It was a busy news week in fintech with the Fed launching a review of CBDCs, Chime moving closer to an IPO, SoFi moving closer to becoming a bank, Plaid making an acquisition and community banks will soon start offering crypto trading. Here are what I consider to be the top ten fintech news stories of the past week.
Fed Launches Review of Possible Central Bank Digital Currency from The Wall Street Journal – The Federal Reserve released a discussion paper this week on the benefits and risks of issuing a U.S. digital currency, requesting comments from the public over the next 120 days. This is a first step in what will likely be a long journey towards a CBDC.
Small banks set to go live with bitcoin trading from American Banker – It is interesting, but not surprising, that small banks are leading the way when it comes to offering crypto trading directly to their customers. And NYDIG is providing the technology to do that.
Bank-Fintech Partnerships Are Under-Performing: What’s Going Wrong? from Forbes – Totally agree with Ron Shevlin that banks need to do a better job with fintech partnerships. But I also have to wonder if we are a little early to judge? Seems like so much happened in ’20 & ’21 that will start paying dividends in ’23 & ’24. Still, this is a good read with interesting research.
Crypto.com confirms hackers stole more than $34 million from LendIt Fintech News – This was such a curious story this week. We heard last weekend that Crypto.com (of Matt Damon fame) was hacked although initially, the company said no money was lost. We have since discovered that 4,836 ETH and 444 BTC were stolen with a value of around $34 million at the time.
What JPMorgan is doing with that $12 billion tech spend from Tearsheet – JPMorgan reported earnings last week and revealed they will spend $12 billion dollars on technology this year. Half of this is to maintain existing systems and half is to drive innovation across the bank.
Truist joins industry’s pivot away from overdraft fees from American Banker – Another top 10 bank has announced plans to move away from overdraft fees. Truist is revamping its checking account offering with plans to eliminate overdraft and other fees, which will result in $300 million in decreased revenue from fees.
Every Thursday the LendIt Fintech News team and a special guest discuss the news of the week live on LendIt TV, YouTube, LinkedIn, and Twitter. We have now made the show available in podcast format – just click on the audio player below.
Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.