Five federal financial regulators jointly published a statement supporting the use of alternative data in making credit worthiness decisions; Robinhood decided to halt its application for a special purpose national bank charter from the OCC; Goldman is ratcheting down its expansion plans for Marcus in the U.K. over concerns about its compliance burden; the NYDFS approved SoFi’s application for a BitLicense; Chime raised $500M in new funding; and Bloomberg explores how some of the Bay Area’s buzziest fintechs are growing their operations in New York.
A federal judge ruled in favor of the NYDFS in its ongoing suit to prevent the OCC’s “fintech charter”; Mark Zuckerberg testified before Congress about Libra; Apple Pay is now the most popular U.S. mobile payments app; Kabbage expanded its product mix to include payments; Revolut launched in Singapore; and the Economist considers whether negative press and regulatory scrutiny have doomed the Libra project.
E-Trade followed Charles Schwab and TD Ameritrade in dropping its transaction commission fees; PayPal has withdrawn from the Libra Association amid regulatory and legal concerns, and others may follow; the FSB is scrutinizing the concentration of bank services in three major cloud providers; PayPal became the first non-Chinese company to gain a Chinese payments license; and a Wells Fargo study concluded that new technologies will replace 200,000 bank jobs in the next decade.
Libra faced a new round of criticism at the G-7 summit, while maintaining that it will go live in 2020; Wells Fargo partnered with Plaid to allow customer financial data; Deutsche Bank signed on to the JPMorgan-backed IIN; Wells Fargo plans to pilot a stablecoin; and Stripe raised $250M at a $35B valuation.
The CFPB launched a program to encourage collaboration between state and federal regulators on financial innovation; the London Stock Exchange unanimously rejected the Hong Kong Exchange’s £29.6 billion takeover bid; Switzerland’s financial regulator published new guidance on stablecoins and confirmed that the Libra Association requested an assessment of its Libra coin; Blockstack raised more than $20 million in the first SEC-approved token sale; and Stripe launched a corporate credit card for business customers.
Libra is facing scrutiny from European antitrust regulators; N26 launched in the U.S. market; Mark Carney suggested potentially replacing USD with crypto as the world’s reserve currency; Apple launched its credit card to U.S. consumers; Mastercard experienced a data breach affecting mostly German customers; and Tala raised $110M in Series D funding.