FinTech Futures: Top five news stories of the week – 21 June 2024
Here’s our pick of five of the top news stories from the world of finance and tech this week, featuring Société Générale, Ageras, Apple, NatWest, Laybuy, Shine, JP Morgan and more.
JP Morgan and WeRealize settle Viva Wallet lawsuit
Viva Wallet shareholders reach court settlement
The High Court in London delivered its final ruling this week regarding JP Morgan, WeRealize and their shared ownership of Greek fintech firm Viva Wallet.
The development brings to a close a legal dispute that commenced in February in which Viva chief Haris Karonis accused the Wall Street firm of attempting to dampen the fintech’s value and limit its growth into new markets.
The defendant quipped back that WeRealize was infringing its pre-agreed rights as a shareholder of Viva Wallet, in which it first acquired a 48.5% stake in December 2022.
Delivering her verdict on the case this week, Judge Clare Moulder accepted both parties’ arguments and proactively set out specific measures that seek to ensure the accurate valuation and growth of Viva Wallet.
BNPL firm Laybuy’s search for new buyer results in Deloitte receivership
New Zealand-headquartered buy now, pay later (BNPL) firm Laybuy entered into a receivership this week after its search for a new buyer fell flat.
Included in the receivership, which came into effect on 17 June, are Laybuy Group Holdings Limited, Laybuy Holdings Limited and Laybuy Australia Pty Limited.
David Webb and Robert Campbell of Deloitte New Zealand have been named as receivers and managers of Laybuy Group Holdings Limited and Laybuy Holdings Limited, while Glen Kanevsky and Jason Tracy of Deloitte Australia have been appointed to Laybuy Australia Pty Limited.
According to Deloitte, the receivership was made “at the request of the companies’ directors, following efforts to seek additional investment and a sale of the business and/or assets”.
Apple to discontinue pay later service in the US
Apple cancels Pay Later service in US
Apple is winding down its buy now, pay later (BNPL) service in favour of a new instalment loan offering set to arrive “later this year”.
Although first debuting Apple Pay Later in the US just 15 months ago, the tech giant now appears to be pivoting its interests in consumer lending towards an instalment loan offering, with plans to action its arrival through a string of global partnerships.
As a result of the impending arrival of this offering, Apple says it will “no longer offer Apply Pay Later in the US”, according to reports.
Société Générale sells neobank Shine to Danish fintech Ageras
The French banking giant first acquired a majority stake in Shine – a freelancer and small business-focused neobank – in 2020 as part of a drive to establish itself in the neobanking market.
However, it emerged in January this year that the group was seeking a buyer for Shine, as first reported by Les Echos.
Investcorp-backed Ageras’ purchase of the neobank, for an undisclosed sum, follows through on its promise made last week to execute “1-2 major acquisitions before a potential IPO in 2026”.
The deal will merge Shine’s banking products, including business accounts, debit cards and a co-pilot solution, with Ageras’ accounting, banking and business software solutions, while also expanding its customer count by over 100,000.
Sainsbury’s sells core banking business to NatWest
Sainsbury’s sells banking business to NatWest
British supermarket group Sainsbury’s announced this week that it is selling the personal loan, credit card and retail deposit portfolios of its core banking business to NatWest Group.
The deal will see £2.5 billion of gross customer assets transferred to the high street lender, including £1.4 billion in unsecured personal loans and £1.1 billion in credit card balances, alongside around £2.6 billion in customer deposits.
As part of the transaction, which is expected to close during the first half of 2025, NatWest will take on around one million new customer accounts.
Sainsbury’s has been looking for a buyer for the business since January when it first announced its intention to wind down certain areas of its banking endeavours.
