Friday June 18, 2021 –
Here are the new and noteworthy stories we have been following this week.
Verizon introduces financial literacy program for kids, offering parents peace of mind
Verizon has introduced ‘Verizon Family Money’ a new banking app and debit card targeted at teens to help them save, spend, earn, and become more financially savvy; the app keeps parents in control allowing them to setup chores, pay allowances, and monitor spending.
Cross River Launches Venture Capital Arm to Propel the Next Generation of Fintech Startups
Cross River Bank has established ‘Cross River Digital Ventures’, a venture capital arm that will invest in companies at the intersection of lending, payments, investing and fintech; to date, Cross River Digital Ventures has invested in Innovative Assessments, Lev, and Finix Payments.
Advent invests $430 million in Brazil payments firm Ebanx before IPO
Funds managed by Advent International are investing $430 million in the Brazilian payments company Ebanx ahead if its planned IPO; while the valuation of Ebanx was not disclosed, the company is expected to process more than $7 billion in total payments this year, doubling from 2020.
American Express Launches New Checking Account for Small Businesses
American Express is launching ‘Kabbage Checking’ a digital bank account for small businesses; the account pays 1.1% on deposits up to $100,000, offers free ATM access, and has no monthly or maintenance fees.
Visa brings Tap to Phone payments to the US
Visa has launched its first ‘Tap to Phone’ US pilot which allows for the acceptance of contactless payments on an Android NFC smartphone; the service is being introduced in Washington DC and will subsequently roll out to Atlanta, Chicago, Detroit, Los Angeles and Miami.
JPMorgan is buying UK robo-advisor Nutmeg to boost overseas retail banking expansion
JPMorgan Chase is buying British online investment management platform Nutmeg to complement its plans to launch a standalone digital bank in the UK later this year; Nutmeg is one of the UK’s largest robo-advisers with more than £3.5 billion in assets under management. (Price not disclosed).
U.K. Fintech Wise to Go Public in London Direct Listing
Wise, a UK-based online money-transfer service (formerly known as TransferWise) is preparing to list on the London Stock Exchange; while Wise did not disclose a target valuation for its public listing, it is expected to reach between $6 billion and $7 billion.
Volt raises $23.5m to build global instant payments network
Volt, the European open payments gateway has raised a $23.5 million Series A round to fund expansion into new territories and build out its global instant payments footprint; Volt offers seamless access to Open Banking payments in Europe, connecting over 5,000 banks across the UK and EU and is working on bringing A2A payments infrastructure to a single point of access.
Raisin goes live in the U.S. with MapleMark Bank as its first partner bank
Raisin, a pan-European wealth management platform, has announced the launch of its patented term deposits technology on Dallas based MapleMark Bank’s digital platform; by integrating the Raisin Savings-as-a-Service software, MapleMark Bank becomes the first Raisin US partner bank to offer clients unique term deposits that can be personalized to individual client needs.
HSBC to Take $3 Billion in Losses on Sale of Troubled French Bank
HSBC Holdings PLC expects to take $3 billion in losses as part of an agreement to sell its unprofitable French retail bank to a company owned by Cerberus Capital Management LP; HSBC said it would receive 1 euro for the bank, equivalent to around $1.19.