FinTech Futures: Top five news stories of the week – 6 December 2024
Here’s our pick of five of the top news stories from the world of fintech this week, featuring Citi, Lumin Digital, Mambu and more.
Citi separates Banamex from institutional banking business in Mexico
Citi splits Banamex from institutional banking business in Mexico
Citi has announced it has completed the separation of its Mexican retail banking unit Banamex from its institutional banking business in the country, with the two units now operating as two distinct entities – Grupo Financiero Banamex and Grupo Financiero Citi México.
Citi says the split, effective 1 December, comes as the banking group “actively” works on executing its “strategic plan to simplify the firm”, which includes the “proposed IPO of Grupo Financiero Banamex”.
Citi states that the timing of the IPO will depend on “regulatory approvals and market conditions to maximise shareholder value”.
Citi says it will retain a “significant presence” in Mexico through Grupo Financiero Citi México, continuing to serve institutional clients via its full-service bank, Banco Citi México, and offering brokerage services through Citi México Casa de Bolsa.
Lumin Digital bags $160m in growth equity
Digital banking solutions provider Lumin Digital has raised $160 million in equity financing to “accelerate its strategic growth initiatives”.
The round was led by Light Street Capital, NewView Capital and Partners Group, with Velera, a payments credit union service organisation (CUSO) formerly known as PSCU, remaining Lumin’s primary investor.
In 2021, Velera made a five-year, $54 million commitment to Lumin, which brought its total investment in the company to around $125 million.
Founded in 2016, Lumin’s cloud-native digital banking solution provides real-time insights into spending and account activity, along with support for a range of payment features, such as card controls, automatic bill payments, and remote deposits.
Mambu acquires French paytech Numeral for undisclosed sum
Mambu acquires Numeral
Core banking technology vendor Mambu has acquired French paytech Numeral for an undisclosed sum as the Dutch firm “eyes market expansion”.
Founded in 2021 by CEO Édouard Mandon and Camille Tyan (now deputy CEO at Swan), Numeral offers payment technology solutions for banks and fintechs, working with leading institutions like BNP Paribas, HSBC, and Barclays to streamline payment processing through its payments hub solution and access schemes.
Mambu will now integrate Numeral’s payments platform into its own core banking offerings. Mambu CEO Fernando Zandona says the addition of Numeral’s advanced payment features “marks a considered move to deliver a more modern, comprehensive payment offering which is now an integrated part of Mambu’s product portfolio”.
MUFG offers $664m to snap up Japanese robo-advisory firm WealthNavi
Mitsubishi UFJ Financial Group (MUFG) has made a move to acquire Japanese robo-advisory firm WealthNavi for approximately JPY 99.7 billion ($664 million).
Founded in 2015, WealthNavi offers an automated platform for asset management, managing over JPY 1.3 trillion.
The solution features options for portfolio management, tax optimisation, rebalancing, and more, incorporating robo-advisors into the creation of diversified exchange-traded funds (ETFs) portfolios.
According to an MUFG statement, the financial services heavyweight believes the deal will allow for the “expansion of its asset management capabilities”, boosting its user experience by incorporating WealthNavi’s robo-advisor services into its “asset management product lineup”.
TSB names Banco Sabadell exec Marc Armengol as new CEO
TSB’s next CEO, Marc Armengol (Image: TSB)
TSB has concluded its search for a new CEO with the appointment of board member Marc Armengol, who will succeed Robin Bulloch in “early 2025”.
Bulloch is set to retire following a 45-year career in retail banking. He has spent the past five years at TSB, where he has served as CEO for the last three.
Armengol has been a member of TSB’s board since 2022, and previously served as director of corporate strategy for the UK bank between 2018 and 2021.
He has spent the bulk of his career working for TSB’s Spanish parent company Banco Sabadell, most recently as COO and head of operations and technology.
