The Week in Review

The Week in Review

Friday February 8, 2019 –

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

Rising Bank, a new online-only bank, launched today

Midwest BankCentre announces the launch of Rising Bank, a digital-only bank offering a variety of high yield savings accounts.

https://www.bankrate.com/banking/cds/rising-bank-launches-offering-top-yields/

Meridian Credit Union eyes spring launch for new digital bank

One of Canada’s largest credit unions, Meridian has received regulatory approval and will be launching motusbank, a digital-only bank.

https://business.financialpost.com/news/fp-street/meridian-credit-union-eyes-spring-launch-for-new-digital-bank

Digital Isle of Man Launches Blockchain Office and Sandbox

Digital Isle of Man (Isle of Man) announces the launch of a Blockchain Office and Isle of Man Blockchain Sandbox to provide regulatory assistance to blockchain businesses.

https://www.digitalisleofman.com/news/digital-isle-of-man-launches-blockchain-office-and-sandbox/

Online Bank Chime Is Close to New Funding at a $1.5 Billion Value

Chime, an online bank appears to be raising $300 million at a $1.5 billion valuation which is triple the valuation at its last funding round in May.

https://www.bloomberg.com/news/articles/2019-02-05/online-bank-chime-is-said-to-near-funding-at-1-5-billion-value

CFPB Proposes to Relax Payday Loan Regulation

The Consumer Financial Protection Bureau has proposed amending the 2017 Payday Lending Rule, and eliminating the “ability to pay” requirement.

https://www.consumerreports.org/consumer-financial-protection-bureau/cfpb-bids-to-relax-payday-loan-regulation/

BB&T to buy SunTrust in all-stock deal worth $66 billion that will create the sixth-largest US bank

BB&T to buy SunTrust for $28.24 billion in an all-stock deal which the companies are calling a merger of equals.

https://www.cnbc.com/2019/02/07/bbt-and-suntrust-to-combine-in-an-all-stock-merger-of-66-billion.html

UK’s OakNorth targets U.S. after $440 million SoftBank cash injection

OakNorth raises $440 million from SoftBank and Clermont Group and plans to launch in the U.S. initially focusing on lending partnerships with banks.

https://www.reuters.com/article/us-oaknorth-fundraising-softbank-group/softbanks-vision-fund-to-invest-440-million-in-uk-start-up-oaknorth-source-idUSKCN1PW2H5

ECB chief says instant payments could break Visa/Mastercard duopoly

The European Central Bank is floating the idea of using instant payment rails to link up national card schemes in effect creating a pan-EU brand that can travel across borders.

https://www.finextra.com/newsarticle/33339/ecb-chief-says-instant-payments-could-break-visamastercard-duopoly

U.S. consumer credit tops $4 trillion for the first time in December

In 2018, consumer credit credit grew by $179 trillion to reach $4.01 trillion; revolving credit was up by $20.6 billion and nonrevolving credit up by $158.4 billion.

https://www.marketwatch.com/story/us-consumer-credit-tops-4-trillion-in-december-2019-02-07?siteid=rss&rss=1

Sonic Branding Continues to Gain Popularity as Mastercard Launches Its Own Sound

Mastercard has released its own sonic branding, a new sound that will help consumers recognize the brand when they make purchases with their Mastercard.

https://www.adweek.com/brand-marketing/sonic-branding-continues-to-gain-popularity-as-mastercard-launches-its-own-sound/

Singles-Shaming Bank App Revenge-Shamed for Using Fictional Numbers

Revolut has been referred to the Financial Conduct Authority for making up numbers regarding single meal purchases on Valentine’s Day in 2018.

http://www.gizmodo.co.uk/2019/02/singles-shaming-bank-app-revenge-shamed-for-using-fictional-numbers/