a second review of its upcoming real-time payments system, Real-Time Rail (RTR), further delaying its launch.
OPEN BANKING
Plaid rolls out identity verification across apps and services.
United States Bank taps Bankjoy for online and mobile.
Mbanq & Qorbis partner to create personalised FinTech solutions for brands.
CRYPTO
Binance moved billions through two U.S. banks, regulators say.
Binance.US pauses USD deposits as it transitions to crypto-only exchange.
Binance has not sold either Bitcoin or Binance Coin, its native token, the company's CEO Changpeng Zhao said.
SEC's temporary restraining order would 'effectively end' Binance.US business.
A new crypto banking system arises under the shadow of a regulatory crackdown.
Binance.US said its banking partners would “pause” their relationship with the exchange as soon as next week.
Finblox starts offering tokenized treasury Yield with OpenEden.
INVESTMENT
Andreessen Horowitz has combined its finance and consumer investment teams into one, merging what were two of the hottest pandemic-era investment categories that have since cooled.
GREEN FINANCE
Klarna unveils new tools enabling consumers to shop more consciously and take climate action.
FRAUD PREVENTION
Paysign completes an issuer certification and connects with Mastercard. The collaboration means that Paysign will get access to added security features and fraud protection mechanisms.
American Express and Envestnet | Yodlee announce customer permissioned data sharing agreement to enhance digital finance management for customers.
MOVERS & SHAKERS
First Citizens Bank announced that Marc Cadieux has been appointed President of Silicon Valley Bank’s commercial banking business.
Paysend appointed Yuri Biondo as Chief Financial Officer for the Group’s US business.
Goldman Sachs fintech executive Stephanie Cohen to take leave of absence.
OPPORTUNITIES
Brex opens new S.F. office as co-CEO, Henrique Dubugras, returns to Bay Area.