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Singles in many big US cities need a nearly six-figure salary to live "comfortably," per SmartAsset. AdvertisementA single person needs to earn more than $96,000 a year to live comfortably in many major US cities, calculations by SmartAsset found. This jumps to nearly $140,000 for New York City, $125,000 for Boston, $120,000 for Seattle, and $111,000 for Los Angeles, per the fintech's research. Two adults with two children need to bring in $235,000 to live comfortably in half of the 99 cities included in the research. AdvertisementThe total is more than $300,000 for six cities, including San Francisco ($339,000), San Jose ($335,000), and New York City ($318,000).
Persons: , SmartAsset Organizations: New, Boston, Los, Service, Seattle, MIT, Federal Reserve Locations: New York, Los Angeles, New York City, Francisco, San Jose, Houston
British banking-as-a-service fintech Griffin has raised new funding after receiving regulatory approval to be a fully operational bank. The market is god awful, so not having to do a down-round, with outside investors coming in, is the best outcome." Griffin has raised £19.1 million, around $24 million, in a funding round led by MassMutual Ventures, NordicNinja, and Breega, with participation from Notion Capital, EQT Ventures, DG Daiwa and CircleRock. "We are hiring, but unlike earlier rounds, we aren't going on a hiring blitz, as we did the hiring for this round before the round closed. We were about to be a fully operational bank, so we needed operations roles," Jarvis added.
Persons: fintech Griffin, Griffin, David Jarvis, Allen Rohner, Jarvis, We've Organizations: Business, Prudential, Authority, Financial, MassMutual Ventures, NordicNinja, Notion, EQT Ventures, DG Locations: London
AdvertisementAfter a period of "wild west" investing in AI, Blank believes activity will favor AI companies that respect artists' consent and compensation. It recently co-led a $1 million seed round in Conduiit, which centralizes entertainment companies' production finance operations. Endeavor Venture InvestmentsEndeavor Venture Investments is the venture arm of entertainment and sports behemoth Endeavor. SWaN & LegendThe Virginia-based VC firm has a broad consumer portfolio that includes a number of entertainment investments. With Hollywood in contraction, SWaN has largely hit pause on new entertainment investments to get its portfolio companies on a strong footing.
Persons: Michael Blank, Blank, Jon Miller, Miller, Slack, Garnet Heraman, BDMI, Urs Cete, Michael, TMRW, Tiger Woods, Rory McIlroy, Elysian Park Ventures Jay Adya, Grant Lamos, Tom Brady, Gotham Chopra, Michael Strahan, Jay Adya, Morgan, Kushaan Ahuja, Drew Glover, Glover, Alex Harris, they've, Noah Doyle, Payback India, Jed Katz, Rich Greenfield, Rich, Ilya Pozin, Jamie Seltzer, LightShed, Steve Cohen's, it's, Sri Chandrasekar, Tripp Shriner, Ishan Sinha, That's, Wondery, Ian Doody, Raine, Gordon Rubenstein, Joe Ravitch, Jeff Sine, , Fred Schaufeld, SWaN, that's, Oscar, Jose, Schaufeld, Sam Wick, Alex J, Investcorp, Paul Yoo, Edgar Bronfman Jr, Daniel Leff, Waverley, Leff Organizations: Service, Creative Artists, Connect Ventures, Business, Hollywood, Veteran, TPG, Integrated Media Co, Advancit, CAA, Bertelsmann, Waverley, Octopus Ventures, Accel, Facebook, Venture, Aperture Venture, Bertelsmann Digital Media Investments, Fremantle, Connect, CAA Connect Ventures, New Enterprises Associates, TMRW Sports, Disney, Universal, Elysian Park Ventures, Elysian, Sports, Endeavor Venture, Endeavor Venture Investments, behemoth Endeavor, Dapper Labs, Fiat Ventures, Fiat Ventures Fiat Ventures, Fiat, Payback, Rent, LightShed, Rich Greenfield Influential, LightShed Ventures, Pluto, Apple, Octopus Ventures Octopus Ventures, Investments, Corp, Etsy, Re, Point72 Ventures New York Mets, Range Media Partners, Point72 Ventures, Sri, Powerhouse, Athletic, The New York Times Co, Evolution Media, Creative Artists Agency, Astro, Rave Digital Media, Accel Entertainment, Jose Andrés Media, Berliner, UTA Talent, UTA, UTA Ventures, Ventures, VR, Amazon, PFL Locations: blockchain, , Conduiit, fintech, London, Australia, Papercup, Los Angeles, Virginia, UTA.VC
Monzo, a British fintech bank, is in talks with Alphabet's private investment arm Capital G to raise what is primed to be its last funding round before a public listing. The bank touts around 8.5 million customers in the UK and is best known for its bright coral pink bank cards. Fintech funding in Europe dropped 70% to $5 billion from $17.1 billion in the first half of 2023, compared with 2022, according to Finch Capital. The prospective funding round is set to be the fintech's last private raise before a mooted public debut that would likely take place in late 2024 or 2025. The British bank reported £116.3 million in losses last year despite more than doubling its revenue.
Persons: Monzo, Catalyst, Monzo's, Cash, Conor Walsh, Anil Organizations: Business, Sky News, Abu Dhabi Growth Fund, Silicon, VC, fintech, Finch, London, Starling Bank Locations: British, London, Abu Dhabi, New York, Europe, Monzo, Starling
Stock Chart Icon Stock chart icon SolarEdge's year-to-date stock performance. Stock Chart Icon Stock chart icon Arbor Realty's year-to-date stock performance. Stock Chart Icon Stock chart icon Liberty Media's year-to-date stock performance. Stock Chart Icon Stock chart icon Square-parent Block's year-to-date stock performance. Stock Chart Icon Stock chart icon Becton Dickinson's year-to-date stock performance.
Persons: Archer Aviation's, I've, Arbor, We're, Philip Morris International's, Philip Morris, Becton, Becton Dickinson Organizations: Archer Aviation, SolarEdge Technologies, Arbor Realty Trust, Liberty, Philip Morris International
REUTERS/Paulo Whitaker/File Photo Acquire Licensing RightsMEXICO CITY, Oct 19 (Reuters) - Brazilian fintech Nubank's Mexico arm has requested a banking license from local regulators, the unit's top executive said on Thursday, describing it as a bid to broaden product offering. A banking license would allow Nubank to offer "diverse kinds of investments," including shares in Mexico's main stock index, the company said in a statement to Reuters. Other opportunities stemming from a banking license include handling direct deposits of salaries for customers and setting higher deposit limits, Nubank Mexico head Ivan Canales said in an interview. Canales did not provide a timeline for obtaining the license in what is Nubank's second-biggest market after Brazil. Funding for Nubank's expansion plans will come from parent company Nu Holdings (NUN.MX) and deposits made by their customers, said Canales.
Persons: Paulo Whitaker, Ivan Canales, Canales, Nubank, Valentine Hilaire, David Alire Garcia, Varun Organizations: REUTERS, MEXICO CITY, Reuters, Nu Holdings, Thomson Locations: Brazilian, Sao Paulo, Brazil, MEXICO, Mexico
A banner for Nubank, the Brazilian FinTech startup, hangs on the facade at the New York Stock Exchange (NYSE) to celebrate the company's IPO in New York, U.S., December 9, 2021. REUTERS/Brendan McDermid/File photo Acquire Licensing RightsMEXICO CITY, Sept 5 (Reuters) - Nubank, one of Latin America's biggest fintech companies, announced on Tuesday the launch of personal loans for the Mexican market, aiming to boost its financial services portfolio in the region's second-largest economy. The new product will allow customers to obtain personal loans in less than five minutes through its platform, the digital bank's Mexican arm, known as Nu Mexico, said in a statement. "Around 20% of the adult population connected by smartphones in Mexico has already applied to a Nu product. Executives from the fintech firm told Reuters last month Mexico is the market showing more potential for growth, and the company is ready to roll out products at a faster pace next year.
Persons: Brendan McDermid, Ivan Canales, Brazil's Nubank, Valentine Hilaire, Sandra Maler Organizations: New York Stock Exchange, REUTERS, Reuters, Thomson Locations: New York, U.S, MEXICO, Mexico
And more businesses are accepting dollars as payment as the peso crashes. AdvertisementAdvertisementE-commerce giant MercadoLibre, consulting firm Accenture, software developer Globant, and fintech firm Ualá offer partial pay in greenbacks, according to reports. In addition to staff salaries, the private sector is increasingly accepting dollars as a form of payment as well. For example, US website firm GoDaddy stopped accepting Argentinian peso payments in June, changing to dollars. He also suggested Argentina would be better off pegging its currency to the Brazilian real instead of the greenback.
Persons: Javier Milei, fintech's, GoDaddy, ZonaProp, Robin Brooks Organizations: Service, Bloomberg, Accenture Locations: Wall, Silicon, greenbacks, Buenos Aires, Argentina
A sign of Antchain, the blockchain technology branch under Ant Group, is seen at Ant Group's booth during the World Artificial Intelligence Conference (WAIC) in Shanghai, China, July 8, 2021. REUTERS/Yilei Sun/File PhotoAug 7 (Reuters) - A number of global investors are opting out of Ant Group's (688688.SS) proposed share buyback after the Chinese fintech's valuation was slashed by more than 70%, Bloomberg News reported on Monday. However, a few money managers, including Fidelity Investments and T. Rowe Price Group, have agreed to sell their shares, the report added. In July, Ant Group announced a surprise share buyback of up to 7.6% of its equity interest at a price that represents a group valuation of about 567.1 billion yuan ($78.68 billion). Ant Group, Warburg Pincus, GIC, Fidelity Investments and T. Rowe Price Group did not immediately respond to Reuters' request for comment.
Persons: Ant Group's, Warburg Pincus, Rowe Price, Nilutpal, Varun Organizations: Ant, Artificial Intelligence, REUTERS, Yilei, Bloomberg, Plan Investment, Carlyle Group, Fidelity Investments, Rowe Price Group, Ant Group, GIC, Reuters, Thomson Locations: Shanghai, China, Canada, Bengaluru
Since ChatGPT's splashy debut in November 2022, generative AI has captured people's and corporations' imaginations. Generative AI is a subset of AI designed to ingest copious amounts of information and create new content. Finance, an industry that runs on data, has been exploring ways to leverage generative AI. At the retail-investing fintech eToro, work is underway to see how generative AI can be deployed to employees and customers. Using generative AI with guardrailsAs the company thinks about opportunities that come with generative AI, it can't ignore the risks.
Persons: Lule, ChatGPT's, Demmissie, hadn't, eToro, ChatGPT Organizations: Morning, Finance, Financial Industry, guardrails Locations: bitcoin
A second investor in London-based Revolut has slashed its valuation of the fintech this year. Molten Ventures, a long-term backer, has reduced the value of its position in the company by 40%. Revolut is the latest fintech star to take a valuation haircut, following on from the likes of Stripe and Klarna. A second Revolut investor has slashed its valuation of the London-based fintech company as the price correction of high-value private startups continues. Molten cut the value of its stake in Revolut from £91.3 million ($116.8 million) last year to £54.5 million ($69.7 million) as of the end of March.
Persons: Revolut, SoftBank, Draper, Martin Davis, Davis Organizations: Molten Ventures, Tiger Global, BDO, Financial, Financial Times, City Locations: London, Revolut, Europe
The future is DeFiDecentralized finance (DeFi) has gained significant traction in recent years, offering a new paradigm for financial services that are open, transparent, and community-driven. DeFi adoption will significantly enhance the concept of "embedded finance," and we will see more integration of financial services with traditionally non-financial services or products. Foresee market structure trends and shape them proactivelyWhile fintech's growth in developed markets is undeniable, even more significant potential for growth lies in developing economies. This will empower customers to make payments swiftly and conveniently, ultimately driving higher adoption and usage of fintech solutions. With the fintech industry projected to reach $492.81 billion by 2028, the time to start looking into tomorrow is now.
Persons: Irene Skrynova, Statista Organizations: Intelligence, Central Bank, Allied Market Research, Finance, World Bank, Insider Studios Locations: China, India, Eastern Europe, Africa
It supports borrowers, investors, and underwriters with its software solution. This startup is building a digital solution for the historically analog world of private credit. Private credit is an alternative asset class consisting of loans privately negotiated outside of the public debt markets. Examples of private credit include student loans taken from outside the government, small-business loans, and consumer loans. "We're ready to scale in a market and a time right now that is all in favor and support of private credit," Chu said.
Persons: Nelson Chu, Chu, it's Organizations: underwriters, Goldman Sachs, Management, White Star Capital, Underwriters, Fitch Group, Juniper Locations: Chu
This startup is building a digital solution for the historically analog world of private credit. Private credit is an alternative asset class consisting of loans privately negotiated outside of the public debt markets. Examples of private credit include student loans taken from outside the government, small-business loans, and consumer loans. Digitizing an analog marketplaceThe private-credit market traditionally operates in an analog system, with deals being conducted over phone calls and emails and monitored on spreadsheets. "We're ready to scale in a market and a time right now that is all in favor and support of private credit," Chu said.
Persons: Nelson Chu, Chu, it's Organizations: underwriters, Goldman Sachs, Management, White Star Capital, Underwriters, Fitch Group, Juniper Locations: Chu
Report of Argentina fraud probe sinks shares in dLocal
  + stars: | 2023-05-26 | by ( ) www.reuters.com   time to read: +1 min
May 26 (Reuters) - Uruguayan fintech dLocal, the South American country's first unicorn, saw its shares plummet on Friday, after Argentine news outlet Infobae published an article saying the government was investigating it for a possible fraud of at least $400 million. Citing unnamed official sources, Infobae said the Argentina government was investigating the fintech for "improper manouevers" and transfers abroad that would constitute a fraud, with most of its income coming from services sold to subsidiaries of the same firm. Infobae said sources at Argentina's customs agency said they were considering reporting dLocal to the U.S. Securities and Exchange Commission (SEC). dLocal issued a statement denying the article, claiming it had been the victim of "misleading allegations" and that it would continue to process payments normally in Argentina. The fintech's shares were down 17% in afternoon trading after losing more than 34% earlier in the day.
Why it's on the market: SMB lenders saw valuations skyrocket during the pandemic years fueled by cash-strapped businesses struggling to secure loans amid tightening lending requirements. "These sorts of businesses almost certainly got way over their skis on valuation," a partner at a California-based venture firm, told Insider. SMB lenders are potential acqui-hires or acquisition targets unless they can raise more capital, according to one New York-based partner at a large venture firm. In November 2022, Pipe announced its three cofounders would step down and start the search for a "veteran" CEO. Both experts expect to see consolidation throughout the segment, with larger consumer and SMB lenders like Ramp and Brex as potential buyers.
Griffin, who founded Wall Street giants Citadel and Citadel Securities, donated $300 million to Harvard's Faculty of Arts and Sciences (FAS). However, it's interesting to see how two of his biggest contributions — DeSantis and Harvard — seem to operate on opposite ends of the spectrum. Click her to read our profile on Ken Griffin's rise to the top of Wall Street. Wall Street is drying out wells to drive up returns in California. Click here for more on the water woes created by Wall Street.
Why it's on the market: SMB lenders saw valuations skyrocket during the pandemic years fueled by cash-strapped businesses struggling to secure loans amid tightening lending requirements. "These sorts of businesses almost certainly got way over their skis on valuation," a partner at a California-based venture firm, told Insider. SMB lenders are potential acqui-hires or acquisition targets unless they can raise more capital, according to one New York-based partner at a large venture firm. A spokesperson for Pipe cited the fintech's hiring of Luke Voiles, a former Square and Intuit executive, as CEO earlier this year. Both experts expect to see consolidation throughout the segment, with larger consumer and SMB lenders like Ramp and Brex as potential buyers.
Tech leaders are urging caution on AI
  + stars: | 2023-03-30 | by ( Paayal Zaveri | ) www.businessinsider.com   time to read: +4 min
Insider asked ChatGPT, the viral AI chatbot sweeping the internet, to whip up a layoff memo for a pretend tech company, Gomezon. Elon Musk, Steve Wozniak, researchers at Alphabet's DeepMind, and other AI leaders are calling for a pause on training AI models more powerful than OpenAI's GPT-4. My colleague Emilia David looked at why Elon Musk and other tech leaders are right: AI needs to slow down. An Apple Watch is an essential for many of us these days, but the right band can make all the difference. Check out Insider's review of the 18 best Apple Watch bands in 2023.
Fintech's fraud misfortune. Which brings us to a story by Insider's Bianca Chan and Paige Hagy about concerns over the prevalence of fraud within consumer-facing fintechs in recent years. Click here to read more about fintech's fraud problem. We've also got the deck StellarFi, a fintech that helps users improve their credit score, used to raise $15 million. For more than 50 different decks used by fintechs to raise fresh funds, check out our library.
"With fast growth comes fast fraud," Frank McKenna, a longtime fraud expert who works with banks, lenders, and fintechs, told Insider. Cash App only requires a zip code, debit-card number, and either an email or phone number to create an account. Cash App's alleged fraud problem could also be the result of its large, active customer base, which numbers some 44 million, according to the company's 2022 annual report. The fact that Cash App offers peer-to-peer payments exacerbates the fraud issue, according to McKenna, the chief fraud strategist at Point Predictive, an anti-fraud software company. Digital-only bank Chime has had its own issues with fraud, Jason Mikula, a fintech analyst and consultant, told Insider.
After an awful 2022 that saw one of the industry's high-profile figures implode, the crypto market is looking for a bounceback. McDermott laid out to Insider's Bianca Chan and Dakin Campbell how tough times for crypto startups mean more realistic valuations and, in some cases, a reevaluation of the business model. Once of the most common critiques I hear about crypto is "It's a solution looking for a problem." The most recent crypto winter could force startups to be a bit more pragmatic about the specific problem they are looking to address. "If you can solve fraud in crypto, you can solve fraud in basically any part of finance," Meier told Insider.
Fintech Sezzle is betting on a comeback after a miserable year for not only itself but the wider buy now, pay later market. Murphy's LawTrue to Murphy's Law, anything that could go wrong did go for Sezzle, Charlie Youakim, Sezzle's CEO, told Insider. In February of 2022, Sezzle announced it would be bought by Zip, another Australian-traded BNPL. The shift leaves room for a "proliferation" of BNPL and other payment options, Savage said. That way, Sezzle can still extend credit to the customer, who can theoretically build on their credit score with short-term payments.
David Solomon at Goldman Sachs' 2023 investor day. All eyes were on Goldman Sachs yesterday as the bank held its second-ever investor day. The biggest news of the day was Solomon, along with other key executives, acknowledging the bank was exploring "strategic alternatives" for its consumer business. Hinting at "strategic alternatives" was something people would want to hear more about. And click here to read more about Goldman exploring "strategic alternatives" for its consumer biz.
Plaid views identity verification as key to linking together different parts of its business. The company is using ID verification to streamline the onboarding process for fintechs. Plaid wants to create a seamless onboarding experience for fintech users with its new product Plaid Identity Verification (IDV). Plaid IDV launched in July 2022 and has 200 customers. In the fourth quarter of 2022, one in three new deals included Plaid IDV.
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