Legacy banks are not catching up - (30/01)
Hello TWIF UK & Europe friends,
Despite common rhetoric that incumbent banks are catching up or have caught up with challenger banks, a follow up study by Built for Mars (link in the Long reads section below) reveals they are in fact not catching up.
Putting out a call for our most creative community members!
After many requests we’re (finally) putting together One Fintech Swag Store To Rule Them All. Our team has already designed some swag - but we want to hear from *you.*
We’re holding a design contest for the most creative fintech swag ideas - hats, sweatshirts, yoga mats, furbys, doilies, mink slippers… It's all fair game.
All winning entries (those that make it to the store), will get 2x free Fintech Formal tickets, a year of TWIF Premium membership, design credit on the website, and a free copy of the item you design!
Show us your creative side by sharing your best fintech swag ideas here.
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Tweet of the week 🦉🏆
Highlights below of deals since the last post in the fintech space across the UK & Europe.
🇪🇺 Supply chain lender Twinco Capital raised a $12m equity and debt round led by Quona Capital and included Working Capital, Mundi Ventures and Finch Capital.
🇪🇺 Regtech Salv, founded by three Wise alumni raised a €4m seed round led by ffVC.
🇪🇺 Financial management startup Scaleup Finance raised a £6.4m seed round led by PROfounders and included Fin Capital, Clocktower and CircleRock.
🇪🇺Regtech Hawk AI raised a $17m Series B led by Sands Capital and included DN Capital, BlackFin Capital, Picus Capital and Coalition.
🇪🇺 Beginner investment platform Beatvest raised a €1.3m seed round.
🇬🇧 Rent to own startup Keyz raised a £3m seed round led by Axeleo Capital and Outward VC.
🇬🇧B2B BNPL provider Tranch raised $50m in debt from Clear Haven Capital and $50m in equity from YC, Global Founders Capital and Soma Capital.
🇬🇧 Automotive fintech Caura raised £4m from Lloyds Banking Group.
🇬🇧 Neobank Monument has sold a 9% stake to Dubai Investments.
🇬🇧 Crypto asset recovery specialist Asset Reality raised a $4.9m seed round led by Framework Ventures.
🌍 Fraud monitor Sandbar raised a $4.8m seed round.
Challenger Banking 🚀
🇪🇺 Neobroker Trade Republic has submitted an application to become a bank.
🇪🇺 Airwallex is expanding its team in Lithuania to support further EMEA growth.
🇬🇧 Revolut has opened the waitlist for its highest tier membership plan, Ultra.
🇬🇧 An open letter calling on more credit access for SMEs has been signed by a number of fintechs including Codat, Atom Bank, Funding Circle, Iwoca and Allica Bank.
🇬🇧Q4 2022 marked a high for the Current Account Switch Service, no doubt buoyed by the generous sign up offers of up to £200. Santander and HSBC were the most switched to and Starling and Monzo having the highest net gains.
🇬🇧 Atlantic Money has complained to the CMA that its competitor Wise delisted it from its price comparison search engine.
Digital Assets ₿
🇪🇺 The ECB is considering a digital euro app to standardise the approach for intermediaries to present to consumers.
🇪🇺 Banks in Europe that hold crypto are to face the highest risk weightings against their holdings.
🇪🇺 Coinbase is fined €3.3m for failing to register with the central bank in Netherlands.
🇬🇧 UK Treasury is hiring for a leader for its CBDC project.
🇬🇧 Crypto custody provider Copper has appointed former chancellor Philip Hammond as its chairman.
🇬🇧 The FCA referred some crypto companies who requested registration to law enforcement due to links to financial or organise crime.
🌍 Binance's bank partner is retreating from the digital asset space and will only process transactions over SWIFT that exceed $100,000. The exchange also confirmed it accidentally co-mingled collateral and customer funds.
🌍 Gemini is laying off another 10% of staff.
🌍 Circle has blamed the SEC for its failed $9bn SPAC due to a slow response to its deal review.
🌍 Bankrupt crypto lender Celsius is allowed to process withdrawals for customers who transferred assets to the platform after it filed for bankruptcy protection.
🌍 Crypto exchange Luno is cutting 35% of staff.
🌍 The SEC has charged the Mango Markets attacker of manipulating the price of a security.
Traditional Banking 🏦
🇪🇺 Commerzbank is suing EY over its €200m Wirecard loss.
🇬🇧 NatWest is shutting 23 bank branches.
🌍 Morgan Stanley has fined its bankers for conducting business over Whatsapp, in breach of regulations which are increasingly being cracked down.
Fintech Infrastructure 🚧
🇪🇺Regulatory monitoring platform SparQ has been acquired by Corlytics for €5m.
🇪🇺 Solaris is to face new restrictions by the regulator Bafin due to deficiencies in risk management and reporting.
🇬🇧 The Strategic Working Group working on behalf of the FCA on the future of open banking has found key players have limited agreement. TPPs wanted a broad expansion of data openness while retail banks were focused on commercial returns.
🇬🇧 Former president of Mastercard UK Marion King is to take over as chair of the OBIE.
🇬🇧 Capital market fintechs PrimaryBid and Winterflood are partnering to offer the others services to clients.
🌍 Marqeta announced its CPO will become its new CEO.
🇪🇺The German antitrust regulator is investigating PayPal for obstructing rivals and restricting price competition for merchant services.
🇪🇺 Klarna launched "Money Story" a personalised summary of 2022 spending habits akin to Spotify.
🇪🇺Mollie is to name former Klarna CTO as its new CEO.
🇬🇧 HMRC has processed over £10.5bn via its open banking partner Ecospend.
🌍 Stripe has become Amazon's strategic payments partner in the US, Europe and Canada. Stripe will also expand its use of AWS. The payments company has also set a 12 month timetable for a decision on its IPO.
🌍 New e-commerce payment processor Wafi, founded by former Plaid product lead Victor Umunze, launched.
🌍 Australian BNPL provider Zip is forecasting to break even by the end of the year.
🌍 One click checkout provider Bolt is laying off another 10% of staff.
Regulatory Corner 🔎
🇬🇧 The FCA is warning firms to adequately prepare for its new Consumer Duty rules as it noticed some failing to properly prepare with the right resources.
Longer reads 📜
- 900 days of progress - Built For Mars
- Banks Launch “Wallet” (again) - Tom Noyes
- The Bank that Never Sold - Marc Rubinstein
- Sea Change - Howard Marks, Oaktree Capital
👍 👎 Have feedback for us? Let us know!
See you next week!