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The Front Page of Global Fintech

The the largest fintech community in the world. Subscribe to our newsletter to stay up to date on the latest in news opinions, and all things financial technology.

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Fintechs are still buying banks (TWIF 6/25)

Fintechs are still buying banks (TWIF 6/25)
An architectural tour of Istanbul

Hello Fintech Friends,

New data were published this week showing that a surprising number of fintech and crypto companies are still out there buying banks:

Please find another week of fintech exits and deep reads below. (👍👎 Have feedback for us? Let us know!)


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☯️ Exits
💻 IPOs & SPACs
  • Investcorp, a Bahranian alternative asset manager, is looking to raise $600 million from an IPO sale of its portfolio including credit, real estate and private equity.

Morgan Stanley fintech bankers on this year's IPO climate: "The data said that they're OK with a company with slightly positive to negative 10% operating margin, but [which] is growing 30% to 40% on revenue. What they don't want is a company that's negative 50% margin growing at 300%. So the company needs to meet the rule of 40."

🤝 M&A - Fintech
  • Consumer stock investing platform Robinhood this week announced that it will acquire X1, the maker of a premium consumer rewards credit card, for $95 million in cash. X1 had previously raised $60 million.
  • Republic, an investing platform for startup equity and alternative investments, bought a 9.5% stake in crypto broker-dealer INX at a $50 million valuation, with an agreement to acquire of 100% of equity at a valuation of $120 million as early as Q3 this year.
  • Fortis, a builder of embedded financial solutions, acquired Canadian payments provider SmartPay in order to go live in Canada and roll out out augmented funding and settlement capabilities for online marketplaces.
  • Mediobanca Group, an Italian banking consortium, signed an agreement for its consumer banking unit Compassb to acquire Swiss buy-now-pay-later fintech loan provider HeidiPay.
  • Banking-as-a-Service provider Bankable acquired embedded finance software Arex Markets in order to add working capital (flexible invoice financing, corporate credit cards, lodged cards and revolving credit) to its APIs.
  • PayPal and asset manager KKR entered into a multi-year partnership in which the investment giant will initially purchase €3 billion in PayPal loans, but may purchase up to €40 billion of buy now, pay later loan receivables from the company across Europe.
  • Baker Hill, builder of a loan origination, risk management, and analytics software, was acquired by Flexpoint, a private equity firm focused on financial services and healthcare.
  • Private equity firm Summit Partners bought a stake in TradingHub, a UK provider of risk-based software solutions for financial markets.
🏦 M&A - Bank and FinServ
  • Indian mortgage lender HDFC sold off its ₹90 billion ($1.11 billion) education loan arm to a private equity consortium.
  • Bankrupt regional bank SVB agreed to sell off its investment banking division SVB Securities to its CEO Jeff Leerink, who created the group when he sold his health care-focused investment bank to SVB in 2018.
  • It was revealed that Abu Dhabi wealth fund ADQ previously held talks to acquire investment bank Lazard.

The Biden Administration and US regulators are re-evaluating their thinking on bank mergers, trying to thread the needle between increased banking sector consolidation (bad) and the collapse of smaller, weaker regional banks (also bad).


📺
Sponsored Content

🛑 Stop your scroll. You won’t want to miss this! There’s never been a comprehensive, industry-wide manual on fraud prevention—until now. The Fraud Fighters Manual is now available for download. In six exciting chapters across 168 pages, authors from top companies like Brex, Mercury, and Lithic share the best practices of fraud prevention, offering practical strategies and real-world examples to empower fellow professionals in the fight against fraud 💪 Download your copy today.

Want to sponsor a newsletter? See our sponsorship information here.


🌎 Fintech Around the World

Nigeria officially floats naira as I&E rate hits N755/$

Nigeria’s CBN lifts cash deposit restriction on domiciliary accounts, allows $10k withdrawals daily

Why Inflation Around the World Just Won’t Go Away

A Market Map of Brazil’s Credit Landscape

Mysterious 1,000% Stock Gains Baffle Traders in Indonesia

📚 Deeper Reads & Features

The Apple Vision Pro’s Impact On Banking

How FedNow and faster payments will impact U.S. fintech

More young bank customers want in-person financial advice

Credit union, fintech leaders discuss the perks and perils of partnering

One-Percenters Keep Shopping at the Dollar Store

How banks are turning uncertainty into an opportunity for digital transformation

HSBC says rebranded Silicon Valley Bank UK will maintain startup focus while targeting global growth

SVB Customers Who Lost Their Deposits Remain on the Hook for Loans

Liquidators of Crypto Fund Three Arrows Seek to Fine Co-Founder $10,000 Per Day

Regulators can relax. Open banking rules won't increase liquidity risk.

Embedded Lending - Democratising Credit At Grassroot Level

Germany unveils a teddy bear as the mascot for Euro 2024 but this time with pants


Have a news item for us? Reach out to news@thisweekinfintech.com