FinTech Futures: Top five stories of the week – 24 November 2023
Here’s our pick of five of the top news stories from the world of finance and tech this week.
Binance CEO exits after pleading guilty to money laundering
Binance Holdings, the entity operating the world’s largest crypto exchange, Binance.com, has pleaded guilty to US federal charges relating to anti-money laundering (AML), unlicensed money transmitting, and sanctions violations, with founder and CEO Changpeng Zhao (CZ) also handing in his resignation.
Binance CEO steps down
As part of the resolution with the US Department of Justice (DoJ), Binance has agreed to pay $4.3 billion in fines and forfeitures.
Taking to X, CZ writes: “Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.”
Richard Teng, who served as global head of regional markets for Binance, has now been named as the company’s new CEO.
Alphabet in talks to seize major stake in Monzo
Alphabet, the parent company of Google, is reportedly on track to seize a major stake in the digital retail bank Monzo as it prepares to lead a new funding round for the challenger.
Alphabet is expected to leverage its independent growth fund, Capital G, to pour between £300 million and £500 million into its ownership stake.
Also set to include new and existing investors, sources tell Sky News that the round could close before the end of the year, however final details are yet to be released.
Mastercard receives approval for domestic payments in China
Global payments giant Mastercard’s joint venture in China, Mastercard NUCC Information Technology (Beijing), has received formal approval to kickstart domestic payments in the country.
Mastercard JV receives green light to begin domestic payments in China
It comes over three years after the People’s Bank of China (PBOC) first granted in-principle approval for Mastercard to begin the formal preparations required to set up a domestic bankcard clearing institution.
The payments firm claims to have already laid the foundation for its infrastructure, rules, structures and standards as per local regulatory requirements, including obtaining requisite certificates for a local switch business.
Ling Hai, chairman of the board of Mastercard NUCC and co-president, international markets at Mastercard, says the venture aims to act “as an active partner, working to expand issuance and acceptance of Mastercard-branded products for the benefit of local businesses and consumers”.
Fexco hires Sara Savidge as new CEO of corporate payments
Ireland-based fintech Fexco has named Sara Savidge as the new CEO of its corporate payments arm.
Effective this month, Savidge will be tasked with leading the division’s provision of payment processing services and enabling its clients to issue payments with accuracy and speed.
She joins the fintech, which specialises in currency conversion, international payments, asset finance and managed services, from JP Morgan Payments, where she served as managing director for almost four years.
Discussing her most recent appointment via LinkedIn, Savidge likens her ascent to the position of CEO as “a little bit like a family wedding”, in that she claims to have maintained a professional partnership with the company for the last 15 years.
CFPB fines US lender Enova $15m for “widespread illegal conduct”
The US Consumer Financial Protection Bureau (CFPB) has slapped a $15 million fine on online lender Enova and has also banned it from offering certain short-term loans.
Enova to pay $15m penalty to the CFPB
The regulator says the company has been charged for withdrawing funds from customers’ bank accounts without their permission, making deceptive statements about loans, and cancelling loan extensions.
The CFPB has ordered the firm to compensate more than 111,000 affected consumers and it will also be required to link executive pay to regulatory compliance.
In a statement, Enova says that it has reached an agreement with the CFPB, calling the allegations “consumer loan processing issues that arose from unintentional technical systems”, adding that a majority of the items were self-reported.
