Lunar launches Standalone BaaS Business and says it can rival Bank Revenues
The Future Of Banking
𝕒 𝕞𝕦𝕝𝕥𝕚-𝕞𝕖𝕕𝕚𝕒 𝕡𝕝𝕒𝕥𝕗𝕠𝕣𝕞 𝕕𝕖𝕕𝕚𝕔𝕒𝕥𝕖𝕕 𝕥𝕠 𝕥𝕙𝕖 𝕗𝕦𝕥𝕦𝕣𝕖 𝕠𝕗 𝕓𝕒𝕟𝕜𝕚𝕟𝕘
REPORT
👀 NEWS HIGHLIGHT
Klar announced that it will enter the corporate segment by acquiring the Mexican assets of Tribal, a finance company specializing in business services. According to Klar, its objective is to offer a financial operating system for small and medium-sized companies (SMEs).
Klar currently operates through its Sociedad Financiera Popular (Sofipo) and as an Institución de Fondos de Pago Electrónico (IFPE). With this portfolio acquisition, the finance company will seek to integrate the companies that had Tribal's financing into its portfolio of other services in the future.
📊 INFOGRAPHIC
📰ARTICLE OF THE WEEK
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🔦 DIGITAL BANKING HIGHLIGHTS
⭐️ UK digital bank Zopa raises €80M ahead of current account launch.
🌎 REGIONAL HIGHLIGHTS
UK 🇬🇧
Revolut faces UK fraud lawsuit after scammer stole €700,000. The firm faces a UK lawsuit over a €700,000 ($735,880) fraud claim by Serbian company Terna Energy Trading d.o.o, raising concerns about scammers on the FinTech platform. Terna alleges that the account belonged to a 22-year-old Czech fraudster.
Revolut and Monzo see spike in fraud complaints. Two of the UK’s challenger banks have faced a surge in fraud complaints, with the Financial Ombudsman Service reporting 2,888 complaints about Revolut and 1,864 about Monzo in the six months to June end this year.
Revolut boss says listing on London stock market is ‘not rational’. Stamp duty on shares means Britain ‘can’t compete’ with US, he warns: “The problem with the UK – if you think about the UK versus the US – is the US is much more liquid [and] trading in the US is free. Explore now – Click here to learn more
Revolut partners with Metomic to strengthen SaaS data security, gaining visibility and control to foster innovation while ensuring data protection. This collaboration aims to enhance Revolut's security and reduce risks across its SaaS environment.
Ordo joins Charity Finance Group to expand open banking donations for charities. As a Corporate Partner, Ordo will use Open Banking to improve donation access, ensuring more funds reach vital causes. This offers charities faster, secure, and transparent transactions while reducing traditional fees that cut into donations.
UK specialist mortgage lender Vida Homeloans secures full banking licence, rebrands as Vida Bank. With its new banking licence, the company will operate as a specialist mortgage bank offering residential and buy-to-let mortgages. The new bank plans to launch a range of savings products “before the end of the year”.
Third Financial launches customisable mobile app. It provides centralized access to all investments with real-time valuations, detailed analysis, digital document delivery, advanced security features, and full customization options. Read on
Chetwood Bank partners with Sandstone Technology to accelerate the launch of a new digital savings platform. This collaboration between Chetwood Bank and Sandstone Technology delivers a fully integrated savings solution, meeting urgent market demand and compliance requirements in record time.
WealthKernel taps Griffin to expand Its product portfolio with savings accounts. This partnership enables WealthKernel to embed savings accounts into its API, offering FinTechs and wealth managers a streamlined way to support diverse wealth-building goals and timelines.
Santander and Pemberton agree on a strategic partnership to launch Invensa, a new company focused on providing large and mid-sized corporates with supply chain inventory solutions, enabling scalable, efficient inventory financing and management.
NatWest Group Innovation team launches new FinTech Growth Programme. The programme supports NatWest’s ambition of leading the future of banking with the hope that some of the participants will help drive the bank’s innovation pipeline. Read on
Gatehouse Bank enters home finance partnership with ColCap UK. The collaboration with Gatehouse Bank allows ColCap UK to diversify and expand into new market segments. The agreement also includes a sale of circa £100 million of Gatehouse Bank’s beneficial interest in its existing home finance portfolio.
UK FinTech Stenn to 'defend against' HSBC Innovation Banking application to put the startup into administration. The application consists of two filings, which were both submitted recently, relating to two companies under the wider company umbrella of the Stenn group. In each filing HSBC Innovation Bank is listed as an applicant for Stenn.
Zopa Bank raises $86 million ahead of current account launch. Zopa did not disclose its valuation, but said it retained its $1 billion unicorn status. “This capital allows us to maintain the growth trajectory that we have been on,” Chief Executive Officer Jaidev Janardana said in an interview with Bloomberg News.
EUROPE 🇪🇺
Troubled FinTech Solaris in search of fresh funding. German banking-as-a-Service platform Solaris is reportedly seeking an emergency cash injection of £100 million and will put the business up for sale if it fails to raise fresh funds.
ECB publishes second progress report on digital euro. Since the first progress report, the ECB has updated its digital euro rulebook to harmonize payments across the euro area and concluded a call for applications to select providers of digital euro components and services.
Plumery enhances mobile banking applications with UI/UX Factory. The software has been pre-integrated in Plumery’s existing digital banking services, and aims to reduce time-to-market for banking app development while maintaining control over design and functionality.
Santander launches online pension that offers up to £1,000 cashback. The bank has introduced a self-invested personal pension (SIPP) with up to £1,000 cashback for investments made by April 25, 2025. The SIPP offers customers greater control over pension savings, with an advisory service planned for next year.
Revolut applies for New Zealand Banking license and launches eSIM in Singapore Revolut has applied to the Reserve Bank of New Zealand for a banking license, as it aims to challenge banks' savings and lending products. Additionally, the company has launched eSIMs in Singapore, allowing customers to avoid unexpected roaming charges while traveling in the region.
USA 🇺🇸
Telcoin targets first US regulated digital asset bank with Nebraska hearing. Telcoin’s application for a Digital Asset Depository Charter has already cleared a significant hurdle. In September 2024, the Nebraska Department of Banking and Finance confirmed the application’s completeness.
Banks hit credit card users with higher rates in response to regulation that may never arrive. Banks that issue credit cards used by millions of consumers raised interest rates and introduced new fees over the past year in response to an impending regulation that most experts now believe will never take effect.
Barclays reaches $19.5 million settlement over a securities fraud lawsuit in Manhattan. Shareholders claimed they lost money after Barclays sold $17.7 billion more debt than regulators allowed. The bank admitted the overissuance was a preventable mistake.
American Airlines chooses Citi as sole credit card partner, drops Barclays. American Airlines expects annual payments from its co-branded credit card and other partners to grow 10%. In the year through Sept. 30, these deals generated $5.6 billion.
EQT is working with investment bank Financial Technology Partners / FT Partners to find buyers for payments-services provider Banking Circle, which could fetch $𝟯 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 𝘁𝗼 $𝟰 𝗯𝗶𝗹𝗹𝗶𝗼𝗻. A sales process for the Luxembourg-based company is slated to kick off in the first quarter of 2025, according to a source who spoke to Bloomberg on condition of anonymity, the details are not public.
ASIA
Singapore central bank fines JPMorgan $1.8 million over misconduct by relationship managers. The Monetary Authority of Singapore (MAS) said that JPMorgan's relationship managers provided inaccurate or incomplete information to clients in 24 instances of over-the-counter bond transactions, charging them spreads above the agreed rates.
Backbase and Seven join forces to drive digital banking innovation in MEA. Through this partnership with Seven, Backbase aims to further extend its reach and impact in the region, leveraging local knowledge and technical expertise to deploy next-generation banking solutions.
Deutsche Bank launches merchant solutions in Asia Pacific, empowering eCommerce growth. The solutions provide the bank’s clients with a global payment acceptance platform and access to a diverse range of local payment methods in Australia, India, Indonesia and South Korea.
Brighty raises $10M for crypto-integrated digital banking platform. Brighty is a personal finance app that combines traditional digital banking experience with stablecoins and decentralised finance. The funds will be used to expand the company’s presence in Europe and the UK.
MOVERS AND SHAKERS
Sabadell names COO to run UK unit TSB amid BBVA takeover bid. Banco Sabadell has named its chief operating officer, Marc Armengol, to run its UK unit TSB, whose future with the lender is unclear if Sabadell gets taken over. The decision to appoint Armengol was formally taken by TSB’s board.
Revolut snaps up mortgage pioneer from rival Avant Money. The company has hired Stephen McCormick, one of the architects of Avant’s successful commercial strategy in Ireland, to build out its mortgage team and develop its product set across Europe in 2025, The Sunday Times has learnt.
Revolut has made two big-name hires as Britain’s biggest FinTech expands its board after receiving a UK banking licence: Fiona Fry and Sir Sir Peter Estlin are set to join the company's UK board. The move is the latest by Revolut as it strengthens its operations amid a transition to becoming a fully-licenced bank.