Issue #330 September 23rd, 2021

More large fintech companies like Square, PayPal and Robin Hood added crypto wallet functionality to their apps. With PTG Pactual a first Brazilian bank is offering that feature. This is increasing pressure on incumbent banks. Soon we will see more of that in retail banking accounts of large consumer banks like UBS, Bank of America, Deutsche Bank, ING Diba or BNP Paribas. There is no crystal ball needed to predict that this will happen in 1-2 years of time from now.

Top Stories

    Consumers are flocking towards BNPL with over half (54 per cent) saying that BNPL will replace their use of credit cards, according to research from Marqueta, which also found more than one in three (35 per cent) saying they had tried BNPL for the first time during the pandemic. The listed card issuing platform surveyed 1,000 UK consumers and found that despite recent warnings from the likes of Citizen’s Advice that BNPL can provide a slippery slope towards debt for some users, seven out of 10 consumers prefer BNPL options to credit cards due to affordability and ease of management.

Podcasts & Videos

    Tune in to listen to his insights into how technology and regulations are changing the world of asset management, why third-party integrators of multiple specialist solutions are the way forward, and what countries are effectively fostering RegTech growth and adoption. Join us for an extremely lively and thought-provoking chat with Funds Europe’s Nicholas Pratt where we discuss:

Crypto

FinTech

Banking

    Beijing wants to break up Alipay, the hugely popular payments app owned by Jack Ma's Ant Group, and create a separate app for the company's highly profitable loans business, the Financial Times reported on Sunday. The plan will also see Ant turn over the user data that underpins its lending decisions to a new credit scoring joint-venture, which will be partly state-owned, the newspaper reported, citing two people familiar with the process.

    The MUFG sale is not a surprise. Bloomberg reported as recently as Friday that Mitsubishi was considering selling its 305-branch U.S. presence.The deal — the largest to be announced in the banking sector so far this calendar year — breaks down to $5.5 billion in cash and 44 million U.S. Bank shares, a price that represents 1.3 times MUFG's tangible book value. It would push U.S. Bank to about $664 billion in assets, according to The Wall Street Journal.

    JPMorgan Chase has launched its new digital banking brand ‘Chase’ in the UK in a bid to take on the likes of Monzo and Starling Bank at their own game. The project has been underway for some time with news of the launch being revealed just a few months after the US bank acquired digital wealth manager Nutmeg. The banking giant, which claims the title of the fourth largest bank in the world and the largest in the USA, will initially offer a free basic current account and budget features.

    JPMorgan Chase has acquired the college financial planning platform Frank, the bank announced in a press release Tuesday. The outlet allows students to access a streamlined application process for student aid, as well as financial advice and a marketplace to find discounted online classes for college credit.

    Deutsche Bank has acquired Berlin-based payment service provider Better Payment to expand its market share in the fast-growing market for online payment processing and acceptance.

    U.S. Bancorp USB has entered into a definitive agreement to acquire MUFG Union Bank’s core retail banking operations from Mitsubishi UFJ Financial Group MUFG for a cash-and-stock transaction valued at $8 billion, in a bid to boost its presence on the West Coast. The deal’s closure, expected in the first-half of 2022, is subject to the satisfaction of customary closing conditions and regulatory approvals. No shareholder approvals are required from both companies.

Innovation

    Quantum computers have the potential to shake up finance, cybersecurity and other sectors. But investors hoping to profit from the new technology must be patient – and separate reality from hype.

    The financial services provider plans to work with Microsoft and Google to support its public cloud infrastructure. Wells Fargo is embarking on a decade-long marathon to modernize its technology infrastructure, with the goal of operating multiple clouds alongside third-party data centers, the financial services company announced last week.

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