AI 🤖💲 Fintech (TWIF 11/15)

Hello Fintech Friends,

Welcome to the 2,179 new readers who’ve joined us since last week. You’re joining 137,000+ other subscribers surfing the AI wave. Today's newsletter is brought to you by our friends at Silicon Valley Bank.

📢 We're launching a new podcast: In early 2025, Jillian and Julie will be talking to the biggest names at the intersection of artificial intelligence and financial services. Who do you most want to see as a guest?

(Btw... speaking of AI x fintech, check out the new Stripe launch from this week below.)

📝 We also had two new guest writeups this week:

Please enjoy another week of fintech and banking news below.

(👍👎 Have feedback for us? Let us know!)

📺

A Message From Silicon Valley Bank

What happens when the wow-factor of AI wears off?

SVB’s new Future of Fintech report identifies how a new generation of fintech companies is creating more value per dollar invested than legacy AI companies, creating waves of optimism through the space. Yet, when the novelty of a new product wanes, what will matter most? Read the Future of Fintech 2024 report

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UBS Gets Laser Eyes: Swiss bank UBS piloted a blockchain-based payment system called UBS Digital Cash, aimed at streamlining cross-border transactions for institutional clients. The system uses a private blockchain to enable instant settlement across USD, EUR, CHF, and CNY.

JPMorgan Instant Dollar-Euro Blockchain Trades: JPMorgan launched instant dollar-euro foreign exchange settlement on its blockchain platform, now branded as Kinexys. Using JPM Coin, the platform aims to streamline cross-border payments by enabling real-time transactions and settlements. Initially supporting dollar-euro trades, it may expand to other currencies in the future​.

Mexico's Government Launches App for Receiving Remittances: The Mexican government launched Finvia, a new app to simplify remittance reception for citizens. The platform is intended to reduce fees and increase accessibility for Mexicans receiving money from abroad.

BlackRock's Money Market Fund ETF Expansion: BlackRock is expanding its reach into the money market fund sector by launching new ETFs. The financial giant aims to capitalize on the high demand for short-term, low-risk investment options amid current economic uncertainties.

Federal Reserve Chair Decision Amid Political Speculation: Amid speculation of a possible return by former President Trump, Federal Reserve Chair Jerome Powell stated he has no intention of stepping down if Trump were to be reelected.

UK Financial Regulations on Critical Third-Party Providers: The UK’s financial regulators introduced new rules for overseeing third-party technology providers crucial to financial institutions, such as cloud computing services.

Metro Bank Fined for Financial Crime Lapses: The UK’s Metro Bank was fined £16.7 million over a four-year failure to adequately monitor and report financial crimes.

Hong Kong Fines Fubon Bank for Regulatory Violations: Hong Kong’s Monetary Authority fined Fubon Bank HK$4 million for violations related to money-laundering controls.

CFPB Fines Navy Federal Credit Union for Overdraft Fees: The CFPB imposed a $95 million fine on Navy Federal Credit Union for improper overdraft and "junk" fees, indicating the agency's crackdown on hidden charges in consumer banking.

April's Embedded Tax Solution: April, an AI-driven tax platform, introduced AprilPro, an embedded tax filing experience designed to integrate with financial services. By leveraging artificial intelligence and input from tax professionals, AprilPro streamlines tax preparation within partner applications, providing real-time tax insights and optimizing tax returns.

PayPal With Your Friends: PayPal launched a feature to give customers an easy way to pool money with friends and family. Rolling out globally across the US, Germany, Italy and Spain, customers can set up a pool in PayPal, invite friends and family to contribute, track group contributions and transfer funds.

Cleafy’s Fraud-Fighting AI Co-Pilot: Cleafy launched a generative AI tool designed to combat online fraud. The solution serves as a co-pilot for cybersecurity teams, utilizing AI to detect and respond to fraud attempts in real-time, thus enhancing defenses against increasingly sophisticated digital threats.

Paystack Transfers in Kenya: Paystack expanded its service portfolio with a new transfer feature for businesses operating in Kenya. This service allows businesses to send payments directly to local bank accounts, enhancing the ease and speed of financial transactions within Kenya’s digital economy.

 Visa and Affirm Partner on Flexible Card: Visa and Affirm partnered to introduce a new card that lets users toggle between paying in full or using Buy Now, Pay Later options.

📺

A Message From Silicon Valley Bank

What happens when the wow-factor of AI wears off?

SVB’s new Future of Fintech report identifies how a new generation of fintech companies is creating more value per dollar invested than legacy AI companies, creating waves of optimism through the space. Yet, when the novelty of a new product wanes, what will matter most? Read the Future of Fintech 2024 report

Want to sponsor a newsletter? See our sponsorship information here.

Nubank Reaches 100 Million Customers: Nubank, the digital bank in Brazil, surpassed 100 million customers, representing a significant portion of the adult population.

Revolut Expands Crypto Exchange in Europe: Revolut is launching its cryptocurrency exchange in 30 European Union countries, allowing users in these markets to trade a variety of digital assets.

Sure and Checkout.com Partnership: Insurance platform Sure and payment processor Checkout.com are partnering to streamline payment processing for digital insurance, aiming to offer seamless, secure payment options, improving user experience for digital insurance customers​.

American Express and MX Data Sharing Agreement: American Express signed an agreement with MX for customer-permissioned data sharing. This initiative will allow users to securely link their accounts to other financial apps, enhancing data security and access for Amex users​.

Evolve’s Pennies to Yotta and Juno Customers: Amid ongoing disputes involving Synapse, Evolve Bank is providing minimal disbursements ("pennies on the dollar") to users of fintech apps Yotta and Juno. This follows months of blocked access to customer funds.

FTC Lawsuit Against Neobank Dave: The FTC has taken legal action against Dave, a cash advance app accused of misleading marketing practices, hidden fees, and complicated membership cancellations, signaling a crackdown on deceptive practices in fintech.

Marqeta Shares Plunge: Marqeta’s stock dropped by over 30% following a disappointing financial forecast. This slump reflects investor concerns over the company’s future revenue potential and growth outlook​.

Crypto CEO Kidnapped and Ransomed: The CEO of WonderFi was kidnapped and later released after reportedly paying a C$1 million ransom.