Top 10 Fintech News for the Week Ending February 12, 2022
It was a relatively slow news week, at least compared to the frenetic pace of the first few weeks of the year. No hit announcements this week, but news has emerged from Silvergate Bank, the SEC, advocacy groups complaining about high interest loans, Sequoia India making a big web3 bet and Chase is confident that they can outperform fintechs. Here are what I consider to be the top ten fintech news stories of the past week.
The road ahead for Meta’s Diem under American Banker’s ownership of Silvergate Bank – Now that Silvergate Bank owns Diem’s assets, what will it do with them? Launch a stablecoin of course. Another great article by Penny Crosman on what this will mean and how it will come to fruition.
Crypto Platforms Fear Financial Times New SEC Rules on Exchanges – The SEC is proposing new rules on exchanges that could impact the crypto space and they are seeking public comment on these rules.
Advocacy groups call on regulators to ban high-interest FinTech loans from PYMNTS.com – A week ago, a group of advocacy groups sent a letter to the OCC, FDIC and the CFPB to complain about predatory lending and the banking partnership model. He names what he considers to be the most serious offenders but, as is often the case when these people complain about high cost credit, the letter offers no remedy other than a ban on the products of high interest loan.
Sequoia makes a big bet on Web3, leading a $450 million investment in CNBC’s Polygon blockchain – Sequoia Capital India has led a huge investment in the Polygon layer two protocol as it bets on a bright future for web3 . The vision according to co-founder Sandeep Nailwal is for Polygon to become a decentralized version of AWS.
Why Chase’s Technology Can Compete (and Surpass) The Fintechs of The Financial Brand – Chase is the nation’s largest “digital bank” with 58 million active users, which brings unique advantages. But I would say that fintechs move much faster and are more responsive to the needs of their users (think overdraft fees).
American Express launches its first all-digital consumer checking account from TechCrunch – American Express has launched a pretty decent digital bank account called American Express Rewards Checking that provides rewards points for debit card transactions, has no fees and pays an interest rate of 0.5%.
SoftBank-backed fintech DriveWealth adds crypto to support CNBC’s Coinbase ‘unsustainable’ fees – DriveWealth has become the global leader in integrated finance for stock trading and now they’re turning to the crypto. CEO Bob Cortright hinted that when I had him on my podcast last month, DriveWealth will be offering bitcoin and ethereum trading to its partners in April or May.
GoCardless joins the unicorn club after sealing $312 million in funding from AltFi – GoCardless, the UK-based payments fintech that calls itself “the world’s leading network for direct banking payments” has closed its series G of $312 million, which is comfortably more than it had raised in all previous rounds combined.
Betterment gets into crypto with acquisition of Seattle-based startup Makara from GeekWire – Betterment, one of the world’s largest robo-advisors with $32 billion under management, has acquired Makara, a Seattle-based startup that creates “thematic baskets” for crypto investors.
DoorDash Launches Funding Arm to Offer Bloomberg Restaurant Loans – DoorDash has become the latest non-fintech to launch a funding arm with the announcement of DoorDash Capital. DoorDash merchants will be able to apply for in-app financing using technology powered by Parafin.
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Peter Renton is President and Co-Founder of LendIt Fintech, the world’s first and largest fintech-focused digital media and events company. Peter has been writing about fintech since 2010 and is the author and creator of the Fintech One-on-One Podcast, the first and longest running fintech interview series. Peter has been interviewed by The Wall Street Journal, Bloomberg, New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, Financial Times and dozens of other publications.