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.
FIN urged Congress to apply BSA standards to crypto firms; Jay Clayton affirmed his stance that crypto products are subject to existing securities laws; China’s proposed cryptocurrency is taking shape ahead of an expected go-live later this year; Stripe launched a lending product for online businesses; Uber is exploring offering loans to its drivers; the Hong Kong Stock Exchange suffered cyber attacks; and U.K. digital banks are expected to triple their customer base over the next year, but likely will remain unprofitable.
Senator Warren sent a letter to several U.S. regulators seeking information on whether algorithmic lending produces discriminatory outcomes; Monzo is planning an “imminent” U.S. launch; Facebook landed commitments from large banks and tech companies in support of its new cryptocurrency; the Bank of England found widespread weaknesses in stress tests of U.K. challenger banks; Circle announced it is discontinuing its payment app; and Revolut launched in Australia.
Manny Alvarez was appointed Commissioner of the California Department of Business Oversight; lawmakers introduced a proposed bill to regulate companies’ use of AI tools; Coinbase launched a debit card in the U.K. tied to users’ cryptocurrency accounts; WeLab became the fourth company to acquire an online-only banking license in Hong Kong; U.K. challenger bank Monzo raised $100M in Series F funding; and N26 faced regulatory scrutiny from German regulators over its handling of customer complaints.
Kik is expected to challenge the SEC over an ICO enforcement action; Coinbase rolled out crypto institutional services in Asia; Alipay was granted an EU e-money license; Bitcoin ATM startups reported growth; the EU and Japan finalized a data flow agreement; and IBM landed a $260m IT infrastructure deal with the Bank of the Philippine Islands.
The CFPB proposed a “product sandbox” and certain safe harbors for fintechs; Revolut received an EU banking license; Robinhood faced scrutiny over its plan to offer SIPC-insured checking and savings accounts; Bitwala established Germany’s first “crypto bank”; Facebook could be facing over $1B in fines for recent data breaches; and Plaid raised $250M in new funding.