Fintech Update, 6/12 - 6/18
Hi! It’s Monday, June 19th, 2023.
The Rundown
Following in the steps of the European Union, the Consumer Financial Protection Bureau’s (CFPB) Director released a statement laying the foundation for its anticipated open banking proposed rule this fall, expounding upon the agency’s vision for its impact. Open banking is designed to level the playing field, making it easier for consumers to switch between financial services providers, including deposits, payments, and loans. In theory, this rulemaking should make it easier for consumers to move their money to the company offering the best rate or product, and should put fintechs in an equal position to compete with large, traditional banks. Given the CFPB’s recent warning to consumers to move their deposits away from uninsured fintech companies, it remains to be seen if the rule will be as inclusive to fintechs as prognosticators have speculated.
A16z is opening its first international office in London, citing a “thoughtful approach” to crypto regulation in the UK. The office, led by general partner Sriram Krishnan, will focus on crypto, blockchain, and web3 startups. A16z said the decision followed “extensive” talks with Prime Minister Rishi Sunak, the Treasury, policymakers, and regulators. Sunak was, somewhat surprisingly, effusive about the news.
Revolut investor Molten Ventures slashed the valuation of its stake in the British neobank by 40%, amid reports that it will not be granted a UK banking license. The decision follows a similar move by asset manager Schroeders in April.
Nasdaq agreed to acquire risk management and regulatory software provider Adenza for $10.5 billion - $5.75 billion in cash and the rest in shares of Nasdaq common stock, valuing Adenza at about “31x the company’s EBITDA.”
BaaS provider Synapse laid off 18% of their workforce, citing difficult macroeconomic conditions.
The Reading Nook
Forbes wrote about how Fintech Leaders Unite To Advance Gender Parity, Reverse Climate Change
American Banker: Credit union, fintech leaders discuss the perks and perils of partnering
Selected fundings
Indian SME lender Indifi raised $35 million in new funding.
Paro, which provides on-demand bookkeeping and financial services via a network of freelance talent, raised $25 million in Series C funding.
Income verification platform Truework raised $24 million in new funding from TransUnion.
Mobile bank for migrants Majority raised $9.75 million in a Series B extension funding round.
A Message from Our Friends at Better Tomorrow Ventures
Attention fintech founders! Better Tomorrow Ventures launched a fintech-focused accelerator program, The Mint. Spend 3 months in San Francisco getting access to their entire team of founders and operators, their extensive network, and hands-on help to build your dream company.
Applications for their 2023 cohort are closing on June 30. Apply here.
Why join The Mint? Because fintech founders have unique needs, and BTV understands them firsthand.
Their sweet spot is helping accelerate learning curves, de-risk, and get to market much faster than you might otherwise. They’ll also match you with a carefully selected mentor, bring in industry experts for office hours and firesides, and provide you with everything you need to resolve all of those unknown-unknowns.
Then you’ll cap the experience with a Demo Day at BTV’s annual LP meeting, where you’ll get to showcase your company to VCs, angels, and their favorite fintech investors.