A profit letdown for banks in 2019

WASHINGTON — With net interest income slipping and banks setting aside more reserves to cover losses, the industry’s profit fell 1.5% in 2019 to $233.1 billion, the Federal Deposit Insurance Corp. said Tuesday. The agency’s Quarterly Banking Profile said net income in the fourth quarter declined nearly 7% from a year earlier to $55.2 billion, driven by lower net interest…

Read more

Wells Fargo agrees to pay $3bn fine for fraudulent account furore

Wells Fargo has agreed to pay $3 billion to settle a long-lasting investigation into the fraudulent opening of millions of customer accounts. Wells Fargo says it has made “fundamental” changes since the scandal The bank, fourth-largest in the US, will pay the hefty fine to both the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). The…

Read more

Revolut bags $500m from TCV to drive daily account usage

It’s finally happened. Revolut has closed its next round of mammoth funding. Now valued at $5.5 billion right behind its US challenger counterpart Chime ($5.8 billion), the UK-founded bank has landed its $500 million Series D with the help of leading investor Technology Crossover Ventures (TCV), the early backer of Airbnb, Spotify and Netflix. Now the most valuable UK fintech…

Read more

Elavon sells Mexican operations to Santander

Elavon, the merchant acquirer and subsidiary of US Bancorp, is set to offload its Mexican operations to multinational banking group Santander. All Elavon employees in Mexico will transition to Santander All Elavon team members in Mexico, as well as operations and customer relationships, will transition to Santander as part of the deal, which is expected to close “in the next…

Read more

Banks rely on big bang system replacements to cope with real-time demand

When it comes to core systems replacement, the banking industry is still set on big bang installations, driven in part by demands for real-time service. Vikram Gupta, Oracle That’s according to Vikram Gupta, vice president of Flexcube strategy at Oracle Financial Services. Speaking to FinTech Futures on the sidelines of Oracle’s OpenWorld conference in London earlier this month, Gupta says…

Read more

Mastercard plans to triple Irish workforce with 1,500 hires

Mastercard is planning on the expansion of its workforce in Ireland by 1,500, effectively trebling the number of people working for it in Dublin. Mastercard has had a presence in Dublin since 2008 According to a release from IDA Ireland, the state agency responsible for attracting foreign investment in Ireland, the credit card giant is set to lease three office…

Read more

Sogexia nabs Luxembourg licence, starts migrating 180k UK customers

Luxembourg-based neobank Sogexia has been granted a payment institution licence by the Minister of Finances of Luxembourg, gaining a European passport at the same time. The neobank announced the granting of its new licence this week, adding that it would begin migrating 180,000 customers, gained via the partnership with a UK-based banking partner, to its own systems. Sogexia says that…

Read more

SoftBank to invest $100m in UK-based AI start-up Behavox

SoftBank is set to invest $100 million from its second Vision Fund – the first famous for investments in Uber and WeWork – in UK-based artificial intelligence (AI) start-up Behavox. The AI firm helps banks achieve compliance by monitoring its employees’ behaviour. It is designed to spot instances of internal bribery and rogue trading, two issues many major global banks…

Read more

Data firm Akoya spun out as independent company by FMR

Financial data network Akoya has been spun out as an independent company by parent firm FMR less than a year after its launch. Akoya aims to help consumers give secure third party access to their accounts Akoya, which provides a network-based option for sharing financial data between financial institutions and data recipients, will be jointly owned by Fidelity Investments, The…

Read more

State privacy bills try to cut banks a break, but not completely

WASHINGTON — State legislatures around the country have aimed to ease the impact of various data privacy and cybersecurity laws on banks, but some analysts say exemptions for institutions subject to federal law may not go far enough. Unlike other types of companies, banks are already subject to certain data security requirements under the Gramm-Leach-Bliley Act of 1999. As a…

Read more

Delaware bank’s tech overhaul shifts into higher gear

WSFS Financial in Wilmington, Del., has a greater sense of urgency for upgrading its digital platform. The $12.3 billion-asset company was one of the first banks to vow to funnel cost savings from a large acquisition into technology upgrades when it announced an agreement to buy Beneficial Bancorp in August 2018. That deal closed last March. While it was a…

Read more

Three top tips to combat visual hacking

People in fintech and financial services in general are arguably more aware than most of the need to protect sensitive or confidential data and increasingly, this includes reducing the risk of what is frequently referred to as ‘visual hacking’, typically achieved by ‘shoulder surfing’. This is the ability to view and even photograph content on someone’s screen and to then…

Read more

Intuit, Credit Karma chiefs contend merger is good for consumers

Intuit’s Sasan Goodarzi and Credit Karma’s Kenneth Lin offered consumer-friendly motives for the merger of their companies after officially unveiling the $7.1 billion deal late Monday. Intuit, in Mountain View, Calif., provides software for personal financial management (Mint), tax preparation (TurboTax) and accounting (QuickBooks) to consumers and small businesses. Sasan Goodarzi, CEO of Intuit (left), announced his company’s agreement to…

Read more

Bad loan erases fourth-quarter profit at CrossFirst in Kansas

CrossFirst Bancshares in Leawood, Kan., disclosed that a bad loan had turned its solid fourth quarter into a unprofitable one. The $4.1 billion-asset company revised its financial results on Monday after recording an additional $16 million loan-loss provision tied to a $27 million commercial loan. The decision turned quarterly earnings of $11.4 million into a net loss of $700,000. The…

Read more

With new digital bank, RBC joins crowded field

Royal Bank of Canada has the resources and the tech know-how to build a digital-only bank in the U.S., but can it differentiate itself in a market that’s becoming increasingly crowded? The $1.1 trillion-asset company revealed on an earnings call last week that it intends to roll out a direct-to-consumer bank in the U.S later this year. With deposit growth…

Read more

JPMorgan sees a mortgage revival after years of quiet losses

A year ago, JPMorgan Chase had just set a U.S. banking profit record, but the leaders of one of its most quintessential businesses were far from riding high. “Early 2019 was a depressing time for a lot of us,” Robert Segnini, head of retail and consumer direct mortgage underwriting, told employees at an internal town hall this month. “There was…

Read more

FHFA to take closer look at FHLB membership rules

WASHINGTON — The Federal Housing Finance Agency is taking a closer look at its membership guidelines for the Federal Home Loan banks in light of “conduit arrangements” between Home Loan bank members and entities that are not allowed to belong to the system. In a request for information issued Monday, the FHFA said it would be conducting an overview of…

Read more

Listerhill Credit Union (AL) Unveils New Money Market Account

Deal Summary: Money Market, 2.02% APY ($100k), 1.36% APY ($50k), 1.00% APY ($10k), 0.45% APY (up to $10k), rates guaranteed through April 30, 2020. Availability: Residents of 12 northwest Alabama counties and Maury County, Tennessee. At the beginning of the month, Listerhill Credit Union (Listerhill CU) unveiled its new Money Market, which has tiered APYs based on four deposit levels.…

Read more