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FinTech

Digital payments alone could become a $100 trillion industry, according to PwC. And that’s just one component of the global Fintech industry. This channel tackles the lenders and buyers, the obstacles and achievements, and the trends and trend makers leading the ongoing technological evolution in global finance.

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FinTech: Monzo To Turn Profitable In 2023, Says CEO

December 2, 2022

“We will be profitable in the next financial year,” TS Anil said at the summit on Thursday, though Monzo reported pre-tax losses of £119mn for the 12 months to the end of February 2022 in the financial results it declared in July. Anil’s statement also marks a sea change from 2021, when auditors expressed “material uncertainties” over its ability to remain in business.

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More Stories on FinTech

FinTech: With New BNPL Options, Dentistry Bills Become Painless

July 26, 2022

A third of U.S. consumers have gone without medical care, citing affordability as the main cause of the neglect. This is particularly acute in the case of dentistry, which can lead to sizable bills. New BNPL options are healthier for patients’ teeth, and dental practices.

FinTech: Australian Neo Bank Volt Returns Deposits, To Hand Back Banking License

July 25, 2022

The Australian Prudential Regulation Authority (APRA) notes that Australian digital bank Volt Bank (Volt) has refunded its customers’ deposits. The process began on June 29 when Volt declared it would no longer be a bank and that it would return its ADI licence to APRA.

FinTech: “No Credit History Required” Card Offerer Tomocredit Lands $122M

July 22, 2022

Tomocredit, a credit card provider that does not insist on a FICO score from borrowers such as credit-invisible immigrants and international students with no credit history in the U.S, announced its raise of $122 million in equity and debt. The oversubscribed round met with participation by Morgan Stanley’s Next Level Fund, MasterCard, and debt from Silicon Valley Bank. Major fintech investors and culture funds including GoldHouse, Asian Hustle network, and Hyphen Capital, also participated.

FinTech: UK Digital Bank Starling Clocks First Full Year Of Profitability

July 21, 2022

Starling Bank, the UK-based digital challenger bank, announced a maiden profit in its accounts for the financial year ended on March 31, 2022. Compared to a pre-tax loss of £31.5 million for the 16-month period to 31 March 2021, Starling earned a pre-tax profit of £32.1 million for the financial year ending 31 March 2022. Revenue for the latest year was £188 million, nearly doubling from the previous year.

FinTech: UK Online Bank Starling Ends European Ambitions, Pulls Banking Application

July 18, 2022

British digital challenger bank Starling told staff Monday that it had withdrawn its application for a European banking license from Ireland’s central bank after it spent four years on the process. The bank said in its memo to employees that it will focus instead on new opportunities in lending as well as selling its software-as-a-service product.

FinTech: Corporate Spend Management Platform Airbase Nabs $150M Credit Facility From Goldman Sachs

July 15, 2022

Airbase, a spend management platform catering to mid-market and enterprise companies, announced today the close of its $150 million debt financing round led by Goldman Sachs (NYSE: GS). Airbase will apply the funding towards the expansion of its corporate charge card program, a component of the spend platform.

FinTech: Stripe Slashes Internal Company Valuation By 28% From $40 Per Share To $29

July 14, 2022

Stripe, the payments giant founded by the Collison brothers, has cut its internal valuation by 28% according to a report in the Wall Street Journal. Stripe’s so-called 409A valuation is the fair market value of the common stock of a private company as valued by a third-party appraiser, and is used to grant employees stock options. According to WSJ’s sources, Stripe informed employees in an email Friday that this value was $29, compared with $40 in the most previous 409A assessment.

FinTech: African Fintech Wave Lets Go 15% Of Its Staff

July 13, 2022

Wave, the fintech aiming to make Africa a cashless continent, has laid off about 15% of its 2,000 staff amidst a global slump in the values of publicly listed fintech companies, and a massive down round in storied BNPL fintech Klarna.

Venture Capital: Insurtech wefox Lands $400M Round Series D At $4.5B Valuation

July 12, 2022

Berlin-based insurtech wefox has raised $400 million in a Series D equity round led by Mubadala Investment Company with participation from EDBI, Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global. In the present environment rife with down rounds (e.g. Klarna), layoffs and collapsing public market values of listed fintechs, wefox said it bucked the trend currently experienced in the insurtech market and more broadly across the tech sector.

FinTech: Agrotoken Backs Its Visa Alliance With Blockchain For Agro-Focused Card

July 12, 2022

Agrotoken, which is developing a tokenized infrastructure for trading agrocommodities, announced Monday its partnership with Pomelo (a provider of technological infrastructure for financial services) and Algorand (a layer-1 blockchain) to develop a card for the agrocommodity sector. Agrotoken previously entered an alliance with Visa (NYSE: V) to create a payment method allowing agricultural producers to use their grains as a form of payment through a card.

FinTech: Klarna Raises $800M At Slashed Valuation To Pursue US Expansion

July 11, 2022

It’s a monster down round (one in which the startup is forced to accept a lower valuation than that in a previous round) for Klarna, showing how risk averse venture firms have become in an environment that punishes tech companies first and asks questions later. It is also a pointer to the slowing allure of buy-now-pay-later (BNPL), a fintech product that is Klarna’s bread and butter line. The fintech’s latest round received investment from existing investors including Sequoia, the founders, Bestseller, Silver Lake and Commonwealth Bank of Australia. New investors included the Mubadala Investment Company and the Canada Pension Plan Investment Board.

Fintech: With The Plum Card, Users Can Set Their Budgets And Spending Limits

July 8, 2022

London-based fintech Plum, known for its personal finance app, has built these features into its debit card – the Plum Card. Said to be the company’s latest addition to its money management toolkit, it aims to give you better visibility and control over your finances.

FinTech: Payments Platform Wirex Offers Credit Against Collateral Of Your Crypto

July 8, 2022

Wirex, the London-headquartered digital payments platform which aims to blur the gap between traditional currencies and crypto, has announced Wirex Credit, a product that offers highly competitive interest rates and no origination fee for crypto-backed loans. Users can easily borrow, within the Wirex app, up to $100,000 in stablecoins, with a loan to value (LTV) of up to 80%.

FinTech: Fintechs In Kenya And India Under Regulatory Glare For Alleged Money Laundering

July 7, 2022

Alleged money laundering by fintechs has drawn regulatory wrath in unconnected matters in Kenya and India. A court in Kenya has frozen more than $40m in accounts belonging to Africa-focused fintech payments giant Flutterwave under the country’s anti-money laundering laws. In India, the country’s Enforcement Directorate attached 86.6 crore rupees (about $11 million) from various fintechs and finance companies under the criminal sections of the Prevention of Money Laundering Act (PMLA).

FinTech: Klarna’s Valuation Plunges To $6.5B In Talks To Raise $650M (WSJ)

July 1, 2022

Klarna, the Swedish fintech known for its buy-now-pay-later (BNPL) financial product, is negotiating to raise $650 million at a valuation of $6.5 billion, which is a very sharp comedown from the $45.6 billion tag in a June 2021 funding round led by SoftBank Group.

FinTech: Sam Bankman-Fried Of FTX Rejects Rumors He Is Acquiring Robinhood

June 30, 2022

FTX, the crypto platform owned by billionaire Sam Bankman-Fried, has scotched media reports that it was pursuing a deal to acquire commission-free trading app Robinhood (NASDAQ: HOOD). Bloomberg said Monday that FTX was exploring whether it might be able to acquire Robinhood, quoting people with knowledge of the matter.

FinTech: PayPal Launches A Cashback Credit Card For Small Businesses

June 29, 2022

PayPal (NASDAQ: PYPL) has added yet another credit product geared towards making small businesses’ financial lives easier. The company has launched the PayPal Business Cashback Mastercard, its very first business credit card, said to be a simple way for businesses to pay for both everyday business expenses and those that may unexpectedly arise, while also earning cashback rewards on all purchases.

FinTech: Wheeling-Dealing In A Tough Market

June 27, 2022

Amidst fears of a recession, job cuts, and down rounds, news of M&A in fintech.

FinTech: Revolut Launches Buy-Now-Pay-Later (BNPL) In Ireland

June 24, 2022

Digital challenger bank Revolut has commenced the rollout of a BNPL offering in Ireland this week. It will compete with established BNPL players in the country such as Swedish fintech Klarna and Humm, owned by Australia’s Flexi-Fi. However, Revolut’s product comes with fees and a credit limit must be approved prior.

FinTech: Firing SMB Clients – Brex Apologizes

June 24, 2022

Last week, fintech Brex caused a stir by announcing it was discontinuing services to thousands of small and medium-sized businesses in favor of focusing on venture-backed or “professionally funded” and larger client accounts. The company likely received a lot of flak for the both the decision and the manner it was communicated; hence a conciliatory and apologetic blog post by Pedro Franceschi, founder and co-CEO, issued Thursday.

FinTech: Brex Dumps Thousands Of Small Business Customers In Rejig

June 21, 2022

Brex will now focus on venture-backed technology startups and larger companies. Brex, the Silicon Valley-based lender to small and medium sized businesses and startups, has announced a shift in its business priorities. It will now focus only on venture-backed technology startups and larger companies. Announced last week, the change puts tens of thousands of small…

FinTech: Klarna Facing A Down Round, May Raise $500M To $1B

June 17, 2022

According to a report in the Wall Street Journal, Klarna, the fintech company famous for its ‘buy-now-pay-later’ product, is in talks to raise funding at a valuation of $15 billion, nearly a third of its 2021 valuation of $46 billion.

FinTech: Mambu’s Technology To Drive Commonwealth Bank’s New Digital Mortgage

June 16, 2022

SaaS cloud banking platform Mambu will power the new, next-gen digital mortgage brand, Unloan, by the Commonwealth Bank of Australia (ASX: CBA), the country’s largest bank. Unloan is a highly innovative product for the Australian mortgage industry launched in May 2022. It provides loan refinancing applications in as little as 10 minutes and a discount that increases every year for up to 30 years.

FinTech: PayPal Extends Its BNPL Scheme To Monthly Payments

June 15, 2022

PayPal (NASDAQ: PYPL) has launched “PayPal Pay Monthly,” its latest BNPL product, aimed at offering customers more choices and flexibility for making payments. The product is addressing the issue of credit card debt, now a serious problem amidst 40-year record inflation, rising interest rates and fears of an impending recession.