Friday February 21, 2020 –
Here are the new and noteworthy stories we have been following this week.
MotoRefi raises $8.6 million to bring its auto refinancing platform to the masses
MotoRefi a new fintech startup that has developed an auto refinancing platform that handles the entire process, from finding the the best loan rates to paying off the old lender and re-titling the vehicle has raised $8.6 million in a Series A funding round co-led by Accomplice and Link Ventures; the company claims it can save customers an average of $100 per month on their car payments.
HSBC misses expectations on 2019 pre-tax profit, will cut 35,000 jobs
HSBC, reported a 33% fall in 2019 pre-tax profit to $13.35 billion and announced a major overhaul and re-structuring that would reduce the total number of staff from 235,000 to around 200,000 over the next three years; in the U.S., HSBC will reduce its branch network by 30% and re-position the bank as an “international client-focused corporate bank,” with targeted retail offerings.
https://www.cnbc.com/2020/02/18/hsbc-reports-fourth-quarter-full-year-2019-earnings.html
LendingClub to acquire Radius Bank for $185 million
LendingClub is buying Radius Bank in a cash-and-stock deal valued at $185 million, the first instance of a fintech company acquiring a bank; the transaction provides LendingClub access to cheaper and stable funding and reduce sponsor bank costs, allows it to offer a broader suite of financials services, and take advantage of Radius Bank’s API-driven banking platform.
CardWorks Announces Acquisition by Ally Financial
CardWorks has announced its acquisition by Ally Financial for $2.65 billion; CardWorks provides consumer credit servicing capabilities and is also the holding company for Merrick Bank a major credit card issuer to the sub-prime segment and an important player in merchant acquiring and servicing.
Rapyd and Visa team on fintech business offering
Rapyd, a global B2B Fintech as a Service provider, has announced a new agreement with Visa whereby Rapyd will collaborate with Visa to offer fintech and payment services to help businesses expand their core offerings with more expansive local and cross-border market solutions; additionally, Rapyd will join Visa’s Fintech Fast Track programs as an enablement partner.
https://www.finextra.com/pressarticle/81522/rapyd-and-visa-team-on-fintech-business-offering
2019: Year of the fintech inflection
According to CB Insights, $34.5 billion was invested in the fintech space across 1,913 deals in 2019 down 15% year over year, but more significantly there was a shift in funding with with more money going to growth stage vs. early-stage companies, and an expansion to frontier and emerging markets; in the U.S. total funding rose to $4.6 billion.
https://tearsheet.co/future-of-investing/2019-year-of-the-fintech-inflection/
BCB takes steps to make instant payments available to population and launches its brand PIX
The Brazilian central bank, Banco Central do Brasil (BCB) has launched an instant payments scheme under the brand ‘PIX’ providing 24/7/365 availability and immediate transfer of funds; instant payments can be completed via QR Code, cell phone number, email, or taxpayer identification.
https://www.bcb.gov.br/en/pressdetail/2313/nota
Japan’s Largest Bank Invests Over $700 Million in Grab
Mitsubishi UFJ Financial Group is investing more than $700 million in Southeast Asian ride-hailing company Grab to again access to its customer base to market financial services; Grab, along with Gojek (another regional ride-hailing company) are rapidly growing across a range of business sectors including financial services and payments.
Coinbase becomes a Visa Principal Member to double down on debit card
Coinbase has become a Visa principal member allowing it to issue its own debit card and eliminate reliance on third-party BIN sponsor arrangements and additionally expand its business leveraging its Visa relationship; Coinbase is the first cryptocurrency company to get a Visa license.
Atlanta-Based OneTrust Raises $210M Series B, More Than Doubles Valuation To $2.7B
Atlanta-based privacy, security, and trust technology platform company OneTrust has raised $210 million at a $2.7 billion valuation (seven months after the company raised $200 million in a Series A round); OneTrust has been experiencing significant growth given privacy concerns and legislation and according to the company now has 5,000 clients.
