Fintech Highlights - 10/29/2024
Here's what we've been watching this week 👇
Pinned to the Top
The Consumer Financial Protection Bureau has banned Goldman Sachs from launching new credit cards without approval and fined the bank $65 million for failing to properly handle customer disputes and making misleading claims related to its Apple card program.
The CFPB also fined Apple $25 million after finding the company failed to send tens of thousands of transaction disputes to Goldman Sachs, and that the bank did not follow laws for investigating disputes. The watchdog said Goldman Sachs’ board pushed to launch the card despite warnings that the bank’s systems were not ready. That led to long waits for consumers to get refunds for disputed transactions, while some customers had incorrect negative information applied to their credit reports. If Goldman missed its launch deadline, it had to pay Apple $25 million every 90 days until the card went live.
The Apple Card launched in 2019 as part of a suite of Goldman Sachs products aimed at consumers. Goldman is now retreating from its costly expansion into retail banking and attempting to transfer the Apple Card to another bank. A spokesman for Goldman said the bank “worked diligently to address certain technological and operational challenges that we experienced after launch and have already handled them with impacted customers.”
The BFD
Hightower, a registered investment adviser backed by Thomas H. Lee Partners, agreed to acquire a majority interest in NEPC, an investment consultant and outsourced CIO firm.
Why it's the BFD: NEPC advises on around $1.7 trillion in assets, and is one of the private market's most influential gatekeepers.
- It also comes just a week after another high-net-worth RIA, Pathstone, agreed to buy Hall Capital.
The bottom line: "The deal is intended to enhance Hightower's offerings for private wealth investors by giving them greater access to institutional-level investment research and alternative asset strategies." — Leo Almazora, InvestmentNews
M&A
R3, a New York-based blockchain company backed by investors including Bank of America and Intel, is weighing options including a sale, per Bloomberg. It was last valued at $222m, per PitchBook. axios.link/3YDn7VQ More here ->
Allianz, is weighing a potential merger or partial sale of Allianz Global Investors, Europe's biggest insurer with €555b of assets, per Reuters. axios.link/4feZyrG More here ->
Fintech
Uprise, an SF-based financial decision tool for small businesses, raised $3.3m in seed funding. Uprise provides personalized financial guidance, helping entrepreneurs make informed decisions to drive growth and success. Key features include an Embedded Financial Advisor, whose tech is integrated into financial services platforms, serving as a virtual financial advisor for small businesses. This AI-driven expert offers tailored recommendations, taking into account the company’s unique financial situation and goals. More here ->
Finix, an SF-based payments company, raised a $75m in Series C funding. The company enables businesses to accept and send payments online or in-person. With a single, developer-friendly integration, companies can craft a customized payments experience tailored to their unique needs. More here ->
Valon, a New York-based mortgage servicing platform, raised $100m in Series C funding, per Axios Pro. Valon’s mission is to empower every homeowner with ease, security, and financial know-how, aiming to become the financial wellness platform for everyone and remove the stress associated with managing finances. More here ->
Obligo, a New York-based provider of security deposit options, raised $35m. Obligo provides a secure and limited billing authorization system, allowing tenants to only pay for damages their landlord bills them for. More here ->
Synply, a Wilmington, N.C.-based loan syndication platform spun out of Live Oak Bancshares, has raised $4.8m in seed funding. Synply offers a comprehensive and user-friendly platform that empowers banks to efficiently navigate the complexities of loan syndication. More here ->
Ned, a provider of infrastructure to small-business lenders, raised $4.2m in seed funding, per Axios Pro. The platform handles everything from application to servicing, allowing lenders to customize their system and qualify borrowers. More here ->
Agrolend, a Brazilian digital bank for agrobusinesses, raised $53m in Series C funding. As a digital bank, Agroland operates online, offering convenient and efficient access to financial services, such as lending, payment processing, and cash management. More here ->
Investtech
Najar (fka Welii), a Paris provider of enterprise SaaS investment management, raised €15m in Series A funding. Founded in 2021, Najar helps companies optimize their purchasing process and financial operations, enabling them to save time and money. More here ->
Moneybox, a U.K. digital wealth management platform, raised £70m. Moneybox’s investment approach emphasizes long-term investing, with a focus on automation, personalized insights, and digital-first solutions. The platform also considers environmental, social, and governance (ESG) factors in its investment decisions. More here ->
Monark Markets, an enabler of private market trading for financial superapps, raised $2.2m, per Axios Pro. It provides an Alts-as-a-Service (AaaS) infrastructure, allowing other businesses to embed private securities into their customer experiences through an API. More here ->
Crypto
Yellow Card, an Africa-focused crypto platform, raised $33m in Series C funding. More here ->
Azura, an interfacing layer for DeFi, raised $6.9m in seed funding. More here ->
Shuttle Labs, a New York-based maker of a self-custodial digital asset trading exchange known as Genius, raised $6m in seed funding from investors. More here ->
Insuretech
Agentech, a leading AI-powered workforce solution for insurance claims, has raised $3 million in seed funding within 30 days, setting the stage for expansion into Property & Casualty (P&C), Workers' Compensation, and Travel claims workflows. More here ->
Aurora Insurance, a digital commercial insurance platform based in London, has announced securing seed funding from QBE Ventures, the investment arm of QBE Insurance Group. More here ->
Proptech
Inspectify, a property inspection and underwriting platform, has raised $5.26 million in a new funding round led by Munich Re Ventures. More here ->
Mave, a Toronto-based service for real estate professionals, raised C$2m in pre-seed funding. Mave’s AI assistant is designed to help real estate agents and brokerages streamline their workflow, enhance client interactions, and ultimately drive business growth. More here ->
From the Stash
Fiserv teams up with DoorDash for embedded financing - E-commerce giant DoorDash has teamed up with fintech Fiserv for embedded finance services. “This solution enables DoorDash to offer its delivery contractors a full range of financial services,” Frank Bisignano, chief executive at Fiserv, said during the company’s Oct. 22 third quarter earnings call. “Within a single app, they can get instant access to wages More here ->
Fiserv expands digital banking offerings to meet growing demand - Banks are investing in their digital banking offerings and Fiserv has launched a new platform to meet those needs. Fiserv launched experience digital, or XD, in September. It provides features like cash flow central, real-time payments and point-of-sale Clover for bank customers, Chief Executive Frank Bisignano said during the company’s third-quarter earnings call today. More here ->
US banks prepare for new era of consumer financial data sharing - US banks will now have to give customers access to their financial data after the top consumer watchdog finalized a long-awaited rule aimed at fueling more competition for financial products. Under the Consumer Financial Protection Bureau measure, consumers will be able to demand, download and transfer their highly-coveted data to another lender or financial services More here ->
Wells Fargo opens innovation hub in California - Wells Fargo’s Innovation Center in Menlo Park, Calif., is hosting meetings with partners and venture capital firms after opening in May. “We are using this space to uncover new ways to collaborate internally, with customers, and partners, using skills across areas like research, emerging technology, product, strategy and operations to create solutions for our clients More here ->
Fifth Third’s tech spend jumps 5% YoY - Fifth Third Bank’s overall noninterest expenses increased in the third quarter driven by higher technology and communication spend. The $214 billion bank saw a $23 million increase from Q2 in noninterest expenses in the third quarter to $1.24 billion, driven by continued investments in its technology and branches, according to its earnings supplement released today. More here ->
Root Insurance Partners with Arity - Root Insurance has announced the introduction of its latest usage-based insurance (UBI) model, Root UBI v5, in Montana, set to roll out for new policies starting September 19, 2024, and for renewals beginning November 6, 2024. More here ->
Reports & Webinars
How To Take Open-Banking Payments Mainstream
Where will we see the next wave of merchant adoption?
Get the report from 11:FS and GoCardless ->
10 Sustainable Insurtech Startups Taking Insurance to the Next Level - Climate change is reshaping the insurance landscape, demanding innovative solutions to address the growing risks associated with extreme weather events. Read more, 3 min read
LEADERSHIP SPOTLIGHT: Angus McDonald on Creating Cover Genius - Currently celebrating its 10th anniversary, global insurtech Cover Genius has grown from a bold startup into a global leader in embedded technology, disrupting traditional models with its insurance solutions.
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