Goldman Sachs leads off the news this week with some bad news and some good news. Step raised a huge debt round (eschewing equity), BNY Mellon is getting into crypto, which makes Custodia Bank very unhappy. And of course, there were plenty of crypto stories to round out the news. Here are what I consider to be the top ten fintech news stories of the past week.
Under Pressure, Goldman CEO Ditches Dream of Consumer Domination from Bloomberg – This bombshell came out last weekend with the Goldman Sachs CEO, David Solomon, basically throwing in the towel on their consumer bank, Marcus, after more than six years and billions of dollars spent. They are not shutting it down per se, but rather just scaling back their ambitions here.
Charli D’Amelio-endorsed fintech Step borrows $300M to bring crypto to teens from TechCrunch – Teen-focused fintech Step has raised $300 million, not in equity but in debt, in a sign of the changing environment for fintech valuations. They have also enabled crypto investing, with the parent’s permission, and will be bringing more financial literacy tools for both teens and parents.
America’s Oldest Bank, BNY Mellon, Will Hold That Crypto Now from The Wall Street Journal – BNY Mellon becomes the first large bank to provide crypto custody services. After receiving the requisite approvals from the Fed and the New York Department of Financial Services the bank will be receiving select customers’ bitcoin starting this week.
‘Buy Now, Pay Later’ Is Still a Credit-Score Blind Spot from The Wall Street Journal – While there has been some movement on the credit reporting front when it comes to BNPL, we still don’t have a formal system that adjusts for the unusual nature of its credit lines. The data is all out there but it is not helping consumers yet.
OCC wants more data on banks’ crypto-related activities from BankingDive – In a speech this week, the acting head of the OCC, Michael Hsu, said that he needs more information regarding the crypto activities of banks, specifically “a structured and recurring gathering of quantitative data focused on the nexus between banks and crypto”.
Crypto Broker NYDIG Lays Off One-Third of Staff to Narrow Focus from The Wall Street Journal – NYDIG, one of the leaders in bringing crypto to banks, laid off one-third of its staff, or 110 people last month. This follows the announcement from early this month that both the company’s CEO and President had stepped down.
Every Thursday afternoon, the Fintech Nexus News team and a special guest discuss the news of the week live on YouTube, LinkedIn, and Twitter. We have now made the show available in podcast format – click on the audio player below.
Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media 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.