FinTech Futures: Top five stories of the week – 27 October 2023
Here’s our pick of five of the top news stories from the world of finance and tech this week.
Monese drops Thought Machine’s core banking solution Vault in favour of homegrown XYB platform
Monese switches from Thought Machine to XYB core
UK digital bank Monese is parting ways with Thought Machine three years after signing up for its Vault core banking platform, with the company instead implementing new core tech developed in-house by the company’s recently launched fintech subsidiary XYB.
Monese first tapped Thought Machine for its cloud-based Vault offering in October 2020 in a highly publicised deal. The agreement included the migration of the bank’s customer base and technology infrastructure to the new platform.
Since then, Monese has made its own move into the digital core banking space, launching XYB, a fintech subsidiary that it describes as “an end-to-end ‘coreless’ banking platform provider”, in May this year.
Investec (which is an investor in Monese) was the inaugural customer to leverage the XYB banking platform, and now it seems Monese itself is looking to use its self-built tech to power its own platform.
French paytech Worldline’s shares tumble after company revises guidance
Paris-listed payments firm Worldline’s shares plunged almost 60% after the company lowered its revenue expectations for 2023 in its Q3 earnings report, citing tough macroeconomic conditions as the leading factor.
As part of its revised guidance for 2023, Worldline states it now expects 6% to 7% in organic growth with respect to revenue, as opposed to its previous forecast of 8% to 10% growth for the year.
It attributes the revision to a “much tougher macro context” in the second half of 2023, including economic slowdown in its core geographies – in particular Germany – as well as shifts in consumer behaviour from “discretionary to non-discretionary spendings”, which are impacting its growth and profitability.
Worldline also highlights temporary challenges within the company, including the termination of some of its merchant relationships following an assessment of associated risks and costs, and a low conversion of opportunities seen in its financial services division.
Coop taps Additiv to launch new financial services app Coop Finance+
Coop launches Coop Finance+ with tech partner Additiv
Coop, one of Switzerland’s largest retail and wholesale companies, has tapped embedded finance fintech Additiv to launch its new financial services app Coop Finance+.
Through the partnership, Coop leveraged Additiv’s cloud-based API platform to design and develop its “super-app” to provide banking services, payments, and pension solutions.
Initially, Coop Finance+ will offer banking services powered by Hypothekarbank Lenzburg, and individual pension products with Vanguard, OLZ, Liberty Vorsorge and Glarner Kantonalbank, with other digital financial products set to roll out in the coming months.
Customers will be able to open savings accounts, make online payments, and invest in Pillar 3a retirement plans.
Morgan Stanley appoints Ted Pick as new CEO
Morgan Stanley has appointed its current co-president Edward (Ted) Pick as its new chief executive officer (CEO) and member of its board of directors, effective 1 January 2024.
James Gorman will transition to the role of executive chairman after serving as CEO of the company for the last 14 years. Commenting on his decision, Gorman says he feels “strongly that now is the time to step aside”. He first revealed his intention to step down at the firm’s 2023 annual general meeting of shareholders.
On Pick’s appointment, he adds: “I have worked side-by-side with Ted since the financial crisis. He is battle-tested, understands complex risk, and works very effectively not just in the US, but around the globe.”
US fintech start-up Aleph emerges from stealth with $16.7m funding
Aleph co-founders Santiago Perez De Rosso and Albert Gozzi
New York-based fintech start-up Aleph, which is building a financial planning and analysis platform, has emerged from stealth with $16.7 million in funding.
The round was led by Bain Capital Ventures, with participation from existing backers Khosla Ventures, Picus Capital and Y Combinator, as well as angel investors and current customers.
Founded in 2020 by CEO Albert Gozzi, Aleph operates a financial planning and analysis platform to help businesses manage and gain insights from their data “in real time”. It allows companies to integrate all their sources of data under one platform “in minutes”, coupled with an artificial intelligence (AI) dashboard and a web app for collaborating and planning.
