Welcome to the latest fintech news, where cutting-edge technology and innovative financial solutions converge to reshape the banking, investment and payments landscape. Stay tuned as we explore the trends driving the future of finance!
Artificial Intelligence Law: MEPs adopt landmark law (European Parliament)
The Artificial Intelligence Act, recently approved by the European Parliament, introduces comprehensive regulations aimed at protecting fundamental rights, promoting innovation and ensuring adherence to democratic principles. Key provisions include banning certain AI applications, such as biometric classification and emotion recognition, in workplaces and schools, along with limiting law enforcement’s use of biometric systems except in certain circumstances. High-risk AI systems are subject to strict obligations, including risk assessment, transparency, and human oversight. Additionally, transparency requirements for AI models and measures to support innovation and small and medium-sized enterprises are outlined. Born out of suggestions from citizens, the law aims to establish Europe as a leader in AI, while addressing societal challenges and ensuring human values remain central to AI development. read more
Goldman closes GreenSky sale, Synovus holds the upper hand (American Banker)
Goldman Sachs has completed the sale of home improvement lending platform GreenSky as part of its strategy to scale back its consumer business. The sale to a consortium of investors including Sixth Street and KKR ends Goldman’s ownership after just two years. Synovus Financial anticipates significant revenue growth through its collaboration with GreenSky and expects the partnership to generate $20 million to $30 million in annual revenue. Despite short-term difficulties in the home improvement sector, experts expect spending to increase again by the end of 2024. This sale reflects the dynamic nature of the financial services industry and the importance of strategic partnerships for growth. read more
Visa Strengthens Fraud Prevention Capabilities with Three New AI-Based Solutions (QZ)
Visa has launched three new AI-based risk and fraud prevention solutions to enhance the security of digital payments. Integrated into the Visa protection suite, this product aims to prevent fraud in a variety of payment scenarios, including cardless transactions and instant payments between accounts. Solutions include Visa Deep Authorization (VDA) for CNP payments, Visa Advanced Authorization (VAA) and Visa Risk Manager (VRM) extensions for non-Visa card payments, and real-time protection for account-to-account payments. These innovations leverage deep learning AI models to provide real-time risk scores and improve fraud detection capabilities. Visa is underscoring its commitment to security by disrupting $40 billion worth of fraud by 2023. The new solution will be available to customers from the first half of 2024 and aims to address the growing volume and sophistication of digital fraud. read more
Robinhood launches credit card (FinExtra)
Robinhood has diversified its offerings beyond stock trading by launching the Robinhood Gold Card, a credit card that offers perks like 3% cash back. The move comes eight months after the company acquired credit card startup X1 for about $95 million. The card, available to Robinhood Gold members, has no annual fee, no foreign transaction fees, offers cash back on all categories and offers higher rates on purchases made through the company’s travel portal. Robinhood Gold members, now more than 1 million, pay a monthly or annual fee to access a variety of benefits. The card also allows users to create virtual cards for one-time purchases, add family members, and monitor spending through a dedicated app. Additionally, users who refer 10 friends can receive a Pure Gold Card as a reward. The X1 acquisition creates a team focused on digitally native services that use income instead of credit scores to determine credit limits. read more
Clearcover launches GenAI insurance tool to speed up claims processing (Fintech Global)
Clearcover, a leading auto insurance company, has launched an innovative Generative AI solution aimed at streamlining the claims process and improving customer experience. This innovative product leverages advanced technologies, including Large Language Models (LLM) and ClearAI®, Clearcover’s proprietary machine learning technology, to facilitate conversational experiences immediately following First Notification of Loss (FNOL). This solution digitizes statement collection, expedites claims processing, and integrates seamlessly with Clearcover’s existing digital claims process, Clear Claims™. Clearcover aims to provide real-time customer support through conversational AI integration into its mobile apps, and plans to expand this functionality to its agent portal and website. CEO Kyle Nakatsuji and Chief Product and Innovation Officer Adam Fischer highlight the company’s commitment to leveraging technology to enhance the end-to-end insurance experience. read more
+Simple strengthens Spanish insurance market presence with acquisition of OM Suscripción
(Fintech Global)
+Simple, a European insurance distribution platform, has acquired OM Suscripción de Riesgos, a Spanish underwriting agency specializing in surety insurance. OM holds a significant 15% share of the Spanish surety insurance market, focusing on small and medium-sized enterprises in the construction industry. The acquisition aims to strengthen +Simple’s presence in Spain and expand its product range. read more
Visa and Mastercard are ending their long-running US interchange fee war (payment cards and mobile).
Visa and Mastercard have reached a landmark agreement to reduce interchange fees in the US over the next five years. The move is expected to save merchants about $30 billion and resolve a legal battle that has spanned nearly two decades. The agreement also allows merchants to charge different prices depending on the credit card used and includes limits on interchange rates through 2030. Although merchants are not required to pass on the savings to consumers, the agreement addresses concerns raised by small businesses. Visa North America President Kim Lawrence emphasized that these concessions were made without compromising safety, security or innovation. Rob Beard, Mastercard’s chief legal officer, said the deal provides certainty and value to business owners. read more
U.S. punishes Russian fintech firm for helping others evade sanctions (The Record)
The United States has imposed sanctions on 13 fintech companies and two individuals linked to Russia for allegedly promoting cryptocurrency services to circumvent economic restrictions imposed on Russia following its invasion of Ukraine. The move comes in response to Russia’s ban on 227 U.S. citizens for supporting “Washington’s Russophobic policies.” Those subject to sanctions include companies accused of enabling potential sanctions evasion by providing blockchain-based services or facilitating cryptocurrency payments in the Russian financial sector. The sanctions block all property and interests of designated entities in the United States and prohibit transactions with them. The U.S. Treasury also sanctioned two Russian nationals and two companies for their participation in a disinformation campaign allegedly directed by the Russian presidential administration. read more
British fintech Railsr approaches Equals Group about possible merger (Fintech Futures)
UK-based fintech Embedded Finance (trading as Railsr) has approached Equals Group with a proposal for a potential merger, as first reported by Sky News. Equals Group confirmed it had received a non-binding offer from a consortium led by Embedded Finance Limited and TowerBrook Capital Partners. However, Equals said there was no certainty about the firm offer or its terms. UK takeover rules require Railsr to declare its final intentions by April 17. Railsr’s tumultuous year included a rescue sale to a venture capital consortium and the appointment of new executives. It also secured $24 million in funding and appointed Sir Philip Hammond as chairman following the departure of Rick Haythornthwaite to NatWest Group. read more
Paynetics acquires Neobank Novus to further its ESG mission (Fintech Magazine)
Paynetics, a leading embedded finance provider, has demonstrated its commitment to advancing environmental, social and governance (ESG) objectives in financial services with the acquisition of Novus, the UK’s first ‘impact neobank’. Novus was recognized for seamlessly integrating positive impact initiatives with financial services, allowing users to contribute to causes and track their carbon emissions. Paynetics, under Novus, aims to strengthen the neobank’s services and expand the ESG ecosystem across Europe. This acquisition is consistent with Paynetics’ mission to accelerate its business through innovation and create a future where customers can grow while making a positive impact. This move highlights Paynetics’ commitment to leveraging embedded finance for ESG initiatives in the financial services sector. read more
–
Have news to share? Please add Feed@hollandfintech.com to your press list.
Want to read and learn more about fintech? If so, subscribe and read the full newsletter here. For other weekly highlights, check out our funding, research, analysis and opinion links.