The Week in Review

The Week in Review

Friday July 3, 2020 –

Here are the new and noteworthy stories we have been following this week.

BIS Innovation Hub to expand global reach

The Bank for International Settlements (BIS) is expanding its Innovation Hub to new locations in Toronto, London, Frankfurt and Paris, and Stockholm; the new Hub Centres will be established over the next two years in collaboration with the Bank of Canada, the Bank of England, the European Central Bank and four Nordic central banks.

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

Chime has launched the ‘Chime Credit Builder Visa Credit Card’, to help its customers build and establish credit; the card is a hybrid debit / credit card where users essentially use their own money through the credit card and then Chime makes automatic monthly payments and reports those payments to the credit bureaus.

SocGen buys French neobank for entrepreneurs Shine

Societe Generale is acquiring Shine, a French neobank for entrepreneurs, in a deal rumoured to be worth around EUR 100 million; according to SocGen, Shine will continue to operate independently but its products will now be marketed to SocGen’s business customers.

Point to launch new challenger bank with rewards on debit card purchases

Point a new digital bank that has been in private beta for the past year has announced new funding and plans to launch later this month; Point’s key value proposition is a debit card rewards program that provides cash back based on spending.

Venmo begins piloting ‘Business Profiles’ for small sellers

Venmo is piloting a new feature called Business Profiles, which offers small and micro businesses the opportunity to have a more professional profile page on its platform to facilitate and enable consumer payments; while the service is free during the pilot, in the future businesses would be charged a per-transaction fee of 1.9% + $0.10 on every payment received.

The Jones Financial Companies, L.L.L.P. Submits Application for Industrial Bank Charter

The Jones Financial Companies, L.L.L.P. announced that it has submitted an application to the FDIC and Utah Department of Financial Institutions to establish the Edward Jones Bank, a Utah-chartered industrial bank; according to Edward Jones, the bank would enable the company to broaden its retail offerings.

Brazil central bank chief says WhatsApp payments service faces further review

WhatsApp’s new payment service in Brazil continues to face a tenuous future; after suspending the service based on anti-competitive grounds, the Brazilian Central Bank president said this week that WhatsApp would be allowed to launch its new payments service in the country, but called for proof it can operate safely in terms of data protection.

ECB welcomes initiative to launch new European payment solution

A group of 16 European banks have come together to launch the European Payments Initiative with the goal of creating a unified payment solution across Europe, encompassing a payment card and a digital wallet and covering all payments including cash withdrawals; the new payment service is expected to be operational during 2022.,as%20well%20as%20cash%20withdrawals.

Wirecard North America sale draws interest from payments groups

Wirecard NA that was put up for sale earlier in the week is reportedly attracting interest from a variety of potential buyers including fintech, payments, and prepaid card companies; according to industry reports, Moelis & Company has been hired to organize the sale which could bring in about $400 million.

Goldman takes on transaction banking

Goldman Sachs has launched its new US transaction banking offering and will be relying on new / modern technology to build and gain share; transaction banking is a large and attractive business where the Top 10 players made combined revenues of more than $26 billion last year.