TFU | Feb. 24 – Mar. 1

Leading Off

The FDIC shared new guidance for fintech firms seeking to partner with banks; the CSBS launched an online platform aimed at improving its supervision of fintech firms and other nonbanks; JPMorgan announced it will launch a digital bank in the UK; the UK FCA revealed that it suffered a data breach last year that exposed consumer information; Revolut raised $500M in Series D funding, valuing it at $5.5B; and the CFPB hosted a symposium on consumer financial data and data access rights.

In the News

FDIC shares guidance for fintechs partnering with banks.  The Federal Deposit Insurance Corporation (FDIC) released new guidance through its FDiTech lab, aimed at helping fintech firms seeking to partner with banks. The guide [full text] is “designed to help third parties [navigate] the environment in which banks operate.” The FDIC is also developing other “tools and resources” for bank partners.

CSBS launches online supervisory platform.  The Conference of State Bank Supervisors (CSBS) announced its new State Examination System [link], “the first nationwide platform to bring state regulators and companies into the same technology space for supervision.” The CSBS expects the system to help “enhance supervisory oversight of nonbanks while making the process more efficient.” 

JPMorgan to launch UK digital bank.  The U.S.’s largest retail bank by assets will launch a digital bank for British customers as early as this year, pending approval from British regulators. The new operation comes two years after Goldman Sachs launched its digital bank, Marcus, in the U.K.  JPMorgan’s new offering will compete with other digital banks in the UK, such as Monzo, Revolut, and Starling Bank.

FCA reveals data breach. The UK Financial Conduct Authority (FCA) admitted to a data breach last year that revealed confidential consumer information on its website. Responding to a Freedom of Information request, the regulator mistakenly published details of individuals who made a complaint. The FCA apologized to the consumers and claimed no financial information was revealed. 

Revolut brings in another $500M, now valued at $5.5B.  The London-based digital bank raised $500 million in Series D funding, valuing it at $5.5 billion. The company has been on a funding tear in recent years, raising $836 million in total since launching in 2015. Revolut claims over 10 million customers worldwide, mostly in Europe and the U.K., and has seen significant user growth in the past year.

The CFPB hosted a symposium on consumer data.  The Consumer Financial Protection Bureau (CFPB) held a symposium to discuss issues related to consumer financial data, “consumer-authorized data access and Section 1033 of the Dodd-Frank Act.” The symposium featured a variety of participants from academia, industry, and government. Their remarks can be found here.

Mastercard eyes fintech with CEO pick.  As chief product and innovation officer, Michael Miebach guided Mastercard’s tech strategy aimed at developing a “multi-rail” payments platform that would enable a card fee future. Miebach’s selection as CEO underlines the importance of this fintech strategy to the firm, with rivals like Visa making aggressive fintech plays like the Plaid acquisition.

HSBC to close more branches.  As the global bank continues to struggle with a dramatic decrease in foot traffic at its branches, it plans to close another 27 brick-and-mortar locations in the UK this year. HSBC’s head of retail banking and wealth management noted that “the way our customers bank . . . has changed significantly over the last [5-10] years, and that change is something we cannot ignore.”

EU bank license boosts Banking Circle. Luxembourg’s Commission de Surveillance du Sectuer Financier granted a bank license to Banking Circle, allowing it to function as a bank throughout the EU. With the banking license, Banking Circle can give access to real-time payments for financial institutions across borders and sizes, helping the firm expand operations across geographies.   

JPMorgan plans to pursue M&A strategy.  Speaking at the bank’s annual investor meeting, JPMorgan CEO Jamie Dimon said that the bank will pursue an aggressive M&A strategy as a means of warding off competition from tech giants and disruptive fintech firms. “We will be much more aggressive with acquisitions across the board . . . [and] very, very creative,” Dimon commented.

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