FinTech Futures: Top five stories of the week – 29 September 2023
Here’s our pick of five of the top news stories from the world of finance and tech this week.
US Treasury taps JP Morgan for account validation
US Treasury taps JP Morgan for account validation
The bank has signed a five-year deal with the government department to provide its outgoing payments – thought to be $5.27 trillion in 2022 – with end-account validation services.
The deal is part of the US Treasury’s move to close the $247 billion it experienced last year in financial losses as a result of “improper payments”, where payees were either overpaid, underpaid or received the wrong payment.
Using a mix of both its own data and industry data, the bank will seek to ensure that all of the Treasury’s outgoings arrive within the intended account.
Fujitsu joins Hokuhoku Financial Group to explore genAI
The pair announced their intention this week to run trials that would explore the use of generative AI within banking operations.
The trials will be maintained by Hokuriku Bank and Hokkaido Bank, two of the group’s subsidiaries, which will leverage the Fujitsu Kozuchi AI platform to create programmes, test data and rectify existing bugs.
They will also apply the platform to managing internal inquiries and generating various business documents.
The trials are expected to conclude next month, after which both banks hope to have determined “promising” use cases to ensure “efficient and accurate” application of the new technology within their operations.
Mercedes-Benz drives in-car fuel payments with Mastercard
Mercedes-Benz partners Mastercard for in-car payments
Mercedes-Benz has formed a new partnership with Mastercard this week to enable its customers in Germany to complete fuel payments from within their car.
Available to mutual customers of the partnership, the functionality seeks to instigate biometric-enabled payments through the car’s Pay+ payment service, which was first introduced in March, and is currently available at 3,600 service stations across the country.
The announcement follows the car manufacturer’s existing partnership with Visa, and is a response to the growing demand of customers to pay for their car’s refuelling bill directly from the in-built infotainment system.
Deutsche Bank landed with $25m fine for AML violations and ESG “misstatements”
The bank’s subsidiary, DWS Investment Management Americas Inc. (DIMA), has been hit with a penalty from the US Securities and Exchange Commission (SEC) this week on two separate enforcement actions.
The first concerns the subsidiary’s inaction on creating a mutual fraud anti-money laundering (AML) programme, while the second relates to “materially misleading” statements it made on how it incorporates ESG factors into research and recommendations for ESG products.
DIMA has neither agreed to or denied the charges, but is now set to pay a $6 million penalty for its AML inaction, and a further $19 million for its misleading ESG statements.
CardsPal founder and CEO steps down three months after Utu acquisition
CardsPal founder and CEO Saim Yeong Harng steps down
Having led the Singapore-based lifestyle platform for the past four years, Saim Yeong Harng confirmed via LinkedIn this week that he is to step down from the post.
He described his tenure will the company as an “exhilarating journey” with a variety of highs and lows. “We made mistakes, but we also achieved remarkable feats,” his announcement reads.
Yeong Harng’s departure comes three short months after CardsPal was acquired by the travel fintech Utu following its $33 million Series B in June.
