In today’s FinTech news, Chime’s move toward an initial public offering (IPO) has turned the spotlight on digital banking’s acceleration into the mainstream of financial services, and Latin America is seeing FinTech unicorns being funded. Plus, credit unions (CUs) are going after new customers, armed with data while fast-tracking digital transformation, and virtual cards are triggering shifts in the B2B space by boosting accounts payable (AP) efficiencies.
Possible Chime IPO Spotlights Rise of Digital Banking
As Chime continues the road to an estimated $40 billion IPO, the process has turned the spotlight on the acceleration of digital banking. Chime doesn’t call itself a bank. Its approach is to “partner with regional banks to design member first financial products.”
VC Funding, FinTech Unicorns Break Records in Latam
Last year was on fire for startups in Latin America, with venture capital at a record-breaking $15.3 billion that supported 650 firms, triple the funding in 2020. The FinTech sector produced 16 new unicorns in 2021. FinTech captured 39% of VC funding in the region last year. The biggest FinTech deal in 2021 was the Brazilian neobank Nubank, which raised $1.15 billion and started trading on the New York Stock Exchange in December at a valuation topping $40 billion.
Credit Unions Turn to Data to Compete Head-to-Head With FinTechs
CUs are striving to exceed consumers’ digital expectations by fast-tracking the implementation of digital-first tools while also paying mind to the personalization that draws people to its services. To ensure all CUs have the latest mobile and online banking technology tools they need, PSCU teamed with FinTech enablement company ENACOMM to develop white-label solutions for prepaid online and mobile app banking tools.
Lockstep on Harnessing the Power of Virtual Cards to Improve AP Efficiency
The pandemic made the shortcomings of manual payment processes evident as the world pivoted to all things digital. A major shift that’s continuing to boost AP efficiencies in the (B2B) space is the use of virtual cards. Virtual cards operate like credit or debit cards with randomly generated numbers that don’t exist physically. The global value of virtual cards is estimated to reach 6.8 trillion by 2026, some $4.9 trillion more than in 2021. B2B payments account for most of the payments processed by virtual cards.
Bank of Montreal on Personalizing Functionality With Open Banking
Founded in 1817, the Bank of Montreal (BMO) is Canada’s oldest bank and is also one of the five biggest FIs in the country and the eighth largest in North America. With over 12 million commercial banking clients, it’s embraced open banking while staying the course of maintaining depositors’ trust.