Top 10 Fintech News for the Week Ending February 26, 2022
This week, many of us were glued to our televisions (or TikTok videos) as we watched in horror as Russia invaded Ukraine. Fintech, particularly crypto, will be in the spotlight here as sanctions start to bite, so we have some stories on that. We also share thoughts from the former FDIC chief innovation officer, SoFi’s latest acquisition, Citi’s decision on overdrafts and more. Here are what I consider to be the top ten fintech news stories of the past week.
Why I Quit as FDIC Chief Innovation Officer: Bloomberg Opinion’s Technophobia – Former FDIC chief innovation officer Sultan Meghji wrote a scathing op-ed about systemic issues inside from the FDIC. There is resistance, even hostility, to any new innovation and there is a distinct lack of expertise in the workforce.
SoFi to buy banking infrastructure company Technisys for around $1.1 billion from The Wall Street Journal – SoFi completes its second $1 billion acquisition (following the acquisition of Galileo in 2020), Technisys SA, the provider Miami-based banking software company that has focused much of the attention in Latin America. SoFi will use core banking software to overhaul its own systems now that it’s a bank.
Citi Becomes Largest US Bank to Eliminate Overdraft Fees – The third-largest US bank by assets has decided to eliminate all overdraft fees by this summer. Citi will become the largest bank to eliminate these fees, although it is a much lower percentage of revenue than at Chase, B of A or Wells.
Russian invasion of Ukraine and Axios fintech industry – This is a good analysis of the impact of the Russian invasion on the fintech industry and how crypto could be a way to avoid penalties.
ECB urges Bloomberg to regulate crypto in wake of Russian sanctions – Speaking of crypto, European Central Bank President Christine Lagarde said it’s extremely important that crypto legislation is passed soon to help to prevent Russia from evading economic sanctions.
Warren Buffett drops Visa and Mastercard shares, buys Nubank from Finextra – Berkshire Hathaway recently sold $3.1 billion worth of Visa and Mastercard shares while adding $1 billion to its stake in Nubank. Last summer, Hathaway invested $500 million in Nubank’s Series G funding round, its last as a private company.
LendIt’s Brustkern brings you to ETHDenver from LendIt Fintech News – LendIt Fintech CEO Bo Brustkern spent some quality time at one of the world’s biggest crypto events, ETHDenver, last week and came away more committed to adopting web3 innovation.
How FinTech Consolidation Could Change the Banking Landscape for American Banker – Miriam Cross examines many recent fintech M&A deals and considers what could be next as cash-rich fintech companies seek to expand their capabilities.
Clearco Co-Founder Andrew D’Souza Steps Back as Michele Romanow Takes on TechCrunch’s CEO Role – In the seven years since its launch, Clearco has become a true fintech success story. Worth $2 billion in their last funding round, the alternative capital provider has made some changes to its leadership with Michele Romanow now CEO, and co-founder (and former romantic partner) Andrew D’Souza rising to the position of Executive Chairman.
Spring Labs Partners with TransUnion for DeFi Credit Checks from LendIt Fintech News – We provide a deep dive into Spring Labs and TransUnion’s recent announcement on their partnership to bring KYC and credit scoring to DeFi.
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.