Hello FinTech Fanatic!
I'm happy to present to you my latest newsletter Connecting the dots in RegTech newsletter in collaboration with my neighbors in Amsterdam: Fourthline.
In this weekly newsletter, we'll be your intrepid guides, leading you through the winding paths of compliance, risk management, and all things regulatory.
With news updates and podcast episodes we'll bring you the latest trends, emerging technologies, regulatory updates, and inspiring success stories from the pioneers who are reshaping the industry.
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And now on to other FinTech industry news I listed for you today:
REPORT
While concerns about the stability of the overall economy continue to weigh on investor sentiment for fintechs, we believe that leading fintech players will prove to have resilient business models that benefit from secular electronic payment adoption.
The credit ratings agency Moody’s Investors Service this week spelled out potential drawbacks of the real-time payments system FedNow, which the Federal Reserve plans to launch next month, saying some payments players that “rely heavily” on card interchange fees for revenue could suffer.
👀 NEWS HIGHLIGHT
The suit alleges “fraud and deception” from DCG and aims to recover “damages and losses” related to the partnership.
Gemini partnered with DCG Genesis for its Earn interest-bearing product, but customer assets were frozen after Genesis halted withdrawals following the FTX collapse.
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📊 INFOGRAPHIC
SoFi has big plans for the $2B of deposits it’s scooping up every quarter.
SoFi is doing a lot more than student lending these days, but still expects the end of a federal moratorium on student loan repayments to be a catalyst for growth.
📰 ARTICLE
Rising interest rates, losses on commercial real estate and heightened regulatory scrutiny will pressure regional and midsized banks, leading to a wave of mergers, sources told CNBC.
💬 INTERVIEW
SoFi Chief Executive Officer Anthony Noto told Barron’s that it’s just a matter of time before his company becomes one of the country’s top 10 financial firms, but the question is how much time.
💡INSIGHTS
Within financial services organizations, AI is nothing new.
In his 2022 letter to shareholders, JPMorgan Chase CEO Jamie Dimon famously wrote that the bank was spending “hundreds of millions of dollars” on AI and seeing identifiable returns on its tech bets (spending $12 billion on technology in 2021 alone).
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🇺🇸 NATIONAL HIGHLIGHTS
⭐️ SEC files lawsuit against Celsius and ex-CEO Alex Mashinsky.
⭐️ Google Calendar now allows users to take paid appointments.
⭐️ Payoneer to cut nine percent of staff.
⭐️ Flexport’s Ryan Petersen joins venture firm Founders Fund as a partner.
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PAYMENTS
MassPay announced a strategic partnership with Visa through its Fast Track Program. MassPay will strengthen its global payout service offerings, expand its capabilities, and gain access to Visa’s curated partner ecosystem.
Stax Payments is working with PayPal to offer a comprehensive solution for accepting payments online for its customers.
Penny Finance announces the launch of automated account integration with PLAID, allowing for improved money insights and more accurate financial reporting for members.
The Federal Trade Commission has filed an amended complaint that it says bolsters its case that Walmart allowed its money transfer services to be used by scammers, who fleeced consumers out of hundreds of millions of dollars.
OPEN BANKING
SVB’s collapse drove 26K customers to Mercury in 4 months. When Silicon Valley Bank collapsed in March, a flurry of startups rushed to step in to help fill a gap in the startup and venture capital community.
The Federal Reserve Bank of New York says that proof-of-concept run with a host of banks has demonstrated the feasibility of a regulated digital asset settlement platform supported by shared ledger technology.
CRYPTO
Circle launches beta test of wallet-as-a-service for developers. The innovative service provides a platform for developers to integrate web3 wallets seamlessly into their applications, boasting a user-friendly design.
Binance plunges into crisis as senior execs quit over CEO Changpeng Zhao’s response to Justice Department investigation.
DONE DEAL
Pipe co-founder raises $6M for CapStack, a bank-to-bank marketplace aimed at ‘de-rectifying portfolios’.
Jirav has secured $20 million in a Series B funding round led by Cota Capital. The firm will put the new cash towards “fueling product development, expanding our customer base, and attracting exceptional talent to join our team”.
Cornerstone Advisors announced the acquisition of BankSmart, a consulting firm specializing in bank operations, vendor selection, project management solutions and payments.
Equabli, Inc is pleased to announce the successful completion of its recent round of financing. The funding will be instrumental in propelling Equabli toward its strategic objectives, including talent acquisition and market expansion.
MOVERS & SHAKERS
Polygon names new CEO, Marc Boiron, shuffles top executives as SEC expands oversight. Marc Boiron will serve in the newly created role of CEO, leaving his current role as chief legal officer, according to a press release.
If you are a fintech startup and have over 100 questions send me an email, maybe I can answer a few.