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☆ $1.7 billion Sift just tapped a new CEO who's focused on helping the fraud-prevention startup build up its base of finance and fintech clients
▼ + stars: | 2023-01-12 | by ( Paige Hagy | ) www.businessinsider.com time to read: +3 min

Sift is a startup that provides fraud-prevention tech to e-commerce and fintech companies. The startup named Kris Nagel, former COO at Ping Identity, as its new CEO on Thursday. Sift has a new CEO, and one of his top priorities will be building up the startup's finance-focused clientele. Nagel, former COO at Ping Identity, an identity-security company, assumed the position in early December 2022. Nagel brings his experience helping lead Ping Identity through an IPO in September 2019 to Sift.

Insider asked more than 40 top fintech investors to nominate the most promising fintechs. Here are the 61 most promising fintechs. Insider surveyed 43 investors — including those from Bain Capital Ventures, Lightspeed Venture Partners, and QED Investors — about the most promising fintechs to watch. Global fintech funding dropped to $20.4 billion in the second quarter, falling 46% from last year, according to data from CB Insights. Check out the 61 fintechs identified as most promising by top investors.

Parafin, launched in 2020, works with so-called platform partners, or companies that other small businesses sell their products through. All the cofounders knew was that they wanted to build technology that would help small businesses. And they may not get their first contract payment from the government for as long as 120 days," Reed, the startup's CEO, told Insider. Helping small businesses manage their taxesComplYant's founder Shiloh Jackson wants to help people be present in their bookkeeping. HoneyBookWhile countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.

☆ Wells Fargo, once the No. 1 player in mortgages, is stepping back from the housing market
▼ + stars: | 2023-01-10 | by ( Hugh Son | ) www.cnbc.com time to read: +5 min

watch nowWells Fargo is stepping back from the multi-trillion dollar market for U.S. mortgages amid regulatory pressure and the impact of higher interest rates. It's the latest, and perhaps most significant, strategic shift that CEO Charlie Scharf has undertaken since joining Wells Fargo in late 2019. Following those once-huge mortgage players in slimming down their operations has implications for the U.S. mortgage market. Today, Wells Fargo is the third biggest mortgage lender after Rocket and United Wholesale Mortgage. Wells Fargo employees have speculated for months about changes coming after Scharf telegraphed his intentions several times in the past year.

☆ Wells Fargo is retreating from the mortgage market it once led
▼ + stars: | 2023-01-10 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —Wells Fargo, long one of the biggest players in the mortgage business, is taking a big step back. Wells Fargo said it will also exit its correspondent business, which buys loans made by other lenders, and reduce the size of its mortgage servicing portfolio. The retreat will likely cause Wells Fargo to lay off at least some employees, though the bank did not announce any specifics. The move comes as Wells Fargo continues to be in trouble with regulators. In late 2017, Quicken Loans toppled Wells Fargo as America’s largest mortgage lender.

☆ Banks' war against fintechs is a battle they're destined to lose
▼ + stars: | 2023-01-06 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

And while this shouldn't bother banks — they make plenty of money doing what they do best — this is Wall Street. In fact, the face of Wall Street, JPMorgan CEO Jamie Dimon, literally declared war on fintechs on an earnings call in 2021. But, as Insider's Bianca Chan and Reed Alexander recently outlined in a fantastic feature, banks' bid to topple fintechs is hopeless. Whether it's JPMorgan's digital-only bank Finn or, more recently, Goldman Sachs' Marcus, banks' attempt to cosplay as fintechs rarely ends well. Click here to read more about why banks are doomed to keep failing in their fight against fintechs.

☆ Banks vs. Fintechs: Why all the billions in the world can't help Wall Street crush its digital rivals
▼ + stars: | 2023-01-05 | by ( Bianca Chan | Reed Alexander | ) www.businessinsider.com time to read: +15 min

To compete, banks have written fat checks to acquire fintechs — tech, talent, and all. But on Wall Street, old habits die hard, and Goldman has struggled to make Marcus, a big fintech bet, a success. Since the beginning of the pandemic, Wall Street leaders have been at the helm of a push to get their employees back to their desks. It's more that the very things that make Wall Street, well, Wall Street are preventing it from embracing the ethos of Silicon Valley. And perhaps, for Wall Street, that's the moral of the story.

☆ Here's how to get geared up for 2023 on Wall Street
▼ + stars: | 2023-01-03 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

But first, Wells Fargo takes a new approach to tech. Ather Williams, senior executive vice president and head of strategy, digital, and innovation at Wells Fargo Wells Fargo1. In other news:After years of hesitancy, Wall Street is finally turning the corner on its acceptance of the public cloud. From a surge in dealmaking to the rise of superpowered software, these are the key trends top VCs are eyeing this year. We identified 34 tech companies that seem primed for a deal.

☆ Our best stories on financial tech in 2022
▼ + stars: | 2022-12-30 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

Today, we're going to recap all the great stories we've done this year on financial tech, whether it's up-and-coming startups or the projects at the biggest banks and investment firms. Wall Street and sports have a long history together. How top Wall Street firms are testing out cutting-edge tech. Shaw, here are 10 of the most innovative tech projects at top Wall Street firms. And we also identified the top Big Tech executives who could get poached by Wall Street firms looking to do more in the cloud.

☆ 'Investors changed the rules of the game overnight.' The CEOs of Rapyd, Revolut, Wefox, and Klarna look ahead to fintech in 2023.
▼ + stars: | 2022-12-30 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +4 min

After a bruising year for the sector, fintech startups are prioritizing profitability. The CEOs of Revolut, Klarna, Wefox, and Rapyd outlined the new reality for consumer-facing fintech. "Investors changed the rules of the game overnight," Rapyd CEO Arik Shtilman told Insider. "Investors changed the rules of the game overnight," Arik Shtilman, CEO and founder of $15 billion fintech Rapyd told Insider at the Slush conference in Helsinki. Regardless of whether a focus on profitability has been pushed by investors or not, the tide has now turned for the fintech sector in Europe.

☆ The fintech reckoning is upon us. Here’s what to expect next year
▼ + stars: | 2022-12-28 | by ( Hugh Son | ) www.cnbc.com time to read: +9 min

Many fintech companies — particularly those dealing directly with retail borrowers — will be forced to shut down or sell themselves next year as startups run out of funding, according to investors, founders and investment bankers. Other private companies with a reasonable path to profitability will typically get funding from existing investors. The frenzy peaked in 2021, when fintech companies raised more than $130 billion and minted more than 100 new unicorns, or companies with at least $1 billion in valuation. "20% of all VC dollars went into fintech in 2021," said Stuart Sopp, founder and CEO of digital bank Current. "The competitive landscape shifts the most during periods of fear, uncertainty and doubt," said Kelly Rodriques, CEO of Forge, a trading venue for private company stock.

☆ What’s Your Savings Rate? These Banks Are Paying 10 Times the National Average
▼ + stars: | 2022-12-28 | by ( ) www.wsj.com time to read: +9 min

Savings accounts have followed suit, with many top accounts yielding 3%, or even 4%, up from less than 1% earlier this year. The average savings account still earns just 0.3%, according to the Federal Deposit Insurance Corp. Accordingly, the highest APYs you can expect to find on savings accounts today are clustered close to that figure. If your main priority is simply the best rate, some online banks with less name recognition are pushing the envelope even further. Leon says digital institutions tend to be among the most competitive in their rates for CDs as well as savings accounts.

☆ Goldman Sachs has plans for deep headcount cuts in the new year
▼ + stars: | 2022-12-19 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

But first, the Goldman cuts go deep. Goldman's bankers and others on Wall Street still enjoy pay packages that are beyond that of most American workers. Some portion of Goldman's cuts are being made with an eye to 2023 and 2024, suggesting that the firm's leaders don't expect a return to go-go days anytime soon. Click here to read more about the cuts set to hit Goldman Sachs. Private-equity firm Advent announced plans to acquire satellite maker Maxar Technologies for $6.4 billion in a deal that included Goldman Sachs, JPMorgan, and Morgan Stanley.

☆ Fintechs are under scrutiny over fraudulent PPP loans and small businesses could suffer. Here are the biggest takeaways from the federal investigation.
▼ + stars: | 2022-12-16 | by ( Jennifer Ortakales Dawkins | ) www.businessinsider.com time to read: +3 min

A federal investigation blames fintechs for rampant Paycheck Protection Program loan fraud. It could jeopardize fintechs' participation in future federal lending programs. The Paycheck Protection Program was a federal rescue program intended to help the 7.5 million US small businesses at risk of closing permanently in the first year of the COVID-19 pandemic. The Small Business Administration awarded nearly $800 billion in PPP loans to 11.47 million businesses. Here are the biggest takeaways from the federal investigation.

☆ JPMorgan, Citi and BNP invest in risk management provider Acin
▼ + stars: | 2022-12-15 | by ( Andres Gonzalez | ) www.reuters.com time to read: +1 min

[1/3] A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike SegarLONDON, Dec 15 (Reuters) - A group of five banks including JPMorgan , Citi (C.N) and BNP Paribas (BNPP.PA) are among the investors who backed an overall $24 million fundraising for risk control specialist Acin as part of their strategy to step up their risk expertise. "We have been working with Acin for the past three years, during which they have supported our established operational risk management and assessment practices," said Julian Liau, Chief Controls Manager at JPMorgan. Both Notion Capital and Fitch Ventures backed Acin in the last fundraising. Acin helps financial institutions digitise their operational and non-financial risk analysis, using its data analytic capabilities.

☆ Visa to invest $1 bln in Africa over 5 years to cash in on e-payments boom
▼ + stars: | 2022-12-14 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

[1/2] Credit card is seen in front of displayed Visa logo in this illustration taken July 15, 2021. The investments in Africa shine a new light on a major growth opportunity on the continent where cash is likely to be challenged in coming years as e-payments gain momentum, according to a McKinsey report in September. "It's one of our fastest growing regions," Andrew Torre, Visa's regional president for central and eastern Europe, Middle East and Africa, told Reuters in an interview on Wednesday. The investments will scale Visa's operations in Africa and deepen ties with governments, fintechs and merchants, according to the statement. Among new technologies, the company recently rolled out Visa Acceptance Cloud, a platform which turns virtually any device into a payments terminal.

☆ Brazil central bank grants Google Pay payment institution status
▼ + stars: | 2022-12-08 | by ( ) www.reuters.com time to read: +1 min

SAO PAULO, Dec 8 (Reuters) - Alphabet's (GOOGL.O) Google Pay has received approval to operate as a payment institution in Brazil, Latin America's largest economy, the country's official gazette showed on Thursday, allowing it to initiate payment transactions. Payment initiators, according to Brazil's central bank, initiate a transaction ordered by the final user but never manage the payment account, nor hold the funds of the transactions. A press spokesperson for Google confirmed the central bank's authorization and said the move offered "more payment options to users through our platforms in Brazil." Google Pay currently operates an app serving as a virtual wallet, which allows the user to include their credit and debit cards, vaccination cards and concert tickets, for example. The approval comes days after Brazil's National Monetary Council also authorized fintechs to initiate payment transactions in the country.

☆ PE wants to see some cash flow before it starts making deals
▼ + stars: | 2022-12-07 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

As the markets continue to sour, and a recession looms, everyone's wondering when PE firms will begin scooping up assets. High on Bae's wishlist are "all things digital," he said, with one giant caveat: profitability. There are plenty of companies doing fascinating things in the digital space, but many have yet to reach profitability (*cough* fintechs *cough*). Goldman Sachs is going dumpster diving for crypto companies. Chaos in the crypto markets is creating investing and acquisition opportunities for the bank, according to Matthew McDermott, Goldman's head of digital assets.

☆ Tech's pandemic hiring boom continues to bust as fintech Plaid adds to mounting layoffs
▼ + stars: | 2022-12-07 | by ( Barbara Collins | ) www.cnbc.com time to read: +3 min

Fintech firm Plaid is laying off about 260 employees, adding to a recent wave of cuts from private tech companies. CEO Zach Perret announced the layoffs in a memo sent to staff Wednesday morning, citing macroeconomic challenges throughout the past year. The company currently has more than 1,250 team members in seven offices worldwide, according to the Plaid website. The announcement comes amid a string of layoffs among tech companies, including Meta, Twitter, Lyft and Coinbase, among others. Equity grants for employees with the company for more than a year will be accelerated to a February vesting date.

☆ Australia's RBA finds unexpected industry interest in an eAUD
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +2 min

Interested entities ranged from large banks, financial market infrastructure providers and consultancies, to small digital asset firms and fintechs. The RBA intends to select a number of proposals to take forward into the pilot phase early next year. However, Jones cautioned that the actual adoption of a retail CBDC to replace cash would be revolutionary and come with costs and dangers that had yet to be addressed. Instead, it was possible household holdings of eAUD at the RBA would end up replacing deposits held by commercial banks, sapping their ability to lend. "Prior to crossing this Rubicon, a strong public interest case would first need to emerge," Jones concluded on adoption of a retail CBDC.

☆ Risk officers are the next hot hire for fintechs reaching consumers in new industries, VCs said. Startups are poaching from big companies to find them.
▼ + stars: | 2022-12-06 | by ( Emilia David | ) www.businessinsider.com time to read: +5 min

Risk officers don't just safeguard data: They take charge of many regulatory and technological issues in financial-services businesses. But only some fintech companies may benefit from thinking about hiring risk officers early. Large banks still dominate hiring for risk officers, but startups are gaining groundFintech startups want to hire risk officers, but they face a hurdle: There aren't enough risk professionals. But fintech startups have been attracting risk officers from banking giants for a while. Still, according to White, there are benefits to hiring risk officers for both types of companies.

☆ Increasing tech innovation also brings increasing fraud
▼ + stars: | 2022-12-05 | by ( ) www.businessinsider.com time to read: +1 min

Banks are coming under fire for weak security controls which are leaving consumers more vulnerable to spoofs, scams, and hackers. Elsewhere, UK banks aren’t taking full advantage of resources that can prevent their customers from falling victim to authorized push payment (APP) fraud , per FinExtra. APIs power open banking: In partnering with fintechs, banks rely heavily on APIs to create quick and easy connections with third-party providers. The practice is common in the UK, where open banking is part of a national mandate. US banks aren’t yet required to implement open banking solutions, though requirements are likely coming .

☆ Buy-now, pay-later kingpin Klarna's valuation dropped from $45.6 billion to $6.7 billion in 2022. Its CEO wants a 'sane market' before IPO.
▼ + stars: | 2022-12-05 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +6 min

Buy-now, pay-later firm Klarna wants 'a sane market' before IPO. The company is losing hundreds of millions of dollars annually, but says it is reducing credit losses. Klarna took a valuation haircut to $6.7 billion and carried out two rounds of job cuts in 2022. At one time, the company was the most highly valued startup in Europe with a valuation of $45.6 billion. That plunged by 85% to just $6.5 billion as the company raised again this year in a tougher market.

☆ Executives at ‘fintechs’ made hundreds of millions handing out PPP Covid cash, report says
▼ + stars: | 2022-12-01 | by ( Laura Strickler | Laura Strickler Is A Washington-Based Investigative Reporter With The Nbc News Investigative Unit. | ) www.nbcnews.com time to read: +7 min

The report says Reis is not Black or a veteran. House Select Subcommittee on the Coronavirus Crisis$80 billion in fraudIt’s well known that the $800 billion PPP program was plagued by fraud, with some fraud estimates as high as $80 billion. In a text message obtained by the committee, Reis commented on his company’s success, noting it made nearly $1.5 billion in less than six months processing PPP loans. House Select Subcommittee on the Coronavirus CrisisThe report cited a text message in which Kristen Spencer described the anticipated windfall from processing PPP loans. In July 2021, two months after the last PPP loans went out the door, the Spencers bought an $8 million, 10,975-square-foot mansion, according to local property records.

☆ J.P. Morgan private bank invests in two Swiss fintechs
▼ + stars: | 2022-12-01 | by ( ) www.reuters.com time to read: +1 min

ZURICH, Dec 1 (Reuters) - J.P. Morgan Private Bank has invested in two Swiss fintech companies that specialise in software that helps advisers customise portfolios for wealthy clients in Europe, the Middle East, Latin America and Asia, it said on Thursday. It gave no financial details of what it called a "strategic" investment in Edge Laboratories SA and Evooq SA (Evooq), which were already partners. Their software focuses on analysing risk, building and optimising portfolios, and offering advisory platforms. Edgelab and Evooq, which together employ 285 staff, work for large banks, wealth managers and pension funds. J.P. Morgan Private Bank, which manages around $1.8 trillion, has since 2021 bought fintech companies OpenInvest and Global Shares and invested in data groups Kraft Analytics Group and MioTech.

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