FinTech Futures: Top five stories of the week – 14 July 2023
Here’s our pick of five of the top news stories from the world of finance and tech this week.
Monzo reportedly eyeing merger with Nordic neobank Lunar
Monzo reportedly looking to merge with Lunar
UK digital bank Monzo is in early stage talks to potentially acquire Nordic neobank Lunar, according to a Bloomberg report.
According to Bloomberg, Monzo is eyeing a European expansion push through the acquisition, and is also looking at other potential acquisition deals alongside Lunar.
Lunar raised €35 million in fresh funding this February in a bid to shorten its path towards profitability. It claims more than 650,000 customers across Denmark, Norway and Sweden.
In March 2022, Lunar had offered €132 million to acquire Norway’s Instabank, although the deal later fell through in September 2022. The neobank was unable to secure the additional capital required by the Norwegian FSA and Danish FSA in order to obtain the required regulatory approval of the acquisition, citing shifting economic and market conditions.
The Bank of London formally submits application for EU banking licence
The Bank of London has formally submitted its application for a European Union (EU) banking licence as it looks to establish a new base within the continent.
The announcement has been accompanied by the firm’s commitment to invest €200 million in Luxembourg and across the wider region to support its growth across the EU.
The move to set up a new base of operations in the country is also expected to contribute towards the creation of 300 new jobs, including positions in management, compliance, risk, product development, business control, technology and operations.
Norbert Becker, chairperson of the EU region for The Bank of London, says Luxembourg is “perfectly positioned to play a key role in driving the bank’s European business forward” and will provide a centre for clearing in the EU.
Citi launches new digital commercial banking platform
Citi launches new digital commercial banking platform
Citi Commercial Bank (CCB) has launched a new platform, CitiDirect Commercial Banking, to meet the needs of its clients.
The new platform brings all of Citi’s global products and services onto one digital platform, providing clients with a consolidated view across their cash, loans, trade, FX, servicing and onboarding relationships with Citi.
The bank adds that the new platform has been created “in close collaboration” with CCB clients, as a result of which it offers an “intuitive and seamless” digital experience.
Key features include access to data-driven insights to help in decision-making, management of day-to-day banking interactions in one place, opening digital accounts, requesting new products and services and extending the self-service functionality.
GoCardless names Franck Cohen as first chairman of the board
UK-based paytech GoCardless has named Franck Cohen as its first chairman of the board, as it looks to achieve profitability.
Cohen brings more than 25 years of technology and software experience to his new role, having previously served as president of digital core and industry solutions and global chief customer officer at SAP, where he spent over a decade in various senior positions. Before that, he worked as executive vice president and general manager of EMEA and North America at Lawson Software.
He also serves as chairman of the board at CYE, an Israeli cybersecurity firm, and acts an advisor for multiple start-ups and tech firms including Workday and UIPath.
The chairman appointment follows GoCardless laying off 15% of its workforce in the UK, US, Australia and New Zealand, or about 135 roles, as part of wider cost reduction plans last month.
The company had also reduced the size of its senior leadership team by 25%, “as we believe that a smaller group is more suitable to lead a smaller organisation”, it had said at the time.
Unregistered crypto ATM operators continue to feel the wrath of the FCA
The FCA is clamping down on crypto ATMs
The Financial Conduct Authority (FCA) is continuing its tough stance on unregistered crypto ATMs in the UK with 34 site inspections this year.
The UK financial watchdog has conducted investigations into sites across East London, Leeds, Exeter, Sheffield and Nottingham on suspicion of operating unregistered crypto ATMs. This includes 18 inspections in May and June alone. Its operations have been conducted in coordination with regional law enforcement agencies and has resulted in 26 unlawful machines being shut down.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, warns consumers to not fall into the trap of handing money over to criminals.
“If you use a crypto ATM in the UK, you are using a machine that is operating illegally,” he comments. “You will not be protected if something goes wrong, and you could lose your money.”
